LB Group Co., Ltd.: history, ownership, mission, how it works & makes money

From its founding in 1955 to a 2021 rename and global expansion, LB Group Co., Ltd. has grown into a titanium dioxide leader with over 19,385 employees (a 5.61% yearly increase) and a market capitalization near 42.68 billion CNY as of November 18, 2025; the Shenzhen-listed (002601.SZ) manufacturer reported 27.51 billion CNY in revenue for 2024 (up 2.80%) while running an integrated sulfate and chloride TiO₂ value chain and a production capacity of about 1.51 million tons per year, backed by insiders holding 45.50% of shares, institutional stakes of 17.42%, aggressive R&D (10% of annual revenue), 15 granted patents plus five pending, five new products in 2023 that expanded its portfolio by 20%, cumulative dividends of over 19.3 billion CNY since listing (including a June 2025 cash payout of 1.186 billion CNY), and planned investments such as a 1.08 billion CNY scandium and vanadium industrial park alongside projected net profits of 2.84/3.35/3.75 billion CNY for 2025-2027 (EPS 1.19/1.48/1.81) that underscore its strategic push to defend market share, diversify revenue from titanium, zirconium and lithium products, and expand overseas capacity amid trade headwinds.

LB Group Co., Ltd. (002601.SZ): Intro

LB Group Co., Ltd. (002601.SZ) is a major Chinese producer of titanium dioxide (TiO₂) pigments and related chemicals, serving coatings, paints, plastics, papermaking and inks markets globally.

• Founded: 1955 (headquartered in Jiaozuo, China)
• Name change: July 2021 - from Lomon Billions Group Co., Ltd. to LB Group Co., Ltd.
• Experience: over 35 years in TiO₂ pigment manufacturing
• Brands: XUELIAN and BILLIONS (titanium, zirconium, lithium product lines)
• Employees (Dec 31, 2024): 19,385 - a 5.61% increase vs. prior year

History

• 1955: Company founded; gradually developed TiO₂ capability.
• 1990s-2010s: Expansion of production capacity and downstream product lines (TiO₂ pigments, zirconium and lithium series).
• July 2021: Corporate name updated to LB Group Co., Ltd., aligning brand identity with global strategy.
• 2020s: Continued capacity additions, brand development (XUELIAN, BILLIONS) and workforce growth-employees reached 19,385 by end-2024.

Ownership & Corporate Structure

• Listed entity: Shenzhen Stock Exchange (002601.SZ).
• Ownership: mix of institutional investors, retail shareholders and founding/major shareholders (public disclosures on major shareholders in annual reports and exchange filings).
• Group structure: parent company with production subsidiaries focused on pigment and specialty chemical production, trading and distribution units domestically and internationally.

How It Works - Operations & Value Chain

• Feedstock procurement: sourcing ilmenite, titanium slag and other raw materials.
• Production: sulfate and chloride processes to produce TiO₂ pigments (rutile/anatase), with downstream chemical processing for zirconium and lithium products.
• Quality & product range: multiple grades of TiO₂ for coatings, plastics, paper and inks; specialty chemical formulations under XUELIAN and BILLIONS brands.
• Sales & distribution: domestic sales channels and export networks; technical service and application support for industrial customers.

How LB Group Makes Money

• Product sales: primary revenue from TiO₂ pigment sales (coatings, plastics, paper, inks).
• Specialty chemicals: sales of zirconium and lithium products, high value-added derivatives and formulations.
• Value-added services: technical support, custom formulations, downstream processed products commanding premium margins.
• Scale & integration: economies of scale from large production capacity and integrated feedstock-to-pigment operations reduce unit costs and improve margin resilience.

For LB Group's stated guiding principles and forward strategy, see: Mission Statement, Vision, & Core Values (2026) of LB Group Co., Ltd.

