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On streetinsider news
https://www.streetinsider.com/Globe+Newswire/Global+Holding+Group+Will+Participate+In+The+Restructuring+Of+Kiwa+Bio-Tech/17718627.html
Not familiar with global holdings group
Xibaokun was announced before for soil remediation
https://www.globenewswire.com/news-release/2020/02/25/1989841/0/en/Kiwa-Bio-Tech-Announces-Agreement-with-Fudan-Science-Park-and-Xibaokun-Agricultural-Technology-Co-Ltd-for-Soil-Remediation-Projects.html
https://www.globenewswire.com/news-release/2020/04/30/2024988/0/en/Kiwa-Bio-Tech-Established-Joint-Venture-to-Address-Ring-fenced-Soil-Remediation-Projects.html
https://www.chinadaily.com.cn/a/202010/16/WS5f88f046a31024ad0ba7efc8.html
Rong Family group was mentioned at Yangling China Ag. Fair previously
“The Rong’s family has a famous brand called "Xiangxian", and has an enormous market network domestically and internationally".
https://www.globenewswire.com/news-release/2019/10/24/1934719/0/en/Kiwa-Bio-Tech-Announces-Participation-at-China-Yangling-Agricultural-Hi-Tech-Fair-Opening-Ceremony.html
"Kiwa will immediately resume the financial reports reporting" but unclear when exactly and how to value KWBT in this new structure of 4 players but as a team, lets hope they can scale up to bigger and better things.
Kiwa Bio-Tech December 2020 Update
Yangling, Shaanxi, Dec. 15, 2020 (GLOBE NEWSWIRE) -- Kiwa Bio-Tech Products Group Corp. (PINK: KWBT) (“Kiwa Bio-Tech” or ‘the Company”), an emerging agricultural company that develops, manufactures and sells bio-fertilizers is pleased to announce that the Global Holding Group will participate in the restructuring of Kiwa Bio-Tech.
Recently, the company and its strategic partner Shaanxi Xibaokun Agricultural Technology Co., Ltd., (“Xibaokun”), and the Global Holding Group have jointly established an industrial fund to promote the development of the new fertilizer industry in China based on the foundation of Kiwa Bio-Tech’s twenty-year biotechnology. They also participated in the Company’s restructuring process and a cooperation agreement was signed after several months’ discussions.
The new fertilizer industry has taken a leading position in the field of agriculture and environmental protection, such as food safety control, soil remediation and treatment, improvement of crop quality, and protection of consumer health. Mr. Shizun Cai, the independent director and co-chairman of Global Holding Group stated that “the corporation is aimed to promote the integration of the new fertilizer industry and environmental protection industry by using the planned industrial funds as well as Kiwa’s state-of-the-art biotechnology. This cooperation will play a huge role in promoting the development of both industries, which have trillion RMB market. The goal of this cooperation is to make full use of the superior resources of all parties and establish a new standard and rule for the operation of this new fertilizer industry.”
Under the terms of the agreement, the planned industrial fund will be used in the Company’s China operation restructuring. The Global Holding Group will hold 49 percent of the restructured Company. Kiwa will immediately resume the financial reports reporting after the restructuring. Along with this restructuring, Kiwa’s sales will be gradually entered into the Global Holding Group's network in China and the previous cooperation between Kiwa and Rong’s Family Group will also be initiated.
https://www.globenewswire.com/news-release/2020/12/15/2145131/0/en/Global-Holding-Group-Will-Participate-In-The-Restructuring-Of-Kiwa-Bio-Tech.html
I see. There could be plenty of M&A in this biofertilizer sector in the years ahead as companies grow in this large market.
we saw Syngenta and Bayer acquisitions of 'microbial' type agricultural companies recently to enter Chinese market, clearly attracted by profit potential.
well, we got PR on cash payment of 2020 convertible notes but no confirmation that was achieved. we can see OS is steady and estimated that the dilution paid the 2019 notes.
yes, covid19 dropped the KWBT sales per the PR and agree improvement can occur post-covid.
