CLAREMONT, Calif., April 4, 2007 (PRIME NEWSWIRE) -- Kiwa Bio-Tech Products Group Corporation (OTCBB:KWBT) announced that the Company has filed its Annual Report on 10-KSB for the fiscal year of 2006 on time with the SEC.
The Annual Report indicates that the Company's net sales for the fiscal year of 2006 exceeded $3.3 million, representing a 423.4% increase compared with 2005. The significant increase is mainly due to the expansion of the Company's business into a variety of new segments. During 2005, the Company was operating only in the bio-fertilizer market; in 2006 the Company expanded into a new business scope of bio-enhanced feed and Urea entrepot trade. At the same time, gross profits were more than $590,000, an increase of 49.2% as compared to 2005. Bio-enhanced feed and Urea entrepot trade have served as the main sources for gross profit. The net loss of the year was $2.28 million (including $760,000 of non-cash expenses), representing a 72% increase compared with 2005. Major causes include selling expenses, consulting and professional fees relating to financing, officers' compensation, provisions of assets impairment and R&D fees.
As of December 31, 2006, the Company's total assets were approximately $4.5 million, an increase of 44.7% as compared to that of December 31, 2005. Liquidity has been improved resulting from equity and debt financing closed during the year. Current ratio at the year end was 1.26:1. For detailed information, please refer to SEC website.
As a public company listed on OTC Bulletin Board, the submission of the Annual Report on 10-KSB on time shows the Company's ability of fulfilling its obligation of information disclosure. The Annual Report provides a good channel for shareholders and the public to access the Company's information timely and accurately.
When addressing the Company's operating results and financial condition, Mr. Wei Li, the Board Chairman and CEO of Kiwa said, "During the fiscal year of 2006, we have achieved remarkable increase in sales revenue. In the meanwhile, we also made a lot of efforts in market expansion and AF-01 Anti-viral aerosol project, which formed a solid basis for the Company's development in 2007. We will keep on making efforts on exploring markets, increasing sales revenue, developing new products and controlling operating expenses, and we believe the Company's operating results and financial condition will be further improved in 2007."
About Kiwa Bio-Tech Products Group Corporation
The Company develops, manufactures, 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.