CLAREMONT, Calif., Dec. 11, 2006 (PRIME NEWSWIRE) -- Kiwa Bio-Tech Products Group Corporation (OTCBB:KWBT) announced that sales revenues in Xinjiang Uygur Autonomous Region of the year 2007 is expected to hit RMB 70 Million (US$8.75 Million).
Kiwa Bio-Tech's sales revenues forecasts in Xinjiang are mainly based on the Company's cooperative relationship with Xinjiang Chalkis Co., Ltd. and Xinjiang Rundi Bio-tech Co., Ltd.
Chalkis plans to place an order of about 2,000 metric tons of Kiwa's YIMULING products, 3,000 metric tons of Organic Fertilizer products and 100 metric tons of CHAOFEIBAO products for its approximately 500,000 mu tomato planting area in the year 2007. (Note: The mu is a traditional Chinese unit of land measurement, which equals to approximately one-fifteenth of a hectare.) If the planning of orders has been implemented, sales revenue to Chalkis in 2007 is expected to hit RMB 20 Million (US$2.5 Million) or so.
Xinjiang Rundi Bio-Tech is also planning to place an order of about RMB 50 Million (US$6.25 Million) in the year 2007. Xinjiang Rundi Bio-Tech Co. Ltd is a local company focusing on researching, developing, producing as well as marketing bio-tech products. Xinjiang Rundi has developed a good cooperative relationship with the local government in the filed of biologically enhanced agricultural products. Xinjiang Rundi's sales network stretches to Yili State, Ba State and Bole State, which are the main agricultural states within Xinjiang Uygur Autonomous Region. According to Rundi's plan, it will begin to sell Kiwa's products such as YIMULING, Organic Fertilizer and CHAOFEIBAO in the year 2007, and Rundi's management predicts that sales revenue of Kiwa's products is expected to be no less than RMB 50 Million (US$6.25 Million). Yili State, with its 900,000 hectares of agricultural plantation, over 200,000,000 hectares of natural grassland and 1,800,000 hectares of forest, is one of the biggest production bases for Xinjiang's agriculture and stockbreeding. Major corps of Yili State includes cotton, wheat, sugar beet and several other kinds of fruits. In the meantime, Yili State has about 14,500,000 of livestock on hand every year. The bio-fertilizer products and AF-01 Biological veterinary drugs of Kiwa will be sold in Yili State through Rundi's sales network.
Mr. Wei Li, Chairman and CEO of Kiwa, stated, "In the recent two months, we have been working on the expansion of our market share in Xinjiang. The Company expects to make significant progress next year in the sales revenue resulting from Kiwa's marketing campaign and the huge potential market of Xinjiang."
Meanwhile, R&D Center of Kiwa has already worked out the plan of products' experiments together with Agro-Technology Extending Sector of Xinjiang Production and Construction Corps (XPCC). According to the plan, two new products of Kiwa will conduct application tests in the main cotton and tomato planting base of XPCC early next year. These two new products, named Kiwa High-efficiency Biological Drought-Resistance for Cotton and Kiwa High-efficiency Biological Cold-Resistance for Cotton, are developed by Kiwa's R&D Center and China Agricultural University aiming at resolving the problem of cold and drought in Xinjiang. Management believes that once these two products pass the application tests, Kiwa will obtain a large market share in China Northern cotton planting area. Statistics show that Hebei, Shandong and Xinjiang are the main cotton planting areas in North China, while these three areas are the main markets where Kiwa's products are mainly to be sold.
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 has acquired the rights to manufacture and market AF-01 Anti-viral Aerosol Agent for use in preventing (blocking) bird-flu disease in Chinese and international markets. The Company has excellent relations with government authorities in China and has developed several innovative, high margin products, while continuing to grow through internal and external product development.
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.