Cathay International Holdings Ld Update on Litigation against Lansen's subsidiary (6343P)

TIDMCTI

RNS Number : 6343P

Cathay International Holdings Ld

01 September 2017

Cathay International Holdings Limited

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

Update on Litigation against Lansen's subsidiary in Ningbo, the PRC

Hong Kong, 1 September 2017 - Cathay International Holdings Ltd. (LSE: CTI.L), an operator and investor in the growing healthcare sector in the People's Republic of China (the "PRC"), today announces that, Lansen Pharmaceutical Holdings Ltd ("Lansen") (HKEX: 503), the Company's 50.56% owned subsidiary, 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 reference is made to the announcement of Lansen dated 6 July 2015 in relation to a legal proceeding (the "Litigation") initiated by Neptunus Medicine Company Limited (the "Claimant") against Ningbo Liwah Pharmaceutical Company Limited ("Ningbo Liwah"), a wholly owned subsidiary of Lansen. In the Litigation, the Claimant alleged that it had suffered certain losses due to the use of ginkgo extract supplied by Ningbo Liwah in Claimant's products. The Claimant sought damages of approximately RMB70 million from Ningbo Liwah, as well as relevant legal fees.

On 1 September 2017, Ningbo Liwah received a judgment (the "Judgement") delivered by Shenzhen Intermediate People's Court of the PRC. According to the Judgement, the Court ruled in favour of the Claimant. As such, Ningbo Liwah is ordered to pay an amount of approximately RMB30 million (approximately USD4.57 million), after set off of the account receivables of approximately RMB4.3 million (approximately US$0.7 million) due from the Claimant, as damages to the Claimant and to bear the legal costs of approximately RMB0.2 million (approximately USD0.03 million).

Ningbo Liwah has sought opinion on the Judgement from its legal counsel in the PRC and intends to make an appeal against the Judgement. Lansen will, in accordance with the applicable laws, make every effort to protect its interests and its shareholders' interests. Lansen is currently assessing the impact of the Judgement on its group's financial results and position at this stage, and will make further announcements to inform its shareholders and potential investors of further assessment and developments of the case as and when appropriate.

Cathay will inform shareholders of any material developments or notify the market when Lansen makes an announcement relevant to the above proceedings.

The full text of the Lansen Announcement can be found at http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0901/LTN201709012373.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: [phone]

Patrick Sung (Director and Controller)

Consilium Strategic Communications

   Mary-Jane Elliott/ Matthew Neal / Lindsey Neville            Tel: [phone] 

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: http://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.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 01, 2017 10:11 ET (14:11 GMT)