CLAREMONT, CA– (February 21, 2017) – Kiwa Bio-Tech Products Group Corporation (OTCQB: KWBT) announced today that the company believes it is well-positioned in Asia to benefit from certain recently enacted Chinese government regulations regarding the restricted use of chemical fertilizers.
New regulations in China are aimed at a major reduction in the use of chemical fertilizers and to significantly promote agricultural efficiency. According to relevant statistics over a 35-year period, from 1979 to 2013, China’s fertilizer consumption increased from 10.86 million tons to 59.12 million tons.
“China has entered a stage of rapidly rising customer expectations. Consumers want their food to be of high quality and they seek greater choice. The basic objective of agricultural reform is to provide safe, edible food and bio-fertilizers are capable of doing this,”
stated Kiwa’s CEO Yvonne Wang.
In 2017, legislation in China is focused on affecting the quality and safety of agricultural products. For years, Kiwa Bio-Tech has been developing fertilizer products utilizing organic fertilizers instead of chemical fertilizers that support the goal of zero pesticide growth.
“According to the China Federal Government, in pursuit of safer, more sustainable, higher quality food products, there must be no increase in use of pesticides. Better quality-control and more systematic production will ensure the safety of produce,” added Wang.
While accelerating the unification of domestic and international standards, the government of China is pursuing an ongoing effort to develop and protect China’s national agricultural product brands. The current market in China for fertilizers is around 100 billion USD per year.
As of December 31, 2016, KIWA achieved product sales well in excess of levels projected 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. Kiwa Bio-Tech also applied for fertilizer registration certificates for its newly developed fertilizers. Earlier this month, the Company eliminated close to US$8.6 million dollars in corporate debt as a part of its restructuring.
During 2016, KIWA 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. In addition, there are several other distributors who are evaluating and testing the Company’s new line of products.
KIWA believes that it 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 across the distribution network in 2017 and beyond.