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not saying you are wrong but what would the battle be about?
If 2019 note holders got stock instead of cash, what can they argue or battle about? sell their stock back to KWBT management?
KWBT has the right to pay back 2020 notes in cash without penalty.
we are nearing 3 months since last update from company.
volume and RSI are at low levels again.
Alright. Lets see what happens.
You did not share your reasoning e.g. estimate how much of the notes that past dilution paid off and why has the OS not increased much recently even after 2020 notes maturity.
Agree.
Shareholders have been on the short end of the stick and deserve to participate in the rising revenue trend that has been demonstrated over recent years. We need the hear from the CEO following the shareholder letter:
"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://markets.businessinsider.com/news/stocks/kiwa-bio-tech-ceo-letter-to-shareholder-and-stakeholders-1028975444
I would be surprised.
The calculation estimates for how much dilution covered for the 2019 notes suggested it is over and indeed the OS looks steady.
The 2020 notes were supposed to be paid in cash. Since these 6 month notes, taken out in early February, have matured, the OS is still near 515m.
515,967,951 again on 18th on OTC.
So it would indeed be a surprise to see more dilution of 10 to 100m shares based upon the April 8th PR.
Care to share your reasoning with some solid support?
China's economy firms against twin shocks of floods, epidemic
"China's market of 1.4 billion consumers will maintain the recovering momentum in the second half of the year'
http://www.xinhuanet.com/english/2020-08/18/c_139300190.htm
"China is widely expected to keep its benchmark lending rate steady for the fourth month in a row at its August fixing on Thursday as the economy continues to recover from the coronavirus crisis, a Reuters survey showed."
https://www.reuters.com/article/us-china-economy-lpr/china-seen-keeping-benchmark-lpr-unchanged-for-fourth-straight-month-reuters-survey-idUSKCN25F0HO
yes, earlier calculation estimates suggested the dilution paid off the 2019 notes.
once operations consolidated to Yangling HQ, lets hope they release the 10Qs asap.
Hope the revenues are being turned into receivables at a good rate now.
I do not see the dilution like before and you just confirmed the increase was minor. I can only hope it ended based on the PR plan to close of 2020 notes in cash. It looks like they may have done just that. Maybe the minor increase sorted some fees to close off everything since these were the same noteholders for 2019 notes that caused the dilution since november. With revenues and the OS around near 516m, we are still undervalued.
you cut out the "now" from my phrase.
As OTC website shows updated from yesterday, the OS has been at 515m for some time already after 2020 note maturity date. That is what I am on about. with this number of shares, KWBT looks undervalued based on audited revenues. Revenues are the safest measure we can hope to rely on.
https://www.otcmarkets.com/stock/KWBT/security
I am talking about how OS has settled and we are after 2020 notes maturity. those note holders do not appear to be diluting now. it seems to be finished. we need filing to confirm.
well 2019 notes already caused massive dilution.
OS has not moved after 2020 notes maturity. so what do you conclude from that? looks ok so far at 515m shares and at least 48m sales expected. P/S of about 2 puts us near 0.2 per share fair value.
Two filings missing, yes. If you think this is another Enron or Madoff, then I assume you will move along to another stock. Fair enough. We all can read the past filings and their PRs and come to our conclusion. Based on the pattern of increasing revenues and large consumer markets they are planning to address, I am holding to see what they update next.
Not sure what your emphasis is on current for. It is a circular argument with the filings not released. We cannot debate the 2020 financials without them released.
The recent PR in April was hardly negative or you can point out the negative part of a PR that concerns you:
"Mr. Man Yun, CFO of Kiwa Bio-Tech commented, “It is the first time that we have utilized bank lending facilities in nearly 20 years. This credit facility will enhance our cash flow and enable us to accelerate production and sales. At present, we have several convertible notes in the United States of America which mature in the current fiscal year and we have started negotiations with these convertible notes holders regarding repayment. We are striving to reach agreement with these creditors and repay these convertible notes in cash by the end of April 2020.”"
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
Disagree with your strong opinion
There is no doubt long term shareholders are in the dark and it is not comfortable while we have been waiting. However, I disagree with your post that states the company is bankrupt given the recent financials (10K reported on May 29th 2020) indicate otherwise: https://sec.report/Document/0001493152-20-010111/
in which they met the $40m USD revenue target. They announced a 7.5 m USD deal in Q2 and have a bank loan facility to accelerate receivables. I do not understand your opinion on how they become insolvent in less than 3 months with these types of audited revenues.
