CLAREMONT, CA– (April 22, 2016) – Kiwa Bio-Tech Products Group Corporation (OTC: KWBT) reported that On April 15, 2016, Kiwa signed a strategic partnership agreement with Xinjiang Fruit Datang Silkroad E-Commerce Co., Ltd. The partnership will serve as an additional sales channel for the Company’s fertilizer products in Xinjiang, China. Datang Silkroad, an e-commerce company of agricultural products partially owned by the Xinjiang local government, together with Xinjiang Agricultural Materials Group, has a 40% market share of fertilizers in Xinjiang. The strategic partnership with these two state-owned companies will greatly enhance Kiwa’s market position in Xinjiang. According to the sales plan developed by the partners, biological organic fertilizers and the special fruit tree fertilizers will be the principal products in the market, and it is projected that sales volume in the market will approximate 10,000 tons annually.
Jimmy Zhou, Kiwa’s CEO, said “In addition Hunan, Hainan and Heilongjiang provinces, Xinjiang is also a key market for the company. Xinjiang currently has over 74 million Mu (approximately 12 million acres) under cultivation, mainly comprising cotton, fruits and grains. Through the strategic partnership with local companies in Xinjiang, our fertilizer sales in the region should be greatly enhanced.” Zhou also said, “we are anticipating a sales volume of Kiwa products of approximately $20 million through Kangtan Gerui (Beijing) Bio-Tech Co., Ltd. (Gerui), Kiwa’s local distributor. Notwithstanding, the Company does not expect to record any revenues from these sales in the first quarter of 2016 and will not see actual cash receipts until at least the 3rd quarter of 2016. Kiwa currently plans to acquire Gerui in the third quarter of 2016. “