Core Viewpoint - Shineco, Inc. has announced the acquisition of a 51% equity interest in InfiniClone Limited, a biotechnology company specializing in regenerative medicine, marking a significant step into the stem cell technology sector [2][3][6]. Company Overview - Shineco, Inc. focuses on providing innovative diagnostic medical products and related medical devices, aiming to improve quality of life through safe and efficient health solutions [7]. - The company has developed 33 types of in vitro diagnostic reagents and related medical devices, alongside producing and selling healthy foods [7]. Acquisition Details - The acquisition involves a payment of $19,895,600 in cash and the issuance of 3,450,000 shares of common stock to the seller, Dr. Lim Kah Meng [3]. - InfiniClone holds 29 global patents, including five invention patents, which cover major markets such as the US, Europe, and Asia, providing a competitive edge in stem cell technology [4]. InfiniClone's Technology - InfiniClone's core technologies include cell reprogramming, stem cell culture using microcarrier technology, and the management of induced pluripotent stem cell (iPSC) libraries, which can enhance cell expansion throughput by three to ten times compared to existing methods [4]. - The technology is expected to reduce production costs per cell by over 60% and significantly shorten the time required for clinical applications, such as treating Parkinson's and Alzheimer's diseases [4]. Leadership and Expertise - Dr. Lim Kah Meng, the founder of InfiniClone, has over 20 years of experience in molecular research related to stem cell and regenerative medicine, and has founded several biotechnology companies [5]. - Shineco's CEO, Jennifer Zhan, emphasized the acquisition as a key milestone for entering the regenerative medicine field and highlighted the potential for transforming InfiniClone's technology from laboratory to clinical applications [6].

Core Viewpoint - Shineco, Inc. has announced the acquisition of a 75% equity interest in FuWang (HK) International Company Limited, which is expected to create immediate synergies with Shineco's existing medical device business [1][4]. Acquisition Details - Shineco Life Science Group Hong Kong Co., Limited will pay approximately US$ 8.8 million in cash, issue 3,400,000 shares of common stock, and transfer a 71.42% equity interest in Dream Partner Limited to the Seller as part of the acquisition [2]. Company Profile of FuWang - FuWang Company specializes in the R&D, production, and commercialization of Class II and III medical devices, including biochemical analyzers and patient monitors, and has a strong market presence in several Chinese provinces [3]. - The company plans to expand into integrated health management, utilizing cloud computing and AI technologies to enhance critical care networks [3]. Financial Projections - FuWang Company is projected to achieve revenues of US$11.03 million in 2025, US$13.79 million in 2026, and US$17.24 million in 2027, with corresponding net profits of US$1.10 million, US$1.38 million, and US$1.72 million respectively [3]. Strategic Importance - The CEO of Shineco emphasized the strategic positioning of FuWang in the medical devices sector and its potential to enhance Shineco's overall financial performance through synergies [4].

