SHISHI, China, April 21, 2020 /PRNewswire/ -- KBS Fashion Group Limited ("KBS" or the "Company") (NASDAQ: KBSF), a leading fully-integrated casual menswear company in China, announced today that its wholly-owned subsidiary Anhui Kai Xin Apparel Company Limited ("Kai Xin") is partnering with three face mask manufacturers in China to distribute non-medical disposable face masks amid the rapidly evolving COVID-19 pandemic. Anhui Yikang Medical Technology Co., Ltd., Taihu Fubeikang Sanitary Material Co., Ltd., and Taihu Mingya Labor Insurance Technology Co., Ltd. are mainly engaged in the production of non-medical disposable face masks with a total daily production capacity of approximately 3 million pieces. According to the partnership arrangement, these three companies will use Kai Xin's excess production facilities to manufacture face masks, while Kai Xin will take advantage of its expansive distribution channels to promote sales of products. We started generating additional revenue from renting out facilities for mask manufacturing at the beginning of March.
Mr. Keyan Yan, Chief Executive Officer of the Company commented: "The apparel industry is facing enormous challenges due to the global COVID-19 outbreak. Business has been shut down in China for months to contain the virus, resulting in our company's sales to decline. As operations resume gradually in China, we have been working on creative solutions to use our production capacity and existing resources to grow potential businesses. Starting in March, we established a partnership with Anhui local face mask companies to initiate face mask exporting by using our vendors and overseas sales channels. We believe that leasing our production facilities to our partners to make face masks will help us generate additional revenues. Meanwhile, the management team is making progress to enhance product offerings and improve our sales strategy to drive long-term growth opportunities for our shareholders".
About KBS Fashion Group Limited
Headquartered in Shishi, China, KBS Fashion Group Limited, through its subsidiaries, is engaged in the business of designing, manufacturing, selling and distributing its own casual menswear brand, KBS, through a network of 30 KBS branded stores (as of Dec 31, 2019) and over a number of multi-brand stores. To learn more about the Company, please visit its corporate website at www.kbsfashion.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of KBS Fashion Group Limited, and its subsidiary companies. All statements, other than statements of historical fact included herein, are "forward-looking statements" in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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