Interim Management Statement

Cathay International Holdings Limited

("Cathay" or the "Company")

Interim Management Statement

Hong Kong, 17 May 2012 - Cathay International Holdings Ltd. (LSE: CTI.L), an investment holding company and a leading investor in the growing healthcare sector in the People's Republic of China ("PRC"), today announces its interim management statement for the period from 1 January to 17 May 2012 in accordance with FSA Disclosure and Transparency Rule 4.3. 

Mr. Lee Jin-Yi, CEO of Cathay International Holdings Limited, said: "During the period Cathay has performed in line with management's expectations. Cathay remains focused on delivering on the Group's core objectives of generating growth whilst maintaining efficiency across all of its businesses. Lansen continues to work towards broadening and strengthening its rheumatology product portfolio with the aim to have nine new products on the market over the next five years. Haotian is expected to have a positive impact on revenues and growth for the Group in 2012 as inositol production comes fully on-line in the second half of 2012. Furthermore, we are delighted that the Group's first investment in the healthcare sector, Botai, has become the first domestic company to be granted a production license for collagen injectable filler. We look forward to the launch of this product later in the year."

Business update

In January, Lansen (HKEx: 503), Cathay's PRC leading auto-immune diseases specialist subsidiary, which is listed on the mainboard of the Hong Kong Exchange, further broadened its product portfolio and signed an exclusive marketing and distribution agreement with Shanghai Jahwa United Company Limited (SSE: 600315) for medical skin care products for the PRC market. This is the second collaboration Lansen has made which utilizes its extensive, nationwide distribution network in China.

In February, Lansen received a National Torch Program Certificate from The Ministry of Science and Technology of the PRC for its core DMARD product, Total Glucosides of White Peony Capsules (also known as "Pafulin"). This recognition will further improve brand awareness and competitiveness of Pafulin, one of Lansen's leading rheumatology brands in the Chinese market.

In April, Haotian completed the construction of its sixth phytin plant in Yushu, Jilin Province and commenced trial production. With this plant becoming operational by Q2 2012, Haotian is expected to have enough production of phytin to support up to 75% of the designed inositol capacity. Haotian has also received, as expected, a production licence for food additive grade Dicalcium Phosphate (DCP), a by-product of the inositol production process, from the Bureau of Quality and Technical Supervision of Jilin Province. This enables Haotian to market its food additive grade DCP across the PRC. DCP is used as a nutritional supplement and as a food additive and is mainly used in the pharmaceutical industry to make calcium tablets.

In May, Cathay announced that its research and development subsidiary Changchun Botai was granted the first ever production license for medical collagen injectable filler by the State Food and Drug Administration of the PRC. Changchun Botai plans to launch the collagen injectable filler (branded "Fillderm") by the end of 2012. The aesthetic products and equipment market in China was reportedly estimated at US$100.2 million in 2011 and is expected to reach a projected US$151.6 million in 2014, representing a CAGR of 14.8%.

Financial position

There has been no significant change in the financial position of the Group since the Company's full year financial results for the year ended 31 December 2011, which were reported on 29 March 2012.

-ENDS-

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About Cathay

Cathay International Holdings Limited (CTI.L) is an investment holding company and a leading 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 and Haotian Group, a company engaged in the manufacture, marketing and sale of key active ingredients for healthcare products, including dietary supplement inositol. To complement its healthcare portfolio, Cathay has a research and product development business focused on bringing new products 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. For more information please visit the Company's website: www.cathay-intl.com.hk.