BEIJING, Sept. 10, 2025 -- 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.
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For more information, please contact:
Shineco, Inc.
Email: secretary@shineco.tech
Phone: +86-10-68130220
