(Alliance News) - China-focused healthcare investor Cathay International Holdings Ltd on Tuesday said production at its investees has been halted as a result of measures imposed by the Chinese government to control the spread of coronavirus.
Some of the plants, however, are preparing to gradually resume output over the next seven to 10 days, unless government-imposed restrictions are extended.
Among the company's investments include Hong Kong-listed Lansen Pharmaceutical Holdings Co, Cosmetics Botai, a firm which sells injectable collagen lip-fillers, and healthcare company Inositol Haizi, which sells di-calcium phosphate, a nutritional supplement.
The company's portfolio also includes a Crowne Plaza hotel in Shenzhen. Cathay said the hotel, operated by InterContinental Hotels Group PLC, has seen a "marked reduction in occupancy and bookings" following the extended Chinese New Year break and travel restrictions in the country.
"Accordingly, there is a risk that these restrictions, if prolonged, may limit production and sales of our products which may have an adverse impact on our results for 2020. At this stage it is too early to gauge whether there will be an impact of any significance on the group's operations for the year 2020," Cathay said.
It added: "We are monitoring the situation closely and will provide further updates as appropriate."
Shares in the company were untraded in London on Tuesday afternoon, last quoted at 2.75 pence each.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.