I really want an update to regain compliance to remove that worry on too long delinquent to be sure KWBT remains on OTC and hope they keep the direction from 2018 of planning a Nasdaq uplisting.
hoping for the best too and certainly not selling at these levels when we were promised a triple release of financials and potential new sources of financing.
do you have an opinion on this news and if they compete in similar locations to Kiwa Biotech?
https://www.nasdaq.com/articles/chinese-fertilizer-producer-muliang-viagoo-technology-sets-terms-for-%2440-million-nasdaq
if you give me a counterargument to help me believe your view, I would consider it. just stating a scam when I see audited financials from reputable company in new york, photos of business activity at large events and years of reports on their website and further government support with Chinese soil pollution law of 2019, it keeps me interested on what might be possible here. that is why I keep an eye on the china news, I just share my due diligence if I find something I think is of interest. I could not care if people take it seriously or not.
price to sales is a key metric I am looking at.
not having updated financials is very hard now but hoping it gets resolved soon to re-assess the valuation.
news is a smaller part of the assessment and many financial markets react to news.
yes but please make an effort to support your view
We know the convertible debt took us all by shock and hurt shareholders. Some averaged down. I do not recall you highlighting the problem of toxic debt back then. If you are trying to inform the board, please give some context to your bold claims.
The recent news of the Nasdaq listing of a smaller (in sales) Chinese organic fertilizer company appears to contradict your argument.
We need to hear from the company on financials to see what the next chapter holds.
tmonkey. this board is to discuss your view on KWBT with some reasoning and supporting information. it is not an entertainment outlet.
MULG with 12 month sales of 10 million get Nasdaq uplisting.
https://www.nasdaq.com/articles/chinese-fertilizer-producer-muliang-viagoo-technology-sets-terms-for-%2440-million-nasdaq
KWBT 2019 sales of 40 million is a good reference point from now. 2020 will disappoint based on 60% sales guidance given so far but 2021 has a brighter outlook.
Good to see other longs on board.
Latest news was of a Chinese organic fertilizer company uplisting to Nasdaq.
https://www.nasdaq.com/articles/chinese-fertilizer-producer-muliang-viagoo-technology-sets-terms-for-%2440-million-nasdaq
Maybe it signals the sector is at a good moment? Market is big enough.
Not sure why you always focus on China without considering the company within the world's second largest economy or the state of the economy/industry as a whole.
Not all agree with that assessment:
https://www.bloomberg.com/news/articles/2020-12-08/goldman-sachs-to-apply-for-100-ownership-of-china-joint-venture
It seems you are not taking either top-down or bottom-up approach to investing. Feel free to contribute an alternative analysis/reasoning.
Chinese fertilizer producer Muliang Viagoo Technology sets terms for $40 million Nasdaq uplisting
"Muliang Viagoo Technology was founded in 2014 and booked $10 million in sales for the 12 months ended September 30, 2020."
https://www.nasdaq.com/articles/chinese-fertilizer-producer-muliang-viagoo-technology-sets-terms-for-%2440-million-nasdaq
KWBT was expected to have much higher sales over 12 months and CFO once visited Nasdaq office in Hong Kong in 2018.
https://kiwabiotech.com/kiwa/kiwa-bio-tech-chief-financial-officer-visits-nasdaq-office-in-hong-kong-regarding-the-future-up-listing-of-kwbt-common-shares/
Fitch upgrades its China growth forecast for 2021
"Fitch Ratings raised its forecast for China’s GDP to 8% growth next year"
https://www.cnbc.com/2020/12/10/fitch-upgrades-its-china-growth-forecast-for-2021.html
yes, long term can also be huge here
KWBT is still a small company and a growth stock. Market cap for KWBT is too low, which has scale-up potential due to the size of markets being addressed.
If they clarify all the financials and cash management issues and get the planned expansion of the production facility, they could grow much faster but they need to keep a cash buffer and avoid any expensive debt!
The OS has been at the current level for some time but PPS has changed while uncertainty grew due to delinquent status. they got burned in the past from convertible debt and appear keen to avoid it based on PRs in favor of bank lending/new investors.
Resolution to pandemic and any US-China trade disputes, far outside Kiwa's control, may eventually bring back local economy and bank lending for Kiwa Biotech. I was thinking that to China, Kiwa is a US company working on their territory and therefore could the trade dispute impact their interactions there?
