SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB

[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

            For Quarter ended March 31, 2005

[_]        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

            For the transition period from __________ to ________________

Commission File No. 0-32307

SHINECO, INC.
(Exact Name of registrant as specified in its charter)

Delaware                                                                      52-2175898
(State or other jurisdiction                                             (IRS Employer ID Number)
of incorporation or organization)                                                                                   

515 Madison Avenue, New York, NY  10022
(Address of principal executive offices)

(212) 755-3631
(Issuer's Telephone Number)

INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED TO BE FILED BY SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.

Yes         X                            No ________

As of August 15, 2005, the issuer had 9,298,823 shares of Common Stock, par value $.001 per share, issued and outstanding.

Forward-Looking Statements

This Form 10-QSB includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated by reference in this Form 10-QSB which address activities, events or developments which the Company expects or anticipates, will or may

occur in the future, including such things as future capital expenditures (including the amount and nature thereof), finding suitable merger or acquisition candidates, expansion and growth of the Company's business and operations, and other such matters are forward-looking statements. These statements are based on certain assumptions and analysis made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results or developments will conform with the Company's expectations and predictions is subject to a number of risks and uncertainties, general economic market and business conditions; the business opportunities (or lack thereof) that may be presented to and pursued by the Company; changes in laws or regulations; and other factors, most of which are beyond the control of the Company. Consequently, all of the forward-looking statements made in this Form 10-QSB are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects on the Company or its business or operations. The Company assumes no obligations to update any such forward-looking statements.

Item 1. Financial Statements and Exhibits

(a) The unaudited financial statements of Registrant for the three months ended March 31, 2005, follow. The financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim period presented.

SHINECO, INC.

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED
MARCH 31, 2005

1

SHINECO, INC.

INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2005

	PAGE
CONSOLIDATED BALANCE SHEET (UNAUDITED)	3
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)	4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)	5
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)	6
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS	7 - 13

2

SHINECO, INC.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

	March 31,
ASSETS	2005
Current assets
Cash and cash equivalents	$           59,034
Trade receivables, net	1,169,243
Other receivables	530,207
Vendor deposits	198,617
Prepaid expenses	32,196
Inventories	2,422,799
Total current assets	4,412,096
Property, plant and equipment, net	105,616
Intangibles, net	19,930
Total assets	$      4,537,642 ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Trade payables	$      1,025,243
Accrued liabilities	98,024
Other payables	1,214,900
Taxes payable	22,884
Customer deposits	373,083
Total current liabilities	2,734,134
Minority interest	91,433
Commitments and contingencies
Stockholders' equity
Preferred stock: par value $.001; 5,000,000 shares authorized;       no shares issued and outstanding	-
Common stock: par value $.001; 25,000,000 shares authorized;       9,298,823 shares issued and outstanding	9,299
Additional paid in capital	1,079,908
Retained earnings	622,868
Accumulated other comprehensive income	-
Total stockholders' equity	1,712,075
Total liabilities and stockholders' equity	$      4,537,642 ===========

See notes to unaudited consolidated financial statements
3

SHINECO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (UNAUDITED)

	Three months ended
	March 31,
	2005	2004
Revenues
Sales revenues	$           797,388	$           922,368
Cost of goods sold	340,631	426,123
Gross profit	456,757	496,245
Operating expenses
Other selling expenses	159,140	157,257
Other general and adminstrative expenses	164,607	84,725
Total operating expenses	323,747	241,982
Net operating income	133,010	254,263
Other income (expense)
Interest expense	(22,461)	-
Other	235	93
Total other income (expense)	(22,226)	93
Income before taxes and minority interest	110,784	254,356
Provision for income taxes	(1,007)	(1,347)
Income before minority interest	109,777	253,009
Minority interest in loss (income) of subsidiaries	138	(364)
Net income	$           109,915 ============	$           252,645 ============
Foreign currency translation adjustment	-	-
Comprehensive income	$           109,915 ============	$           252,645 ============

