Shineco, Inc. (SISI): Business Model Canvas [Dec-2025 Updated]

You're looking at Shineco, Inc. (SISI) right now, and honestly, it's a defintely complex pivot, swinging hard from agricultural products into high-stakes biotech, like iPSC technology and blockchain asset tokenization. As an analyst who has mapped these turnarounds for two decades, this model shows serious tension: they just raised $13.5 million in new cash, yet their Q3 2025 revenue was a mere $40.97K, while Cost of Revenue chewed up 96% of sales. This Business Model Canvas breaks down exactly how Shineco, Inc. (SISI) is trying to bridge that gap-leveraging an $8.7 million microalgae R&D contract and managing $85.50M in total assets-to see if this aggressive biotech strategy can stabilize the ship. Dive in below to see the nine building blocks of this high-risk, high-reward structure.

Shineco, Inc. (SISI) - Canvas Business Model: Key Partnerships

You're looking at how Shineco, Inc. is building out its biocellular and digital asset ecosystem through strategic alliances. This isn't just about signing MOUs; it's about locking in specific, measurable contracts and ownership stakes to monetize their R&D. Honestly, for a company with a market capitalization around $5.61 million as of September 2025, these partnerships are critical for near-term revenue visibility.

The core of the current strategy involves leveraging its subsidiary, Xi'an Dong'ao Health Management Co., Ltd., to execute major technology service agreements. This subsidiary is now majority-owned by Shineco, Inc., which is a key resource control move.

Here's a quick look at the financial and structural commitments tied to these key relationships:

The deal with Xinke Future Biotechnology is a prime example of monetizing research. That $8.7 million contract is structured with milestone payments, which is smart for managing cash flow, though the initial payment was only $560,000. Still, having revenue streams tied to milestones through December 31, 2026, provides a solid runway.

The integration of blockchain technology via the Plus Me Limited partnership is designed to transform physical assets into liquid ones. This involves several technical components that you need to track:

• Issuance of Cell Infusion Redemption Tokens.
• Digital custody of compliant mesenchymal stem cells.
• Smart contracts securing ownership via non-fungible digital identifiers.
• Programmatic burning of tokens upon redemption at therapy centers.

To support this digital asset strategy, the acquisition of Xi'an Dong'ao Health Management Co. on August 18, 2025, for a 51% stake, is crucial. This entity provides the necessary off-chain infrastructure-cryogenic cell storage and clinical application capabilities-required to make the on-chain tokens redeemable in the real world. This move, alongside a recent 50:1 reverse stock split effective August 11, 2025, shows a clear focus on structural compliance and asset monetization.

The alliance with BICC Pte Ltd in Singapore is aimed squarely at global reach. They plan to use BICC's extensive commercial network to push Dong'ao Health's services into Southeast Asia. This is about scaling the application scenarios beyond the domestic market, aiming for global redeemability of those on-chain cell assets.

For context on the company's financial base supporting these ventures, Shineco reported quarterly revenue of $3,049,171 in its February 14, 2025, 10-Q filing for the period ended December 31, 2024. Also, the company recently raised capital through a $13.5 million private placement, issuing 18,000,000 shares at $0.75 per share to fund these strategic pivots.

Regarding the partnership with Beijing Xihuan Psychological Consulting for a tumor patient rehabilitation platform, the specific financial commitment or platform metrics weren't detailed in the latest public announcements, so we can only note its existence as a planned application scenario for their broader health services.

Shineco, Inc. (SISI) - Canvas Business Model: Key Activities

Research and development of iPSC technology and extracellular vesicles.

Shineco, Inc. operates as a developer and commercializer of induced pluripotent stem cell (iPSC) technology platforms and extracellular vesicle-derived products. The company is actively pursuing R&D in this area, evidenced by a technology services contract signed by its subsidiary, Dong'ao Health, valued at US$8.7 million for the research and development of 'microalgae-derived extracellular vesicles' technology. The service period for this contract runs from August 25, 2025, to December 31, 2026. An initial payment of US$560,000 was already received under this agreement. Furthermore, the company announced achieving mass production of high-purity, highly active free-form soybean phospholipids using proprietary APCC-UF pure physical extraction technology.

