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Thanks for posting.
Point 3 is informative
"The loan-program work slow than we expected, but it gets better and the farmers like our product. The Agreement with Shaanxi Agricultural Credit Financing Guarantee Co., Ltd. for the loan-program started on July 22 and the Agreements with banks need to wait complete the 3q shipments than bank would fund the loan to the farmers to pay the company."
3q shipments completed by September. Presumably Postal Savings Bank of China will start executing on cash to Kiwa Biotech in October.
https://www.globenewswire.com/news-release/2020/04/08/2013408/0/en/Kiwa-Bio-Tech-Announces-100-Million-RMB-Loan-Program-To-Boost-Agriculture-Production-in-China.html
Cash flow into company should pick up soon with Chinese investors funding Kiwa Biotech in mid-September and banks funding over from October (& possibly new bank loan before end of September).
Both Chinese banks and Chinese investors providing financial support to Kiwa Biotech is a vote of confidence for KWBT.
https://finance.yahoo.com/news/kiwa-bio-tech-products-group-100000854.html
Another unknown
If that arrived on June 30th, maybe it was used to cover 2020 notes and run the daily business?
That might be why there is no update on the Kiwa Biotech website. i.e. they may have(temporarily) laid off their IT guy to save on costs during the cash crunch.
Need the filings and IR to clarify. We are still on OS of 515,967,951 (well after 2020 note maturity), which suggests the note holders are not converting through some agreement or the notes were paid.
By the time Q3 comes out (with Q1&Q2), there will likely be less than 2 months for the current assets from 2019 10K to materialize and be deployed.
Hard to believe we had over 30million shares traded yesterday from that PR which showed the company believes they have obtained new funding from a bank and Chinese investors buying new shares of common stock in the next 2 or 3 weeks.
"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."
Today, volume so far is quiet in a standoff. By this time yesterday, we had over 6.5 m shares traded. Today, less than 0.5m.
Longs can hold until PPS appreciates the revenues.
RSI=28.72 Oversold
Market cap = 2,941,017
That is a fraction of any interpretation of the revenue figures.
Good points here.
Unclear if KWBT would move based on progress on trade deal given production and sales are all within China:
https://www.reuters.com/article/us-usa-trade-china/us-china-reaffirm-commitment-to-phase-1-trade-deal-in-phone-call-idUSKBN25L023
China has huge consumer markets for biofertilizer due to increasing limits on the use of chemical fertilizer and the 2019 soil pollution law. Even with increasing imports of agricultural products, there is also increasing demand for agriculture overall.
There is plenty of market share for KWBT to gain in biofertilizer, soil remediation and aquaculture. Kiwa Biotech is relatively small still and has competitive products. China has a large growing middle class that will demand variety and quality.
Central bank plans more rate reforms to cut borrowing costs
"Liu urged banks to make use of instruments like local government special bonds, perpetual bonds and second-tier capital debt for supporting the real economy and small and medium-sized enterprises. "Banks should adopt various measures to augment capital, and strengthen the ability to serve the real economy and support small and micro enterprises."
http://www.china.org.cn/business/2020-08/26/content_76637503.htm
Moody's raises growth forecast for China to 1.9%
“Our only upward revision for 2020 growth was for China, which we raised to 1.9% from 1.0% following a stronger-than-expected Q2 rebound in real GDP,” Moody’s said.
https://economictimes.indiatimes.com/markets/stocks/news/moodys-raises-growth-forecast-for-china-to-1-9/articleshow/77748168.cms
Can KWBT reflect revenues soon?
On April 8th, they annonced a loan agreement with Postal Savings Bank of China & SACFG for equivalent of 14million USD.
https://www.globenewswire.com/news-release/2020/04/08/2013408/0/en/Kiwa-Bio-Tech-Announces-100-Million-RMB-Loan-Program-To-Boost-Agriculture-Production-in-China.html
After executing on July 22nd, they still have no cash after waiting more than a month. This line of credit is on the horizon with no date provided in the PR. However, cash liquidity may be expected to be injected in September by:
New Chinese investors
New bank lending
Company appears to be avoiding more convertible debt and keeping with local bank lending facilities for cash management. That is positive for shareholders.
https://www.globenewswire.com/news-release/2020/08/25/2083072/0/en/KIWA-BIO-TECH-PRODUCTS-GROUP-CORP-August-2020-UPDATE.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
"“Kiwa Bio-Tech expects the value of the company to continue to improve during the next 12 months due to increased sales performance and will not use reverse splitting of shares to improve the share price.” Stated Kiwa Bio-Tech’s CFO Mr. Man Yun."
