Shineco Inc., a developer and commercializer of induced pluripotent stem cell (iPSC) technology platforms, announced two major strategic advances. Its subsidiary, Xi'an Dong'ao Health Management Co., Ltd. ("Dong'ao Health"), has signed a technology services contract valued at US$8.7 million with Xinke Future Biotechnology (Bazhou) Co., Ltd. for the research and development of "microalgae-derived extracellular vesicles" technology. Separately, a delegation from Singapore's leading biotechnology company, BICC, completed a productive site visit to Dong'ao Health on September 10. The parties reached a broad consensus on key collaboration areas, including establishing a joint laboratory and a technology exchange mechanism, marking a substantive step forward in Shineco's "technology industrialization and global synergy" strategy in the biocellular field.

As the core entity executing Shineco's strategy in the biocellular market, Dong'ao Health's new contract focuses on cutting-edge microalgae-derived extracellular vesicles technology. The service period runs from August 25, 2025, to December 31, 2026, with the goal of building a comprehensive, end-to-end R&D system from basic research to process development and product translation. Specific tasks include functional validation during the basic research phase; breaking bottlenecks in large-scale (e.g., hectoliter-scale) separation and extraction processes to achieve mass production; and developing at least two therapeutic products with full regulatory support to effectively transition the technology from the lab to the market.

This contract provides clear near-term financial momentum for Shineco. The total value of US$8.7 million will be paid in phases, with an initial payment of US$560,000 already received. Subsequent payments are tied to R&D milestones, ensuring stable revenue recognition and creating long-term profit growth drivers through the "develop once, deploy multiple times" nature of the technology.

"This contract is a powerful validation of our strategy to monetize cutting-edge research and create near-term revenue," said Jennifer Zhan, CEO of Shineco. "Coupled with our strategic alliance with BICC, it provides two clear, synergistic engines for growth that strengthen our domestic business while accelerating our international expansion."

Concurrent with this R&D progress, Shineco's international cooperation achieved a key milestone. BICC sent a high-level delegation to Dong'ao Health from September 6-10, including Chairman Mr. Yang Shengnan, CEO Ms. Barbara Tan, CFO Mr. Jon Lim, Chief Scientist Mr. Chen Yanming, and shareholder Mr. Chen Laifu.

The delegation conducted on-site inspections of Dong'ao Health's four core segments—the Health and Wellness Center, Cell R&D Center, under-construction Alzheimer's Disease Care Town, and partner "Anhe Meige Medical Aesthetic Hospital"—to evaluate potential synergies. The parties agreed to establish a joint laboratory, implement a technology exchange mechanism, integrate BICC's network of over 3,000 agents in Southeast Asia with Dong'ao Health's domestic wellness channels, and co-establish stem cell transfusion centers to promote standardized clinical services.

These dual developments exemplify Shineco's two-pronged strategy of "technology development plus ecosystem synergy." Technologically, the partnership combines complementary R&D capabilities and application scenarios. From a market perspective, the contracted revenue and BICC's international channels create a strategy of "a solid domestic base + expansion into new international markets." Financially, the deal improves short-term cash flow and enhances long-term profitability through technology leverage and market expansion.

"These advancements demonstrate the effective operation of our complete value chain from technology to industry to capital," CEO Jennifer Zhan emphasized. "Shineco remains committed to deepening our technology industrialization efforts and advancing international partnerships to deliver sustainable returns for our shareholders."

Shineco will provide regular updates on the contract's execution and the collaboration with BICC in accordance with NASDAQ disclosure rules.