30 August 2017

Cathay International Holdings Limited

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


Interim Results for the Six Months Ended 30 June 2017


Hong Kong, 30 August 2017 ­ Cathay International Holdings Limited (LSE: CTI.L), an operator and investor in the growing healthcare sector in the People’s Republic of China, today announces its Interim Results for the six months ended 30 June 2017.


Financial Highlights

  • Group revenue increased 1.5% to USD62.0 million (H1 2016: USD61.1 million) despite a 4.9% devaluation of RMB during the period
  • Group gross profit decreased marginally to USD29.2 million (H1 2016: USD31.4 million)
  • Group operating profit decreased marginally to USD4.7 million (H1 2016: USD5.5 million)
  • Group recorded two one-off incomes at Lansen: USD15.4 million from partial disposal of Starry shares and USD2.6 million from receipt of compensation relating to the insurance claim for damaged inventories fully written-off in 2015
  • Group finance costs were USD5.5 million (H1 2016: USD4.1 million)
  • Group profit after tax was USD16.6 million (H1 2016: USD0.7 million)
  • Group profit attributable to owners of the parent was USD5.7 million (H1 2016: loss of USD1.9 million)
  • Excluding one-off incomes, Group loss after tax was US4 million (H1 2016: profit of USD0.7 million) and Group loss attributable to owners of the parent was USD3.4 million (H1 2016: USD1.9 million); both increases in loss were due to increase in finance costs


Operational Highlights

The Group continues to focus on its three core businesses: pharmaceutical, cosmeceutical and healthcare.


  • revenue increased 2.4% driven by pharmaceutical sales growth, partly offset by decrease in overall cosmeceutical sales
  • 3% sales growth from pharmaceuticals: mainly from Pafulin, one of Lansen’s core products 
  • noticeable cosmeceutical sales growth from both Kefumei collagen masks and Yuze skincare products. However, for Fillderm, more time is needed to educate the market and promote as the understanding and use of collagen injectable fillers are still at a relatively early stage
  • developing Pafulin for use in other indications and geographies
  • identifying suitable products from its list of Chinese medicine licences to build a portfolio of Chinese Specialty Medicines in line with China’s strategy in promoting traditional Chinese medicines

Natural Dailyhealth

  • revenue increased by 118.3%, due to increased business activities following the realignment of businesses between Lansen Natural Dailyhealth
  • exploring opportunities to develop new plant extract products and to establish long-term agreements with sizeable customers to supply higher margin plant extracts under customers’ specification
  • in going downstream, applied for registration of 26 health and nutrition supplements and is embarking on studies of production and branding of healthcare products


  • renewed the production license for Fillderm from CFDA in the first quarter of 2017
  • entered into a renewed distribution agreement with Lansen to jointly distribute Fillderm
  • starting to build its own salesforce to work with Lansen, but educating the market about Fillderm and penetrating the market will take time and market reception is uncertain at this stage
  • started to develop collagen based cosmeceutical products with the aim of building a portfolio of products


  • lower production and sales of inositol due to lower production of raw material (phytin) as a result of low phosphorus content in corn water supply; coupled with low inositol market price, revenue decreased by 14.5%
  • technical improvements made to control the issue on low phosphorus content in corn water
  • focus on improving quality and quantity of phytin production to enhance production efficiency and reduce costs for inositol; and to support the production requirement for food grade DCP
  • completing the food grade DCP facility renovation and start commercial production in the second half of 2017


  • revenue increased in RMB terms but dropped slightly by 1% in USD terms
  • no significant change in the hotel market in Lowu, Shenzhen

food and beverage sales showed improvement

“Changing market conditions are still impacting our business. Whilst some business segments have adapted and are now starting to see the benefits of the Group’s diversification strategy, other units are still transitioning. In the short term, Haizi will continue to face pricing pressure, Lansen will need to expand its distribution network and streamline its product portfolio to withstand the fast-changing regulatory environment and expenses at Group level will increase relative to that in the first half. All these factors will add pressure to the Group’s performance. Nevertheless, I am confident that our business diversification strategy will deliver value for shareholders over the long term.”

Mr. Lee Jin-Yi

CEO of Cathay International Holdings Limited



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

Mary­Jane 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 by­product, di­calcium 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: www.cathay­intl.com.hk.


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