The Acquisition is Expected to Create Immediate Synergies with the Company’s Existing Medical Device Business
BEIJING, March 25, 2025 (GLOBE NEWSWIRE) -- Shineco, Inc. (“Shineco” or the “Company”; NASDAQ: SISI), a provider of innovative diagnostic medical products and related medical devices, announced today that on March 20, 2025, Shineco Life Science Group Hong Kong Co., Limited (“Shineco Life Science”), a subsidiary of the Company, entered into a Stock Purchase Agreement (“SPA”) with Yi Yang (the “Seller”), for 75% of an equity interest in FuWang (HK) International Company Limited (“FuWang Company”). The Seller is the current and only shareholder of FuWang Company, which specializes in the R&D, manufacturing, and commercialization of medical devices.
Pursuant to the SPA, Shineco Life Science will acquire a 75% equity interest in FuWang Company. In consideration of the acquisition, Shineco Life Science shall pay the Seller approximately US$ 8.8 million in cash, the Company shall issue 3,400,000 shares of the Company’s common stock, and it will transfer the 71.42% equity interest in Dream Partner Limited it holds to the Seller.
FuWang Company specializes in the R&D, production and commercialization of Class II and III medical devices, including biochemical analyzers, patient monitors and mobile medical imaging workstations. FuWang Company holds proprietary intellectual property rights and maintains an extensive sales network across multiple Chinese provinces and municipalities, with a particularly strong market presence in Gansu, Henan, Jiangsu, and Shanxi provinces. FuWang Company plans a strategic expansion into integrated health management, combining preventive health screenings with emergency response systems. Leveraging cloud computing and AI technologies, Fuwang Company aims to establish a seamless pre-hospital to in-hospital critical care network, implementing tiered treatment protocols for life-threatening conditions. According to the Seller, FuWang Company will achieve steady financial growth over the next three years, with revenue targets of US$11.03 million (2025), US$13.79 million (2026) and US$17.24 million (2027). Corresponding net profit goals are set at US$1.10 million (2025), US$1.38 million (2026) and US$1.72 million (2027).
Jennifer Zhan, the CEO of Shineco, commented, “We are enthusiastic about our acquisition of a majority position of FuWang Company for its strategic positioning in the medical devices sector and its sales capabilities and channel management expertise. In addition, FuWang Company’s competitive strengths are expected to create immediate synergies with Shineco’s existing business portfolio, and its distinctive operational capabilities is anticipated to greatly enhance Shineco’s overall financial performance,” Jennifer Zhan concluded.
More complete information of the SPA is set forth in the Form 8-K and its exhibits filed with the Securities and Exchange Commission on March 20, 2025.
About Shineco, Inc.
Shineco Inc. (“Shineco” or the “Company”) aims to ‘care for a healthy life and improve the quality of life’, by providing safe, efficient and high-quality health and medical products and services to society. Shineco, operating through subsidiaries, has researched and developed 33 vitro diagnostic reagents and related medical devices to date, and the Company also produces and sells healthy and nutritious foods. For more information about Shineco, please visit www.biosisi.com/.
Forward-Looking Statements
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