BEIJING, April 17, 2007 (PRIME NEWSWIRE) -- Lotus Pharmaceuticals, Inc. (OTCBB:LTUS) released its 2006 audited annual report, revealing gross revenues of $36 million, net profits of $4.1 million and net assets of $20.6 million.
Mr. Adam Wasserman, Chief Financial Officer, summarized the Form 10-KSB filed today: "Total revenues for the year ended December 31, 2006 were $36,207,689 as compared to total revenues of $18,345,841 for the year ended December 31, 2005, an increase of $17,861,848 or approximately 97 percent.
"For the year ended December 31, 2006, wholesale revenues increased by $9,331,033 or 58 percent. The significant increase in tangible product revenues is mainly attributed to continued strong sales of our best selling product, Valsartan Capsules, a medicine for primary hypertension or high blood pressure.
"For the year ended December 31, 2006, retail revenues increased by $1,903,238 or 116.7 percent. Eight of our 10 retail pharmacy stores are appointed pharmacy stores of medication insurance; thus, all of the customers who have medication insurance can get reimbursement from the social insurance agency, if they buy medicines in our stores. For the year ended December 31, 2006, other revenues increased by $6,627,577.
"Gross profit for the year ended December 31, 2006 was $9,684,650 or 26.7 per cent of total revenues, as compared to $3,761,159 or 20.5 percent of revenues for the year ended December 31, 2005. Our working capital position increased $2,694,840 to $8,646,076 at December 31, 2006 from $5,951,236 at December 31, 2005," concluded Mr. Wasserman.
Dr. Liu Zhongyi, Chief Executive Officer, remarked: "The performance of Lotus is a tribute to our superior products and personnel. We are confident that this is only the beginning for our Company. Building on this success and with appropriate financing, our strategy is that Lotus will establish itself as one of the major pharmaceutical companies with much expanded marketing channels and a good range of products, plus a superb R&D capability.
"We firmly believe our existing operations can realize organic growth of 20 percent per year for the coming years. In addition, through complementary acquisitions, we expect to achieve aggregate yearly revenues in excess of $140 million. With expected profit margins of 12-15 percent, after planned acquisitions, Lotus would be on the fast track to leverage the synergy inherent in our enhanced operations. Achieving these objectives should place Lotus amongst the top 100 pharmaceutical companies in China,'' Dr. Liu concluded.
About Lotus Pharmaceuticals, Inc.
Lotus Pharmaceuticals, Inc. ("Lotus") owns and operates Liang Fang Pharmaceutical, Ltd. ("Liang") and En Zhe Jia Shi Pharmaceutical, Ltd. ("En Zhe"), two Chinese pharmaceutical companies located in Beijing. Liang and En Zhe form a large comprehensive enterprise, which deals in an integration of the production, trade, sales and marketing of pharmaceuticals. Together, they possess some of the most advanced pharmaceutical-production equipment used in China, workshops authenticated by the National GMP, a suite of various medicines produced by Liang and/or En Zhe (together, "Lotus East"), and a large number of high-tech personnel. Lotus East has business and office facilities of 2,000 square meters and a warehouse of 1,000 square meters. Lotus East performs scientific research on new medicines, and the production, wholesale and retail sale of medicines. For more information, visit http://www.LotusEast.com.
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