CTI.L Regulatory News (CTI)

Cathay International Holdings Limited

("Cathay", the "Company" or the "Group")

Entrusted Manufacturing Framework Agreement

between Natural Dailyhealth BVI and Lansen BVI

Hong Kong, 20 September 2016 - Cathay International Holdings Ltd. (LSE: CTI.L), a leading operator and investor in the growing healthcare sector in the People's Republic of China ("PRC"), today announces that its subsidiary Lansen Pharmaceutical Holdings Ltd ("Lansen") (HKEX: 503), in which the Company has a 50.56% holding, has announced that on 20 September 2016, Lansen (BVI), a wholly-owned subsidiary of the Lansen Group entered into the Entrusted Processing Framework Agreement (the "Agreement") with Natural Dailyhealth (BVI) (formerly Haotian (BVI)) pursuant to which, Lansen (BVI) agrees to assist or procure its subsidiaries to assist Natural Dailyhealth (BVI) to process the plant extraction components and raw materials for producing healthcare products ("Plant Extract Products"). Lansen (BVI) and CI Biotechnology, a wholly-owned subsidiary of Cathay, own 30% and 70% equity interests in Natural Dailyhealth (BVI) respectively.

The Agreement will enable Natural Dailyhealth (BVI) to utilise surplus production capacity of the Lansen Group and enhance the Group's operations.

Pursuant to the Agreement, Natural Dailyhealth (BVI) may entrust Lansen (BVI) with the processing of the Plant Extract Products on an order-by-order basis and Lansen (BVI) will charge process fee on a cost-plus basis, representing all costs incurred by Lansen (BVI) in relation to the processing of the product plus a mark-up rate of 10% of such costs. There is no obligation on Lansen (BVI) to take up processing orders from Natural Dailyhealth (BVI) under the Entrusted Processing Framework Agreement.

The term of the Agreement will commence on 20 September 2016 and will expire on 31 December 2018, unless terminated by either Party by giving the other written notice of termination at least one month prior to the effective date of such termination.

The annual capped value of the transactions contemplated under the Agreement for the period ending 31 December 2016 will be RMB20 million (approximately USD3.0 million); for the year ending 31 December 2017, RMB30 million (approximately USD4.5 million); and for the year ending 31 December 2018, RMB30 million (approximately USD4.5 million).

The full text of Lansen's announcement can be found at http://www.hkexnews.hk/listedco/listconews/SEHK/2016/0920/LTN20160920435.pdf and will also be made available at the Announcements & Notices section of Lansen's homepage at http://www.lansen.com.cn/En/Announcements&Notices.asp.

-ENDS-

For further enquiries, please contact:

Cathay International Holdings Limited

Eric Siu (Finance Director) Tel: +852 2828 9289

Patrick Sung (Director and Controller)

N+1 Singer

Aubrey Powell/ Lauren Kettle- Corporate Finance Tel: +44 (0) 20 7496 3000

Brough Ransom - Sales

Consilium Strategic Communications

Mary-Jane Elliott/ Matthew Neal / Lindsey Neville Tel: +44 (0) 203 709 5700

About Cathay

Cathay International Holdings Limited (LSE: CTI.L) is a main market listed investment holding company and a leading operator and investor in the growing healthcare sector in the People's Republic of China (the "PRC"). The Company and its subsidiaries (collectively the "Group") aim to leverage on growth opportunities in the strong and growing domestic demand for high quality healthcare products in the PRC and build its portfolio companies into market sector leaders with competitive edge. Cathay has already demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: Lansen, a leading specialty pharmaceutical company focused on rheumatology and dermatology in the PRC; Haizi, a company engaged in the manufacture, marketing and sale of inositol and its by-product, di-calcium phosphate; Yangling, a company engaged in production and sales of plant extracts for use as key active ingredients in healthcare products; and Botai, a company engaged in collagen products.

The Group employs approximately 2,000 people across the PRC, including over 30 specialist corporate and business development staff based at the holding company's offices in Hong Kong and Shenzhen. Cathay also has a hotel investment. For more information please visit the Company's website: www.cathay-intl.com.hk.

About Lansen

Lansen, whose shares are listed on the mainboard of the Hong Kong Stock Exchange, is a 50.56% owned subsidiary of Cathay. Lansen is engaged in the manufacture, distribution and development of specialty prescription drugs for treatment of autoimmune disorder in rheumatology and dermatology. Lansen is in the leading market position in disease modifying anti-rheumatic drugs ("DMARDs") for treatment of rheumatoid arthritis ("RA") in the PRC. Lansen has established an extensive distribution network, covering more than 1,000 hospitals in four municipalities, 25 provinces and cities in the PRC. For more information please visit the Lansen's website: http://www.lansen.com.cn/En/index.asp.