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.
SOURCE Lotus Pharmaceuticals, Inc.