Shineco launches blockchain division for biological cell assets

BEIJING - Shineco Inc. (NASDAQ:SISI), a manufacturer of induced pluripotent stem cell technology platforms with a market capitalization of $4.65 million, announced Wednesday the establishment of a Biological Cell Digital Business Division to integrate its biological cell assets with blockchain technology. According to InvestingPro data, the company faces significant operational challenges, with a concerning cash burn rate and substantial debt obligations.

The company has appointed Lin Hongguang, formerly Chief Researcher at the Korea Digital Currency Research Institute, as General Manager of the new division. Lin brings experience in blockchain and digital asset industries, specializing in digital asset compliance and token design.

According to the company, the division aims to build a blockchain-based ecosystem for biological cell assets with two primary goals: promoting standardized management of cell assets through an induced pluripotent stem cells bank with blockchain tracing capabilities, and developing industry blockchain tools to address circulation inefficiencies.

"Bio-cell technology is a core driving force of the ’big health’ industry, but the industry currently faces challenges such as low global circulation efficiency, difficulty in cross-regional collaboration, and high user service thresholds," said Jennifer Zhan, CEO of Shineco, in a press release statement. The company’s ambitious plans come amid challenging financial performance, with InvestingPro data showing a 98.85% decline in stock price over the past year and negative EBITDA of -$10.5 million in the last twelve months.

The company claims the initiative will make cell technology services more accessible globally while potentially increasing Shineco’s market share in biological cell products.

Lin’s responsibilities will include developing standards for on-chain cell asset listings, expanding ecosystem collaborations, and facilitating compliance filings as part of building a global distribution network for biological cell products.

Shineco’s core business encompasses induced pluripotent stem cell technology platforms and extracellular vesicle-derived products. Despite trading below its Fair Value according to InvestingPro analysis, the company’s financial health score remains weak, with a current ratio of 0.72 indicating potential liquidity concerns. InvestingPro subscribers have access to 18 additional key insights about Shineco’s financial position and market performance.

In other recent news, Shineco, Inc. announced a 50:1 reverse stock split of its common stock to maintain its Nasdaq listing. This move will reduce the outstanding shares from approximately 45.7 million to about 914,455 shares. Additionally, Shineco completed a $13.5 million private placement of common stock, issuing 18,000,000 shares to non-U.S. investors at $0.75 per share. The private placement was conducted under a securities purchase agreement disclosed earlier in June 2025. Furthermore, Shineco’s CEO Jennifer Zhan and CFO Sai (Sam) Wang have launched a stock purchase program, planning to acquire up to $2 million worth of the company’s common stock. The purchase price is capped at $1.50 per share, indicating the executives’ confidence in the company’s valuation. These developments reflect significant financial maneuvers by Shineco to bolster its market position and align with strategic goals.

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