Is that why they are planning both a China and a US restructuring, per the August PR? Is the Ontario office open or has only the General counsel changed? There may be more changes but the business can survive with sales and good management. As time passes, we may see a resolution on issues from PRs.
Agree and also...
"Price-to-Sales
Price-to-Sales or P/S is the stock price divided by sales per share. While earnings and book value ratios are generally more appropriate for large companies with positive earnings, the price-to-sales valuation ratio is often used as a comparative price metric for companies that don’t have positive net income - often young companies or those in trouble. Revenue relies less heavily on accounting practices than earnings and book value measures."
https://www.toptal.com/finance/valuation/valuation-ratios
If Kiwa Biotech got things sorted, their business could grow significantly with this train route westwards ; one hour drive of their products to Xi'an and up to 13 days freight train to Europe.
Chinese city launches new China-Europe freight train route
"A new China-Europe freight train route has been launched, linking the city of Ankang in northwest China's Shaanxi Province with Central Asian and European cities.
The first freight train on this route left Ankang Tuesday afternoon, carrying 43 TEUs of goods weighing more than 700 tonnes, including household appliances and natural slate.
The train first arrived in Shaanxi's capital Xi'an, from where it is scheduled to reach Central Asia in eight days and Europe in 13 days via the Chang'an China-Europe freight route.
The Chang'an China-Europe freight train service saw more than 3,400 trips in the first 11 months of this year, almost double the figure for the same period last year. "
http://www.china.org.cn/business/2020-12/09/content_76995174.htm
PBOC’s Yi Lays Out New Priorities to Support China Green Finance
https://www.bloombergquint.com/markets/pboc-s-yi-lays-out-new-priorities-to-support-china-green-finance
"Issuance of notes in Asia whose proceeds are aimed at environmentally friendly projects has dropped about 30% this year, even as green bond sales globally have increased, according to data compiled by Bloomberg. With pledges from countries like China and Japan to become carbon neutral in the coming decades, the focus will be back on green debt in 2021 after a surge in sustainable and social bond sales in 2020 due to the pandemic, said Mervyn Tang, global head of ESG research at Fitch."
https://www.bloomberg.com/news/articles/2020-12-07/asia-s-climate-ambitions-set-to-push-green-bond-sales-higher
China bank loans rise more than expected in November, credit growth eases - Reuters poll
https://www.reuters.com/article/uk-china-economy-loans-poll/china-bank-loans-rise-more-than-expected-in-november-credit-growth-eases-reuters-poll-idUKKBN28J0L4
Asia-Pacific Biological Organic Fertilizers Market Demand
"Asia-Pacific Biological Organic Fertilizers market competition by top manufacturers, with production, price, revenue (value) and market share for each manufacturer; the top players including Kiwa Biotech, Seek Biotechnology Co. Ltd, Qingdao Future Group, Qingdao Hibong Fertilizer Co. Ltd, Jiangsu Hanling Fertlizer Co Ltd, Agri Life Phytopharma Ltd, Bodisen Biotech Inc., Revisoil, amongst others.
Increased Adoption of Organic Farming
According to the Organic Trade Association, about 82% of the households in the United States purchase organic food. The organic food market in India registered a CAGR of 25% in 2018. As per Statista, it is anticipated to reach USD 1.36 billion by 2020. The rise in demand for organic products is booming, not only due to an increase in conscientious consumers, but also due to increasing incomes, along with improved farming practices that make organic yields more robust. As a result, the increasing demand for organic food, worldwide, has increased the area under organic farming, worldwide. Increase land under organic cultivation will drive the organic fertilizer market during the forecast period.
