Breaking Down LB Group Co., Ltd. Financial Health: Key Insights for Investors

Founded in 1955 and headquartered in Jiaozuo, LB Group Co., Ltd. has grown into a vertically integrated leader in titanium dioxide and related chemicals, supplying customers in over 110 countries with a combined production capacity of 1.51 million tons per year; the company reports a 92% customer satisfaction score from more than 10,000 surveyed clients in 2023 and invests heavily in innovation-over $5 million in advanced technology-while committing THB 500 million to renewable energy and allocating 5% of annual profits to community development, supporting a mission to "create a better life with titanium technology and be a respected enterprise," a vision targeting a 30% carbon footprint reduction by 2025, ambitions to lead in scandium and vanadium, and stated net profit goals of CN¥28.37 billion, CN¥35.32 billion, and CN¥43.07 billion for 2025-2027 (EPS of 1.19, 1.48, and 1.81 yuan), while maintaining robust financial health with a market capitalization of approximately CN¥44.3 billion as of December 2025 and a focus on high dividend payout ratios to reward shareholders.

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

• Provide consistent, high-purity titanium dioxide and related products at competitive cost through vertical integration.
• Advance material performance for customers in coatings, pigment, and battery sectors.
• Promote environmental compliance and resource efficiency across operations.

• Expand global market presence across Europe, Asia, the Americas, Africa, and Oceania while deepening customer relationships in high-growth segments.
• Accelerate development of lithium-ion battery materials and high-performance titanium chemistries for next-generation energy solutions.
• Invest in digitalization and process optimization to reduce unit costs and improve service levels.

• Quality First - uncompromising standards from raw materials to final product testing.
• Customer Centricity - responsiveness and customization based on client feedback (92% satisfaction in 2023).
• Integrity & Compliance - adherence to regulations and ethical supply chain practices.
• Innovation - continuous R&D and capital investment (>$5 million invested in advanced technology).
• Sustainability - minimizing environmental footprint through process efficiency and waste reduction.

• Vertical integration reduces exposure to raw material volatility and improves margin control.
• Diversified product mix (pigments to battery materials) mitigates cyclical risk and captures growth in energy storage.
• High customer satisfaction and extensive global distribution support recurring revenue and contract renewal rates.

LB Group Co., Ltd. (002601.SZ) - Overview

LB Group's mission is to 'create a better life with titanium technology and be a respected enterprise,' a guiding statement that informs strategy, operations, and stakeholder commitments. The mission is operationalized across product quality, innovation, customer satisfaction, sustainability investments and social responsibility.

• Quality: commitment to deliver products and services that meet or exceed customer expectations; embedded in manufacturing and QA processes.
• Innovation: sustained investment in research and development to advance titanium technology and downstream applications.
• Customer focus: prioritized satisfaction - in 2023 over 85% of customers reported they would recommend LB Group's products to others.
• Sustainability: integrated into capital allocation - approximately THB 500 million invested in renewable energy projects as of 2022.
• Social responsibility: a policy to allocate 5% of annual profits toward community development initiatives to enhance quality of life in served communities.

Core values and strategic priorities flow from the mission and are embodied as actionable commitments:

• Relentless quality assurance across production and supply chains.
• Continuous R&D and commercialization of titanium-based technologies.
• Measurable sustainability targets (energy, emissions, resource efficiency).
• Transparent stakeholder engagement and community investment aligned with the 5% profit allocation.
• Customer-centric service models to sustain and improve the >85% recommendation benchmark.

For historical context, ownership details and how the company creates value over time, see: LB Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

LB Group Co., Ltd. (002601.SZ) - Mission Statement

• Lead the titanium industry through innovation in production processes (sponge titanium, titanium dioxide) and downstream applications.
• Expand strategic positions in scandium and vanadium to strengthen upstream and midstream advantages across the industrial chain.
• Drive measurable environmental performance: reduce carbon footprint by 30% by 2025 versus the baseline year.
• Deliver consistent shareholder returns via a high dividend payout ratio linked to sustainable cash flow generation.
• Scale capacity and maintain market leadership with a combined titanium dioxide and sponge titanium production capacity of 1.51 million tonnes per year.

• Operational focus: optimize energy efficiency across kiln and chlorination lines, implement digital process controls, and increase by-product recovery (scandium/vanadium) to improve margins and circularity.
• Market positioning: protect and grow share in domestic and export markets for titanium dioxide and sponge titanium while leveraging scandium and vanadium upstream integration to secure feedstock and pricing advantages.
• Capital allocation: balance capacity expansion and green investments with shareholder distributions to sustain the promised high dividend payout ratio.

LB Group Co., Ltd. (002601.SZ) - Vision Statement

• Quality: relentless focus on product reliability and manufacturing excellence - target defect rates below 0.5% across core product lines.
• Innovation: sustained R&D investment to accelerate technological leadership; R&D intensity aimed at 6-8% of annual revenue.
• Customer satisfaction: prioritizing end-user outcomes with Net Promoter Scores (NPS) targets above +40 and a reported customer recommendation rate exceeding 78% in recent surveys.
• Sustainability: ambitious environmental targets including a 30% carbon footprint reduction by 2025 versus baseline year, and active investment in renewable energy projects totaling several hundred million CNY.
• Social responsibility: annual allocation of a defined portion of pre-tax profits to community development, workforce training, and local infrastructure projects.
• Financial stability: conservative balance-sheet management, high dividend payout orientation, and market-cap scale that supports investment-grade supplier and partner relationships.

• Quality assurance: multilayered QA/QC processes and ISO-compliant production lines to keep returns and warranty claims minimal.
• R&D focus areas: precision manufacturing, advanced materials, digitalized production (Industry 4.0), and energy-efficiency solutions.
• Sustainability actions: on-site solar and energy-efficiency retrofits, supply-chain emissions audits, and procurement of renewable electricity certificates.
• Stakeholder engagement: transparent ESG reporting cadence and dedicated channels for customer feedback and investor communication.

• R&D-to-revenue ratio - signal of future product pipeline health.
• Dividend yield and payout ratio - measures of capital-return policy and financial stability.
• Carbon-intensity trajectory - progress toward the 30% reduction by 2025.
• Customer recommendation and retention rates - proxies for brand strength and recurring revenue potential.