Shineco, Inc. Announces Progress with CBD Product System Construction
December 09 2019 - 9:00AM
Shineco, Inc. ("Shineco" or the "Company"; NASDAQ: TYHT), a
producer and distributor of Chinese herbal medicines, organic
agricultural produce, hemp products, and various health and
well-being focused plant-based products in China, announced
today that its wholly owned subsidiary Tenjove NewHemp Biotech Co.,
Ltd. ("TNB") has achieved progress in its industrial product system
which focuses on cannabidiol development (“CBD”). The Company has
achieved good progress with hemp planting, product research and
development, and technical supports.
In April 2019, TNB entered into a strategic
cooperation agreement with the Hemp Research Institute of the
Chinese Academy of Agricultural Sciences ("HRI"). Both parties
spent 3 years jointly cultivating Xinma No.1 (M11), a high-quality
industrial hemp seed. M11 has been tested by Daqing branch of
Heilongjiang Academy of Science numerous times and has proved that
the CBD composition of M11 is much higher than that of similar
products.
With regard to product research and development,
TNB cooperated with Heilongjiang Harbin Beima Technology
Development Co., Ltd.(“HBTD”). The Company and HBTD has developed a
series of CBD mask beauty products and improved the industrial
chain of food products of CBD black gold powder including the
product research and development, production and sale.
The total investment of Shineco in CBD product
system project (the “Project”) is about RMB 150 million
(approximately USD 22 million). The direct income of the Project
exceeds RMB 3000 per mu, which is of great significance to the
local economic restructuring and industrial transform.
In the area of technical support, TNB and
Jiangsu Hagong Pharmaceutical Machinery Technology Co.,
Ltd.(“JHPMT”), which focuses on the research and development of
intelligent equipment, jointly developed the first industrial hemp
intelligent processing equipment (the “Equipment”) in China. At
present, the technical development is almost finished. After the
official launch of the Equipment, the Company will become the
national pioneer in both the processing throughput and extraction
rate of the industrial hemp.
Mr. Yuying Zhang, Chairman and Chief Executive
Officer of Shineco, commented, “Shineco CBD product has great
market prospects and the CBD product system has great industrial
value. It is an important part of Shineco’s strategic development
plan in the industrial hemp industry. In the future, Shineco will
continue to innovate in the field of industrial hemp, utilize seeds
with 100% independent property rights and leading planting
technology, build the whole industrial chain system of industrial
hemp. This will maximize industrial hemp’s value, constantly
improve the current backward situation of industrial hemp
cultivation and processing in China, and promote local development,
increase agricultural efficiency, increase farmers' income and
create more and better social benefits for local economic
development.”
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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