LOS ANGELES, April 14, 2005 (PRIMEZONE) -- Kiwa Bio-Tech Products Group Corporation ("the Company" or "KIWA"), (OTCBB:KWBT) reported its 2004 annual financial results yesterday. Net sales were $1.3 million for the year ended December 31, 2004, compared with net sales of $0.04 million for the year ended December 31, 2003, an increase of more than thirty one times. Gross profits for the year ended December 31, 2004 were $659,015, compared with $9,737 for the year ended December 31, 2003. Net Loss for the year ended December 31, 2004 was $2.7 million, compared with $1.4 million for the same period of last year. Net loss for 2004 included $2.1 million in non-cash charges related to financing activities and the March 2004 merger between Kiwa Bio-Tech Products Group Ltd and Tintic Gold Mining Company that formed our current company. Net sales were $599,150 for the fourth quarter ended December 31, 2004, compared with $40,031 for the fourth quarter ended December 31, 2003 and $407,884 for the quarter ended September 2004.
"2004 was a remarkable year for the Company. We made progress in all aspects of our corporate development, from corporate structuring to fundraising, from new product development to market expansion, and from revenue generation to cost savings," stated Wei Li, Chairman and CEO of KIWA. "We beat our revenue forecast by 30%, completed our development stage six months ahead of our plan, and recognized profits at our China subsidiary," Li commented.
Li continued, "Looking forward to 2005, we see great opportunities for growth. Assuming no significant capital infusion, we believe our revenue could reach $3 million this year." In response to many investors' inquiries about the low price for KIWA stock, Li added, "On one hand, we are very pleased with our execution of business plan in 2004, on the other hand, we are disappointed at our stock price movement since the company started trading on OTCBB market in early April 2004." He concluded: "We believe our stock is undervalued. We will work harder to improve our fundamentals and deliver the best results to our investors in 2005. In the meantime, we will take actions to investigate possible illegal shorting on our stock and enhance our investor relations."
For more information on KIWA and its products, please refer to the website at: http://www.kiwabiotech.com.
For detailed financial statements, please refer to link at:
About KIWA Bio-Tech Products Group Corporation
KIWA develops, manufactures and distributes innovative, cost-effective, and environmentally-safe bio-technological products to agricultural and environmental protection markets. The Company's goal is to help people in China and elsewhere in the world eat healthier, drink cleaner and live longer. The Company is a pioneer in commercialization of biotechnology, having an offshore manufacturing base in Shandong Province, China and distributing biotech products in China and Southeast Asia. This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.