For 3 Years, Huntsman Complained About The Infringement Of His Patent Of Reactive Dye, And Finally Settled.

For three years, Huntsman complained about the infringement of his patent of reactive dye, and finally settled.

Jiangsu golden pheasant industrial Limited by Share Ltd (hereinafter referred to as "pheasant stock") announced in May 17th that the company and its wholly owned subsidiary, Taixing Jinyun dyestuff Co., Ltd. (hereinafter referred to as "Jinyun company") were 15 in May. On the day of receipt of the "civil ruling" served by the Supreme People's Court (hereinafter referred to as the "high court"), the "high court" was examined and deemed that the application of the Huntsman Corp's retrial did not comply with the relevant legal provisions. In accordance with the relevant laws and regulations, in March 27th, a civil ruling was made to reclaim the retrial application of Huntsman advanced materials (Switzerland) Limited.

The two ruling results are to reclaim the application of Huntsman advanced materials (Switzerland) Limited (plaintiff of first instance, appellant of second instance and retrial applicant).

The first textile net reporter learned from the announcement that Huntsman Corp filed a patent infringement lawsuit against the intellectual property court of Beijing. It was considered that some active black dye of Jinyun company and its subsidiary company violated Huntsman's "azo dyes and their preparation methods and uses" (patent number: ZL00106403.7) and "reactive dyes mixture and their uses" (Patent No.: ZL200480003051.4). And asked Jinyun company and its subsidiary company Jinyun company to compensate for the total profit of the 200 million yuan since 2010.

In September 12, 2018, the intellectual property court of Beijing held a trial in this case. In October 29, 2018, the intellectual property court of Beijing made a first instance judgment. The evidence submitted by Huntsman was not enough to prove that the company and Jinyun company had infringed their patents on the production and sale of the involved products and reclaimed all the claims of hensman; in April 2, 2019, the Beijing Higher People's court decided in second instance. Refute Huntsman's appeal and maintain the original judgment. The judgment is final.

Statistics show that Huntsman, a global manufacturer and marketer of special chemicals, was founded by Mr. Huntsman in 1970 and today has become the largest private chemical company in the United States. Huntsman was first known for his pioneering and innovative packaging, and then achieved rapid and comprehensive development in petrochemical products. The Huntsman group currently has more than 12000 employees and its operating agencies all over the world. Huntsman has more than 12 R & D plants and advanced technology centers in Belgium, India, Mumbai, Texas, woodland and Shanghai, China, and has about 5000 authorized and approved patents. Huntsman entered the field of polyurethane in China in 1983.

The first textile net reporter learned from the announcement that Jinyun company is a wholly-owned subsidiary of Jinji stock. The main business is producing reactive dyes, which is the production base of reactive dyes. In 2019, Jinyun company achieved operating income of 1 billion 123 million yuan, down 6.47% from the same period last year, and realized operating profit of 111 million yuan, up 12.63% over the same period last year, achieving net profit of 95 million 752 thousand and 600 yuan, up 13.03% over the same period last year.

Taixing Jinhui Chemical Co., Ltd. as a controlling shareholder of pheasant, has a holding ratio of 94%. Its main business is the dye intermediate produced by Jinyun dyestuff. The product is mainly sold to Jinyun dyestuff as the main raw material for reactive dyes. In 2019, Jinhui Chemical Company achieved operating income of 150 million 865 thousand and 700 yuan, down 17.95% from the same period last year, and net profit of 694 thousand and 400 yuan, down 97.01% from the same period last year. The decline in operating performance is mainly due to the sharp decline in the market price of para ester and the increase in depreciation caused by partial construction projects converted into fixed assets.

Public information shows that Jinji stock was founded in January 20, 1999, the company is located in Taixing Economic Development Zone Xingang Road No. 10, the company's main business is dyestuff R & D, production and sales, the company's dyestuff industry has been developing horizontally and vertically. On the basis of the existing capacity of 45 thousand tons of reactive dyes, the company is building 30 thousand tons of environmentally-friendly high-grade disperse dyestuff projects and an annual output of 30 thousand tons of high-end commodity active dye investment projects. After the completion of the above projects, a more complete industrial layout will be formed.

According to the application technology, the reactive dye products of pheasant can be divided into two categories: reactive dyestuffs for dyeing and reactive dyes for printing. The reactive dyes used by the company include dyed cotton / cotton colored RCD series, Jinbu non stick EN series, new anti staining W series, low alkali LA series, room temperature dyeing LC series, and new Low temperature JJS series, low salt dyeing LS series, nylon special JJN series, cold pad batch G series, deep concentrated NDS series, special dark color SNE series, deep C series, sensitive color CE series, high levelling WNN series, deep consistency levelling S series, economic color series, traditional BES series, traditional series, high temperature series, conventional series, Mao Yi series, Potassium Permanganate decolorization series, and exemption. There are 23 kinds of soap washing FCW series. The reactive dyes used for printing include high-speed inkjet printing PJ series, white printing JJB series, anti dye printing JJF series, deep concentrated printing P series, economic printing BPS series, conventional printing K series, 6 kinds of products.

