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Goldman Sachs says Asia is ‘best positioned’ for economic recovery
https://www.cnbc.com/2020/10/06/goldman-sachs-says-asia-is-best-positioned-for-economic-recovery.html
Refer to recent post 34988 for some assurance
"Currently, we shipped out 45,000 tons. Affected by funding issue, the third quarter shipment plan is expected to be completed before the end of October."
This does not sound like a company going bankrupt. The way I see it is if they wanted cash urgently, they could convert some of the commercial paper with a local bank even at poor terms. In the meantime, they can hold out for the better terms without interfering with company operations. 45k tonnes in Q3 is lower than expected apparently but still should be 10 to 15 million USD in sales. The message, presumably from Gabby, suggests they are trying to achieve the original planned sales in October i.e. a month late.
Now the story here is that the company basically expanded markets too fast late last year rather than paying off the convertible notes. The cash flow and balance sheet are being turned around now. The too rapid expansion hurt shareholders like me but I believe that hurt the management too. I averaged down since I have been in KWBT since 2009. I am obviously down more again but I can wait for the next PR and filings.
We cannot see the detail on the ground of course but I am assuming a level of self-preservation that led to them choosing excellent markets and getting this company off the ground over the past decade with extensive links across China.
yes, some chemical fertilizer companies must see the writing on the wall when it comes to the soil pollution law in China.
This means they know the markets for their products will shrink by law.
So what can they do? Diversify to biofertilizer?
Cheers. Am holding. Waiting for next company update and filings
We need confident investors in KWBT
At this stage with the amount of low confidence shown, I think a knowledgeable investor in the agricultural industry taking a stake in Kiwa Biotech would be positive. Ultimately, we want some institutional investors on board to follow suit.
The last time they updated to the world was late August (globe news wire)
https://www.globenewswire.com/news-release/2020/08/25/2083072/0/en/KIWA-BIO-TECH-PRODUCTS-GROUP-CORP-August-2020-UPDATE.html
It would appear the conversions are done but we did not get confirmation.
past calculations suggested dilution covered 2019 notes
2020 notes already matured but the unrestricted part of OS has been stable, certainly not enough to cover the notes. The April 8th PR indicated these were to be paid in cash and so this is consistent.
Dilution from "Chinese investors" per the August PR is yet to be confirmed also. We just saw 25million increase in restricted shares last Friday. This may or may not be for that purpose.
Lots of interest in Kiwa Biotech at CAF 2018
"DuPont, Bayer, Pioneer, Syngenta and other internationally renowned seed industry representatives, visited the Kiwa’s headquarter in Yangling."
https://kiwabiotech.com/kiwa/kiwa-bio-tech-achieved-important-milestone-in-the-first-appearance-at-caf/
Thanks for confirming.
It seems the IR for Kiwa Biotech are becoming more responsive to shareholders. Anyone else received such a mail?
The email speaks of selling shares to other companies in the same industry. I assume these would be considered knowledgeable investors and the shares are for KWBT in the US market. Company HQ is in the US. Service providers could be auditor and investor relations. Hopefully, they will find a way to increase visibility for Kiwa Biotech.
"increase sales and delivery opportunities" is not just for revenue. Delivery meaning expansion of market distribution? ecommerce?
I am still optimistic that KWBT will get through this.
You are probably right.
Think about becoming a mod for KWBT here!
Lets hear if that poster comments on that. Nobody else has independently confirmed such a mail.
Hopefully Q3 sales will be better anyway i.e. near expected target.
What do you think of the increase in restricted shares on Friday? It appears two possibilities exist: employee compensation or setting aside a block for a sale to "Chinese investors".
Any thoughts on strength of cash flow position as we wait for November filings? i.e. could shopping around for best bank to handle commercial notes take so long since last August PR?
Here is a future trend...
Agricultural Microbials Market To Observe Exponential Growth By 2020-2027
https://www.openpr.com/news/2149007/agricultural-microbials-market-to-observe-exponential-growth
[Kiwa Biotech not mentioned unfortunately but I am just interested in the title!]
If Kiwa Biotech competitors want to buy KWBT stock just after the current Chinese festival, I consider that would be a vote of confidence for KWBT. We need to see the terms of that buy. I am starting to think the recent 25m new restricted shares belonging to the company might have been obtained for this sale to them.
