Kiwa Bio-Tech Products Group Corp (fka KWBT)

[Mick Tenbagger]

For me, three figures are very important in this 2Q report:

- company has doubled revenues to 10.924.978,00 $ (compared to 5.334.830,00 $ in 2nd quarter of 2018)

- company has increased gross profit rate to 29 % in first half year of 2019 (compared to 26,9 % for whole year 2018)

- company has advanced 23.007.464,00 $ (!!!!) to their suppliers in order to secure the production and the prices of the raw materials. This means they have huge orders on hand and will have a very strong 3rd and 4th quarter this year!

The negative aspect is, that EPS is negative. However this is due to the “provision for deferred costs of sold costs” in value of 2.448.764,00 $. However this is only a provision and very much uncertain whether it will ever be activated. However this has to be incorporated because of Chinese accounting policy. Without this, the EPS would be positive.