Acquisitions and Investments - Shineco Life acquired 51% of Changzhou Biowin Pharmaceutical Co., Ltd. for US$9,000,000 in cash and 13,583 shares of common stock[250]. - On September 19, 2023, Shineco Life closed the acquisition of 71.42% equity interest in Chongqing Wintus Group for US$2,000,000 and 41,667 shares of common stock[251]. - The company has divested its equity interest in Tenet-Jove, terminating its VIE structure[251]. - The company entered into a securities purchase agreement for the sale of 624,375 shares at $13.20 per share, totaling approximately $8.24 million, with $4.7 million received by December 31, 2024[263]. - A separate agreement was made to sell 15,000,000 shares at $2.18 per share, generating gross proceeds of $32.7 million, with shares issued on January 10, 2025[264]. Business Segments - The company operates three main business segments: rapid diagnostic products, agricultural products, and healthy meals, with products sold in multiple countries including Germany, Spain, and the United States[252][254][255]. - The Company has three major business segments: rapid diagnostic products, silk products, and healthy meals for metabolic health recovery[288]. - The company specializes in producing, processing, and distributing agricultural products, including silk and fresh fruits, with operations located in Chongqing, China[254]. - The company’s rapid diagnostic products are developed and distributed through its subsidiary Biowin, with operations based in Jiangsu Province[252]. Financial Performance - Revenue for the six months ended December 31, 2024, was $5,223,456, representing a 32.15% increase from $3,952,759 in the same period of 2023[287]. - Cost of revenue increased by 35.82% to $4,810,155, up from $3,541,486, resulting in a gross profit of $413,301, a slight increase of 0.49%[287]. - General and administrative expenses decreased by 40.12% to $5,300,198 from $8,851,375, contributing to a loss from operations of $5,028,988, a 41.65% improvement from the previous year[287]. - The Company reported a net loss from continuing operations of $4,847,811, a 43.43% reduction compared to $8,569,226 in the prior year[287]. - The net loss for the six months ended December 31, 2024, was US$4,847,811, compared to a net income of US$286,021 for the same period in 2023, indicating a significant decline in performance[315]. - Comprehensive loss for the six months ended December 31, 2024, was US$4,853,397, an increase of US$5,277,773 from a comprehensive income of US$424,376 for the same period in 2023[316]. Revenue Breakdown - Revenue from other agricultural products increased by $1,362,854, or 37.42%, reaching $5,005,387 in 2024, primarily due to increased sales of fresh fruits[291]. - Revenue from rapid diagnostic and other products decreased by $82,002, or 27.41%, totaling $217,120 in 2024, attributed to a decline in customer orders[289]. - Revenue from healthy meal products decreased by $10,155, or 91.45%, to $949 in 2024, due to low market acceptance and high maintenance costs[292]. - Revenue for the three months ended December 31, 2024, was US$3,049,171, representing an increase of US$742,269 or 32.18% compared to US$2,306,902 in 2023[318]. - Revenue from sales of other agricultural products increased by US$822,113 or 38.56% to US$2,953,916 for the three months ended December 31, 2024, due to increased sales of fresh fruits[322]. - Revenue from sales of rapid diagnostic and other products decreased by US$68,740 or 41.92% to US$95,255 for the three months ended December 31, 2024, primarily due to a decline in customer orders[320]. Expenses and Losses - General and administrative expenses decreased by US$2,928,287 or 52.37% to US$2,663,623 for the three months ended December 31, 2024, mainly due to the forgiveness of a subscription receivable[332]. - The loss from operations for the three months ended December 31, 2024, was US$2,638,595, a reduction of US$2,747,577 or 51.01% compared to US$5,386,172 in 2023[318]. - Net interest expenses decreased to US$185,524 in Q4 2024, down US$266,566, or 58.96%, from US$452,090 in Q4 2023[339]. - The benefit for income taxes was US$242,475 in Q4 2024, a decrease of US$464,087, or 65.68%, compared to US$706,562 in Q4 2023[340]. - Net loss from continuing operations was US$2,289,683 for Q4 2024, a decrease of US$2,766,420, or 54.71%, from US$5,056,103 in Q4 2023[341]. Cash Flow and Financing - Net cash used in operating activities for the six months ended December 31, 2024 was approximately US$2.7 million, with a net loss from continuing operations of US$4.8 million[371]. - Net cash used in investing activities for the six months ended December 31, 2024 was US$2.8 million, mainly due to prepayment for business acquisition of US$2.6 million[373]. - Net cash provided by financing activities for the six months ended December 31, 2024 amounted to approximately US$5.8 million, driven by proceeds from issuance of common stock of US$6.8 million[375]. - The Company had current assets of US$36.2 million and current liabilities of US$42.2 million as of December 31, 2024[362]. - The Company’s management believes that current access to loans and equity financing will be sufficient to meet working capital needs for at least the next 12 months[361]. Other Financial Information - As of December 31, 2024, the company had approximately US$14.0 million in short-term bank loans and US$1.7 million in long-term bank loans outstanding[349]. - The Company reported recurring net losses from continuing operations of US$4.8 million and US$8.6 million for the six months ended December 31, 2024 and 2023, respectively[361]. - As of December 31, 2024, the Company had accumulated a deficit of US$58.0 million and negative working capital of US$6.0 million[361]. - Working capital decreased by US$697,410, or 10.5%, from June 30, 2024 to December 31, 2024, primarily due to an increase in contract liabilities[362]. - The Company has no long-term fixed contractual obligations other than leases disclosed in the financial statements[365]. - The Company’s subsidiary provided a guarantee of US$685,076 for a bank loan borrowed by a related party until December 28, 2025[367].

