Breaking Down Shineco, Inc. (SISI) Financial Health: Key Insights for Investors

You're looking at Shineco, Inc. (SISI) because you see a company trying to execute a strategic pivot, but honestly, the financials show a serious fight for stability. Here's the quick math: over the trailing twelve months (TTM) leading into late 2025, SISI reported revenue of just $9.60 million against a staggering net loss of nearly $38.90 million, a massive negative spread that screams for a capital infusion. This isn't just a growth hiccup; it's a liquidity warning, especially when you factor in a Current Ratio of only 0.72, meaning their short-term assets don't defintely cover their short-term liabilities. Plus, the recent 1-for-50 reverse stock split on August 11, 2025, while a necessary move to maintain Nasdaq compliance, underscores the extreme pressure on the share price. So, before you commit capital, you need to understand how the new tech pivot can overcome this significant financial drag and what those near-term risks mean for your portfolio.

Revenue Analysis

You're looking at Shineco, Inc. (SISI) and seeing a volatile revenue picture, and honestly, you're right to be cautious. The headline figures for the last fiscal year look massive, but the near-term trend is a sharp reversal. You need to look past the historical noise and focus on the current segment performance to understand the risk.

The company reported annual revenue of $9.80 million for the fiscal year ending June 30, 2024, which represented an explosive year-over-year growth rate of 1,680.61%. That kind of spike is usually a one-time event, and the latest data confirms that momentum is gone. The last twelve months (TTM) revenue, as of March 31, 2025, sits at $9.60 million, but the third quarter of 2025 (Q3 2025) revenue was a mere $40.97K. That's a massive drop.

Here's the quick math: Q3 2025 revenue saw a quarterly decline of -98.66%. That is a red flag on the near-term top line, suggesting a failure to sustain the prior year's growth drivers. You can't ignore that kind of deceleration.

Shineco, Inc. operates across three core business segments, which have seen a notable shift in contribution recently. This diversification is key, but the segment performance is uneven:

• Rapid Diagnostic and Other Products: Historically a key area, but sales have decreased.
• Other Agricultural Products: This segment drove the revenue increase in the second quarter of fiscal year 2025.
• Healthy Meal Products: A smaller, but consistent, part of the overall mix.

For the quarter ending December 31, 2024 (Q2 FY2025), total revenue was $3,049,171, up from the previous year's comparative quarter, primarily driven by a surge in sales from the other agricultural products segment. Conversely, the gross profit decline in that same quarter was attributed to decreased sales in the rapid diagnostic products segment. This shows a clear shift in where the revenue is coming from, moving away from the higher-margin diagnostic products toward lower-margin agricultural goods like fresh fruits, which pushed the cost of revenue to 96% of sales.

The company is also trying to pivot, announcing a new Biological Cell Digital Division in the context of Q3 2025 results, which is a strategic effort to leverage blockchain technology and modernize their approach. While ambitious, this new venture is a long-term bet and not a current revenue driver. For a deeper dive into the company's long-term goals, you can review their Mission Statement, Vision, & Core Values of Shineco, Inc. (SISI).

What this estimate hides is the sustainability of the agricultural products revenue, especially given the razor-thin margins. The table below summarizes the critical, recent revenue figures you need to keep in focus:

The action here is clear: don't invest based on the massive 2024 growth number. Track the contribution of the agricultural segment and wait for concrete, profitable revenue from the new Biological Cell Digital Division before you consider this a turnaround story.

Profitability Metrics

You need to know if Shineco, Inc. (SISI) can turn a profit, and the simple answer is: not right now. The company's profitability ratios for the Trailing Twelve Months (TTM) ending in 2025 show a deep, systemic loss, particularly when compared to its industry peers. This isn't a small dip; it's a major operational challenge.

For the TTM period, Shineco, Inc. reported a total revenue of approximately $9.60 million. However, the costs associated with running the business far outstrip this revenue, leading to significant negative margins across the board. Honestly, these numbers are a flashing red light for any investor.

Here's the quick math on the core profitability metrics for Shineco, Inc. (SISI) based on TTM data ending in 2025:

• Gross Profit Margin: 8.03%
• Operating Profit Margin: -161.15%
• Net Profit Margin: -405.2%

The gross profit of $771,030 is barely a starting point. Once you factor in the massive operating expenses, the Operating Income (EBIT) plummets to a loss of approximately $-15.47 million. The final Net Income loss for the TTM period is an astonishing $-38.90 million.

