false --06-30 Q3 0001300734 0001300734 2024-07-01 2025-03-31 0001300734 2025-05-15 0001300734 2025-03-31 0001300734 2024-06-30 0001300734 us-gaap:RelatedPartyMember 2025-03-31 0001300734 us-gaap:RelatedPartyMember 2024-06-30 0001300734 2023-07-01 2024-03-31 0001300734 2025-01-01 2025-03-31 0001300734 2024-01-01 2024-03-31 0001300734 us-gaap:CommonStockMember 2023-06-30 0001300734 SISI:SubscriptionReceivableMember 2023-06-30 0001300734 SISI:CommonStockSubscribledMember 2023-06-30 0001300734 us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0001300734 SISI:StatutoryReservelMember 2023-06-30 0001300734 us-gaap:RetainedEarningsMember 2023-06-30 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-06-30 0001300734 us-gaap:NoncontrollingInterestMember 2023-06-30 0001300734 2023-06-30 0001300734 us-gaap:CommonStockMember 2024-06-30 0001300734 SISI:SubscriptionReceivableMember 2024-06-30 0001300734 SISI:CommonStockSubscribledMember 2024-06-30 0001300734 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0001300734 SISI:StatutoryReservelMember 2024-06-30 0001300734 us-gaap:RetainedEarningsMember 2024-06-30 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-06-30 0001300734 us-gaap:NoncontrollingInterestMember 2024-06-30 0001300734 us-gaap:CommonStockMember 2023-12-31 0001300734 SISI:SubscriptionReceivableMember 2023-12-31 0001300734 SISI:CommonStockSubscribledMember 2023-12-31 0001300734 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001300734 SISI:StatutoryReservelMember 2023-12-31 0001300734 us-gaap:RetainedEarningsMember 2023-12-31 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0001300734 us-gaap:NoncontrollingInterestMember 2023-12-31 0001300734 2023-12-31 0001300734 us-gaap:CommonStockMember 2024-12-31 0001300734 SISI:SubscriptionReceivableMember 2024-12-31 0001300734 SISI:CommonStockSubscribledMember 2024-12-31 0001300734 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0001300734 SISI:StatutoryReservelMember 2024-12-31 0001300734 us-gaap:RetainedEarningsMember 2024-12-31 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-12-31 0001300734 us-gaap:NoncontrollingInterestMember 2024-12-31 0001300734 2024-12-31 0001300734 us-gaap:CommonStockMember 2023-07-01 2024-03-31 0001300734 SISI:SubscriptionReceivableMember 2023-07-01 2024-03-31 0001300734 SISI:CommonStockSubscribledMember 2023-07-01 2024-03-31 0001300734 us-gaap:AdditionalPaidInCapitalMember 2023-07-01 2024-03-31 0001300734 SISI:StatutoryReservelMember 2023-07-01 2024-03-31 0001300734 us-gaap:RetainedEarningsMember 2023-07-01 2024-03-31 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-07-01 2024-03-31 0001300734 us-gaap:NoncontrollingInterestMember 2023-07-01 2024-03-31 0001300734 us-gaap:CommonStockMember 2024-07-01 2025-03-31 0001300734 SISI:SubscriptionReceivableMember 2024-07-01 2025-03-31 0001300734 SISI:CommonStockSubscribledMember 2024-07-01 2025-03-31 0001300734 us-gaap:AdditionalPaidInCapitalMember 2024-07-01 2025-03-31 0001300734 SISI:StatutoryReservelMember 2024-07-01 2025-03-31 0001300734 us-gaap:RetainedEarningsMember 2024-07-01 2025-03-31 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-07-01 2025-03-31 0001300734 us-gaap:NoncontrollingInterestMember 2024-07-01 2025-03-31 0001300734 us-gaap:CommonStockMember 2024-01-01 2024-03-31 0001300734 SISI:SubscriptionReceivableMember 2024-01-01 2024-03-31 0001300734 SISI:CommonStockSubscribledMember 2024-01-01 2024-03-31 0001300734 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0001300734 SISI:StatutoryReservelMember 2024-01-01 2024-03-31 0001300734 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-01-01 2024-03-31 0001300734 us-gaap:NoncontrollingInterestMember 2024-01-01 2024-03-31 0001300734 us-gaap:CommonStockMember 2025-01-01 2025-03-31 0001300734 SISI:SubscriptionReceivableMember 2025-01-01 2025-03-31 0001300734 SISI:CommonStockSubscribledMember 2025-01-01 2025-03-31 0001300734 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0001300734 SISI:StatutoryReservelMember 2025-01-01 2025-03-31 0001300734 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-01-01 2025-03-31 0001300734 us-gaap:NoncontrollingInterestMember 2025-01-01 2025-03-31 0001300734 us-gaap:CommonStockMember 2024-03-31 0001300734 SISI:SubscriptionReceivableMember 2024-03-31 0001300734 SISI:CommonStockSubscribledMember 2024-03-31 0001300734 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0001300734 SISI:StatutoryReservelMember 2024-03-31 0001300734 us-gaap:RetainedEarningsMember 2024-03-31 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0001300734 us-gaap:NoncontrollingInterestMember 2024-03-31 0001300734 2024-03-31 0001300734 us-gaap:CommonStockMember 2025-03-31 0001300734 SISI:SubscriptionReceivableMember 2025-03-31 0001300734 SISI:CommonStockSubscribledMember 2025-03-31 0001300734 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0001300734 SISI:StatutoryReservelMember 2025-03-31 0001300734 us-gaap:RetainedEarningsMember 2025-03-31 0001300734 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 0001300734 us-gaap:NoncontrollingInterestMember 2025-03-31 0001300734 SISI:TenetJoveTechnologicalDevelopmentCoLtdMember 2003-12-15 0001300734 SISI:TianjinTenetTechnologicalDevelopmentCoLtdMember SISI:TenetJoveTechnologicalDevelopmentCoLtdMember 2003-12-15 0001300734 SISI:TenetJoveTechnologicalDevelopmentCoLtdMember 2006-07-14 0001300734 SISI:XinjiangTaiheMember 2017-09-30 0001300734 SISI:RunzeMember 2017-09-30 0001300734 SISI:TianjinTajiteMember 2016-12-10 0001300734 SISI:TianjinTajiteMember 2016-12-10 0001300734 SISI:TianjinTajiteMember 2017-10-26 0001300734 SISI:TianjinTajiteMember 2019-05-05 0001300734 SISI:TianjinTajiteMember 2025-03-31 0001300734 SISI:TenjoveNewhempBiotechnologyCoLtdMember 2019-03-13 0001300734 SISI:ShanghaiJiayingInternationalCoLtdMember 2020-07-23 0001300734 SISI:ShanghaiJiayingInternationalCoLtdMember 2020-07-23 0001300734 SISI:ShareholderMember 2020-07-23 0001300734 SISI:InnerMongoliaShinecoZhonghemoBiotechnologyCoLtdMember 2021-01-07 0001300734 SISI:InnerMongoliaShinecoZhonghemoBiotechnologyCoLtdMember 2021-01-07 0001300734 SISI:ShareholderMember 2021-01-07 0001300734 SISI:LifeScienceMember 2021-12-07 0001300734 SISI:LifeScienceGroupHongKongCoMember 2022-04-13 0001300734 SISI:ShareTransferAgreementMember SISI:ShinecoLifeMember 2022-04-24 0001300734 SISI:FuzhouMeidaHealthManagementCoLtdMember 2023-05-16 0001300734 SISI:FuzhouMeidaHealthManagementCoLtdMember 2023-05-16 0001300734 SISI:TwoShareholdersMember 2023-05-16 0001300734 SISI:ShinkangTechnologyMember 2023-05-16 0001300734 SISI:ShinkangTechnologyMember 2023-05-16 0001300734 SISI:OneShareholderMember 2023-05-16 0001300734 SISI:BeijingShinecoChongshiMember 2023-05-23 0001300734 SISI:BeijingShinecoChongshiMember 2024-11-20 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2022-12-30 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2022-12-29 2022-12-30 0001300734 SISI:ChongqingWintusGroupMember 2023-05-29 0001300734 SISI:StockPurchaseAgreementMember SISI:ChongqingWintusGroupMember 2023-05-29 2023-05-29 0001300734 SISI:ChongqingWintusGroupMember 2023-05-29 0001300734 SISI:BeijingShinecoChonggaoTechnologyCoLtdMember 2025-01-09 0001300734 SISI:BeijingShinecoChonggaoTechnologyCoLtdMember 2025-03-20 0001300734 SISI:BeijingShinecoChonggaoTechnologyCoLtdMember 2025-03-20 0001300734 SISI:BeijingShinecoChonggaoTechnologyCoLtdMember 2025-03-20 2025-03-20 0001300734 SISI:BeijingShinecoChonggaoTechnologyCoLtdMember 2025-03-20 0001300734 SISI:WintusMember 2025-03-20 0001300734 SISI:SecuritiesPurchaseAgreementMember 2024-06-20 2024-06-20 0001300734 SISI:SecuritiesPurchaseAgreementMember 2024-06-20 0001300734 SISI:SecuritiesPurchaseAgreementMember us-gaap:IPOMember 2024-06-20 2024-06-20 0001300734 SISI:SecuritiesPurchaseAgreementMember 2024-06-30 2024-06-30 0001300734 us-gaap:CommonStockMember SISI:UnderwritingAgreementMember 2024-07-11 2024-07-11 0001300734 us-gaap:CommonStockMember SISI:UnderwritingAgreementMember 2024-07-11 0001300734 SISI:UnderwritingAgreementMember 2024-07-11 2024-07-11 0001300734 SISI:SecuritiesPurchaseAgreementMember 2024-08-22 2024-08-22 0001300734 SISI:SecuritiesPurchaseAgreementMember 2024-08-22 0001300734 SISI:SecuritiesPurchaseAgreementMember us-gaap:IPOMember 2024-08-22 2024-08-22 0001300734 SISI:SecuritiesPurchaseAgreementMember 2024-07-01 2025-03-31 0001300734 SISI:SecuritiesPurchaseAgreementMember 2024-12-24 2024-12-24 0001300734 us-gaap:CommonStockMember SISI:UnderwritingAgreementMember 2024-12-24 0001300734 SISI:SecuritiesPurchaseAgreementMember 2025-04-01 2025-04-30 0001300734 us-gaap:SegmentContinuingOperationsMember 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember 2024-06-30 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2025-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2024-06-30 0001300734 2017-12-21 2017-12-21 0001300734 2017-12-22 2017-12-22 0001300734 2017-07-01 2018-06-30 0001300734 2018-07-01 2019-06-30 0001300734 currency:CNY 2025-03-31 0001300734 currency:CNY 2024-06-30 0001300734 currency:CNY 2024-07-01 2025-03-31 0001300734 currency:CNY 2023-07-01 2024-03-31 0001300734 currency:CNY 2025-01-01 2025-03-31 0001300734 currency:CNY 2024-01-01 2024-03-31 0001300734 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2024-07-01 2025-03-31 0001300734 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2023-07-01 2024-03-31 0001300734 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2025-01-01 2025-03-31 0001300734 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2024-01-01 2024-03-31 0001300734 us-gaap:BuildingMember srt:MinimumMember 2025-03-31 0001300734 us-gaap:BuildingMember srt:MaximumMember 2025-03-31 0001300734 us-gaap:MachineryAndEquipmentMember srt:MinimumMember 2025-03-31 0001300734 us-gaap:MachineryAndEquipmentMember srt:MaximumMember 2025-03-31 0001300734 us-gaap:VehiclesMember srt:MinimumMember 2025-03-31 0001300734 us-gaap:VehiclesMember srt:MaximumMember 2025-03-31 0001300734 us-gaap:OfficeEquipmentMember srt:MinimumMember 2025-03-31 0001300734 us-gaap:OfficeEquipmentMember srt:MaximumMember 2025-03-31 0001300734 us-gaap:LeaseholdImprovementsMember srt:MinimumMember 2025-03-31 0001300734 us-gaap:LeaseholdImprovementsMember srt:MaximumMember 2025-03-31 0001300734 SISI:FixtureAndFurnitureMember 2025-03-31 0001300734 2023-07-01 2024-06-30 0001300734 SISI:ThirdPartyMember 2023-09-20 2023-09-20 0001300734 SISI:TwoThirdPartyMember 2023-12-31 2023-12-31 0001300734 SISI:ThirdPartyMember 2024-05-28 2024-05-28 0001300734 SISI:ThirdPartyMember 2024-06-05 2024-06-05 0001300734 SISI:ThirdPartyMember 2024-07-24 2024-07-24 0001300734 SISI:ThirdPartyMember 2024-09-18 2024-09-18 0001300734 SISI:TwoThirdPartyMember 2024-07-24 2024-07-24 0001300734 SISI:TwoThirdPartyMember 2024-09-18 2024-09-18 0001300734 SISI:ThirdPartyMember 2025-01-01 2025-03-31 0001300734 SISI:ThirdPartyMember 2024-06-30 0001300734 SISI:ThirdPartyMember 2025-03-31 0001300734 us-gaap:BuildingMember 2025-03-31 0001300734 us-gaap:BuildingMember 2024-06-30 0001300734 us-gaap:MachineryAndEquipmentMember 2025-03-31 0001300734 us-gaap:MachineryAndEquipmentMember 2024-06-30 0001300734 us-gaap:VehiclesMember 2025-03-31 0001300734 us-gaap:VehiclesMember 2024-06-30 0001300734 us-gaap:OfficeEquipmentMember 2025-03-31 0001300734 us-gaap:OfficeEquipmentMember 2024-06-30 0001300734 SISI:FixtureAndFurnitureMember 2024-06-30 0001300734 us-gaap:ConstructionInProgressMember 2025-03-31 0001300734 us-gaap:ConstructionInProgressMember 2024-06-30 0001300734 us-gaap:SegmentContinuingOperationsMember 2024-07-01 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember 2023-07-01 2024-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember 2025-01-01 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember 2024-01-01 2024-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2024-07-01 2025-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2023-07-01 2024-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2025-01-01 2025-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2024-01-01 2024-03-31 0001300734 SISI:WeiqingGuoMember 2023-05-24 0001300734 SISI:WeiqingGuoMember 2023-05-23 2023-05-23 0001300734 SISI:ChongqingWintusGroupMember 2024-11-20 0001300734 SISI:ContinuedOperationsMember 2024-07-01 2025-03-31 0001300734 SISI:ContinuedOperationsMember 2023-07-01 2024-03-31 0001300734 SISI:ContinuedOperationsMember 2025-01-01 2025-03-31 0001300734 SISI:ContinuedOperationsMember 2024-01-01 2024-03-31 0001300734 SISI:OfficesSpaceMember srt:MinimumMember 2025-03-31 0001300734 SISI:OfficesSpaceMember srt:MaximumMember 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember 2024-07-01 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember 2023-07-01 2024-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember 2025-01-01 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember 2024-01-01 2024-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2024-07-01 2025-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2023-07-01 2024-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2025-01-01 2025-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2024-01-01 2024-03-31 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2024-06-30 0001300734 us-gaap:SegmentDiscontinuedOperationsMember 2025-03-31 0001300734 SISI:ContinuingOperationsMember 2025-03-31 0001300734 SISI:TianjinTajiteMember 2021-06-08 0001300734 SISI:GuangyuanForestDevelopmentCoLtdMember 2023-07-01 2024-03-31 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2022-10-21 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2025-03-31 0001300734 SISI:BiowinMember 2023-07-01 2024-06-30 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2024-07-01 2025-03-31 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2024-10-01 2025-03-31 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2023-07-01 2024-03-31 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2024-01-01 2024-03-31 0001300734 SISI:ChongqingWintusGroupMember 2025-03-31 0001300734 SISI:WintusMember 2023-07-01 2024-06-30 0001300734 SISI:ChongqingWintusGroupMember 2024-07-01 2025-03-31 0001300734 SISI:ChongqingWintusGroupMember 2023-07-01 2024-03-31 0001300734 SISI:ChongqingWintusGroupMember 2025-01-01 2025-03-31 0001300734 SISI:ChongqingWintusGroupMember 2024-01-01 2024-03-31 0001300734 SISI:ChongqingWintusGroupMember us-gaap:SegmentDiscontinuedOperationsMember 2024-07-01 2025-03-31 0001300734 SISI:ChongqingWintusGroupMember us-gaap:SegmentDiscontinuedOperationsMember 2025-01-01 2025-03-31 0001300734 SISI:ChongqingWintusGroupMember us-gaap:SegmentDiscontinuedOperationsMember 2023-07-01 2024-03-31 0001300734 SISI:ChongqingWintusGroupMember us-gaap:SegmentDiscontinuedOperationsMember 2024-01-01 2024-03-31 0001300734 2021-07-05 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2023-01-01 0001300734 SISI:ChongqingWintusGroupMember 2023-07-31 0001300734 SISI:ChangzhouBiowinPharmaceuticalCoLtdMember 2024-06-30 0001300734 SISI:ChongqingWintusGroupMember 2024-06-30 0001300734 SISI:ChongqingYufanTradingCoLtdMember 2025-03-31 0001300734 SISI:ChongqingYufanTradingCoLtdMember 2024-06-30 0001300734 SISI:ChongqingDreamTradingCoLtdMember 2025-03-31 0001300734 SISI:ChongqingDreamTradingCoLtdMember 2024-06-30 0001300734 SISI:WintusChinaLimitedMember 2025-03-31 0001300734 SISI:WintusChinaLimitedMember 2024-06-30 0001300734 SISI:FujianXinglinchunHealthIndustryCoLtdMember 2025-03-31 0001300734 SISI:FujianXinglinchunHealthIndustryCoLtdMember 2024-06-30 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentContinuingOperationsMember 2025-03-31 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentContinuingOperationsMember 2024-06-30 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentDiscontinuedOperationsMember 2025-03-31 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentDiscontinuedOperationsMember 2024-06-30 0001300734 SISI:ChongqingFulingDistrictRenyiZhiluSilkIndustryCoLtdMember us-gaap:SegmentDiscontinuedOperationsMember 2024-07-01 2025-03-31 0001300734 SISI:ChongqingFulingDistrictRenyiZhiluSilkIndustryCoLtdMember us-gaap:SegmentDiscontinuedOperationsMember 2023-07-01 2024-03-31 0001300734 SISI:ChongqingFulingDistrictRenyiZhiluSilkIndustryCoLtdMember 2025-01-01 2025-03-31 0001300734 SISI:ChongqingFulingDistrictRenyiZhiluSilkIndustryCoLtdMember 2024-01-01 2024-03-31 0001300734 SISI:ChongqingWintusMember 2025-03-31 0001300734 SISI:ChongqingWintusMember 2024-06-30 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentContinuingOperationsMember 2025-03-31 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentContinuingOperationsMember 2024-06-30 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentContinuingOperationsMember 2024-07-01 2025-03-31 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentContinuingOperationsMember 2023-07-01 2024-03-31 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentContinuingOperationsMember 2025-01-01 2025-03-31 0001300734 us-gaap:RelatedPartyMember us-gaap:SegmentContinuingOperationsMember 2024-01-01 2024-03-31 0001300734 SISI:WangSaiMember 2025-03-31 0001300734 SISI:WangSaiMember 2024-06-30 0001300734 SISI:HuangShanchunMember 2025-03-31 0001300734 SISI:HuangShanchunMember 2024-06-30 0001300734 SISI:LiuFengmingMember 2025-03-31 0001300734 SISI:LiuFengmingMember 2024-06-30 0001300734 SISI:YanLixiaMember 2025-03-31 0001300734 SISI:YanLixiaMember 2024-06-30 0001300734 SISI:ZhanJiaruiMember 2025-03-31 0001300734 SISI:ZhanJiaruiMember 2024-06-30 0001300734 SISI:LiuXinqiaoMember 2025-03-31 0001300734 SISI:LiuXinqiaoMember 2024-06-30 0001300734 SISI:LyuJiajiaMember 2025-03-31 0001300734 SISI:LyuJiajiaMember 2024-06-30 0001300734 SISI:ZhaoPengfeiMember 2025-03-31 0001300734 SISI:ZhaoPengfeiMember 2024-06-30 0001300734 SISI:WangXiaohuiMember 2025-03-31 0001300734 SISI:WangXiaohuiMember 2024-06-30 0001300734 SISI:ChiKeungYanMember 2025-03-31 0001300734 SISI:ChiKeungYanMember 2024-06-30 0001300734 SISI:FuzhouMedashanBiotechnologyCoLtdMember 2025-03-31 0001300734 SISI:FuzhouMedashanBiotechnologyCoLtdMember 2024-06-30 0001300734 SISI:ChongqingFulingDistrictRenyiZhiluSilkIndustryCoLtdMember 2025-03-31 0001300734 SISI:ChongqingFulingDistrictRenyiZhiluSilkIndustryCoLtdMember 2024-06-30 0001300734 SISI:ChongqingHuajianHousingDevelopmentCoLtdMember 2025-03-31 0001300734 SISI:ChongqingHuajianHousingDevelopmentCoLtdMember 2024-06-30 0001300734 us-gaap:RelatedPartyMember us-gaap:ParentMember 2025-03-31 0001300734 us-gaap:RelatedPartyMember us-gaap:ParentMember 2024-06-30 0001300734 SISI:LyuJiajiaMember 2023-09-27 0001300734 SISI:LyuJiajiaMember 2023-09-27 2023-09-27 0001300734 SISI:LyuJiajiaMember 2023-07-01 2024-06-30 0001300734 SISI:LoanAgreementsMember 2024-06-30 0001300734 SISI:LoanAgreementsTwoMember 2024-07-01 2025-03-31 0001300734 SISI:LoanAgreementsTwoMember 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember SISI:LoanAgreementsMember 2024-07-01 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember SISI:LoanAgreementsMember 2023-07-01 2024-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember SISI:LoanAgreementsMember 2025-01-01 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember SISI:LoanAgreementsMember 2024-01-01 2024-03-31 0001300734 SISI:JiangnanRuralCommercialBankMember 2025-03-31 0001300734 SISI:JiangnanRuralCommercialBankMember 2024-07-01 2025-03-31 0001300734 SISI:JiangnanRuralCommercialBankMember 2024-12-31 0001300734 SISI:BankOfJiangsuMember 2025-03-31 0001300734 SISI:BankOfJiangsuMember 2024-07-01 2025-03-31 0001300734 SISI:BankOfChinaOneMember 2025-03-31 0001300734 SISI:BankOfChinaOneMember 2024-07-01 2025-03-31 0001300734 SISI:UnitedOverseasBankMember 2025-03-31 0001300734 SISI:UnitedOverseasBankMember 2024-07-01 2025-03-31 0001300734 SISI:UnitedOverseasBankMember srt:MinimumMember 2025-03-31 0001300734 SISI:UnitedOverseasBankMember srt:MaximumMember 2025-03-31 0001300734 SISI:IndustrialAndCommercialBankOfChinaOneMember 2025-03-31 0001300734 SISI:IndustrialAndCommercialBankOfChinaOneMember 2024-07-01 2025-03-31 0001300734 SISI:BankOfChinaMember 2025-03-31 0001300734 SISI:BankOfChinaMember 2024-07-01 2025-03-31 0001300734 SISI:ChongquingRuralCommercialBankMember 2025-03-31 0001300734 SISI:ChongquingRuralCommercialBankMember 2024-07-01 2025-03-31 0001300734 SISI:IndustrialAndCommercialBankOfChinaTwoMember 2025-03-31 0001300734 SISI:IndustrialAndCommercialBankOfChinaTwoMember 2024-07-01 2025-03-31 0001300734 us-gaap:SegmentContinuingOperationsMember 2025-03-31 0001300734 SISI:JiangnanRuralCommercialBankMember 2024-06-30 0001300734 SISI:JiangnanRuralCommercialBankMember 2023-07-01 2024-06-30 0001300734 SISI:BankOfJiangsuMember 2024-06-30 0001300734 SISI:BankOfJiangsuMember 2023-07-01 2024-06-30 0001300734 SISI:BankOfChinaOneMember 2024-06-30 0001300734 SISI:BankOfChinaOneMember 2023-07-01 2024-06-30 0001300734 SISI:UnitedOverseasBankMember 2024-06-30 0001300734 SISI:UnitedOverseasBankMember 2023-07-01 2024-06-30 0001300734 SISI:IndustrialAndCommercialBankOfChinaOneMember 2024-06-30 0001300734 SISI:IndustrialAndCommercialBankOfChinaOneMember 2023-07-01 2024-06-30 0001300734 SISI:IndustrialAndCommercialBankOfChinaTwoMember 2024-06-30 0001300734 SISI:IndustrialAndCommercialBankOfChinaTwoMember 2023-07-01 2024-06-30 0001300734 SISI:BankOfChinaMember 2024-06-30 0001300734 SISI:BankOfChinaMember 2023-07-01 2024-06-30 0001300734 SISI:ChongquingRuralCommercialBankMember 2024-06-30 0001300734 SISI:ChongquingRuralCommercialBankMember 2023-07-01 2024-06-30 0001300734 SISI:ChongqingRuralCommercialMember 2025-03-31 0001300734 SISI:ChongqingRuralCommercialMember 2024-07-01 2025-03-31 0001300734 SISI:BankOfChongqingMember 2025-03-31 0001300734 SISI:BankOfChongqingMember 2024-07-01 2025-03-31 0001300734 SISI:ChongqingRuralCommercialMember 2024-06-30 0001300734 SISI:ChongqingRuralCommercialMember 2023-07-01 2024-06-30 0001300734 SISI:BankOfChongqingMember 2024-06-30 0001300734 SISI:BankOfChongqingMember 2023-07-01 2024-06-30 0001300734 us-gaap:SegmentContinuingOperationsMember 2024-06-30 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember 2021-06-16 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember 2021-06-15 2021-06-16 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember 2022-09-07 0001300734 SISI:SecondJuneNoteAmendmentMember 2023-06-15 2023-06-15 0001300734 SISI:SecondJuneNoteAmendmentMember 2023-06-15 0001300734 SISI:ThirdJuneNoteAmendmentMember 2024-06-11 2024-06-11 0001300734 SISI:ThirdJuneNoteAmendmentMember 2024-06-11 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember 2021-07-15 2021-07-16 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember 2021-07-16 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:SecondConvertiblePromissoryNoteMember 2021-07-16 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:SecondConvertiblePromissoryNoteMember 2021-07-15 2021-07-16 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:SecondConvertiblePromissoryNoteMember us-gaap:InvestorMember 2021-07-16 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember 2023-07-01 2024-06-30 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember 2024-06-30 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember 2021-08-19 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember 2021-08-18 2021-08-19 0001300734 SISI:SecuritiesPurchaseAgreementMember SISI:UnsecuredConvertiblePromissoryNoteMember us-gaap:InvestorMember 2022-09-07 0001300734 SISI:SecondAugustNoteAmendmentMember 2023-06-15 2023-06-15 0001300734 SISI:SecondAugustNoteAmendmentMember 2023-06-15 0001300734 SISI:ThirdAugustNoteAmendmentMember 2024-06-11 2024-06-11 0001300734 SISI:ThirdAugustNoteAmendmentMember 2024-06-11 0001300734 SISI:ConvertiblePromissoryNoteMember 2021-08-19 2021-08-19 0001300734 us-gaap:InvestorMember 2024-07-01 2025-03-31 0001300734 us-gaap:InvestorMember 2023-07-01 2024-03-31 0001300734 us-gaap:InvestorMember 2024-10-01 2025-03-31 0001300734 us-gaap:InvestorMember 2023-10-01 2024-03-31 0001300734 us-gaap:InvestorMember 2025-03-31 0001300734 SISI:ProfitUpMember 2024-07-01 2025-03-31 0001300734 SISI:ProfitOverMember 2024-07-01 2025-03-31 0001300734 us-gaap:IPOMember 2016-09-25 2016-09-28 0001300734 us-gaap:IPOMember 2016-09-28 0001300734 us-gaap:CommonStockMember 2020-07-10 2020-07-10 0001300734 us-gaap:CommonStockMember 2020-07-10 0001300734 SISI:SelectedInvestorsMember 2021-04-10 2021-04-10 0001300734 SISI:SelectedInvestorsMember 2021-04-10 0001300734 SISI:SelectedInvestorsMember 2023-07-01 2024-06-30 0001300734 SISI:TwoThousandTwentyTwentyThreeEquityInvestmentPlanMember SISI:BoardOfDirectorsMember 2023-08-29 2023-08-30 0001300734 SISI:TwoThousandTwentyTwentyThreeEquityInvestmentPlanMember SISI:BoardOfDirectorsMember 2023-08-30 0001300734 SISI:SecuritesPurchaseAgreementMember srt:MaximumMember 2023-12-22 2023-12-22 0001300734 SISI:SecuritesPurchaseAgreementMember 2023-12-22 0001300734 us-gaap:CommonStockMember 2024-02-01 2024-02-01 0001300734 us-gaap:CommonStockMember 2024-02-01 0001300734 SISI:TwoThousandTwentyTwentyFourEquityInvestmentPlanMember SISI:BoardOfDirectorsMember 2024-06-17 2024-06-18 0001300734 SISI:TwoThousandTwentyTwentyFourEquityInvestmentPlanMember SISI:BoardOfDirectorsMember 2024-06-18 0001300734 SISI:SecuritesPurchaseAgreementMember SISI:NonUsInvestorsMember 2024-06-20 2024-06-20 0001300734 SISI:SecuritesPurchaseAgreementMember SISI:NonUsInvestorsMember 2024-06-20 0001300734 SISI:SecuritesPurchaseAgreementMember SISI:NonUsInvestorsMember srt:MaximumMember 2024-06-20 2024-06-20 0001300734 SISI:SecuritesPurchaseAgreementMember SISI:NonUsInvestorsMember 2024-06-30 2024-06-30 0001300734 us-gaap:CommonStockMember SISI:SecuritiesPurchaseAgreementMember 2024-08-22 2024-08-22 0001300734 us-gaap:CommonStockMember SISI:SecuritiesPurchaseAgreementMember 2024-08-22 0001300734 us-gaap:CommonStockMember SISI:SecuritiesPurchaseAgreementMember 2024-07-01 2025-03-31 0001300734 us-gaap:CommonStockMember 2024-10-21 2024-10-21 0001300734 us-gaap:CommonStockMember 2024-10-21 0001300734 us-gaap:CommonStockMember SISI:SecuritiesPurchaseAgreementMember 2024-12-24 2024-12-24 0001300734 us-gaap:CommonStockMember SISI:SecuritiesPurchaseAgreementMember 2024-12-24 0001300734 us-gaap:CommonStockMember SISI:SecuritiesPurchaseAgreementMember us-gaap:SubsequentEventMember 2025-04-01 2025-04-30 0001300734 country:CN us-gaap:SegmentContinuingOperationsMember 2025-03-31 0001300734 country:CN us-gaap:SegmentContinuingOperationsMember 2024-06-30 0001300734 country:CN us-gaap:SegmentDiscontinuedOperationsMember 2025-03-31 0001300734 country:CN us-gaap:SegmentDiscontinuedOperationsMember 2024-06-30 0001300734 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember SISI:TwoCustomerMember us-gaap:SegmentContinuingOperationsMember 2024-07-01 2025-03-31 0001300734 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember SISI:FourCustomerMember us-gaap:SegmentContinuingOperationsMember 2025-01-01 2025-03-31 0001300734 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember SISI:NoCustomerMember us-gaap:SegmentDiscontinuedOperationsMember 2024-07-01 2025-03-31 0001300734 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember SISI:FourCustomerMember us-gaap:SegmentDiscontinuedOperationsMember 2025-01-01 2025-03-31 0001300734 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember SISI:ThreeCustomerMember us-gaap:SegmentContinuingOperationsMember 2023-07-01 2024-03-31 0001300734 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember SISI:ThreeCustomerMember us-gaap:SegmentContinuingOperationsMember 2024-01-01 2024-03-31 0001300734 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember SISI:FourCustomerMember us-gaap:SegmentDiscontinuedOperationsMember 2023-07-01 2024-03-31 0001300734 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember SISI:TwoCustomerMember us-gaap:SegmentDiscontinuedOperationsMember 2024-01-01 2024-03-31 0001300734 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember us-gaap:SegmentContinuingOperationsMember SISI:OneCustomersMember 2024-07-01 2025-03-31 0001300734 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember us-gaap:SegmentDiscontinuedOperationsMember SISI:ThreeCustomersMember 2024-07-01 2025-03-31 0001300734 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember us-gaap:SegmentContinuingOperationsMember SISI:OneCustomersMember 2023-07-01 2024-06-30 0001300734 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember us-gaap:SegmentDiscontinuedOperationsMember SISI:TwoCustomersMember 2023-07-01 2024-06-30 0001300734 us-gaap:AccountsPayableMember us-gaap:SupplierConcentrationRiskMember us-gaap:SegmentContinuingOperationsMember SISI:OneVendorMember 2024-07-01 2025-03-31 0001300734 us-gaap:AccountsPayableMember us-gaap:SupplierConcentrationRiskMember us-gaap:SegmentContinuingOperationsMember SISI:NoVendorMember 2025-01-01 2025-03-31 0001300734 us-gaap:AccountsPayableMember us-gaap:SupplierConcentrationRiskMember us-gaap:SegmentDiscontinuedOperationsMember SISI:TwoVendorMember 2024-07-01 2025-03-31 0001300734 us-gaap:AccountsPayableMember us-gaap:SupplierConcentrationRiskMember us-gaap:SegmentDiscontinuedOperationsMember SISI:FourVendorMember 2025-01-01 2025-03-31 0001300734 us-gaap:AccountsPayableMember us-gaap:SupplierConcentrationRiskMember us-gaap:SegmentContinuingOperationsMember SISI:TwoVendorMember 2023-07-01 2024-03-31 0001300734 us-gaap:AccountsPayableMember us-gaap:SupplierConcentrationRiskMember us-gaap:SegmentContinuingOperationsMember SISI:FourVendorMember 2024-01-01 2024-03-31 0001300734 us-gaap:AccountsPayableMember us-gaap:SupplierConcentrationRiskMember us-gaap:SegmentDiscontinuedOperationsMember SISI:TwoVendorMember 2023-07-01 2024-03-31 0001300734 us-gaap:AccountsPayableMember us-gaap:SupplierConcentrationRiskMember us-gaap:SegmentDiscontinuedOperationsMember SISI:OneVendorMember 2024-01-01 2024-03-31 0001300734 2021-11-25 2021-11-26 0001300734 SISI:LeiZhangAndYanLiMember 2023-07-01 2024-06-30 0001300734 SISI:LoanAgreementMember 2024-04-15 0001300734 SISI:LoanAgreementMember 2024-04-15 2024-04-15 0001300734 SISI:LoanAgreementMember 2025-01-01 2025-03-31 0001300734 SISI:BiowinMember 2025-03-31 0001300734 SISI:BiowinMember 2025-01-01 2025-03-31 0001300734 SISI:LoanAgreementMember SISI:BiowinMember 2024-07-27 0001300734 SISI:LoanAgreementMember SISI:BiowinMember 2024-07-17 2024-07-17 0001300734 SISI:LoanAgreementMember SISI:BiowinMember 2025-01-01 2025-03-31 0001300734 SISI:RapidDiagnosticAndOtherProductsMember us-gaap:SegmentContinuingOperationsMember 2024-07-01 2025-03-31 0001300734 SISI:HealthyMealsProductsMember us-gaap:SegmentContinuingOperationsMember 2024-07-01 2025-03-31 0001300734 SISI:OtherAgriculturalProductsMember us-gaap:SegmentDiscontinuedOperationsMember 2024-07-01 2025-03-31 0001300734 SISI:LuobumaProductsMember us-gaap:SegmentDiscontinuedOperationsMember 2024-07-01 2025-03-31 0001300734 SISI:RapidDiagnosticAndOtherProductsMember 2024-07-01 2025-03-31 0001300734 SISI:HealthyMealsProductsMember 2024-07-01 2025-03-31 0001300734 SISI:OtherAgriculturalProductsMember 2024-07-01 2025-03-31 0001300734 SISI:LuobumaProductsMember 2024-07-01 2025-03-31 0001300734 SISI:RapidDiagnosticAndOtherProductsMember us-gaap:SegmentContinuingOperationsMember 2023-07-01 2024-03-31 0001300734 SISI:HealthyMealsProductsMember us-gaap:SegmentContinuingOperationsMember 2023-07-01 2024-03-31 0001300734 SISI:OtherAgriculturalProductsMember us-gaap:SegmentDiscontinuedOperationsMember 2023-07-01 2024-03-31 0001300734 SISI:LuobumaProductsMember us-gaap:SegmentDiscontinuedOperationsMember 2023-07-01 2024-03-31 0001300734 SISI:RapidDiagnosticAndOtherProductsMember 2023-07-01 2024-03-31 0001300734 SISI:HealthyMealsProductsMember 2023-07-01 2024-03-31 0001300734 SISI:OtherAgriculturalProductsMember 2023-07-01 2024-03-31 0001300734 SISI:LuobumaProductsMember 2023-07-01 2024-03-31 0001300734 SISI:RapidDiagnosticAndOtherProductsMember us-gaap:SegmentContinuingOperationsMember 2025-01-01 2025-03-31 0001300734 SISI:HealthyMealsProductsMember us-gaap:SegmentContinuingOperationsMember 2025-01-01 2025-03-31 0001300734 SISI:OtherAgriculturalProductsMember us-gaap:SegmentDiscontinuedOperationsMember 2025-01-01 2025-03-31 0001300734 SISI:LuobumaProductsMember us-gaap:SegmentDiscontinuedOperationsMember 2025-01-01 2025-03-31 0001300734 SISI:RapidDiagnosticAndOtherProductsMember 2025-01-01 2025-03-31 0001300734 SISI:HealthyMealsProductsMember 2025-01-01 2025-03-31 0001300734 SISI:OtherAgriculturalProductsMember 2025-01-01 2025-03-31 0001300734 SISI:RapidDiagnosticAndOtherProductsMember us-gaap:SegmentContinuingOperationsMember 2024-01-01 2024-03-31 0001300734 SISI:HealthyMealsProductsMember us-gaap:SegmentContinuingOperationsMember 2024-01-01 2024-03-31 0001300734 SISI:OtherAgriculturalProductsMember us-gaap:SegmentDiscontinuedOperationsMember 2024-01-01 2024-03-31 0001300734 SISI:LuobumaProductsMember us-gaap:SegmentDiscontinuedOperationsMember 2024-01-01 2024-03-31 0001300734 SISI:RapidDiagnosticAndOtherProductsMember 2024-01-01 2024-03-31 0001300734 SISI:HealthyMealsProductsMember 2024-01-01 2024-03-31 0001300734 SISI:OtherAgriculturalProductsMember 2024-01-01 2024-03-31 0001300734 SISI:OtherAgriculturalProductsMember 2025-03-31 0001300734 SISI:OtherAgriculturalProductsMember 2024-06-30 0001300734 SISI:RapidDiagnosticAndOtherProductsMember 2025-03-31 0001300734 SISI:RapidDiagnosticAndOtherProductsMember 2024-06-30 0001300734 SISI:HealthyMealsProductsMember 2025-03-31 0001300734 SISI:HealthyMealsProductsMember 2024-06-30 0001300734 SISI:StockPurchaseAgreementMember SISI:ChongqingWintusGroupMember 2023-05-29 2023-05-29 0001300734 SISI:StockPurchaseAgreementMember 2025-03-30 0001300734 SISI:StockPurchaseAgreementMember 2025-03-20 0001300734 SISI:StockPurchaseAgreementMember 2025-03-20 2025-03-20 0001300734 SISI:DreamPartnerLimitedMember 2025-03-20 0001300734 SISI:CostOfProductsMember 2024-07-01 2025-03-31 0001300734 SISI:CostOfProductsMember 2023-07-01 2024-03-31 0001300734 SISI:CostOfProductsMember 2025-01-01 2025-03-31 0001300734 SISI:CostOfProductsMember 2024-01-01 2024-03-31 0001300734 SISI:BusinessAndSalesRelatedTaxMember 2024-07-01 2025-03-31 0001300734 SISI:BusinessAndSalesRelatedTaxMember 2023-07-01 2024-03-31 0001300734 SISI:BusinessAndSalesRelatedTaxMember 2025-01-01 2025-03-31 0001300734 SISI:BusinessAndSalesRelatedTaxMember 2024-01-01 2024-03-31 0001300734 SISI:InfiniCloneLimitedMember us-gaap:SubsequentEventMember SISI:SharePurchaseAgreementMember 2025-04-22 0001300734 us-gaap:SubsequentEventMember SISI:SharePurchaseAgreementMember us-gaap:CommonStockMember 2025-04-22 2025-04-22 0001300734 us-gaap:SubsequentEventMember SISI:SharePurchaseAgreementMember us-gaap:CommonStockMember 2025-04-22 iso4217:USD xbrli:shares iso4217:USD xbrli:shares iso4217:CNY SISI:Integer utr:acre xbrli:pure