But that's just my take.
"the Company plans to sell some of its shares to other companies which in the same industry in China"
Thanks for posting
1. In about 2 weeks, they should get some funding from sales to "Chinese investors":
"the Company plans to sell some of its shares to other companies which in the same industry in China"
Company can therefore survive the short term funding gap. Unclear if they are selling some of the newly acquired (25million) restricted shares or issuing new shares.
2. Three to four weeks later, we expect the filings for Q1 to Q3. 60% of sales target in Q3 is disappointing but PPS is already down and not recognizing the sales levels.
3. Uncertainties are the form of "reorganize the company's existing structure" and "adjusting KIWA's service providers in the United States".
4. Notes discounting issue expected to be resolved by the following month.
The plus side is employees would only accept shares if they felt they would become valuable. Company is becoming properly aligned with shareholders again, as they were before the convertible debt fiasco. It is a sign perhaps that the convertible story is over but confirmation still needed. If the 25m shares were obtained at current low prices, they got a bargain for themselves far below fair value. The downside is some more dilution but at least they are restricted for the longer term view. Given they have commercial notes from revenue, it is possible they are just holding out for best funding conditions rather than being complete without cash.
To be part of the August PR to shareholders, the 'Chinese investors' point would be need to be much more significant and hopefully involving funding with equity approaching fair value to be positive for current shareholders. We need to see more funding news.
As a mod, your post was unclear
1. you stated a visit to Yangling with no detail if you visited the company or just walked down the road.
2. you informed us of your large position but we can state the investment thesis without the position size. There is a stop sign now and considerable uncertainty on financing.
People do not need to follow an investment based upon size and ability to travel there without any feedback on the visit.I hope you can appreciate your post is leading to questions. I know you have been a poster before the large drop in KWBT and are familiar with the company for years. Long term investors have been hurt already, unless they averaged down as we have. It did not work out well for those without enough to average down.
In any case, I hope you are right that funding will arrive in due course and they manage to achieve their annual targets. You seem to know most on when we will get an update.
I understand that reduced sales earlier but for the bank funding and cash squeeze, they said it was some sort of FX admin/discount policy/complexity of bank operations that I do not understand or appreciate with the time that has passed.
I think economy is running ahead now judging by media, so I cannot see how covid19 can cause the bank funding delay. The media suggests government is putting pressure on banks to lend to SMEs and Kiwa is in a strategic area for them too and in fact fertilizers are classified as essential service.
https://www.bloomberg.com/opinion/articles/2020-10-02/china-is-winning-the-coronavirus-economy-recovery-race
https://www.wsj.com/articles/chinas-economic-rebound-picks-up-pace-11601445162
Presumably, this Chinese moon holiday can close the banks if it is a big enough festival. If that update you had (from Gabby?) was correct with sales figures of about 45k tonnes (remembering annual target is 200k tonnes), this could be $10-15million in sales. So if that is coming in as collateral in commercial notes, why would a bank not complete the lending, particularly after waiting an additional month since the August PR?
I just hope the funding comes in before serious damage is done to operations. As stated, I am holding regardless of the delay and believe in the business potential if they survive this cash crunch.
Agreed.
I am glad to see the economic and market developments and if all is about to be resolved, great but I am certainly not confident with delays upon delays with the cash flow needed to keep the company running. Not sure if this is covid-19 since banks are being encouraged to lend and company wants to get away from toxic notes. It is hard to understand what the problem or red tape is.
I will not post until after the update on cash flow or the filings.
Disappointing you did not give us anything specific after stating you visited Yangling recently.
I have never been to China and interested in your eye witness perspective of things in Shaanxi with your confidence in the company. Otherwise, I do not think investors can consider your post to contain anything to go by and which comes when the PPS is near bottom. For me that is a warning to be cautious of your post on your visit.
I posted references to filings, PRs, news articles, etc. to support the investment thesis that make sense to me (e.g. https://www.futuredirections.org.au/publication/soil-carbon-restoration-can-biology-do-the-job-part-three/). I am invested here based on past proven growing revenue trend in important growing markets and PRs that suggest positive developments in the future in huge markets. In addition, the PPS is now deeply undervalued by historical trends.
