BEIJING and CLAREMONT, Calif., Nov. 7 /Xinhua-PRNewswire-FirstCall/ -- Kiwa Bio-Tech Products Group Corporation (OTC Bulletin Board: KWBT) announced that revenues for the first nine months of 2007 were $6,214,712 an increase of 567% over $930,442 in the first nine months of 2006.
Revenues for the third quarter of 2007 were $2,957,972 an increase of 226% compared to $906,068 in the third quarter of 2006. These significant increases are due to the growth of Kiwa's new bio-enhanced feed business, reaching revenues of $2.85 million for the quarter. Revenues of bio-fertilizer products were just over $100,000 and reflect the re-opening of the Shandong factory at the end of the period.
Review of Third Quarter
Costs of sales were $2,718,712 and $852,885 for the three months ended September 30, 2007 and 2006, respectively. The increase in cost of sales was primarily due to the rapid increase of sales. Gross profit was $239,260 for the three months ended September 30, 2007, representing an average profit margin of 8.1%. The profit margins for bio-fertilizer and bio-enhanced feed were 60% and 6.2%, respectively.
Net loss decreased by 6% to $598,521 (including non-cash expenses of $322,023) for the three-month period ended September 30, 2007 compared to $636,278 for the three months ended September 30, 2006. This decrease resulted from the following factors: (1) a significant increase in gross profit of $186,077; (2) a increase in operating expenses of $31,796; (3) an increase in interest expenses of $100,959; and (4) a $15,699 of profit shared with a minority shareholder in a subsidiary in 2007 and was only $134 in 2006
Please refer to documents filed today with the Securities and Exchange Commission for additional information on the results for the third quarter and first nine months of 2007.
Mr. Wei Li, Chairman and CEO of Kiwa, stated, "Our growth reflects the
significant growth of our joint venture located in Wuqing District in
|SOURCE Kiwa Bio-Tech Products Group Corporation|
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