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number: 001-37776

SHINECO, INC.

(Exact name of registrant as specified in its charter)

Delaware

52-2175898

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

Room 1707, Block D, Modern City SOHO

No. 88, Jianguo Road, Chaoyang District,

Beijing, People’s Republic of China, 100022

(Address of principal executive offices) (Zip Code)

(+86) 10-87227366

(Registrant’s telephone number, including area code)

(Former address of principal executive offices) (Zip Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		SISI		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 15, 2025, there were 20,745,846 shares of common stock, par value $0.001 per share, outstanding.

TABLE OF CONTENTS

		Page Number

PART I. FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1

	Condensed Consolidated Balance Sheets (unaudited)	1

	Condensed Consolidated Statements of Loss and Comprehensive Loss (unaudited)	2

	Condensed Consolidated Statements of Changes in Equity (unaudited)	3

	Condensed Consolidated Statements of Cash Flows (unaudited)	5

	Notes to the Condensed Consolidated Financial Statements (unaudited)	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	51

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	72

Item 4.	Controls and Procedures	72

PART II. OTHER INFORMATION		73

Item 1.	Legal Proceedings	73

Item 1A.	Risk Factors	73

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73

Item 3.	Defaults Upon Senior Securities	73

Item 4.	Mine Safety Disclosures	73

Item 5.	Other Information	73

Item 6.	Exhibits	74

SIGNATURES		75

On October 21, 2024, the Company’s stockholders approved a reverse stock split of the Company’s common stock, with a par value of $0.001 per share (the “Common Stock”), at a ratio of not less than 1-for-2 and not more than 1-for-24, subject to the Company’s board of directors’ (the “Board”) authority to determine the ratio, and on October 23, 2024, the Board approved a 1-for-24 reverse stock split of the Common Stock, which became effective on November 12, 2024 (the “Reverse Stock Split”). As a result of the Reverse Stock Split, each of the twenty-four pre-split shares of the Common Stock outstanding automatically combined and converted to one issued and outstanding share of the Common Stock without any action on the part of the stockholders. Unless otherwise indicated, all share amounts and per share amounts in this report have been presented to give effect to the 1-for-24 reverse stock split of the shares of the Common Stock.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SHINECO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


ASSETS
	March 31,			June 30,
	2025			2024
		(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	192,735		$	151,881
Accounts receivable, net		317			357
Due from related parties, net		24,456			24,424
Inventories, net		204,470			279,969
Advances to suppliers, net		1,011			33,863
Other current assets, net		12,132,571			6,916,051
Current assets held for discontinued operations		22,363,220			13,497,416
TOTAL CURRENT ASSETS		34,918,780			20,903,961

Property and equipment, net		73,008			1,120,318
Intangible assets, net		9,849,888			10,809,460
Goodwill		2,018,747			2,018,747
Operating lease right-of-use assets		68,729			145,323
Non-current assets held for discontinued operations		38,573,393			49,181,570
TOTAL ASSETS	$	85,502,545		$	84,179,379


LIABILITIES AND EQUITY

CURRENT LIABILITIES:
Short-term loans	$	1,747,681		$	2,250,019
Accounts payable		78,715			104,136
Advances from customers		26,958			28,932
Due to related parties		254,125			1,160,920
Other payables and accrued expenses		4,685,444			1,956,609
Operating lease liabilities - current		306,236			272,787
Convertible note payable		9,741,322			4,194,841
Deferred income		-			3,810
Taxes payable		662,587			665,782
Current liabilities held for discontinued operations		31,099,110			16,925,019
TOTAL CURRENT LIABILITIES		48,602,178			27,562,855

Income tax payable - noncurrent portion		186,191			186,191
Operating lease liabilities - non-current		6,137			-
Convertible note payable - non-current		-			8,937,173
Deferred tax liability		1,000,597			1,188,718
Non-current liabilities held for discontinued operations		9,646,807			9,726,747
TOTAL LIABILITIES		59,441,910			47,601,684

Commitments and contingencies		-			-

EQUITY:
Common stock; par value $0.001, 150,000,000 shares authorized;
17,345,846 and 332,215 shares issued and outstanding at March 31, 2025 and June 30, 2024*		17,346			332
Common stock; par value $0.001, 150,000,000 shares authorized; 17,345,846 and 332,215 shares issued and outstanding at March 31, 2025 and June 30, 2024*		17,346			332
Additional paid-in capital		123,281,225			69,476,805
Subscription receivable		(36,192,350	)		-
Subscribed common stock		-			6,728,291
Statutory reserve		4,350,297			4,350,297
Accumulated deficit		(73,102,508	)		(54,336,629	)
Accumulated other comprehensive loss		(189,035	)		(218,163	)
Total Stockholders’ equity of Shineco, Inc.		18,164,975			26,000,933
Non-controlling interest		7,895,660			10,576,762
TOTAL EQUITY		26,060,635			36,577,695

TOTAL LIABILITIES AND EQUITY	$	85,502,545		$	84,179,379

Retrospectively restated for effect of the Reverse Stock Split on November 12, 2024.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SHINECO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(Unaudited)

	2025			2024			2025			2024
	For the Nine Months Ended March 31,						For the Three Months Ended March 31,
	2025			2024			2025			2024

REVENUE	$	259,040		$	459,572		$	40,971		$	149,346

COST OF REVENUE
Cost of products		135,852			211,192			54,899			77,601
Business and sales related tax		855			1,941			183			592
Total cost of revenue		136,707			213,133			55,082			78,193

GROSS INCOME (LOSS)		122,333			246,439			(14,111	)		71,153

OPERATING EXPENSES
General and administrative expenses		5,069,621			7,474,070			3,710,940			1,081,331
Selling expenses		88,030			157,654			20,113			61,216
Research and development expenses		54,602			77,811			15,487			31,895
Total operating expenses		5,212,253			7,709,535			3,746,540			1,174,442

LOSS FROM OPERATIONS		(5,089,920	)		(7,463,096	)		(3,760,651	)		(1,103,289	)

OTHER INCOME (EXPENSE)
Gain from disposal of a subsidiary		114,945			-			-			-
Other income, net		3,505			79,520			25,553			24,696
Amortization of debt issuance costs		(482,664	)		(612,072	)		(146,976	)		(246,015	)
Interest expenses, net		(318,001	)		(770,898	)		(262,239	)		(250,899	)
Total other expenses		(682,215	)		(1,303,450	)		(383,662	)		(472,218	)

LOSS BEFORE PROVISION FOR INCOME TAXES FROM CONTINUING OPERATIONS		(5,772,135	)		(8,766,546	)		(4,144,313	)		(1,575,507	)

BENEFIT FOR INCOME TAXES		(187,854	)		(152,646	)		(62,170	)		(51,892	)

NET LOSS FROM CONTINUING OPERATIONS		(5,584,281	)		(8,613,900	)		(4,082,143	)		(1,523,615	)

DISCONTINUED OPERATIONS:
Loss from discontinued operations, net of taxes		(15,874,674	)		(4,373,509	)		(12,529,001	)		(2,845,113	)
Income from disposal of discontinued operations		-			8,904,702			-			-
Net income (loss) from discontinued operations		(15,874,674	)		4,531,193			(12,529,001	)		(2,845,113	)

NET LOSS		(21,458,955	)		(4,082,707	)		(16,611,144	)		(4,368,728	)

Net loss attributable to non-controlling interest		(2,693,076	)		(1,772,714	)		(1,492,447	)		(1,019,982	)

NET LOSS ATTRIBUTABLE TO SHINECO, INC.	$	(18,765,879	)	$	(2,309,993	)	$	(15,118,697	)	$	(3,348,746	)