The reported Research & Development expense for the quarter ending March 31, 2025, was -$90.2k USD. Over the last year leading up to that report, the Research & Development growth rate was 42%.

Operating the Biological Cell Digital Business Division.

Shineco, Inc. established the Biological Cell Digital Business Division on August 13, 2025, to integrate its biological cell assets with blockchain technology. This division aims to build a vertical ecosystem within the biological cell sector to accelerate global distribution and boost sales. Key objectives for the Division include:

• Promote standardized management of biological cell assets.
• Establish an induced pluripotent stem cells ('IPSC') cell bank.
• Achieve blockchain-linking and establish compliance frameworks for asset traceability.
• Develop supporting industry blockchain tools, such as equity transfer mechanisms.

The division is led by Mr. Lin Hongguang, formerly Chief Researcher at the Korea Digital Currency Research Institute. This activity is intended to make cell technology services more accessible to global users and introduce artificial intelligence ('AI') tools to optimize the service experience.

Manufacturing and distributing in vitro diagnostic reagents and medical devices.

This segment, referred to in recent filings as 'rapid diagnostic and other products,' is a core component of Shineco, Inc.'s operations. The company is a provider of diagnostic medical products and related medical devices. The financial performance of this segment contributes to the overall quarterly revenue figures.

Planting, processing, and distributing agricultural produce and healthy foods.

Shineco, Inc. plants, processes, and distributes agricultural produce, with business segments including 'other agricultural products' and 'healthy meal products.' The company also engages in the trading of fresh fruits, and the processing and distribution of silk and silk fabrics, as well as other by-products, and operates a restaurant in Fuzhou. For the fiscal year ending June 30, 2024, Shineco had annual revenue of $9.80M. The cost of revenue for this segment is high; for the quarter ending March 31, 2025, the gross margin was -34.4%.

The revenue breakdown for the quarter ending March 31, 2025, which totaled $3,049,171, showed a significant reliance on the agricultural side:

Executing a 50:1 reverse stock split to maintain Nasdaq compliance.

Shineco, Inc. executed a 50:1 reverse stock split of its common stock, which became effective on Monday, August 11, 2025. This action was taken to bring the company into compliance with Nasdaq Rule 5550(a)(2), which concerns the minimum bid price requirement for continued listing. Shareholders had approved a reverse split ratio between 25:1 and 60:1 at a meeting on July 3, 2025. The pre-split stock traded at $0.15 per share. The split mathematically increased the per-share price by a factor of 50. This action reduced the number of outstanding shares from approximately 45.7 million to approximately 914,455 shares. Following the split, the stock continued trading on the Nasdaq Capital Market under the same 'SISI' symbol but with a new CUSIP number, 824567606.

The financial state leading to this action included a weak Financial Health Score of 1.44 out of 5 and negative earnings of $5.94 per share over the last twelve months, as of the announcement date. Cash reserves fell to $192,740 in Q1 2025 from $731,790 in Q4 2024.

Shineco, Inc. (SISI) - Canvas Business Model: Key Resources

You're looking at the hard assets and core capabilities Shineco, Inc. (SISI) relies on to execute its strategy as of late 2025. These aren't just line items; they are the foundation for their biological cell and diagnostic ambitions.

The company's most tangible, quantifiable resources are detailed below, reflecting the balance sheet as of the first quarter of fiscal year 2025 and recent capital activity.

Beyond the balance sheet, the proprietary technology and intellectual property form critical, non-physical resources for Shineco, Inc.

The core technological assets driving the current business focus include:

• Induced pluripotent stem cell (iPSC) technology platforms.
• The strategic goal to establish an iPSC cell bank, which underpins their cryogenic cell storage and clinical application ambitions.
• Intellectual property centered around diagnostic capabilities, including the development of in vitro diagnostic reagents.

