OREANDA-NEWS. Cathay International Holdings Ltd. (LSE: CTI.L), an investment holding company and a leading operator and investor in the growing healthcare sector in the People's Republic of China, today announces that Liwah Zhiti and Yangling Haotian and Xian Haotian renewed the plant extract supply agreement for a further three years from 1 January 2015 to 31 December 2017. 

This announcement follows one made by the Company on 3 September 2013 in relation to the Existing Entrusted Manufacturing Framework for the supply of plant extract products entered between Liwah Zhiti, an indirect subsidiary of Cathay under the Lansen Group, and Yangling Haotian and Xian Haotian, indirect wholly-owned subsidiaries of Cathay under the Haotian Group. The Existing Entrusted Manufacturing Framework Agreement will expire on 31 December 2014.

In the last quarter of 2014, Yangling Haotian has completed the upgrading of their multi-purpose production facilities to further expand plant extraction capacity. Yangling Haotian's facilities met Liwah Zhiti's requirements as a reliable, quality and stable supplier. The renewed agreement leverages key synergies between Haotian's and Lansen's plant extract business in manufacturing, R&D and marketing.

Under the terms of the renewed agreement, which is deemed to be in the ordinary course of business for Cathay, Yangling Haotian and Xian Haotian will supply plant extract products on an order by order basis to Liwah Zhiti. The selling price per unit will be determined by reference to the market prices for the products.

The maximum value of the transactions contemplated under the renewed agreement will be approximately USD4.7million (RMB29 million) each year for the years ending 2015, 2016 and 2017.

Mr. Lee Jin-Yi, Chief Executive Officer of Cathay, commented:"The renewed agreement will continue to develop one of many potential synergy within Cathay group, which will lead to greater efficiencies and enhanced benefits for the Group's operations."

About Cathay

Cathay International Holdings Limited (LSE: CTI.L) is a main market listed investment holding company and a leading operator and investor in the growing healthcare sector in the People's Republic of China ("PRC"). Taking advantage of the strong and growing domestic demand for high quality healthcare products in China, Cathay aims to identify investment opportunities with emphasis on high growth healthcare markets and build them into market sector leaders, with a clear exit strategy. Cathay has already demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: Lansen Group, China's leading specialty pharmaceutical company focused on rheumatology, Haotian Group, a company engaged in the manufacture, marketing and sale of key active ingredients for healthcare products, including dietary supplement inositol and Botai, a company engaged in the development of pharmaceutical products and bringing these to the growing Chinese market.

The Group employs more than 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 private equity investment arm focused on minority investment opportunities and a hotel investment.

About Ningbo Liwah Plant Extraction Technology Limited ("Liwah Zhiti")

Liwah Zhiti is primarily engaged in the production of western pharmaceuticals in the treatment of rheumatic diseases, production and sale of OTC pharmaceuticals and the sale of modern Chinese medicine extracts. Liwah Zhiti is a company incorporated in the PRC and an indirect subsidiary of Cathay under the Lansen Group. 

About Yangling Haotian Biotechnology Co. Limited ("Yangling Haotian")

Yangling Haotian is primarily engaged in the manufacture of plant extracts used as various key active ingredients in food, beverages, cosmetics, dietary supplements and healthcare products. Yangling Haotian is a company incorporated in the PRC and an indirect wholly-owned subsidiary of Cathay under the Haotian Group. 

About Xian Haotian Bio-engineering Technology Co. Limited ("Xian Haotian")

Xian Haotian is primarily engaged in the marketing and sale of plant extracts used as various key active ingredients in food, beverages, cosmetics, dietary supplements and healthcare products.  Xian Haotian is a company incorporated in the PRC and an indirect wholly-owned subsidiary of Cathay under the Haotian Group.