Acquisitions and Divestitures - Shineco, Inc. acquired 51% of Changzhou Biowin Pharmaceutical Co., Ltd. for US$9,000,000 in cash and 13,583 shares of common stock[114]. - On September 19, 2023, Shineco Life closed the acquisition of 71.42% equity interest in Chongqing Wintus Group for US$2,000,000 and 41,667 shares of restricted common stock[114]. - The company divested its equity interest in Tenet-Jove, terminating its VIE structure, and reclassified its operations as discontinued[115]. Business Segments - The company operates three main business segments: Rapid Diagnostic Products, Agricultural Products, and Healthy Meals, with products sold in multiple countries including Germany, Spain, and the United States[115]. - The Rapid Diagnostic segment focuses on innovative products for common diseases, with operations based in Jiangsu Province, China[114]. - The Agricultural Products segment includes silk and fresh fruit distribution, with operations in Chongqing and sales in regions such as Southeast Asia and Europe[115]. - Fuzhou Meida opened a health-oriented restaurant in Fuzhou, aiming to expand to key cities like Beijing and Shanghai[115]. - The company plans to gradually establish additional branches of its restaurant chain across major cities in China[115]. Financial Performance - Revenue for the three months ended September 30, 2024, was $2,174,285, representing an increase of $528,428 or 32.11% compared to $1,645,857 in the same period of 2023[127]. - Revenue from other agricultural products increased by $540,741 or 35.79%, totaling $2,051,471 for the three months ended September 30, 2024, due to three months of revenue following the acquisition of Wintus[129]. - Gross profit for the three months ended September 30, 2024, was $291,841, an increase of $192,886 or 194.92% compared to $98,955 in the same period of 2023[131]. - The company reported a net income of $5,342,124 for the three months ended September 30, 2024, a decrease of $7,900,252 or 147.89% compared to the same period in 2023[127]. - Comprehensive loss was US$2,370,422 for the three months ended September 30, 2024, an increase of US$7,810,511 from a comprehensive income of US$5,440,089 for the same period in 2023[140]. Expenses and Cost Management - General and administrative expenses decreased by $622,890 or 19.11%, totaling $2,636,575 for the three months ended September 30, 2024, primarily due to reduced professional service fees[133]. - Selling expenses decreased by $15,592 or 32.60%, amounting to $32,241 for the three months ended September 30, 2024, as a result of cost control measures[134]. - Research and development expenses decreased by $10,280 or 43.38%, totaling $13,418 for the three months ended September 30, 2024, due to reduced product development activities[135]. - The Company aims to maintain effective cost control through long-term supplier alliances and leveraging economies of scale from its distribution network[118]. Cash Flow and Financing Activities - Net cash used in operating activities for the three months ended September 30, 2024 was approximately US$2.1 million, compared to US$1.5 million for the same period in 2023[149]. - Net cash used in investing activities for the three months ended September 30, 2024 was US$3.1 million, significantly lower than US$12.9 million in the same period of 2023[150]. - Net cash provided by financing activities for the three months ended September 30, 2024 amounted to approximately US$5.1 million, compared to US$0.9 million in the same period of 2023[151]. Debt and Liabilities - As of September 30, 2024, the company had approximately US$13.7 million in short-term bank loans and US$1.8 million in long-term bank loans outstanding[142]. - The company had accumulated a deficit of US$56.4 million as of September 30, 2024, and negative working capital of US$7.3 million[145]. - Current liabilities increased to US$38,993,149 as of September 30, 2024, from US$27,562,855 as of June 30, 2024[146]. - The company intends to continue executing its growth plans and managing market risk while relying on financial support from shareholders to meet working capital needs[145]. Inventory and Asset Management - As of September 30, 2024, the inventory reserve was nil, indicating effective inventory management[123]. - Current assets increased to US$31,687,558 as of September 30, 2024, from US$20,903,961 as of June 30, 2024[146]. - The cash, cash equivalents, and restricted cash at the end of the period was US$258,714, down from US$875,026 at the end of the same period in 2023[148]. - The company experienced a net decrease in cash and cash equivalents of US$136,322 for the three months ended September 30, 2024[148]. Regulatory and Methodological Changes - The adoption of the CECL methodology for credit losses on July 1, 2023, had no material impact on the consolidated financial statements[122]. - The company operates primarily in the PRC, facing unique political, economic, and legal risks that could adversely affect financial performance[119].