See notes to unaudited consolidated financial statements
4

SHINECO, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
FOR THE PERIOD FROM JANUARY 1, 2005 TO MARCH 31, 2005

			Additional		Other
	Common Stock		Paid In	Retained	Comprehensive
	Shares	Amount	Capital	Earnings	Income (Loss)	Total
Balance January 1, 2005	18,597,640	$             18,598	$        1,070,609	$           512,953	$                      -	$        1,602,160
						-
Retroactive effect of 1:2 reverse stock split	(9,298,817)	(9,299)	9,299	-	-	-
Net income for the period	-	-	-	109,777	-	109,777
Net loss - minority interest	-	-	-	138	-	138
Balance March 31, 2005	9,298,823 ============	$               9,299 ============	$        1,079,908 ============	$           622,868 ============	$                      - ============	$        1,712,075 ============

See notes to unaudited consolidated financial statements
5

SHINECO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

		Three months ended
		March 31,
		2005	2004
Cash flows from operating activities:
	Net income	$       109,915	$       252,645
	Adjustments to reconcile net loss to
	net cash provided by operations:
	Depreciation and amortization	5,863	8,933
	Minority interest	(138)	364
	Changes in operating assets and liabilities:
	Trade receivables	44,691	(630,330)
	Other receivables	(143,612)	(171,928)
	Vendor deposits	(69,011)	(139,517)
	Prepaid expenses	24,275	(5,435)
	Inventories	(117,289)	(1,079,270)
	Trade payables	(13,667)	498,541
	Accrued liabilities	64,949	12,909
	Other payables	1,019,333	1,142,948
	Taxes payable	(64,651)	189,008
	Customer deposits	(36,862)	-
	Net cash provided by operations	823,796	78,868
Cash flows from investing activities:
	Purchase of property and equipment	(5,870)	(87,347)
	Net cash provided by investing activities	(5,870)	(87,347)
Cash flows from financing activities:
	Paid in capital	-	1,281,831
	Related party receivables	79,046	(63,960)
	Related party payables	(588,201)	(53,536)
	Repayments on short-term notes payable	(314,009)	-
	Net cash provided by financing activities	(823,164)	1,164,335
	Effect of rate changes on cash	-	-
	Increase (decrease) in cash and cash equivalents	(5,238)	1,155,856
	Cash and cash equivalents, beginning of period	64,272	4,454
	Cash and cash equivalents, end of period	$         59,034	$    1,160,310
Supplemental disclosures of cash flow information:
	Cash paid for interest	$         22,461	$                 -
	Cash paid for income taxes	$         65,658	$                 -
Supplemental disclosures of non-cash investing and financing activities:
	Stock issued for services	$                 -	$                 -
	Inventory and intangibles acquired in business combination	$                 -	$                 -

See notes to unaudited consolidated financial statements
6

SHINECO, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

QUARTERLY FINANCIAL STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-QSB but do not include all of the information and footnotes required by generally accepted accounting principles and should, therefore, be read in conjunction with the Company’s 2004 financial statements in Form 10-KSB. These statements do include all normal recurring adjustments, which the Company believes necessary for a fair presentation of the statements. The interim operating results are not necessarily indicative of the results for a full year.

1.      NATURE OF OPERATIONS

Shineco, Inc. (the Company) was incorporated on August 20, 1997 in the State of Delaware as Supcor, Inc.. On December 30, 2004 the Company acquired all of the outstanding stock of Beijing Tenet Jove Technological Development Co., Ltd. in exchange for stock of the Company. The Company changed its name to Shineco, Inc. on May 18, 2005. The consolidated results of operations are primarily those of Beijing Tenet Jove and its consolidated subsidiaries.

Beijing Tenet Jove Technological Development Co., Ltd. (Beijing Tenet Jove) was incorporated on December 16, 2003 under the laws of the People’s Republic of China (the PRC). The Company primarily manufactures and sells clothing and related products, using natural, health conducive materials.

2.      BASIS OF PRESENTATION

The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and have been retroactively restated to give effect to the recapitalization due to a reverse merger consummated on December 30, 2004. This basis differs from that used in the statutory accounts of the Company, which were prepared in accordance with the accounting principles and relevant financial regulations applicable to enterprises in the PRC. All necessary intercompany transactions and balances have been eliminated in consolidation, and all necessary adjustments have been made to present the consolidated financial statements in accordance with US GAAP.

