Mon, Sep 30, 9:08 PM (81 days ago)
Shineco, Inc. reported substantial changes in its financial performance for the fiscal year ending June 30, 2024. Total revenue surged to $9,802,000, up 1,681% from $550,000 in 2023, primarily driven by new agricultural product lines following the acquisition of Wintus. However, operating expenses more than doubled to $17,948,000, leading to a significant operating loss of $17,066,000. The company recorded a net loss of $24,353,000, a 75% increase from the previous year's loss of $13,956,000, largely due to increased general administrative costs and a $14,825,000 impairment on goodwill. The balance sheet reflects a total asset increase to $84,179,000, with current liabilities rising sharply to $27,563,000, resulting in negative working capital of $6,659,000. The company’s liquidity is under scrutiny, with substantial doubt raised about its ability to continue as a going concern. The recent acquisitions of Biowin and Wintus, alongside ongoing operational challenges, emphasize the strategic shift towards health and agricultural products, although regulatory risks in China and reliance on convertible debt pose significant threats to future stability.