Acquisitions and Investments - Shineco Life acquired 51% of Changzhou Biowin Pharmaceutical Co., Ltd. for US$9,000,000 in cash and 326,000 shares of common stock[161]. - On September 19, 2023, Shineco Life closed the acquisition of 71.42% equity interest in Chongqing Wintus Group for US$2,000,000 and 1,000,000 shares of common stock[162]. - The acquisition of Biowin allows the company to enter the Point-of-Care Testing industry, focusing on rapid diagnostic products[163]. - The company has divested its equity interest in Tenet-Jove, terminating its VIE structure[162]. - The company completed a capital injection of RMB 4.8 million (approximately US$0.70 million) for a 32% equity interest in Gaojing Private Fund, and plans to transfer this interest by March 31, 2025[211]. Business Segments and Operations - The company operates three main business segments: Rapid Diagnostic Products, Agricultural Products, and Healthy Meals, with products sold in multiple countries including China, Germany, and the United States[163][165][166]. - The company’s agricultural segment includes silk and fresh fruit distribution, with operations in Chongqing and sales in various international markets[165]. - The company plans to expand its health-oriented restaurant chain, Fuzhou Meida, into key cities across China[166]. Financial Performance - Revenue for the year ended June 30, 2024, was $9,801,856, representing an increase of $9,251,380 or 1,680.61% compared to $550,476 in 2023[195]. - Cost of revenue for the year ended June 30, 2024, was $8,919,688, an increase of $8,495,397 or 2,002.26% compared to $424,291 in 2023[199]. - Gross profit for the year ended June 30, 2024, was $882,168, an increase of $755,983 or 599.11% compared to $126,185 in 2023[195]. - General and administrative expenses for the year ended June 30, 2024, were $17,522,624, an increase of $8,912,032 or 103.50% compared to $8,610,592 in 2023[206]. - Selling expenses for the year ended June 30, 2024, were $311,989, an increase of $174,602 or 127.09% compared to $137,387 in 2023[207]. - Research and development expenses for the year ended June 30, 2024, were $113,426, a decrease of $22,423 or 16.51% compared to $135,849 in 2023[207]. - Net loss for the year ended June 30, 2024, was $24,352,735, an increase of $10,396,704 or 74.50% compared to $13,956,031 in 2023[195]. - The company recorded a net loss from continuing operations of US$33,207,982 for the year ended June 30, 2024, an increase of 210.03% from the previous year's loss of US$10,711,168[217]. - The company reported a net loss of US$24,352,735 for the year ended June 30, 2024, a 74.50% increase from the net loss of US$13,956,031 in 2023[219]. Revenue Recognition and Accounting Policies - Revenue is primarily generated from sales of Luobuma products and other services, recognized when goods are delivered and collectability is probable[189]. - The adoption of ASC 606 did not result in material changes to the timing and pattern of revenue recognition for the Company's current revenue streams[190]. - The Company adopted the CECL methodology for credit losses on July 1, 2023, with no material impact on consolidated financial statements[185]. Cash Flow and Financing Activities - The company raised approximately US$6.4 million from a securities purchase agreement for 1,400,000 shares at US$5.00 per share, with the remaining proceeds received in July 2024[172]. - The Company completed a public offering of 1,869,160 shares at a price of US$1.07 per share, raising approximately US$2.0 million in gross proceeds, with net proceeds of about US$1.6 million after expenses[173]. - A securities purchase agreement was entered into for the sale of 14,985,000 shares at US$0.55 per share, generating gross proceeds of US$8,241,750, closing on September 10, 2024[175]. - The Company generated approximately US$11.0 million in net cash from financing activities for the year ended June 30, 2024, driven by proceeds from common stock issuance and short-term loans[251]. Economic and Operational Risks - The Company faces economic and political risks primarily in the PRC, which could adversely affect financial performance due to changes in governmental policies and economic conditions[178]. - The COVID-19 pandemic has caused significant disruptions, impacting product delivery and customer payments, with ongoing uncertainty regarding future economic conditions[179]. Inventory and Working Capital Management - As of June 30, 2024, the inventory reserve from continuing operations was US$30,443, down from US$56,655 in 2023, indicating improved inventory management[188]. - As of June 30, 2024, the Company had a working capital deficit of US$6.7 million, a significant decrease of US$35.6 million or 123.0% from US$28.9 million in working capital as of June 30, 2023[237]. - The Company has negative working capital and relies on financial support from shareholders to continue operations over the next twelve months[235]. Interest Expenses and Debt - The company recorded an increase in net interest expenses of 78.52% to US$1,622,346 for the year ended June 30, 2024, compared to US$908,759 in 2023, mainly due to new acquisitions[214]. - The company had approximately US$13.5 million in short-term bank loans and US$1.7 million in long-term bank loans outstanding as of June 30, 2024[224]. - The company expects to renew all existing bank loans upon maturity based on past experience and outstanding credit history[224]. Impairment and Other Income - Impairment loss on goodwill amounted to US$14,824,819 for the year ended June 30, 2024, due to lower-than-expected revenue and profit[212]. - Net other income increased by 22.84% to US$222,910 for the year ended June 30, 2024, compared to US$181,471 in the same period in 2023, primarily due to increased government subsidies[212].

