3 May 2019 14:24
Cathay International Holdings Limited ("Cathay" or the "Company")
Renewal of Cross Guarantee Agreement
between Jilin Haizi and Lansen's subsidiaries
Hong Kong, 3 May 2019 - Cathay International Holdings Limited (LSE: CTI.L), an operator and investor in the growing healthcare sector in the People's Republic of China, today announces the proposed renewal of a cross guarantee agreement first entered into in June 2016 between Jilin Haizi Bio-Engineering Technology Company Ltd ("Jilin Haizi"), (a wholly owned subsidiary of the Company), Ningbo Liwah Pharmaceutical Company Ltd ("Ningbo Liwah") (a wholly owned subsidiary of Lansen Pharmaceutical Holdings Ltd ("Lansen" (HKEX: 503), in which the Company has a 50.68% holding)) and Lansen BVI (also a wholly owned subsidiary of Lansen).
The 2016 Cross Guarantee Agreement will expire on 30 June 2019 and, therefore, Ningbo Liwah, Jilin Haizi and Lansen BVI have entered into the 2019 Cross Guarantee Agreement, subject to the approval of Lansen's independent shareholders pursuant to the requirements of the Hong Kong Listing Rules.
The terms of the 2019 Cross Guarantee Agreement are unchanged from the 2016 Cross Guarantee Agreement save that it will be valid from 1 July 2019 to 30 June 2022 (the "Term"). Under the terms of the 2019 Cross Guarantee Agreement and during the Term, Jilin Haizi has agreed to provide guarantees in respect of obligations of Ningbo Liwah in respect of bank facilities obtained or to be obtained by Ningbo Liwah (the "Jilin Haizi Guarantees"). On a reciprocal basis, Lansen BVI has agreed to procure that its subsidiary, as appropriate, provide guarantees in respect of obligations of Jilin Haizi under the bank facilities to be obtained by Jilin Haizi (the "Lansen BVI Guarantees") (the Jilin Haizi Guarantees and the Lansen BVI Guarantees, collectively, the "Guarantees").
During the Term, the total amount of the Jilin Haizi Guarantees contemplated under the Cross Guarantee Agreement shall not exceed RMB130,000,000 (USD19.3 million); and, on a reciprocal basis, the total amount of the Lansen BVI Guarantees contemplated under the Cross Guarantee Agreement shall not exceed RMB130,000,000 (USD19.3 million). The Guarantees are unsecured.
The bank loans to be borrowed by the parties and covered by the Guarantees should be used solely for the purpose of meeting the funding requirement of each of the parties in their ordinary course of business.
The directors of the Company are satisfied that the 2019 Cross Guarantee Agreement is on normal commercial terms.
The full text of the Lansen Announcement can be found at http://www3.hkexnews.hk/listedco/listconews/SEHK/2019/0503/LTN201905031549.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.
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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 healthcare sector in the People's Republic of China (the "PRC"). The Group aims 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 PRC specialty pharmaceutical company focused on rheumatology and dermatology; Haizi, a PRC inositol manufacturer; 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 1,600 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 in Shenzhen. For more information please visit the Company's website: http://www.cathay-intl.com.hk.