31 Dec 2018 07:00
Cathay International Holdings Limited
("Cathay" or the "Company")
Investment by Lansen in Robustnique
Notification of class 2 transaction
Hong Kong, 31 December 2018 - Cathay International Holdings Limited (LSE: CTI.L), an operator and investor in the growing healthcare sector in the People's Republic of China (the "PRC"), announces that its subsidiary, Lansen Pharmaceutical Holdings Limited ("Lansen", incorporated in the Cayman Islands) (HKEX: 503), the Company's 50.56% owned subsidiary, has announced today that its indirect wholly owned subsidiary, Ningbo Lansen Medibeauty Tech Limited ("Ningbo Lansen Medibeauty"), has entered into an Equity Transfer Agreement (the "Agreement") for the purchase of a 20% equity interest in Tianjin Robustnique Biotechnology Co., Limited ("Robustnique") ("Lansen's Investment") from one of the existing shareholders, Shenzhen Webio Co., Limited ("Shenzhen Webio"), for a cash consideration of RMB14 million (approximately USD2.0 million) (the "Lansen Announcement") The full text of the Lansen Announcement can be found at http://www3.hkexnews.hk/listedco/listconews/SEHK/2018/1231/LTN20181231401.pdf and will also be made available at the Announcements & Notices section of Lansen's homepage at http://holding.lansen.com.cn//en/newslist.aspx?NodeCode=10002000700050005.
Information on Robustnique
Robustnique, established in January 2010, mainly engages in the research and development and industrialization of new industrial enzyme preparations, molecular biology tool enzymes, and bioactive factors for cosmetics and biological skincare products.
Set out below is a summary of the audited financial results of Robustnique for the two years ended 31 December 2016 and 31 December 2017, which were prepared in accordance with the PRC generally accepted accounting principles:
| Year ended 31 December | |||
| 2017 | 2016 | ||
| RMB'000 | Equivalent USD'000 | RMB'000 | Equivalent USD'000 |
Revenue | 10,481 | 1,604 | 5,322 | 767 |
Profit before taxation | 237 | 36 | 272 | 39 |
Gross assets | 12,210 | 1,869 | 8,960 | 1,292 |
Net assets | 2,103 | 322 | 1,867 | 269 |
Details of key individuals important to the business of Robustnique
Dr. Zheng Chunyang is the Founder, Chairman of the Board and General Manager of Robustnique.
Details of the transaction
The consideration of Lansen's Investment is RMB14 million (approximately USD2.0 million), which shall be funded through the existing internal resources of the Lansen group.
Ningbo Lansen Medibeauty has also entered into a Shareholders Agreement with Robustnique and its existing shareholders, which sets out the rights and responsibilities of Ningbo Lansen Medibeauty and the rest of Robustnique's shareholders. Under the Shareholders Agreement, Ningbo Lansen Medibeauty will have the right to appoint one director to the board of directors in Robustnique.
Effect of the transaction on Lansen group and benefits of the transaction
One of Lansen's strategies is to explore opportunities through business alliances or acquisitions to further develop its business in the cosmeceutical industry. Robustnique is mainly involved in the enzyme preparation business and cosmetic business, applying advanced biological and enzymatic preparation technology to the cosmetic field, which the Board believes will be synergistic to Lansen.
As such, Lansen has engaged Robustnique to develop the San Parietti series, Lansen's own skincare and cosmetic product pipeline. The San Parietti series will be further developed, establishing a solid foundation for Lansen's cosmeceutical business.
The transaction constitutes a class 2 transaction for the purpose of the Financial Conduct Authority's Listing Rules.
-Ends-
For further enquiries, please contact:
Cathay International Holdings Limited Eric Siu (Finance Director) Patrick Sung (Director and Controller)
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Tel: +852 2828 9289 |
Consilium Strategic Communications Mary-Jane Elliott / Matthew Neal / Lindsey Neville
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Tel: +44 (0) 203 709 5702
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About Cathay
Cathay International Holdings Limited (LSE: CTI.L) is a main market listed investment holding company and an operator and investor in the healthcare sector in the People's Republic of China (the "PRC"). The Company and its subsidiaries (collectively the "Group") aim to leverage on investment opportunities in the growing domestic demand for high quality healthcare products in the PRC and build portfolio companies into market sector leaders with competitive edge. Cathay has already demonstrated a track record of identifying 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; Natural Dailyhealth, 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 1,800 people across the PRC, including over 20 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 main board 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: www.lansen.com.cn/en/index.aspx.