By the end of 2019, there were more than 20 series of more than 400 varieties of reactive dyes in Jinji stock. It is a more comprehensive enterprise in the range of reactive dye products and varieties. It can meet the diverse needs of customers. The company's main products have also obtained INTERTEK green leaf certification, organic cotton (GOTS) certification, and International Textile Ecology Research and Inspection Association OEKO-TEXStandard100 certification.

According to the financial report, in 2019, the operating income of Jinji shares was 1 billion 124 million 55 thousand and 500 yuan, down 6.51% from the same period last year. The net profit attributable to shareholders of the company was 96 million 340 thousand and 900 yuan, down 7.65% from the same period last year. The main reason for the decline of the company's performance during the reporting period is that the market price of reactive dyestuffs has been declining due to the uncertain export prospects of downstream industries, resulting in a decrease in operating income over the same period last year, thereby affecting the company's net profit. The management expenses during the reporting period increased by 2 million 563 thousand and 400 over the same period last year. The related expenses and related depreciation and business entertainment expenses increased by intermediaries, thereby affecting the company's net profit.

During the reporting period, the R & D work of Jinji shares mainly revolves around the development of new products, the upgrading of existing products, and the improvement of production processes. In 2019, the R & D investment of the company was 43 million 438 thousand and 300 yuan, accounting for 3.86% of the company's revenue, and the R & D investment remained stable. During the reporting period, Jinyun dyestuff successfully developed the new products of the active super magenta G, reactive turquoise PJ-GR, active red PJ-8B and other new products. Products are still being developed with active scarlet W-RH wastewater free process and active red brown technology. New technology and new ideas are applied to improve and optimize the technology of active red FCW, active orange FCW, active red BEF, active yellow M-3RE and other old products.

During the reporting period, 2 new patents were applied to the Jinji stock company, 4 authorized invention patents, and 1 patent applications were granted.

In 2020, the company will continue to plough the reactive dyestuff market and develop high-grade, multi-functional reactive dyes with high fixation rate, high color fastness, Gao Yunran property, high dyestuff, high lift and low salt dyeing. The products include one bath CN, S, LS and synergistic type.

At present, the relevant equipment for producing disperse dyes in JC is being installed. From the perspective of the whole industry, the products in the textile dyestuff industry are mainly made up of disperse dyes and reactive dyestuffs, and the market demand of disperse dyes is greater than that of reactive dyes every year. Therefore, the company will invest more in the disperse dye business in the future and improve the sales scale of the company's dyestuffs.

At the same time, JC will also focus on developing reactive dyes related intermediates such as HA and other dyes, and continue to extend to the upstream of the dyestuff industry to improve the quality and supply stability of dye raw materials, reduce costs and increase profits.

The latest financial report shows that in the first quarter of 2020, the company realized 201 million yuan of operating income, down 37.52% from the same period last year, and realized operating profit of 8 million 689 thousand and 400 yuan, down 70.12% compared with the same period last year. The net profit attributable to shareholders of the listed company was 7 million 612 thousand and 400 yuan, down 68.99% compared to the same period last year.

During the reporting period, the operating income and net profit of pheasant stock declined sharply due to the new crown epidemic situation. During the reporting period, the company's production volume was 8424 tons, down 31.04% compared to the same period last year; sales volume of 9255 tons, down 32.82% compared with the same period last year; sales price decreased by 8.68% compared with the same period last year, while the purchasing price of upstream raw materials increased by 2.14% compared with the same period last year, leading to a reduction in gross margin of products by 4.66% compared with the same period last year, which directly reduced the company's profitability.

Pheasant shares said that from the current trend of epidemic spread, it is still unknown when the global epidemic will peak. With the possible spread and outbreak of South America, Africa, South Asia and other undeveloped regions and countries, global economic development will stagnate or even retrogress. At present, the turning point of epidemic control and economic recovery has not yet been seen. Even if some European and American countries resume work and resume production in May, they still need a certain amount of time to repair, so the product demand of the company and downstream printing and dyeing enterprises and garment enterprises will still be greatly affected in the two quarter.

Therefore, in the first half of 2020, the net profit attributable to shareholders of the parent company is expected to decline by 80%-50% compared with 57 million 743 thousand yuan in the same period last year, and the profit interval is between 11 million 548 thousand and 600 yuan and 28 million 871 thousand and 500 yuan.