Shineco, Inc. Reaches Consensus on Cooperation with Wuchang Municipal Government of Heilongjiang Province

BEIJING, Dec. 16, 2019 (GLOBE NEWSWIRE) -- Shineco, Inc. ("Shineco" or the "Company"; NASDAQ: TYHT), a producer and distributor of Chinese herbal medicines, organic agricultural produce, hemp products, and various health and well-being focused plant-based products in China, announced today that Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, has reached a consensus on cooperation with Vice Mayor Zhang Jianchun of Wuchang municipal government of Heilongjiang Province (the Government) regarding Shineco’s industry hemp development plan in Heilongjiang Province (the “Plan”).

Wuchang City of Heilongjiang Province has a superior geographical location and convenient transportation. It is located 24 kilometers north of Harbin, the provincial capital, and close to Changchun, the capital of Jilin Province. The transportation network of Wuchang includes a Labin Railway that runs through the north and south, and the main highways such as Heida and Hawu. Now Wuchang City has been included in the core development plan of the Harbin-Daqi Industrial Corridor.

Wuchang City has fertile soil with a total arable land area of approximately 3.8 million mu (among which 1.75 million mu are wet land and 2.05 million mu are dry land). It is an important commodity grain base in China and ranked Top 10 advanced counties (cities) by production in China and named Top 5 rice county in China. "Wuchang Rice" has received multiple awards: "Geographical Landmark Protected Products in China", "Certificate of Origin", "Chinese Famous Brand Products", "Chinese Famous Brand Agricultural Products" and "China Well-Known Trademarks". Dry land mainly refers to high-quality black soil which is the most precious soil resource on the earth and only located in four places in the world (the Great Plains of Ukraine, the Mississippi Basin in North America, the Pampas Grasslands in South America and the Northeast Plain in China). Black soil has moderate pH and good permeability for fiber accumulation and formation, which is an excellent place for industry hemp cultivation.

The Government attaches great importance to the Plan and agrees to cooperate with the Company. The Plan is highly consistent with Heilongjiang's industry development plan. The Company has been invited to Wuchang to conduct field inspections to complete the project of Industry hemp comprehensive utilization industrial park as soon as possible, and build an industry hemp industrial chain system. The Government believes that this move will increase the income of local farmers and promote the adjustment of the agricultural industrial structure. At the same time, it is also of long-term significance to the development and expansion of the Plan, and both parties are excited for the forthcoming cooperation.