2 May 2018 11:20
Cathay International Holdings Limited
("Cathay", the "Company" or the "Group")
Lansen subsidiary enters into a distribution agreement with Botai as the distributor of Collagen Injectable Fillers in the PRC
Hong Kong, 2 May 2018 - Cathay International Holdings Limited (LSE: CTI.L), a leading operator and investor in the growing healthcare sector in the People's Republic of China (the "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 its indirect wholly-owned subsidiary, Ningbo Lansen Medibeauty Tech Ltd. ("Ningbo Lansen Beauty"), has entered into a Distribution Agreement (the "Agreement") with Botai (an indirectly wholly owned subsidiary of the Company) whereby Botai agrees to appoint Ningbo Lansen Beauty as a distributor of its Collagen Injectable Fillers in the PRC.
The term of the Agreement begins on 2 May 2018 ("the Effective Date") and terminates on 2 May 2020, subject to an extension which may be agreed by the parties (the "Term"). Under the terms of the Agreement, Ningbo Lansen Beauty, as the appointed distributor, may, during the Term, purchase the Collagen Injectable Fillers from Botai on an order-by-order basis. The unit price of the Collagen Injectable Fillers to be purchased by Ningbo Lansen Beauty from Botai under the Agreement is agreed at a fixed price throughout the Term and is determined with reference to the prices of comparable collagen injectable fillers products in the PRC market.
The maximum total value of the transactions contemplated under the Agreement for the period from the Effective Date to 31 December 2018, the year ending 31 December 2019, and the period from 1 January 2020 to 2 May 2020 are estimated to be RMB20 million (approximately USD3.16 million, GBP2.32 million), RMB20 million (approximately USD3.16 million, GBP2.32 million) and RMB7 million (approximately USD1.11 million, GBP 0.81 million) respectively.
Botai's Collagen Injectable Fillers are used in non-surgical cosmetic treatments by filling facial dermal tissue to rectify medium to high level nasolabial folds. By injecting into dermis, the collagen fibre solution plumps up and smoothes the skin to improve wrinkles and fill sunken skin.
The full text of the Lansen Announcement can be found at http://www.hkexnews.hk/listedco/listconews/SEHK/2018/0502/LTN201805021764.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.
-ENDS-
For further enquiries, please contact:
Cathay International Holdings Limited
Eric Siu (Finance Director)
Patrick Sung (Director and Controller)
Tel: +852 2828 9289
Consilium Strategic Communications
Mary-Jane Elliott/ Matthew Neal / Lindsey Neville
Tel: +44 (0) 20 3709 5702
About Cathay
Cathay International Holdings Limited (LSE: CTI.L) is a main market listed investment holding company and an 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; 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 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.aspx.
About Botai
Botai, an indirect wholly owned subsidiary of Cathay, is a company established under the laws of the PRC which is primarily engaged in the research and development of collagen-based dermal fillers for the cosmetic surgery market. Botai received the first ever domestic production licence for collagen-based dermal fillers by the CFDA.