Shineco, Inc. Enters into Hemp Fiber Preliminary Processing Sales Framework Contract with Shanxi Oasis Textile Co., Ltd.
December 04 2019 - 9:00AM
Shineco, Inc. ("Shineco" or the "Company"; NASDAQ: TYHT), a
producer and distributor of Chinese herbal medicines, organic
agricultural produce, specialized textiles, and various health and
well-being focused plant-based products in China, announced
today that the Company, through its subsidiary Shineco China Hemp
Technology Co., Ltd.(“SCHT”), has entered into a 500,000 mu
(approximately 82,348 acres) hemp fiber preliminary processing
sales framework contract (the “Contract”) with Shanxi Oasis Textile
Co., Ltd.(“Oasis”), one of the largest enterprises in China that
produces textiles of hemp [and is the National Textile Industry
Hemp Product Development Base.
SCHT is a biotechnology enterprise focusing on
industrial hemp comprehensive utilization with RMB200 million
registered capital. The Company holds 60% of the shares of SCHT and
is the controlling shareholder of SCHT. SCHT is located in the
Jinzhong Development Zone of Shanxi's Transition and Comprehensive
Reform Demonstration Zone, which has a history of over 2800 years’
of agricultural cultivation, development and utilization of
industrial hemp. The Company plans to build a comprehensive
industrial chain of industrial hemp by applying the traditional
local craftmanship. The total scale of the project is estimated to
reach 500,000 mu (approximately 82,348 acres). The harvest of
industrial hemp has been completed this year and the construction
of the project is expected to be gradually completed in the next
three years.
Mr. Yuying Zhang, Chairman and Chief Executive
Officer of Shineco, commented, “Shineco officially entered into the
industrial hemp industry this year and first established a
CBD-based product system in Heilongjiang Province, China. Now we
have integrated the industrial hemp resources in Shanxi Province
and established SCHT to gradually achieve comprehensive use of
industrial hemp. We applied advanced technology to the traditional
industry hemp industry, which extends the application of industrial
hemp to hemp fiber textiles, antibacterial and environmentally
friendly building materials, hemp seed oil and protein powder,
oligopeptide as well as industrial hemp essential oil.”
Mr. Zhang continued, “Our innovation
technologies greatly add to the value of industrial hemp. We will
increase the economic benefits of extracting and processing
industrial hemp from less than RMB3,000 to more than RMB40,000 per
mu, which increases the output value by more than 10 times. We
expect to achieve RMB20 billion output value after the completion
of the entire project.”
About Shineco, Inc.
Incorporated in Delaware in August
1997 and headquartered in Beijing, China, Shineco is
a holding company. Through its subsidiaries and variable
interest entities, Shineco undertakes vertically- and
horizontally-integrated production, distribution, and sales
channels to provide health and well-being focused plant-based
products in China. Utilizing modern engineering technologies
and biotechnologies, Shineco produces, among other products,
Chinese herbal medicines, organic agricultural produce, and
specialized textiles. For more information about Shineco, please
visit http://tianyiluobuma.com.
Forward-Looking Statements
This press release contains information about
Shineco's view of its future expectations, plans and prospects that
constitute forward-looking statements. Actual results may differ
materially from historical results or those indicated by these
forward-looking statements as a result of a variety of factors
including, but not limited to, risks and uncertainties associated
with its 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 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 regulation, economic conditions, 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 Shineco's
registration statement and in its other filings with the Securities
and Exchange Commission.
For more information, please contact:
Tina Xiao Ascent Investor Relations LLC Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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