On Wednesday, Shineco, Inc. ( SISI ) announced that its subsidiary, Fuzhou Media, has signed three-year Distribution Agreements with six companies for its water-soluble phospholipid concentrate health food beverage, targeting over $30 million in sales.

The stock is trading lower following the news report.

Phospholipids are organic compounds crucial in food and other industries. They form cell membrane bilayers, regulating molecule passage and supporting cell growth and physiological processes due to their health benefits.

The Company patented a physical extraction technology for phospholipids, using water solvent chromatography ultrafiltration to preserve natural structures and achieve efficient, cost-effective extraction without chemical solvents.

Shineco ( SISI ) aims to research and develop applications for water-soluble phospholipids in various fields. The global phospholipids market, valued at $3.7 billion in 2021, is projected to reach $7.3 billion by 2032.

“The Company’s sustained research and development efforts have developed a production process that is expected to open up a potentially vast new market for our health food beverage,” commented Mrs. Jennifer Zhan, CEO of Shineco ( SISI ).

“We have commenced mass production of phospholipids that addresses the current shortage of supply to meet the expected higher demand for this health food beverage, and we are intent upon expanding the market for this uniquely healthy product. Our strategic plan is to develop products and services in the healthcare and medical sectors that will generate a diversified revenue stream with the goal of maximizing shareholder returns,” added Zhan.

Price Action: At the last check on Wednesday, SISI shares were trading lower by 39.90% at $2.71.