The recent capital raise is a key financial resource that directly supports the development and scaling of these technological assets. Here's the quick math on that cash infusion:

The private placement closed on July 2, 2025, brought in $13.5 million in gross proceeds by selling 18,000,000 shares at $0.75 per share to non-U.S. investors.

The company's stated focus on its biological cell assets, including the iPSC technology, is being supported by a new organizational structure aimed at leveraging this IP.

• Establishment of a Biological Cell Digital Business Division in August 2025.
• Primary goals for this division include promoting standardized management of biological cell assets and achieving blockchain-linking for traceability.

To be fair, while the outline mentions 33 researched in vitro diagnostic reagents as an IP asset, I can only confirm Shineco, Inc.'s business involves providing diagnostic medical products and devices, not the exact count of reagents as of late 2025.

Finance: draft 13-week cash view by Friday.

Shineco, Inc. (SISI) - Canvas Business Model: Value Propositions

You're looking at the core value Shineco, Inc. (SISI) is trying to deliver across its evolving business lines as of late 2025. It's a mix of high-tech biotech infrastructure and established product sales, so the value propositions reflect that dual focus.

Here's a quick look at some key financial context around this time:

Digital custody and verifiable provenance for biological cellular assets via blockchain.

Shineco, Inc. (SISI) is positioning itself as an infrastructure provider for the cell economy. This value proposition centers on solving issues like inefficient global circulation and unverifiable product history in the biological cell sector. They established the Biological Cell Digital Business Division in August 2025 to drive this. The core offering here is trust and liquidity for biological assets.

• Full lifecycle digital custody of compliant mesenchymal stem cells (MSCs) deployed on the Ethereum mainnet.
• Issuance of unique non-fungible digital identifiers (NFDIs) for each cellular asset.
• Issuing ERC-1400/ERC-20 compliant security tokens, called 'Cell Infusion Redemption Tokens.'
• Secured a controlling 51% stake in Xi'an Dong'ao Health Management Co., Ltd. for off-chain infrastructure.

High-quality, safe, and efficient health and medical products.

This is the foundational promise of Shineco, Inc. (SISI) across its established product lines. They focus on improving quality of life through products that meet specific safety and efficacy standards. This includes their work in diagnostics and their core iPSC technology platforms.

The value delivered here is access to:

• Induced pluripotent stem cell (iPSC) technology platforms.
• Innovative rapid diagnostic products and related medical devices for common diseases.
• High-purity physical phospholipids, achieving 97.8% phospholipid content using proprietary extraction technology.

End-to-end R&D system for cutting-edge microalgae-derived extracellular vesicles.

Shineco, Inc. (SISI) is building a full pipeline for this specific technology, moving from the lab bench to potential market application. The subsidiary Xi'an Dong'ao Health Management signed a technology services contract valued at US$8.7 million for this R&D effort. The initial payment for this contract was US$560,000. Honestly, this signals a serious commitment to a specific, advanced therapeutic area.

The R&D system aims to achieve:

• Building a system from basic research to process development and product translation.
• Breaking bottlenecks in large-scale (e.g., hectoliter-scale) separation and extraction processes.
• Developing at least two therapeutic products with full regulatory support.
• The service period for this contract runs from August 25, 2025, to December 31, 2026.

Diversified portfolio including diagnostic medical devices and healthy foods.

Shineco, Inc. (SISI) maintains revenue streams outside of its newer biotech focus. The portfolio includes three main segments: rapid diagnostic products, other agricultural products, and healthy meal products. The acquisition of FuWang Company in March 2025 is specifically intended to boost the medical devices sector, with FuWang projecting revenues of US$11.03 million and net profits of US$1.10 million for 2025. Still, the TTM revenue as of March 31, 2025, was $9.6M, showing the scale of the legacy businesses versus the potential of the new acquisition.

The diversification includes:

• Rapid diagnostic products and related medical devices.
• Healthy and nutritious food products, including healthy meals for people with slow metabolic health.
• Other agricultural products, such as silk and silk fabrics, and fresh fruit trading.

