In This Story
Shineco Inc. (SISI+1.60%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing details the company's operations, which include three main business segments: rapid diagnostic and other products, other agricultural products, and healthy meal products. Revenue for the quarter increased to $3,049,171 from $2,306,902 in the same quarter the previous year, primarily due to increased sales of other agricultural products.
Cost of revenue for the quarter was $2,927,711, representing 96% of sales, compared to 86% in the same quarter of the previous year. The increase in cost ratio is attributed to the lower gross margin of fresh fruits.
The company reported a gross profit of $121,460 for the quarter, compared to $312,318 in the previous year, with the decline attributed to decreased sales of rapid diagnostic products.
General and administrative expenses decreased to $2,663,623 from $5,591,910, primarily due to a reduction in subscription receivable expenses.
Net loss from continuing operations for the quarter was $2,289,683, down from $5,056,103 in the previous year. The decrease is attributed to lower general and administrative expenses.
Cash used in operating activities for the six months ended December 31, 2024, was $2,689,875. Cash provided by financing activities was $5,806,192, driven by proceeds from the issuance of common stock and short-term loans.
Shineco had a working capital deficit of $5,961,484 as of December 31, 2024. The company acknowledges its dependence on financial support from stockholders to meet future obligations.
The filing also discusses various financial agreements, including convertible notes and securities purchase agreements with non-U.S. investors.
Shineco's management has identified material weaknesses in its internal controls over financial reporting, specifically in the areas of segregation of duties and credit risk evaluation.
The company continues to focus on expanding its distribution network and developing new products to increase demand and improve financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Shineco Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.