ONTARIO, Calif., May 15, 2018 (GLOBE NEWSWIRE) -- Kiwa Bio-Tech Products Group Corp. (OTCQB:KWBT) (“Kiwa Bio-Tech” or the “Company”), a leading agricultural biotechnology company that develops and manufactures microbial fertilizers for use in the multi-billion agricultural industry reported its financial results for the first quarter ended March 31, 2018.
First Quarter 2018 Results
- Revenue of $8,755,106 up 100% compared to the same period in 2017.
- Operating Income of $657,308 up 241% compared to a loss of $466,884 in the same period in 2017.
Strategic development
- The Company expanded into Yangling China (Shaanxi) Pilot Free Trade Zone, the only free trade zone in China with a special focus on agricultural development. The Company also benefits from the policy support, agricultural technology innovation, mature agricultural industry system and international platform.
- Kiwa Bio-Tech is dedicated to completing the Three-Part Marketing Model including establishing retail outlet stores, promoting fertilizer products, and repurchasing the agricultural products which use Kiwa Bio-Tech’s fertilizer. As of this date, the Company has established 4 retail outlet stores in Shaanxi Province which distribute the Company’s fertilizer products.
- The Company is expanding its eco-friendly microbial fertilizer products and smart-soil restoration technologies into the $4.8 billion Soil Restoration Market and $130 billion Traditional Chinese Medicine Planting Market.
- The Company is continuing to establish cooperative relationships with insurance companies to develop agricultural insurance provided to farmers.
Yvonne Wang, Chairman and Chief Executive Officer (CEO) of Kiwa Bio-Tech, stated, “We have started this year with a solid performance in the first quarter. The demand for eco-friendly microbial fertilizer remains strong in the principal crop planting areas in China. We believe the first quarter result improvement is an important indicator of the progress we are making toward achieving our profitability targets and long-term goals. We are excited by the opportunities our strategic plan presents for the remainder of fiscal year 2018 and thereafter. We will continue to concentrate on the development and distribution of high-efficiency fertilizer products and development of markets for soil restoration.”
Form 10-Q For further information, please see the Company's Quarterly Report on Form 10-Q at www.sec.gov, which the Company filed on May 14, 2018.
About Kiwa Bio-Tech Products Group Corp. Leader in Eco-friendly Agricultural Industry Chain
Kiwa Bio-Tech Products Group Corp. (KWBT) is a publicly traded company with corporate headquarters in the United States. The company develops, manufacture, markets and distributes innovative and environmentally safe bio-technological products for agriculture. Kiwa’s focus is to positively impact the environment by reducing the amount of chemicals that are being used by agricultural growers in China.
KWBT’s products are covered by patent protection and are designed to enhance the quality of human life by increasing the value and productivity of agricultural crops.
For more information on Kiwa Bio-Tech Products Group Corporation or its bio-fertilizer products and smart soil remediation technology, please refer to the Company’s website at www.kiwabiotech.com or the Company filings with the United States Securities and Exchange Commission at www.sec.gov .
Forward-Looking Statements
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 U.S. 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's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic, business and environment conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, the execution of its ten-year growth plan, the foreign exchange risk amid the unexpected announcements by the PRC government and various other factors beyond the Company's control. Kiwa Bio-Tech Products Group Corp. 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.
Contact: Kiwa Bio-Tech Products Group Corporation Molly Han Investor & Media Relations Tel: 909-456-8828 molly@kiwabiotech.com
KIWA BIO-TECH PRODUCTS GROUP CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)
| Three Months Ended March 31, | |||||||
| 2018 | 2017 | ||||||
| (As Restated) | |||||||
| Revenue | $ | 8,755,106 | $ | - | |||
| Cost of goods sold | (6,309,209 | ) | - | ||||
| Gross Profit | 2,445,897 | - | |||||
| Operating expenses | |||||||
| Research and development expenses | 39,313 | 36,291 | |||||
| Selling expenses | 184,337 | 36,286 | |||||
| General and administrative expenses | 1,564,939 | 394,307 | |||||
| Total operating expenses | 1,788,589 | 466,884 | |||||
| Operating Income (Loss) | 657,308 | (466,884 | ) | ||||
