Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 119

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 119
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 (71.31)%
  
    Healthy meal products 
     -  
     -  
     6,541  
     4.38% 
     (6,541) 
     (100.00)%
  
    Total Amount 
    $40,971  
     100.00% 
    $149,346  
     100.00% 
    $(108,375) 
     (72.57)%

62

For the three months ended March
31, 2025 and 2024, revenue from sales of rapid diagnostic and other products was US$40,971 and US$142,805, respectively, representing
a decrease of US$101,834, or 71.31%. The decrease was mainly due to a decline in orders we received from our customers during the three
months ended March 31, 2025.

For the three months ended March
31, 2025 and 2024, revenue from sales of healthy meal products was US$ nil and US$6,541, respectively, representing a decrease
of US$6,541, or 100.00%. Due to the low market acceptance and high store maintenance cost, we incurred substantial losses in this business
segment. Therefore, the management decided to temporarily suspend healthy meal products business, and revenue from sales of healthy meal
products decreased during the three months ended March 31, 2025.

Cost of Revenue and Related Tax

The following table sets forth the breakdown of the
cost of revenue for the three months ended March 31, 2025 and 2024, respectively:

    Three Months Ended March 31,  
    Variance 

    2025  
    %  
    2024  
    %  
    Amount  
    % 
  
    Rapid diagnostic and other products 
    $54,899  
     99.67% 
    $53,878  
     68.90% 
    $1,021  
     1.90%
  
    Healthy meal products 
     -  
     0.00  
     23,723  
     30.34% 
     (23,723) 
     (100.00)%
  
    Business and sales related tax 
     183  
     0.33% 
     592  
     0.76%