CLAREMONT, Calif., Nov. 6, 2006 (PRIMEZONE) -- Kiwa Bio-Tech Products Group Corporation (OTCBB:KWBT) announced that revenues for the third quarter ended September 30, 2006 were $906, 068 comparing favorably to revenues for the first six months of 2006 of just $24,374.
Revenues for the third quarter of 2006 were $906,068 compared to $3,422 for the same period in the previous year. Most of the revenues were the result of Kiwa's joint venture with Tianjin Challenge Feed Co. The new company, Tianjin Kiwa Feed Limited Liability Company, was established at the end of July to manufacture biologically enhanced livestock feed. Tianjin Kiwa has already set up nearly 200 sales terminals in North China. Tianjin Challenge Feed Co. is partially owned by and has built a large sales network, in part, due to its relations with China Challenge Group (www.challenge.com.cn). Its products are sold in Shandong, North China and Northeast China. Net loss for the third quarter was $1,350,055, which was partly due to non-cash expenses of approximately $925,000.
Mr. Wei Li, Chairman and CEO of Kiwa, stated, "The Company made significant progress during the quarter in upgrading manufacturing and equipment capabilities and passing product tests conducted by customers."
-- Kiwa has moved to the third phase of the acquisition of a
GMP factory. Due diligence concerning the target factory
is almost complete. Once the acquisition is completed,
Kiwa will apply for a veterinary drug certificate. Kiwa
anticipates that both the acquisition and approval to
manufacture veterinary drugs will be completed by yearend.
This factory produces AF-01 as a feed additive. The local
government of Guangdong province has already purchased
3 metric tons of AF-01 as feed additive; other provinces
are expected to order once approval is granted.
-- Kiwa Shandong Company facilities are being upgraded in
order to make and sell the ten new bio-fertilizer
products recently submitted for government approval. It
is expected that production lines and equipment will be
installed by February next year.
-- The Product Application Test in Xinjiang started at the
beginning of this year (and announced on May 24, 2006)
was completed with very positive results for Kiwa's tomato
fertilizer, YIMULING. As a result, Kiwa entered into
negotiations with, Xinjiang Chalkis Co. regarding
purchase of YIMULING.
-- Kiwa's bio-fertilizer for cotton is beginning an
application test to be completed during the first half of
next year. The test is in Xinjiang Province, which has
17,000,000 mu (see note) of cotton and is the largest cotton
growing province in China. Our customer, Xinjiang
Production and Construction Corps, possesses nearly
7,000,000 mu. Mr. Zhaozhang Hu, Senior Supervisor of
Xinjiang Production and Construction Corps, showed great
interest in Kiwa's products when he met with Mr. Wei Li,
Chairman and CEO of Kiwa and Prof. Qi Wang, Technology
Supervisor and has asked Kiwa to make additional product
proposals. At present, Kiwa has decided to set up a
cooperation institute in Urumchi, the capital of Xinjiang
Province, with Chalkis and Production and Construction
Corps, in order to work together to promote Kiwa's
products in Xinjiang.
(Note: The mu is a traditional Chinese unit of land measure equal to one-fifteenth of a hectare.)
Please refer to Kiwa's 10Q report filed with the SEC and available for free at www.sec.gov for complete details regarding the financial results for the third period ended September 30.
Financial Highlights
(unaudited)
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For 3 months ended
September 30
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2006 2005
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Net Sales 906,068 3,422
Operating Profit (loss) (645,655) (303,089)
Net Income (loss) (1,350,055) (433,533)
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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 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.