LB Group Co., Ltd. (002601.SZ): History

• Founded and led by He Benliu, the founder remains the largest single shareholder and legal representative.
• Public listing on the Shenzhen Stock Exchange under ticker 002601 enabled institutional capital inflows supporting expansion.
• Insiders retain significant control, allowing continuity of strategic direction and founder-led governance.

• Ownership structure highlights: insiders control a near-majority stake (45.50%), with institutions holding 17.42%, indicating concentrated founder influence paired with meaningful external investor participation.
• Sharebase dynamics: modest share count increase (1.34% YoY) suggests limited dilution while supporting capital needs.

• Core revenue streams: manufacturing sales (industrial equipment/components), real estate development and leasing, and after-sales/service platforms.
• Profit model: product margins on engineered goods, recurring revenue from long-term service contracts and property leasing, and project-based gains from development activities.
• Capital deployment: proceeds from equity and debt fund investments in production capacity, R&D, and M&A to scale higher-margin lines.

• Mission: to deliver engineered solutions and integrated services that improve client productivity and asset efficiency.
• Strategic focus: deepen vertical integration, expand service-platform revenues, and internationalize sales channels while preserving founder-led governance.

LB Group Co., Ltd. (002601.SZ): Ownership Structure

LB Group Co., Ltd. (002601.SZ) produces high-performance titanium dioxide pigments for paints, plastics, inks and paper, with a mission centered on quality, innovation and social responsibility. The company explicitly allocates 10% of annual revenue to research and development, launched five new products in 2023 (a 20% expansion of its product portfolio), and holds 15 granted patents with five more pending. Corporate social responsibility and environmental stewardship are core values integrated into operations.

• Mission: Deliver industry-leading TiO2 pigment quality while minimizing environmental impact and advancing sustainable applications.
• Innovation commitment: R&D spend equals 10% of revenue; five new products added in 2023 (+20% portfolio growth).
• Intellectual property: 15 granted patents, 5 pending.
• Corporate responsibility: Programs targeting emissions reduction, community engagement, and sustainable supply chains.

How it makes money: LB Group generates revenue primarily from sales of titanium dioxide pigments and related specialty products across industrial coatings, plastics, inks and paper markets. Key financial drivers include product mix (premium vs. commodity grades), sales volume growth from new product introductions, R&D-driven margin improvements, and operational efficiencies in manufacturing.

• Revenue drivers: Premium TiO2 grades, expanded product portfolio (+20% in 2023), and geographic diversification.
• Margin drivers: Innovation-enabled higher-value products, IP protection (15 patents), and scale economies.
• Investment focus: 10% of revenue into R&D to sustain product pipeline and cost improvements.

For a fuller company history and detailed profile see: LB Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

LB Group Co., Ltd. (002601.SZ): Mission and Values

• Core manufacturing technologies: sulfate process and chloride process for TiO₂ pigment production.
• Flagship pigment brand: BILLIONS™-marketed globally across Europe, Asia, the Americas and other regions.
• Key end-markets: architectural and industrial coatings (paints), plastic compounding, printing inks, paper coatings, cosmetics and specialty applications.
• Operational footprint: primary production hub in Jiaozuo, China, with additional international facilities and sales/distribution networks.
• Workforce: over 19,000 employees supporting manufacturing, R&D, sales and logistics.

• Feedstock sourcing and preparation: LB Group secures ilmenite/rutile feedstocks, processes intermediates (sulfates, chlorides) and optimizes acid/reagent recycling to lower cost and environmental impact.
• Dual-process manufacturing: parallel sulfate-route and chloride-route TiO₂ plants allow production flexibility for multiple pigment grades (rutile and anatase types) to meet customer specifications.
• Pigment finishing and surface treatment: milling, coating and surface-modification steps tailor brightness, dispersibility and weathering performance for target applications.
• Quality control and R&D: centralized laboratories and application development teams provide colorimetric, dispersion and durability testing, supporting customers' formulation needs.
• Distribution and technical service: global sales offices and local technical teams supply logistics, batch-to-batch consistency and on-site technical assistance.

