Shineco breaks foreign monopoly with mass production of phospholipids

BEIJING - Shineco Inc. (NASDAQ:SISI), a biotechnology company currently trading below its InvestingPro Fair Value despite experiencing significant market challenges with a 98% decline over the past year, announced Wednesday that its subsidiary, Fuzhou Meidashan Biotechnology, has achieved large-scale production of high-purity, highly active free-form soybean phospholipids using its proprietary APCC-UF pure physical extraction technology.

The breakthrough addresses a significant technical challenge in phospholipid production. According to the company, testing by multiple authoritative institutions confirms the product’s metrics meet international standards, with total phospholipid content of 97.8%, phosphatidylcholine content of 50.2%, and minimal peroxide value.

Traditional phospholipid extraction methods have relied on either chemical solvents that compromise bioactivity or complex physical methods that limit production to laboratory scale. Shineco’s technology uses primarily water as a solvent and combines large-column chromatography with ultrafiltration membrane technology to achieve precise extraction under mild physical conditions.

The company reports its technology has been validated on a thousand-ton production line, with plans to expand to ten-thousand-ton capacity. This scale-up represents a transition from gram-level research products to ton-level industrial raw materials for phospholipids. With revenue growth of over 1,000% in the last twelve months but a concerning gross profit margin of just 8%, the expansion comes at a critical time for the company’s financial health. InvestingPro data reveals 15+ additional key metrics and insights about Shineco’s financial position.

The advancement could impact multiple industries requiring high-quality phospholipids, including pharmaceuticals, functional foods, and skincare products. Specific applications mentioned include mRNA vaccine delivery, liposomal drug development, and treatments for various health conditions.

The global pharmaceutical phospholipid market is projected to grow at a compound annual rate exceeding 15% over the next five years, according to information provided in the company’s press release statement.

Shineco Inc. focuses on induced pluripotent stem cell technology platforms and extracellular vesicle-derived products.

In other recent news, Shineco Inc. has been actively expanding its blockchain initiatives and financial strategies. The company recently completed a $13.5 million private placement of common stock, issuing 18 million shares to non-U.S. investors at $0.75 per share. This move was part of a securities purchase agreement disclosed earlier, contributing significant capital to Shineco’s operations. In a strategic shift, Shineco also announced a 50:1 reverse stock split, effective August 11, 2025, aimed at maintaining its Nasdaq listing by reducing outstanding shares from approximately 45.7 million to about 914,455 shares.

Additionally, Shineco has entered into several partnerships to integrate blockchain technology with its biological cell assets. A cooperation agreement with BICC Pte Ltd focuses on promoting "on-chain cell assets" and integrating BICC’s stem cell storage services into Shineco’s blockchain system. Another partnership with Plus Me Limited involves tokenizing biological cellular assets using blockchain, ensuring traceability and compliance through digital identifiers. Furthermore, Shineco launched a Biological Cell Digital Business Division, appointing Lin Hongguang as General Manager to oversee the integration of biological cell assets with blockchain technology.

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