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
2019 brought in 40m USD in revenue
https://www.globenewswire.com/news-release/2020/06/01/2041320/0/en/Kiwa-Bio-Tech-Reports-Fiscal-Year-2019-Financial-Results.html
With the Chinese economy picking up after COVID19, we can look forward to more efficient bank lending and increased sales. Stock is very far from recognizing these cash flows at present.
“Kiwa plans to achieve fertilizer sales of no less than 200,000 tons in 2020, which will increase by nearly 20% compared with our total sales in 2019.” Added Li.
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
We can expect OTCQB restored once those audited filings appear.
The receivables are apparently in commercial notes, not cash
1. The problem appears to start with the SACFG credit line starting up for whatever policy reasons to delay...
"the Company executed a loan agreement with Shaanxi Agricultural Credit Financing Guarantee Company, however, at this date we have not received any funding from this line of credit."
2. This led to restructuring...
"In response to this situation, the Board of Directors of the Company has urgently initiated a restructuring of its China business and management structure."
They appear to use this restructuring as the reason for filing delays. They indicated this involves additional bank funding before September 30th and Chinese investors. This puts us into October timeframe before that is on the books.
yes, right now stock is way undervalued even for the reduced revenues
PR had nothing on the notes. The PR said Chinese investors want common stock of KWBT. That says a lot about their lack of worry on dilution. I think it is likely these investors want in after doing their due diligence.
September should be interesting for KWBT
glad you are staying the course
Over 6.5 million shares in 40minutes is fairly large.
we need this to bounce off the RSI=29.91 now and back to 0.02
I think it means 60% of expected half-yearly sales
Assuming an annual total of 48m based on 20% over 2019 sales of 40m, then perhaps they achieved about $14.4m instead of $24m due to the effect of COVID. With COVID19 situation improving in China, there is a good chance for a recovery in Kiwa sales.
Looking forward to a good PPS by end of year
1. Based on PR, we apparently have quality assured revenues that should be easily audited: "all of the sales revenue generated in this period were collected in Commercial Bank Notes".
2. There is apparent interest from Chinese investors to buy KWBT common stock. We may get to see how they value the stock within 3 weeks when purchases are expected, based on the PR. Hopefully, there will be an 8K on the amount of funding for Kiwa Biotech after they complete the share issuance. Hopefully, they will be long term investors also.
3. Company plans to file for Q3. We should regain OTCQB then and be in a position to examine the debt, restructuring, outlook for sales and hence the FMV for the revenues and OS. Hopefully second half of year will see sales pick up to meet the expected yearly target.
OK but this is all before the filings are released
...assuming Q3 is due in November.
"certain Chinese investors will fund the purchase of new shares of common stock in the mid-September time frame."
There is also an email to confirm from the PR.
https://finance.yahoo.com/news/kiwa-bio-tech-products-group-100000854.html
I think a purchase of treasury stock would decrease OS.
the PR said "certain Chinese investors will fund the purchase of new shares of common stock in the mid-September time frame."
Both the Chinese banks and Chinese investors are likely very informed on Kiwa Biotech. That is a plus and reassuring for the OTC market for KWBT.
Undervalued based on sales levels
1. Sales are at 60% for first half of year, slowed by COVID19.
So how is it looking for the remaining half of the year?
WSJ: China’s Economy Is Bouncing Back
https://www.wsj.com/articles/chinas-economy-is-bouncing-backand-gaining-ground-on-the-u-s-11598280917
and do we see follow up on that sentiment?
China approves BlackRock, Temasek and CCB joint wealth venture
"Top global financial players have long sought to increase their presence in the relatively fast-growing Chinese economy"
https://www.reuters.com/article/us-china-finance-jv/china-approves-blackrock-temasek-and-ccb-joint-wealth-venture-idUSKBN25I0LP
2. Cash management was the apparent problem. They are pulling together additional bank lending. I for one am relieved they are not dealing with more TOXIC NOTES. You can check where the issuers are located.
