16 Apr 2018 12:43
Cathay International Holdings Limited
("Cathay" or the "Company" or together with its subsidiaries, the "Group")
Lansen's shareholder loan to Natural Dailyhealth
Hong Kong, 16 April 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"), notes that Lansen Pharmaceutical Holdings Ltd, the Company's 50.56% owned subsidiary ("Lansen") (HKEX: 503), today announces (the "Lansen Announcement"), in accordance with the requirements of its Hong Kong listing, that, on 13 February 2017, Lansen Pharmaceutical Holdings Limited (the "Lender"), a wholly and directly owned subsidiary of Lansen, entered into a Shareholder's Loan Agreement (the "Shareholder's Loan Agreement") with Natural Dailyhealth Holdings Limited (formerly known as Haotian Holdings Limited) ("Natural Dailyhealth"), pursuant to which the Lender agreed to provide a shareholder loan to Natural Dailyhealth in proportion to its shareholding in Natural Dailyhealth and in an aggregate principal amount up to USD9,166,264.
Natural Dailyhealth is the only platform through which Cathay and Lansen together develop, operate and manage plant extract and health businesses. A wholly owned subsidiary of Cathay owns 70% of Natural Dailyhealth and the Lender owns the remaining 30% of Natural Dailyhealth. The provision of the shareholder loan was made by the Lender in proportion to its equity interest in Natural Dailyhealth and is for the general working capital needs of Natural Dailyhealth.
It is noted in the Lansen Announcement that Lansen inadvertently considered, at the time of entering into the Shareholder's Loan Agreement, that such an agreement was exempt from the disclosure requirements of the Hong Kong Listing Rules. Lansen has since been advised that the entry into the Shareholder's Loan Agreement was, in fact, a notifiable transaction under the Hong Kong Listing Rules and has, accordingly, taken steps to rectify this oversight by way of the Lansen Announcement released today.
The full text of the Lansen Announcement containing further details can be found at http://www.hkexnews.hk/listedco/listconews/SEHK/2018/0416/LTN20180416809.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) Tel: +852 2828 9289
Patrick Sung (Director and Controller)
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 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.