Operational Efficiency and Cost Management

The gross margin trend is the first sign of operational stress. Shineco, Inc.'s TTM Gross Margin of 8.03% is a steep drop from its 5-Year Average (5YA) of 12.74%. This tells me the core business-the cost of goods sold (COGS) versus revenue-is getting less efficient. The company is spending more to make its products, which is a key risk, plus, the recent Q3 2025 quarterly gross profit was even negative at $-14.11K.

The real issue, though, lies in the sheer scale of the operating loss. A negative Operating Margin of -161.15% means that for every dollar of revenue, the company is losing more than a dollar just to cover its operating costs (like General and Administrative expenses). While the TTM Operating and Net Margins are technically 'less negative' than the 5YA figures (where the 5YA Net Margin was -940.23%), this only means the losses are less severe than they were historically, not that the company is anywhere near breakeven. You need to see a clear path to a positive operating margin.

Peer Comparison: A Stark Reality

To put Shineco, Inc.'s TTM profitability into perspective, you have to compare it to the industry average for the Drug Manufacturers - Specialty & Generic sector. The gap here is defintely the most critical takeaway. The company is operating in a completely different financial universe than its peers.

The industry is profitable; Shineco, Inc. is not.

The takeaway is clear: Shineco, Inc.'s Gross Margin is less than one-fifth of the industry average. The negative Operating and Net Margins indicate that the company's business model, as it stands in 2025, is fundamentally unsustainable without massive, immediate changes to both COGS and operating expenditure. For a deeper dive into who is still investing in this environment, you should read Exploring Shineco, Inc. (SISI) Investor Profile: Who's Buying and Why?

Next Step: Finance needs to model a pathway to a positive 20% Gross Margin within the next two quarters and identify specific cost-cutting measures to reduce the Operating Loss by 50% immediately.

Debt vs. Equity Structure

You need to know how Shineco, Inc. (SISI) is funding its operations, and the short answer is that the company is relying more on debt than in the past, pushing its leverage significantly higher than the industry norm. As of March 30, 2025, Shineco, Inc.'s total debt stood at approximately $11.5 million, against shareholder equity of about $26.1 million. This tells a clear story about their financial structure.

The key metric here is the Debt-to-Equity (D/E) ratio, which measures how much debt a company uses to finance its assets relative to the value of its shareholders' equity. For Shineco, Inc., the D/E ratio is approximately 0.45, or 44.1%. To be fair, a D/E of 0.45 isn't necessarily alarming on its own, but you have to compare it to the company's operating environment. The broader Consumer Staples industry, which is a relevant proxy for some of Shineco, Inc.'s segments, typically operates with a lower D/E ratio, closer to 21.8%. Shineco, Inc. is using nearly double the debt relative to equity compared to that benchmark.

Here's the quick math on the leverage profile:

• Total Debt (Mar 2025): $11.5 million
• Total Shareholder Equity (Mar 2025): $26.1 million
• Debt-to-Equity Ratio: 44.1%
• Industry D/E Standard (Consumer Staples): 21.8%

What this estimate hides is the composition of the company's liabilities. While the total debt is $11.5 million, the total liabilities are much higher at approximately $59.4 million, as of the third quarter of 2025. This difference highlights a significant reliance on non-interest-bearing liabilities, but the short-term pressure is intense. Specifically, their short-term liabilities reached $48.6 million, which their short-term assets do not cover. That's a defintely a near-term liquidity risk to watch.

The company's financing history shows a shift toward higher leverage. Over the past five years, the D/E ratio has climbed sharply from a very low 3.5% to the current 44.1%, indicating a growing preference for debt financing over retained earnings or new equity. Recent financing activity has been a mix of both debt and equity, a common balancing act for companies in a growth or restructuring phase.

Recent funding actions include:

• Issuance of $9.7 million in convertible debt as of March 2025.
• Proceeds of $5,806,192 from a combination of common stock issuance and short-term loans in the six months ended December 31, 2024.