Recently in China they have agreements with solid institutions:
a. Shaanxi Agricultural Credit Financing Guarantee Co., Ltd. (“SACFG”)
b. Postal Savings Bank of China (“PSBC”)
https://www.globenewswire.com/news-release/2020/04/08/2013408/0/en/Kiwa-Bio-Tech-Announces-100-Million-RMB-Loan-Program-To-Boost-Agriculture-Production-in-China.html
3. I am not interested in the individual entry or exit and rather that the business has a good plan forward. New Chinese investors will help fund the business and support KWBT stock with purchase of "new shares of common stock "
4. We need to see the filings of course but we got an expected date. We need to wait until perhaps November for that, given the Q3 was released then in 2019. Maybe someone else can confirm the expected date.
It seems we will have new Chinese investors in about 3 weeks.
O/S could increase with new shares for new investors but they may also help KWBT achieve fair market value.
Those Chinese investors obviously see value in the OTC KWBT common stock.
KIWA BIO-TECH PRODUCTS GROUP CORP. August 2020 UPDATE
Yangling, Shaanxi, China, Aug. 25, 2020 (GLOBE NEWSWIRE) -- Kiwa Bio-Tech Products Group Corp. (KWBT) (“Kiwa Bio-Tech” or “the Company”), is pleased to provide this corporate update for all shareholders.
To Kiwa’s Shareholders:
Since the beginning of calendar year 2020, Kiwa has completed 60% of its planned sales during the first half year under the impact of the COVID-19 pandemic.
Notwithstanding, since all of the sales revenue generated in this period were collected in Commercial Bank Notes, the Company faced a severe shortage of cash due to China's foreign exchange adjustments and note discount policy. On July 22, 2020, the Company executed a loan agreement with Shaanxi Agricultural Credit Financing Guarantee Company, however, at this date we have not received any funding from this line of credit.
In response to this situation, the Board of Directors of the Company has urgently initiated a restructuring of its China business and management structure. The Company has been engaged in discussions and negotiations with various banks and Chinese investors for nearly two months. 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.
In tandem with the restructuring of its Chinese operations, the Board will also oversee the restructuring of its’ US operations. 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
some relief at last...
1. "Kiwa has completed 60% of its planned sales during the first half year"
CLEAR POSITIVE FOR THE STOCK
2. 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.
THIS SOUNDS POSITIVE FOR THE STOCK WITH DEMAND FROM CHINESE INVESTORS.
3. "The Company currently plans to release its first, second, and third quarter quarterly reports at the same time."
We should expect Q1&Q2 release with standard Q3 release date. At least we have a plan!
auditor confirmed revenues
"The aggregate audit fees for 2019 paid and payable to Friedman LLP were approximately $220,000. The aggregate audit fees for 2018 paid and payable to Friedman LLP were approximately $205,000."
10K
https://ih.advfn.com/stock-market/USOTC/kiwa-bio-tech-products-qb-KWBT/stock-news/82564875/annual-report-10-k
Agree mostly
We should see official reports but the company was not completely silent on operations for 2020.
1. The announced $7.5m deal for a first order with a state company to expand fertilizer sales in new markets is a big deal.
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
2. The new joint venture for soil remediation is also significant given the government support for this type of work.
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
The CFO:
“Kiwa Bio-Tech expects the value of the company to continue to improve during the next 12 months due to increased sales performance and will not use reverse splitting of shares to improve the share price.” Stated Kiwa Bio-Tech’s CFO Mr. Man Yun.
None of us know why they did not release the 10Qs. The new CEO gave us these optimistic PRs and a 10K so far in 2020 and after company went quiet. CFO has spoken of no RS which is also positive for stock investors. The company value may very well be increasing despite the stock languishing due to no updates.
we have been delinquent for nearly 2 months, with failure to file 10Q
to answer your question on "the last time we had some positive news":
I consider the audited 10K on June 1st 2020 as positive news given that confirmed the revenue trend which is key to my investment thesis.
This does not mean it is not frustrating to see delinquent status and be left waiting.
June 1st gave news on achieving 2019 revenues
we are nearly 3 months without any news
we do not know where all the revenue in 2020 has gone. Hopefully for increasing production and market share for this growing company while also removing expensive debt and looking after shareholders better.
https://www.globenewswire.com/news-release/2020/06/01/2041320/0/en/Kiwa-Bio-Tech-Reports-Fiscal-Year-2019-Financial-Results.html
PDD doubles down on investment in online agriculture, ramping up rivalry with JD, Alibaba
"“Agriculture is a sector that touches the largest number of people and yet had the least amount of digitisation in the past decades,” said Chen Lei, Pinduoduo’s newly-appointed CEO during the earnings call on Friday. “Any technology that can improve productivity and efficiency along the agriculture value chain would have a huge impact.”"