COMPREHENSIVE LOSS
Net loss	$	(21,458,955	)	$	(4,082,707	)	$	(16,611,144	)	$	(4,368,728	)
Other comprehensive income (loss): foreign currency translation income (loss)		41,102			105,780			46,688			(32,575	)
Total comprehensive loss		(21,417,853	)		(3,976,927	)		(16,564,456	)		(4,401,303	)
Less: comprehensive loss attributable to non-controlling interest		(2,681,102	)		(1,777,309	)		(1,488,128	)		(1,033,976	)

COMPREHENSIVE LOSS ATTRIBUTABLE TO SHINECO, INC.	$	(18,736,751	)	$	(2,199,618	)	$	(15,076,328	)	$	(3,367,327	)

Weighted average number of shares basic and diluted		6,048,079			204,157			15,694,600			267,734

Basic and diluted loss per common share	$	(3.10	)	$	(11.32	)	$	(0.96	)	$	(12.51	)

Earnings (loss) per common share
Continuing operations - Basic and Diluted		(0.84	)		(39.50	)		(0.25	)		(5.03	)
Discontinued operations - Basic and Diluted		(2.26	)		28.18			(0.71	)		(7.48	)
Net loss per common share - basic and diluted		(3.10	)		(11.32	)		(0.96	)		(12.51	)

* Retrospectively restated for effect of the Reverse Stock Split on November 12, 2024.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

SHINECO, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE NINE MONTHS ENDED MARCH 31, 2025 AND 2024

(UNAUDITED)

																			ACCUMULATED
								COMMON			ADDITIONAL								OTHER			NON-
	COMMON STOCK				SUBSCRIPTION			STOCK			PAID-IN			STATUTORY		ACCUMULATED			COMPREHENSIVE			CONTROLLING			TOTAL
	SHARES*		AMOUNT		RECEIVABLE			SUBSCRIBED			CAPITAL			RESERVE		DEFICIT			LOSS			INTEREST			EQUITY
Balance at June 30, 2023		109,972	$	110	$	(3,782,362	)	$	-		$	68,873,846		$	4,198,107	$	(31,735,422	)	$	(4,992,381	)	$	4,291,148		$	36,853,046

Acquisition of Wintus		41,667		42		-			-			2,299,958			-		-			(110,788	)		8,197,473			10,386,685
Disposal of Tenet-Jove		-		-		-			-			(8,904,702	)		-		-			4,880,164			-			(4,024,538	)
Stock issuance		50,000		50		-			-			1,439,950			-		-			-			-			1,440,000
Effect of rounding fractional shares into whole shares upon Reverse Stock Split		1,378		1		-			-			(1	)		-		-			-			-			-
Proceeds received from investors for subscription of common stock		-		-		-			285,714			-			-		-			-			-			285,714
Forgiveness of subscription receivable		-		-		3,024,000			-			-			-		-			-			-			3,024,000
Issuance of common shares for convertible notes redemption		49,711		50		-			-			1,595,670			-		-			-			-			1,595,720
Common stock issued for management and employees		15,854		16		580,030			-			540,295			-		-			-			-			1,120,341
Net loss from continuing operations for the period		-		-		-			-			-			-		(8,063,476	)		-			(550,424	)		(8,613,900	)
Net income (loss) from discontinued operation for the period		-		-		-			-			-			-		5,753,483			-			(1,222,290	)		4,531,193
Foreign currency translation gain (loss)		-		-		-			-			-			-		-			110,375			(4,595	)		105,780
Balance at March 31, 2024		268,582	$	269	$	(178,332	)	$	285,714		$	65,845,016		$	4,198,107	$	(34,045,415	)	$	(112,630	)	$	10,711,312		$	46,704,041

Balance at June 30, 2024		332,215	$	332	$	-		$	6,728,291		$	69,476,805		$	4,350,297	$	(54,336,629	)	$	(218,163	)	$	10,576,762		$	36,577,695

Stock issuance		15,760,590		15,761		(36,192,350	)		(6,728,291	)		49,695,542			-		-			-			-			6,790,662
Effect of rounding fractional shares into whole shares upon Reverse Stock Split		165,389		165		-			-			(165	)		-		-			-			-			-
Issuance of common shares for convertible notes redemption		1,076,635		1,077		-			-			3,968,922			-		-			-			-			3,969,999
Common stock issued for management and employees		11,017		11		-			-			140,121			-		-			-			-			140,132
Net loss from continuing operations for the year		-		-		-			-			-			-		(5,082,075	)		-			(502,206	)		(5,584,281	)
Net loss from discontinued operation for the period		-		-		-			-			-			-		(13,683,804	)		-			(2,190,870	)		(15,874,674	)
Foreign currency translation gain		-		-		-			-			-			-		-			29,128			11,974			41,102
Balance at March 31, 2025		17,345,846	$	17,346	$	(36,192,350	)	$	-		$	123,281,225		$	4,350,297	$	(73,102,508	)	$	(189,035	)	$	7,895,660		$	26,060,635

Retrospectively restated for effect of the Reverse Stock Split on November 12, 2024.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SHINECO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(UNAUDITED)

								COMMON		ADDITIONAL								ACCUMULATED OTHER			NON-
	COMMON STOCK				SUBSCRIPTION			STOCK		PAID-IN			STATUTORY		ACCUMULATED			COMPREHENSIVE			CONTROLLING			TOTAL
	SHARES*		AMOUNT		RECEIVABLE			SUBSCRIBED		CAPITAL			RESERVE		DEFICIT			LOSS			INTEREST			EQUITY
Balance at December 31, 2023		267,204	$	268	$	(178,332	)	$	-	$	65,845,017		$	4,198,107	$	(30,696,669	)	$	(94,049	)	$	11,745,288		$	50,819,630

Effect of rounding fractional shares into whole shares upon Reverse Stock Split		1,378		1		-			-		(1	)		-		-			-			-			-
Proceeds received from investors for subscription of common stock		-		-		-			285,714		-			-		-			-			-			285,714
Net loss from continuing operations for the period		-		-		-			-		-			-		(1,346,876	)		-			(176,739	)		(1,523,615	)
Net loss from discontinued operation for the period		-		-		-			-		-			-		(2,001,870	)		-			(843,243	)		(2,845,113	)
Foreign currency translation loss		-		-		-			-		-			-		-			(18,581	)		(13,994	)		(32,575	)
Balance at March 31, 2024		268,582	$	269	$	(178,332	)	$	285,714	$	65,845,016		$	4,198,107	$	(34,045,415	)	$	(112,630	)	$	10,711,312		$	46,704,041

Balance at December 31, 2024		2,179,844	$	2,180	$	(3,522,170	)	$	-	$	90,496,390		$	4,350,297	$	(57,983,811	)	$	(231,404	)	$	9,383,788		$	42,495,270
Balance		2,179,844	$	2,180	$	(3,522,170	)	$	-	$	90,496,390		$	4,350,297	$	(57,983,811	)	$	(231,404	)	$	9,383,788		$	42,495,270

Stock issuance		15,000,000		15,000		(32,670,180	)		-		32,685,000			-		-			-			-			29,820
Issuance of common shares for convertible notes redemption		166,002		166		-			-		99,835			-		-			-			-			100,001
Net loss from continuing operations for the period		-		-		-			-		-			-		(3,897,188	)		-			(184,955	)		(4,082,143	)
Net loss from discontinued operation for the period		-		-		-			-		-			-		(11,221,509	)		-			(1,307,492	)		(12,529,001	)
Foreign currency translation loss		-		-		-			-		-			-		-			42,369			4,319			46,688
Balance at March 31, 2025		17,345,846	$	17,346	$	(36,192,350	)	$	-	$	123,281,225		$	4,350,297	$	(73,102,508	)	$	(189,035	)	$	7,895,660		$	26,060,635
Balance		17,345,846	$	17,346	$	(36,192,350	)	$	-	$	123,281,225		$	4,350,297	$	(73,102,508	)	$	(189,035	)	$	7,895,660		$	26,060,635

Retrospectively restated for effect of the Reverse Stock Split on November 12, 2024.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SHINECO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	2025			2024
	For the Nine Months Ended March 31,
	2025			2024

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(21,458,955	)	$	(4,082,707	)
Net income (loss) from discontinued operations, net of tax		(15,874,674	)		4,531,193
Net loss from continuing operations		(5,584,281	)		(8,613,900	)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,004,266			1,019,419
Allowance for (net recovery of) credit losses and doubtful accounts		(302,781	)		95,770
Reversal of inventory reserve		(30,690	)		(26,362	)
Deferred tax benefit		(187,854	)		(152,647	)
Gain from disposal of a subsidiary		(114,945	)		-
Amortization of right of use assets		129,008			56,721
Forgiveness of subscription receivable		-			3,024,000
Common stock issued for management and employees		140,132			540,310
Amortization of debt issuance and other costs		482,664			612,072
Accrued interest expense for convertible notes		496,644			682,003
Accrued interest expense for loans and others		322,098			-
Accrued interest income from third parties		(576,800	)		(17,949	)

Changes in operating assets and liabilities:
Accounts receivable		4,734			12,256
Advances to suppliers		1,128			(33,057	)
Inventories		107,029			19,941
Other current assets		(380,361	)		(24,914	)
Accounts payable		(25,732	)		(84,454	)
Contract liabilities		(2,025	)		-
Deferred income		2,561			-
Other payables and accrued expenses		1,954,038			647,941
Other long-term payable		-			(36,107	)
Operating lease liabilities		(12,207	)		(25,182	)
Taxes payable		(3,223	)		(13,942	)
Net cash used in operating activities from continuing operations		(2,576,597	)		(2,318,081	)
Net cash used in operating activities from discontinued operations		(543,619	)		(743,939	)
Net cash used in operating activities		(3,120,216	)		(3,062,020	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of property and equipment		-			(34,127	)
Payment made for loans to third parties		(532,251	)		(1,544,006	)
Repayment from loan to third parties		330,080			50,000
Repayments of loans to related parties		-			(27,428	)
Investment in unconsolidated entity		-			(26,039	)
Prepayment for business acquisition		(2,630,000	)		-
Disposal of a subsidiary, net of cash		(103	)		-
Disposal of VIEs - Tenet-Jove, net of cash		-			(13,889,752	)
Net cash used in investing activities from continuing operations		(2,832,274	)		(15,471,352	)
Net cash used in investing activities from discontinued operations		(152,168	)		1,531,635
Net cash used in by investing activities		(2,984,442	)		(13,939,717	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term loans		-			1,216,623
Repayment of short-term loans		-			(416,623	)
Proceeds from loan from third party		62,423			-
Repayment of loan from third party		(571,163	)		-
Repayment of convertible note		(400,000	)		-
Proceeds from issuance of common stock		6,790,661			2,020,030
Proceeds received from investors for subscription of common stock		-			276,929
Proceeds from (repayments of) advances from related parties		(431,795	)		569,715
Net cash provided by financing activities from continuing operations		5,450,126			3,666,674
Net cash provided by (used in) financing activities from discontinued operations		545,690			(481,726	)
Net cash provided by financing activities		5,995,816			3,184,948

EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS		936			215,513

NET DECREASE IN CASH AND CASH EQUIVALENTS		(107,906	)		(13,601,276	)

CASH AND CASH EQUIVALENTS - Beginning of the period		395,036			14,166,759

CASH AND CASH EQUIVALENTS - End of the period	$	287,130		$	565,483

Less: cash and cash equivalents of discontinued operations - Ended of the period		94,395			168,712

Cash and cash equivalents of continuing operations - Ended of the period	$	192,735		$	396,771

SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for interest	$	473,981		$	436,081

SUPPLEMENTAL NON-CASH OPERATING, INVESTING AND FINANCING ACTIVITIES:
Issuance of common shares for convertible notes redemption	$	3,969,999		$	1,595,720
Issuance of common shares for proceeds received in prior year	$	6,728,291		$	-
Issuance of common shares for business acquisition	$	-		$	2,300,000
Transferal of equity interest of Tenet Jove for business acquisition of Wintus	$	-		$	37,705,951
Right-of-use assets obtained in exchange for operating lease obligations	$	41,800		$	32,828

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS

Shineco, Inc. (“Shineco” or the “Company”) was incorporated in the State of Delaware on August 20, 1997. The Company is a holding company whose primary purpose is to develop business opportunities in the People’s Republic of China (the “PRC” or “China”).

On December 30, 2004, the Company acquired all of the issued and outstanding shares of Beijing Tenet-Jove Technological Development Co., Ltd. (“Tenet-Jove”), a PRC company, in exchange for restricted shares of the Company’s common stock, and the sole operating business of the Company became that of its subsidiary, Tenet-Jove. Tenet-Jove was incorporated on December 15, 2003 under the laws of China. Consequently, Tenet-Jove became a 100% owned subsidiary of Shineco and was officially granted the status of a wholly foreign-owned entity by Chinese authorities on July 14, 2006. This transaction was accounted for as a recapitalization. Tenet-Jove owns 90% interest of Tianjin Tenet Huatai Technological Development Co., Ltd. (“Tenet Huatai”).

On December 31, 2008, June 11, 2011, and May 24, 2012, Tenet-Jove entered into a series of contractual agreements including an Executive Business Cooperation Agreement, a Timely Reporting Agreement, an Equity Interest Pledge Agreement, and an Executive Option Agreement (collectively, the “VIE Agreements”), with each one of the following entities, Ankang Longevity Pharmaceutical (Group) Co., Ltd. (“Ankang Longevity Group”), Yantai Zhisheng International Freight Forwarding Co., Ltd. (“Zhisheng Freight”) and Qingdao Zhihesheng Agricultural Produce Services., Ltd. (“Qingdao Zhihesheng”). On February 24, 2014, Tenet-Jove entered into the same series of contractual agreements with Shineco Zhisheng (Beijing) Bio-Technology Co., Ltd. (“Zhisheng Bio-Tech”), which was incorporated in 2014. Zhisheng Bio-Tech, Zhisheng Freight and Qingdao Zhihesheng are collectively referred to herein as the “Zhisheng VIEs.”

Pursuant to the VIE Agreements, Tenet-Jove had the exclusive right to provide to the Zhisheng VIEs and Ankang Longevity Group consulting services related to their business operations and management. All the above contractual agreements obligated Tenet-Jove to absorb a majority of the risk of loss from the Zhisheng VIEs and Ankang Longevity Group’s activities and entitled Tenet-Jove to receive a majority of their residual returns. In essence, Tenet-Jove became the primary beneficiary of the operations of the Zhisheng VIEs and Ankang Longevity Group. Therefore, the Zhisheng VIEs and Ankang Longevity Group were treated as variable interest entities (“VIEs”) under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation.” Accordingly, the accounts of these entities are consolidated with those of Tenet-Jove.

Since Shineco was effectively controlled by the majority shareholders of the Zhisheng VIEs and Ankang Longevity Group, Shineco owns 100% of Tenet-Jove. Accordingly, Shineco, Tenet-Jove, and the VIEs, the Zhisheng VIEs and Ankang Longevity Group were effectively controlled by the same majority shareholders. Therefore, Shineco, Tenet-Jove, and the VIEs of Tenet-Jove were considered under common control. The consolidation of Tenet-Jove and its VIEs into Shineco was accounted for at historical cost.

On September 30, 2017, Tenet-Jove established Xinjiang Shineco Taihe Agriculture Technology Ltd. (“Xinjiang Taihe”) with registered capital of RMB10.0 million (approximately US$1.5 million). On September 30, 2017, Tenet-Jove established Xinjiang Tianyi Runze Bioengineering Co., Ltd. (“Runze”) with registered capital of RMB10.0 million (approximately US$1.5 million). Xinjiang Taihe and Runze became wholly-owned subsidiaries of Tenet-Jove. The Company ceased the business operation of Xinjiang Taihe and Runze in September 2020 and October 2020, respectively.

On December 10, 2016, Tenet-Jove entered into a purchase agreement with Tianjin Tajite E-Commerce Co., Ltd. (“Tianjin Tajite”), an online e-commerce company based in Tianjin, China, specializing in distributing Luobuma related products and branded products of Daiso 100-yen shops, pursuant to which Tenet-Jove would acquire a 51% equity interest in Tianjin Tajite for cash consideration of RMB14,000,000 (approximately US$2.1 million). On December 25, 2016, the Company paid the full amount as the deposit to secure the deal. In May 2017, the Company amended the agreement and required Tianjin Tajite to satisfy certain preconditions related to product introductions into China. On October 26, 2017, the Company completed the acquisition for 51% of the shares in Tianjin Tajite. On May 5, 2019, two minority shareholders of Tianjin Tajite transferred their 26.4% of the equity interest to the Company. There was no consideration paid for the transfers, and after the transfers, the Company owns 77.4% equity interest of Tianjin Tajite.

On March 13, 2019, Tenet-Jove established Beijing Tenjove Newhemp Biotechnology Co., Ltd. (“TNB”) with registered capital of RMB10.0 million (approximately US$1.5 million). TNB became a wholly-owned subsidiary of Tenet-Jove. The operations of TNB ceased on May 15, 2023.

On July 23, 2020, Shanghai Jiaying International Trade Co., Ltd. (“Shanghai Jiaying”) was established with registered capital of RMB200 million (approximately US$29.9 million). Tenet-Jove owned an equity interest of 90% of Shanghai Jiaying, and the remaining 10% equity interests was owned by an individual shareholder. Jiaying Trade did not engage in any active business operations, and the operations of Shanghai Jiaying ceased on December 21, 2021.

On January 7, 2021, Inner Mongolia Shineco Zhonghemp Biotechnology Co., Ltd. (“SZB”) was established with registered capital of RMB50 million (approximately US$7.5 million). Tenet-Jove owned an equity interest of 55% of SZB, and the remaining 45% equity interests was owned by an individual shareholder. SZB is currently not engaging in any active business operations.

On June 8, 2021, Tenet-Jove entered into a Restructuring Agreement with various parties. Pursuant to the terms of the Restructuring Agreement, (i) the Company transferred all of its rights and interests in Ankang Longevity to the Shareholders of Yushe County Guangyuan Forest Development Co., Ltd. (“Guangyuan”) in exchange for the control of 100% of equity interests and assets in Guangyuan; (ii) Tenet-Jove entered a Termination Agreement with Ankang Longevity and the Ankang Shareholders; (iii) as a consideration to the Restructuring Agreement and based on a valuation report on the equity interests of Guangyuan issued by an independent third party, Tenet-Jove relinquished all of its rights and interests in Ankang Longevity and transferred those rights and interests to the Guangyuan Shareholders; and (iv) Guangyuan and the Guangyuan Shareholders entered into a series of variable interest entity agreements with Tenet-Jove. After signing the Restructuring Agreement, the Company and the shareholders of Ankang and Guangyuan actively carried out the transferring of rights and interests in Ankang and Guangyuan, and the transferring was completed subsequently on July 5, 2021. Afterwards, with the completion of all other follow-ups works, on August 16, 2021, the Company, through its subsidiary Tenet-Jove, completed the previously announced acquisition pursuant to the Restructuring Agreement dated June 8, 2021.

On December 7, 2021, the Company established Shineco Life Science Research Co., Ltd. (“Life Science”) as a wholly foreign-owned entity with registered capital of US$10.0 million.

On April 13, 2022, the Company established Shineco Life Science Group Hong Kong Co., Limited (“Shineco Life”) as a wholly owned entity with registered capital of US$10.0 million. On April 24, 2022, the Company entered into a Share Transfer Agreement with Shineco Life. Pursuant to the agreement, the Company transferred its 100% of the equity interest of Life Science to Shineco Life. There was no consideration paid for the transfer, and after the transfer, Life Science became a wholly-owned subsidiary of Shineco Life.

On May 16, 2023, Fuzhou Meida Health Management Co., Ltd (“Fuzhou Meida”), formerly known as Pangke Planet (Fuzhou) Health Management Co., Ltd, was established with registered capital of RMB1.0 million (approximately US$0.1 million). Life Science owned an equity interest of 51% of Fuzhou Meida, and the remaining 49% equity interests was owned by two shareholders.

On May 16, 2023, Shinkang Technology (Jiangsu) Co., Ltd (“Shinkang”) was established with registered capital of RMB10.0 million (approximately US$1.4 million). Life Science owned an equity interest of 51% of Shinkang, and the remaining 49% equity interests was owned by one shareholder. Shinkang is currently not engaging in any active business operations.

On May 23, 2023, Life Science established Beijing Shineco Chongshi Information Consulting Co., Ltd (“Chongshi”) as a wholly owned entity with registered capital of RMB0.1 million (approximately US$0.01 million). On November 20, 2024, the Company entered into an agreement to transferred 100% equity interests in Chongshi to a third party. See Note 8.

On December 30, 2022, Shineco Life closed the acquisition of 51% of the issued equity interests of Changzhou Biowin Pharmaceutical Co., Ltd. (“Biowin”), a company established under the laws of China, pursuant to the previously announced stock purchase agreement, dated as of October 21, 2022, among Beijing Kanghuayuan Medicine Information Consulting Co., Ltd., a company established under the laws of China (“Seller”), Biowin, the Company and Shineco Life. As the consideration for the acquisition, the Company paid to Seller US$9,000,000 in cash and the Company issued 13,583 shares of the Company’s common stock, par value US$0.001 per share, to the equity holders of Biowin or any persons designated by Biowin. According to the Supplementary Agreement, dated as of December 30, 2022, by and among Shineco Life, the Seller and Biowin, the Seller owned 51% of the issued equity interests of Biowin before January 1, 2023, and transferred the 51% of the issued equity interests of Biowin together with its controlling rights of production and operation of Biowin to Shineco Life on January 1, 2023.

On May 29, 2023, Shineco Life entered into a stock purchase agreement with Dream Partner Limited, a BVI corporation (“Dream Partner”), Chongqing Wintus Group, a corporation incorporated under the laws of mainland China (“Wintus”), and certain shareholders of Dream Partner (the “Wintus Sellers”), pursuant to which Shineco Life shall acquire 71.42% equity interest in Wintus (the “Wintus Acquisition”). As the consideration for the Wintus Acquisition, the Company (a) paid the Wintus Sellers an aggregate cash consideration of US$2,000,000; (b) issued certain shareholders, as listed in the agreement, an aggregate of 41,667 shares of the Company’s restricted Common Stock; and (c) transferred and sold to the Wintus Sellers 100% of the Company’s equity interest in Tenet-Jove.

On January 9, 2025, Shineco Life established Beijing Shineco Chonggao Technology Co., Ltd. (“Chonggao”) as a wholly foreign-owned entity with registered capital of RMB1.0 million (approximately US$0.14 million).

On March 20, 2025, Shineco Life entered into a stock purchase agreement with Yi Yang (the “Seller”), a current and only shareholder of FuWang (HK) International Company Limited (“FuWang (HK)”), a company limited by shares incorporated in Hong Kong. Pursuant to the agreement, the Seller sold 75% of the equity interests in FuWang (HK) to Shineco Life (“FuWang Acquisition”). In consideration of the FuWang Acquisition, (a) Shineco Life paid the Seller RMB 63.89 million in cash, (b) the Company issued and transferred 3,400,000 shares of the Company’s common stock, par value $0.001 per share to the Seller, and (c) the Company transferred its 71.42% equity interests in Dream Partner to the Seller. The Company obtained the controlling rights of production and operation of FuWang (HK) on April 1, 2025.

The Company, through its subsidiaries, currently operates two main business segments: 1) Biowin specializes in the development, production and distribution of innovative rapid diagnostic products and related medical devices for the most common diseases (“Rapid Diagnostic and Other Products”); and (2) Fuzhou Meida operates a health-oriented chain restaurant that specializes in developing healthy meals for people with slow metabolic health and those in recovery from metabolic disorders. Due to the Wintus Acquisition and FuWang Acquisition mentioned above, the Company’s business segments, that were operated by Tenet-Jove and its subsidiaries, Guangyuan and Zhisheng VIEs which Tenet-Jove is the primary beneficiary of (the “Tenet-Jove Disposal Group”) and Wintus, are classified as discontinued operations on the Company’s unaudited condensed consolidated financial statements. These business segments are: 1) Tenet-Jove is engaged in manufacturing and selling Bluish Dogbane and related products, also known in Chinese as “Luobuma,” including therapeutic clothing and textile products made from Luobuma; 2) Qingdao Zhihesheng and Guangyuan are engaged in planting, processing, and distributing green agricultural produce; (“Agricultural Products”); 3) Zhisheng Freight is providing domestic and international logistic services (“Freight Services”); and 4) Wintus is engaged in producing, processing and distribution of agricultural products, such as silk and silk fabrics as well as trading of fresh fruit (“Other Agricultural Products”).