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. The Company’s subsidiaries at March 31, 2005 are as follows:

Subsidiary name	Date established	Date merged	Percentage owned
Tian Yi Hua Tai, Tianjin	August 12, 2003	April 27, 2004	90%
Nan Jing	February 13, 2004	February 13, 2004	51%
QiQiHaer	January 14, 2004	January 14, 2004	55%

7

SHINECO, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ECONOMIC AND POLITICAL RISKS

The Company faces a number of risks and challenges as a result of having primary operations and markets in the PRC. Changing political climates in the PRC could have a significant effect on the Company’s business.

ESTIMATES

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

CASH AND CASH EQUIVALENTS

For purposes of the statements of cash flows, cash and cash equivalents includes cash on hand and demand deposits held by banks. None of the Company’s deposits are insured by the Federal Deposit Insurance Corporation or any other entity of the U.S. government.

TRADE ACCOUNTS RECEIVABLE

Trade accounts receivable are recognized and carried at original invoice amount less an allowance for any uncollectible amounts. An allowance for doubtful accounts is made when collection of the full amount becomes questionable. The allowance for doubtful accounts was $165,766 and $0 at March 31, 2005 and 2004, respectively.

INVENTORIES

Inventories consist of raw materials, packaging materials, sub-contracting materials, production costs, and finished products.  The inventories are valued at the lower of cost (first-in, first-out method) or market.  Impairment and changes in market value are evaluated on a per item basis.

8

SHINECO, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

INVENTORIES (Continued)

If the cost of the inventory exceeds the market value evaluation based on total inventory, provisions are made for the difference between the cost and the market value.  Provision for potential obsolete or slow moving inventory is made based on analysis of inventory levels, age of inventory and future sales forecasts.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is carried at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the useful lives of the assets. Amortization of leasehold improvements is calculated on a straight-line basis over the life of the asset or the term of the lease, whichever is shorter.  Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are charged to expense as incurred.  Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in income.  Depreciation related to property and equipment used in production is reported in cost of sales.  Property and equipment are depreciated over their estimated useful lives as follows:

               Machinery and equipment               10 years
               Vehicles                                         7 years
               Office equipment                            7 years

Long-term assets of the Company are reviewed annually to assess whether the carrying value has become impaired, according to the guidelines established in Statement of Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” The Company also evaluates the periods of amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. No impairment of assets was recorded in the periods reported.

REVENUE RECOGNITION

Revenues are recognized as earned when the following four criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the seller's price to the buyer is fixed or determinable; and (4) collectibility is reasonably assured.

9

SHINECO, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

ADVERTISING EXPENSE

Advertising costs are expensed as incurred.

FOREIGN CURRENCY AND COMPREHENSIVE INCOME

The accompanying consolidated financial statements are presented in United States (US) dollars. The functional currency is the Renminbi (RMB). The consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

The exchange rate for RMB to US dollars has varied by only 100ths during 2004 and 2005. Thus, the consistent exchange rate used has been 8.28 RMB per each US dollar. Since there have been no greater fluctuations in the exchange rate, there is no gain or loss from foreign currency translation and no resulting other comprehensive income or loss.

RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.

TAXES

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain.

Currently, the Company has recorded no income taxes and no deferred taxes because it is a high-tech company registered in Chinese Zhongguancun Science Park. In China, high-tech companies are encouraged to promote their technologies to the market, so the Company is exempted from income tax for its first three years.

10

SHINECO, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

EARNINGS PER SHARE

Basic earnings per common share ("EPS") is calculated by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares, assuming conversion of all potentially dilutive securities, such as stock options and warrants.