With respect, Chinese Moon holiday may apply locally but the OTC stock market is open and KWBT has been tanking. We have been waiting all year to hear on a resolution and need specific updates on cash flow and past convertible debt (no follow up on April 8th PR with regards to 2020 notes was given). Website issues are low down on the priority list compared to these points. I will be holding my position past the filings release and can take multi-year perspectives but I think management should inform us as soon as there is progress made. If they were not delinquent, I assume they would need to update within 4 business days. I have no idea if they need to do that when delinquent but I would hope they could continue to do so for shareholders. Otherwise, it seems they are currently without cash despite the August PR.
Shaanxi province also has China Green Agriculture and the stock CGA is also languishing at lows.
Any thoughts on the competition with Kiwa Biotech?
Both the ADB news and the UBS view on the upcoming 5-year plan for China can be considered positive for KWBT but we need to see follow-up deals between Kiwa Biotech and agencies benefiting from the level of government support in Kiwa Biotech's markets.
We saw one large deal in Q2 with a China state-owned enterprise for biofertilizer markets. I hope we see more of such deals, particularly in the soil remediation space using the joint venture announced at the end of April.
UBS: What to expect from China's 14th Five-Year Plan
Environmental protection and green economy
"China should be able to successfully achieve most of its commitments in the 13th FYP. With its persistent long-term ambition of developing the green economy, we expect China to set a higher standard of environmental protection and pollution emission in the new FYP, including 18% for non-fossil energy share in total energy consumption (vs 15.3% in 2019 and 15% target set for 2020), further reduction of energy use per unit of GDP and CO2 and SO2 emission, higher share of days with good air quality, among others. Demands for related equipment, services and investment are likely to continue growing at a faster pace. During 2016-2019, China's FAI in the environmental protection sector enjoyed a much higher average annual growth of 36% than others. We expect sector FAI to double the investment size from 2019 to over 1.5 trillion yuan by 2025."
https://news.cgtn.com/news/2020-09-25/UBS-What-to-expect-from-China-s-14th-Five-Year-Plan--U4WJo9IoWA/index.html
Note: FAI = Fixed Asset Investment
Asian Development Bank approves US $100m loan to improve River Basin in Yunnan, China
"ADB will finance integrated water pollution management, including innovations such as distributed wastewater management systems with information technology for low-cost operation and management; garbage facilities with a shorter processing cycle, smaller floor space, and maximum volume reduction. It will also pilot eco-villages with community participation; new types of artificial wetlands; quantifiable soil and water conservation model; low-emission agriculture; river protection with innovative information technology and institutional development; horizontal eco-compensation mechanisms; and an eco-compensation fund."
"Total project cost is US $234.61m, of which US $134.61m is provided by the Chinese government. The project is expected to be completed by June 2026."
https://constructionreviewonline.com/2020/10/adb-approves-us-100m-to-improve-water-resources-of-river-basin-in-yunnan-china/
you need to click many of the links from the main page that does load.
it shows an error then.
Hope we get to hear something as soon as possible.
The main points are resolving the cash squeeze with new financing and updating on the elimination of convertible debt.
I see there is a photo on the "About Kiwa" webpage in the Chinese version of the website taken with "YOUKU".
Did you visit there and get any impression? Appreciate any comments such as your view on the coming 12 months. Given the size of the place, I assume this facility will require lots of new staff when it is ready.
Do you know if the English and Chinese versions contain the same information or is there more in the Chinese version?
Translating the Chinese version gives some interesting material that I did not see before, from recollection. Below is the google translated R&D page, remembering the "Kantan" or "Kangtan" is "Kiwa":
"R & D team
Kangtan Biotechnology Group has strong technical research and development capabilities:
Kangtan First Agricultural University Biotechnology R&D Center
Microbial Fertilizer R&D Team of Chinese Academy of Agricultural Sciences
?In 2006, in close cooperation with China Agricultural University, on the basis of the Institute of Biotechnology of China Agricultural University, we established the Kangtan-Nongda Biotechnology R&D Center. The R&D center is responsible for the technology development and product planning of Kangtan Biotechnology Group.