NOTE 2. GOING CONCERN

As disclosed in the Company’s unaudited condensed consolidated financial statements, the Company had recurring net losses from continuing operations of US$5.6 million and US$8.6 million, and continuing cash outflow of US$2.6 million and US$2.3 million from operating activities for the nine months ended March 31, 2025 and 2024, respectively. As of March 31, 2025 and June 30, 2024, the Company had accumulated a deficit of US$73.1 million and US$54.3 million, and as of March 31, 2025, the Company had negative working capital of US$13.7 million. The Company’s management believes these factors raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve months. In assessing the Company’s going concern, the Company’s management monitors and analyzes the Company’s cash on-hand and its ability to generate sufficient revenue sources in the future to support its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Direct offering and debt financing have been utilized to finance the working capital requirements of the Company. The continuation of the Company as a going concern through the next twelve months is dependent on the continued financial support from its stockholders.

Despite those negative financial trends, as of March 31, 2025, the Company had taken the following actions to enhance the Company’s liquidity:

1)	On June 20, 2024, the Company entered into a securities purchase agreement with certain non-U.S. investors (the “June 2024 Purchasers”), pursuant to which the Company agreed to sell, and the Purchasers agreed to purchase, severally and not jointly, an aggregate of 58,333 shares of common stock of the Company (the “June 2024 Shares”) at an offering price of US$120.00 per share for gross proceeds of up to US$7.0 million. As of June 30, 2024, proceeds of approximately US$6.4 million were received by the Company, and the remaining proceeds were fully received by the Company in July 2024, and all of the June 2024 Shares were issued on July 8, 2024.

2)	On July 11, 2024, the Company entered into an Underwriting Agreement with EF Hutton LLC, as the representative for several underwriters, relating to the underwritten public offering (the “Offering”) of 77,882 shares of common stock at a public offering price of US$25.68 per share, for aggregate gross proceeds of approximately US$2.0 million, prior to deducting underwriting discounts and other offering expenses. In addition, the Company granted the underwriters a 45-day option to purchase up to an additional 11,683 shares of common stock at the public offering price per share, less the underwriting discounts to cover over-allotments, if any. The Offering closed on July 15, 2024, and the 45-day option expired on August 30, 2024. The net proceeds from the offering were approximately US$1.7 million, after deducting the estimated underwriting discounts and commissions and estimated offering expenses.

3)	On August 22, 2024, the Company entered into a securities purchase agreement (the “SPA”) with 22 purchasers, each an unrelated third party to the Company (collectively, the “August 2024 Purchasers”). Pursuant to the SPA, the August 2024 Purchasers agree to purchase, and the Company agreed to issue and sell to the August 2024 Purchasers, an aggregate of 624,375 shares of the Company’s common stock, par value US$0.001 per share (the “August 2024 Shares”), at a purchase price of US$13.20 per share, and for an aggregate purchase price of US$8,241,750. The SPA, the transaction contemplated thereby, and the issuance of the August 2024 Shares have been approved by the Company’s board of directors. The closing of the transaction contemplated by the SPA took place on September 10, 2024. As of March 31, 2025, proceeds of approximately US$4.7 million were received by the Company, and the remaining proceeds are expected to be fully received by June 30, 2025.

4)	On December 24, 2024, the Company entered into a securities purchase agreement with nine non-U.S. investors (the “Purchasers”), pursuant to which the Company agreed to sell, and the December 2024 Purchasers agreed to purchase, severally and not jointly, an aggregate of 15,000,000 shares of common stock of the Company (the “Shares”) at a purchase price of US$2.18 per share for gross proceeds of US$32.7 million. In reliance on the Purchasers’ representations to the Company, the Shares were not subject to the registration requirements of the Securities Act, pursuant to Regulation S promulgated thereunder. The Shares were issued to the Purchasers on January 10, 2025, and the proceeds of approximately US$27.6 million were received in April 2025. The remaining proceeds are expected to be fully received by June 30, 2025.

Management believes that the foregoing measures collectively will provide sufficient liquidity for the Company to meet its future liquidity needs for at least the 12 months following the date of this filing.

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information pursuant to the rules of the SEC and have been consistently applied. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended June 30, 2024, which was filed on September 30, 2024.

The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries, for which the Company is the primary beneficiary, including the Hong Kong-registered entities and PRC-registered entities owned by the Company. The results of subsidiaries acquired or disposed of are recorded in the unaudited condensed consolidated income statements from the effective date of acquisition or up to the effective date of disposal, as appropriate. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power, or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meetings of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. However, if the Company demonstrates its ability to control the VIE through the power to govern the activities that most significantly impact the VIE’s economic performance and is obligated to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, then the entity is consolidated. All intercompany transactions and balances among the Company, its subsidiaries, and the VIE have been eliminated upon consolidation.

Consolidation of Variable Interest Entities

VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes.

There are no consolidated assets of the VIEs and the VIEs’ subsidiaries that are collateral for the obligations of the VIEs and the VIEs’ subsidiaries and can only be used to settle the obligations of the VIEs and the VIEs’ subsidiaries.

As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors or beneficial interest holders of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs in normal course of business.

There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs and the VIEs’ subsidiaries. However, if the VIEs and the VIEs’ subsidiaries ever need financial support, the Company or its subsidiaries may, at their option and subject to statutory limits and restrictions, provide financial support to the VIEs and the VIEs’ subsidiaries through loans to the shareholder of the VIEs and the VIEs’ subsidiaries or entrustment loans to the VIEs and the VIEs’ subsidiaries.

The carrying amount of the VIEs and their subsidiaries’ consolidated income information held for discontinued operations were as follows:

	2025		2024		2025		2024
	For the nine months ended March 31,				For the three months ended March 31,
	2025		2024		2025		2024
Income from operations	$	-	$	60,426	$	-	$	-
Net income	$	-	$	60,426	$	-	$	-

Non-controlling Interests

U.S. GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. In addition, the amounts attributable to the non-controlling interests in the net loss of these entities are reported separately in the unaudited condensed consolidated statements of loss and comprehensive loss.

Risks and Uncertainties

The operations of the Company are located in the PRC and are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory, and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Although the Company has not experienced losses from these factors and believes that it is in compliance with existing laws and regulations, there is no guarantee that the Company will continue to do so in the future.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements as well as the reported amounts of revenue and expenses during the reporting periods. Significant estimates required to be made by management include, but are not limited to, useful lives of property and equipment, and intangible assets, the recoverability of long-lived assets, assessment of expected credit losses for accounts receivable and other current asset, the valuation allowance of deferred taxes, and inventory reserves. Actual results could differ from those estimates.

Revenue Recognition

The Company generates its revenue primarily through sales of Luobuma products, other agricultural products, healthy meals and rapid diagnostic and other products, as well as providing logistic services and other processing services to external customers in accordance with ASC 606. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

With the adoption of ASC 606, “Revenue from Contracts with Customers,” revenue is recognized when all of the following five steps are met: (i) identify the contract(s) with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations; (v) recognize revenue when (or as) each performance obligation is satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control, and principal versus agent considerations. In accordance with ASC 606, the Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. When the Company is a principal, that the Company obtains control of the specified goods or services before they are transferred to the customers, the revenue should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified goods or services transferred. When the Company is an agent and its obligation is to facilitate third parties in fulfilling their performance obligation for specified goods or services, the revenue should be recognized in the net amount for the amount of commission which the Company earns in exchange for arranging for the specified goods or services to be provided by other parties. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there was no material changes to the Company’s financial statements upon adoption of ASC 606.

More specifically, revenue related to the Company’s products and services is generally recognized as follows:

Sales of products: The Company recognized revenue from the sale of products at the point in time when the goods were delivered and title to the goods passed to the customer, provided that there were no uncertainties regarding customer acceptance; persuasive evidence of an arrangement existed; the sales price was fixed or determinable; and collectability was deemed probable.

Revenue from the provision of services: The Company merely acts as an agent in these types of services transactions. Revenue from domestic air and overland freight forwarding services was recognized at the point in time upon the performance of services as stipulated in the underlying contract or when commodities were being released from the customer’s warehouse; the service price was fixed or determinable; and collectability was deemed probable.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, cash on deposit, and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC. As of March 31, 2025 and June 30, 2024, the Company had no cash equivalents.

Under PRC laws, it is generally required that a commercial bank in the PRC that holds third-party cash deposits protect the depositors’ rights over and interests in their deposited money. PRC banks are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. Company monitors the respective financial institutions where they maintain their cash with and has not experienced any problems.

Accounts Receivable, Net

Accounts receivable are recorded at net realizable value, consisting of the carrying amount less an allowance for credit losses, as necessary. As of March 31, 2025 and June 30, 2024, the allowance for credit losses from the continuing operations was US$950,552 and US$953,956, respectively, and the allowance for credit losses from the discontinued operations was US$582,942 and US$402,917, respectively. Accounts are written off against the allowance after efforts at collection prove unsuccessful.

Advances to Suppliers, Net

Advances to suppliers consist of payments to suppliers for materials that have not been received. As of March 31, 2025 and June 30, 2024, the allowance for uncollectible advances to suppliers from the continuing operations was US$37,008 and US$5,225, respectively. As of March 31, 2025 and June 30, 2024, the allowance for uncollectible advances to suppliers from the discontinued operations was US$5,212,862 and US$106,258, respectively.

Credit Losses

On July 1, 2023, the Company adopted Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements as of the adoption date.

The Company’s account receivables and other receivables included in other current assets on the unaudited condensed consolidated balance sheets are within the scope of ASC Topic 326. The Company makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable and other receivables balances, credit-worthiness of the customers and other debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers and other debtors. The Company also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected.

ASC Topic 326 is also applicable to loans to third parties that are included in the other current assets on the unaudited condensed consolidated balance sheets. Management estimates the allowance for credit losses on loans that do not share similar risk characteristics on an individual basis. The key factors considered when determining the above allowances for credit losses include estimated loan collection schedule, discount rate, and assets and financial performance of the borrowers.

Expected credit losses are recorded as general and administrative expenses on the unaudited condensed consolidated statements of loss and comprehensive loss. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event the Company recovers amount previously reserved, the Company will reduce the specific allowance for credit losses.

Inventories, Net

Inventories, which are stated at the lower of cost or net realizable value, consist of raw materials, work-in-progress, and finished goods related to the Company’s products. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. Cost is determined using the weighted average method. The Company periodically evaluates its inventory and records an inventory reserve for certain inventories that may not be saleable or whose cost exceeds net realizable value. As of March 31, 2025 and June 30, 2024, the inventory reserve from the continuing operations was nil and US$30,443, respectively. As of March 31, 2025 and June 30, 2024, the inventory reserve from the discontinued operations was both nil.

Business Acquisitions

Business acquisitions are accounted for under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a bargain gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values on the date acquired and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of the net assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments are generally recorded to goodwill over the measurement period (not longer than 12 months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense as committed, and requires the Company to recognize and measure certain assets and liabilities, including those arising from contingencies and contingent consideration in a business combination.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of assets acquired. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit would be considered impaired. To measure the amount of the impairment loss, the implied fair value of a reporting unit’s goodwill is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For each of these tests, the fair value of each of the Company’s reporting units is determined using a combination of valuation techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private transaction (to the extent available).

Leases

Lessee accounting

The Company follows FASB ASC No. 842, Leases (“Topic 842”). The Company leases office spaces, warehouse, and farmland which are classified as operating leases in accordance with Topic 842. Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases, usually with initial term of 12 months or less) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use (“ROU”) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and includes initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. All operating lease ROU assets are reviewed for impairment annually. For the nine and three months ended March 31, 2025 and 2024, the Company did not recognize any impairment of its ROU assets.

Lessor accounting

The Company rents out its office to a third party, which is classified as an operating lease in accordance with Topic 842. The revenue from an operating lease is recognized in other income (expenses) in the unaudited condensed consolidated statements of loss and comprehensive loss on a straight-line basis over the term of the lease.

Property and Equipment, Net

Property and equipment are stated at cost, less accumulated depreciation and amortization. Expenditures for additions, major renewals, and betterments are capitalized, and expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less estimated residual value, if any, over an asset’s estimated useful life. Farmland leasehold improvements are amortized over the shorter of lease term or estimated useful lives of the underlying assets. The estimated useful lives of the Company’s property and equipment are as follows:

		Estimated useful lives

Buildings		5-50 years
Machinery and equipment		3-10 years
Motor vehicles		5-15 years
Office equipment		3-10 years
Farmland leasehold improvements		12-18 years
Fixture and furniture		3 years

Construction in progress includes property and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognized impairment loss. Construction in progress is classified to the appropriate category of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Land Use Rights, Net

According to Chinese laws and regulations regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided for by the State, is collectively owned by individuals designated as resident farmers by the State. In accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants individuals and companies the rights to use parcels of land for a specified period of time. Land use rights, which are usually prepaid, are stated at cost less accumulated amortization. Amortization is provided over the life of the land use rights, using the straight-line method. The useful life is 50 years, based on the terms of the land use rights.

Long-lived Assets

Finite-lived assets and intangibles are reviewed for impairment testing when circumstances require. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The long-lived assets of the Company that are subject to evaluation consist primarily of property and equipment, land use rights, ROU assets and investments. For the nine and three months ended March 31, 2025 and 2024, the Company did not recognize any impairment of its long-lived assets.

Derivative Financial Assets

Derivative financial assets are measured at fair value and recognized as either assets or liabilities on the unaudited condensed consolidated balance sheets in either other current or non-current assets or other current liabilities or non-current liabilities, depending upon maturity and commitment. Changes in the fair value of derivatives are either recognized periodically in the unaudited condensed consolidated statements of loss and comprehensive loss, depending on the use of the derivatives and whether they qualify for hedge accounting.

The Company selectively uses financial instruments to manage market risk associated with exposure to fluctuations in prices of raw materials for silk products. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. The Company does not engage in derivative instruments for speculative or trading purposes. The Company’s derivative financial assets are not qualified for hedge accounting. Thus, changes in fair value are recognized in “Investment income from derivative financial assets” under discontinued operations in the unaudited condensed consolidated statements of loss and comprehensive loss. The cash flows of derivative financial assets are classified in the same category as the cash flows from the items subject to the economic hedging relationships. The estimated fair value of the derivatives is determined based on relevant market information.

Derivative financial assets are presented as net if rights of setoff exist, with all of the following conditions met: (a) each of the two parties owes the other determinable amounts; (b) the reporting party has the right to set off the amount owed with the amount owed by the other party; (c) the reporting party intends to set off; and (d) the right of setoff is enforceable at law.

The derivative financial assets from the continuing operations were both nil as of March 31, 2025 and June 30, 2024. The outstanding derivative financial assets from the discontinued operations as of March 31, 2025 and June 30, 2024 were US$3,357 and US$6,380, respectively. Investment income (loss) from derivative financial assets from the discontinued operations was US$1,635 and US$(2,604) for the nine and three months ended March 31, 2025, respectively, and US$4,240 and US$706 for the nine and three months ended March 31, 2024, respectively. The change in fair value of derivative financial assets from the discontinued operations was immaterial for the nine and three months ended March 31, 2025 and 2024, respectively.

Fair Value of Financial Instruments

The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 applies to assets or liabilities for which there are inputs, other than quoted prices in level, that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the asset or liability.

The carrying value of financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the unaudited condensed consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for unaudited condensed consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This ASC also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company did not have any uncertain tax positions as of March 31, 2025 and June 30, 2024. The Company had not provided deferred taxes for undistributed earnings of non-U.S. subsidiaries as of March 31, 2025, as it is the Company’s policy to indefinitely reinvest these earnings in non-U.S. operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable.

The statute of limitations for the Company’s U.S. federal income tax returns and certain state income tax returns remains open for tax year 2022 and thereafter. As of March 31, 2025, the tax years ended December 31, 2020 through December 31, 2024 for the Company’s PRC subsidiaries remained open for statutory examination by PRC tax authorities.

On December 22, 2017, the “Tax Cuts and Jobs Act” (“The Act”) was enacted. Under the provisions of The Act, the U.S. corporate tax rate decreased from 35% to 21%. As the Company has a June 30 fiscal year end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ended June 30, 2018, and 21% for subsequent fiscal years. Additionally, The Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change in rate caused the Company to re-measure its income tax liability and record an estimated income tax expense of US$744,766 for the year ended June 30, 2018. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of The Act. In accordance with SAB 118, additional work is necessary to do a more detailed analysis of The Act as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to current tax expense in fiscal 2019 when the analysis is complete. The Company elects to pay the transition tax over an eight-year period using specified percentages (eight percent per year for the first five years, 15 percent in year six, 20 percent in year seven, and 25 percent in year eight).

Value-Added Tax

Sales revenue represents the invoiced value of goods, net of a value-added tax (“VAT”). All of the Company’s products that were sold in the PRC were subject to a Chinese value-added tax at rates ranging from 3% to 13%, depending on the type of products sold. For overseas sales, VAT is exempted on the exported goods. This VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing finished products or acquiring finished products. The Company records a VAT payable or VAT receivable in the accompanying unaudited condensed consolidated financial statements.

Foreign Currency Translation

The Company uses the United States dollar (“U.S. dollars,” “USD,” or “US$”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC.

In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting periods. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive loss.

The balance sheet amounts, with the exception of equity, as of March 31, 2025 and June 30, 2024 were translated at 1 RMB to 0.1378 USD and at 1 RMB to 0.1376 USD, respectively. The average translation rates applied to the income and cash flow statement amounts for the nine months ended March 31, 2025 and 2024 were 1 RMB to 0.1387 USD and 1 RMB to 0.1389 USD, respectively. The average translation rates applied to the income and cash flow statement amounts for the three months ended March 31, 2025 and 2024 were 1 RMB to 0.1375 USD and 1 RMB to 0.1397 USD, respectively.

Convertible Notes Payable

In accordance with ASC 470 Debt with conversion and other option, an embedded beneficial conversion feature present in a convertible instrument shall be recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. Issuance costs should be allocated proportionally to the debt host and conversion feature. Deferred financing costs will be discounted and amortized subsequently, and the convertible notes are subsequently carried at amortized cost.

Research and Development Expenses

Research and development costs relating to the development of new processes and significant improvements and refinements to existing processes are expensed when incurred in accordance with the FASB ASC 730, “Research and Development.” The research and development costs primarily comprise employee costs, consultant fees, materials and testing costs, and depreciation to property and equipment used in the research and development activities and other miscellaneous expenses. For the nine months ended March 31, 2025 and 2024, total research and development expense from continuing operations were US$54,602 and US$77,811, respectively. For the three months ended March 31, 2025 and 2024, total research and development expense from continuing operations were US$15,487 and US$31,895, respectively. No research and development expense were from discontinued operations for the nine and three months ended March 31, 2025 and 2024.

Comprehensive Loss

Comprehensive loss consists of two components, net loss and other comprehensive income (loss). The foreign currency translation gain resulting from translation of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the unaudited condensed consolidated statements of loss and comprehensive loss.

Loss per Share

The Company computes loss per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net loss divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., outstanding convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There is no anti-dilutive effect for the nine and three months ended March 31, 2025 and 2024.

The following table presents a reconciliation of basic and diluted loss per share for the nine and three months ended March 31, 2025 and 2024:

	2025			2024			2025			2024
	For the nine months ended March 31,						For the three months ended March 31,
	2025			2024			2025			2024
Net loss from continuing operations attributable to Shineco	$	(5,082,075	)	$	(8,063,476	)	$	(3,897,188	)	$	(1,346,876	)
Net income (loss) from discontinued operations attributable to Shineco		(13,683,804	)		5,753,483			(11,221,509	)		(2,001,870	)
Net loss attributable to Shineco		(18,765,879	)		(2,309,993	)		(15,118,697	)		(3,348,746	)

Weighted average shares outstanding - basic and diluted*		6,048,079			204,157			15,694,600			267,734

Net loss from continuing operations per share of common share
Basic and diluted	$	(0.84	)	$	(39.50	)	$	(0.25	)	$	(5.03	)

Net earnings (loss) from discontinued operations per share of common share
Basic and diluted	$	(2.26	)	$	28.18		$	(0.71	)	$	(7.48	)

Net loss per share of common share
Basic and diluted	$	(3.10	)	$	(11.32	)	$	(0.96	)	$	(12.51	)

*	Retrospectively restated for effect of the Reverse Stock Split on November 12, 2024.

New Accounting Pronouncements

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU requires public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM), and an amount and description of other segment items, in both annual and interim periods. The Company’s fiscal year beginning July 1, 2024, is subject to the provisions of ASU 2023-07. As a result, the Company is required to adopt the enhanced segment disclosure requirements beginning with the interim period ending March 31, 2025. While the Company has made significant progress in updating its internal reporting and system processes to comply with the new standard, it was not practicable to complete implementation in time for inclusion in this quarterly report. The Company expects to complete the implementation during the fourth fiscal quarter and will include all required segment disclosures under ASU 2023-07 in its annual report on Form 10-K for the fiscal year ending June 30, 2025.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This ASU requires additional quantitative and qualitative income tax disclosures to enable financial statements users better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company plans to adopt this guidance effective July 1, 2025 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.

In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company plans to adopt this guidance effective July 1, 2025 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.

In March 2024, the FASB issued ASU No. 2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements.” ASU 2024-02 removes references to various FASB Concepts Statements within the Codification. The guidance in ASU No. 2024-02 is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, and can be applied either prospectively to all new transactions recognized on or after the date that the entity first applies the amendments or retrospectively to the beginning of the earliest comparative period presented in which the amendments were first applied. Early adoption is permitted. The Company plans to adopt this guidance effective July 1, 2025 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.

The Company believes that other recent accounting pronouncement updates will not have a material effect on the Company’s unaudited condensed consolidated financial statements.

NOTE 4 – ACCOUNTS RECEIVABLE, NET

The accounts receivable, net consisted of the following:

SCHEDULE OF ACCOUNTS RECEIVABLE

	March 31, 2025			June 30, 2024

Accounts receivable	$	3,211,401		$	2,571,987
Less: allowance for credit losses		(1,533,494	)		(1,356,873	)
Accounts receivable, net		1,677,907			1,215,114
Less: accounts receivable, net held for discontinued operations		(1,677,590	)		(1,214,757	)
Accounts receivable, net held for continuing operations	$	317		$	357

Movement of allowance for credit losses is as follows:

	March 31, 2025		June 30, 2024

Beginning balance	$	1,356,873	$	8,153,850
Acquisition of subsidiaries		-		173,101
Charge to allowance		176,020		118,499
Less: disposal of VIEs		-		(7,195,304	)
Foreign currency translation adjustments		601		106,727
Ending balance	$	1,533,494	$	1,356,873

NOTE 5 – INVENTORIES, NET

The inventories, net consisted of the following:

SCHEDULE OF INVENTORIES, NET

	March 31, 2025			June 30, 2024

Raw materials	$	213,444		$	290,152
Work-in-process		156,562			338,902
Finished goods		860,300			989,914
Less: inventory reserve		-			(30,443	)
Total inventories, net		1,230,306			1,588,525
Less: inventories, net, held for discontinued operations		(1,025,836	)		(1,308,556	)
Inventories, net, held for continuing operations	$	204,470		$	279,969

NOTE 6 – ADVANCES TO SUPPLIERS, NET

The advances to suppliers, net consisted of the following:

SCHEDULE OF ADVANCES TO SUPPLIERS

	March 31, 2025			June 30, 2024

Advances to suppliers	$	24,330,480		$	10,132,190
Less: allowance for doubtful accounts		(5,249,870	)		(111,483	)
Advance to suppliers, net		19,080,610			10,020,707
Less: advance to supplier, net, held for discontinued operations		(19,079,599	)		(9,986,844	)
Advance to supplier, net, held for continuing operations	$	1,011		$	33,863

Advances to suppliers consist of mainly payments to suppliers for raw materials or products that have not been received.