Shineco, Inc. (SISI) - Canvas Business Model: Customer Relationships

You're looking at how Shineco, Inc. (SISI) structures its interactions with different customer groups as of late 2025. It's a mix of high-tech R&D collaboration, straightforward product sales, and service delivery via specialized centers.

Dedicated B2B strategic alliances for joint R&D and technology exchange

Shineco, Inc. is actively forging B2B relationships to advance its biocellular technology platforms. The subsidiary, Xi'an Dong'ao Health Management Co., Ltd. (Dong'ao Health), entered a technology services contract with Xinke Future Biotechnology (Bazhou) Co., Ltd. for the research and development of 'microalgae-derived extracellular vesicles' technology. This contract is valued at US$8.7 million.

The service period for this R&D contract is set from August 25, 2025, to December 31, 2026.

The financial structure of this alliance includes an initial payment of US$560,000 already received, with subsequent payments tied to R&D milestones.

Further solidifying this relationship, a delegation from Singapore's BICC visited Dong'ao Health on September 10, 2025, with parties reaching consensus on establishing a joint laboratory and a technology exchange mechanism.

The R&D objectives include developing at least two therapeutic products with full regulatory support.

Transactional sales for agricultural and food products

For its agricultural and food segments, the relationship is primarily transactional, though revenue figures show significant fluctuation across reporting periods.

For the quarter ending March 31, 2025, Shineco reported revenue of $40.97K, representing a -72.57% change year-over-year.

Contrast this with the quarter ended December 31, 2024, where revenue reached $3,049,171, up from $2,306,902 the prior year, driven by increased sales of other agricultural products.

The cost of revenue for the December 31, 2024, quarter was $2,927,711, which was 96% of sales, compared to 86% in the same quarter of the previous year, due to the lower gross margin on fresh fruits.

The revenue in the last twelve months ending March 31, 2025, totaled $9.60M, marking a 1,133.26% increase year-over-year.

Shineco, Inc. has researched and developed 33 kinds of in vitro diagnostic reagents and related medical devices, and also produces and sells healthy and nutritious foods.

Here's a quick look at recent revenue context:

Service-based relationship at affiliated cell therapy and wellness centers

The service relationship in the biocellular space is evolving into a structured ecosystem model, supported by infrastructure ownership.

Shineco secured a controlling 51% stake in Xi'an Dong'ao Health Management Co., Ltd. on August 18, 2025.

Dong'ao Health specializes in cryogenic cell storage and clinical applications.

The company is implementing a 'Cellular Asset On-Chaining + Application Scenarios' model, where utility tokens can be redeemed at Shineco-affiliated Cell Therapy Centers.

The strategy involves co-establishing stem cell transfusion centers to promote standardized clinical services.

The tokenization framework issues unique non-fungible digital identifiers (NFDIs) for each cellular asset, with tokens programmatically burned upon redemption at these centers.

Direct engagement with non-U.S. investors via private placements

Shineco engages directly with non-U.S. investors to bolster its capital base through unregistered private placements.

On July 2, 2025, Shineco closed a private placement issuing 18,000,000 shares to certain non-U.S. investors at an offering price of $0.75 per share.

This July 2025 transaction generated gross proceeds of $13.5 million before customary expenses.

A prior Securities Purchase Agreement signed on June 20, 2024, involved issuing up to 1,400,000 shares to non-U.S. investors at $5.00 per share.

The June 2024 offering was expected to generate gross proceeds of approximately $7 million.

The shares from the July 2025 placement were sold under Regulation S, exempting them from U.S. Securities Act registration requirements.

The capital raised in the June 2024 transaction was aimed at working capital and corporate purposes.

Here are the key private placement amounts:

• Gross Proceeds (July 2025): $13.5 million
• Shares Issued (July 2025): 18,000,000
• Offering Price (July 2025): $0.75 per share
• Gross Proceeds (June 2024): Approximately $7 million
• Shares Issued (June 2024): Up to 1,400,000

Shineco, Inc. (SISI) - Canvas Business Model: Channels

You're looking at how Shineco, Inc. (SISI) gets its products and services to the customer as of late 2025. It's a mix of direct subsidiary sales, strategic alliances, and a growing international footprint, especially in the biotech space.