China Dominates the Market
The Asia-Pacific region is majorly influenced by the Chinese market. The Chinese economy is moving toward a green agriculture practice by encouraging the farmers to scale back the use of chemical fertilizers and switch to bio-based and organic alternatives. In this regard, in 2017, China’s Ministry of Agriculture released a pilot plan for fertilizer replacement in around 100 districts of China, which aimed at reducing chemical use fertilizer by at least 20% by 2020. At present, the number of organic fertilizer producers has been growing every year. Some larger fertilizer manufacturers have also stepped into the industry. China has over 300 organic producing enterprises with an annual product output of about half a million metric tons."
https://www.openpr.com/news/2205515/asia-pacific-biological-organic-fertilizers-market-demand
Bio-organic Fertilizer Market to Eyewitness Massive Growth by 2025
https://factorymaintenance.com.au/uncategorized/33083/bio-organic-fertilizer-market-to-eyewitness-massive-growth-by-2025/
They showed photos of their activities and put on their website. Nearly all people there were wearing masks. Pandemic is therefore still lingering there and perhaps keeping sales activity behind schedule. Chinese economy is in recovery mode and hopefully as time progresses this can support Kiwa's recovery too. I hope they have a much stronger Q4.
Short interest appears to have stopped updating on OTC around the same time (08/31/2020).
https://www.otcmarkets.com/stock/KWBT/quote#trade-data
This was soon after the August 25th PR that mentioned restructuring of operations.
Understand we are all shaken up by how long this is taking.
Not much for people to comment on without the company communicating. I noticed the Investors Relations section of the website does NOT currently have the 2019 Year-End Financial Report uploaded.
https://kiwabiotech.com/kiwa/investor-relations/#financial
i.e. why did they not upload the filing from June 1st or was it removed?
https://www.otcmarkets.com/filing/html?id=14191302&guid=oeuqUKuJUTXEGth
Was it an oversight or intentional?
China must transform its agricultural subsidies for people and planet
"Repurposing harmful agricultural subsidies will boost rural economies and promote healthy food production within planetary boundaries"
"Fan Shenggen is Ambassador of the Food and Land Use Coalition, Chair Professor, and Dean of Academy of Global Food Economics and Policy, China Agricultural University, and member of the Global Panel on Agriculture and Food Systems for Nutrition."
https://chinadialogue.net/en/food/china-must-transform-its-agricultural-subsidies-for-people-and-planet/
Kiwa Biotech has links to China Agricultural University through their R&D Center:
https://www.globenewswire.com/news-release/2018/08/20/1553890/0/en/Kiwa-Bio-Tech-Announces-Opening-Of-First-Research-and-Development-Center-In-China.html
Do not think investors need to be accountants to post here.
Experience with financial analysis at some level can count too but not on par with CPA of course. In any case, I put my trust in the sign off from Kiwa's auditor, Friedman LLP (link below) but agree with you the $7m current asset on their books should be clarified. It could be related to all the consolidation to Yangling, some large asset held for sale or discontinued?
"The China Practice Group partners and staff within our New York office possess the technical expertise, cultural knowledge and language skills necessary to successfully serve Chinese businesses of all sizes. Additionally, our Beijing location gives us access to this vibrant market, along with a dedicated staff of audit, tax and advisory services professionals. Together, both offices work seamlessly to provide attentive, partner-driven service. Our China Practice Group consistently ranks among the top U.S. accounting firms serving the China market.
Friedman is consistently ranked as one of the top U.S. accounting firms serving China-based SEC registrant companies by Audit Analytics."
https://www.friedmanllp.com/services/asia-practice/china
We were informed of 60% of expected sales met in August PR due to impact of COVID and latest news from China shows economic recovery. That does not indicate bankruptcy. Shareholders should demand fair market value if a buyout is in the works and most agree that is likely much higher than the current PPS.
A buyout at FMV would likely satisfy shareholders
However, I think 0.1 is too low for a market cap of only $55 million. Below shows market cap estimate of $160 million.
https://seekingalpha.com/instablog/21922151-bioresearch-alert/5452232-two-cent-kwbt-ready-to-soar
$80 - $100 million was mentioned by E. Jolly before.
Company indicated increasing value expectations earlier this year.
https://www.globenewswire.com/news-release/2020/03/30/2008164/0/en/Kiwa-Bio-Tech-Announces-Agreement-with-China-State-Owned-Enterprises-to-Develop-New-Fertilizer-Market-Areas-Including-An-Initial-Order-of-at-Least-Seven-Million-Five-Hundred-Thousa.html
Lets see if their planned release of financials show a FMV closer to the above, which would be around 0.2 per share
correct me if I am wrong...
but they increased the restricted shares considerably in recent months. Does you scenario imply they would hurt themselves?
