BEIJING, Jan. 27, 2011 /PRNewswire-Asia/ -- Lotus
Pharmaceuticals, Inc. (OTC Bulletin Board: LTUSD) ("Lotus" or the
"Company"), a fast-growing, profitable developer, manufacturer and
seller of medicine and drugs in the
People's Republic of China ("PRC"), announced today that in
response to recent investor interest, the Company has obtained land
price guidance from the Cha You Qian Qi local government and wishes
to provide additional details regarding its 2008 purchase of land
assets in Inner Mongolia.
The land purchase was entered into by Liang Fang, the Company's subsidiary, with both
Cha You Qian Qi ("Cha You") local government and Mengxin Vegetable
Product Company ("Mengxin"), a private company and the prior owner
of the land use rights. With the permission of Cha You local
government, Liang Fang was granted
the land use right of the 1,000 mu (approximately 666,700 square
meters) from Mengxin, and the payment of RMB
223.66 million ($32.7 million)
was paid to Mengxin.
Officials from the Cha You Qian Qi Land Reserve and Trade
Center, a subsidiary of Cha You Qian Qi Land and Resource Bureau,
have confirmed that the land has been designated for multi-purpose
use and has presented the Company with price guidance for the land
and surrounding area. The guidance indicates that as multiple-use
land, the market value of the property is approximately
RMB 400,000-600,000 per mu
(RMB 600-900 per square meter).
Property values in the area surrounding the land vary by about
RMB 100,000 per mu (RMB 150 per square meter) from this range.
Dr. Zhongyi Liu, Chairman and CEO
of Lotus, stated, "We spent approximately RMB 270 per square meter for this land tract in
2008. Since the purchase, we have made additional investments of
approximately RMB 126 per square
meter on road construction, water supply, electricity, and sewage,
as well as relocation compensation, bringing the total cost of the
land to approximately RMB 396 per
square meter. Given current local market conditions, we believe we
can sell the land at a price higher than our cost."
About Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. is a fast-growing, profitable
developer and producer of drugs and a licensed national seller of
pharmaceutical items in the People's
Republic of China (PRC). Lotus operates its business through
its two controlled entities: Liang Fang Pharmaceutical, Ltd. and En
Ze Jia Shi Pharmaceutical, Ltd. Lotus' current drug development is
focused on the treatment of cerebro-cardiovascular diseases, asthma
and diabetes. Liang Fang sells drugs
directly and indirectly through its national sales channels to
hospitals, clinics and drugs stores in 30 provinces of the PRC.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the
statements in this press release are forward-looking statements
that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties, which
may cause our actual results in future periods to differ materially
from forecasted results. These risks and uncertainties include,
among other things, product demand, market competition, and risks
inherent in our operations. These and other risks are described in
our filings with the U.S. Securities and Exchange
Commission.
Contacts:
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At the Company:
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Xing Shen, Ph.D.
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VP of Corporate
Development
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Lotus Pharmaceuticals,
Inc.
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Ph: 415-690-7688
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Email: shen@lotuspharma.com
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Web: http://www.lotuspharma.com
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Investor
Relations:
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Dave Gentry,
President
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RedChip Companies,
Inc.
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Tel: +1-800-733-2447, Ext.
104
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Email: info@redchip.com
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Web: http://www.redchip.com
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SOURCE Lotus Pharmaceuticals, Inc.