LONDON (Alliance News) - Cathay International Holdings Ltd Friday said it made a loss in the first half of 2015, as revenue declined and it was hit by a challenging market in China which it said is set to continue.
Cathay, which invests in the Chinese healthcare sector, reported a pretax loss of USD432,000 in the six months ended June 30, having made a USD6.4 million profit in the first half of 2014, as its revenue fell 17% to USD62.2 million from USD74.7 million.
Cathay said that revenue declined in the half year due to delays in hospital tender processes, the non-renewal of a distribution agreement, and the continued low market price of inositol, a chemical compound used in drugs.
"While the first half has been challenging, and the second half will remain challenging due to current economic conditions in China as well as factors specific to the group's businesses, Cathay has robust operations and, with management's anticipation of the current pharma market slowdown and ongoing strategic product diversification, the group will continue to navigate through the challenging conditions," Chief Executive Lee Jin-Yi said in a statement.
"Although the Chinese pharmaceutical market is forecast to slow further in the short term, the board is confident the steps we are taking will improve our performance in the near term. The actions being taken are expected to position Cathay competitively against the challenges it faces, as we strive to deliver value to our shareholders," he added.
Shares in Cathay were down 15% on Friday at 19.00 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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