"E-commerce giants Alibaba, Pinduoduo and JD.com have all launched their own programmes to support farmers during the pandemic, helping them sell their products through their online platforms, offering logistics support and sales promotions to attract more consumers."
“Due to current global economic pressure, consumers will keep tightening their belts. We expect to see more consumer activity happening in lower-end markets with lower-priced products,” said Xu Yinghao, an analyst at Hangzhou-based research firm China E-commerce Research Centre. “Meanwhile, rural e-commerce has ushered in a new period – agriculture will be where e-commerce platforms see the strongest user growth [going forward].”
https://www.scmp.com/tech/e-commerce/article/3098630/pdd-doubles-down-investment-online-agriculture-ramping-rivalry-jd
Scenario of no debt should be net positive for shareholders
Company could grow faster into huge consumer markets. Looking at past PRs, Kiwa Biotech listed a few parties that might take interest in KWBT.
1. Rong’s Family Investment Group
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
2. Hong Kong Sano Group Co. Ltd.
https://www.globenewswire.com/news-release/2020/06/01/2041320/0/en/Kiwa-Bio-Tech-Reports-Fiscal-Year-2019-Financial-Results.html
"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."
3. Shaanxi Xibaokun Agricultural Technology Co., Ltd
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
"The new joint venture aims to leverage the Chinese government’s promotion of treatment and restoration of polluted land and water resources, starting with Yangtze River Delta "
https://www.nsagriculture.com/news/company-news/kiwa-bio-tech-jv/
This Yangtze river delta region continues to receive attention in the news
http://www.chinadaily.com.cn/a/202008/22/WS5f409e9ea310834817262097.html
4. "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/
China floods may cause farmers to need more fertilizer
"To reduce the losses caused by the flood, the local agricultural department purchased seedlings of cabbage, sweet potato and other crops from Shouguang, and provided technical guidance and fertilizer subsidies to flood-affected farmers."
"After the flood, the local government helped farmers replant crops to ensure autumn harvests. The county government has dispatched more than 200 technical experts to help with restoring agricultural production.
Chinese authorities have stressed agricultural production after natural disasters to reap a bumper autumn harvest this year. "
http://www.xinhuanet.com/english/2020-08/23/c_139311551.htm
A look back before dilution...
"At the same time, Ms. Yvonne Wang, CEO of Kiwa Bio-Tech, recently met with USA institutional investors and Wall Street stock analysts to help the USA public market to better understand Kiwa’s business model, strategic planning and described how the company is currently undervalued based on Kiwa 2018-2019 financial projections"
https://kiwabiotech.com/kiwa/kiwa-bio-tech-achieved-important-milestone-in-the-first-appearance-at-caf/
The market cap of the stock then was far higher than now and the company agreed the stock was undervalued. Revenues are now higher.
The restricted share count increased slightly towards the end of the last major dilution. Those shares were presumably for employee incentives and suggest the company values the shares. In addition, the company stated their intention to pay off 2020 notes in cash to minimize dilution on shareholders. In addition, that large dilution after the 10K was released started from a much higher PPS near 0.03. That likely helped reduce the dilution on us shareholders. This is not consistent with your hypothetical dilute to oblivion. The O/S has been at near 515m for quite some time now after the maturity date of the 2020 notes. I cannot say I understand what is going on but your hypothetical could be both positive and negative and not just the latter.
Good point. Another possible reason for the delay.
Hope to see those large current assets usefully deployed
It was a good post
1. I agree the revenue guidance is realistic given the management recently met revenue targets. I see no reason to stop believing them. I am glad to see the auditors in recent 10Ks checking the revenues were real and KWBT paid serious fees for their services.
2. There is good reason to believe they have brought in near 20 million. Target is at least 48million for the year. They have a new bank lending facility to accelerate receivables. They gave a PR that 7.5m is to be booked in Q2 with a state-owned company. That deal should be good for the money. It is to expand fertilizer market share in new areas for Kiwa Biotech. I have no reason to not believe the stated agreement is real.
3. No idea other than the stated shift of operations to Yangling HQ. I see this as positive for corporate tax, etc. and the agriculture industry links they can gain in the demonstration zone.
