Ontario, CA— (August 15, 2017) – Kiwa Bio-Tech Products Group Corporation (OTCQB: KWBT) (“Kiwa”or the“Company”), a Company focused on eco-friendly biological fertilizers promoting eco-friendly agriculture, released fiscal second quarter financial results that were driven by strong sales growth in Chinese market.
Key Highlights:
- 2017 second quarter net income was $5,016,977 (including $4,513,363 one-time gain from discontinued operations), compared to net income of $181,975 in the second quarter of 2016.
- 2017 second quarter net income from continuing operations increased 277% over 2016 second quarter net income from continuing operations.
- 2017 second quarter revenue was $5,682,108, compared with $443,085 in the second quarter of 2016.
- Our new biological organic fertilizer manufacturing base will commence operations at the end of 2017.
- We expect to expand our 4 sales teams in various regions in China to increase market penetration and sales.
For the quarter ended June 30, 2017, the Company reported net income was $5,016,977 (including $4,513,363 one-time gain from discontinued operations), compared with $181,975 in the second quarter of 2016. 2017 second quarter revenue was $5,682,108, compared with $443,085 for the same period a year ago.
“We continue to see strong sales growth in our key markets on both a quarter-to- quarter and year-to-year basis. We believe that our growth derives from increasing demand for biological organic fertilizer products,” said Kiwa CEO, Yvonne Wang. “To meet the need of this large and growing market, we expect that our new fertilizer manufacturing facility will commence operations by the end of 2017.”
“During the second quarter of this fiscal year, the sales results exceeded our expectations and reached 25,500 tons of fertilizer products. This significant growth is due to the accomplishment of several milestones in our business plan. We plan to proactively adjust our product mix, expand our sales teams, and develop enhanced sales and marketing strategies in major agricultural areas of North, South and Central China. As a result, we believe that we can achieve our sales target of 100,000 tons of biological organic fertilizer products for the remainder of fiscal year 2017. At the same time, Kiwa is participating in establishing the standard system of eco-friendly agriculture, which will have a significant impact on the development of agriculture in China,” said Wang.
Market Outlook
In China, the biological organic fertilizer markets continue to grow due to increasing demand and strong consumption in most key economic crop planting regions in China. The tea-planting region in South and Central parts of China covers an area of approximately 3,320,000 mu (221,333 hectares) and the tobacco and orange planting areas in South China cover approximately 770,000 mu (51,333 hectares) and 2,557,498 mu (170,500 hectares) respectively.
The Chinese Ministry of Agriculture issued a notice “Implementation of the Plan to Use Organic Fertilizer on the Cultivation of Fruit, Vegetables and Tea” in April 2017. The notice created a requirement to use at least 50 % organic fertilizer in China’s main planting areas of fruit, vegetables and tea by 2020 as a part of a program to replace chemical fertilizer with biological organic fertilizer.
