CTI.L Regulatory News (CTI)

Cathay International Holdings Limited

("Cathay" or the "Company")

Interim Management Statement

Hong Kong, 19 May 2014 - Cathay International Holdings Ltd. (LSE: CTI.L), an investment holding company and a leading investor and operator in the growing healthcare sector in the People's Republic of China ("PRC"), today announces its Interim Management Statement for the period from 1 January 2014 to 18 May 2014 in accordance with FSA Disclosure and Transparency Rule 4.3.

Business update

The business development team at Lansen, set up in 2013 to actively explore market opportunities and identify suitable drugs for RA and dermatology indications, has in line with strategy entered into a number of transactions. During the first quarter 2014, Lansen acquired from Novartis "Sicorten Plus™" in China, a corticosteroid cream for the treatment of inflammatory skin diseases. Lansen also obtained the exclusive distribution rights for "Kefumei", a collagen dressing product, from Xi'an Juzi Biology Gene Technology Co.,Ltd, a Chinese high-tech enterprise focused on genetic engineering and bio-medical materials. These transactions not only expand Lansen's drug portfolio but also expose Lansen to more acquisition and collaboration opportunities with global pharmaceutical groups.

Haizi has increased its inositol production level from approximately 100 tonnes per month in December 2013 to 130 tonnes per month in April 2014 (annualized run rate of 1560 tonnes). At Haizi, work continues with corn fluid suppliers to ensure the smooth and continued supply of raw material for inositol production. Haizi has a full order book of inositol manufacture in the second quarter. The inositol market price has remained relatively stable during the period. Within the Yangling business unit, work has commenced to rebuild the business volume of its bilberry extract product.

During the period, the hotel has performed in line with management expectations. The Hotel continues to improve service quality and build a loyal customer base.

Financial position

There has been no significant change in the financial position of the Group since the Company's full year financial results for the year ended 31 December 2013, which were reported on 27 March 2014.

Mr. Lee Jin-Yi, CEO of Cathay International Holdings Limited, said:"Consistent with what we highlighted in our recent 2013 preliminary results, Cathay International Holdings continues to benefit from China's rapidly developing healthcare sector. Overall we anticipate 2014 to be a fruitful one for the Group. We will work to leverage the many synergies that already lie within the Group and capture opportunities in the growing healthcare market in China."

-ENDS-

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About Cathay

Cathay International Holdings Limited (LSE: CTI.L), focused on the People's Republic of China ("PRC"), is an investment holding company and a leading investor and operator in the growing healthcare sector in the People's Republic of China ("PRC"). The Group employs more than 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 aims to identify business opportunities with emphasis on high growth healthcare markets and build them into market sector leaders, with a clear exit strategy. Cathay has demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: Lansen Group, China's leading specialty pharmaceutical company focused on rheumatology and dermatology; Haizi Group, a company engaged in the manufacture, marketing and sale of inositol and DCP; and the Yangling group, a company engaged in the extract and trading of key active ingredients for healthcare products, including inositol. To complement its healthcare portfolio, Cathay has a research and product development business focused on bringing new products to the growing Chinese market.

Cathay also has a hotel investment. For more information please visit the Company's website: www.cathay-intl.com.hk.