Verdict Delivered! Supplier Shockingly Brought Competitors into Listed Company's Production Facility to Secretly Film and Steal Raw Materials!

On March 14, 2026, the Shanghai Stock Exchange STAR Market-listed company Haizheng Biological Materials (688203.SH) announced that its case of trade secret infringement has received a first-instance verdict. The announcement states that Haizheng Biological Materials and its wholly owned subsidiary, Hainuoer Biological Materials Co., Ltd., were awarded 5 million yuan in compensation, and the infringing party and related responsible persons were also held criminally liable.

According to Haizheng Biological Materials’ previous announcement, there are six defendants in the case: Prolis Biotech Co., Ltd. (hereinafter “Prolis”) and its employee Zheng Moumou; Anhui Jinpuri New Materials Co., Ltd. (hereinafter “Jinpuri”) and its employee Ke Moumou; Zhangjiagang Walter Precision Machinery Co., Ltd. (hereinafter “Walter”) and its employee Qian Moumou.

With Qian Moumou’s leadership and assistance, Zheng Moumou and Ke Moumou, dressed in Walter’s work uniforms, illegally entered Hainuoer’s resin production workshop through unauthorized means. Inside the workshop, Zheng Moumou and Ke Moumou observed, filmed, and examined some of Hainuoer’s production equipment, process flows, and parameters, and stole additives from Haizheng and Hainuoer.

Public information shows that Haizheng Biological Materials mainly focuses on the research, production, and sales of polylactic acid (PLA); Prolis is also a polylactic acid industry company, and Jinpuri is a subsidiary of Prolis. Not only are Haizheng and Prolis industry peers, but both are also supported by the Changchun Institute of Applied Chemistry, Chinese Academy of Sciences.

Haizheng Biological Materials was established in 2004, jointly funded by Haizheng Group, Changchun Institute of Applied Chemistry (a wholly owned subsidiary of CAS), Taizhou Guotou, Jiaojiang Jitou, Suzhou Weiqi, Bian Xinchao, Chen Zhiming, and Chen Xuesi.

According to Prolis’ official website, the company is based on the “New Generation Polylactic Acid Industrialization Technology” developed by the Changchun Institute of Applied Chemistry, CAS, and focuses on the entire industrial chain of “biomass - lactic acid - propylene glycol lactate - polylactic acid” for research, production, and sales.

Walter is a global provider of material handling automation equipment, smart factories, and advanced materials solutions, founded in 2014. Its legal representative, shareholder, and executive director is Cai Xiaofeng. Previously, Cai Xiaofeng stated in an interview that Walter is a supplier for Haizheng Biological Materials.

Haizheng’s lawsuit requests that the defendants immediately cease all acts of infringing on the company’s trade secrets and jointly compensate the plaintiff for economic losses of 30 million yuan.

The first-instance judgment issued by the People’s Court of Jiaojiang District, Taizhou City, Zhejiang Province, shows that defendant Zheng Moumou was convicted of infringing on trade secrets and sentenced to three years and six months in prison with a fine of 300,000 yuan; defendant Qian Moumou was similarly convicted and sentenced to one year and six months in prison with a fine of 150,000 yuan.

In civil compensation, Prolis is ordered to pay 4.85 million yuan, and Qian Moumou is ordered to pay 150,000 yuan, totaling 5 million yuan. Additionally, Zheng Moumou, Qian Moumou, and Prolis are ordered to immediately cease infringing on the company’s trade secrets, with this obligation lasting until the relevant trade secrets become publicly known. The court rejected other claims from Haizheng Biological Materials.

Haizheng Biological Materials stated that this verdict is a first-instance result. Both the plaintiff and the defendant can appeal to the Intermediate People’s Court of Taizhou City, Zhejiang Province, within ten days of receiving the judgment. It remains uncertain whether this ruling will be final.