?In 2015, it established a strategic cooperative relationship with the Chinese Academy of Agricultural Sciences, and conducted in-depth cooperation on the issue of "how to make full use of the technical strength of the Chinese Academy of Agricultural Sciences' microbial application research to enhance the product development strength of Kantan Group". In particular, the addition of Mr. Song Yonglin, a crop nutrition and biological fertilizer expert from the Chinese Academy of Agricultural Sciences, brings the most advanced biological fertilizer research capabilities and cutting-edge information of the Chinese Academy of Agricultural Sciences into the Kantan R&D system, which greatly improves Kantan’s overall technology. Level.
Core Technology
Core technology-Kangtan patented strain: compound increasing production strain
A variety of high-efficiency microbial strains selected from the plant body and rhizosphere are compounded in a specific ratio.
Principle of action: Through the colonization, reproduction and transfer of microbial functional strains in the root surface, rhizosphere and body of the crop, it can effectively regulate the microbial composition of the roots and the body of the crop, increase the number of beneficial microorganisms, inhibit harmful bacteria, and effectively remove insoluble or insoluble soil The potassium and phosphorus of the plant are converted into available potassium and available phosphorus directly absorbed by crops, and it has a strong nitrogen fixation effect, which improves the absorption and utilization of soil nutrients. At the same time, it can produce a variety of physiologically active substances, enhance crop resistance and stress resistance, promote crop growth, increase yield, improve quality, and mature earlier. It can reduce the use of chemical fertilizers and pesticides, and reduce the residual pollution of harmful substances.
Main functions of Kangtan patented compound increasing bacteria
Accelerate the decomposition of organic matter and provide "power" for crop production or conversion of quick-acting nutrients.
Activate the soil and improve fertilizer efficiency. It can release soluble phosphorus and potassium elements and trace elements such as calcium, sulfur, magnesium, iron, zinc, molybdenum, and manganese from the soil.
Improve the soil supply environment. The exopolysaccharide overflowed by the activated bacteria in the fertilizer is the binder of the soil aggregate structure, which can loosen the soil, improve the water and fertilizer capacity, increase the soil organic matter, and activate the potential nutrients in the soil.
Increase crop resistance and inhibit soil-borne diseases. After reproducing in the soil, it secretes plant growth stimulators and a variety of enzymes to enhance the resistance of crops to some diseases; it also inhibits the growth of other pathogens. Promoting the proliferation of beneficial microorganisms in the rhizosphere of crops can significantly reduce the infection of soil-borne diseases and reduce the disease index of continuous crops. Continuous application can greatly alleviate continuous cropping obstacles.
The effect of KMF biotechnology on crop growth
1. Improve soil and fertility: rapidly increase soil organic matter content, improve soil aggregate structure, enhance soil water and fertilizer retention capacity and soil aeration and other physical and chemical properties; have the function of fixing nitrogen, dissolving phosphorus and potassium, activating soil nutrients, and reducing fertilizer use , Improve fertilizer utilization.
2. Comprehensive nutrients and long-lasting fertilizer effects: High-quality organic raw materials continue to provide nutrients for crops under the decomposing action of abundant beneficial microorganisms. Natural growth-promoting substances such as amino acids and plant stimulants produced in the metabolic process can promote the germination, rooting and strong seedlings of crops, and increase the survival rate.
3. Prevention of disease and adversity and prevention of repeated cropping: The rich beneficial microorganisms can rapidly multiply and occupy the space of the rhizosphere, competing with harmful microorganisms for living space in the soil; at the same time, it can produce a variety of natural growth-promoting substances and prevent pests and diseases during the metabolic process. Physiologically active substance; can effectively inhibit the growth of plant pathogenic bacteria, inhibit nematodes, prevent cropping diseases and root diseases, thereby reducing the amount of pesticides and improving crop disease prevention, freezing resistance, drought resistance, and waterlogging resistance.
4. Naturally harmless, increase production and improve quality: use natural pure plant-derived organic raw materials to produce, no pollution, no residue, non-toxic and harmless to humans and animals; it can degrade heavy metals and pesticide residues in the soil, increase the output of agricultural products, and improve the quality of agricultural products .