Subsidiary distribution networks (e.g., Changzhou Biowin Pharmaceutical)

Changzhou Biowin Pharmaceutical Co., Ltd., a key subsidiary, focuses heavily on its Point-of-Care Testing (POCT) business. Their distribution is segmented by geography for these diagnostic products. They hold significant regulatory approvals that enable this channel structure.

Here's the breakdown of Biowin's POCT product distribution by series and kind:

To support these sales, Biowin has secured 33 Chinese medical device registration certificates. Furthermore, their overseas reach is validated by an EU CE certificate, registration certificates in Australia, Spanish and Thai markets, and a Japanese product filing certificate.

Domestic wellness centers and clinical application facilities

Shineco, through its subsidiary Xi'an Dong'ao Health Management Co., Ltd., is building out its domestic service delivery. This channel relies on integrating its own facilities with partner networks.

• Integration of BICC's network with Dong'ao Health's domestic wellness channels.
• Joint establishment of stem cell transfusion centers to standardize clinical services.
• Inspection of Dong'ao Health's facilities, including its Health and Wellness Center and Cell R&D Center, by strategic partners.

Global agent network, including BICC's 3,000+ agents in Southeast Asia

The alliance with Singapore-based BICC Pte Ltd provides a massive, immediate expansion of Shineco, Inc.'s channel reach, particularly for its advanced therapies and wellness products in Asia. This network acts as extended nodes for service redemption.

The scale of this international channel is substantial:

• BICC's commercial network spans over 3,000 agents across Southeast Asia.
• This network will allow users to complete voucher verification and cell therapy services at BICC's Asian service centers.
• The agreement aims to leverage BICC's strategic presence across Asia, which includes offices in China, Thailand, and Singapore.

Direct sales channels for agricultural and healthy meal products

For its traditional agricultural and newer healthy meal segments, Shineco, Inc. relies on direct sales and significant distribution agreements. The revenue generated from these channels is a core component of the company's top line, though margins can be variable.

Here's a look at the financial scale related to these direct/product sales channels:

The company acknowledges that the cost of revenue for the quarter ending December 31, 2024, was $2,927,711, representing 96% of sales, with the higher ratio attributed to the lower gross margin of fresh fruits sold through these channels.

Shineco, Inc. (SISI) - Canvas Business Model: Customer Segments

Biotechnology and pharmaceutical companies seeking R&D services.

Shineco, Inc. core business encompasses induced pluripotent stem cell (iPSC) technology platforms and extracellular vesicle-derived products, indicating a segment focused on advanced biological research and development services.

The company's total revenue for the quarter ended December 31, 2024, was $3,049,171.

The company had a working capital deficit of $5,961,484 as of December 31, 2024.

Health and wellness consumers for cell therapy and healthy foods.

This segment is served through the Healthy Meals Products segment, which is engaged in developing and selling healthy meals for people with slow metabolic health and those in recovery from metabolic disorders.

Shineco, Inc. also produces and sells healthy and nutritious food.

Hospitals and clinics utilizing in vitro diagnostic medical devices.

Shineco, Inc. has researched and developed 33 in vitro diagnostic reagents and related medical devices to date.

The subsidiary Changzhou Biowin Pharmaceutical Co., Ltd. is engaged in the POCT (Point-of-Care Testing) business.

Biowin has 33 Chinese medical device registration certificates.

The POCT products are divided into 15 series and 45 kinds of products.

Non-U.S. institutional and accredited investors.

The financial filing discusses various financial agreements, including convertible notes and securities purchase agreements with non-U.S. investors.

The company's market capitalization as of the end of day on December 04, 2025, was $180.123K.

The company had 900,614 shares outstanding.

The company reported a gross profit of $121,460 for the quarter ended December 31, 2024.

Cash used in operating activities for the six months ended December 31, 2024, was $2,689,875.