4. They need funding for the expansion of production of microbial fertilizer. They plan to have fermentation operations which needs utilities and monitoring equipment. This is a high barrier to entry for competitors and will see KWBT be among the leader in China for the scale of production, as per the past PRs.
5. there were some calculation estimates made on this board for the convertible debt. The O/S is quite steady now. I also think the 2019 debt was paid by dilution and no reason to think he 2020 notes have not been paid in cash, per the April 8th PR.
6. KWBT technical suggest we hit a low with the RSI near 30. We may be turning but of course it is not relevant once a critical update appears i.e. the bone you asked for.
Good to hear KWBT is on your watchlist
I did not see what your 'blind trust' comment was about for a deleted post.
It would be good to hear if you join us shareholders later, your thoughts on taking your long position and your investment horizon.
Thanks for sharing
You stated you wanted to buy into KWBT at a higher price.
You are therefore preparing to revalue the company higher with the next SEC filing or else you are not interested in the company good/bad and only on the stock momentum.
I see you are involved in moderating 'trading psychology 101' or behavioural finance. It is one aspect among many factors and styles. People here are discussing the direction of the company and forming opinions. Past filings and past SEC reports are valid in this discussion. Missed filings are a concern and the reason is unknown. The company has been filing reports regularly for over a decade. The management met past revenue guidance. This gives weight to their future revenue guidance and PR statements. They negotiated a Q2 deal for 7.5million with a china-state backed company. Even without that PR and ignoring future guidance, the company may be valued much higher based on a trailing P/S and the current O/S. Nobody needs to buy or sell at this time given the OTC stop sign.
market cap $3,766,566
2019 revenue = $40 million
2020 guidance of 20% sales growth
Farmers in China have more financing options
"SimpleCredit focused on agricultural financing services at the beginning of its establishment, and assembled a team focusing on agricultural finance business. In order to facilitate the modernization of agricultural sector, the company worked with some of the leading figures in the field, such as Chia Tai Group and Alpha Feed, so as to develop a new model to benefit the farmers by using technology and financing.
The new model has been deployed on the SimpleCredit Agricultural Loan, an App developed independently by SimpleCredit. Farmers can apply for loans online independently without providing guaranty. The whole process, from application to receiving funds, can be as short as 10 minutes. "
"With their professional and financial power, we are confident that China's market for rural finance will grow even bigger"
https://www.globenewswire.com/news-release/2020/08/06/2074404/0/en/SimpleCredit-and-IFC-Joint-Hands-to-Promote-the-Development-of-High-Quality-Inclusive-Financing.html
China consumes 40% of the world’s fruit and vegetables
https://chinadialogue.net/en/cities/10354-china-s-middle-class-gets-a-taste-for-healthy-eating/
China's top legislator stresses implementation of soil pollution prevention law
http://www.xinhuanet.com/english/2020-07/27/c_139244413.htm
I follow the audited financials.
Facts matter in investing. Stock can follow the business growth eventually. As some speculate on a buyout in recent posts, shareholders would demand fair value in that scenario. Many longs here would do well. I prefer this stock to finally uplist on a big exchange, as management have alluded to before in the past media.
Your long experience on ihub has brought you to consider that KWBT may jump with a 'catalyst' in the future. That is saying something and so you can see something in this position. Some would say the deep undervaluation with a rising revenue trend is enough of a catalyst. I have no way to know if naysayers are accumulating already while the PPS is low. I am not going to debate your momentum strategy versus a fundamental value strategy. Both are buy low, sell high.
The stock can pop at any moment if news on convertible debt removed came out such that OS is fixed and stock can be fairly valued.
O/S remains at 515,967,951 per August 20th.
https://www.otcmarkets.com/stock/KWBT/security
We continue to see no dilution and wait for an update. All stocks carry risk. Shareholders who take more risk, deserve more reward.
China's agricultural high-tech industry
"China issued a guideline regarding advancing the development of agricultural high-tech industry demonstration zones in 2018, highlighting the importance of technology in modernizing agriculture and the role of demonstration zones in spearheading the efforts."
http://www.xinhuanet.com/english/2020-08/21/c_139306058.htm
Yangling Agriculture High-Tech Industrial Demonstration Zone
http://investinchina.chinadaily.com.cn/s/201905/21/WS5ce3c108498e079e680214f3/yangling-agriculture-high-tech-industrial-demonstration-zone.html
"The new Kiwa R&D Center is located in the only High-Tech Agricultural Free Trade Zone in Yangling, Shaanxi Province. This location will give Kiwa Bio-Tech access to one of the largest agricultural industry clusters in China. With these geo-advantages and cluster competitive advantages, the Kiwa R&D Center has already established a Research and Innovation Division, Laboratories, an International Cooperation Division, a Data and Information Division and Personnel Training Division."
