Trading Update

18 December 2018

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

Cathay International Holdings Limited

("Cathay", the "Company" or the "Group")

Trading update

Hong Kong, 18 December 2018 - Cathay International Holdings Limited (LSE: CTI.L), an operator and investor in the growing healthcare sector in the People's Republic of China (the "PRC"), provides a trading update for the year ending 31 December 2018.

The Group continues to face challenging economic conditions, regulatory changes and tough competition.

As reported in the interim results for the six months ended 30 June 2018, a number of management and operational changes have been made and/or are underway in all the Group's businesses, as a result of which selling and distribution costs have reduced materially. Such changes also include management to shorten working capital cycle, aiming to improve cash flow, which affects the Group's short term results but not the business fundamentals. The Group is also working to replace certain distribution agency products by developing and promoting its own products. In the short term, these measures are having an adverse impact on revenues and profits but are necessary in the Group's business operations.

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