CLAREMONT, Calif., May 14, 2007 (PRIME NEWSWIRE) -- Kiwa Bio-Tech Products Group Corporation (OTCBB:KWBT) announced that revenues increased 124% for the three months ended March 31, 2007 compared to the same quarter in 2006, as reflected in its 1st quarter financial statements filed with the SEC.
Net sales for the three months ended March 31, 2007 were approximately $1.4 million, representing a 124.6 fold increase as compared with the first quarter of 2006. The significant increase is mainly due to the expansion of Kiwa's business into new segments. After setting up Tianjin KIWA Feed Co., Ltd. in July 2006, the Company has expanded into the bio-enhanced feed business, which generated significant revenue. At the same time, gross profit was about $140,000, representing an average gross profit margin of 10%. The net loss was $639,259 (including non-cash expenses of $251,890) for the three months ended March 31, 2007.
As of March 31, 2007, the Company's total assets were approximately $4.29 million. The current ratio was 0.99:1.
When giving comments on the Company's operating results and financial condition, Mr. Wei Li, the Board Chairman and CEO of Kiwa stated: "We made steady progress on both bio-fertilizer and bio-feed segments in the first quarter of 2007. We will keep making efforts on exploring these markets, increasing sales revenue, developing new products and controlling operating expenses. We believe the Company's operating results and financial condition will be further improved in the next quarter of 2007."
The Company timely submitted its 10-QSB report with the SEC on March 14, 2007. However, due to the incorrect filing of documents by another corporation, the Company's 10-QSB report may not be available for viewing at the SEC web site for several days. The 10-QSB filed by Tintic Gold Mining Company on May 11, 2007 and posted on Kiwa's location on Edgar is not Kiwa's 10-QSB. Tintic Gold Mining Company was formerly a subsidiary of the Company, but currently has no legal relationship to the Company. A copy of the Company's 10-QSB as filed with the SEC can be viewed at the Company's website at www.kiwabiotech.com.
About Kiwa Bio-Tech Products Group Corporation
The Company develops, manufactures, distributes and markets innovative, cost-effective, and environmentally safe bio-technological products for agricultural and natural resources and environmental conservation. The Company'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. For more information about the Company, please visit the Company's website at 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.