Exhibit 10.7

                                Advance Agreement

      Party A(pound)(0)China Star Investment Management Co. Ltd.
      Party B(pound)(0)Kiwa Bio-Tech Products (Shandong) Co. Ltd.

      The Advance Agreement is signed on June 29, 2005 by both parties, to
clarify the following advance transactions:

      1. During April to June 2005, Party A advanced an aggregate sum of
      RMB785,000 to Party B through its bank accounts in China. The details of
      date and amounts are as followed:

                             Date                     RMB
                 -------------------------------------------------

                            5-Apr-05               100,000.00
                           29-Apr-05                45,000.00
                           13-May-05                16,000.00
                           16-May-05                45,000.00
                           20-May-05                 9,000.00
                           23-May-05                35,000.00
                           26-May-05                20,000.00
                           30-May-05               100,000.00
                            2-Jun-05                15,000.00
                            7-Jun-05                40,000.00
                           14-Jun-05                20,000.00
                           21-Jun-05                40,000.00
                           23-Jun-05                40,000.00
                           29-Jun-05               260,000.00
                                            ------------------
                      Total                        785,000.00
                                            ------------------

      2. Both parties agreed the abovementioned advances (RMB785,000 (i.e.
      $94,844.56) in total) bear interest at 12% per annum starting from date of
      draw down. Party B agreed to settle the advances within 180 days since the
      date of draw down. It is agreed that Party B has the option to repay or
      settle the advances on or before the expiry.

      3. Both parties agreed that Party B will issue to Party A warrants that
      entitle Party A to purchase up to 474,224 of common stock based on the

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      conversion price specified in Clause 4. Party A shall have the right to
      exercise the warrants within next 24 months.

      4. Conversion: At the option and instruction of Party A, Party A shall at
      any time make an application to exercise any warrants for the issuance of
      shares of Party B's holding company, Kiwa Bio-Tech Products Group
      Corporation ("KWBT"). Party A shall have the right to exercise the
      warrants based on a conversion price equal to the closing quote of the
      shares of KWBT, listed on the Over-the-counter Bulletin Board (the
      "Shares") on the date of drawing down the fund. A list of the closing
      quotes of KWBT during the dates of the draw down is attached in the
      Appendix A. The mechanics of the conversion are as follows:



      (1)   Shares issued upon Exercise will be registered within six months or
            as soon as practicable on behalf of such Person or Persons as Party
            A shall direct at Party B or KWBT's expense. Party A shall have
            unlimited piggyback right.

      (2)   Party B or KWBT shall procure that all taxes and capital, stamp,
            issue and registration duties (if any) arising in connection with
            the Exercise.

      (3)   Party B or KWBT shall procure that on or as soon as possible after
            conversion evidence satisfactory to Party A shall be delivered to
            Party A in respect of its legal title to the Shares and that
            definitive certificates are delivered to Party A in respect of the
            Shares as soon as practicable.

      (4)   Fractions of shares will not be made available and any cash
            adjustment to be made shall be paid to Party A.

      (5)   Party B or KWBT shall promptly notify Party A in written form of any
            potential changes in majority holding or events that would have a
            substantial impact on KWBT's asset structure or business control
            (which are collectively called "changes in majority holding"). This
            notification and other proper assistance shall be promptly delivered
            to Party A so as to allow it to make decisions as to whether to
            exercise its right of converting the loan according to clause 4. In
            case of failure to promptly deliver the notification to Party A,
            Party A reserves the right to request a proper adjustment on the
            conversion price so as to keep consistent with the result of
            conversion prior to the changes in majority holding.

<PAGE>

Party A:   China Star Investment Management Co. Ltd.


Signature: /s/ Zulong Liang
           ---------------------
           Director


Party B:   Kiwa Bio-Tech Products (Shandong) Co. Ltd.


Signature: /s/ Lianjun Luo
           --------------------------
               Director

Date:      June 29, 2005


<PAGE>


Appendix A

List of closing quotes

List of the closing quotes of Kiwa Bio-Tech Products Group Corporation during
the dates of the draw down are as followed:


       Date              Closing quote on date       No. of warrants granted
                              of drawdown
----------------------------------------------------------------------------

          5-Apr-05                   0.009                     60,411
         29-Apr-05                   0.026                     27,185
         13-May-05                   0.027                      9,666
         16-May-05                    0.03                     27,185
         20-May-05                   0.024                      5,437
         23-May-05                   0.025                     21,144
         26-May-05                  0.0241                     12,082
         30-May-05                   0.022                     60,411
          2-Jun-05                   0.022                      9,062
          7-Jun-05                   0.021                     24,164
         14-Jun-05                   0.018                     12,082
         21-Jun-05                   0.015                     24,164
         23-Jun-05                   0.013                     24,164
         29-Jun-05                   0.014                    157,067
                                                       ---------------
                                                              474,224
                                                       ---------------