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
Until I hear otherwise, I do not see your reasoning.
As for restructuring, I only know of the past PR below and consolidating operations has corporate tax benefits and aligns with government incentives to support the western region of China:
"The Company's Accounting and Finance Department also introduced that the Company is now in the final stage of restructuring and divestiture, which approved by the Board of Director the end of the last year. In order to take advantage of the valuable incentives agreed by the Yangling Free Trade Zone, Kiwa Bio-Tech has agreed to restructure its operations in China to relocate its activities previously located in Shenzhen, Beijing and Shandong to Yangling and focus its manufacturing activities in the Yangling Free Trade Zone. After the divestiture, the Kiwa Bio-Tech China will use Kiwa Yangling as the main operating platform to realize the overall plan for the development in China."
https://www.globenewswire.com/news-release/2019/10/09/1927189/0/en/Kiwa-Bio-Tech-Provides-Positive-Progress-Report-For-3rd-Quarter-Results-Company-to-be-Featured-at-High-Tech-Ag-Expo.html
This relocation of operations was announced before the convertible debt fiasco. I never thought much of it at the time since it seemed a positive development and did not expect this delinquency. I have no reason to think the business is not moving along as always for the past decade and hope they update shareholders within the next few weeks.
Example successful switch to organic agriculture in China
"Our annual turnover in 2017 was about four million yuan. It doubled to more than eight million yuan in 2018. Last year, our annual turnover exceeded 17 million yuan," Liu said.
Now the grape growers in Xianghuan are encouraged to adopt measures such as yield management and avoiding the use of chemical fertilizers, to increase their output of high quality grapes that can be branded as Tengyu.
"By growing organic rice and vegetables ourselves, we want to share with people in cities this new lifestyle in the village through our words and videos on social media so that more and more people will be interested in and even purchase Longtan's agricultural products," Jiang said.
Jiang hopes that the success of their small farm will prove to local villagers that organic agriculture is workable even though it is still not popular in villages.
"I'm sure that it's not a difficult thing for them to earn 10,000 yuan annually once they successfully shift to organic agriculture," he said.
http://global.chinadaily.com.cn/a/202008/15/WS5f3745a5a310834817260789.html
Agreed. I have patience to see it through.
I think KWBT is in the right markets with competitive products.
I think KWBT can achieve sufficient marketing in China.
Based on recent years revenue growth, I think KWBT may have solid management to execute the distribution and production for increasing revenues ahead and start showing investors profitability.
Thanks for sharing.
Perhaps COVID19 restrictions slowed down completion of the production expansion while the Chinese economy may maintain their revenue growth plans. Hope they will clarify the situation soon then and not require OTCQB to chase them.
"PBoC has acted as if the economy will continue to recover
We think the central bank may only provide some liquidity support on a small scale to SMEs and agricultural activities, and this will be too small to move the interbank rate."
https://think.ing.com/snaps/china-pboc-is-not-going-to-ease-in-2h20/
Thoughts on market competition for KWBT
Vietnam and Sri Lanka also have news in recent months with a desire to reduce chemical fertilizer. However, I invested in KWBT for the exposure to the largest consumer market in China. Kiwa Biotech has been over 10 years growing in this space and is gaining government recognition.
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
https://www.globenewswire.com/news-release/2019/12/30/1964860/0/en/Kiwa-Bio-Tech-Announces-Participation-At-2019-Business-Environment-Roundtable-In-Beijing-China.html
"At 11 a.m. Beijing time, Mr. Gaoqiang Yuan, Vice President of China Association of Foreign Funded Enterprises (CFIUS), Ministry of Commerce, arrived at Kiwa’s booth after attending the opening ceremony. Mr. Yuan gave high praise of the role of the “Trinity Model” of Kiwa Bio-Tech in China's agriculture, and pointed out that this model should be extended to the key agricultural regions of the country with the help of Yangling's dominant position in China's agriculture."
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 has patented products:
https://kiwabiotech.com/kiwa/developing-harmless-agriculture/
It is listed here in the global biofertilizer market research.
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
We need KWBT products with brand recognition on major distribution channels
Sustainable agriculture is a big selling point for KWBT.
"It is estimated that by 2030, SDG-generated economic growth could reach 12 trillion U.S. dollars, or 10 percent of the current global gross domestic product. Out of this, China's share would be 2.3 trillion U.S. dollars."
http://www.xinhuanet.com/english/2020-07/26/c_139241889.htm
Alibaba open their Digital Agriculture Distribution Center
Alibaba obviously see value in getting into this business.
https://www.freshplaza.com/article/9226102/china-alibaba-open-their-digital-agriculture-distribution-center-in-nanning/
https://www.freshplaza.com/article/9233611/technology-will-lead-to-innovation-within-china-s-agriculture/
You repeated the incorrect interpretation of my post.
