BEIJING and CLAREMONT, Calif., June 10 /Xinhua-PRNewswire-FirstCall/ -- Kiwa Bio-Tech Products Group Corporation (OTC Bulletin Board: KWBT), announced the outcome of meetings with Jiangsu Zhongdong Group Co., Ltd. (“Zhongdong”) to develop a new compound bio-fertilizer. Kiwa hopes to receive authorization to begin to sell compound bio-fertilizer products by the end of June 2008.
Attending the May 24-26 meetings with Mr. Aogen Liu, the Chairman of Jiangsu Zhongdong Fertilizer Group were Kiwa executives Mr. Wei Li, CEO and Chairman, Mr. Dianyuan Song, Vice-president and Professor Qi Wang the director of KIWA-CAU R&D Centre.
The goal of the meetings was to address the growing Chinese market for compound bio-fertilizers as an alternative to chemical fertilizers. Based on recent market research, it is expected that the Chinese fertilizer market in 2008 will generate RMB 570,000 million in 2008. Bio-fertilizers and compound bio-fertilizers are expected to have a market share of approximately 20%.
Mr. Wei Li stated, “As we have been developing Kiwa’s bio-fertilizer market, many of our customers have asked Kiwa to produce compound
bio-fertilizer products along with producing and distributing bio-fertilizers. Each of Kiwa’s bio-fertilizer customers also needs great amounts of compound bio-fertilizer. Meanwhile, the marketing of compound bio-fertilizer is able to enhance the sales increase of Kiwa bio-fertilizer. To accommodate this market demand, Kiwa has been in the process of applying for wholesale permission to produce and market compound fertilizer from relevant authorities and it is expected to be authorized in June.”
Mr. Aogen Liu, Chairman of Zhongdong, stated, “Because of the price increase of raw materials in China, nearly all chemical fertilizer and compound fertilizer manufacturers’ operations and development has been restricted. Zhongdong has planned to use biotechnology to adjust the formula of its fertilizer products. The cooperation with China Agricultural University has led Kiwa to become a leading company in the China
bio-fertilizer industry. Zhongdong hopes to cooperate with Kiwa to develop new compound bio-fertilizer products as soon as possible.”
Mr. Liu also noted, “With Zhongdong’ s production capacity and market distribution channels as well as Kiwa’s bio-technology and market distribution network, we hope that the new cooperative products will gain at least a 10% market share of China fertilizer market in three years. We also hope to build a close strategic relationship with Kiwa based on working together on new product development.
ABOUT JIANGSU ZHONGDONG GROUP CO., LTD.
Jiangsu Zhongdong Group Co., Ltd. is an industrialized agricultural and chemical group and a leading company of integrating trade, industry and agriculture. In 2000, Zhongdong was approved as a national compound fertilizer manufacturer by China Economy and Trade Committee. Zhongdong is located in Jiaze town (west suburb of Changzhou city) in the Yangtze River Delta, and is close to Shanghai-Nanjing Expressway and Yanjiang Expressway. Zhongdong consists of 4 companies (3 fertilizer production bases and 1
large-scale pig farm): including Jiangsu Changzhou Zhongdong Fertilizer Co., Ltd., Jiangsu Shuyang Zhongdong Fertilizer Co., Ltd., Wuhan Zhongdong Chemical Co., Ltd. and Jiangsu Kangle Farming & Agriculture Co., Ltd, which are in different provinces and regions around China. By the end of 2007, its production capacity of compound fertilizer has reached 2 million tons. In the same year, production and sales of compound fertilizer hit 1.5 million tons, with sales revenue exceeding 1.8 billion RMB. Zhongdong has become a leading supplier in the phosphate compound fertilizer industry in China. http://www.jszd.com/template/en/index.htm
ABOUT KIWA BIO-TECH PRODUCTS GROUP CORPORATION
The Company is committed to sustainable and environmentally sound agriculture and holds significant intellectual property. Kiwa’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. The China Green Food Association of the Agriculture Ministry has certified six Kiwa bio-fertilizer products as “Green Food CGFA Recommend Brands. Kiwa-CAU Bio-Tech Research & Development Center at China Agriculture University of Beijing is conducting research focused on developing alternatives to chemical fertilizers, pesticides and antibiotics using organic nutrients and beneficial bacteria like Bacillus. The Company has excellent relations with government authorities in China and has developed several innovative, high margin products, while continuing to grow through internal and external product development. http://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.
For more information, please contact:
Yvonne Wang
Kiwa Bio-Tech Products Group Corporation
310 N. Indian Hill Blvd., #702, Claremont, CA 91711
Tel: +1-626-715-5855
Email: kiwabiotech@gmail.com
Robert Schechter
Equity Communications
Tel: +1-212-499-6809
Email: ir4kiwa@hotmail.com
