Cathay International Holdings Ld Update on Settlement of A Litigation (3700A)
27 December 2017 - 11:39PM
UK Regulatory
TIDMCTI
RNS Number : 3700A
Cathay International Holdings Ld
27 December 2017
Cathay International Holdings Limited
("Cathay" or the "Company" or the "Group")
Update on Settlement of A Litigation against Lansen's subsidiary
in Ningbo, the PRC
Hong Kong, 27 December 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 announcements
of Lansen dated 6 July 2015 and 1 September 2017 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 the Claimant's products. The Claimant
sought damages of approximately RMB70 million (approximately
USD10.65 million) from Ningbo Liwah, as well as relevant legal
fees. On 1 September 2017, Ningbo Liwah received a judgment
delivered by Shenzhen Intermediate People's Court of the PRC which
ruled in favour of the Claimant. As such, Ningbo Liwah was ordered
to pay damages to the Claimant in the amount of approximately RMB30
million (approximately USD4.57 million), after setting off of the
account receivables of approximately RMB4.3 million (approximately
USD0.7 million) due from the Claimant and to bear the legal costs
of approximately RMB0.2 million (approximately USD0.03
million).
On 27 December 2017, Ningbo Liwah entered into a settlement
agreement with the Claimant, of which Ningbo Liwah agreed to pay
the Claimant in the amount of RMB26 million (approximately USD4.0
million) after setting off the account receivables of approximately
RMB4.3 million (approximately USD0.7 million) due from the
Claimant. The compensation to the Claimant shall be paid by two
instalments (1) RMB15.6 million (approximately USD2.4 million) to
be paid on or before 31 January 2018 and (2) RMB10.4 million
(approximately USD1.6 million) to be paid within six months after
the signing date of the settlement agreement. The amount of the
compensation will be reflected in the profit and loss accounts of
Lansen group for the financial year of 2017 but is expected to have
minimum impact on Lansen group's cashflow and Lansen group's
business development.
The full text of the Lansen Announcement can be found 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: +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 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
END
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