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

Rhea-AI Summary

Shineco (NASDAQ: SISI) has achieved a major breakthrough in phospholipid production through its subsidiary Fuzhou Meidashan Biotechnology. The company's proprietary APCC-UF pure physical extraction technology enables large-scale production of high-purity, highly active free-form soybean phospholipids.

The technology delivers impressive metrics: 97.8% total phospholipid content, 50.2% phosphatidylcholine (PC) content, and further purification can achieve ≥99% phospholipid purity and ≥90% PC content. The company has validated production at a thousand-ton scale, with plans to expand to ten-thousand-ton capacity, breaking the foreign monopoly in high-purity phospholipids production.

This breakthrough positions Shineco to compete in pharmaceutical intermediates, mRNA vaccine materials, and high-end skincare markets, with the global pharmaceutical phospholipid market projected to grow at a CAGR of over 15% in the next five years.

Positive

• First global achievement in scaling high-activity phospholipids from gram-level to ton-level production
• Breakthrough technology achieves 97.8% phospholipid purity with potential for ≥99%
• Significantly lower production costs compared to traditional methods
• Validated thousand-ton production capacity with plans for ten-thousand-ton expansion
• Positioned to compete in high-growth markets with 15% CAGR
• Technology eliminates chemical solvents and maintains natural bioactivity

Negative

• Will require time to establish market presence against established international competitors
• Success depends on successful capacity rollout and customer adoption
• International market access still needs to be secured

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

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SOURCE Shineco,Inc.

FAQ

What is Shineco's breakthrough in phospholipid production?

Shineco has developed APCC-UF technology that enables mass production of high-purity phospholipids with 97.8% total phospholipid content and 50.2% phosphatidylcholine content, achieving industrial-scale production previously limited to gram-level quantities.

How does SISI's phospholipid technology compare to competitors?

Shineco's technology matches or exceeds the quality of top international producers like Lipoid while achieving significantly lower costs and higher production volumes, transitioning from gram-level to thousand-ton scale production.

What markets will Shineco's phospholipid breakthrough impact?

The technology will impact mRNA vaccine delivery, pharmaceutical formulations, liposomal drug development, functional foods, and high-end skincare markets, with potential applications in Alzheimer's, liver protection, and cancer therapy.

What is the market growth potential for Shineco's phospholipid products?

The global pharmaceutical phospholipid market is projected to grow at a CAGR of over 15% in the next five years, with potential expansion from a billion-dollar bulk market to a hundred-billion-dollar pharmaceutical and health sector.

How does Shineco's APCC-UF technology work?

The technology uses 70-80% pure water as solvent with fresh soybean colloid, combining large-column chromatography and ultrafiltration membrane technology for single-pass extraction under mild physical conditions, eliminating chemical solvents.