Shineco, Inc. reported its financial results for the three months ended September 30, 2024, showing a notable increase in revenue and improvements in certain operational metrics compared to the same period in 2023. The company generated revenue of $2.17 million, a 32.1% increase from $1.65 million in the prior year. This growth was primarily driven by a 35.8% rise in revenue from agricultural products, which accounted for 94.4% of total revenue. Gross profit also saw a significant increase, rising to $291,841 from $98,955, marking a 194.9% improvement.

Despite the revenue growth, Shineco reported a net loss of $2.56 million from continuing operations, although this was an improvement from the $3.51 million loss recorded in the same quarter of 2023. The company’s comprehensive loss for the quarter was $2.37 million, a stark contrast to the comprehensive income of $5.44 million reported in the previous year, largely due to the absence of income from discontinued operations, which had contributed significantly in 2023.

Total assets increased to $93.81 million as of September 30, 2024, up from $84.18 million at the end of June 2024. Current assets also rose significantly to $31.69 million, compared to $20.90 million in the prior quarter. However, total current liabilities increased to $38.99 million, leading to a negative working capital of $7.3 million. The company’s accumulated deficit grew to $56.36 million.

Shineco has been active in financing its operations, reporting net cash provided by financing activities of approximately $5.07 million for the quarter, compared to $0.91 million in the same period last year. This was facilitated by proceeds from the issuance of common stock and short-term loans. The company has also engaged in several stock offerings, including a significant sale of shares at $120.00 each, which generated substantial gross proceeds.

Strategically, Shineco has focused on expanding its business segments, particularly in agricultural products and health-oriented services, following the acquisition of Wintus. The company has expressed concerns regarding its ability to continue as a going concern, relying on stockholder support and access to loans and equity financing to sustain operations over the next twelve months. Management has identified material weaknesses in its internal controls and is taking steps to address these issues, including recruiting qualified personnel and engaging external consultants.