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
Agreement with China State-Owned Enterprises to Develop New Fertilizer Market Areas
https://finance.yahoo.com/news/kiwa-bio-tech-announces-agreement-100010371.html
Yes, I am a long term investor since 2009. There are a few other remaining long term holders but they do not post often. The dilution lost many long term holders and that is understandable.
I never sold KWBT shares. I will not be in any rush to sell and want to see fair value reached firstly and see if the company has the management skill to achieve a large market share.
Kiwa was one of the early movers in biofertilizer space with their vegetables displayed at Beijing Olympics. I saw the market opportunity then given the state of Chinese soil and milk tainting scandal. Chinese consumers have increasing wealth and would likely want higher food quality. Kiwa changed focus from AF01 vaccine to fruit & veg and now also soil pollution and aquaculture. They have over a decade in this microbial technology space.
Value of shares increased after the 200:1 RS. The new website appeared. It started to look like momentum building and revenues were growing. Management were then talking of uplisting to a major exchange and there is a photo available on website of CFO in Hong Kong at the Nasdaq office. I did not sell since the number of outstanding shares were far less.
The drop in share price is not in sync with dilution however and by a large multiple i.e. there is now a large undervaluation based on P/S. I had a choice to walk away with loss or see the business potential still exists while the valuation has never been so cheap as in past few months. I averaged down but perhaps too early like many here. The silent few months is a blow to the reputation of KWBT. The bottom line however is this company has shown significant revenues and is in the process of cleaning up the balance sheet from toxic notes and consolidating operations to Yangling free trade zone. For those who studied some financial reporting, it is common knowledge that reported sales are the least easily manipulated reporting item. I am glad to see the auditor in New York with this company.
Again, we all know filings are due
The paragraph on the description on biofertilizer market is generic and valid, independent of KWBT.
I just gave a barrier to entry in terms of Kiwa's investment plan for production. It is aiming to scale-up microbial fertilizer higher than competitors in China. Hence, you can see a photo on the board with Bayer, Syngenta, etc. visiting Kiwa HQ in Yangling at agricultural forum. They would not visit Kiwa if they were not impressed.
Another competitive advantage shown:
Kiwa Bio-Tech Achieves Agriculture Breakthrough With New Fertilizer Processing Technology
https://www.marketscreener.com/quote/stock/KIWA-BIO-TECH-PRODUCTS-GR-34728443/news/Kiwa-Bio-Tech-Achieves-Agriculture-Breakthrough-With-New-Fertilizer-Processing-Technology-28974404/
and KWBT has their own R&D with possibly future competitive products
rising revenue over the past years strongly suggests good demand for Kiwa Biotech biofertilizers.
and then there is the plan to expand the production of microbial fertilizer
"The growth of the biofertilizers market is driven by the growing organic food industry, initiatives by government agencies, and increasing awareness about the need for sustainability in modern agriculture. Rising awareness of the hazards of chemical fertilizers is also accelerating market growth. However, environment and technological constraints along with poor infrastructure & high initial investment for biofertilizer manufacturing facilities, are hampering the market growth."
https://www.globenewswire.com/news-release/2020/07/23/2066373/0/en/3-9-Billion-Worldwide-Biofertilizers-Industry-to-2025-New-Target-Markets-Present-Opportunities.html
"“Kiwa Bio-Tech Yangling Eco-friendly Agricultural Headquarters Construction Project covers an area of 53 mu (approximately 8.77 acres), with an investment of approximately $44.5 million USD – (RMB 300 million yuan), and will include fermentation and production terminals, agricultural produce sorting facilities and storage, a research and development institute and corresponding ancillary facilities.“ "
“Our successful construction of the Yangling Project will break the current situation of small-scale production of microbial fertilizers in China and lead the standardization and scale construction of the new fertilizer industry."
https://www.globenewswire.com/news-release/2019/05/02/1815233/0/en/Kiwa-Bio-Tech-s-44-5-Million-Headquarters-and-Manufacturing-Facility-Named-As-a-Key-Construction-Project-in-Shaanxi-Province-for-2019.html
and then there are past KWBT filings that discuss the competitive landscape