Shineco, Inc. (“Shineco” or the “Company”; NASDAQ: SISI), a
producer and distributor of Chinese herbal medicines, organic
agricultural and other biotech products, announced that on March 4,
2022, the Company has signed a strategic cooperation framework
agreement (the “Agreement”) on Shineco’s Weifang Life Science
Industrial Park Project (the “Project”) with the Development
Service Center of Weifang Binhai Science and Technology Innovation
Park in Shandong Province to build one of China's first city-level
tumor classification diagnosis and treatment centers and an online
telemedicine service platform, which would constitute Shineco’s
tumor diagnosis and treatment platform. The Company expects to
complete the construction of its first city-level tumor
classification diagnosis and treatment center (the “Shineco
Diagnosis and Treatment Center” or “Center”) by the end of 2022.
Through leverage respective advantages and resources, both parties
expect to jointly build the Center and promote the implementation
of digital medical care, internet hospitals, and the research and
development of innovative medicine and devices.
Pursuant to the Agreement, subject to obtaining
adequate funding, Shineco expects to invest a total of US$500
million in its Life Science Industrial Park Project, US$100 million
of which will be used in building Shineco’s Diagnosis and Treatment
Center as part of the Project. In order to implement this
Agreement, Shineco will seek to raise funds to be used for the Life
Science Industrial Park Project. The cooperation marks the official
launch of the Three-Year Development Plan of Shineco Yikang Digital
Tumor Diagnosis (the “Plan”) and demonstrates the Company’s actions
in practice.
Furthermore, Shineco would like to establish its
digital tumor diagnosis and treatment platform to potentially
connect a total of ten Shineco’s city-level tumor classification
diagnosis and treatment centers and more than 90 district and
county-level hospitals that would collaborate with Shineco’s tumor
classification diagnosis and treatment centers in the future. At
this moment, Shineco has formed its plan to build one Shineco
Diagnosis and Treatment Center and may or may not construct the
additional nine tumor diagnosis and treatment centers.
Through building an advanced medical laboratory,
an oncologists group, and an internet hospital in the anticipated
digital tumor diagnosis and treatment platform and Shineco
Diagnosis and Treatment Center, the Company seeks to empower one
public hospital in the central area of Weifang and establish a
network of local hospitals to cover the population of 10 million
people in nine cities and counties successively, which are under
the jurisdiction of Weifang, such as Linqu, Anqiu and Qingzhou.
Once the digital classification diagnosis and treatment model
established, the tumor diagnosis and treatment platform and
centers, if and when established, would allow patients in Weifang
to benefit from high-quality medical resources and services
locally, such as accurate early tumor screening, drug screening and
other medical tests, professional diagnosis, and treatment, which
are the same level as the top-tier hospitals in major cities like
Beijing, Shanghai, and Guangzhou.
Setting up Shineco Diagnosis and Treatment
Center as the first city-level tumor classification diagnosis and
treatment center in Weifang demonstrates the Company’s optimism
about the local business environment and superior medical
facilities. There are more than 220,000 cancer patients in Weifang,
with an increase of about 31,000 new cases every year. Once built
and established, the Shineco Diagnosis and Treatment Center can
provide early detection and diagnosis of tumors for 200,000 tumor
medical tests and treat 100,000 tumor patients annually. Based on
an article from China Jilin Network reported on May 21, 2016, the
medical expenses of tumor patients was approximately RMB150,000 per
person in China. Shineco estimated when its Center in operation, it
is likely to reduce such expenses to RMB100,000 per person, which
would result in a total reduction of up to RMB5 billion in medical
expenses for tumor patients assuming the Center would treat 100,000
tumor patients annually.
According to the 14th Five-Year Plan on Public
Service Plan released by the State Council of PRC in 2022, the
development of regional medical centers, core clinical specialties,
and classification diagnosis system is the key to achieving
balanced distribution of medical resources. Upon completion, the
Shineco Diagnosis and Treatment Center in Weifang will be a
positive response to the 14th Five-Year Plan on Public Service Plan
released by the State Council of PRC. Shineco initiated its tumor
classification strategy in October 2021, following the Action Plan
for Improving the Quality of Cancer Diagnosis and Treatment
released by The National Health Commission of PRC (the “Action
Plan”). The Action Plan indicated that the improvement of cancer
diagnosis and treatment is one of the key work projects for local
health departments between 2021 and 2024, and tumor diagnosis and
treatment system should be incorporated into the construction of
classification diagnosis and treatment system, which will further
improve the treatment quality and benefit patients in China.
Upon completion we expect that the Shineco
Diagnosis and Treatment Center will introduce a large number of
advanced technologies for tumor testing and treatment, including
CTC circulating liquid biopsy equipment, drug sensitivity detection
technology of patient derived tumor organoids (PDO), capsule
endoscopy robots, PET medical imaging equipment, and digital PCR
technology platforms, which are usually only available in top-tier
hospitals in first-tier cities. Moreover, the empowered doctor
group will greatly improve the local tumor diagnosis and treatment
qualities in Weifang.
Ms. Jennifer Zhan, CEO of Shineco, commented,
“This cooperation marks our progress of entering into the field of
tumor treatment and the launch of our digital tumor diagnosis and
treatment platform as we aim to build and establish one of the
first digital tumor diagnosis and treatment platforms in China. We
are confident in our investment and believe that Shineco will use
its best efforts to become an industry leader in pushing the
general development of tumor classification diagnosis centers and
relevant upstream and downstream industries. Our goal is to provide
the high-quality medical resources and treatment to tumor patients
in China with affordable prices.”
About
Shineco, Inc.
Incorporated in Delaware in August 1997 and
headquartered in Beijing, China, Shineco is a holding company.
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://www.biosisi.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. You are cautioned not to
place undue reliance on these 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, 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
registration statement and in its other filings with the Securities
and Exchange Commission. The forward-looking statements in this
press release are based on current expectations and Shineco assumes
no obligation to update these forward-looking statements except as
required by the applicable rules and regulations.
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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