6 Jul 2015 10:25
Cathay International Holdings Limited
("Cathay", the "Company" or the "Group")
Litigation against Lansen's subsidiary in Ningbo, the PRC
Hong Kong, 6 July 2015 - 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 made a regulatory announcement in accordance with the requirements of its Hong Kong listing.
The board of directors of Lansen has informed its shareholders and potential investors that it has recently come to its attention that Neptunus Medicine Company Limited (the "Claimant"), a subsidiary of Shenzhen Neptunus Biological Engineering Company Limited ("Shenzhen Neptunus") has initiated legal proceedings as plaintiff (the "Litigation") against Ningbo Liwah Pharmaceutical Company Limited ("Ningbo Liwah"), a wholly owned subsidiary of Lansen in Ningbo, the PRC. According to an announcement published by Shenzhen Neptunus, the Claimant had submitted a writ of summons at Shenzhen Intermediate People's Court and the court had issued a notice of case acceptance. As at the date of this announcement, Ningbo Liwah has not received any court documents in relation to the Litigation. In the Litigation, the Claimant alleged that it had suffered several losses due to the use of ginkgo extract supplied by Ningbo Liwah in Claimant's products. The Claimant is therefore seeking damages of approximately RMB70 million (approximately USD11.2 million at the current exchange rate) from Ningbo Liwah, as well as relevant legal fees.
Lansen has sought a preliminary opinion on the Litigation from its legal counsel in the PRC, who, based on the information available as of the date of this announcement, is of the opinion that the amount claimed by the Claimant is highly disputable. Lansen will, in accordance with the applicable laws, make every effort to protect its interests and its shareholders' interests, actively respond to the case and defend its position vigorously. Lansen will closely monitor the development of this matter and make further announcements if and when there are any significant developments in relation to it.
Cathay will inform shareholders of any material developments or notify the market when Lansen makes an announcement relevant to the above proceedings.
-ENDS-
For further enquiries, please contact:
Cathay International Holdings Limited
Eric Siu (Finance Director)
Patrick Sung (Director and Controller)
Tel: +852 2828 9289
N+1 Singer
+44 (0) 20 7496 3000
Aubrey Powell - Corporate Finance
Brough Ransom - Sales
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 a leading operator and investor in the growing healthcare sector in the People's Republic of China ("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 Group, 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; Yangling, 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.asp