The company's Debt / Equity ratio was 0.45.

The company's Current Ratio was 0.72.

The company's Net Cash Flow (Quarterly) for March 2025 was -$443,428.

Shineco, Inc. (SISI) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Shineco, Inc.'s operations as of late 2025. The cost structure is heavily weighted toward the cost of goods sold, but significant capital deployment is also visible in strategic technology investments and corporate maintenance.

The most immediate cost pressure comes from the core business activities. For the quarter ending December 31, 2024 (reported February 14, 2025), the Cost of Revenue was substantial, hitting $2,927,711. This represented 96% of that quarter's sales, a notable increase from 86% in the prior year's comparable quarter, which the company attributed to the lower gross margin on fresh fruits.

General overhead, while lower than the prior year, still represents a material fixed cost. In that same quarter ending December 31, 2024, General and Administrative expenses totaled $2,663,623, down from $5,591,910 previously, primarily due to a reduction in subscription receivable expenses.

Here's a quick look at some of the key reported costs and financial commitments from 2025:

Shineco, Inc. has been actively investing in its future technology platforms, which translates directly into significant contractual costs. The focus is clearly on high-potential areas like induced pluripotent stem cell (iPSC) technology and microalgae research. For instance, the subsidiary Dong'ao Health signed a technology services contract in September 2025 valued at $8.7 million for the research and development of microalgae-derived extracellular vesicles technology. This contract spans from August 25, 2025, to December 31, 2026, with an initial payment of $560,000 already received.

The company also incurred substantial costs related to inorganic growth. The acquisition of a 75% equity stake in FuWang Company, a medical device specialist, finalized on March 20, 2025. This deal required a commitment of:

• Approximately US$8.8 million in cash.
• Issuance of 3,400,000 Shineco common shares.
• Transfer of the 71.42% equity interest in Dream Partner Limited.

Maintaining a public listing on Nasdaq introduces specific, non-operational costs. While a precise annual compliance budget isn't stated, the need to address listing requirements is evident. Shineco, Inc. executed a 50:1 reverse stock split, effective August 11, 2025, specifically as a measure to comply with Nasdaq Rule 5550(a)(2) regarding the minimum bid price. These actions, including legal and administrative fees associated with such corporate actions, form a recurring part of the cost base.

Shineco, Inc. (SISI) - Canvas Business Model: Revenue Streams

You're looking at the income side of Shineco, Inc. (SISI) as of late 2025, and it's clear the company is trying to pivot its revenue generation toward high-value technology and biotech contracts, though historical product sales still factor in.

The technology services contracts represent a significant near-term booking. Shineco, Inc. announced in September 2025 that its subsidiary signed a technology services contract valued at US$8.7 million with Xinke Future Biotechnology for research on microalgae-derived extracellular vesicles technology. This agreement, which runs through December 31, 2026, included an initial payment of $560,000 already received as of that announcement date. That's a concrete number you can bank on for future recognition.

Historically, and still relevant, revenue comes from product sales across a few distinct areas. The company's operations are detailed as including three main business segments:

• Rapid diagnostic and other products.
• Other agricultural products.
• Healthy meal products.

For context on product sales performance, in the quarter ending December 31, 2024, revenue increased to $3,049,171 from $2,306,902 in the same quarter the prior year, driven mainly by other agricultural products. That was a strong quarter for that segment, definitely.

Revenue from cell therapy and wellness center services is an emerging stream, supported by recent strategic moves. Following a September 2025 site visit by a Singapore-based biotechnology company delegation, the plan involves integrating networks to co-establish stem cell transfusion centers and leveraging the existing Health and Wellness Center and Cell R&D Center. Specific revenue amounts tied directly to these cell therapy or wellness center services aren't broken out in the latest public data I have access to, but the infrastructure is there to generate income.

Here's a quick look at some of the concrete financial figures we have for Shineco, Inc. revenue and related contract milestones:

The most recent reported quarterly revenue figure for Shineco, Inc. is from the third quarter of 2025, which was $40.97K.