A company with a track record of increasing revenue has value. It is not a one-trick pony.
From the 10Q filing:
"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."
The effect of COVID on western economies is not good. It seems fair to say that revenues for many industries may fall. A top-down approach to investing selects based on a good economic outlook. Some investors may want exposure to the Chinese economy instead and KWBT provides that.
China's economic numbers were bad in Q1. Q2 has improved and economists have suggested it is looking better going forward. The Chinese government are targeting support to agriculture and sustainability. There is still uncertainty for the equity here, as with any. KWBT offers OTCQB investors exposure to that potential economic stability in a US company with operations in China.
We all know the Q1 filing has not been released. We only have the CEO stating 80% sales level in Q1 and the 7.5m deal in Q2. Not bad, but we need the filing. More important than sales now is the status on the convertible debt. Again, that is the main issue that needs to be confirmed in the filings. Nobody knows the exact reasons for the delay but is seems this filing is complicated with consolidation of subsidiaries into Shaanxi province, convertible debt payoff and COVID19. Many of us can wait it out and it appears from the OTC website that OTCQB will pursue non-compliant companies in September (but on a case-by-case basis).
I will not look back. I said during these challenging economic times(i.e. now), it is good to know we have a company here with a track record (now) of increasing revenue. Further, I have posted multiple times on economic news that supports the revenue growth going forward. Please reflect a little longer in future.
'challenging economic times' refers to COVID19.
KWBT sales are within China. Trade war has little effect because Kiwa Biotech benefits from the new environmental regulations (soil pollution law effective since January 1st 2019). This stipulates reduction in chemical fertilizer use and we see new 'green financing' initiatives appearing for the soil remediation space.
The 'if' component is always associated with equity.
I cannot comment on how many market participants are long to support demand for KWBT. Markets have been known to be irrational for extended periods. No doubt the amount of dilution has scared and worn out many. This is speculative however and I try to stick to fundaments from the filings, supporting information from the PRs and supporting economic information. There is also a long history of company development.
Revenue growth trend intact.
https://www.marketwatch.com/investing/stock/kwbt/financials
From the 10Q filing:
"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."
This fact is reassuring in challenging economic times.
Apart from that, the KWBT stock price to sales ratio is low now. Other investors may prefer a fundamental investment approach for KWBT, which might also work well rather than your suggested momentum play.
The main 'catalyst' discussed on this board in recent months is confirmation of the elimination of convertible debt. For this issue, we now see a steady OS after months of dilution:
(I) amount of dilution could well have been large enough to pay off all the 2019 notes
(II) no dilution apparent so far after recent maturity of two 2020 notes.
We need confirmation in the Q1 filing. KWBT is apparently in a COVID19 cure period with OTCQB. There should be a limit to how long KWBT can remain without filing. Recently, disclosures show the CEO updating QB status.
Why does the convertible debt history matter? KWBT has 515 million OS now. 2019 revenue was 40million. A new bank lending facility should improve cash flow management between Kiwa Biotech and customers in 2020. KWBT filings show large current assets that should materialize within the next 4.5 months. There is a production plant expansion due to complete this year (with tonnage details for core and finished product available) that will scale-up production for higher revenues. KWBT is entering the huge soil remediation market with a new joint venture. Their microbial technology has received recognition from the Chinese government for the aquaculture market. With multiple sources for economic news on China showing a recovery now, these large markets await Kiwa Biotech for higher revenues for KWBT shareholders. Based on that, a fundamental valuation based on price-to-sales suggests KWBT could be at least 20 times higher.
Chinese economy's V-shaped recovery becomes more prominent
""China's economy has gradually emerged from the slump and returned to the level it was roughly at prior to the outbreak, backed by the stimulation that has delivered burgeoning signs of work resumption, industrial chains and services sector," said Shao Yu, chief economist at Orient Securities."
https://english.cctv.com/2020/08/10/ARTIo1tCdwMTuH84GKikkbfR200810.shtml
KWBT met 2019 revenue expectations. Hope it continues.
