Anticipates Significant Improvement During Spring Planting Season
BEIJING and CLAREMONT, Calif., May 9 /Xinhua-PRNewswire-FirstCall/ -- Kiwa Bio-Tech Products Group Corporation (OTC Bulletin Board: KWBT) announced revenues for the first quarter of 2008 ended March 31 were $2,184,271, an increase of 57.8% above revenues of $1,384,093 for the first quarter of 2007.
The significant revenue improvement is due to the expansion in Kiwa's bio-fertilizer and bio-enhanced feed businesses. During the first quarter of 2008, revenue generated from the bio-fertilizer business increased 1136.7% to $148,104 from $11,976. Net sales contributed by the bio-enhanced feed business increased 48.4%, to $2,036,167 from $1,372,117 in the first quarter of the previous year.
The net loss increased to $686,195 for the three-month period ended March 31, 2008 compared to $639,259 for the three months ended March 31, 2007. This net loss increase was partially the result of a decrease in gross profit in the bio-feed business due to a sharp increase in prices of raw materials and an increase in interest expenses partly offset by a decrease in operating expenses. Please refer to documents filed today with the Securities and Exchange Commission for additional information on the results for the first quarter of 2008.
Mr. Wei Li, Chairman and CEO of Kiwa, stated, "Poor winter weather in
some planting areas of China and world wide increases in food prices
suggest that orders for the bio-fertilizer business will be strong during
the Spring planting season. We are pleased that our products are receiving
recognition by farmers and governmental agencies. For instance, in March,
the Ministry of Agriculture of the PRC granted an initial fertilizer
registration certificate to our wholly owned subsidiary, Kiwa Bio-Tech
Products (Shandong) Co., Ltd. for a newly developed bio-fertilizer product,
"Fudikang". Fudikang is an inoculant that speeds decomposition of organic
|SOURCE Kiwa Bio-Tech Products Group Corporation|
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