The role of KMF biotechnology in soil management
1. The principle of KMF biotechnology to improve acidified and compacted soil:
Superphosphate, ammonium sulfate, ammonium chloride, etc. are all biologically acidic fertilizers, that is, after plants absorb the nutrient segregants in the fertilizer, hydrogen ions in the soil increase, which easily causes soil acidification. During the propagation of the KMF compound microbial flora, a large number of biological enzymes are decomposed, which can break the hydrogen ions adsorbed by soil colloids, thereby reducing the formation of acidic substances and reducing soil acidity. It can also convert organic matter into humus and increase the content of soil humus. Humus has moderate cohesiveness, which can make clay loose and sandy soil cohesive. It is a good cementing agent for forming agglomerated structure. At the same time, the bacterial secretion can dissolve the phosphate in the soil and release the phosphorus. At the same time, it also releases potassium and trace element cations to restore the aggregate structure in the form of bond bridges and eliminate soil compaction.
2. The principle of KMF compound microbial flora transformation and degradation of pesticide residues:
Pesticide residues are all organic compounds, and the transforming and decomposing bacteria contained in the KMF composite microbial flora can absorb these organic compounds into the body by inducing adsorption, and then undergo a series of physiological and biochemical reactions under the action of various enzymes. , And finally completely decompose pesticides into non-toxic compounds with smaller molecular weight.
3. The principle of KMF compound microbial flora transformation and degradation of heavy metals:
The first is the biosorption and enrichment of heavy metals. The heavy metal degrading bacteria contained in the flora can adsorb heavy metal ions through the surface of their own charged cells, or actively absorb heavy metal ions by ingesting necessary nutrient elements to enrich the heavy metal ions on the surface or inside of the bacteria.
The second is the oxidation-reduction process of heavy metals. The heavy metal degrading bacteria in the KMF composite microbial flora can change the valence of heavy metals through direct oxidation or reduction. The change of the valence of heavy metals will affect the solubility, mobility and ecological toxicity of heavy metals. Take the heavy metal chromium (Cr) as an example. Cr6+ has strong toxicity and water solubility, while Cr3+ has low toxicity and water solubility. It has poor mobility in the soil. Heavy metal degrading bacteria can reduce Cr6+ to Cr3+, reducing the content of Cr. Ecotoxicity and mobility in the soil, so as to achieve the purpose of Cr pollution control."
yes, appreciate the point.
Hopefully weak hands will be gone soon to allow PPS to recover.
I will be waiting for the filings to see the big picture.
nicely spotted.
I used a translator on the april 1st PR shown and it gives a description of things as of that date during more difficult times in the pandemic in China. The translation appears to show that Kiwa becomes "Kantan" in the translator and perhaps that is something that had you worried earlier.
"ELIMINATE THE PANDEMIC AND ENSURE THE USE OF FERTILIZER IN SPRING
You are here:HomePress ReleasesEliminate the epidemic situation...
During the tight period of epidemic prevention and control, in order to ensure the fertilizer demand of the farmer customers of the group company in spring, the Kangtan Shandong production base put into the production of Kangtan biological fertilizer as soon as it resumed production. As of March 15th, nearly 34,000 tons of Kangtan fertilizer products have been sent to customers in Xinjiang, Hainan, and Shandong, including 24,000 tons of bio-organic fertilizer, 8,800 tons of compound microbial fertilizer, and 800 tons of water-soluble fertilizer per mu. Today, the bio-organic fertilizer and compound microbial fertilizer to be sent to Zhouzhi, Shaanxi have been loaded and shipped.
Yu Xiaoqiang, vice president of the group in charge of products and production, said that due to the impact of the epidemic, production at the production base was delayed for nearly a month. It is relatively early for Shandong to resume work nationwide. The production line will be started immediately after the factory resumes, and the original plan will be changed. At the end of February, the orders for the traditional market for the first quarter were completed, and 80% of the shipments were completed before mid-March. The supply in the Shaanxi market also began to arrange shipments according to the needs of the Zhouzhi and Xunyi markets.
