Kiwa Bio-Tech Smart-Soil & Bio-Fertilizer Retail Outlet Distribution Centers

Introduction of Retail Outlet Stores of Kiwa Bio-Tech：

The Eco-friendly County-level Agriculture Retail Outlet Stores (“Retail Outlet Stores”) of Kiwa Bio-Tech Products Group Corporation (“Kiwa Bio-Tech” or the “Company”) are established to promote the Company’s microbial fertilizer products. In 2017, Kiwa Bio-Tech has initiated a “Three-Part Marketing Model” including the establishment of retail outlet stores, the promotion of microbial fertilizers and purchase of crop plants that use Kiwa Bio-Tech’s products.

The Retail Outlet Stores are also the platform for implementing the “China Smart Soil Project” developed by Beijing Jingnong Public Foundation, a state-level non-governmental organization, upon which Kiwa Bio-Tech could expand into the soil restoration market and apply the Company’s technology on restoring the polluted arable land.

The management team of the Retail Outlet stores is comprised of staff members from Kiwa Bio-Tech and the Company’s business partners. The management team members are responsible for making annual strategic plans in the local areas according to Kiwa Bio-Tech’s overall business strategy, including distributing profits and implementing the programs developed by the “China Smart Soil Project”.

Kiwa Bio-Tech has established a total of four Retail Outlet Stores in Hu County, Fu County, Zhouzhi County and Tongchuan County in Shaanxi Province. In 2018, the Company plans to set up more Retail Outlet Stores in Shandong Province, Hainan Province, Yunnan Province, Guangdong Province and Guangxi Province. By implementing the “Three-Part Marketing Model”, the eco-friendly agriculture will be developed throughout China to provide safe and green agricultural products and help increase farmers’ income.

Functions of Retail Outlet Stores：

Purchase the standardized Agricultural products：

The core of the Three-Part Marketing Model is to promote standardized agricultural products that meet eco-friendly planting standards through the Company’s marketing channels. Kiwa Bio-Tech‘s partner， Living Green Agricultural Development Ltd. established in 2013 developed several marketing channels including high-end membership sales, e-commerce, Agricultural Products Logistics Center for Hongkong in Shenzhen and Fruit Export Trading Center in Penglai.

Provide eco-friendly agricultural planting methods:

According to market requirements and eco-friendly planting standards, Retail Outlet Stores provide agricultural materials and equipment for local farmers.

Provide financial support:

In order to assist farmers to solve their financial difficulties when purchasing agricultural materials, Kiwa Bio-Tech has relationships with banks and insurance companies to provide the following financial support:

1) Loan: Kiwa Bio-Tech cooperates with banks to help farmers get loans based on the Company’s own capital and credit as guaranties for farmers with financial difficulties.

2) Insurance: Kiwa Bio-Tech cooperates with insurance companies to promote agricultural insurance to respond to the natural disasters and market risks.

3) In addition, Kiwa Bio-Tech will also help farmers to claim various subsidies.

Technical support

Kiwa Bio-Tech has established strategicrelationships with agricultural science departments of the government and research institutions (such as the Agriculture Department and the Science and Technology Department of Shaanxi, the Northwest University of China, the Northwest Agriculture and Forestry University, etc.) to share resources, research results and policies in developing new agricultural products, planting management technology and soil restoration, which could be applied to help farmers adopt eco-friendly planting methods.

Implement the “China Smart Soil Project”:

According to the requirements of the “China Smart Soil Project”, Kiwa Bio-Tech provides free microbiological products such as soil amendments for farmers within marketing areas of the Retail Outlet Stores to facilitate soil restoration and improve the quality of agricultural products.