| Other income/(expense), net | |||||||
| Change in fair value of derivative liabilities | 129,938 | - | |||||
| Interest expense | (155,363 | ) | (61,793 | ) | |||
| Other income/(expense) | (906 | ) | - | ||||
| Foreign exchange loss | (38,032 | ) | - | ||||
| Total other income/(expense), net | (64,363 | ) | (61,793 | ) | |||
| Income (loss) from continuing operations before income taxes | 592,945 | (528,677 | ) | ||||
| (Provision) benefit for income taxes | |||||||
| Current | (539,341 | ) | (219,356 | ) | |||
| Deferred | - | 270,747 | |||||
| Total (provision) benefit for income taxes | (539,341 | ) | 51,391 | ||||
| Income (loss) from continuing operations | 53,604 | (477,286 | ) | ||||
| Loss from discontinued operations, net of taxes | - | (14,220 | ) | ||||
| Net Income (loss) | 53,604 | (491,506 | ) | ||||
| Other comprehensive income (loss) | |||||||
| Foreign currency translation adjustment | 499,306 | (35,271 | ) | ||||
| Total comprehensive income (loss) | $ | 552,910 | $ | (526,777 | ) | ||
| Earnings (loss) per share - Basic: | |||||||
| Income (loss) from continuing operations | $ | 0.00 | $ | (0.05 | ) | ||
| Discontinued operations | - | (0.00 | ) | ||||
| Net Income (loss) | $ | 0.00 | (0.05 | ) | |||
| Earnings per share – Diluted: | |||||||
| Income (loss) from continuing operations | $ | 0.00 | $ | (0.05 | ) | ||
| Discontinued operations | - | (0.00 | ) | ||||
| Net Income (loss) | $ | 0.00 | $ | (0.05 | ) | ||
| Weighted average number of common shares outstanding - basic | 15,919,632 | 9,073,759 | |||||
| Weighted average number of common shares outstanding - diluted | 15,919,632 | 9,073,759 | |||||
KIWA BIO-TECH PRODUCTS GROUP CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Three Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| (As Restated) | ||||||||
| Cash flows from continuing operating activities: | ||||||||
| Net income (loss) | $ | 53,604 | $ | (491,506 | ) | |||
| Loss from discontinued operations, net of taxes | - | 14,220 | ||||||
| Net Income (loss) from continuing operations | 53,604 | (477,286 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash used in continuing operating activities: | ||||||||
| Depreciation | 19,564 | 9,466 | ||||||
| Accrued interest | 155,363 | 61,793 | ||||||
| Stock compensation for consulting fee | 588,535 | 157,050 | ||||||
| Gain on derivative liabilities | (129,938 | ) | - | |||||
| Deferred income tax | - | (51,391 | ) | |||||
| Changes in continuing operating assets and liabilities: | ||||||||
| Accounts receivable | 5,513 | (2,641,137 | ) | |||||
| Prepaid expenses | (19,369 | ) | (12,017 | ) | ||||
| Rent deposit and other receivables | (531,677 | ) | (1,059,210 | ) | ||||
| Advance to suppliers | 6,760,357 | 1,756,189 | ||||||
| Due from related party – non-trade | 19,467 | - | ||||||
| Due from related party – trade | - | 205,850 | ||||||
| Inventory | (10,636,800 | ) | - | |||||
| Deferred cost of goods sold | 4,702 | (2,067,680 | ) | |||||
| Deferred tax assets | - | (270,747 | ) | |||||
| Accounts payable | 1,584,721 | 7,813 | ||||||
| Salary payable | 77,004 | 29,303 | ||||||
| Taxes payable | 530,147 | 218,724 | ||||||
| Advances from customers | 33,943 | - | ||||||
| Other payables and accruals | 315,130 | (40,951 | ) | |||||
| Deferred revenue | (5,513 | ) | 3,150,667 | |||||
| Net cash used in continuing operating activities | (1,175,247 | ) | (1,023,564 | ) | ||||
| Net cash used in discontinued operations | - | - | ||||||
| Net cash used in operating activities | (1,175,247 | ) | (1,023,564 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property, plant and equipment | (1,935 | ) | - | |||||
| Net cash used in investing activities | (1,935 | ) | - | |||||
| Cash flows from financing activities: | ||||||||
| Borrowings from related parties, net | 99,267 | 27,000 | ||||||
| Proceeds from sale of common stock | - | 1,000,000 | ||||||
| Proceeds from convertible notes | - | 145,165 | ||||||
| Net cash provided by financing activities | 99,267 | 1,172,165 | ||||||
| Effect of exchange rate change | 56,144 | (21,969 | ) | |||||
| Cash and cash equivalents: | ||||||||
| Net (decrease) increase | (1,021,771 | ) | 126,632 | |||||
| Balance at beginning of period | 1,083,539 | 13,469 | ||||||
| Balance at end of period | $ | 61,768 | $ | 140,101 | ||||
| Non-cash financing activities: | ||||||||
| Issuance of common stock for consulting services | $ | 1,760,000 | $ | - | ||||
| Issuance of common stock for financing related services | $ | - | $ | 85,400 | ||||
| Supplemental Disclosures of Cash flow Information: | ||||||||
| Cash paid for interest | $ | - | $ | - | ||||
| Cash paid for income taxes | $ | - | $ | - | ||||
