According to my estimation and calculation, KIWA will have at least 20.000.000 i$ in revenue with excellent net margin in 2017! And I really believe, this is a very conservative estimation!
Why?
1)
In Nocember 2016, KIWA has received the sales permit for fertilizers by the Chinese Government. With that the have achieved around 7.000.000 $ revenue only in 4th quarter of 2106. In the first three quarters of 2016, they "only" had around 2.000.000 $ in revenues. So they are a lot of possibilities to increase the turnover of first three quarters this year and of course also in the 4th quarter of 2017 with the sales permit!
2)
They are going to establish a new product line in this spring season!
3)
They are expanding their business to new Chinese provinces like Shenzhen, Guandong, Gu'an and Hebei! These are all very big and important Chinese provinces!
4)
They will acquire two factories for production until June! This means, they have a huge planning for their required capacities. (if they had used the whole capacity of Tangshan Deruifeng, which they originally planned to acquire, this would have created revenues of 100.000.000 $)
5)
They have no more sales agent, but make the major business through wholly owned subsidiaries, like KIWA Bejing. This will also result in higher margins!
6)
They agreed with "Chuon Japan" to integrate each other's microbial technology. Chuon is specialized in soil remediation, whereas Mr. Li, the Chairman of KIWA has excellent relation to Government authorities. Recently, he had a meeting with the Chairman of "China Foundation of Desertification Control". If KIWA can step into this program, this reflects a multi billion opportunity!
7)
And Bio Fertilizers are the major trend in Chinese agriculture in the next years, supported by multi billion dollars by the Chinese Government! The demand for an increasing population in the biggest economy is exploding! And KIWA with their outstanding, patented products can be for sure a major player in that process
AI