This shows Shineco, Inc. is actively using short-term loans and convertible instruments-which can turn into equity later-to fund operations, plus they are also tapping the equity market. The lack of a formal credit rating is typical for a company of this size, especially one whose stock was recently suspended from the Nasdaq. The overall picture is one of a company utilizing significant leverage, well above its peers, to fuel its strategic pivot into new business areas. You can read more about the broader financial picture in Breaking Down Shineco, Inc. (SISI) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if Shineco, Inc. (SISI) can cover its near-term obligations, and honestly, the latest numbers show a tight squeeze. A company's liquidity is its ability to meet short-term debts, and for the quarter ending March 31, 2025, the picture is one of reliance on external funding, not organic cash flow.

The core issue is the working capital (Current Assets minus Current Liabilities), which remains in a significant deficit. As of March 31, 2025, the company's Total Current Assets were approximately $34.92 million, but its Short-Term Liabilities stood at about $48.6 million. Here's the quick math: that leaves a working capital deficit of roughly $13.68 million. This deficit confirms the trend seen in the prior quarter, where the company reported a working capital deficit of $5,961,484 as of December 31, 2024. A deficit means current debt outweighs assets that can be quickly converted to cash. That's a red flag.

Current and Quick Ratios

The liquidity ratios reinforce this concern. The Current Ratio, which measures current assets against current liabilities, should ideally be 1.0 or higher. Shineco, Inc.'s Current Ratio for the quarter ending March 31, 2025, is only about 0.72 ($34.92M / $48.6M). The Quick Ratio (or Acid-Test Ratio), which is a stricter test that excludes inventory, is also low at approximately 0.71, given that Inventory is a small portion of current assets at just $0.21 million. A ratio below 1.0 means the company would struggle to pay off all its short-term debt if it came due immediately. It's a clear solvency test failure.

Cash Flow Statement Overview

The cash flow statement for the quarter ending March 31, 2025, shows where the company is sourcing and using its cash. The key takeaway is that the core business is still burning cash, requiring continuous external support.

• Operating Cash Flow: Cash used in operating activities was -$3.12 million. This negative figure indicates that the company's day-to-day business operations are not generating enough cash to cover expenses.
• Investing Cash Flow: Cash used in investing activities was -$2.98 million. This outflow suggests the company is still spending on assets, like Property, Plant & Equipment, or other long-term investments, which is a drain on cash reserves.
• Financing Cash Flow: Cash provided by financing activities was a positive $6.0 million. This is the lifeline. The company is relying on proceeds from the issuance of common stock and short-term loans to cover its operating and investing deficits.

The trend is clear: Shineco, Inc. is funding its operations and investments by raising capital from stockholders and taking on debt. You can read more about the investor base in Exploring Shineco, Inc. (SISI) Investor Profile: Who's Buying and Why?

Liquidity Concerns and Actionable Insight

The primary liquidity concern is the dependence on financing to bridge the operating cash flow gap. The company itself has acknowledged its reliance on financial support from stockholders to meet future obligations. This isn't a sustainable model long-term. The strength is their ability to secure this financing-they raised $6.0 million in Q3 2025. But still, that's not a business strength, it's a financial engineering strength.

For investors, the immediate action is to monitor the financing activities. If the pace of new capital raises slows, or if the terms become punitive, the liquidity crunch will become critical. Look for a sustained shift to positive operating cash flow, not just more stock issuance. The current ratios defintely suggest caution.

Valuation Analysis

You're looking at Shineco, Inc. (SISI) and trying to figure out if it's a bargain or a value trap. The quick takeaway is that traditional valuation metrics are largely unhelpful right now, and the stock is trading with extreme volatility and a clear bearish sentiment. You need to look past the ratios and focus on the fundamental risks, especially given the company's recent move to the OTC Pink Market (OTCPK) after its suspension from Nasdaq in October 2025.

Is Shineco, Inc. (SISI) Overvalued or Undervalued?

Honestly, determining a definitive 'fair value' for Shineco, Inc. is nearly impossible with the latest data. The company is unprofitable, reporting a trailing twelve months (TTM) net loss of -$38.90 million, which immediately renders the Price-to-Earnings (P/E) ratio useless-it's technically non-applicable or 0.00 because you can't divide price by negative earnings.

Here's the quick math on the metrics we can calculate based on the latest figures (as of November 2025):

• Price-to-Book (P/B) Ratio: The P/B is a strikingly low 0.01. This implies the market is valuing the company at just one cent for every dollar of its book value, signaling profound investor skepticism about the quality of its assets or its ability to generate future profits.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio sits at -1.9x. A negative EV/EBITDA is common for companies with negative earnings before interest, taxes, depreciation, and amortization (EBITDA), but it doesn't give you a clear valuation floor.

