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BEIJING - Shineco Inc. (NASDAQ:SISI), a micro-cap biotechnology company with a market value of $5.61 million, announced Friday that its subsidiary Xi’an Dong’ao Health Management has signed an $8.7 million technology services contract with Xinke Future Biotechnology for research on microalgae-derived extracellular vesicles technology. The stock has shown recent momentum with a 20% gain over the past week, according to InvestingPro data.
The contract runs from August 25, 2025, to December 31, 2026, with an initial payment of $560,000 already received. The agreement aims to develop a comprehensive research and development system spanning from basic research to product commercialization.
Separately, a delegation from Singapore-based biotechnology company BICC completed a site visit to Dong’ao Health on September 10. The parties agreed to establish a joint laboratory and technology exchange mechanism, according to the company’s press release.
"This contract is a powerful validation of our strategy to monetize cutting-edge research and create near-term revenue," said Jennifer Zhan, CEO of Shineco. The company has demonstrated strong revenue growth, posting a 1133% increase in the last twelve months, though InvestingPro analysis indicates challenges with cash burn and debt management. InvestingPro subscribers have access to 15+ additional key insights about Shineco’s financial health.
The BICC delegation, which visited from September 6-10, included the company’s chairman, CEO, CFO, chief scientist, and a shareholder. They inspected Dong’ao Health’s facilities including its Health and Wellness Center and Cell R&D Center.
The companies plan to integrate BICC’s network of over 3,000 agents in Southeast Asia with Dong’ao Health’s domestic wellness channels and co-establish stem cell transfusion centers.
Shineco, which trades on the Nasdaq, describes itself as a developer of induced pluripotent stem cell technology platforms and extracellular vesicle-derived products. The company currently operates with a weak financial health score of 1.64 out of 5, based on InvestingPro’s comprehensive analysis, with particular concerns around its current ratio of 0.72, indicating potential liquidity challenges.
The company said it will provide regular updates on the contract’s execution and the collaboration with BICC in accordance with Nasdaq disclosure rules.
In other recent news, Shineco Inc. reported significant advancements in its business operations. The company announced a breakthrough in the mass production of high-purity, highly active free-form soybean phospholipids through its subsidiary, Fuzhou Meidashan Biotechnology. This development was achieved using Shineco’s proprietary APCC-UF extraction technology, meeting international standards with a phospholipid content of 97.8%. Additionally, Shineco has entered into a strategic cooperation agreement with BICC Pte Ltd to enhance the real-world asset ecosystem by integrating blockchain technology for cell assets. Another partnership with Plus Me Limited aims to tokenize biological cellular assets, allowing digital custody on the Ethereum blockchain. Shineco also launched a new Biological Cell Digital Business Division to further integrate blockchain technology into its operations, appointing Lin Hongguang as General Manager. Furthermore, the company announced a 50:1 reverse stock split to maintain its Nasdaq listing, reducing its outstanding shares significantly. These recent developments highlight Shineco’s efforts to innovate and expand its technological capabilities.
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