11 Feb 2020 14:36
Cathay International Holdings Limited
("Cathay" or the "Company")
Trading update
Hong Kong, 11 February 2020 - Cathay International Holdings Limited (LSE: CTI.L), today provides an update regarding trading in the context of the current outbreak of novel coronavirus which has been widely reported. The majority of the Group's operations are based in China and a number of restrictions have been imposed by provincial and national government to limit travel within China and to extend the Chinese New Year holiday period, in an attempt to control the spread of the novel coronavirus.
At present production at all of our plants is either on hold or preparing to gradually resume production within the next 7-10 days, subject to the further development of the epidemic and government advice or restrictions. Accordingly, there is a risk that these restrictions, if prolonged, may limit production and sales of our products which may have an adverse impact on our results for 2020. At this stage it is too early to gauge whether there will be an impact of any significance on the Group's operations for the year 2020.
Our hotel business in Shenzhen is showing a marked reduction in occupancy and bookings in the short term, as a result of the extended Chinese New Year break and restrictions or travel warning on travel within and to China. In the short term this will have a material impact on the hotel's financial performance, but it is not yet possible to say whether this will translate into a material impact on the results for the Group for 2020 as a whole.
We are monitoring the situation closely and will provide further updates as appropriate.
- 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 1,300 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.