CLAREMONT, Calif., Aug. 14, 2006 (PRIMEZONE) -- Kiwa Bio-Tech Products Group Corporation (OTCBB:KWBT) announced results for the first half of 2006. Revenues for the first six months of 2006 were $24,374 compared to $1,018,303 the previous year. The primary cause of low sales in the first half of 2006 was the halt in operations at our manufacturing facility in the second half of 2005 to upgrade the facility to produce bacillus fertilizer. This upgrade was delayed due to the failure to obtain expected financing for it in the second half of 2005. We restarted production in the late first quarter of 2006 but volume has been low due to a shortage of working capital. In addition, sales in the first quarter of 2006 were low because the first quarter is a low season for products in China and most of the net sales for the six months ended June 30, 2005 were attributable to exports.
Mr. Wei Li, Chairman and CEO of Kiwa, said, "We expect significant improvements in revenues during the second half of the year based on developments announced during the last few months."
Mr. Li noted that, "The first Board Meeting of Tianjin Kiwa Feed Co. was held on August 9, 2006 in Beijing. Mr. Li Wenbin, General Manager of Tianjin presented the 2006 Annual Operation Plan. According to this plan, Tianjin Kiwa will realize sales revenue of US$3,500,000 by the end of 2006. Tianjin Kiwa has received orders of US$1,500,000 for the third quarter, and US$2,000,000 for the fourth quarter of 2006."
OTHER RECENT ANNOUNCEMENTS:
-- An agreement with China Hua Yang Roneo Corporation to
purchase from us 200,000 metric tons of urea over 18 months.
The value of the contract is US$34,000,000. China Hua Yang
Roneo Corporation is a subsidiary of China Council for the
Promotion of International Trade, and sells Chinese products
to Southeast Asia and European countries. The products
covered by this contract will primarily be exported to The
Philippines and Viet Nam.
-- In order to meet its obligation to supply urea, Kiwa has
signed a contract with Shengkui Technologies, Inc. to
purchase from Shengkui 1,200,000 metric tons of prilled
urea N 46% agricultural. The term of the agreement is 18.
-- Kiwa and Tianjin Kiwa Challenge Feed Co. completed the
registration of a joint venture in July. The new company,
Tianjin Kiwa Challenge Feed, is located in Wuqing District
in Tianjin, and is a limited liability company organized
under the laws of People's Republic of China. Tianjin
Challenge has already set up nearly 200 sales terminals
in North China for the joint venture.
-- Kiwa's bio-fertilizer product passed initial field tests
conducted by a subsidiary of Xinjiang Chalkistomato Co.
The 6th Agriculture Division of Xinjiang Production and
Construction Corp tested Kiwa's microbe fertilizer on some
of its tomato fields. Xinjiang Production and Construction
Corp. is one of China's largest agriculture companies and
is a subsidiary of Xinjiang Chalkistomato Co., one of the
largest tomato production and processing enterprise in China.
For more details on these agreements and contracts, please refer to reports filed by Kiwa with the United States Securities and Exchange Commission available free of charge at http://www.sec.gov.
ABOUT KIWA BIO-TECH PRODUCTS GROUP CORPORATION
The Company develops, manufactures, and distributes and markets innovative, cost-effective, and environmentally safe bio-technological products for agricultural and natural resources and environmental conservation. The Company's products are designed to enhance the quality of human life by increasing the value, quality and productivity of crops and decreasing the negative environmental impact of chemicals and other wastes.
For more information about the Company, please visit the Company's website at http://www.kiwabiotech.com.
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.