"Mr. Wade Li, CEO of Kiwa Bio-Tech commented, “We are excited to announce that we achieved expected revenues and gross profit for fiscal year 2019, which represented a year-over-year increase of 31% and 13%, respectively. At the same time, the Company divested some of the Company's branches in China for optimizing the operating structure, resulting in financial losses despite the growth of operations. We continued to increase our production capacity and presences to address the tremendously market in China. Our customers associate Kiwa’ brand with trust and reliability, which demonstrated by our solid profit figures and increasing sales.”"
https://www.globenewswire.com/news-release/2020/06/01/2041320/0/en/Kiwa-Bio-Tech-Reports-Fiscal-Year-2019-Financial-Results.html
2020 notes were suggested to be paid off by end of April.
" At present, we have several convertible notes in the United States of America which mature in the current fiscal year and we have started negotiations with these convertible notes holders regarding repayment. We are striving to reach agreement with these creditors and repay these convertible notes in cash by the end of April 2020.”"
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
Dilution was presumably for 2019 notes and likely has paid these off. It appears OS count may now have stopped increasing even AFTER EXPIRY OF FEB 2020 NOTES MATURITY DATES. This looks positive for shareholders. We just need the filing release to confirm the latest status of convertible debt.
good post
Apart from the OTCQB COVID19 cure period, this consolidation of operations could be another reason for the silence if the accounting for all these subsidiaries needs extra time. This is in addition to all of the accounting needed for the convertible notes.
The 10K states "restructuring our offices into our headquarters is the best course for the Company". The consolidation of operations to Shaanxi is likely to gain the benefits of lower corporation tax because the Chinese government are pushing to develop the rural provinces.
https://www.china-briefing.com/news/china-extends-15-percent-profits-tax-qualifying-investors-western-regions-january-1-2021/
There may be tax reporting processes delayed by Covid19 in China that make this consolidation time consuming.
As for business changes, I recall they abandoned the bird flu vaccine AF-01 years ago for the veterinary market.
Market cap less than $5m. Expected 2020 revenue $48m or more.
Guidance was a 20% increase in sales.
Undervalued.
Awaiting end of the COVID19 OTCQB cure period for KWBT regain compliance with the filings.
https://www.otcmarkets.com/learn/resources-for-companies-impacted-by-covid19
Hoping they are finally going to show "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
Hope OS remains steady.
If they can grow 2020 revenues to at least $48million, as guided for a 20% increase, then a simple price to sales valuation of 0.2 per share is fair value based on audited financials from the respected auditor in New York.
"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. Additioanlly, Kiwa’s employees will increase their efforts to contribute to China’s agriculture and environmental protection.
In 2020, Kiwa will continue to maintain and develop the original agricultural fertilizer market on the basis of our partners, with the support of the government to enter the soil restoration business field. Our technology research and development partners will work to continuously upgrade Kiwa’s KMF technology and to add to the development of new products for our market and services."
https://kiwabiotech.com/kiwa/kiwa-bio-tech-ceo-letter-to-sharehoider-and-stakehoiders/
Thanks. We are on day 183 from Feb 5th with no apparent new dilution yesterday. If the notes were extended, should we get an 8K as before? Without that, it would seem they are paid.
I am not clear what is the exact cure period for KWBT based on the OTCQB rules for COVID19:
https://www.otcmarkets.com/learn/resources-for-companies-impacted-by-covid19
Hope to see the 10Qs coming to confirm notes are gone with some assurance of no further toxic debt on the horizon.
World Bank upgrades China's economy forecast based on Q2 GDP rebound
"To shore up the economy against the epidemic shock, the country has introduced an array of measures, including more fiscal spending, tax relief and cuts in lending rates and banks' reserve requirements to revive the coronavirus-ravaged economy and support employment."
https://news.cgtn.com/news/2020-08-05/World-Bank-upgrades-China-s-economy-forecast-based-on-Q2-GDP-rebound-SHOIQFGkc8/index.html
world’s biggest offshore fish farm ship due in March 2022
"it is also well known that the world’s demand for seafood cannot be met by wild catch. Aquaculture is here to say and is growing.
An article in the South China Morning Post by Liu Zhen on 6 June reiterated the situation with specific reference to China. China produces and consumes about two-thirds of the world’s fish. In 2018, its fisheries produced 64.6 million tonnes of seafood, of which 47.6 million tonnes came from aquaculture, including 16.4 million tonnes from nearshore marine farms. But this massive appetite for seafood, although produced by aquaculture is damaging to the environment and there are also concerns about production methods. But that is a discussion.
https://hongkongbuzz.hk/2020/08/all-aboard-for-china
Kiwa Biotech sees the opportunity for entering aquaculture with government support for its microbial technology.
https://apnews.com/57423452fa9d9fff2327ed0ff5f3ce69
Thanks for the important information.