Regarding whether the sales plan formulated by the group can be completed, Yu Xiaoqiang said: The epidemic has really had a great impact on the first quarter. In this case, we still completed about 80% of the quarterly sales and shipments. Judging from the current situation of domestic epidemic prevention and control, if it can be fully liberalized in the second quarter, the sales and shipment plans for the next three quarters should be achievable. In order to ensure the farming and fertilization of farmers, the state has given some special policies for the transportation of agricultural materials, and there are basically no restrictions. Kantan will also overcome all difficulties and ensure that our farmer customers use Kantan fertilizer products in time."
The August PR translation is essentially the same as before but some wording differs.
"To investors:
After Kantan entered 2020, its business in the first and second quarters completed 60% of its sales plan due to the impact of the epidemic. However, as all sales revenues were commercial papers, the company was affected by China’s foreign exchange adjustments and bill discount policies. There is a serious shortage of cash. On July 22, the company signed a loan cooperation agreement with the Shaanxi Agricultural Credit Financing Guarantee Company. Because of the complicated loan process, it has not yet received a bank loan. In response to this situation, the company’s board of directors urgently initiated the reorganization of Kantan’s business organization and management structure in China, and has conducted cooperation negotiations with banks and Chinese investors for nearly two months. According to the results of the negotiations, the bank’s funds will be It is obtained before September 30, and the funds of Chinese investors will also complete the subscription of Kangtan shares around mid-September. The board of directors will also adjust the company's operating structure in the United States, and plans to release the 1-3 quarter audit reports together."
true. no reason to think good/bad until filings.
all we have is the audited 10K for 2019 with $40m USD annual sales and the current known OS that updates daily and has been steady for some time after 2020 notes maturity.
we have seen PRs of $7.5m USD deal and efforts to resolve the cash flow management. Of course, it is an emergency and they still need to update on the convertible debt to assure us on the OS.
Otherwise, we can only wait and observe market forces.
China’s Economic Rebound Picks Up Pace
https://www.wsj.com/articles/chinas-economic-rebound-picks-up-pace-11601445162
At least this suggests sales are at a respectable level and growing relative to reported quarterly sales last year. Last years SEC filing was audited by Friedman LLP in New York.
I do not recall recent PRs this year on the company website and now the PR part of website is down. Business can run without that page.
Anything to improve communication is appreciated. Lets hope they are updating it. Remember we had a corporate update from CEO recently in August, which indicated three filings will be released in Q3, which should be sometime in November. So we have an idea of the possible silent period.
Thanks. This has certainly been a bumpy road.
I hope they keep the communication channel open and give a PR on when things have smoothed out since it is likely about a month and a half out to the filings.
Unclear if that delay was for Chinese investors or the new bank funding part or both. I still hope they can execute on the original bank funding plan from April PR but presumably activate after October.
Shaanxi Becomes China’s #1 Producer of Apple Juice Concentrate
https://www.producereport.com/article/shaanxi-becomes-chinas-1-producer-apple-juice-concentrate
If apple sales are rising in Shaanxi, Kiwa Biotech may benefit from this market growth. They discussed fertilizer sales for apple and grape plantations near the end of 2019.
"After the 26th China Yangling Agricultural Hi-Tech Fair in October, a new market of nearly 7,000 mu (approximately 1,153 acres) of apple and grape plantations in three counties in Shaanxi Province has begun to work with the Company. It is expected that the newly increased market will increase the fertilizer sales revenue by approximately 3 million US dollars for the region’s sales performance.”"
https://www.globenewswire.com/news-release/2019/11/15/1947889/0/en/Kiwa-Bio-Tech-Products-Group-Corp-Reports-Positive-Financial-Results-for-Q3-2019-With-Revenue-Increasing-42.html
China's Shaanxi to plant 126,667 hectares of forest along Yellow River
"Northwest China's Shaanxi Province plans to plant 126,667 hectares of forest by 2025 along the Yellow River to enhance environmental protection, local authorities said Monday.
The provincial department of forestry said they will also repair 20,000 hectares of degenerating forest in certain areas of 45 counties, cities and districts along the river and its major tributaries, in addition to carrying out tending operations for 133,333 hectares of forest.