The low P/B ratio suggests the stock is 'cheap' on paper, but given the massive TTM loss and a market capitalization of only about $297.20k, this is defintely a high-risk situation where the market sees a significant risk of asset impairment or dilution.

Stock Price Trends and Volatility

The stock price trend over the last year is a story of catastrophic decline and high volatility. The 52-week price change shows a drop of nearly -99.81%. As of November 14, 2025, the stock price was around $0.300, but its 52-week range stretched from a low of $0.123 to a high of $7.96. That's a wild ride.

What this estimate hides is the impact of corporate actions. The company executed a reverse stock split in August 2025 (a 50:1 ratio) to try and comply with Nasdaq's minimum bid price rule, a move that often precedes further stock price weakness. The stock's high volatility has increased from 31% to 41% over the past year, so expect extreme price swings.

Dividends and Analyst Consensus

For income-focused investors, there's no relief here. Shineco, Inc. does not appear to pay any dividends, so the dividend yield and payout ratios are non-applicable.

The analyst community offers a clear, if stark, picture. The company is currently covered by 0 analysts, meaning there is no formal consensus price target or rating from major investment banks. However, independent technical analysis has downgraded the stock to a Strong Sell candidate as of November 2025, and the general market sentiment is overwhelmingly bearish. This lack of institutional coverage and negative sentiment is a major red flag for a company that has recently lost its Nasdaq listing. If you want to dig deeper into the company's long-term vision, you can review their Mission Statement, Vision, & Core Values of Shineco, Inc. (SISI).

Next Step: Before considering any position, Finance should model a worst-case scenario cash burn rate for the next 12 months using the -$38.90 million TTM loss as a baseline to assess the immediate bankruptcy risk.

Risk Factors

You need to understand that the risks facing Shineco, Inc. (SISI) are not theoretical-they are existential, centered on financial viability and listing compliance. The company's future hinges on its ability to execute a radical strategic pivot while addressing immediate, severe cash flow and governance issues.

Honestly, the most pressing concern is the company's financial position. As of the quarter ended December 31, 2024, Shineco, Inc. reported a working capital deficit of over $5.96 million. This means their short-term liabilities far exceed their short-term assets, forcing a dependence on financial support from stockholders just to meet future obligations.

Operational and Financial Health Risks

The core business model struggles with profitability, which is a massive internal risk. The gross profit for the quarter ended December 31, 2024, dropped sharply to only $121,460, down from $312,318 in the previous year. Here's the quick math: the cost of revenue for that quarter was a staggering 96% of sales, up from 86%, primarily due to the low gross margin from fresh fruits. You can't run a sustainable business when nearly every dollar of revenue is eaten up by the cost of goods sold.

The profitability ratios from the third quarter of 2025 paint a stark picture of the struggle, showing an EBIT margin of -374.3% and a pre-tax profit margin of -928.4%. Plus, the Q3 2025 revenue was only around $40.97 thousand, which barely touches the operational costs that crossed $3.8 million.

Operational control is also a material weakness. Management identified issues in internal controls over financial reporting, specifically concerning segregation of duties and credit risk evaluation, as recently as February 2025. A delayed annual 10-K filing announced on September 30, 2025, only compounds the governance risk.

External and Strategic Risks: The Delisting Threat

The external risk is clear: the loss of a major listing. Shineco, Inc. received a notice from Nasdaq in June 2025 for non-compliance with the $1.00 minimum bid-price rule. Because the company had already executed a reverse stock split in the preceding 12 months, it was ineligible for the typical 180-day grace period.

The company did execute a 50:1 reverse stock split in August 2025 to try and remedy the situation. Still, the effort wasn't enough. Nasdaq suspended trading of Shineco, Inc.'s common stock effective October 7, 2025, and the stock was dropped from the NASDAQ Composite Index, now trading on the OTC Markets. This move drastically reduces liquidity and increases price volatility risk for investors.

Mitigation Strategies and the New Pivot

To be fair, the company is fighting for a turnaround with a major strategic pivot. Their mitigation strategy centers on shifting from low-margin agricultural products toward high-tech biotechnology and digital services.

