Shineco, Kangling Medical Create New Medical Products Company

Shineco Inc.’s wholly owned subsidiary, Shineco Life Science Research Co. Ltd., has signed a joint venture cooperation agreement with Yangzhou Kangling Medical Co. Ltd. to form the joint venture firm Shangkang Life Science and Technology (Jiangsu) Co. Ltd. The joint venture is being formed to improve the delivery of healthcare services and medical products throughout China.
 
The agreement stipulates Shangkang Life Science’s business activities—namely, R&D, and the production and sale of medical equipment and personal protective equipment. Shangkang Life Science will be jointly capitalized with RMB 10 million (approximately $1.4 million), where 51% of the capital contributed will be provided by Shineco Life Science and 49% of the capital contributed will be provided by Kangling Medical. The agreement also addresses Shangkang Life Science’s business scope, organizational structure, financial planning and accounting, governance oversight, and management and staffing.

“We are pleased to have entered into this agreement with Kangling Medical and view it as a very important step in our corporate evolution,” Shineco CEO Jennifer Zhan said. “As Shineco is developing medical treatment centers and community healthcare projects in China, we believe that the integration of these businesses with Kangling Medical’s medical products business is a perfect fit. We believe that our working with Kangling Medical will result in synergies that will vastly benefit the new joint venture.”
 
Kangling Medical has excellent R&D capabilities which is supported by its culture of independent innovation. Kangling Medical is committed to developing medical equipment, has multiple Chinese national Class 2 medical device licenses, and engages in R&D-led production and sales. Kangling Medical, formerly known as Jiangdu Medical Electronic Equipment Enterprise, was established in 1997 in Jiangsu Province, China, and the Kangling brand is recognized in China for its premier medical products. 
 
“I am excited to enter into an agreement to work with a company of such strength and international vision as Shineco,” Kangling Medical CEO Zhao Pengfei stated. “We believe that changing demographics, which has resulted in an older population, coupled with the information age has increased the public’s awareness of healthcare issues and medical needs which our agreement is designed to address, as it will bring existing and new medical products to patients who need them. The cooperation between our two parties will expand our global sales channels and Shineco’s resources will vastly improve the research and development capabilities of Kangling Medical.”
 
Shineco Inc. provides health products and services to society. Shineco has researched and developed 33 diagnostic reagents and related medical devices to date, and the company also produces and sells healthy and nutritious food.