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Shineco Achieves Mass Production of High-Purity Physical Phospholipids, Breaking Foreign Monopoly and Unlocking Innovation Across Industries

MWN-AI** Summary

Shineco Inc. (NASDAQ: SISI) announced a significant advancement in biotechnology with its subsidiary, Fuzhou Meidashan Biotechnology Co., Ltd., successfully achieving mass production of high-purity free-form soybean phospholipids. This milestone marks a pivotal breakthrough in overcoming a longstanding foreign monopoly in the field of natural active phospholipids, using an innovative extraction method called APCC-UF. This proprietary technology utilizes pure water and soybean colloid, eliminating chemical solvents that compromise the phospholipid's structure and bioactivity.

Traditional methods of phospholipid extraction rely on chemical solvents or complex physical processes, yielding products that are often not scalable for mass production. Shineco's APCC-UF technology simplifies this process, achieving high-purity products that meet or exceed international standards. Independent testing confirms a phospholipid content of 97.8% and an impressive phosphatidylcholine (PC) content of 50.2%, with no detectable harmful residues.

Shineco's breakthrough has significant commercial implications, establishing a stable and sustainable source of phospholipid raw materials across various sectors, including pharmaceuticals, nutraceuticals, and skincare. This technology is critical for mRNA vaccine delivery and other advanced drug formulations, meeting increasing demand in a rapidly growing global market expected to grow by over 15% annually.

By transitioning phospholipids from research-grade products to industrial-scale applications, Shineco positions itself to disrupt existing markets dominated by international competitors. This achievement not only enhances Shineco’s market positioning but is also projected to improve the company’s gross margin and overall valuation. Observers recommend monitoring Shineco's strategic partnerships and production capacity expansions as they pave the way for substantial growth and industry leadership.

MWN-AI** Analysis

Shineco Inc. (NASDAQ: SISI) has recently made headway in the high-purity phospholipid market by successfully achieving mass production of high-purity physical phospholipids through its innovative APCC-UF extraction technology. This breakthrough not only challenges the longstanding foreign monopoly but also propels Shineco into a strategic position in the burgeoning global pharmaceutical and nutraceutical industries.

The significant technical milestone, validated by authoritative tests, underscores Shineco's ability to produce superior quality phospholipids that meet or exceed international standards. The substantial production cost reduction, paired with the promise of 99% purity and high bioactivity, positions the company ideally to cater to a lucrative market projected to grow at a CAGR of over 15% in the next five years. This places Shineco directly in the path of rising demands for advanced applications, particularly in mRNA vaccine delivery systems and nutraceuticals.

For investors, Shineco represents a compelling opportunity with potential for significant scarcity value and revenue growth. Given the global pivot toward sustainable, high-quality biomanufactured products, Shineco's capacity rollout and downstream partnerships will serve as critical indicators to monitor. The shift from traditional production methods to Shineco's innovative approach demonstrates not only a competitive advantage but also opens new avenues for revenue generation within its core markets—pharmaceuticals, functional foods, and skincare.

Investing in Shineco at this stage may present a solid long-term opportunity due to its transformative technological developments and promising market prospects. However, investors should remain vigilant, tracking the execution of its capacity expansion plans and broader market penetration to fully capitalize on its growth trajectory.

**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.

Source: PR Newswire

PR Newswire

BEIJING , Sept. 10, 2025 /PRNewswire/ -- Shineco Inc. (NASDAQ: SISI) ("Shineco" or the "Company"), a leading developer of induced pluripotent stem cell (iPSC) technology platforms, today announced that its subsidiary, Fuzhou Meidashan Biotechnology Co., Ltd., has successfully achieved large-scale production of high-purity, highly active free-form soybean phospholipids. This breakthrough was made possible through its proprietary APCC-UF pure physical extraction technology, overcoming a persistent global technical challenge in the field. Testing by multiple authoritative institutions confirms that the product's key metrics meet internationally leading standards, providing robust technical support for the global upgrade of the natural active phospholipid industry.

Historically, the extraction of natural phospholipids has relied on two primary methods: the chemical solvent method, which is low-cost and scalable but uses organic solvents that compromise the phospholipid's natural amphiphilic structure and bioactivity, limiting its use in pharmaceuticals and high-end nutraceuticals; and the traditional pure physical method, exemplified by companies like Avanti (US), Lipoid ( Germany ), and NOF ( Japan ). While techniques like chromatographic fractionation and supercritical extraction yield high-purity, high-activity products, their complexity, low efficiency, and high cost have restricted them to laboratory-scale (gram-level) production for research and specialized uses, preventing mass adoption.

Shineco's APCC-UF technology represents a fundamental breakthrough. It simulates the human internal environment by using 70–80% pure water as the solvent and fresh soybean colloid as the raw material, entirely eliminating chemical solvents. Through innovative large-column chromatography combined with ultrafiltration membrane technology, it achieves single-pass, precise extraction of high-purity active phospholipids under mild physical conditions. Authoritative test reports on the lyophilized product made from the water-soluble phospholipid concentrate show a total phospholipid content of 97.8%, phosphatidylcholine (PC) content of 50.2%, and a peroxide value of 0.00097. No detectable levels of solvent residues, pesticide residues, arsenic, lead, cadmium, mercury, nickel, or aluminum were found. These indicators are comparable to or surpass those of similar research-grade products obtained through traditional chromatographic fractionation techniques from top international entities like Germany's Lipoid. Further purification can yield phospholipid purity ?99% and PC content ?90%, fully retaining natural activity and biocompatibility.

