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Shineco, Inc. Reports Third Quarter of 2018 Financial Results

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Shineco, Inc. Reports Third Quarter of 2018 Financial Results

PR Newswire

BEIJING, May 17, 2018 /PRNewswire/ -- Shineco, Inc. ((", Shineco", or the ", Company", , NASDAQ:TYHT), a producer and distributor of Chinese herbal medicines, organic agricultural produce, specialized textiles, and other health and well-being focused plant-based products in China, announced today its financial results for the third quarter ended March 31, 2018.

Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, Inc., commented, "We are delighted that our increased capital spending in 2017 has translated into increased profitability in 2018. Our business in Xinjiang factory has turned a profit, and our sales in Shandong have remained stable. This is reflected in our financial results. Shineco's gross profit had increased by 102% to $5.26 million, our operating margin had increased by 8.4 percentage points to 29.4%, and our gross margin had increased by 6.7 percentage points to 39.4% compared to the same period of last year."

Mr. Zhang concluded, "The market's response to our Luobuma product line has been immensely positive, as reflected by an impressive sales increase of 388.6% to $5.48 million from $1.12 million from the same period of last year. We are pleased with the recognition from our clients, as we continue to innovate and expand in the future."

Third Quarter of 2018 Financial Highlights


For the Three Months Ended March 31

($ millions, except per share data)

2018


2017


% Change

Revenue

13.34


7.94


68.0%

Luobuma products

5.48


1.12


388.6%

Chinese medicinal herbal products

3.30


3.05


8.3%

Other agricultural products

4.56


3.77


20.9%

Gross profit

5.26


2.60


102.2%

Gross margin

39.4%


32.8%


6.7%

Operating income

3.92


1.67


135.0%

Operating margin

29.4%


21.0%


8.4%

Net income attributable to Shineco

4.55


1.92


136.8%

EPS

0.21


0.09


135.2%

  • Revenues increased by 68.0% to $13.34 million for the three months ended March 31, 2018 from $7.94 million for the same period last year.
  • Gross profit increased by 102.2% to $5.26 million for the three months ended March 31, 2018 from $2.60 million for the same period last year. Gross margin increased by 6.7 percentage points to 39.4% from 32.8% for the same period of last year.
  • Net income attributable to Shineco increased by 136.8% to $4.55 million, or $0.21 per basic and diluted share, for the three months ended March 31, 2018 from $1.92 million, or $0.09 per basic and diluted share, for the same period last year. The increases in net income and earnings per share were primarily due to an increase in gross profit, partially offset by an increase in general and administrative expenses.

Third Quarter of 2018 Financial Results

Revenues

Revenues for the three months ended March 31, 2018 increased by $5.40 million, or 68.0%, to $13.34 million from $7.94 million for the same period of last year, mainly due to increased sales of all products.



For the Three Months Ended March 31



2018


2017

($ millions)


Revenues


COGS


Gross
Margin


Revenues


COGS


Gross
Margin

Luobuma products


5.48


2.36


56.9%


1.12


0.57


49.2%

Chinese medicinal herbal products


3.30


2.56


22.0%


3.05


2.28


24.7%

Other agricultural products


4.56


3.15


31.0%


3.77


2.47


34.4%

Business and sales related taxes


-


0.01


-


-


0.02

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