• Product sales: primary revenue from shipments of TiO₂ pigment grades (BILLIONS™) to coatings, plastics, inks, paper and specialty customers.
• Grade premiuming: higher-margin specialty and surface-treated pigments commanded for demanding applications (weather-resistant coatings, high-opacity plastics, fine inks).
• Integrated cost advantages: in‑house feedstock processing, reagent recycling and energy optimization reduce per-ton production costs versus outsourced supply models.
• Value‑added services: technical support, color-matching, supply-chain reliability and long-term contracts that improve customer retention and pricing stability.
• Global marketing/distribution: export sales and overseas partnerships expand addressable markets and balance regional demand cycles.

• BILLIONS™ TiO₂ functions as a core pigmentation and opacity additive; small formulation loadings (typically 5-30% by weight depending on application) deliver critical optical and mechanical properties.
• Dual-process capability enables LB Group to supply both chloride-route rutile grades (high-performance coatings/plastics) and sulfate-route grades (economical applications), broadening market reach.
• Vertical integration across feedstock, intermediate chemistry and pigment finishing reduces margin squeeze from raw material volatility and supports competitive pricing.

LB Group Co., Ltd. (002601.SZ): How It Works

• Primary revenue driver: sale of titanium dioxide pigments (majority of product mix).
• Additional product lines: titanium metal/powders, zirconium compounds, lithium-related products and other specialty inorganic chemicals.
• End markets: coatings & paints, plastics, papermaking, inks, adhesives, rubber and specialty industrial applications.
• Sales channels: direct sales to large industrial customers, distributors, export channels, and e-commerce for smaller lots.
• Value chain control: upstream raw-material procurement, proprietary process engineering, quality control, and logistics to optimize margins.

• Product sales: direct commercial sales of TiO2 pigment grades (rutile/anatase, chloride/sulfate processes) at scale-these command the bulk of revenues.
• Specialty chemicals & metals: sales of titanium, zirconium and lithium compounds provide diversification and higher-margin niches.
• Customer & application diversification: serving multiple industries smooths cyclical demand and supports pricing power in specialty grades.
• Economies of scale: large-capacity plants lower per-unit production costs, increasing gross margin on commodity pigment sales.
• Dividend policy: strong cash returns to shareholders reflecting robust free cash flow and mature capital allocation-large historical payouts support investor yield.

• Feedstock integration and long-term contracts reduce input volatility for TiO2 production.
• Process optimization (energy efficiency, yield improvements) lowers unit costs for high-volume pigment lines.
• Product mix shift toward specialty grades and downstream chemical sales enhances ASPs (average selling prices) and margins.
• Geographic diversification and export sales mitigate single-market demand shocks.

• Coatings & paints manufacturers - largest single application for TiO2 pigments.
• Plastics processors - pigment masterbatches and UV-stabilized compounds.
• Paper mills - opacity and brightness enhancers.
• Printing inks and adhesives - specialty pigment and extender requirements.
• Industrial ceramics, catalysts and battery material intermediates - via zirconium and lithium product lines.

LB Group Co., Ltd. (002601.SZ): How It Makes Money

• Core product sales: TiO2 pigments (industrial & coated grades) and sponge titanium for aerospace, chemical and metallurgical users.
• Upstream raw materials and by‑products: rutile/ilmenite processing, chlorine/acid intermediates and slag recovery.
• New materials and specialty metals: scandium and vanadium products from the announced industrial park (capital injection CNY 1.08 billion, Oct 2025).
• Overseas production and tolling arrangements to mitigate anti‑dumping exposure and secure export channels.

• Market position: Leading footprint in TiO2 and sponge titanium with scale advantages supporting pricing and cost control.
• Risk mitigation: Overseas capacity expansion to reduce dependence on export channels subject to anti‑dumping duties.
• Profitability outlook: Gradual recovery expected-net profit projected to rise from CNY 2.84B (2025) to CNY 3.75B (2027).