Trading Update

 25 July 2019

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

Cathay International Holdings Limited

("Cathay", the "Company" or the "Group")

Trading update

Hong Kong, 25 July 2019 - 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"), provides a trading update for the six months ended 30 June 2019.

The Company expects a lower Group sales and profits in the first half 2019 than the same period last year.

As Lansen announced today in Hong Kong, Lansen expects to have noticeable decrease in its net profits for H1 2019 as compared with the net profit for H1 2018 due to the following reasons:

1. As stated in our 2018 annual report, Lansen has implemented a number of new strategic initiatives in its pharmaceutical business, in response to the challenging regulatory environment in China, by developing its own products such as Pafulin, Sicorten Plus, and certain featured pharmaceuticals; and reducing reliance on agency products. As a result, in the first half of the current financial year, Lansen's sales are below the same period last year.

2. A number of provisions and write-offs have been made against old and slow moving inventory.

3. As at 21 June 2019, Lansen decided not to exercise the put option (the "Put Option") to require Natural Dailyhealth to buy back its holding of 30% equity interest in Natural Dailyhealth. As a result, it has written off the related put option value.

Despite the short term impact on Lansen's results from the new strategic initiatives, Lansen sees improvement in its pharmaceutical segment and expects this segment's profit to be higher than that in same period last year, and looks forward to continuing improvement in the second half.

At Haizi, trading has been adversely impacted by a decrease in the market price for inositol and its results are expected to be below 2018.

Natural Dailyhealth and Botai are both trading broadly in line with expectations.

Our hotel remains profitable, although occupancy and average room rates are below last year and profits will be lower for the first half.

The Company's results for six months ended 30 June 2019 will be released in late August.

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