UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ 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 (Stateorotherjurisdictiono ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2019 or ☐ 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 52-2175898 100176 SHINECO, INC. (Exact name of issuer as specified in its charter) Delaware (State or other jurisdiction of ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for March 31, 2019, show a significant decline in revenue and net income, with total assets at $85.3 million and liabilities at $11.6 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2019 | June 30, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $34,032,952 | $31,487,053 | | Accounts receivable, net | $10,926,123 | $15,478,336 | | Total Current Assets | $61,572,950 | $56,164,395 | | Total Assets | $85,329,083 | $83,100,417 | | **Liabilities & Equity** | | | | Total Current Liabilities | $10,887,089 | $9,529,899 | | Total Liabilities | $11,572,274 | $10,226,736 | | Total Equity | $73,756,809 | $72,873,681 | [Condensed Consolidated Statements of Income and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20%28Loss%29) Condensed Consolidated Statements of Income Highlights (Unaudited) | Metric | Nine Months Ended Mar 31, 2019 | Nine Months Ended Mar 31, 2018 | Three Months Ended Mar 31, 2019 | Three Months Ended Mar 31, 2018 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $23,673,611 | $35,282,977 | $7,702,598 | $13,341,281 | | Gross Profit | $6,867,869 | $12,168,024 | $2,356,863 | $5,261,877 | | Income (Loss) from Operations | ($444,687) | $8,114,622 | ($1,378,581) | $3,917,618 | | Net Income (Loss) | $322,957 | $9,353,025 | ($1,066,983) | $4,511,818 | | Net Income (Loss) Attributable to Shineco, Inc. | $274,978 | $9,405,537 | ($1,081,726) | $4,551,902 | | Basic and Diluted EPS | $0.01 | $0.45 | ($0.05) | $0.21 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (Unaudited, Nine Months Ended) | Cash Flow Activity | March 31, 2019 | March 31, 2018 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,439,061 | $5,343,660 | | Net Cash Used in Investing Activities | ($248,800) | ($896,712) | | Net Cash Provided by (Used in) Financing Activities | $1,814,273 | ($445,491) | | Effect of Exchange Rate Change on Cash | ($458,635) | $1,276,201 | | **Net Increase in Cash** | **$2,545,899** | **$5,277,658** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's structure, accounting policies, segment performance, customer concentration risks, and a $6 million legal contingency - The Company operates through a holding company structure with subsidiaries and Variable Interest Entities (VIEs) in the PRC, conducting business across three main segments: Luobuma products, Agricultural Products, and traditional Chinese medicinal herbal products[12](index=12&type=chunk)[15](index=15&type=chunk)[23](index=23&type=chunk) - The Company adopted the new revenue standard ASC 606 on July 1, 2018, using a modified retrospective approach, concluding no significant impact as previous policies were generally consistent[37](index=37&type=chunk) - For the nine months ended March 31, 2019, five customers accounted for approximately **55% of total sales**, and at March 31, 2019, five customers represented approximately **71% of the Company's accounts receivable**, indicating significant customer concentration risk[123](index=123&type=chunk) - The Company is involved in a lawsuit with Bonwick Capital Partners, LLC, alleging breach of agreement and seeking damages up to **$6 million**, which the Company believes are without merit[131](index=131&type=chunk) Segment Revenue (Nine Months Ended March 31) | Segment | 2019 Revenue | 2018 Revenue | | :--- | :--- | :--- | | Luobuma products | $641,877 | $10,411,292 | | Herbal products | $10,050,987 | $10,231,923 | | Other agricultural products | $12,980,747 | $14,639,762 | | **Total** | **$23,673,611** | **$35,282,977** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant decline in financial performance to a 93.8% drop in Luobuma product revenue due to permit delays, increased operating expenses from a $3.9 million bad debt, and an operating loss of $445,000 [Results of Operations for the Nine Months Ended March 31, 2019 and 2018](index=38&type=section&id=Results%20of%20Operations%20for%20the%20Nine%20Months%20Ended%20March%2031%2C%202019%20and%202018) Nine-month revenue decreased 32.9% to $23.7 million, primarily due to a **93.8% decline in Luobuma product sales** from permit delays, leading to a $445,000 operating loss and a 96.6% drop in net income Revenue by Segment (Nine Months Ended March 31) | Segment | 2019 Revenue | 2018 Revenue | Change (%) | | :--- | :--- | :--- | :--- | | Luobuma products | $641,877 | $10,411,292 | (93.83)% | | Chinese medicinal herbal products | $10,050,987 | $10,231,923 | (1.77)% | | Other agricultural products | $12,980,747 | $14,639,762 | (11.33)% | | **Total** | **$23,673,611** | **$35,282,977** | **(32.90)%** | - The primary cause for the revenue decline was a **$9.8 million (93.8%) decrease** in