Shineco Enters into a Letter of Intent with Meitong Technology to Address China's Aging Population

Core Viewpoint - Shineco Inc. has entered into an Investment Letter of Intent to invest $20 million in Beijing Oriental Meitong Technology Co., Ltd. for 80% equity, aiming to enhance its core competencies and create operational synergies [1][3]. Company Overview - Shineco Inc. focuses on providing innovative diagnostic medical products and related medical devices, with a mission to improve the quality of life through safe and efficient health products [6]. - Meitong Technology specializes in durable medical equipment, offering shared products like wheelchairs and hospital beds, and has established relationships with over 800 hospitals in China, serving more than 12 million patients [2]. Strategic Goals - The acquisition aligns with Shineco's long-term strategy to grow cash flow, expand business operations, and increase corporate valuation [3]. - Meitong Technology plans to diversify its product line and enter new markets, aiming to increase its hospital customer base from 800 to 1,500 within three years and enhance international sales by at least 20% [3][4]. Collaborative Efforts - Both companies will leverage their data on elderly and physically challenged individuals for market analysis and product development, aiming to provide comprehensive solutions in medical devices and rehabilitation care [4]. - Shineco will utilize Meitong Technology's domestic channels to accelerate market expansion and increase product penetration [4]. Financial Incentives - The Investment LOI includes performance benchmarks for Meitong Technology, with potential cash rewards for its management team based on net income growth and patent registrations [5].