Kiwa Bio-Tech announces agreement with Yantai Fruit Company
In accordance with the agreement, the parties will set up cooperative establishments in Yantai, Weihai, Weifang, and Qingdao, as well as the other areas to be mutually agreed, to manufacture and sell bio-organic fertilizer, compound microbial fertilizer and other products utilizing Kiwa's technical support and fertilizer products in the growth of fruit in the area. At the same time, we will work to build a new brand of biologically safe fruit to be marketed through the network developed by the parties. The agreement assumes that the Yantai Fruit Company will sell 50,000 tons of products grown with Kiwa's fertilizer products before establishing a joint venture company. The profits generated by the joint venture company will be distributed in accordance with each party's equity share.
"In conjunction with the Yantai Fruit Company, Kiwa intends to establish a significant sales market in Yantai, China's most famous apple planting area. Yantai has nearly 4 million mu (approximately 660,000 acres) of fruit planting area, including 2.8 million mu (approximately 460,000 acres) devoted to a variety of Apples. Kiwa expects that the use of its fertilizer products for the safe cultivation of Yantai apples will not only increase Kiwa's sales revenues, but also make a significant contribution to improving the quality of Yantai apples," said Kiwa's CEO, Yvonne Wang.
In fiscal year 2016, Kiwa Bio-Tech Products Group Corporation reported annual revenue of $9,617,845.