We need to know if Ontario office is still open for business.
The August PR addressed to shareholders mentioned Chinese investors in common stock, among other things.
Remember this sentence from CEO letter in March
"Facing China's nearly 35 billion USD new fertilizer market in the future, as well as nearly trillion USD soil remediation market, Kiwa will be based on the existing business to rapidly expand fertilizer market share, to obtain soil remediation market share, and of course show our shareholders a great performance. "
https://www.globenewswire.com/news-release/2020/03/09/1996966/0/en/Kiwa-Bio-Tech-CEO-Letter-to-Shareholder-and-Stakeholders.html
Maybe Rob Diener will be replaced by the restructuring or maybe a much bigger change is coming? Company is addressing markets that are growing and long term investors have been following for that 'huge potential'. If a buyout is in play, there should be some fair valuation agreed with all shareholders and/or options provided to realize that promised great performance.
Recent history of Kiwa Biotech at agricultural exhibitions
2018: 25th CAF
"At CAF, Kiwa Bio-Tech obtained an extremely high degree of attention from the following:"
...see full list on link but industry included:
"DuPont, Bayer, Pioneer, Syngenta and other internationally renowned seed industry representatives"
http://launchpadir.net/learn-about-kiwa-biotech
“Our focus at Kiwa is to continue in our pursuit of providing superior technologies for the agricultural industry in China and throughout the world,” added Mr. Li, the founder of Company.
https://www.globenewswire.com/news-release/2018/11/08/1647948/0/en/Kiwa-Bio-Tech-Receives-Strong-Government-Interest-For-Its-Soil-Remediation-Technology-at-CAF.html
2019: 26th CAF
https://www.globenewswire.com/news-release/2019/10/24/1934719/0/en/Kiwa-Bio-Tech-Announces-Participation-at-China-Yangling-Agricultural-Hi-Tech-Fair-Opening-Ceremony.html
2020: No reported attendance at 27th CAF. Company opted for 'National 4A agricultural professional exhibition' instead 'aimed at strengthening production and demand docking, and promoting transformation and development.'
https://www.globenewswire.com/news-release/2020/11/10/2123538/0/en/Kiwa-Bio-Tech-Participated-In-The-22nd-National-Fertilizer-Fair.html
Was company avoiding new entrants to microbial fertilizer market in China that might have been at CAF or going for help on the production capacity expansion plan?
https://www.globenewswire.com/news-release/2019/12/03/1955368/0/en/Kiwa-Bio-Tech-Announces-Expansion-of-Fertilizer-Production-Capacity-to-300-000-Ton-Per-Year.html
please share your evidence of a bankruptcy filing
Aug 25:
Company advised of sales running at 60% of pre-covid expected sales level but assured shareholders of their fiduciary duty
"The Company currently plans to release its first, second, and third quarter quarterly reports at the same time."
https://www.globenewswire.com/news-release/2020/08/25/2083072/0/en/KIWA-BIO-TECH-PRODUCTS-GROUP-CORP-August-2020-UPDATE.html
Nov 10:
Company appeared confident on future of Kiwa Biotech on November 10th at a national fertilizer fair:
"Kiwa Bio-Tech’s KMF core microbial technology will give impetus to the development of China’s new fertilizer industry."
Dec 1:
Competitors are on the horizon in pursuit of profit in this new 'microbial' fertilizer industry
https://www.prnewswire.com/news-releases/sound-agriculture-is-partnering-with-syngenta-to-reduce-nitrogen-use-in-china-301182851.html
Grain production in China to increase 15% over next 10 years
According to "Wang Hongguang, executive director of Peking University's China Center for Strategic Studies"
"New technologies should be developed to further improve the per-hectare yield of major crops, such as rice, wheat, corn and soybeans, and farmland restoration should be conducted to increase total yield, he said. Other forms of food production, including ocean fishing, can also be promoted to reduce reliance on land farming, he said."
"Improving food security has been listed as a major task in a proposed blueprint released last month for China's economic and social development over the next five years and beyond.