• Strategic Shift: Established a new Biological Cell Digital Division to integrate cell technology with blockchain for asset management.
• New Business Wins: Secured an $8.7 million technology services contract in September 2025, signaling a potential revenue stream from this new focus.
• Product Development: Achieved mass production of high-purity phospholipids in September 2025, which could improve product margins.

This is a high-risk, high-reward bet. The company is trying to use technology to stabilize the ship, but the financial metrics show they are running out of time and capital. For more context on the long-term vision behind this pivot, you can review the Mission Statement, Vision, & Core Values of Shineco, Inc. (SISI).

Growth Opportunities

You're looking at Shineco, Inc. (SISI) and wondering if their dramatic pivot from agricultural products to biotech is a brilliant move or a desperate gamble. The answer is that their future growth hinges entirely on the success of their new, high-tech, high-risk ventures, specifically in biocellular assets and blockchain, which have already started to generate significant contract revenue in 2025.

The company is no longer just a traditional Chinese medicine (TCM) and agricultural play. Their real near-term opportunity lies in the newly established Biological Cell Digital Business Division, which integrates biological cell assets with cutting-edge blockchain technology to create a traceable, global ecosystem for cell assets. This is a bold, defintely non-cliched move.

Key Growth Drivers: The Biocell & Blockchain Pivot

Shineco, Inc. is strategically repositioning itself to capture value in the high-margin biotech sector. This shift is built on three core drivers that represent a fundamental change in their business model, moving away from low-margin agricultural goods.

• Biocellular Asset Tokenization: The partnership with Plus Me Limited to tokenize biological cellular assets using blockchain is a major innovation. This creates a new revenue stream by issuing 'Cell Infusion Redemption Tokens' that can be redeemed at affiliated therapy centers.
• Strategic Acquisition and Infrastructure: To support this, the company acquired a 51% stake in Xi'an Dong'ao Health Management Co. in August 2025, providing the necessary infrastructure for cryogenic cell storage and clinical applications.
• High-Value Technology Contracts: A subsidiary, Dong'ao Health, signed a technology services contract in September 2025 valued at US$8.7 million with Xinke Future Biotechnology (Bazhou) Co., Ltd. for research on microalgae-derived extracellular vesicles technology. This contract, running through December 31, 2026, provides a clear, immediate revenue boost for the new division.

Revenue Projections and Earnings Reality

Honesty first: traditional analyst consensus for Shineco, Inc.'s near-term revenue and earnings is scarce or highly volatile because of this pivot. The last reported Q3 2025 revenue was only $40.971K, and the company reported a net loss from continuing operations of $2,289,683 for the quarter ended December 31, 2024. The company had a working capital deficit of $5,961,484 as of December 31, 2024, so they need a win fast.

Here's the quick math: the $8.7 million technology contract alone is a massive injection compared to the recent quarterly revenue, and it points to a new, high-value revenue stream that can stabilize the financials. Plus, the June 2025 private placement of common stock raised $13.5 million, giving them a much-needed capital cushion to fund these ambitious projects.

Competitive Advantages in the New Era

Shineco, Inc.'s competitive edge is shifting from its original focus on the aging population and plant-based products to its aggressive move into tech. The company is leveraging its existing expertise in in vitro diagnostic reagents and induced pluripotent stem cell (iPSC) technology platforms, having researched and developed 33 kinds of diagnostic reagents to date.

Their main advantage is being an early mover in integrating cell technology with blockchain, which aims to enhance the management and verification of cell-related assets. This is a unique position that few traditional biotech firms have embraced. Also, the strategic alliance with Singapore's BICC for a joint laboratory and technology exchange marks a significant step toward global market expansion in the biocellular field.

To be fair, the 50:1 reverse stock split in August 2025 was a necessary move to maintain Nasdaq compliance, not a sign of intrinsic value growth, but it shows a commitment to staying listed and executing the new strategy. The executive team's plan to purchase up to $2 million in common stock, with CEO Jennifer Zhan and CFO Sai (Sam) Wang using personal funds, is a strong signal of internal confidence in the company's new direction.

For a deeper dive into who is betting on this pivot, you should read Exploring Shineco, Inc. (SISI) Investor Profile: Who's Buying and Why?

Next Step: Monitor the news flow for Q4 2025 earnings to see the initial impact of the $8.7 million contract and the blockchain division's early revenue generation.