Kiwa Bio-Tech Products Group Corp (fka KWBT)

[hugh_jackoman]

Yvonne Wang interview.

http://www.equities.com/news/equities-q-a-with-bio-tech-products-group-kwbt-on-recent-acquisition-and-2017-battle-plan

Equities had a great Q&A with Kiwa Bio-Tech Products Group (KWBT) talking about their recent acquisition, management team and goals for 2016 and beyond.

Equities: Can you provide us with a brief overview of your company and its operations.

Kiwa Bio: KiwaBio-Tech Products Group Corp. has operated in the bio-agricultural space for 16 years. Receiving technical support from China Agricultural University and the Chinese Academy of Agricultural Sciences, the Company has developedadeep portfolio that addresses four specific markets. Additionally, the Company has begun cooperating with a Japanese Bio-Fermentation Company. We expect the collaboration will result in additional products that we can distribute into the Chinese market.

Equities:What are the growth prospects in the your target markets? How do you plan to capitalize on them?

Kiwa Bio:The Chinese Government has recently stepped up its oversight on soil preservation and management. Most recently, the Chinese State Council issued a national policy “Soil Pollution Prevention and Control Action Plan” (or “Soil Ten Plan”), the plan calls for a transition from chemical based fertilizer to bio-based fertilizer for 30% of the fertilizer market, this represents a 210 billion RMB (approximately $31 billion USD) market opportunity being created over the next 10 years.

We intend to capitalize on this opportunity by continuing to develop and sell our products into the market and strategically grow capacity to meet the needs of our customers.

Equities:Can you discuss your company's competitive edge or strategic advantages over your competitors?

Kiwa Bio: Kiwa is an industry-leading innovator in its bio-fertilizer products and technology. The company has established a close working relationship with national sales companies in China to for product sales.

Kiwa has the following advantages:

Intellectual Property: We aggressively protect the developments and intellectual property we create. This creates our advantage. We work closely with two of China's largest and most high-end agricultural research institutions - China Agricultural University (CAU) and Chinese Academy of Agricultural Sciences (CAAS).We also cooperate with one of best Japanese Bio-fermentation Companies for developing and introducing new products for our portfolio. This cooperation makes the company an industry-leading innovator both domestically and internationally.

Sales Channel Advantage:We work with China's largest fertilizer state enterprises - Supply and Marketing Cooperatives and China National Agricultural Means of Production Group Corporation (Sino-agri); this keeps our selling costs reasonable while giving us access to many markets.

Price Advantage:As Kiwa owns its technology patents,production cost is managed tightly and gives the company a significant competitive advantage in the market.

Equities:Tell us about your background, as well as other key members of the management.

Kiwa:I have been with Kiwa for more than 15 years. Starting at an entry-level position in the company to now being CEO. I know our historical operations and our development goals better than anyone else. I think about how I can help our Chinese population of 1.3 billion people, nearly 20% of the world population, get safe healthy food for the long term.My goal is to have 3 billion acres of cultivated land, nearly 7% of the cultivated land in the world,to be free from the chemicals that are currently used. I hope through my efforts to make the world’s most populated country eliminate harmful environmental pollution and food safety hazards!

Most of our directors and management are from top research institutions, such as China Agriculture University (CAU) and China Academy of Agricultural Sciences (CAAS). They have abundant experience and knowledge in the bio-fertilizer field.

Equities: Are there any highlights, significant achievements or developments that you'd like to discuss?

Kiwa:Kiwa recently held several meetings with the Chinese de-certification control foundation (CFDC) and has begun to detect and analyze the issue of saline soil. This opportunity creates a new market for us apart from the agricultural space. Development of biological products for saline governance programs to provide the core product to the national land management programs.

Equities: What are a few milestones or goals over the next 12 months that the investment community should look out for?

Kiwa: I look forward to informing investors about our sales growth as we take advantage of growing acceptance of our products in the Chinese market.Kiwa plans to begin trading on the OTCQB market and ultimately move to the Nasdaq at the appropriate time. Kiwa will develop its new product line in the first half of 2017 which will dramatically expand our customer base and market share.

Equities:Can you elaborate on the acquisition of Tangshan Deruifeng Technology Co., Ltd. and tell us what this means for Kiwa’s business model?

Kiwa: Company management believes that Deruifeng adds significant resources and experience in the development and marketing of fertilizers in China. Over the past few years, Deruifeng has been one of the principal OEM manufacturers for Kiwa’s products. This acquisition plays a strategic role in Kiwa’s development in the rapidly growing fertilizer market in China. By acquisition of a majority interest in Deruifeng, Kiwa is able to integrate and streamline its supply chain and increase its production capacity. This should result in the upgrading of product quality, while achieving significant cost reduction and broadening the range of Kiwa’s products.The acquisition increases the manufacturing capacity of Kiwa by 350,000 metric tons annually – which at full capacity represents over $100,000,000 in revenue. Kiwa is now poised to participate in the transition plan instituted by the Chinese Government to support bio-based fertilizers as opposed to traditional chemical based fertilizers.