Shineco, Inc. (NASDAQ: TYHT), a producer and distributor of Chinese herbal medicines, organic agricultural products, specialized textiles, and other health and well-being focused plant-based products in China, today announced that it has further developed the cooperation with Daiso Industries Co., Ltd. ("Daiso") through a supply and purchase agreement (the "Agreement") entered into on November 3, 2017. As previously disclosed in the press release on October 27, 2017, Shineco is authorized to distribute Daiso's branded products via JD.com, through its subsidiary, Tianjin Tajit E-Commerce Ltd.
The Agreement was entered into for the purpose of establishing a continuous supply and sale of Daiso's products in China. Pursuant to the Agreement, Shineco shall purchase Daiso Products in the amount of approximate RMB 20 million no later than December 31, 2017 and add orders as circumstance requires. The term of the Agreement is currently one year, and it extends for one additional year at each expiration date unless written notice of termination is given by either of the parties of the Agreement.
Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, stated, "We are proud to be selected as the partner of Daiso in China, a partnership that will serve as a promising catalyst for the development of Shineco. This strategic partnership between our two companies will create a stable supply chain with more frequent deliveries. We look forward to working together to ease the purchase process, and, ultimately, to benefit Chinese customers."