The Yellow River, China's second-longest river, flows a length of 719 km within Shaanxi, running through the majority of areas in the province. Shaanxi authorities will take a variety of measures to strengthen the forest system along the river."
http://www.xinhuanet.com/english/2020-09/21/c_139385430.htm
The above may yet be another revenue opportunity for Kiwa Biotech in the recently announced JV
"Along with Company’s core technology, Kangxi will engage in technical cooperation with Northwest Agricultural and Forestry University of science and technology, Northwest University, Fudan University and Qingdao VLand Bio-Tech Inc. and Xibaokun, which will take advantage of its government resource relationship to implement soil and water resources remediation and treatment projects with government agencies in Shaanxi province and Zhejiang."
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
China at a Crossroads: An Analysis of China's Changing Seafood Production and Consumption
"Our analysis shows that by 2030 China is likely to see seafood consumption outstrip domestic production. To meet the seafood gap China will likely attempt to increase domestic freshwater and offshore aquaculture, increase seafood imports, possibly expand the distant water fishing industry, and invest in seafood production abroad."
https://www.sciencedirect.com/science/article/pii/S259033222030302X
and we know Kiwa Biotech is trying to enter the aquaculture market in China
https://kiwabiotech.com/kiwa/kiwa-bio-techs-microbial-technology-selected-by-government-for-aquaculture-project-in-guangdong-province-china/
or company could give us an update soon on whether they obtained
additional bank funding that they expected available by today.
Maybe they will be silent until filings but I would be good if they updated us if the emergency cash shortage situation has passed.
The recent news on progress with kiwi fruit from China gives an opportunity for KWBT. Some new investors may not have been aware of the older PRs I showed where Kiwa Biotech has made a point to demonstrate their fertilizers support kiwi fruit plantations.
Again, more info. on Kiwi Fruit from China today.
https://pledgetimes.com/kiwis-big-data-and-ecology-a-chinese-recipe-to-lift-farmers-out-of-poverty/
Did you visit the company HQ?
Hope you can contribute again to the board as a long term investor in Kiwa Biotech.
Market cap tells more than just PPS
2019 revenue of $40m and market cap of $3.1m
Economic and market research supports Kiwa Biotech. If you do not agree with, provide counter research.
Outstanding Shares
515,967,951
09/28/2020
Restricted
14,205,270
09/28/2020
Unrestricted
501,762,681
09/28/2020
As for ATM, there is still no increase in OS after 2020 notes maturity, while pending news on bank lending that company "believes that additional bank funding will be available to the Company prior to September 30, 2020."
https://www.globenewswire.com/news-release/2020/08/25/2083072/0/en/KIWA-BIO-TECH-PRODUCTS-GROUP-CORP-August-2020-UPDATE.html
China dispatches first-ever kiwifruit exports to South America
"An industrial park in Meixian County, northwest China's Shaanxi Province, on Wednesday, dispatched 40 tonnes of kiwifruit for export to Santiago, capital of Chile.
It is the first for China to export kiwifruits to South America, and the shipment is being transported via cold-chain logistics.
So far, some 20,000 hectares of kiwifruit have been grown in the county, with its annual output value exceeding 3 billion yuan (about 441 million U.S. dollars) for the past five years"
http://www.xinhuanet.com/english/2020-09/24/c_139394396.htm
Kiwa Biotech has a good reputation with Kiwi Fruit
and is located in Shaanxi province.
"During the opening ceremony, a large number of visitors visited Kiwa’s booth and expressed their appreciation for the innocuous Trinity and the continuous praise for the kiwi produced under the Company’s Trinity Model."
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 Bio-Tech Announces Excellent Results of Microbial Fertilizer and Growing Program for Kiwi Fruit"
https://kiwabiotech.com/kiwa/kiwa-bio-tech-announces-excellent-results-of-microbial-fertilizer-and-growing-program-for-kiwi-fruit/
Organic Fruits and Vegetables market in China
"The Organic Fruits and Vegetables market in the U.S. is estimated at US$14.5 Billion in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of US$21 Billion by the year 2027 trailing a CAGR of 12.2% over the analysis period 2020 to 2027."