the Luobuma products segment, mainly due to a delay in obtaining a harvesting permit in Xinjiang, resulting in no revenue from the Xinjiang Taihe subsidiary[185](index=185&type=chunk) - General and administrative expenses increased by **$3.8 million (136.4%)**, largely due to a significant rise in bad debt expense of **$3.9 million** and a write-off of offering costs valued at **$434,000** related to a terminated stock purchase agreement[197](index=197&type=chunk) [Results of Operations for the Three Months Ended March 31, 2019 and 2018](index=43&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202019%20and%202018) Third-quarter revenue decreased 42.3% to $7.7 million, primarily due to a **97.6% drop in Luobuma product sales** from permit delays, leading to a $1.4 million operating loss and a $1.1 million net loss Revenue by Segment (Three Months Ended March 31) | Segment | 2019 Revenue | 2018 Revenue | Change (%) | | :--- | :--- | :--- | :--- | | Luobuma products | $131,153 | $5,477,219 | (97.61)% | | Chinese medicinal herbal products | $3,253,083 | $3,303,784 | (1.53)% | | Other agricultural products | $4,318,362 | $4,560,278 | (5.30)% | | **Total** | **$7,702,598** | **$13,341,281** | **(42.26)%** | - The significant decrease in quarterly revenue was driven by a **$5.3 million (97.6%) fall** in the Luobuma products segment, as the delay in obtaining a harvesting permit in Xinjiang prevented revenue generation[210](index=210&type=chunk) - General and administrative expenses for the quarter increased by **$2.6 million (274%)**, primarily due to a **$2.8 million bad debt expense**[223](index=223&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company finances operations through cash flow and equity offerings, with working capital at $50.7 million, and net cash from operating activities at $1.4 million for the nine-month period - In September 2018, the company raised approximately **$1.6 million** in net proceeds from the sale of 1,637,700 shares of common stock at $1 per share[238](index=238&type=chunk) Working Capital | | March 31, 2019 | June 30, 2018 | | :--- | :--- | :--- | | Current Assets | $61,572,950 | $56,164,395 | | Current Liabilities | $10,887,089 | $9,529,899 | | **Working Capital** | **$50,685,861** | **$46,634,496** | - Net cash provided by operating activities decreased to **$1.4 million** for the nine months ended March 31, 2019, down from **$5.3 million** in the prior-year period, mainly due to lower net income and increased advances to suppliers[244](index=244&type=chunk)[245](index=245&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Shineco, Inc. is exempt from providing quantitative and qualitative disclosures about market risk - The company is not required to provide quantitative and qualitative disclosures about market risk because it qualifies as a smaller reporting company[249](index=249&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective due to material weaknesses, including insufficient U.S. GAAP personnel and lack of segregation of duties, with remediation plans underway - Management identified material weaknesses in internal controls, concluding they were not effective[250](index=250&type=chunk) - Specific weaknesses include: - Lack of full-time U.S. GAAP personnel in the accounting department - Lack of segregation of duties for accounting personnel[250](index=250&type=chunk) - Remediation plans involve hiring qualified professionals, improving communication between management and the board, and obtaining proper approvals for non-routine transactions[251](index=251&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company may be involved in routine litigation in the ordinary course of business, with no specific ongoing proceedings detailed in this section - The company is and may become involved in routine litigation and other legal proceedings in the ordinary course of business[255](index=255&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Shineco, Inc. is exempt from providing risk factor disclosures - The company is not required to provide risk factor disclosures because it qualifies as a smaller reporting company[256](index=256&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the quarter, and approximately $1.6 million in net proceeds from a September 2018 offering were used for general corporate purposes - No unregistered sales of equity securities occurred during the quarter ended March 31, 2019[257](index=257&type=chunk) - Net proceeds of approximately **$1.6 million** from the September 2018 registered offering were used for general corporate purposes, including working capital and capital expenditures[258](index=258&type=chunk) [Other Information](index=50&type=section&id=Item%205.%20Other%20Information) No other information is reported for this period - None[259](index=259&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, material contracts, and CEO/CFO certifications

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 December 31, 2018 or ☐ 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 ...