BEIJING, June 28, 2023 (GLOBE NEWSWIRE) -- Shineco, Inc. (“Shineco” or the “Company”; NASDAQ: SISI), a provider of technologically advanced healthcare products and services, announced today that on June 15, 2023, its wholly owned subsidiary, Shineco Life Science Research Co., Ltd. (“Shineco Life Science”), signed a joint venture cooperation agreement (the “Agreement”) with Yangzhou Kangling Medical Co., Ltd. ("Kangling Medical"), to establish a joint venture company, Shangkang Life Science and Technology (Jiangsu) Co., Ltd (“Shangkang Life Science”). The joint venture will be formed to improve the delivery of healthcare services and medical products throughout China.
The Agreement stipulates the business activities of Shangkang Life Science which encompasses research and development, and the production and sale of medical equipment and personal protective equipment. Shangkang Life Science will be jointly capitalized in the amount of RMB 10.0 million (approximately US$ 1.4 million), where 51% of the capital contributed will be provided by Shineco Life Science and 49% of the capital contributed will be provided by Kangling Medical. The Agreement also addresses Shangkang Life Science’s business scope, organizational structure, financial planning and accounting, governance oversight, and management and staffing.
Kangling Medical has excellent research and development capabilities which is supported by its culture of independent innovation. Kangling Medical is committed to the development of medical equipment, such as its well-known bone hyperplasia rheumatism treatment instruments, has multiple Chinese national Class 2 medical device licenses, and engages in R&D-led production and sales. Kangling Medical, formerly known as Jiangdu Medical Electronic Equipment Enterprise, was established in 1997 in Jiangsu Province, China, and the ‘Kangling’ brand is recognized in China for its premier medical products.
Ms. Jennifer Zhan, CEO of Shineco, commented, "We are pleased to have entered into this agreement with Kangling Medical and view it as a very important step in our corporate evolution. As Shineco is developing medical treatment centers and community health care projects in China, we believe that the integration of these businesses with Kangling Medical’s medical products business is a perfect fit. We believe that our working with Kangling Medical will result in synergies that will vastly benefit the new joint venture.”
Mr. Zhao Pengfei, CEO of Kangling Medical, commented: "I am excited to enter into an agreement to work with a company of such strength and international vision as Shineco. We believe that changing demographics, which has resulted in an older population, coupled with the information age has increased the public's awareness of healthcare issues and medical needs which our agreement is designed to address, as it will bring existing and new medical products to patients who need them. The cooperation between our two parties will expand our global sales channels and Shineco’s resources will vastly improve the research and development capabilities of Kangling Medical.”
About Shineco, Inc.
Shineco, Inc. (“Shineco” or the “Company”) aims to ‘care for a healthy life and improve the quality of life’, by providing safe, efficient and high-quality health products and services to society. Shineco has researched and developed 33 vitro diagnostic reagents and related medical devices to date, and the Company also produces and sells healthy and nutritious food. For more information about Shineco, please visit www.biosisi.com.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Forward-looking statements should not be relied upon because they are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Examples of forward-looking statements include, among others, statements we make regarding the innovativeness and market position of our products and services, our competitive strengths. You are cautioned not to rely on any forward-looking statements. Actual results may differ materially from historical results or those indicated by the forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with the Company’s ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the ability to obtain all necessary regulatory approvals in the jurisdictions where it intends to market and sell its products the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulations, economic conditions, the impact of the COVID-19 pandemic, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Shineco encourages you to review other factors that may affect its future results in its filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based only on information currently available to us and speak only as of the date of this press release, and Shineco assumes no obligation to update any forward-looking statements except as required by the applicable rules and regulations.
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