Movement of allowance for doubtful accounts is as follows:

	March 31, 2025			June 30, 2024

Beginning balance	$	111,483		$	10,167,448
Acquisition of subsidiaries		-			6,385
Charge to allowance		5,173,172			102,514
Less: disposal of VIEs		-			(10,325,224	)
Foreign currency translation adjustments		(34,785	)		160,360
Ending balance	$	5,249,870		$	111,483

NOTE 7 – OTHER CURRENT ASSETS, NET

Other current assets, net consisted of the following:

SCHEDULE OF OTHER CURRENT ASSETS

	March 31, 2025			June 30, 2024

Loans to third parties ⁽¹⁾	$	10,227,757		$	9,445,164
Other receivables ⁽²⁾		3,755,950			2,464,188
Prepayment for business acquisition ⁽³⁾		2,630,000			-
Short-term deposits		44,152			39,966
Prepaid expenses		51,408			1,658
Subtotal		16,709,267			11,950,976
Less: allowance for credit losses		(4,328,478	)		(4,656,522	)
Total other current assets, net		12,380,789			7,294,454
Less: other current assets, net, held for discontinued operations		(248,218	)		(378,403	)
Other current assets, net, held for continuing operations	$	12,132,571		$	6,916,051

1)	Loans to third-parties are mainly used for short-term funding to support the Company’s external business partners or employees of the Company. These loans bear interest or no interest and have terms of no more than one year. As of March 31, 2025, loans that amounted to US$688,642 were carried forward from fiscal year 2023. On September 20, 2023, the Company lent a loan amounting to US$103,336 to a third party for one year, with a maturity date of September 19, 2024. The loan was extended for one year upon maturity. On December 31, 2023, the Company lent a loan amounting to US$1,428,517 to two third parties for one year, with a maturity date of December 30, 2024. On May 28, 2024, the Company lent a loan amounting to US$2,755,626 to a third party for one year, with a maturity date of May 27, 2025. On June 5, 2024, the Company lent a loan amounting to US$4,092,104 to a third party for one year, with a maturity date of June 4, 2025. For loans entered on May 28, 2024 and June 5, 2024, the Company entered into Debt Transfer Agreements with the borrowers (the “Original Borrowers”) and another third party (the “New Borrower”) on August 20, 2024, pursuant to which the Original Borrowers transferred all their debts to the New Borrower, and the New Borrower agreed to fulfil its repayments obligation to the Company in accordance with the term of the original loan agreements. On July 24, 2024 and September 18, 2024, the Company lent loans amounting to US$110,225 and US$377,097 to two third parties for one year, with a maturity date of July 23, 2025 and September 17, 2025, respectively. In addition, the Company also lent a loan amounting to US$41,334 to a third party during the nine months ended March 31, 2025, and the amount is due on demand. The Company periodically reviewed the loans to third parties as to whether their carrying values remain realizable, and the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of June 30, 2024, the total outstanding balance amounted to US$9,445,164, including principal of US$9,387,269 and accrued interests of US$57,895. As of March 31, 2025, the total outstanding balance amounted to US$10,227,757, including principal of US$9,596,881 and accrued interests of US$630,876. As of March 31, 2025 and June 30, 2024, the allowance for credit losses was US$2,220,494 and US$2,548,557, respectively. The Company’s management will continue putting effort into the collection of overdue loans to third parties.

2)	Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses, as well as advances for services to other third party.

3)	The amount pertains to prepaid purchase consideration made for the FuWang Acquisition. The Company made a partial payment of the consideration during the nine months ended March 31, 2025. The acquisition was completed on May 12, 2025.

Movement of allowance for credit losses is as follows:

	March 31, 2025			June 30, 2024

Beginning balance	$	4,656,522		$	3,287,793
Acquisition of subsidiaries		-			36,393
Charge to (reversal of) expense		(330,080	)		2,248,574
Less: disposal of VIEs		-			(610,751	)
Foreign currency translation adjustments		2,036			(305,487	)
Ending balance	$	4,328,478		$	4,656,522

NOTE 8 - PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:

SCHEDULE OF PROPERTY AND EQUIPMENT

	March 31, 2025			June 30, 2024

Buildings	$	5,122,394		$	6,167,928
Machinery and equipment		3,071,342			3,051,688
Motor vehicles		236,154			275,366
Office equipment		98,014			97,882
Fixture and furniture		102,071			101,936
Construction in progress		495,713			230,661
Subtotal		9,125,688			9,925,461
Less: accumulated depreciation and amortization		(3,784,952	)		(3,556,394	)
Less: accumulated impairment for property and equipment		(89,426	)		(89,308	)
Total property and equipment, net		5,251,310			6,279,759
Less: property and equipment, net, held for discontinued operations		(5,178,302	)		(5,159,441	)
Property and equipment, net held for continuing operations	$	73,008		$	1,120,318

Depreciation and amortization expense charged to the continuing operations was US$44,598 and US$68,041 for the nine months ended March 31, 2025 and 2024, respectively. Depreciation and amortization expense charged to the continuing operations was US$11,030 and US$25,598 for the three months ended March 31, 2025 and 2024, respectively.

Depreciation and amortization expense charged to the discontinued operations was US$267,334 and US$290,038 for the nine months ended March 31, 2025 and 2024, respectively. Depreciation and amortization expense charged to the discontinued operations was US$69,811 and US$86,889 for the three months ended March 31, 2025 and 2024, respectively.

The Company also provides its customers with specialized testing devices as its customers could only use these devices to generate results from these rapid diagnostic products. The ownership of these specialized testing devices is not transferred to its customers, but remains as the Company’s properties. The specialized testing devices will be returned to the Company when they are no longer required by the customer. As of March 31, 2025 and June 30, 2024, properties with net book values of US$22,993 and US$24,223 were held by the Company’s customers.

On May 29, 2023, the Company’s Board approved the pledge of real estate property as collateral to guarantee a personal loan of Zhang Yuying, the former chairman of the Board and legal representative of Tenet-Jove. This collateral was provided in exchange for the transfer of the real estate title from Zhang Yuying to Chongshi, a subsidiary of the Company. According to the memorandum between the Company and Zhang Yuying, it was anticipated that the loan would be repaid and the pledge would be released before May 31, 2024. The Company retains the right to claim full compensation if the property is not released by the due date. On May 24, 2022, Zhang Yuying entered into a loan agreement with Guo Weiqing for a principal amount of RMB 15,000,000, with a due date of May 23, 2023. On May 23, 2023, Zhang Yuying entered into a supplementary agreement with Guo Weiqing, wherein the parties agreed to extend the due date of the principal amount from May 23, 2023 to May 23, 2024, and to provide a mortgage guarantee for the repayment of the principal amount. On May 23, 2024, Zhang Yuying entered into another supplementary agreement with Guo Weiqing, wherein the parties agreed to extend the due date of the principal amount from May 23, 2024 to May 23, 2025, and the real estate property continued to be pledged until May 23, 2025. As of June 30, 2024, the net book value of the property was US$1,012,381. If Zhang Yuying fails to repay the loan and the property is executed by the Court, the Company has the right to pursue compensation from Zhang Yuying based on the market value of the property. However, Zhang Yuying was unable to repay the loan to Guo Weiqing due to shortage of fund. On November 20, 2024, the Company entered in a supplementary agreement with Zhang Yuying and Guo Weiqing, pursuant to the agreement, the Company agreed to transfer 100% equity interest of Chongshi to Guo Weiqing or other people designated by him as payment for the loan. The consideration for this transfer was RMB 8.0 million (approximately US$1.1 million), which will be paid by Zhang Yuying to the Company by June 30, 2025.

In addition, the Company also pledged certain property and equipment for the Company’s bank loans and its related party’s personal loan (See Note 12 and Note 13).

NOTE 9 - LAND USE RIGHTS, NET

Land use rights are recognized at cost less accumulated amortization. According to the Chinese laws and regulations regarding land use rights, land in urban districts is owned by the state, while land in the rural areas and suburban areas, except otherwise provided for by the state, is collectively owned by individuals designated as resident farmers by the state. However, in accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants the user a “land use right” to use the land. The Company has the land use right to use the land for 50 years and amortizes the rights on a straight-line basis over the period of 50 years.

SCHEDULE OF LAND USE RIGHTS

	March 31, 2025			June 30, 2024

Land use rights	$	710,143		$	709,840
Less: accumulated amortization		(108,838	)		(94,233	)
Total land use rights, net		601,305			615,607
Less: land use rights, net, held for discontinued operations		(601,305	)		(615,607	)
Land use rights, net, held for continuing operations	$	-		$	-

No amortization expense charged to the continuing operations for the nine and three months ended March 31, 2025 and 2024.

Amortization expense charged to the discontinued operations was US$14,523 and US$14,982 for the nine months ended March 31, 2025 and 2024, respectively. Amortization expense charged to the discontinued operations was US$4,831 and US$5,627 for the three months ended March 31, 2025 and 2024, respectively.

NOTE 10 - LEASES

Lessee

The Company leases offices space and warehouse under non-cancellable operating leases, with terms ranging from one to seven and a half years. The lease terms vary from 2 years to 7.5 years. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of ROU assets and lease liabilities. Lease expenses for lease payment are recognized on a straight-line basis over the lease term. Leases with initial terms of 12 months or less are not recorded on the balance sheet.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The table below presents the operating lease related assets and liabilities held for continuing operations recorded on the balance sheets.

	March 31, 2025		June 30, 2024

ROU lease assets	$	68,729	$	145,323

Operating lease liabilities – current		306,236		272,787
Operating lease liabilities – non-current		6,137		-
Total operating lease liabilities	$	312,373	$	272,787

The weighted average remaining lease terms and discount rates for all of operating leases held for continuing operations were as follows as of March 31, 2025 and June 30, 2024:

	March 31, 2025			June 30, 2024

Remaining lease term and discount rate:
Weighted average remaining lease term (years)		0.90			0.96
Weighted average discount rate		4.27	%		4.36	%

The components of lease expenses for continuing operations were as follows:


	For the nine months ended March 31,				For the three months ended March 31,
	2025		2024		2025		2024
Lease cost:
Amortization of right-of-use assets	$	125,494	$	52,508	$	43,994	$	19,076
Interest of operating lease liabilities		3,514		4,213		715		1,203
Total lease cost	$	129,008	$	56,721	$	44,709	$	20,279

The table below presents the operating lease related assets and liabilities held for discontinued operations recorded on the balance sheets.

	March 31, 2025		June 30, 2024

ROU lease assets	$	-	$	712
		-
Operating lease liabilities – current		-		-
Operating lease liabilities – non-current		-		-
Total operating lease liabilities	$	-	$	-

The weighted average remaining lease terms and discount rates for all of operating leases held for discontinued operations were as follows as of March 31, 2025 and June 30, 2024:

	March 31, 2025		June 30, 2024

Remaining lease term and discount rate:
Weighted average remaining lease term (years)		-		0.58
Weighted average discount rate		-		4.75	%

The components of lease expenses for discontinued operations were as follows:


	For the nine months ended March 31,				For the three months ended March 31,
	2025		2024		2025		2024
Lease cost:
Amortization of right-of-use assets	$	717	$	859	$	-	$	342
Interest of operating lease liabilities		-		50		-		7
Total lease cost	$	717	$	909	$	-	$	349

Rent expenses totaled US$125,681 and US$131,083 from the continuing operations for the nine months ended March 31, 2025 and 2024, respectively. Rent expenses totaled US$40,547 and US$45,539 from the continuing operations for the three months ended March 31, 2025 and 2024, respectively.

Rent expenses totaled US$19,115 and US$52,730 from the discontinued operations for the nine months ended March 31, 2025 and 2024, respectively. Rent expenses totaled US$6,075 and US$357 from the discontinued operations for the three months ended March 31, 2025 and 2024, respectively.

The following is a schedule, by years, of maturities of lease liabilities held for continuing operations as of March 31, 2025:


Remainder of 2025	$	288,652
2026		24,801
Total lease payments		313,453
Less: imputed interest		(1,080	)
Present value of lease liabilities	$	312,373

Lessor

On September 21, 2023, the Company’s continuing operations entered into a two-year rental agreement with a third party to lease its property for its office space. Rental income of US$30,867 and US$30,766 was recorded in other income, net from the continuing operations on the unaudited condensed consolidated statements of loss and comprehensive loss for the nine months ended March 31, 2025 and 2024, respectively. Rental income of nil and US$15,426 was recorded in other income, net from the continuing operations on the unaudited condensed consolidated statements of income loss and comprehensive loss for the three months ended March 31, 2025 and 2024, respectively. No such lease contract was entered into by the Company’s discontinued operations during the nine and three months ended March 31, 2025 and 2024.

NOTE 11 - ACQUISITIONS

Acquisition of Guangyuan

The management determined that July 5, 2021 was the acquisition date of Guangyuan. The acquisition provides a unique opportunity for the Company to enter the market of planting fast-growing bamboo willows and scenic greening trees.

The transaction was accounted for in accordance with the provisions of ASC 805-10, Business Combinations. The Company retained independent appraisers to advise management in the determination of the fair value of the various assets acquired and liabilities assumed. The values assigned in these financial statements represent management’s best estimate of fair values as of the Acquisition Date.

As required by ASC 805-20, Business Combinations—Identifiable Assets and Liabilities, and Any Non-controlling Interest, management conducted a review to reassess whether they identified all the assets acquired and all the liabilities assumed, and followed ASC 805-20’s measurement procedures for recognition of the fair value of net assets acquired.

The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed:


Due from related party	$	108,296
Inventory		18,115,423
Other current assets		224,522
Right of use assets		1,127,130
Long-term investments and other non-current assets		166,107
Other payables and other current liabilities		(2,503,607	)
Operating lease liabilities		(1,013,492	)
Total purchase price for acquisition, net of US$112,070 of cash	$	16,224,379

Under ASC 805-10, acquisition-related costs (i.e., advisory, legal, valuation and other professional fees) are not included as a component of consideration transferred, but are expensed in the periods in which the costs are incurred. Acquisition-related costs were nil for the nine and three months ended March 31, 2025 and 2024.

The Company has included the operating results of Guangyuan in the unaudited condensed consolidated financial statements since the Acquisition Date. Nil in net sales and US$12,060 in net loss of Guangyuan were included in discontinued operations in the unaudited condensed consolidated financial statements for the nine months ended March 31, 2024. Nil in net sales and net loss of Guangyuan were included in discontinued operations in the unaudited condensed consolidated financial statements for the three months ended March 31, 2024.

Acquisition of Biowin

On October 21, 2022, the Company, through its wholly-owned subsidiary, Shineco Life, entered into a stock purchase agreement with the Seller and Biowin, pursuant to which Shineco Life would acquire 51% of the issued equity interests of Biowin from Seller. On December 30, 2022, Shineco Life closed the acquisition of 51% of the issued equity interests of Biowin. As the consideration for the acquisition, the Company paid to Seller US$9,000,000 in cash and the Company issued 13,583 shares of the Company’s common stock, par value US$0.001 per share, to the equity holders of Biowin or any persons designated by Biowin, the total consideration of the acquisition was US$12,097,000. According to the Supplementary Agreement, dated as of December 30, 2022, by and among the Shineco Life, the Seller and Biowin, the Seller transferred its controlling rights of production and operation of Biowin to Shineco Life on January 1, 2023. The management determined that January 1, 2023 was the acquisition date of Biowin. The acquisition provides a unique opportunity for the Company to step into the Point-of-Care Testing industry.

The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill which amounted to US$6,574,743. The results of operations of Biowin have been included in the unaudited condensed consolidated statements of operations from the date of acquisition.

The management performed an evaluation on the impairment of goodwill, and due to the lower-than-expected revenue and profit and unfavorable business environment, the management recorded an impairment loss on goodwill of Biowin, which amounted to US$4,555,996 during the year ended June 30, 2024.

The identifiable goodwill acquired and the carrying value consisted of the following:

SCHEDULE OF GOODWILL ACQUIRED

	March 31, 2025			June 30, 2024

Goodwill	$	6,574,743		$	6,574,743
Less: impairment for goodwill		(4,555,996	)		(4,555,996	)
Goodwill, net		2,018,747			2,018,747
Less: goodwill, net held for discontinued operations		-			-
Goodwill, net held for continuing operations	$	2,018,747		$	2,018,747

The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed:


Accounts receivable, net	$	807,771
Inventories, net		784,336
Other current assets, net		49,979
Property and equipment, net		138,252
Intangible assets		12,683,656
Operating lease right-of-use assets		173,831
Goodwill		6,574,743
Deferred tax assets, net		346,523
Short-term bank loans		(1,594,596	)
Accounts payable		(349,989	)
Advances from customers		(407,437	)
Other current liabilities		(446,729	)
Operating lease liabilities - non-current		(45,730	)
Deferred tax liabilities		(1,937,804	)
Non-controlling interest		(5,301,785	)
Total purchase price for acquisition, net of US$621,979 of cash	$	11,475,021

The fair value of identified intangible assets, which are trademarks and patents, and its estimated useful lives as of March 31, 2025 is as follows:

SCHEDULE OF INTANGIBLE ASSETS

				Average
				Useful Life
				(in Years)

Intangible assets	$	12,683,656		10
Less: accumulated amortization		(2,853,823	)
Total intangible assets, net		9,829,833
Less: intangible assets, net held for discontinued operation		-
Intangible assets, net held for continuing operations	$	9,829,833

The amortization expense of intangible assets was US$951,275 and US$951,273 from the continuing operations for the nine months ended March 31, 2025 and 2024, respectively. The amortization expense of intangible assets was US$317,092 and US$317,091 from the continuing operations for the three months ended March 31, 2025 and 2024, respectively.

The Company has included the operating results of Biowin in continuing operations in its unaudited condensed consolidated financial statements since the Acquisition Date. US$258,091 in net sales and US$1,002,687 in net loss of Biowin were included in the unaudited condensed consolidated financial statements for the nine months ended March 31, 2025. US$40,971 in net sales and US$354,056 in net loss of Biowin were included in the unaudited condensed consolidated financial statements for the three months ended March 31, 2025. US$441,927 in net sales and US$916,377 in net loss of Biowin were included in the unaudited condensed consolidated financial statements for the nine months ended March 31, 2024. US$142,805 in net sales and US$294,752 in net loss of Biowin were included in the unaudited condensed consolidated financial statements for the three months ended March 31, 2024.

Acquisition of Wintus

On May 29, 2023, Shineco Life entered into a stock purchase agreement with Dream Partner, Wintus and the Wintus Sellers, pursuant to which Shineco Life shall acquire 71.42% equity interest in Wintus. As the consideration for the acquisition, the Company (a) paid the Wintus Sellers an aggregate cash consideration of US$2,000,000; (b) issued certain shareholders, as listed in the agreement, an aggregate of 41,667 shares of the Company’s restricted Common Stock; and (c) transferred and sold to the Sellers 100% of the Company’s equity interest in Tenet-Jove. The management determined that July 31, 2023 was the acquisition date of Wintus.

The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill, which amounted to US$21,440,360. The results of operations of Wintus have been included in the statements of operations from the date of acquisition.

The management performed an evaluation on the impairment of goodwill, and due to the lower-than-expected revenue and profit and unfavorable business environment, our management recorded an impairment loss on the goodwill of Wintus, which amounted to US$10,268,823 during the year ended June 30, 2024 and US$7,950,478 during the nine and three months ended March 31, 2025.

The identifiable goodwill acquired and the carrying value consisted of the following:

SCHEDULE OF GOODWILL ACQUIRED

	March 31, 2025			June 30, 2024

Goodwill	$	21,440,360		$	21,440,360
Less: impairment for goodwill		(18,219,301	)		(10,268,823	)
Goodwill, net		3,221,059			11,171,537
Less: goodwill, net held for discontinued operations		(3,221,059	)		(11,171,537	)
Goodwill, net held for continuing operations	$	-		$	-

The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed:


Accounts receivable, net	$	12,507,353
Advances to suppliers, net		3,513,448
Inventories, net		1,782,180
Derivative financial assets		6,212
Other current assets, net		1,426,163
Property and equipment, net		5,407,301
Intangible assets		36,117,041
Operating lease right-of-use assets		1,999
Goodwill		21,440,360
Short-term bank loans		(12,021,992	)
Accounts payable		(6,686,700	)
Advances from customers		(78,677	)
Tax payable		(600,742	)
Deferred income		(77,007	)
Other current liabilities		(2,277,877	)
Long-term bank loans		(2,071,093	)
Operating lease liabilities - non-current		(1,847	)
Deferred tax liabilities		(9,186,376	)
Non-controlling interest		(8,197,473	)
Total purchase price for acquisition, net of US$1,003,678 of cash	$	41,002,273
Total purchase price for acquisition	$	41,002,273

The fair value of identified intangible assets, which are trademarks and patents, and its estimated useful lives as of March 31, 2025 is as follows:

SCHEDULE OF INTANGIBLE ASSETS

				Average
				Useful Life
				(in Years)

Intangible assets	$	35,487,273			10
Less: accumulated amortization		(5,914,546	)
Total intangible assets, net		29,572,727
Less: intangible assets, net held for discontinued operation		(29,572,727	)
Intangible assets, net held for continuing operations	$	-

The amortization expense of intangible assets was US$2,661,545 and US$2,365,819 from discontinued operations for the nine months ended March 31, 2025 and 2024, respectively. The amortization expense of intangible assets was US$887,182 and US$887,183 from discontinued operations for the three months ended March 31, 2025 and 2024, respectively.

Under ASC 805-10, acquisition-related costs (i.e., advisory, legal, valuation and other professional fees) are not included as a component of consideration transferred, but are expensed in the periods in which the costs are incurred. Acquisition-related costs were nil and US$779,606 for the nine months ended March 31, 2025 and 2024, respectively. Acquisition-related costs were nil for the three months ended March 31, 2025 and 2024.

The Company has included the operating results of Wintus in discontinued operations in its unaudited condensed consolidated financial statements since the Acquisition Date. US$7,633,705 in net sales and US$15,874,674 in net loss of Wintus were included in discontinued operations in the unaudited condensed consolidated financial statements for the nine months ended March 31, 2025. US$2,628,318 in net sales and US$12,529,002 in net loss of Wintus were included in discontinued operations in the unaudited condensed consolidated financial statements for the three months ended March 31, 2025. US$4,844,587 in net sales and US$3,771,648 in net loss of Wintus were included in discontinued operations in the unaudited condensed consolidated financial statements for the nine months ended March 31, 2024. US$1,202,054 in net sales and US$2,633,246 in net loss of Wintus were included in discontinued operations in the unaudited condensed consolidated financial statements for the three months ended March 31, 2024.

NOTE 12 - RELATED PARTY TRANSACTIONS

Due from Related Parties, Net

The Company has made temporary advances to certain stockholders and senior management of the Company and to other entities that are either owned by family members of those stockholders or to other entities that the Company has investments in. The receivable are non-interest bearing and due on demand.

As of March 31, 2025 and June 30, 2024, the outstanding amounts due from related parties consisted of the following:

SCHEDULE OF DUE FROM RELATED PARTIES

	March 31, 2025			June 30, 2024

Chongqing Yufan Trading Co., Ltd (“Chongqing Yufan”)	$	192,891		$	318,041
Chongqing Dream Trading Co., Ltd		41,334			41,280
Wintus China Limited		412,379			412,379
Fujian Xinglinchun Health Industry Co., Ltd		24,456			24,424
Subtotal		671,060			796,124
Less: allowance for credit losses		(412,379	)		(412,379	)
Total due from related parties, net		258,681			383,745
Less: due from related parties, held for discontinued operations		(234,225	)		(359,321	)
Due from related parties, held for continuing operations	$	24,456		$	24,424

Due to Related Parties

As of March 31, 2025 and June 30, 2024, the Company had related party payables of US$254,125 and US$1,160,920 from continuing operation, respectively. As of March 31, 2025 and June 30, 2024, the Company had related party payables of US$2,449,279 and US$1,714,464 from discontinued operation, respectively. These related party obligations are primarily owed to the principal stockholders or certain relatives of the stockholders, and senior management of the Company, who provide funds for the Company’s operations. The payables are unsecured, non-interest bearing, and due on demand.

