Cathay International Holdings Ld Update on Litigation against Lansen's subsidiary (6343P)
September 01 2017 - 9:11AM
UK Regulatory
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: +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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