https://www.prnewswire.com/news-releases/global-organic-fruits--vegetables-industry-301138902.html
"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
Organizational History in 10K
" The Company terminated its cooperation with CAU when the agreement expired on July 1, 2016. All the liabilities owed to Kiwa-CAU R&D Center were assumed by the Transferee of Kiwa Shandong when the Company disposed Kiwa Shandong on Feb 11, 2017."
https://www.otcmarkets.com/filing/html?id=14186191&guid=6gv6UHcGm-BjpZh
They announced they are consolidating to Kiwa Yangling
"We were in the position of integrating and closing our offices from different locations and consolidated our bio-technological products business to Kiwa Yangling as we deemed restructuring our offices into our headquarters is the best course for the Company. On October 21, 2019, we transferred all of our right, title and interest in Kiwa Bio-Tech Asia Holdings (Shenzhen) Ltd. (Kiwa Asia), Kiwa Baiao Bio-Tech (Beijing) Co., Ltd. (“Kiwa Beijing”), Kiwa Bio-Tech Products (Shenzhen) Co., Ltd. (“Kiwa Shenzhen”), and Kiwa Bio-Tech Products (Shenzhen) Co., Ltd. Xian Branch Company, (“Kiwa Xian”), to the Hong Kong Sano Group Co., Ltd. for the HKD 17,000,000 equivalent of US $2,169,862, which resulted in a non-operating loss of $3,527,254."
https://www.globenewswire.com/news-release/2020/06/01/2041320/0/en/Kiwa-Bio-Tech-Reports-Fiscal-Year-2019-Financial-Results.html
China on the way back to rebalancing
"China's growth trajectory in the second decade of the century has been one of a rebalancing toward a new growth pattern, one in which domestic consumption is to rise relative to investments and exports, while a drive toward consolidating local insertion up the ladder of value added in global value chains also takes place."
https://www.cmacrodev.com/china-on-the-way-back-to-rebalancing/
https://www.thestreet.com/economonitor/asia/china-rebalancing-covid19
https://news.cgtn.com/news/2020-09-25/China-on-the-way-back-to-rebalancing-U4hZ7hCJTW/index.html
China to lower financing costs to manufacturing
"BEIJING, Sept. 28 (Xinhua) -- China's central bank has pledged to step up support for the real economy amid efforts to further lower lending rates and financing costs via reform.
The People's Bank of China (PBOC) will work to make sure that newly added financing flows will focus on the manufacturing sector and medium, small and micro firms, the PBOC said in a statement on Monday after a regular meeting of its monetary policy committee.
The prudent monetary policy is forward-looking, precise, and timely, which strongly supports epidemic prevention and control measures, the resumption of work and production, as well as the development of the real economy, the meeting noted.
Stressing that the monetary policy should be more flexible and targeted, the meeting urged efforts to ensure the delivery of monetary policy instruments introduced to directly channel funds into the real economy.
The PBOC also called for a higher level of opening-up in the financial sector, as well as a balance between stabilizing growth and preventing risks."
http://www.xinhuanet.com/english/2020-09/29/c_139404717.htm
China c.bank says it will keep liquidity ample, lower funding costs
"BEIJING, Sept 28 (Reuters) - China's central bank said on Monday it will keep liquidity reasonably ample and guide financing costs lower.
The People's Bank of China will make monetary policy more flexible and targeted, the bank said in a statement after a meeting of its monetary policy committee.
The central bank will keep yuan exchange rate basically stable, it added."
https://in.reuters.com/article/china-economy-policy/china-cbank-says-it-will-keep-liquidity-ample-lower-funding-costs-idINB9N2G504D
Not likely
PPS is currently waiting on news from company but that could be soon after Wednesday based on the August PR.
"While there are no guarantees as to the success of these efforts, the Company now believes that additional bank funding will be available to the Company prior to September 30, 2020 and that certain Chinese investors will fund the purchase of new shares of common stock in the mid-September time frame."
https://www.otcmarkets.com/stock/KWBT/news/KIWA-BIO-TECH-PRODUCTS-GROUP-CORP-August-2020-UPDATE?id=271793
Long-term investors want to know this company has potential for future cash flow. This information supports Kiwa Biotech's business model. It is relevant to long-term shareholders who might be interested in the potential for growth of sales and value the stock based on projected revenue after filings are released.