Core Viewpoint - Shineco, Inc. has successfully closed its underwritten public offering of 1,869,160 shares at a price of $1.07 per share, raising approximately $2 million in gross proceeds before expenses [1]. Group 1: Offering Details - The public offering consisted of 1,869,160 shares of common stock priced at $1.07 per share, resulting in gross proceeds of about $2 million [1]. - The underwriters have a 45-day option to purchase an additional 280,374 shares at the public offering price to cover over-allotments [1]. - EF Hutton LLC served as the sole book-running manager for this offering [1]. Group 2: Regulatory Information - The common stock was offered under an effective shelf registration statement on Form S3, filed with the SEC and declared effective on June 10, 2022 [2]. - A prospectus supplement detailing the terms of the public offering was filed with the SEC on July 15, 2024 [2]. Group 3: Company Overview - Shineco, Inc. focuses on providing safe, efficient, and high-quality health and medical products and services, aiming to improve the quality of life [4]. - The company has developed 33 vitro diagnostic reagents and related medical devices and also produces and sells healthy and nutritious foods [4].

Group 1 - Shineco announced a public offering of 1,869,160 shares at a price of $1.07 each, with an additional option for underwriters to acquire 280,374 shares [1] - The company expects to raise $2 million in gross proceeds from this offering, managed by EF Hutton LLC [1] - Following the announcement, SISI stock fell by 53.8%, contrasting with a year-to-date increase of 76.7% prior to the market close on Thursday [2] Group 2 - The public offering dilutes the stakes of current investors, contributing to the decline in stock price [2] - The offering price of $1.07 is below the previous closing price of $2.12, which likely displeased traders [2]

Core Viewpoint - Shineco, Inc. has announced a public offering of 1,869,160 shares of common stock at a price of $1.07 per share, aiming for gross proceeds of approximately $2 million before expenses [1]. Group 1: Offering Details - The public offering consists of 1,869,160 shares priced at $1.07 each, with total gross proceeds expected to be around $2 million [1]. - Underwriters have a 45-day option to purchase an additional 280,374 shares at the same public offering price [1]. - The offering is anticipated to close on July 15, 2024, pending customary closing conditions [1]. Group 2: Underwriting and Registration - EF Hutton LLC is serving as the sole book-running manager for the offering [2]. - The shares are being offered under an effective shelf registration statement filed with the SEC, which was declared effective on June 10, 2022 [2]. - A prospectus supplement detailing the terms of the offering will be filed with the SEC [2]. Group 3: Company Overview - Shineco, Inc. focuses on providing innovative diagnostic medical products and related medical devices, aiming to enhance the quality of life [4]. - The company has developed 33 vitro diagnostic reagents and related medical devices and also produces healthy and nutritious foods [4].

Core Viewpoint - Shineco, Inc. has announced a public offering of 1,869,160 shares of common stock at a price of $1.07 per share, aiming for gross proceeds of approximately $2 million before expenses [1]. Group 1: Offering Details - The public offering consists of 1,869,160 shares priced at $1.07 each, with total gross proceeds expected to be around $2 million [1]. - Underwriters have a 45-day option to purchase an additional 280,374 shares at the same public offering price [1]. - The offering is anticipated to close on July 15, 2024, pending customary closing conditions [1]. Group 2: Underwriting and Registration - EF Hutton LLC is serving as the sole book-running manager for the offering [2]. - The shares are being offered under an effective shelf registration statement filed with the SEC, which was declared effective on June 10, 2022 [2]. - A prospectus supplement detailing the terms of the offering will be filed with the SEC [2]. Group 3: Company Overview - Shineco, Inc. focuses on providing innovative diagnostic medical products and related medical devices, aiming to enhance the quality of life [4]. - The company has developed 33 vitro diagnostic reagents and related medical devices and also produces healthy and nutritious foods [4].

Core Viewpoint - Shineco, Inc. has initiated an underwritten public offering of its common stock and pre-funded warrants, with the offering subject to market conditions and no assurance of completion or specific terms [1]. Group 1: Offering Details - The offering includes shares of common stock and pre-funded warrants, all offered by the Company [1]. - The offering is conducted under an effective shelf registration statement on Form S-3, which was filed with the SEC and declared effective on June 10, 2022 [2]. - A preliminary prospectus supplement and accompanying prospectus will be filed with the SEC, detailing the terms of the public offering [2][3]. Group 2: Company Overview - Shineco, Inc. focuses on providing safe, efficient, and high-quality health and medical products and services, aiming to improve the quality of life [5]. - The Company has developed 33 vitro diagnostic reagents and related medical devices and also produces and sells healthy and nutritious foods [5].