BEIJING and CLAREMONT, Calif., March 30, 2010 (GLOBE NEWSWIRE) -- Kiwa Bio-Tech Products Group Corporation (OTCBB:KWBT) announced results for 2009.
Results for 2009 reflect that as of December 31, 2009, the Company has classified its bio-enhanced feed business through Kiwa Tianjin as discontinued operations. This business was formed in 2006, when Kiwa entered into a joint venture with Tianjin Challenge Feed Co., Ltd. On December 22, 2009, Kiwa Tianjin filed a lawsuit against Challenge Feed in the local court of Wuqing District, Tianjin, where Kiwa Tianjin is domiciled. In the lawsuit, Kiwa Tianjin asserted that Challenge Feed unlawfully disposed of the assets held by Kiwa Tianjin. The local court is currently reviewing the complaint and related documents filed with it. As a result, Kiwa Tianjin could no longer use its assets including machinery and inventory in normal course of operation.
Net sales from continuing operations were $38,292 and $226,869 for the twelve months ended December 31, 2009, and 2008 representing a $188,577 or 83.1% decrease. The tremendous decrease was mainly due to loss of customers who are extremely price-sensitive and are reluctant to settle payment at the time of delivery.
Please refer to documents filed with the Securities and Exchange Commission for additional information on the results for the third quarter and first nine months of 2009.
Mr. Wei Li, Chairman and CEO of Kiwa, noted, "Kiwa continues to focus on the manufacturing and distribution of fertilizer and veterinary products including AF-01 anti-viral aerosol. We also continue to seek to secure financing that will provide flexibility in building our business and improve the balance sheet."
On May 8, 2006 Kiwa entered into a Technology Transfer Agreement with Jinan Kelongboao Bio-Tech Co., Ltd. ("JKB"), which will become fully effective when Kiwa has finished paying the first installment of consideration of RMB 3,000,000 according to the payment schedule in the contract. As of December 31, 2009, the Company has paid RMB 1,000,000 for the first installment of consideration of the contract. Pursuant to the agreement, JKB agreed to transfer its AF-01 anti-viral aerosol technology for veterinary medicine applications to the Company. The AF-01 anti-viral aerosol technology is a broad-spectrum antiviral agent with potent inhibitory and/or viricidal effects on a variety of RNA viruses found in animals and fowls such as bird flu. Kiwa acquired the exclusive production right and other related rights to produce an anti-viral aerosol veterinary drug. Kiwa hopes to develop a commercialized product in the form of a spray for applying in fowl houses and other animal holding facilities to prevent and cure virus-caused diseases. Kiwa is now in the process of applying for statutory licenses for the AF-01 technology.
ABOUT KIWA BIO-TECH PRODUCTS GROUP CORPORATION
The Company develops, manufactures, distributes and markets innovative, cost-effective, and environmentally safe bio-technological products for agricultural and natural resources and environmental conservation. The Company's products are designed to enhance the quality of human life by increasing the value, quality and productivity of crops and decreasing the negative environmental impact of chemicals and other wastes. For more information about the Company, please review documents filed with the SEC (www.sec.gov) or visit the Company's website, www.kiwabiotech.com.
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.