As of March 31, 2025 and June 30, 2024, the outstanding amounts due to related parties consisted of the following:

SCHEDULE OF DUE TO RELATED PARTIES

	March 31, 2025			June 30, 2024

Wang Sai	$	-		$	58,846
Huang Shanchun		158,126			444,595
Liu Fengming		50,914			19,908
Yan Lixia		1,619			-
Zhan Jiarui		16,665			111,528
Liu Xiqiao		14,791			27,319
Lyu Jiajia ^(a)		-			478,547
Zhao Pengfei		6,889			6,880
Wang Xiaohui^(b)		491,361			342,562
Chi Keung Yan^(b)		1,201,884			614,427
Fuzhou Meidashan Biotechnology Co., Ltd.		5,121			13,297
Chongqing Fuling District Renyi Zhilu Silk Industry Co., Ltd		472,585			412,479
Chongqing Huajian Housing Development Co., Ltd (“Chongqing Huajian”)		283,449			344,996
Total due to related parties		2,703,404			2,875,384
Less: due to related parties, held for discontinued operations		(2,449,279	)		(1,714,464	)
Due to related parties, held for continuing operations	$	254,125		$	1,160,920

a.	On September 27, 2023, the Company entered into a loan agreement with Lyu Jiajia to borrow US$800,000 as working capital for one year, with a maturity date of September 29, 2024. The loan has a fixed interest rate of 15.0% per annum. The Company repaid totaling $0.4 million during the year ended June 30, 2024. As of June 30, 2024, the total outstanding balance, including principal and the interest, amounted to US$478,547. During the nine months ended March 31, 2025, all of the amounts, including principal and interest due to Lyu Jiajia, were offset with the consideration for shares purchased from the Company.

b.	The amounts pertain to advances from its related parties for the Company’s working capital during the Company’s normal course of business. These advances are unsecured, non-interest bearing and due on demand.

Interest expenses on loans due to related parties were US$14,450 and nil from continuing operations for the nine months ended March 31, 2025 and 2024, respectively. Interest expenses on loans due to related parties were both nil from continuing operations for the three months ended March 31, 2025 and 2024.

Interest expenses on loans due to related parties were nil and US$1,526 from discontinued operations for the nine months ended March 31, 2025 and 2024, respectively. Interest expenses on loans due to related parties were both nil from discontinued operations for the three months ended March 31, 2025 and 2024.

Sales to a Related Party

The Company’s discontinued operation, Wintus, made sales of US$678,142 and US$797,506 to its related party, Chongqing Fuling District Renyi Zhilu Silk Industry Co., Ltd, for the nine months ended March 31, 2025 and 2024, respectively. The Company made no sales its related party, Chongqing Fuling District Renyi Zhilu Silk Industry Co., Ltd, for the three months ended March 31, 2025 and 2024.

Loan guarantee provided by related parties

The Company’s related parties provide a guarantee for the Company’s bank loans (see Note 13).

Loan guarantee provided to a related party

As of March 31, 2025 and June 30, 2024, Chongqing Wintus (New Star) Enterprises Group (“Chongqing Wintus”) provided a guarantee that amounted to US$688,906 and US$687,999 for a bank loan borrowed by Chongqing Yufan, a related party of the Company until December 28, 2025.

Lease from a related party

The Company entered into a two-year lease agreement for the lease of office space from a related party company, of which the CEO is the Company’s shareholder.

As of March 31, 2025, the operating lease right-of-use assets and corresponding operating lease liabilities of leases from the related party held for continuing operation were US$20,526 and US$165,196, respectively.

As of June 30, 2024, the operating lease right-of-use assets and corresponding operating lease liabilities of leases from the related party held for continuing operation were US$80,746 and US$163,306, respectively.

During the nine months ended March 31, 2025 and 2024, the Company’s continuing operations incurred operating lease expenses in leases from the related party of US$62,423 and US$62,493, respectively. During the three months ended March 31, 2025 and 2024, the Company’s continuing operations incurred operating lease expenses in leases from the related party of US$20,624 and US$20,946, respectively.

NOTE 13 – LOANS

Short-term loans

Short-term loans from third parties

During the year ended June 30, 2024, the Company entered into loan agreements with two third parties. These short-term loans from third parties are mainly used for short-term funding to support the Company’s working capital needs. One of the loans amounting to US$516,811 was borrowed from April 9, 2024 to July 8, 2024 and bear to interest. The loan was fully repaid upon maturity by the Company during the nine months ended March 31, 2025. The other loan amounting to US$509,119 was borrowed from June 21, 2024 to August 4, 2024 with an interest rate of 15% per annum, and the loan is guaranteed by a third party. The Company made partial payment for the other loan, and the balance of US$459,977 was extended with a new maturity date of December 31, 2025. In addition, the Company also borrowed a loan amounting to US$62,002 from a third party during the nine months ended March 31, 2025, and the loan bears no interest and is due on demand.

The Company recorded interest expenses from continuing operations of US$65,265 and US$60,164 for the nine months ended March 31, 2025 and 2024, respectively. The annual weighted average interest rates from continuing operations were 14.5% and 15.0% for the nine months ended March 31, 2025 and 2024, respectively. The Company recorded interest expenses from continuing operations of US$16,916 and US$29,917 for the three months ended March 31, 2025 and 2024, respectively. The annual weighted average interest rates from continuing operations were 14.5% and 15.0% for the three months ended March 31, 2025 and 2024, respectively.

Short-term bank loans

Short-term bank loans consisted of the following:

SCHEDULE OF SHORT TERM BANK LOANS

Lender	March 31, 2025			Maturity Date	Int. Rate/Year
Jiangnan Rural Commercial Bank^(a)	$	413,344		2025/5/21		4.65	%
Bank of Jiangsu^(b)		405,904		2025/1/20		4.00	%
Bank of China^(c)		406,455		2024/6/26		4.90	%
United Overseas Bank^(d)		9,227,642		April 2025 - September 2025		3.85%-4.10	%
Industrial and Commercial Bank of China		413,344		2025/6/20		3.75	%
Bank of China^(e)		482,234	^e	2026/2/8		2.80	%
Chongqing Rural Commercial Bank^(f)		1,308,922		2026/2/9		4.30	%
Industrial and Commercial Bank of China^(g)		688,906		2025/9/20		3.10	%
Total short-term bank loans		13,346,751
Less: short-term bank loans, held for discontinued operations		(12,121,049	)
Short-term bank loans, held for continuing operations	$	1,225,702

The loans outstanding were guaranteed by the following properties, entities or individuals:

a.	Guaranteed by Mr. Liu Fengming, the former CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company and pledged by the patent rights of the Company.

b.	The Company did not repay the loan upon maturity, Bank of Jiangsu commenced a lawsuit against the Company’s subsidiary, Biowin. (see Note 18).

c.	Guaranteed by Mr. Liu Fengming, the former CEO of the Company, and his wife, Ms. Liang Jie. Upon the maturity of the loan, the bank offered the Company an extension, however, the Company failed to sign the extension agreement due to an administrative issue. As of the date of this report, the Company has not received any notice from the bank for repayment, and it expects to continue using this bank facility.

d.	Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui, Chongqing Huajian, Chongqing Yufan and Chongqing Yiyao Electromechanical Co., Ltd. In addition, Chongqing Huajian and Chongqing Yufan also pledged their properties as collateral to guarantee the Company’s loans from United Overseas Bank.

e.	Guaranteed by Ms. Wang Xiaohui and her family member, as well as the other subsidiary of the Company, Chongqing Wintus. In addition, Chongqing Huajian and another third party pledged their properties to guarantee the Company’s loan from Bank of China.

f.	Guaranteed by Ms. Wang Xiaohui, one of the shareholders of the Company, her family members, and Chongqing Huajian. The loan is also guaranteed by other subsidiaries of the Company, Wulong Wintus Silk Co., Ltd (“Wulong Wintus”), Chongqing Hongsheng Silk Co., Ltd and Chongqing Liangping Wintus Textile Ltd (“Liangping Wintus”). In addition, Chongqing Huajian pledged its properties to guarantee the Company’s loan from Chongqing Rural Commercial Bank.

g.	The loan is guaranteed by Chongqing Wintus, a subsidiary of the Company. In addition, the Company’s properties with net book values of US$596,503 were pledged as collateral to secure this loan.

Lender	June 30, 2024			Maturity Date	Int. Rate/Year
Jiangnan Rural Commercial Bank^(a)	$	412,800		2025/5/21		4.65	%
Bank of Jiangsu^(b)		405,369		2025/1/20		4.00	%
Bank of China^(c)		405,920		2024/6/26		4.90	%
United Overseas Bank^(d)		9,536,508		July 2024 - December 2024		4.20	%
Industrial and Commercial Bank of China		412,800		2025/06/20		3.75	%
Industrial and Commercial Bank of China^(e)		619,199	^e	2024/9/22		3.45	%
Bank of China^(f)		412,800		2025/2/7		3.45	%
Chongqing Rural Commercial Bank^(g)		1,307,199		2025/3/18		4.30	%
Total short-term bank loans		13,512,595
Less: short-term bank loans, held for discontinued operations		(12,288,506	)
Short-term bank loans, held for continuing operations	$	1,224,089

The loans outstanding were guaranteed by the following properties, entities or individuals:

a.	Guaranteed by Mr. Liu Fengming, the former CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company and pledged by the patent rights of the Company.

b.	The Company did not repay the loan upon maturity, Bank of Jiangsu commenced a lawsuit against the Company’s subsidiary, Biowin. (see Note 18).

c.	Guaranteed by Mr. Liu Fengming, the former CEO of the Company, and his wife, Ms. Liang Jie. Upon the maturity of the loan, the bank offered the Company an extension, however, the Company failed to sign the extension agreement due to an administrative issue. As of the date of this report, the Company has not received any notice from the bank for repayment, and it expects to continue using this bank facility.

d.	Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui, Chongqing Huajian, Chongqing Yufan and Chongqing Yiyao Electromechanical Co., Ltd. In addition, Chongqing Huajian and Chongqing Yufan also pledged their properties as collateral to guarantee the Company’s loans from United Overseas Bank. As of the date of this report, the Company borrowed additional loans of approximately US$4.2 million under this loan agreement.

e.	Guaranteed by the other subsidiary of the Company, Chongqing Wintus. In addition, the Company’s properties with net book values of US$605,195 were pledged as collateral to secure this loan as of June 30, 2024. The loan was fully repaid upon maturity.

f.	Guaranteed by Ms. Wang Xiaohui and her family member, as well as the other subsidiary of the Company, Chongqing Wintus. In addition, Chongqing Huajian and another third party pledged their properties to guarantee the Company’s loan from Bank of China. The loan was fully repaid upon maturity.

g.	Guaranteed by Ms. Wang Xiaohui, one of the shareholders of the Company, her family members, and Chongqing Huajian. The loan is also guaranteed by other subsidiaries of the Company, Wulong Wintus Silk Co., Ltd (“Wulong Wintus”), Chongqing Hongsheng Silk Co., Ltd and Chongqing Liangping Wintus Textile Ltd (“Liangping Wintus”). In addition, Chongqing Huajian pledged its properties to guarantee the Company’s loan from Chongqing Rural Commercial Bank. The loan was fully repaid upon maturity.

Long-term loans

Long-term bank loans consisted of the following:

SCHEDULE OF LONG TERM BANK LOANS

Lender	March 31, 2025			Maturity Date	Int. Rate/Year
Chongqing Rural Commercial Bank^(a)	$	620,016		2026/9/2		3.35	%
Bank of Chongqing^(b)		1,088,472		2026/7/3		4.00	%
Total long-term bank loans		1,708,488
Less: long-term bank loans, held for discontinued operations		(1,708,488	)
Long-term bank loans, held for continuing operations	$	-

Long-term bank loans-current, held for discontinued operations	$	20,667

Long-term bank loans-non-current, held for discontinued operations	$	1,687,821

The loans outstanding were guaranteed by the following properties, entities or individuals:

a.	Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company. The loan is also guaranteed by other subsidiaries of the Company, Chongqing Wintus and Wulong Wintus. In addition, Liangping Wintus’s properties with net book values of US$524,046 were pledged as collateral to secure this loan.

b.	Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family members of Ms. Wang Xiaohui. In addition, the Company’s properties with net book values of US$1,393,980 were pledged as collateral to secure this loan.

Lender	June 30, 2024			Maturity Date	Int. Rate/Year
Chongqing Rural Commercial Bank^(a)	$	619,199		2024/9/7		4.85	%
Bank of Chongqing^(b)		1,093,919		2026/7/3		4.00	%
Total long-term bank loans		1,713,118
Less: long-term bank loans, held for discontinued operations		(1,713,118	)
Long-term bank loans, held for continuing operations	$	-

Long-term bank loans-current, held for discontinued operations	$	632,959

Long-term bank loans-non-current, held for discontinued operations	$	1,080,159

The loans outstanding were guaranteed by the following properties, entities or individuals:

a.	Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui. The loan is also guaranteed by other subsidiaries of the Company, Chongqing Wintus and Wulong Wintus. In addition, Liangping Wintus’s properties with net book values of US$545,597 were pledged as collateral to secure this loan as of June 30, 2024. The loan was fully repaid upon maturity.

b.	Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family members of Ms. Wang Xiaohui. In addition, the Company’s properties with net book values of US$1,451,298 were pledged as collateral to secure this loan as of June 30, 2024.

The Company recorded interest expenses from continuing operations of US$39,630 and US$39,069 for the nine months ended March 31, 2025 and 2024, respectively. The Company recorded interest expenses from continuing operations of US$12,901 and US$13,130 for the three months ended March 31, 2025 and 2024, respectively.

The annual weighted average interest rates from continuing operations were 4.28% and 4.16% for the nine months ended March 31, 2025 and 2024, respectively. The annual weighted average interest rates from continuing operations were 4.23% and 4.24% for the three months ended March 31, 2025 and 2024, respectively.

The Company recorded interest expenses from discontinued operations of US$432,848 and US$401,673 for the nine months ended March 31, 2025 and 2024, respectively. The Company recorded interest expenses from discontinued operations of US$138,763 and US$147,901 for the three months ended March 31, 2025 and 2024, respectively.

The annual weighted average interest rates from discontinued operations were 4.10% and 4.30% for the nine months ended March 31, 2025 and 2024, respectively. The annual weighted average interest rates from discontinued operations were 3.40% and 4.24% for the three months ended March 31, 2025 and 2024, respectively.

NOTE 14 - CONVERTIBLE NOTES PAYABLE

On June 16, 2021, the Company entered into a Securities Purchase Agreement pursuant to which the Company issued an unsecured convertible promissory note with a maturity date of June 17, 2022 (“the Note”) to an institutional accredited investor Streeterville Capital, LLC (“Investor”). The Note has the original principal amount of US$3,170,000 and Investor gave consideration of US$3.0 million, reflecting original issue discount of US$150,000 and Investor’s legal fee of US$20,000. On September 7, 2022, the Company signed an extension amendment with the Investor to extend the maturity date of the Note to June 17, 2023, resulting in an increase of the principal amount to US$3,500,528. On October 21, 2022, the Company signed a standstill agreement with the Investor, pursuant to which the Investor would not seek repayment of any portion of the Note during the period from October 21, 2022 to January 20, 2023. On January 18, 2023, the Investor re-started the repayment of the Notes. Thereafter, the Company signed a second extension amendment dated as June 15, 2023, with the Investor to extend the maturity date to June 17, 2024, thereby increasing the principal amount to US$3,929,498. On December 21, 2023, the Company entered into a preliminary agreement with the Investor, pursuant to which the Investor would not seek repayment of any portion of the Note during the period from December 22, 2023 to April 16, 2024. The Company signed a third extension amendment dated as June 11, 2024, with the Investor to extend the maturity date to June 17, 2025, thereby increasing the principal amount to US$4,340,781.

On July 16, 2021, the Company entered into a Securities Purchase Agreement (the “July Agreement”) pursuant to which the Company issued two unsecured convertible promissory notes with a one-1year maturity term (the “Notes”) to the same Investor. The first convertible promissory note (“Note #1”) has an original principal amount of US$3,170,000 and the Investor gave consideration of US$3.0 million, reflecting original issue discount of US$150,000 and Investor’s legal fee of US$20,000. The second convertible promissory note (“Note #2”) has an original principal amount of US$4,200,000 and Investor gave consideration of US$4.0 million, reflecting original issue discount of US$200,000. Interest accrues on the outstanding balance of the Notes at 6% per annum. The Company has received the principal in full from the Investor and used the proceeds for general working capital purposes. As of June 30, 2024, the Notes were fully converted, and shares of the Company’s common stock totaling 1,946,766 were issued by the Company to the Investor, equaling principal and interests amounted to US$7,472,638.

On August 19, 2021, the Company entered into a Securities Purchase Agreement (the “Agreement”) pursuant to which the Company issued an unsecured convertible promissory note with a maturity date of August 23, 2022 (the “Note”) to the same Investor. The Note has an original principal amount of US$10,520,000 and Investor gave consideration of US$10.0 million, reflecting original issue discount of US$500,000 and Investor’s legal fee of US$20,000. On September 7, 2022, the Company signed an extension amendment with the Investor to extend the maturity date to August 23, 2023, thereby increasing the principal amount to US$11,053,443.50. On October 21, 2022, the Company signed a standstill agreement with the Investor, pursuant to which the Investor will not seek repayment of any portion of the Note during the period from October 21, 2022 to January 20, 2023. Thereafter, the Company signed a second extension amendment dated as June 15, 2023, with the Investor to extend the maturity date to August 23, 2024, thereby increasing the principal amount to US$11,878,241. On December 21, 2023, the Company entered into a preliminary agreement with the Investor, pursuant to which the Investor would not seek repayment of any portion of the Note during the period from December 22, 2023 to April 16, 2024. The Company signed a third extension amendment dated June 11, 2024, with the Investor to extend the maturity date to August 23, 2025, thereby increasing the principal amount to US$10,698,374.

For the above-mentioned convertible promissory notes issued, interest accrues on the outstanding balance of these notes at 6% per annum. The Investor may seek repayment of all or any part of the outstanding balance of the note, at any time after six months from the issue date upon three trading days’ notice, in cash or converting into shares of the Company’s common stock at a price equal to 80% multiplied by the lowest daily volume weighted average price (“VWAP”) during the fifteen trading days immediately preceding the applicable redemption conversion, subject to certain adjustments and ownership limitations specified in the note. Following the receipt of a redemption notice, the Company may either ratify Investor’s proposed allocation in the applicable redemption notice or elect to change the allocation by written notice to Investor within twenty-four (24) hours of its receipt of such redemption notice, so long as the sum of the cash payments and the amount of redemption conversions equal the applicable redemption amount.

For the nine months ended March 31, 2025 and 2024, a total of US$482,664 and US$612,072 in amortization of the debt issuance and other costs from continuing operations was recorded on the unaudited condensed consolidated statements of loss and comprehensive loss, respectively. For the three months ended March 31, 2025 and 2024, a total of US$146,976 and US$246,015 in amortization of the debt issuance and other costs from continuing operations was recorded on the unaudited condensed consolidated statements of loss and comprehensive loss, respectively.

As of March 31, 2025, shares of the Company’s common stock totaling 1,172,135 were issued by the Company to the Investor equaling principal and interests amounted to US$15,258,357, and cash totaling US$1,050,000 was repaid to the Investor. The Notes balance was US$9,741,322, with a carrying value of US$9,908,256, net of deferred financing costs of US$166,934 was recorded in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2025.

NOTE 15 - TAXES

(a) Corporate Income Taxes

The Company is subject to income taxes on an entity basis on income arising in or derived from the location in which each entity is domiciled.

Shineco is incorporated in the United States and has no operating activities. Shineco Life is incorporated in Hong Kong and is subject to profit taxes in Hong Kong at a rate of 8.25% on assessable profits up to HK$2,000,000 and 16.5% on any part of assessable profits over HK$2,000,000. Biowin is subject to corporate income tax at a reduced rate of 15% starting from December 2019, when it was approved by local government as a High and New Technology Enterprises (“HNTEs”), to December 2022. In December 2022, the Company successfully renewed its HNTE certification with local government and will continue to enjoy the reduced income tax rate of 15% for another three years through December 2025. The subsidiaries of Wintus in the PRC are governed by the Income Tax Laws of the PRC and are currently subject to tax at a statutory rate of 25% on taxable income, except certain subsidiaries that are recognized as small low-profit enterprises. According to the relevant PRC tax policies, once an enterprise meets certain requirements and is identified as a small-scale minimal profit enterprise, the taxable income not more than RMB3 million is subject to a reduced effective rate of 5% during the period from January 1, 2023 to December 31, 2027.

On December 22, 2017, The Act was enacted. The Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change in rate has caused the Company to re-measure its income tax liability and record an estimated income tax expense of US$744,766 for the year ended June 30, 2018. In accordance with SAB 118, additional work is necessary to do a more detailed analysis of The Act as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to current tax expense in fiscal 2019 when the analysis is complete. The Company elects to pay the transition tax over an eight-year period using specified percentages (eight percent per year for the first five years, 15 percent in year six, 20 percent in year seven, and 25 percent in year eight).

i) The components of the income tax provision (benefit) were as follows:

SCHEDULE OF INCOME TAX BENEFIT


	For the nine months ended March 31,						For the three months ended March 31,
	2025			2024			2025			2024
Current income tax provision (benefit)	$	36,814		$	5,744		$	(11,869	)	$	5,744
Deferred income tax provision (benefit)		(875,456	)		(465,783	)		(291,347	)		492,145
Total income tax provision (benefit)		(838,642	)		(460,039	)		(303,216	)		497,889
Less: income tax provision (benefit), held for discontinued operations		650,788			307,393			241,046			(549,781	)
Income tax benefit, held for continuing operations	$	(187,854	)	$	(152,646	)	$	(62,170	)	$	(51,892	)

ii) The components of the deferred tax liability were as follows:

	March 31, 2025			June 30, 2024
Deferred tax assets:
Allowance for credit loss/doubtful accounts	$	1,674,480		$	352,077
Inventory reserve		-			1,522
Net operating loss carry-forwards		2,827,814			1,187,887
Total		4,502,294			1,541,486
Valuation allowance		(4,026,576	)		(1,110,668	)
Total deferred tax assets		475,718			430,818
Deferred tax liability:
Intangible assets		(9,435,301	)		(10,266,124	)
Total deferred tax liability		(9,435,301	)		(10,266,124	)
Deferred tax liability, net		(8,959,583	)		(9,835,306	)
Less: deferred tax liability, net, held for discontinued operations		(7,958,986	)		(8,646,588	)
Deferred tax liability, net, held for continuing operations	$	(1,000,597	)	$	(1,188,718	)

	March 31, 2025			June 30, 2024

Beginning balance	$	1,110,668		$	2,471,066
Acquisition of subsidiaries		-			154,481
Disposal of Tenet Jove		-			(2,392,580	)
Current year addition		2,914,444			881,746
Exchange difference		1,464			(4,045	)
Valuation allowance		4,026,576			1,110,668
Less: valuation allowance, held for discontinued operations		(3,666,103	)		(902,285	)
Valuation allowance, held for continuing operations	$	360,473		$	208,383

(b) Value-Added Tax

The Company is subject to a VAT for selling goods. All of the Company’s products that were sold in the PRC were subject to a Chinese value-added tax at rates ranging from 3% to 13%, depending on the type of products sold. For overseas sales, VAT is exempted on the exported goods. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under commercial practice in the PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued.

In the event that the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of the taxes which are determined to be late or deficient, and the penalty will be expensed in the period if and when a determination is made by the tax authorities. There were no assessed penalties during the nine and three months ended March 31, 2025 and 2024, respectively.

(c) Taxes Payable

Taxes payable consisted of the following:

SCHEDULE OF TAXES PAYABLE

	March 31, 2025			June 30, 2024

Income tax payable	$	1,306,024		$	1,268,904
Value added tax payable		318,884			303,739
Business tax and other taxes payable		819			1,178
Total tax payable		1,625,727			1,573,821
Less: tax payable, held for discontinued operations		(776,949	)		(721,848	)
Tax payable, held for continuing operations	$	848,778		$	851,973

Income tax payable - current portion	$	1,439,536		$	1,387,630
Less: income tax payable - current portion, held for discontinued operations		(776,949	)		(721,848	)
Income tax payable - current portion, held for continuing operations	$	662,587		$	665,782

Income tax payable - noncurrent portion	$	186,191		$	186,191
Less: income tax payable - noncurrent portion, held for discontinued operations		-			-
Income tax payable - noncurrent portion, held for continuing operations	$	186,191		$	186,191

NOTE 16 - STOCKHOLDERS’ EQUITY

Initial Public Offering

On September 28, 2016, the Company completed its initial public offering of 1,713,190 shares of common stock (before the effect of the reverse stock splits mentioned below) at a price of US$4.50 per share for gross proceeds of US$7.7 million and net proceeds of approximately US$5.4 million. The Company’s shares of common stock began trading on September 28, 2016 on the NASDAQ Capital Market under the symbol “TYHT”.

Statutory Reserve

The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”).

Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors. As of March 31, 2025 and June 30, 2024, the balance of the required statutory reserves was US$4,350,297 and US$4,350,297, respectively.

