CLAREMONT, CA– (January 4, 2017) – Kiwa Bio-Tech Products Group Corporation (OTCQB: KWBT) announced that 2016 was a great year for the Company; following the completion of the reorganization of the Company at the end of 2015, the Company is pleased to announce that it has successfully implemented its business plan in fiscal year 2016.
As of December 31, 2016, KIWA achieved product sales well in excess of its projected levels in its 2016 business plan. Specifically, the company reported total product shipments of more than 55,000 tons and total sales of nearly US$9,000,000. The level of both product shipments and revenues significantly exceed comparable prior periods.
The Company also applied for fertilizer registration certificates for the newly developed fertilizers. The Company believes that this will also facilitate increasing sales in 2017 and going forward into the future. During 2016, KIWA successfully established several strategic marketing relationships. These included partnerships with CCOOP Group Co., LTD, Joyvio Great Northern Wilderness Holding Company, Hunan, Hainan, Shandong and Hebei Provinces and several other distributors who are evaluating and testing the Company’s new line of products. In addition, KIWA is poised to further expand sales in 2017 through two new subsidiaries which are focused on Shenzhen, Guangdong Province and Gu’an, Hebei Province. These relationships should support and provide sales channels for the launch of new Kiwa fertilizer products for sale throughout in 2017.
In September 2016, company had signed an acquisition agreement with the Tangshan Deruifeng Technology Co., Ltd., but ultimately decided to terminate the acquisition due to Tangshan Deruifeng Technology Co., Ltd., was not able to meet the financial requirements of a USGAAP audit. Currently, KIWA is in negotiation with two additional manufacturing factories in China that the Company believes will be able to meet the requirements of a USGAAP audit. The Company believes that its improved technology and bacteria fermentation ability, KIWA will be able to sell its patented products to other producers and continue participating in the rapid growth of the “bio-fertilizer” industry in China.
To increase its operating capacity, the company also completed the issuance of 1,775,000 shares of common stock, with net proceeds of almost $1.42 million US dollars.
Overall, the company was very successful in implementing its goals for 2016 and is poised to do so again in 2017.