ITEM 1.01 ENTRY INTO MATERIAL DEFINITIVE AGREEMENT
Kiwa Bio-Tech Products Group Corporation (the "Company"), together with its
wholly owned subsidiary, Kiwa Bio-Tech (Yangling) Co. Ltd ("Yangling") and its
strategic partner Shaanxi Xibaokun Agricultural Technology Co., Ltd., (Xibaokun)
have established a joint venture to address ring-fenced soil remediation
projects.
Presently, the Chinese government has vigorously promoted the treatment and
restoration of polluted land and water resources and plans to invest significant
funding to implement remediation projects. Through many experiments related to
remediation and restoration of polluted agricultural land, the government has
recognized the Company's core microbial technology as one of the principal
technologies for remediation of soil and water resources.
At this time, Yangling and Xibaokun has established Yangling Kangxi Agricultural
Technology Development Co., Ltd. (Kangxi), with environmental protection as its
main business strategy. Xibaokun holds 60% of the equity and Kiwa Bio-Tech
(Yangling) Co. Ltd ("Yangling") holds 40% of the equity of Kangxi.
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.
This joint venture will extend the Company's business plan from the original
agricultural fertilizer market to enter the soil restoration business field.
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