That gives us some clarity on when we can expect OTCQB to contact Kiwa Biotech and take action by September 30th.
"Beginning September 1, 2020, deficiency notices will be sent to companies not in compliance with these standards providing 30 days in which to regain compliance."
Hopefully, Kiwa management will resolve the compliance issues in August to avoid this process.
"Companies and their representatives are encouraged to contact Issuer Services with questions or matters of particular concern. 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."
I am glad that Kiwa Biotech obtained the bank lending facility.
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
We do not know how much that this $14m lending facility has helped Kiwa accumulate cash so far this year.
1. They received approval of their business plan through this facility from government funding (issued by Shaanxi Agricultural Credit Financing Guarantee Co., Ltd). It aligns Kiwa Biotech with the government's plans to prioritize agriculture and rural development.
"It said the country will move to optimize agricultural structure, boost production of green agricultural products or those in short supply, and roll out plans to increase soybean planting and support dairy industry.
The country vowed to step up breakthrough in key agricultural core technologies, and promote independent innovation in areas including biological breeding, heavy agricultural machinery, smart agriculture and green agricultural inputs.
"
http://www.ecns.cn/news/economy/2019-02-20/detail-ifzeratr8871480.shtml
2. The lending facility accelerates receivables and allows them greater flexibility to manage production. This can reduce the chance that Kiwa Biotech will attempt to borrow with toxic debt and gives them some history with the bank that could lend to them directly in the future, if they needed for expansion plans. That is in shareholder's interest to not suffer toxic debt again.
Mr. Man Yun, CFO of Kiwa Bio-Tech commented, “It is the first time that we have utilized bank lending facilities in nearly 20 years. This credit facility will enhance our cash flow and enable us to accelerate production and sales. "
Noted. Although CEO stated in a PR to expect 80% sales level in Q1 with the reduction due to COVID.
The link did not work but the list of items shown may not apply to KWBT. Perhaps send IR the link to ensure they know of it to check against whatever they are doing. I hope the CFO knows what he is doing but this COVID information could be new to them.
The China bank lending was very hard to get for them. They stated they were trying for 6 months. So they must have passed through financial health check and received approval of the bank loan facility.
"Mr. Wade Li, CEO of Kiwa Bio-Tech commented, “SACFG is a guarantee company of the Shaanxi Provincial Government. SACFG highly recognizes the Company’s business development in Shaanxi and will support the implementation of Company’s Trinity marketing strategy in the province. Providing loans to Kiwa’s customers will greatly reduce the proportion of accounts receivable in sales of fertilizer, optimize operation structure, and improve financial management capabilities.”"
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
Kiwa has a reputation to protect with the Chinese bank and default of a note due to delinquent filing does not present well. I hope a better explanation is presented soon. I do not know how long this wait will take.
That's true. I recall reading that.
We do not know what was negotiated but they also had the 2019 note to dilute with Labrys at the same time.
I do not know if 2019 note needs to be cleared before 2020 note for the same issuer but that would seem reasonable.
I assume they need to file an 8K if they were paid and so it seems there were not paid. Otherwise, the silence on the notes makes no sense.
Nothing else much to say until they clarify. Business wise, they are in great areas and supported by government and recovering economic conditions.
Understandable strategy. Hope it works out.
Perhaps the issuer refused cash settlement and we are waiting for maturity before there is movement on the notes with the subsequent 8K. Covid 19 effect is another unknown effect on this situation.
Thanks for info. Not sure if applicable to debt here.
It looks like dilution stopped with the OS steady. Past dilution could have cleared 2019 notes. The April 8th PR suggested that Kiwa management already engaged the debt issuer to negotiate cash settlement, which should put the issuer at ease regarding worry over insolvency due to a delinquent filing. In any case, we are about to reach the maturity of the Feb 2020 notes and perhaps these can be paid in the coming days. Otherwise, why have we not been notified in an 8K if they were paid earlier?
"At present, we have several convertible notes in the United States of America which mature in the current fiscal year and we have started negotiations with these convertible notes holders regarding repayment. We are striving to reach agreement with these creditors and repay these convertible notes in cash by the end of April 2020.”"