On July 10, 2020, the Company’s stockholders approved a 1-for-9 reverse stock split of the Company’s common stock, par value US$0.001 per share, with a market effective date of August 14, 2020 (the “2020 Reverse Stock Split”). As a result of the 2020 Reverse Stock Split, each nine pre-split shares of common stock outstanding automatically combined and converted to one issued and outstanding share of common stock without any action on the part of stockholders. No fractional shares of common stock were issued to any stockholders in connection with the 2020 Reverse Stock Split. Each stockholder was entitled to receive one share of common stock in lieu of the fractional share that would have resulted from the 2020 Reverse Stock Split. The number of the Company’s authorized common stock remained at 100,000,000 shares, and the par value of the common stock following the 2020 Reverse Stock Split remained at US$0.001 per share. As a result of the 2020 Reverse Stock Split, the Company’s shares and per share data as reflected in the unaudited condensed consolidated financial statements were retroactively restated as if the transaction occurred at the beginning of the periods presented.

On April 10, 2021, the Company issued 16,134 shares of common stock to selected investors at a price of US$768.00 per share. The Company received net proceeds of US$7,981,204 and US$3,024,000 was waived by the Company during the year ended June 30, 2024. (See Note 18)

On August 30, 2023, the Board of Directors of the Company approved the issuance of shares of common stock pursuant to the Company’s 2023 Equity Incentive Plan (the “2023 Plan”) in the aggregate amount of 15,854 shares (the “Shares”) to its non-officer employees. The fair value of the Shares was US$540,310 based on the fair value of share price US$34.08 at August 30, 2023. The Shares were issued in September 2023.

On May 29, 2023, Shineco Life entered into a stock purchase agreement with Dream Partner, Wintus and the Wintus Sellers, pursuant to which Shineco Life shall acquire 71.42% equity interest in Wintus. As the consideration for the Acquisition, the Company (a) paid the Wintus Sellers an aggregate cash consideration of US$2,000,000; (b) issued certain shareholders, as listed in the agreement, an aggregate of 41,667 shares of the Company’s restricted Common Stock; and (c) transferred and sold to the Sellers 100% of the Company’s equity interest in Tenet-Jove. (See Note 11).

On December 22, 2023, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain non-US investors (the “Investors”). Under the Purchase Agreement, the Company agreed to sell to the Investors up to 50,000 shares (the “Shares”) of its common stock at a per share purchase price of US$28.80 for gross proceeds of up to US$1,440,000. The Company has received gross proceeds in full from the Investors, and all of the Shares were issued on December 28, 2023.

On February 1, 2024, the Company’s stockholders approved a 1-for-10 reverse stock split of the shares of the Company’s common stock, with a par value of US$0.001 per share, which became effective on February 16, 2024 (the “First 2024 Reverse Stock Split”). As a result of the First 2024 Reverse Stock Split, each of the ten pre-split shares of common stock outstanding automatically combined and converted to one issued and outstanding share of common stock without any action on the part of the stockholders. No fractional shares of common stock were issued to any shareholders in connection with the First 2024 Reverse Stock Split. Each shareholder received one share of common stock in lieu of the fractional share that would have resulted from the First 2024 Reverse Stock Split. The number of the Company’s authorized common stock also increased to 150,000,000 shares, and the par value of the common stock following the First 2024 Reverse Stock Split remained at US$0.001 per share. As a result of the First 2024 Reverse Stock Split, the Company’s shares and per share data as reflected in the unaudited condensed consolidated financial statements have been retroactively restated as if the transaction occurred at the beginning of the periods presented.

On June 18, 2024, the Board of Directors of the Company approved the issuance of shares of common stock pursuant to the Company’s 2024 Equity Incentive Plan (the “2024 Plan”) in the aggregate amount of 30,650 shares (the “Shares”) to its non-officer employees. The fair value of the Shares was US$2,331,852 based on the fair value of the share price of US$76.08 on June 18, 2024. The Shares were issued on June 18, 2024

On June 20, 2024, the Company entered into a securities purchase agreement with certain non-U.S. investors (the “June 2024 Purchasers”), pursuant to which the Company agreed to sell, and the Purchasers agreed to purchase, severally and not jointly, an aggregate of 58,333 shares of common stock of the Company (the “June 2024 Shares”) at an offering price of US$120.00 per share for gross proceeds of up to US$7.0 million. In reliance on the June 2024 Purchasers’ representations to the Company, the June 2024 Shares issued in this offering were not subject to the registration requirements of the Securities Act, pursuant to Regulation S promulgated thereunder. As of June 30, 2024, proceeds of approximately US$6.4 million were received by the Company, and the remaining proceeds were fully received by the Company in July 2024, and all of the June 2024 Shares were issued on July 8, 2024.

On July 11, 2024, the Company entered into an Underwriting Agreement with EF Hutton LLC, as the representative for several underwriters, relating to the underwritten public offering (the “Offering”) of 77,882 shares of common stock at a public offering price of US$25.68 per share, for aggregate gross proceeds of approximately US$2.0 million, prior to deducting underwriting discounts and other offering expenses. In addition, the Company granted the underwriters a 45-day option to purchase up to an additional 11,683 shares of common stock at the public offering price per share, less the underwriting discounts to cover over-allotments, if any. The Offering closed on July 15, 2024, and the 45-day option expired on August 30, 2024. The net proceeds from the offering were approximately US$1.7 million, after deducting the estimated underwriting discounts and commissions and estimated offering expenses. The Company intends to use approximately 50% of the net proceeds from the Offering for mergers and acquisitions, approximately 25% for repaying outstanding convertible notes, and 25% for general corporate purposes.

On August 22, 2024, the Company entered into a securities purchase agreement (the “SPA”) with 22 purchasers, each an unrelated third party to the Company (collectively, the “August 2024 Purchasers”). Pursuant to the SPA, the August 2024 Purchasers agree to purchase, and the Company agreed to issue and sell to the August 2024 Purchasers, an aggregate of 624,375 shares of the Company’s common stock, par value US$0.001 per share (the “August 2024 Shares”), at a purchase price of US$13.20 per share, and for an aggregate purchase price of US$8,241,750. The SPA, the transaction contemplated thereby, and the issuance of the August 2024 Shares have been approved by the Company’s board of directors. The closing of the transaction contemplated by the SPA took place on September 10, 2024. As of March 31, 2025, proceeds of approximately US$4.7 million were received by the Company, and the remaining proceeds are expected to be fully received by June 30, 2025.

On October 21, 2024, the Company’s stockholders approved a 1-for-24 reverse stock split of the shares of the Company’s common stock, with a par value of US$0.001 per share, which became effective on November 12, 2024 (the “Second 2024 Reverse Stock Split”). As a result of the Second 2024 Reverse Stock Split, each of the twenty-four pre-split shares of common stock outstanding automatically combined and converted to one issued and outstanding share of common stock without any action on the part of the stockholders. No fractional shares of common stock were issued to any shareholders in connection with the Second 2024 Reverse Stock Split. Each shareholder received one share of common stock in lieu of the fractional share that would have resulted from the Second 2024 Reverse Stock Split. As a result of the Second 2024 Reverse Stock Split, the Company’s shares and per share data as reflected in the unaudited condensed consolidated financial statements have been retroactively restated as if the transaction occurred at the beginning of the periods presented.

On December 24, 2024, the Company entered into a securities purchase agreement with nine non-U.S. investors (the “Purchasers”), pursuant to which the Company agreed to sell, and the December 2024 Purchasers agreed to purchase, severally and not jointly, an aggregate of 15,000,000 shares of common stock of the Company (the “Shares”) at a purchase price of US$2.18 per share for gross proceeds of US$32.7 million. In reliance on the Purchasers’ representations to the Company, the Shares were not subject to the registration requirements of the Securities Act, pursuant to Regulation S promulgated thereunder. The Shares were issued to the Purchasers on January 10, 2025, and the proceeds of approximately US$27.6 million received in April 2025. The remaining proceeds are expected to be fully received by June 30, 2025.

NOTE 17 - CONCENTRATIONS AND RISKS

The Company maintains principally all bank accounts in the PRC. The cash balance held in the PRC bank accounts from the continuing operations was US$143,144 and US$100,948 as of March 31, 2025 and June 30, 2024, respectively. The cash balance held in the PRC bank accounts from the discontinued operations was US$87,107 and US$235,828 as of March 31, 2025 and June 30, 2024, respectively.

During the nine and three months ended March 31, 2025 and 2024, almost 100% of the Company’s assets were located in the PRC and 100% of the Company’s revenue was derived from its subsidiaries and VIEs located in the PRC.

For the nine months ended March 31, 2025, two customers accounted for approximately 40% of the Company’s total sales from the continuing operations. For the three months ended March 31, 2025, four customers accounted for approximately 57% of the Company’s total sales from the continuing operations.

For the nine months ended March 31, 2025, no customer accounted for more than 10% of the Company’s total sales from the discontinued operations. For the three months ended March 31, 2025, four customers accounted for approximately 57% of the Company’s total sales from the discontinued operations.

For the nine months ended March 31, 2024, three customers accounted for approximately 42% of the Company’s total sales from the continuing operations. For the three months ended March 31, 2024, three customers accounted for approximately 46% of the Company’s total sales from the continuing operations.

For the nine months ended March 31, 2024, four customers accounted for approximately 58% of the Company’s total sales from the discontinued operations. For the three months ended March 31, 2024, two customers accounted for approximately 72% of the Company’s total sales from the discontinued operations.

As of March 31, 2025, one customer accounted for approximately 100% of the Company’s accounts receivable from the continuing operations. As of March 31, 2025, three customers accounted for approximately 95% of the Company’s accounts receivable from the discontinued operations.

As of June 30, 2024, one customer accounted for approximately 89% of the Company’s accounts receivable from the continuing operations. As of June 30, 2024, two customers accounted for approximately 91% of the Company’s accounts receivable from the discontinued operations.

For the nine months ended March 31, 2025, one vendor accounted for approximately 93% of the Company’s total purchases from the continuing operations. For the three months ended March 31, 2025, no vendor accounted for more than 10% of the Company’s total purchases from the continuing operations.

For the nine months ended March 31, 2025, two vendors accounted for approximately 35% of the Company’s total purchases from the discontinued operations. For the three months ended March 31, 2025, four vendors accounted for approximately 92% of the Company’s total purchases from the discontinued operations.

For the nine months ended March 31, 2024, two vendors accounted for approximately 35% of the Company’s total purchases from the continuing operations. For the three months ended March 31, 2024, four vendors accounted for approximately 82% of the Company’s total purchases from the continuing operations.

For the nine months ended March 31, 2024, two vendors accounted for approximately 36% of the Company’s total purchases from the discontinued operations. For the three months ended March 31, 2024, one vendor accounted for approximately 99% of the Company’s total purchases from the discontinued operations.

NOTE 18 - COMMITMENTS AND CONTINGENCIES

Lease commitments

The Company leases offices for operation under operating leases. Future minimum lease payments of US$313,453 under non-cancellable operating leases with initial terms in excess of one year were included in Note 10.

Legal Contingencies

On November 26, 2021, the Company filed a complaint in the Supreme Court of the State of New York, New York County against Lei Zhang and Yan Li, as defendants, and Transhare Corporation (“Transhare”), as a nominal defendant, asserting that defendants had not paid for certain restricted shares of the Company’s common stock pursuant to stock purchase agreements they executed with the Company. In December, defendants filed an answer and counterclaim against the Company, which they amended on January 27, 2022 after the Company moved to dismiss their counterclaims. They brought claims for, among others, breach of contract, breach of the covenant of good faith and fair dealing, and fraud, asserting that the Company made false and materially misleading statements, specifically regarding the sale of such shares to Lei Zhang and Yan Li and the removal of their restrictive legends. Defendants are seeking money damages of at least US$9 million, punitive damages of US$10 million, plus interest, costs, and fees. In April 2022, the Court granted the Company’s motion for a preliminary injunction to restrain the Company’s transfer agent from removing the restrictive legends on the shares, provided that the Company posts a bond, which the Company declined to do. On June 13, 2022, the restriction imposed on the shares were lifted.

Nominal defendant Transhare Corporation moved to dismiss the defendants’ counterclaim against it for wrongful refusal to remove restrictions pursuant to 6 Del. C. § 8-401, and its motion was fully submitted in April 2022. On September 9, 2022, the Court granted Transhare Corporation’s motion to dismiss defendants’ counterclaim for wrongful refusal to remove restrictions. Defendants have appealed the Court’s September 9, 2022 order dismissing defendants’ counterclaim for wrongful refusal to remove restrictions. On October 3, 2022, the parties submitted a stipulation dismissing defendants’ outstanding counterclaim against Transhare Corporation seeking declaratory judgment.

The Company participated in a formal mediation with the defendants Lei Zhang and Yan Li on September 18, 2023. As a result of the mediation, the parties were able to reach a settlement agreement in December 2023. The parties executed a Settlement Agreement on December 21, 2023, and the claims by each side were formally dismissed by the court on December 22, 2023. The subscription receivable amounted to US$3,024,000 was waived by the Company during the fiscal year ended June 30, 2024, and the Company will not retrieve the shares that were issued to the defendants.

Introduced by a business partner (the “Party A”) of Life Science, Life Science entered into a loan agreement with an individual (the “the Plaintiff”) on April 15, 2024 (the Party A, Life Science and the Plaintiff are collectively called the “Three Parties”). Pursuant to the loan agreement, Life Science would obtain a loan in the amount of RMB 25.0 million (approximately US$ 3.4 million) with a term of 90 days, at the interest rate of 30.0%, and the loan was to be used exclusively as working capital for Life Science’s future merger and acquisition projects. To prevent the misuse of the loan, the Three Parties orally agreed that the loan would first be transferred by the Plaintiff to the bank accounts of the Party A, and upon the completion of merger and acquisition project, the Party A would then transfer the loan to bank accounts designated by Life Science. While this oral agreement was not explicitly stated in the written agreement, the Three Parties mutually agreed and fully understood their rights and obligations. Upon signing the loan agreement, the Plaintiff transferred a total of RMB 15.0 million (approximately US$2.1 million) to the Party A. However, the Party A failed to transfer the RMB 15.0 million (the “Fund”) to the bank accounts designated by Life Science as agreed, resulting in the failure to proceed with the merger and acquisition project. On October 31, 2024, the Plaintiff submitted a civil complaint to the Beijing Chaoyang District People’s Court against Life Science and the Party A (the “Civil Complaint”). The Civil Complaint requested that Life Science and the Party A make the compensation to the Plaintiff for the outstanding loans plus interests and the liquidated damages. However, Life Science contended that the Party A’s unauthorized withholding of the funds constituted a fundamental breach of contract, and the related liability should be borne by the Party A personally. Life Science will vigorously defend itself and plans to initiate legal proceedings against the Party A, demanding the return of the Fund to the Plaintiff and compensation for any losses, including the principal of the loan, interest and other penalty fees. As of March 31, 2025, Life Science recorded approximately RMB 22.0 million (US$3.0 million) payable due to the Plaintiff, including the principal of the loan, interest and other penalty fees.

On November 8, 2024, Zhejiang Shijin Packaging Co., Ltd. (“the Plaintiff”) submitted a civil complaint to the People’s Court of Deqing County, Zhejiang Province (the “Court”) against the Company’s subsidiary Biowin. The complaint requested that Biowin make the compensation to the Plaintiff for the outstanding trade payable plus interests and the litigation fee in this case shall be borne by Biowin. On December 5, 2024, the Court issued a judgement that Biowin shall pay the Plaintiff the outstanding trade payable, the litigation fee, and the interest expense if payments are not made according to the schedule. As of March 31, 2025, Biowin recorded RMB 121,447 (US$16,733) trade account payable due to the Plaintiff, and the compensation claimed by the Plaintiff was RMB 54,723 (US$7,540).

On April 16, 2025, Bank of Jiangsu (“the Plaintiff”) commenced a lawsuit against the Company’s subsidiary, Biowin, in the Jiangsu Changzhou High-Tech Industrial Development Zone People’s Court. The Plaintiff alleged that Biowin entered into a loan agreement with the Plaintiff on June 27, 2024, pursuant to which Biowin obtained a loan in the amount of RMB2,946,000 (US$405,904) with a term from June 27, 2024 to January 20, 2025, at the interest rate of 4.00%. However, Biowin failed to make monthly payment of interests, the Plaintiff, in accordance with the loan contract terms, declared the loan due and payable in advance. The loan was matured on January 20, 2025, but Biowin had not fulfilled its repayment obligations, therefore, the Plaintiff alleged that Biowin breached the loan agreement and seek the repayment of the principal, interests, penalty interests and the litigation fee against Biowin. As of March 31, 2025, Biowin recorded RMB 2,946,000 (US$405,904) loan payable due to the Plaintiff, and the interests and compensation claimed by the Plaintiff was RMB 254,322 (US$35,041).

NOTE 19 - SEGMENT REPORTING

ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Group’s internal organizational management structure as well as information about geographical areas, business segments, and major customers in for details on the Group’s business segments.

The Company’s chief operating decision maker has been identified as the Chief Executive Officer who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the Group. Based on management’s assessment, the Company has determined that it has following operating segments according to its major products and locations as follows:

●	Developing, manufacturing, and distributing of specialized fabrics, textile products, and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, commonly known as “Bluish Dogbane” or known in Chinese as “Luobuma” (referred to herein as Luobuma), which are reclassified as discontinued operations:

	The operating companies of this segment, namely Tenet-Jove and Tenet Huatai, specialize in Luobuma growing, development and manufacturing of relevant products, as well as purchasing Luobuma raw materials processing.

	This segment’s operations are focused in the north region of Mainland China, mostly carried out in Beijing, Tianjin, and Xinjiang.

●	Planting, processing, and distributing of green and organic agricultural produce as well as growing and cultivating of Chinese Yew trees (“Other agricultural products”), which are reclassified as discontinued operations:

	The operating company of this segment, Qingdao Zhihesheng, is engaged in the business of growing and distributing green and organic vegetables and fruits. This segment has been focusing its efforts on the growing and cultivating of Chinese yew trees (formally known as “taxus media”), a small evergreen tree whose branches can be used for the production of medications believed to be anti-cancer and the tree itself can be used as an ornamental indoor bonsai tree, which are known to have the effect of purifying air quality. The operations of Zhihesheng are located in the East and North regions of Mainland China, mostly carried out in Shandong Province and in Beijing, where Zhihesheng have newly developed over 100 acres of modern greenhouses for cultivating yew trees and other plants.

	The other operating company of this segment, Guangyuan, is engaged in the business of landscaping, afforestation, road greening, scenic greening, garden engineering, landscaping construction, and green afforestation, especially in planting fast-growing bamboo willows and scenic greening trees. The operations of Guangyuan are located in the North regions of Mainland China, mostly carried out in Shanxi Province, where Guangyuan has developed over 350 acres of farmland for cultivating bamboo willows and other plants.

●	Providing domestic air and overland freight forwarding services (“Freight services”), which are reclassified as discontinued operations:

	The operating company of this segment, Zhisheng Freight, is engaged in the business of providing domestic air and overland freight forwarding services by outsourcing these services to a third party. The Company merely serves as an agent and its obligation is to facilitate third-party logistic companies in fulfilling its performance obligation for specified freight services.

●	Developing, producing and distributing innovative rapid diagnostic products and related medical devices for the most common diseases (“Rapid diagnostic and other products”):

	The operating company of this segment, Biowin, specializes in the development, production and distribution of innovative rapid diagnostic products and related medical devices for the most common diseases. The operations of this segment are located in Jiangsu Province. Its products are sold not only in China but also overseas in countries such as Germany, Spain, Italy, Thailand, Japan and others.

●	Producing, processing and distribution of agricultural products, such as silk and silk fabrics, as well as trading of fresh fruit (“Other agricultural products”), which are reclassified as discontinued operations:

	The operating company of this segment, Wintus, specializes in producing, processing and distributing agricultural products, such as silk and silk fabrics, as well as fresh fruit. The operations of this segment are located in Chongqing, China. Wintus has established approximately 150,000 acres of mulberry orchards in Fuling District and Wulong District of Chongqing. Wintus operates a silk factory in Liangping District, Chongqing that processes silk products, which are then distributed worldwide through dealers. Its products are sold not only in China but also overseas countries such as the United States, Europe (Germany, France, Italy, Poland), Japan, South Korea, and Southeast Asia (India, Thailand, Indonesia, Bangladesh, and Cambodia), among other countries and regions. In addition to silk products, Wintus also engages in the fruit trading business. It imports fruits from Southeast Asia and other regions, distributing them through dealers to supermarkets and stores nationwide in China.

●	Developing and selling healthy meals for people with slow metabolic health and those in recovery from metabolic disorders (“Healthy meals products”):

	The operating company of this segment, Fuzhou Meida, operates a health-oriented chain restaurant that focuses on the concept of “improving metabolism through diet.” Fuzhou Meida specializes in developing healthy meals for people with slow metabolic health and those in recovery from metabolic disorders. Fuzhou Meida recently opened its restaurant in Fuzhou City, Fujian Province. The restaurant features an open kitchen and adopts a modern Chinese style, offering a variety of modern Chinese healthy light meals and metabolism-boosting meal sets. The Company plans to gradually establish additional branches in key cities across China, including Beijing, Shanghai, Guangzhou, and other southeastern coastal regions.

The following table presents summarized information by segment for the nine months ended March 31, 2025:

SCHEDULE OF INFORMATION BY SEGMENT

	For the nine months ended March 31, 2025
	Continuing Operations						Discontinued Operations
	Rapid diagnostic and other			Healthy meals			Other agricultural			Luobuma
	products			products			products			products		Total
Segment revenue	$	258,091		$	949		$	7,633,705		$	-	$	7,892,745
Cost of revenue and related business and sales tax		136,458			249			7,303,612			-		7,440,319
Gross profit		121,633			700			330,093			-		452,426
Gross profit %		47.1	%		73.8	%		4.3	%		-		5.7	%

The following table presents summarized information by segment for the nine months ended March 31, 2024:

	For the nine months ended March 31, 2024
	Continuing Operations						Discontinued Operations
	Rapid diagnostic and other			Healthy meals			Other agricultural			Luobuma
	products			products			products			products			Total
Segment revenue	$	441,927		$	17,645		$	4,844,587		$	4,439		$	5,308,598
Cost of revenue and related business and sales tax		169,954			43,179			4,488,086			4,183			4,705,402
Gross profit (loss)		271,973			(25,534	)		356,501			256			603,196
Gross profit (loss) %		61.5	%		(144.7	)%		7.4	%		5.8	%		11.4	%

The following table presents summarized information by segment for the three months ended March 31, 2025:

	For the three months ended March 31, 2025
	Continuing Operations					Discontinued Operations
	Rapid diagnostic and other			Healthy meals		Other agricultural			Luobuma
	products			products		products			products		Total
Segment revenue	$	40,971		$	-	$	2,628,318		$	-	$	2,669,289
Cost of revenue and related business and sales tax		55,082			-		2,575,082			-		2,630,164
Gross profit (loss)		(14,111	)		-		53,236			-		39,125
Gross profit (loss) %		(34.4	)%		-		2.0	%		-		1.5	%

The following table presents summarized information by segment for the three months ended March 31, 2024:

	For the three months ended March 31, 2024
	Continuing Operations						Discontinued Operations
	Rapid diagnostic and other			Healthy meals			Other agricultural			Luobuma
	products			products			products			products		Total
Segment revenue	$	142,805		$	6,541		$	1,202,054		$	-	$	1,351,400
Cost of revenue and related business and sales tax		54,460			23,733			1,081,540			-		1,159,733
Gross profit (loss)		88,345			(17,192	)		120,514			-		191,667
Gross profit (loss) %		61.9	%		(262.8	)%		10.0	%		-		14.2	%

Total assets as of March 31, 2025 and June 30, 2024 were as follows:

	March 31, 2025			June 30, 2024

Other agricultural products	$	72,905,256		$	70,339,148
Rapid diagnostic and other products		12,562,560			13,750,630
Healthy meals products		34,729			89,601
Total assets		85,502,545			84,179,379
Less: total assets held for discontinued operations		(60,936,613	)		(62,678,986	)
Total assets, held for continuing operations	$	24,565,932		$	21,500,393

NOTE 20 - DISCONTINUED OPERATIONS

On March 20, 2025, Shineco Life entered into a stock purchase agreement (the “SPA”) with Yi Yang (the “Seller”), a current and only shareholder of FuWang (HK) International Company Limited (“FuWang (HK)”), a company limited by shares incorporated in Hong Kong. Pursuant to the SPA, the Seller sold 75% of the equity interests in FuWang (HK) (“FuWang Acquisition”) to Shineco Life. In consideration of the FuWang Acquisition, (a) Shineco Life paid the Seller RMB 63.89 million in cash, (b) the Company issued and transferred 3,400,000 shares of the Company’s common stock, par value $0.001 per share to the Seller, and (c) the Company transferred its 71.42% equity interests in Dream Partner to the Seller. The Company obtained the controlling rights of production and operation of FuWang (HK) on April 1, 2025.