Critically, this technology has completed validation on a thousand-ton production line, with plans to expand to ten-thousand-ton capacity. The single-batch yield is substantially higher, while the average production cost is reduced to a small fraction of that associated with traditional pure physical methods. This milestone marks the first time globally that high-activity phospholipids have transitioned from "gram-level research products" to "ton-level industrial raw materials." It breaks the long-standing technological monopoly held by foreign firms and provides downstream industries—including pharmaceuticals, functional foods, and high-end skincare—with a stable, high-quality, and sustainable source of natural active phospholipid raw materials.

This technological advancement is poised to significantly reshape the global active phospholipid industry. It provides critical material support for mRNA vaccine delivery and liposomal drug development and is expected to play vital roles in pharmaceutical formulations and nutraceuticals for Alzheimer's disease, liver protection, cardiovascular and cerebrovascular health, targeted cancer therapy, wound healing, skin diseases, and scar repair, as well as in cosmetics. Industry experts note that Shineco's technology delivers "research-grade quality at industrial-scale cost," potentially enabling phospholipid applications to expand from a billion-dollar bulk market into a hundred-billion-dollar pharmaceutical and high-value-added health sector. This achievement stands as a model of Chinese technological leadership in high-end biomanufacturing and opens a new competitive front for China's biomanufacturing sector in the global supply chain.

From a commercial standpoint, Shineco's phospholipid products are positioned to compete not only in the existing research-grade market but also to penetrate growth markets such as pharmaceutical intermediates, lipid materials for mRNA vaccines, high-end cellular nutritional intervention, and beauty skincare. The post-COVID-19 expansion of LNP (lipid nanoparticle) delivery technology has spurred demand for phospholipid materials, with the global pharmaceutical phospholipid market projected to grow at a compound annual growth rate (CAGR) of over 15% in the next five years. Leveraging its pure physical technology and cost advantages, Shineco is well-positioned to capture substantial market share in a field currently dominated by international giants.

Analysts suggest that Shineco's technological breakthrough possesses significant scarcity value and commercial potential, likely to transform the Company's business structure and enhance its overall gross margin and valuation. Investors are advised to monitor closely the progress of capacity rollout, downstream customer partnerships, and international market access.

About Shineco, Inc.

Shineco, Inc. is dedicated to improving quality of life through the development and provision of safe, efficient, and high-quality health and medical products and services. The Company's core business focuses on induced pluripotent stem cell (iPSC) technology platforms and extracellular vesicle-derived products. For more information, please visit www.biosisi.com .

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by words such as "may," "will," "should," "could," "intend," "expect," "plan," "budget," "forecast," "anticipate," "believe," "estimate," "forecast," "potential," "continue," "evaluate" or similar words. Forward-looking statements should not be relied upon as they are neither historical facts nor guarantees of future performance. Rather, they are based solely on our current beliefs, expectations and assumptions about future business, future plans and strategies, forecasts, expected events and trends, economics, and other future conditions. Examples of forward-looking statements include, among other things, our innovation and market position in our products and services, our competitive advantages, and our expectation that the 5-minute cardiac test will be one of the leading products in this field to meet the need for test results immediately upon intake. Please do not rely on any forward-looking statements. Actual results may differ materially from those indicated in historical results or forward-looking statements due to various factors, including, but not limited to, the Company's ability to raise additional capital, its ability to maintain and grow its business, the variability of its results of operations, its ability to maintain and enhance its brand, its ability to develop and introduce new products and services, its ability to obtain all necessary regulatory approvals in the jurisdictions in which it intends to market and sell its products, companies to be acquired, successful integration of technology and assets into its portfolio of products and services, marketing and other business development initiatives, industry competition, general government regulations, economic conditions, impact of the COVID-19 pandemic, reliance on key personnel, attracting, hiring and retaining personnel with the technical skills and experience required to meet customer requirements and protecting its intellectual property. Shineco encourages you to review these and other factors that may affect its future performance in its filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based only on information currently available to us and are made only as of the date of this press release, and Shineco undertakes no obligation to update any forward-looking statements, except as required by applicable rules and regulations.

For more information, please contact:

Shineco, Inc.
Email: secretary@shineco.tech
Phone: +86-10-68130220

SOURCE Shineco,Inc.

FAQ**

How does Shineco Inc. SISI's proprietary APCC-UF extraction technology differentiate itself from traditional methods used by competitors like Avanti and Lipoid in producing high-purity phospholipids?

Shineco Inc.'s proprietary APCC-UF extraction technology distinguishes itself by utilizing advanced membrane filtration and extraction processes that offer higher purity and yield of phospholipids compared to conventional methods used by competitors like Avanti and Lipoid.

What specific plans does Shineco Inc. SISI have in place to expand its production capacity from a thousand tons to ten thousand tons, and what impact could this have on its market reach?

Shineco Inc. (SISI) plans to expand its production capacity through investment in advanced technology, strategic partnerships, and increased automation, which could significantly enhance its market reach and enable it to meet growing demand in both domestic and international markets.

With the growing demand for phospholipids in applications such as mRNA vaccine delivery, how does Shineco Inc. SISI plan to secure partnerships with downstream industries to capitalize on this opportunity?

Shineco Inc. (SISI) aims to secure partnerships with downstream industries by leveraging its phospholipid production capabilities, actively engaging in collaborations with pharmaceutical and biotech companies, and showcasing the efficacy of its products in mRNA vaccine delivery.

Given the indication that Shineco Inc. SISI's technology breaks a foreign monopoly, what strategies will the company implement to enhance its competitive advantage in the global phospholipid market?

Shineco Inc. will likely implement strategies such as leveraging proprietary technology, expanding partnerships, enhancing R&D for innovative products, optimizing supply chain efficiency, and focusing on aggressive marketing to secure a strong foothold in the global phospholipid market.

**MWN-AI FAQ is based on asking OpenAI questions about Shineco Inc. (NASDAQ: SISI).

Shineco Inc.

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