19 May 2010 15:32
19 May 2010
Cathay International Holdings Limited
Interim Management Statement
Cathay International Holdings Limited (the "Company") announces its Interim Management Statement for the period from 1 January 2010 to 14 May 2010:
Highlights of the period
·; On 21 January 2010, the Company announced, inter alia, the appointment of Mr. Lee Jin Yi as an executive director and Chief Executive Officer of the Company and the appointment of Mr Eric Siu as Finance Director of the Company.
·; On 12 February 2010, the Company announced further investments in Xian Haotian Bio-Engineering Technology Co. Limited ("Xian Haotian") and its subsidiaries and related companies (the "Xian Haotian Group").
·; On 1 April 2010, the Company announced the flotation of Lansen Pharmaceutical Holdings Company Limited ("Lansen"), a subsidiary of the Company, on the Hong Kong Stock Exchange, and the associated partial disposal of Lansen.
·; On 27 April 2010, the Company announced the preliminary annual results of the Group for the year ended 31 December 2009.
·; On 6 May 2010, the Company announced the successful closing of the placing and public offer of shares in Lansen.
Further investments in the Xian Haotian Group
On 12 February 2010, the Company announced further investments in the Xian Haotian Group, following which Xian Haotian is now an indirectly wholly owned subsidiary of the Company. The investment made in the Xian Haotian Group during the period was approximately US$13 million, which brings the total investment made to date to approximately US$33 million.
The Xian Haotian Group is one of the Company's major investments in the healthcare and pharmaceutical sector in China. Going forward, inositol will be the core product of the Xian Haotian Group, and the Company anticipates that the inositol business will become a major contributor to the growth in the Group's profits in 2011 and beyond. The inositol project is expected to commence production in the second half of 2010.
Flotation and Partial Disposal of Lansen
As announced on 6 May 2010, the public offer of shares in Lansen was approximately 852 times oversubscribed and the flotation offer price was set at HK$3.91 per share. The net proceeds of the flotation payable to Lansen, after deducting fees and expenses, were approximately HK$350.4 million (US$45.1 million). The net proceeds of the partial disposal received by the Company were approximately HK$114.9 million (US$14.8 million). Dealings in Lansen's shares on the Hong Kong Stock Exchange commenced on 7 May 2010.
Following completion of the flotation and the partial disposal, the Company indirectly holds approximately 52.46% of Lansen. Assuming that the over-allocation option provided under the terms of the flotation is exercised in full, the Company will indirectly hold approximately 50.56% of Lansen.
The effect of the flotation and partial disposal on the financial position of the Group has been an increase in net assets.
The financial performance of the Group in the period since the 2009 year end have been in line with the Company's expectations, and the outlook for the full year remains unchanged that expressed in our preliminary announcement of results on 27 April 2010.
Except for the further investment in the Xian Haotian Group and the net proceeds received from the flotation and partial disposal of Lansen, there has been no significant change to the financial position of the Group since that reported as at 31 December 2009.
For further information, please contact:
| Eric Siu (Finance Director) |
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| Patrick Sung (Director and Controller) | (via Brunswick) | 020 7404 5959 |