In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and non-current liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes benefit, shall be reported as a component of net loss separate from the net loss of continuing operations in accordance with ASC 205-20-45. The assets and liabilities of the Tenet-Jove Disposal Group and Wintus have been reclassified as “assets of discontinued operations” and “liabilities of discontinued operations” within current and non-current assets and liabilities, respectively, on the unaudited condensed consolidated balance sheet as of March 31, 2025 and the consolidated balance sheet as of June 30, 2024. The results of operations of Tenet-Jove Disposal Group and Wintus have been reclassified to “net income (loss) from discontinued operations” in the unaudited condensed consolidated statements of loss and comprehensive loss for the nine and three months ended March 31, 2025 and 2024.

The carrying amount of the major classes of assets and liabilities of discontinued operations as of March 31, 2025 and June 30, 2024 consist of the following:

SCHEDULE OF DISCONTINUED OPERATIONS

	March 31, 2025		June 30, 2024
Assets of discontinued operation:
Current assets:
Cash	$	79,239	$	214,259
Restricted cash		15,156		28,896
Accounts receivables, net		1,677,590		1,214,757
Due from related parties		234,225		359,321
Inventories, net		1,025,836		1,308,556
Advances to suppliers, net		19,079,599		9,986,844
Derivative financial assets		3,357		6,380
Other current assets, net		248,218		378,403
Total current assets of discontinued operation		22,363,220		13,497,416

Property and equipment, net		5,178,302		5,159,441
Land use right, net of accumulated amortization		601,305		615,607
Intangible assets, net		29,572,727		32,234,273
Goodwill		3,221,059		11,171,537
Operating lease right-of-use assets		-		712
Total assets of discontinued operation	$	60,936,613	$	62,678,986

Liabilities of discontinued operation:
Current liabilities:
Short-term loans	$	12,121,049	$	12,288,506
Long-term loans - current portion		20,667		632,959
Accounts payable		4,358,856		708,778
Advances from customers		10,776,154		217,918
Due to related parties		2,449,279		1,714,464
Other payables and accrued expenses		403,262		571,746
Deferred income		192,894		68,800
Taxes payable		776,949		721,848
Total current liabilities of discontinued operation		31,099,110		16,925,019

Long-term loans - non-current		1,687,821		1,080,159
Deferred tax liability		7,958,986		8,646,588
Total liabilities of discontinued operation	$	40,745,917	$	26,651,766

The summarized operating result of discontinued operations included in the Company’s unaudited condensed consolidated statements of loss and comprehensive loss consist of the following:


	For the Nine Months Ended March 31,						For the Three Months Ended March 31,
	2025			2024			2025			2024

REVENUE	$	7,633,705		$	4,849,026		$	2,628,318		$	1,202,054

COST OF REVENUE
Cost of products		7,301,782			4,484,838			2,574,635			1,080,074
Business and sales related tax		1,830			7,431			447			1,466
Total cost of revenue		7,303,612			4,492,269			2,575,082			1,081,540

GROSS PROFIT		330,093			356,757			53,236			120,514

OPERATING EXPENSES
General and administrative expenses		8,625,011			4,722,764			4,683,494			2,223,095
Selling expenses		54,597			84,925			19,538			20,221
Total operating expenses		8,679,608			4,807,689			4,703,032			2,243,316

LOSS FROM OPERATIONS		(8,349,515	)		(4,450,932	)		(4,649,796	)		(2,122,802	)

OTHER EXPENSE
Impairment loss on goodwill		(7,950,478	)		-			(7,950,478	)		-
Investment income (loss) from derivative financial assets		1,635			4,240			(2,604	)		706
Other income (expenses), net		290,513			214,458			(1,630	)		(5,601	)
Interest expenses, net		(517,617	)		(448,668	)		(165,539	)		(167,635	)
Total other expenses		(8,175,947	)		(229,970	)		(8,120,251	)		(172,530	)

LOSS BEFORE BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS		(16,525,462	)		(4,680,902	)		(12,770,047	)		(2,295,332	)

PROVISION (BENEFIT) FOR INCOME TAXES FROM DISCONTINUED OPERATIONS		(650,788	)		(307,393	)		(241,046	)		549,781

LOSS FROM DISCONTINUED OPERATIONS, NET OFF TAX		(15,874,674	)		(4,373,509	)		(12,529,001	)		(2,845,113	)

INCOME ON DISPOSAL OF DISCONTINUED OPERATIONS		-			8,904,702			-			-

NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS		(15,874,674	)		4,531,193			(12,529,001	)		(2,845,113	)

Net loss attributable to non-controlling interest		(2,190,870	)		(1,222,290	)		(1,307,492	)		(843,243	)

NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC.	$	(13,683,804	)	$	5,753,483		$	(11,221,509	)	$	(2,001,870	)

NOTE 21 - SUBSEQUENT EVENTS

On April 22, 2025, Shineco Life entered into a share purchase agreement (the “SPA”) with Dr. Lim Kah Meng (the “Seller”), the sole shareholder of InfiniClone Limited, a company incorporated under the laws of Hong Kong (“InfiniClone”). Pursuant to the SPA, the Seller shall sell 51% of the equity interests in InfiniClone Limited that he holds (the “InfiniClone Shares”) to Shineco Life. In consideration of the sale of the InfiniClone Shares, Shineco Life shall pay the Seller US$19,895,600 in cash, and the Company will issue and transfer 3,450,000 shares of the Company’s common stock, par value $0.001 per share to the Seller within 90 days after the execution of the SPA. The transaction contemplated thereby and the issuance of the Shares has been approved by the Company’s board of directors, and the acquisition is expected to be completed in May 2025.

These unaudited condensed consolidated financial statements were approved by management and available for issuance on May 15, 2025, and the Company has evaluated subsequent events through this date. No subsequent events required adjustments to or disclosure in these unaudited condensed consolidated financial statements.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

Forward-Looking Statements

This Quarterly Report on Form 10-Q (the “Quarterly Report”) contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is subject to the safe harbor created by those sections. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws. Forward-looking statements involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “should,” “will,” “could,” and similar expressions denoting uncertainty or an action that may, will or is expected to occur in the future. These statements involve estimates, assumptions, known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from any future results, performances or achievements expressed or implied by the forward-looking statements.

Examples of forward-looking statements include:

	●	the timing of the development of future products;

	●	projections of revenue, earnings, capital structure, and other financial items;

	●	local, regional, national, and global price fluctuations of raw materials;

	●	statements of our plans and objectives, including those that relate to our proposed expansions and the effect such expansions may have on our revenue;

	●	statements regarding the capabilities of our business operations;

	●	statements of expected future economic performance;

	●	statements regarding competition in our market; and

	●	assumptions underlying statements regarding us or our business.

The ultimate correctness of these forward-looking statements depends upon a number of known and unknown risks and events. Many factors could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Consequently, you should not place undue reliance on these forward-looking statements.

The forward-looking statements speak only as of the date on which they are made, and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Nonetheless, we reserve the right to make such updates from time to time by press release, periodic report, or other method of public disclosure without the need for specific reference to this Quarterly Report. No such update shall be deemed to indicate that other statements not addressed by such update is incorrect or create an obligation to provide any other updates.

The information included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited condensed consolidated financial statements and the notes included in this Quarterly Report, and the audited consolidated financial statements and notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report. All monetary figures are presented in U.S. dollars, unless otherwise indicated.

General Overview

Shineco, Inc. is a holding company incorporated in Delaware. Prior to the following acquisition and the termination of the VIE structure, as a holding company with no material operations of our own, we conducted a substantial majority of our operations through the operating entities established in the People’s Republic of China, or the PRC, primarily the variable interest entities (the “VIEs”). We did not have any equity ownership of the VIEs, instead we received the economic benefits of the VIEs’ business operations through certain contractual arrangements. Our common stock that currently listed on the Nasdaq Capital Markets are shares of our Delaware holding company. The Chinese regulatory authorities could disallow our structure, which could result in a material change in our operations and the value of our securities could decline or become worthless.

On December 30, 2022, Shineco Life Science Group Hong Kong Co., Limited (“Shineco Life”), a company established under the laws of Hong Kong and a wholly owned subsidiary of the Company, closed the acquisition of 51% of the issued equity interests of Changzhou Biowin Pharmaceutical Co., Ltd. (“Biowin”), a company established under the laws of China, pursuant to the previously announced stock purchase agreement, dated as of October 21, 2022, among Beijing Kanghuayuan Medicine Information Consulting Co., Ltd., a company established under the laws of China (“Seller”), Biowin, the Company and Shineco Life. As the consideration for the acquisition, the Company paid to Seller US$9,000,000 in cash and the Company issued 13,583 shares of the Company’s common stock, par value US$0.001 per share, to the equity holders of Biowin or any persons designated by Biowin. According to a supplementary agreement, dated as of December 30, 2022, by and among Shineco Life, the Seller and Biowin, the Seller owned 51% of the issued equity interests of Biowin before January 1, 2023, and transferred the 51% of the issued equity interests of Biowin together with its controlling rights of production and operation of Biowin to Shineco Life on January 1, 2023.

On May 29, 2023, Shineco Life entered into a stock purchase agreement with Dream Partner Limited, a BVI corporation (“Dream Partner”), Chongqing Wintus Group, a corporation incorporated under the laws of mainland China (“Wintus”), and certain shareholders of Dream Partner (the “Sellers”), pursuant to which Shineco Life shall acquire 71.42% equity interest in Wintus (the “Acquisition”). On September 19, 2023, the Company closed the Acquisition. As the consideration for the Acquisition, the Company (a) paid the Sellers an aggregate cash consideration of US$2,000,000; (b) issued certain shareholders, as listed in the agreement, an aggregate of 41,667 shares of the Company’s restricted Common Stock; and (c) transferred and sold to the Sellers 100% of the Company’s equity interest in Beijing Tenet-Jove Technological Development Co., Ltd. (“Tenet-Jove Shares”). Following the closing of the Acquisition and the sale of the Tenet-Jove Shares, the Company divested its equity interest in its operating subsidiary Tenet-Jove (“Tenet-Jove Disposal Group”) and thereby terminated its VIE Structure.

On March 20, 2025, Shineco Life entered into a stock purchase agreement with Yi Yang (the “Seller”), a current and only shareholder of FuWang (HK) International Company Limited (“FuWang (HK)”), a company limited by shares incorporated in Hong Kong. Pursuant to the agreement, the Seller sold 75% of the equity interests in FuWang (HK) to Shineco Life (“FuWang Acquisition”). In consideration of the FuWang Acquisition, (a) Shineco Life paid the Seller RMB 63.89 million in cash, (b) the Company issued and transferred 3,400,000 shares of the Company’s common stock, par value $0.001 per share to the Seller, and (c) the Company transferred its 71.42% equity interests in Wintus to the Seller. The Company obtained the controlling rights of production and operation of FuWang (HK) on April 1, 2025.

We used our subsidiaries’ vertically and horizontally integrated production, distribution, and sales channels to provide health and well-being focused plant-based products. Through our subsidiary, Biowin, which specializes in the development, production and distribution of innovative rapid diagnostic products and related medical devices for the most common diseases, we also stepped into the Point-of-Care Testing industry. Meanwhile, our subsidiary, Fuzhou Meida, opened its restaurant, which is a health-oriented chain restaurant that focuses on the concept of “improving metabolism through diet.” As of March 31, 2025, the Company, through its subsidiaries, operates the following main business segments:

Developing, producing and distributing innovative rapid diagnostic products and related medical devices for the most common diseases (“Rapid diagnostic and other products”): - This segment is conducted through Biowin, which specializes in the development, production and distribution of innovative rapid diagnostic products and related medical devices for the most common diseases. The operations of this segment are located in Jiangsu Province. Its products are sold not only in China, but also overseas countries such as Germany, Spain, Italy, Thailand, Japan and other countries.

Developing and selling healthy meals for people with slow metabolic health and those in recovery from metabolic disorders (“Healthy meals products”): – This segment is conducted through Fuzhou Meida, which specializes in developing healthy meals for people with slow metabolic health and those in recovery from metabolic disorders. Fuzhou Meida recently opened its restaurant in Fuzhou city, Fujian Province. The restaurant features an open kitchen and adopts a modern Chinese style, offering a variety of modern Chinese healthy light meals and metabolism-boosting meal sets. The Company plans to gradually establish additional branches in key cities across China, including Beijing, Shanghai, Guangzhou, and other southeastern coastal regions.

Tenet-Jove Disposal Group conducts three other business segments. First, developing, manufacturing, and distributing specialized fabrics, textiles, and other by-products derived from an indigenous Chinese plant Apocynum Venetum, known in Chinese as “Luobuma” or “Bluish Dogbane,” as well as Luobuma raw materials processing; this segment is conducted through our wholly owned subsidiary, Tenet-Jove. Second, planting, processing and distributing green and organic agricultural produce, growing and cultivation of yew trees, as well as planting fast-growing bamboo willows and scenic greening trees; this segment is conducted through Qingdao Zhihesheng and Guangyuan. Third, providing domestic air and overland freight forwarding services by outsourcing these services to a third party; this segment is conducted through Zhisheng Freight. Meanwhile, Wintus is engaged in producing, processing and distributing agricultural products, such as silk, silk fabrics and fresh fruit. The business segments conducted by Tenet-Jove Disposal Group and Wintus were reclassified as discontinued operations. The assets and liabilities of the Tenet-Jove Disposal Group and Wintus have been reclassified as “assets of discontinued operations” and “liabilities of discontinued operations” within current and non-current assets and liabilities, respectively, on the unaudited condensed consolidated balance sheet as of March 31, 2025 and the consolidated balance sheet as of June 30, 2024. The results of operations of Tenet-Jove Disposal Group and Wintus have been reclassified to “net income (loss) from discontinued operations” in the unaudited condensed consolidated statements of loss and comprehensive loss for the nine and three months ended March 31, 2025 and 2024.

Financing Activities

On June 16, 2021, the Company entered into a securities purchase agreement pursuant to which the Company issued an unsecured convertible promissory note with a one-year maturity term to an institutional accredited investor, Streeterville Capital, LLC (“Investor”). The note had an original principal amount of US$3,170,000 and Investor gave consideration of US$3.0 million, reflecting original issue discount of US$150,000 and Investor’s legal fee of US$20,000. Interest accrues on the outstanding balance of the note at 6% per annum. The Company has received the principal in full from the Investor and used the proceeds for general working capital purposes. On September 7, 2022, the Company signed an extension amendment with the Investor to extend the maturity date to June 17, 2023. On October 21, 2022, the Company signed a standstill agreement with the Investor, pursuant to which the Investor would not seek to redeem any portion of the note during the period from October 21, 2022 to January 20, 2023. On January 18, 2023, the Investor re-started the redemption of the notes. On June 15, 2023, the Company signed an extension amendment with the Investor to extend the maturity date to June 17, 2024. On December 21, 2023, the Company entered into a preliminary agreement with the Investor, pursuant to which the Investor would not seek repayment of any portion of the note during the period from December 22, 2023 to April 16, 2024. On June 11, 2024, the Company signed an extension amendment with the Investor to extend the maturity date to June 17, 2025. As of March 31, 2025, no share of the Company’s common stock under this agreement was issued by the Company to the Investor, and the notes balance was US$4,523,722, with a carrying value of US$4,552,756, net of deferred financing costs of US$29,034 was recorded in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2025.

On July 16, 2021, the Company entered into another securities purchase agreement with the Investor, pursuant to which the Company issued the Investor two unsecured convertible promissory notes each with a one-year maturity term. The first convertible promissory note had an original principal amount of US$3,170,000 and the Investor gave consideration of US$3.0 million, reflecting original issue discount of US$150,000 and Investor’s legal fee of US$20,000. The second convertible promissory note has the original principal amount of US$4,200,000 and Investor gave consideration of US$4.0 million, reflecting original issue discount of US$200,000. Interest accrues on the outstanding balance of the Notes at 6% per annum. The Company has received the principal in full from the Investor and used the proceeds for general working capital purposes. As of March 31, 2025, the Notes was fully converted and shares of the Company’s common stock totaling 8,112 were issued by the Company to the Investor equaling principal and interests amounted to US$7,472,638.

On August 19, 2021, the Company entered into another securities purchase agreement with the Investor, pursuant to which the Company issued the Investor an unsecured convertible promissory note with a one-year maturity term. The note has an original principal amount of US$10,520,000 and Investor gave consideration of US$10.0 million, reflecting original issue discount of US$500,000 and Investor’s legal fee of US$20,000. Interest accrues on the outstanding balance of the note at 6% per annum. The Company has received the principal in full from the Investor and used the proceeds for general working capital purposes. On September 7, 2022, the Company signed an extension amendment with the Investor to extend the maturity date to August 23, 2023. On October 21, 2022, the Company signed a standstill agreement with the Investor, pursuant to which the Investor will not seek to redeem any portion of the note during the period from October 21, 2022 to January 20, 2023. On June 15, 2023, the Company signed an extension amendment with the Investor to extend the maturity date to August 23, 2024. On December 21, 2023, the Company entered into a preliminary agreement with the Investor, pursuant to which the Investor would not seek repayment of any portion of the note during the period from December 22, 2023 to April 16, 2024. On June 11, 2024, the Company signed an extension amendment with the Investor to extend the maturity date to August 23, 2025. As of March 31, 2025, shares of the Company’s common stock totaling 1,164,023 were issued by the Company to the Investor equaling principal and interests amounted to US$7,785,719 and cash totaling US$1,050,000 was repaid to the Investor. The notes balance was US$5,217,600, with a carrying value of US$5,355,500, net of deferred financing costs of US$137,900 was recorded in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2025.

On June 20, 2024, the Company entered into a securities purchase agreement with certain non-U.S. investors (the “June 2024 Purchasers”), pursuant to which the Company agreed to sell, and the June 2024 Purchasers agreed to purchase, severally and not jointly, an aggregate of 58,333 shares of common stock of the Company (the “June 2024 Shares”) at an offering price of US$120.00 per share for gross proceeds of up to US$7.0 million. In reliance on the June 2024 Purchasers’ representations to the Company, the June 2024 Shares issued in this offering were not subject to the registration requirements of the Securities Act, pursuant to Regulation S promulgated thereunder. As of June 30, 2024, proceeds of approximately US$6.4 million were received by the Company, and the remaining proceeds were fully received by the Company in July 2024, and all of the June 2024 Shares were issued on July 8, 2024.

On July 11, 2024, the Company entered into an Underwriting Agreement with EF Hutton LLC, as the representative for several underwriters, relating to the underwritten public offering (the “Offering”) of 77,882 shares of common stock at a public offering price of US$25.68 per share, for aggregate gross proceeds of approximately US$2.0 million, prior to deducting underwriting discounts and other offering expenses. In addition, the Company granted the underwriters a 45-day option to purchase up to an additional 11,683 shares of the common stock at the public offering price per share, less the underwriting discounts to cover over-allotments, if any. The Offering closed on July 15, 2024, and the 45-day option expired on August 30, 2024. The Offering closed on July 15, 2024, and the 45-day option expired on August 30, 2024. The net proceeds from the Offering were approximately US$1.7 million, after deducting the estimated underwriting discounts and commissions and estimated offering expenses.

On August 22, 2024, the Company entered into a securities purchase agreement (the “SPA”) with 22 purchasers, each an unrelated third party to the Company (collectively, the “August 2024 Purchasers”). Pursuant to the SPA, the August 2024 Purchasers agree to purchase, and the Company agreed to issue and sell to the August 2024 Purchasers, an aggregate of 624,375 shares of the Company’s common stock, par value US$0.001 per share (the “August 2024 Shares”), at a purchase price of US$13.20 per share, and for an aggregate purchase price of US$8,241,750. The SPA, the transaction contemplated thereby, and the issuance of the August 2024 Shares have been approved by the Company’s board of directors. The closing of the transaction contemplated by the SPA took place on September 10, 2024. As of March 31, 2025, proceeds of approximately US$4.7 million were received, and the remaining proceeds are expected to be fully received by June 30, 2025.

Factors Affecting Financial Performance

We believe that the following factors will affect our financial performance:

Increasing demand for our products – We believe that the increasing demand for our products will have a positive impact on our financial position. We plan to develop new products and expand our distribution network as well as to grow our business through possible mergers and acquisitions of similar or synergetic businesses, all aimed at increasing awareness of our brand, developing customer loyalty, meeting customer demands in various markets and providing solid foundations for our growth. As of the date of this Quarterly Report, however, we do not have any agreements, undertakings or understandings to acquire any such entities and there can be no guarantee that we ever will.

Maintaining effective control of our costs and expenses - Successful cost control depends upon our ability to obtain and maintain adequate material supplies as required by our operations at competitive prices. We will focus on improving our long-term cost control strategies including establishing long-term alliances with certain suppliers to ensure adequate supply is maintained. We will carry forward the economies of scale and advantages from our nationwide distribution network and diversified offerings.

Economic and Political Risks

Our operations are conducted primarily in the PRC and subject to special considerations and significant risks not typically associated with companies operating in North America and/or Western Europe. These include risks with, among others, the political, economic and legal environment and foreign currency exchange. Our results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversions, remittances abroad, and rates and methods of taxation, among other things.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements as well as the reported amounts of revenue and expenses during the reporting period. Critical accounting policies are those accounting policies that may be material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change, and that have a material impact on financial condition or operating performance. While we base our estimates and judgments on our experience and on various other factors that we believe to be reasonable under the circumstances, actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies used in the preparation of our unaudited condensed consolidated financial statements require significant judgments and estimates. For additional information relating to these and other accounting policies, see Note 3 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report.

Use of Estimates

Significant estimates required to be made by management include, but are not limited to, useful lives of property and equipment, and intangible assets, the recoverability of long-lived assets, assessment of expected credit losses for accounts receivable and other current asset, the valuation allowance of deferred taxes and inventory reserves. Actual results could differ from those estimates.

Credit Losses

On July 1, 2023, we adopted Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The adoption of the credit loss accounting standard has no material impact on our consolidated financial statements as of the date of adoption.

Our account receivables and other receivables included in other current assets on the unaudited condensed consolidated balance sheets are within the scope of ASC Topic 326. We make estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable and other receivables balances, credit-worthiness of the customers and other debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers and other debtors. We also provide specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected.

Expected credit losses are recorded as general and administrative expenses on the unaudited condensed consolidated statements of loss and comprehensive loss. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event we recover amounts previously reserved for, we will reduce the specific allowance for credit losses.

Inventories, Net

Inventories, which are stated at the lower of cost or net realizable value, consist of raw materials, work-in-progress, and finished goods related to our products. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. Cost is determined using the weighted average method. We periodically evaluate our inventory and records an inventory reserve for certain inventories that may not be saleable or whose cost exceeds net realizable value. As of March 31, 2025 and June 30, 2024, the inventory reserve from the continuing operations was nil and US$30,443, respectively. As of March 31, 2025 and June 30, 2024, the inventory reserve from the discontinued operations was both nil.

Revenue Recognition

We generate our revenue primarily through sales of Luobuma products, other agricultural products, healthy meals and rapid diagnostic and other products, as well as providing logistic services and other processing services to external customers in accordance with ASC 606. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

Sales of products: We recognized revenue from the sale of products at the point in time when the goods were delivered and title to the goods passed to the customer, provided that there were no uncertainties regarding customer acceptance; persuasive evidence of an arrangement existed; the sales price was fixed or determinable; and collectability was deemed probable.

Revenue from provision of services: The Company merely acts as an agent in these types of services transactions. Revenue from domestic air and overland freight forwarding services was recognized at the point in time upon the performance of services as stipulated in the underlying contract or when commodities were being released from the customer’s warehouse; the service price was fixed or determinable; and collectability was deemed probable.

SHINECO, INC. 10-Q