Supportive policies will include protecting farmland, developing infrastructure for water resources and making better use of science and technology, according to the blueprint."
http://global.chinadaily.com.cn/a/202012/03/WS5fc83a74a31024ad0ba99779.html
Sounds encouraging for manufacturers of improved fertilizer and soil remediation technology and possibly even aquaculture in the Chinese markets.
China News: Factory activity growth soars
"Factory activity grew at its fastest pace in a decade in November, indicating that economic momentum in the world's second-largest economy is returning to pre-pandemic levels, experts said on Tuesday."
"Experts expect the Chinese economy to post a growth of close to 6 percent during the last quarter of the year. The growth may further rise to double digits in the first three months of next year, thanks to a low comparison base and demand-side recovery for consumption and manufacturing investment, they said."
https://global.chinadaily.com.cn/a/202012/02/WS5fc6de6aa31024ad0ba9931a.html
Sound Agriculture is Partnering with Syngenta to Reduce Nitrogen Use in China
"EMERYVILLE, Calif., Dec. 1, 2020 /PRNewswire/ -- Sound Agriculture and Syngenta have formed a strategic partnership to explore opportunities to decrease nitrogen fertilizer use in China by up to 30% while maintaining on-farm productivity. Sound Agriculture's flagship product SOURCE™ stimulates microbes in the soil to provide access to more nitrogen and phosphorus at the root zone, reducing the need for nitrogen fertilizer."
"SOURCE enhances the natural systems that exist in the field, harnessing the innate ability of the plant and soil to perform better," said Adam Litle, CEO of Sound Agriculture. "We have seen great results in the U.S. and are thrilled to work with Syngenta to extend into China and make a significant impact on the health of our planet."
https://www.prnewswire.com/news-releases/sound-agriculture-is-partnering-with-syngenta-to-reduce-nitrogen-use-in-china-301182851.html
US trade deal sees expansion of farm produce exports, says official
some progress on that front...
"With China recovering from the pandemic in an exceptional manner, we have seen the quick recovery of the Chinese economy and its consumption market," said Liu Jun, president of Cargill Inc China, a Minnesota-based agricultural conglomerate.
Immense growth potential exists in China for various agricultural products, he said. With its huge population, demand is rising and constantly evolving."
http://global.chinadaily.com.cn/a/202012/01/WS5fc58410a31024ad0ba98f15.html
China: Agricultural fair witnesses trade volume hit USD6.35b
https://menafn.com/1101214318/China-Agricultural-fair-witnesses-trade-volume-hit-USD635b&source=28
Unsure if earlier clause may be relevant to KWBT
We know COVID affected Kiwa Biotech earlier this year. We were assured of a plan to release 3 filings in August PR. It is unknown if this plan was put in writing and sent to OTC and agreed before releasing that PR.
"OTC Markets Group will review each company’s unique circumstances and may provide additional relief based on a
reasonable written plan of compliance on a case-by-case basis."
How long is reasonable is another guess!
https://www.otcmarkets.com/files/Relief_Period_for_OTCQX_and_OTCQB_Companies_Adversely_Impacted_by_COVID-19_Expires_June_30_2020.pdf
Global investors see China stocks bull run lasting well into 2021
"“China will deliver one of the strongest and fastest macro recoveries in 2021 among major economies globally,” Goldman Sachs said in its China outlook report, forecasting a 20% rebound in Chinese corporate profits, and staying overweight Chinese equities."
"Global fund giants including BlackRock, JPMorgan and Vanguard have already boosted their exposure to Chinese equities this year, according to Citic Securities, and foreign inflows will likely accelerate further."
https://www.reuters.com/article/china-stock-outlook/global-investors-see-china-stocks-bull-run-lasting-well-into-2021-idUSL4N2IG1U4
China’s economic recovery accelerated in November
“Both supply and demand are booming,” said Li Chao, chief economist at Zheshang Securities.
https://www.scmp.com/economy/china-economy/article/3111916/china-unlikely-ease-stimulus-just-yet-even-economic-recovery
China says manufacturing activity expands for ninth straight month as official PMI beat expectations
https://www.cnbc.com/2020/11/30/economy-china-releases-official-manufacturing-pmi-for-november-2020.html