BEIJING and CLAREMONT, Calif., Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- Kiwa Bio-Tech Products Group Corporation (OTC Bulletin Board: KWBT) announced that revenues for the second quarter of 2007 increased more than 35% over the first quarter of 2007 exceeding $1,872,000 and were 139 times revenues of just $13,351 for the same period in the previous year.
Revenues for the first half of 2007 were $3,256,000 compared to only $24,374 in the first half of 2006. These significant increases are due to the growth of Kiwa's new bio-enhanced feed business.
Review of Second Quarter
Costs of sales were $1,798,905 and $12,545 for the three months ended June 30, 2007 and 2006, respectively. The increase in cost of sales was primarily due to the rapid increase of sales. Gross profit was $73,742 for the three months ended June 30, 2007, representing an average profit margin of 3.9%. The profit margins for bio-fertilizer and bio-enhanced feed were 18.9% and 3.8%, respectively.
Mr. Wei Li, Chairman and CEO of Kiwa, stated, "The significant improvement in revenues reflects the efforts at the 60 distributors in our joint venture, Tianjin Kiwa Feed Co., Ltd. We appreciate the efforts of our team in building this business and we are now focusing on raising the profit margins for bio- enhanced feed products."
Net loss increased by $780,979 or 148.5% to $1,306,893 (including non-cash expenses of $537,164) for the three months ended June 30, 2007, as compared to $525,914 for the three months ended June 30, 2006. This increase resulted from the following factors: (1) increase in gross profit of $72,936; (2) increase in operating expenses of $192,923; (3) increase in interest expenses of $247,233; (4) there was $750 of net loss born as a minority shareholder in a subsidiary in 2007 and no similar loss in 2006; and (5) we recognized $414,509 expenses in connection with urea entrepot trade during the current period.
In July 2007, the Company entered in
|SOURCE Kiwa Bio-Tech Products Group Corporation|
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