Ontario, CA, Dec. 22, 2017 (GLOBE NEWSWIRE) -- Kiwa Bio-Tech Products Group Corporation (OTCQB: KWBT) (“Kiwa Bio-Tech” or the “Company”), a Company promoting harmless agriculture, today announced financial results for the three months ended September 30, 2017.
“For the third quarter of 2017, we have sold and shipped approximately $5.9 million of our fertilizer products, compared to approximately $1.2 million during the same period in 2016,” said Yvonne Wang, CEO of Kiwa Bio-Tech. “The growth suggests that our focus on extending longer term credit to our customers and developing high-quality fertilizer products is resonating well in the market.”
Ms. Wang continued, “Our products have gained an attractive reputation in the agricultural industry and this is translating to an increased customer base and market share. As the Chinese Government is continuing to aggressively promote green environment and implement quality standards and environmentally sensitive policies in the agricultural industry. Kiwa’s biologically organic fertilizer products generally have been shown to be effective in the productivity of crops that are suitable for promoting a green environment. As a result, we expect revenues from our innovative and highly effective fertilizer products will see increasing levels of growth in the future.”
Ms. Wang concluded, “We also had several notable accomplishments during the third quarter. The Company has launched a new subsidiary in Xi’an to expand our business in Northwest China markets. We established a three-part initiative with respect to planting harmless crops, selling green agricultural products, and soil conservation consistent with the standards of the agricultural industry in China. At the end of this quarter, we established the first agricultural experiment and demonstration station to promote our fertilizer products.”
Financial Results for the Third Quarter 2017
We recognize the revenue for the third quarter ending September 30, 2017 was approximately $0.031 million compared to approximately $1.2 million for the three months ended September 30, 2016. The decrease is mainly due to deferral of the recognition of approximately $5.9 million of revenues consistent with US GAAP. We do expect to recognize these revenues in subsequent quarters. The Company’s customers are either agricultural cooperative companies or distributors who then resell the Company’s fertilizer products to individual farmers. We generally receive payment for our products at the end of the approximately 3 to 9 months growing cycle following the harvesting and sale of the resulting crops. For this reason, it is very common to allow credit terms for cooperative companies and distributors consistent with the growing cycle. As a result, the Company is utilizing a conservative approach whereby we are recording sales as deferred revenues and generally recognizing the revenues only after the Company gets paid.
We had deferred revenue for the nine months ended September 30, 2017 of approximately $14.9 million and approximately $10.3 million of deferred cost of goods sold resulting from transactions where we have shipped our products, however all revenue recognition criteria have not yet been met. As of this date, the Company has subsequently collected approximately $8.7 million or 57% of the outstanding deferred revenues reflected in the financial statements as of September 30, 2017.
About Kiwa Bio-Tech Products Group Corporation
Leader in Harmless Agriculture Industry Chain
Kiwa Bio-Tech Products Group Corporation develops, manufactures, distributes, and markets innovative, cost-effective and environmentally safe bio-technological products for agricultural 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.
Kiwa is dedicated to eco-agricultural development and environmental control by developing, producing, and selling bio-technological products with high technology, low-cost, and high productivity to satisfy the growing market demand. Kiwa's development is creating a standardized and ecologically safe agricultural industry chain platform. The Company's development effort is based in China, and has gradually expanded to the international market.
Kiwa uses new bio-technological skills at its core, with organic, ecologically sound, and "green" practices as its theme. The Company strives for customer satisfaction and continued development. Kiwa is dedicated to making safe food, further developing eco-agriculture and upholding a responsibility of contributing to China's agricultural safety, food safety, and a healthy lifestyle. For more information on Kiwa and its products, please refer to the Company's website at www.kiwabiotech.com or the Company filings with the United States Securities and Exchange Commission, available for free at www.sec.gov.
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 U.S. 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.
CONTACT: Kiwa Bio-Tech Products Group Corporation Molly Han email@example.com
Source: Kiwa Bio-Tech Products Group Corporation