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
Bayer sees profits in China's aquaculture markets
'seeks to profit from tighter environmental regulation'
"Advancing how we culture safe, healthy, affordable, and sustainable seafood is essential to the future of the aquaculture industry. "
https://www.seafoodsource.com/news/aquaculture/bayer-increasing-footprint-in-china-s-aquaculture-scene
Kiwa Bio-Tech’s Microbial Technology Selected by Government for Aquaculture Project in Guangdong Province China
https://apnews.com/57423452fa9d9fff2327ed0ff5f3ce69
"There are nearly 650,000 hectare of aquaculture area in Guangdong Province, with a total market value of about 790 million USD, and nearly 10 million hectare of aquaculture area in the whole country, with a total market value of about 12.3 billion USD.
The successful bid for the project of Dinghu Modern Agricultural Industrial Park is the first time that Kiwa won the bid in the large agricultural field led by the South China government. During the implementation of the project of Dinghu Modern Agricultural Industrial Park, Kiwa will strive to build a “Modern Agricultural Industrial Park with the whole industrial chain of eco-friendly aquatic products” by providing a new model of eco-friendly aquaculture for the aquaculture industry in Dinghu District, which marked the application of microbial technology of Kiwa will extend from the very mature planting industry to the aquaculture industry."
https://www.globenewswire.com/news-release/2019/03/14/1753112/0/en/Kiwa-Bio-Tech-Awarded-Government-Bid-For-Modern-Agricultural-Park-Planning-Project.html
Caixin China Manufacturing PMI Hits Over Nine-Year High
https://www.caixinglobal.com/2020-08-03/caixin-china-manufacturing-pmi-rises-amid-recovery-in-output-orders-101587305.html
"Policy stimulus helped
The private survey showed that policy stimulus is helping the world’s second-largest economy in its recovery from the pandemic, said Julian Evans-Pritchard, senior China economist at Capital Economics, a consultancy.
That is as the gauge for export orders remained low at 48.3. Most of the strength in the gauge for new orders — which came in at 54.4 — was therefore due to the rebound in policy-driven domestic demand, Evans-Pritchard said in a note after the release of the survey results.
“The survey data are consistent with our view that policy stimulus has paved the way for a period of above-trend growth in construction and industry,” he wrote. “In the near-term this should help offset continued weakness in consumption and services activity, allowing the economy as a whole to return to its pre-virus trend by year-end,” he added.
https://www.cnbc.com/2020/08/03/china-economy-caixin-markit-pmi-for-july-2020.html
we are approaching maturity of 2020 notes: TFK & Labrys
From Feb 5th...
"must be repaid on or before 180 calendar days after the funding date of each respective tranche (each a “Maturity Date”)"
There was an 8K before when the retired earlier notes. Unclear why these were not discussed to be eliminated by April 30th per the April 8th PR.
"The Note may be prepaid at any time before Maturity Date without any prepayment penalty. "
https://www.otcmarkets.com/filing/html?id=14186191&guid=d6aFUeketgfNbth
I hope we hear on this issue soon, which is more important to hear on than the usual company operations in the 10Q (growing revenues). I also hope they manage to get some market share in soil remediation.
National green development fund targets Yangtze River Economic Belt
$12.7 BILLION raised
...covers areas including "ecological restoration"
https://www.dealstreetasia.com/stories/china-green-fund-199958/
This sounds like a perfect match for the Kiwa's new joint venture in soil remediation.
"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.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.nsagriculture.com/news/company-news/kiwa-bio-tech-jv/
"16% of China’s soil was polluted beyond acceptable standards, and 19.4% of China’s total arable land (65mn out of 334mn acres) was badly contaminated by heavy metals. As the government estimates 300mn acres of arable land is needed to maintain the nation’s food security. Soil pollution and contamination is more acute in Southern China than in the North due to the heavy concentration of China’s metals smelting industry in the South. The Yangtze River Delta, the Pearl River Delta and Northeast China are especially polluted because of their high exposure to heavy industry."
https://kiwabiotech.com/kiwa/the-agricultural-microbial-market-is-projected-to-reach-usd-5-07-billion/
https://www.goldmansachs.com/insights/pages/interconnected-markets-folder/chinas-environment/report.pdf
The Greenpeace report is from 2019
Yes, the challenge is big and the market for soil remediation is huge
https://www.sixthtone.com/news/1003857/greenpeace-study-shines-light-on-chinas-polluted-soils
Chinese government are clearly pushing for enforcement of the China soil pollution law, effective since Jan. 1st 2019
http://www.xinhuanet.com/english/2020-07/27/c_139244413.htm
https://www.nasdaq.com/articles/chinas-new-green-development-fund-raises-%2412-bln-in-phase-1-2020-07-27
"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