The numerator and denominator used in the basic and diluted EPS of common stock computations are presented in the following table:

	Three months ended March 31,
	2005	2004
NUMERATOR FOR BASIC AND DILUTED EPS
Net income to common stockholders	$           109,915 ============	$           252,645 ============
DENOMINATOR FOR BASIC EPS
Weighted average shares of common stock outstanding	9,298,823 ============	9,298,823 ============
EPS - Basic	$                 0.01 ============	$                 0.03 ============
DENOMINATOR FOR FULLY DILUTED EPS
Weighted average common shares and warrants outstanding	9,638,823 ============	9,298,823 ============
EPS - Fully diluted	$                 0.01 ============	$                 0.03 ============

11

SHINECO, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

4.      BUSINESS COMBINATIONS

On September 22, 2000, Tian Bai was incorporated in the PRC to manufacture and sell clothing and related products. On December 16, 2003 Beijing Tenet Jove was incorporated in the PRC and purchased a 51% interest in Tian Bai, beginning a parent subsidiary relationship. Beijing Tenet Jove intended to add other companies to its holdings, and operated Tian Bai as a consolidated subsidiary. Tian Bai was subsequently sold.

On January 12, 2004, Haer Bin was incorporated in the PRC, as a 51% owned subsidiary of Beijing Tenet Jove, and on January 14, 2004, QiQiHaer was established in the PRC as a 55% owned subsidiary of Beijing Tenet Jove. On February 13, 2004 another 51% subsidiary was formed by the name of Nan Jing, also in the PRC.

Tian Yi Hua Tai, Tianjin (Tianjin) was incorporated in the PRC on August 12, 2003 as a manufacturer of clothing and related products. On April 27, 2004 Tianjin merged into Beijing Tenet Jove, becoming a 90% subsidiary. The Company received primarily inventory and manufacturing patents in exchange for issuance of its registered capital. The merger was accounted for using the purchase method.

On July 27, 2004, Beijing Tenet Jove sold all of its equity interest in Haer Bin, and on October 18, 2004 Beijing Tenet Jove sold all of its equity interest in Tian Bai. In aggregate, the Company recognized gains of $80,945 on the sales of these subsidiaries during 2004.

On November 4, 2004, owners of Beijing Tenet Jove acquired a controlling interest in the Company from its previous stockholders. On December 30, 2004, the Company issued 13,600,000 (6,800,000 adjusted for 1:2 reverse split) shares of its common stock in exchange for 100% of the outstanding registered capital of Beijing Tenet Jove. Beijing Tenet Jove is treated as the accounting acquirer in a reverse merger. Consequently, these financial statements reflect the accounts and operations of Beijing Tenet Jove, with the adopted capital structure of the Company retroactively restated.

5.      INTANGIBLES

Intangibles consist primarily of manufacturing patent rights, acquired in the business combination with Tianjin. They are determined to have a finite life of 15 years and are being amortized straight line over that period.

12

SHINECO, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

6.      CUSTOMER DEPOSITS

Customer deposits at March 31, 2005 consist of $373,083 in prepayments to the Company for merchandise that had not yet been shipped. The Company will recognize the deposits as revenue as customers take delivery of the goods, in compliance with its revenue recognition policy.

7.      STOCK WARRANTS

Pursuant to the Stock Purchase Agreement executed in conjunction with the reverse merger of the Company and Beijing Tenet Jove, a warrant for 5% of the outstanding stock of the Company was issued to the selling stockholders, exercisable at par value, and expiring on December 12, 2005. Certain information regarding outstanding and exercisable warrants is summarized as follows:

Exercise Price	Number Outstanding	Weighted Average Exercise Price	Weighted Average Life - Years
$0.001	340,000	$0.001	1

8.      SUBSEQUENT EVENTS

On April 12, 2005 the Company effected a 1:2 reverse stock split. Fractional shares were rounded up to the nearest whole share. Prior to the split 18,597,640 shares were issued and outstanding. Subsequent to the split 9,298,823 shares were issued and outstanding.

On May 18, 2005 the Company amended its articles of incorporation to change the name of the Company from Supcor, Inc. to Shineco, Inc.

13

Item 2.  Management’s Discussion and Analysis or Plan of Operation

The following discussion relates to the results of our operations to date, and our financial condition: This report contains forward looking statements relating to our Company's future economic performance, plans and objectives of management for future operations, projections of revenue mix and other financial items that are based on the beliefs of, as well as assumptions made by and information currently known to, our management. The words "expects, intends, believes, anticipates, may, could, should" and similar expressions and variations thereof are intended to identify forward-looking statements. The cautionary statements set forth in this section are intended to emphasize that actual results may differ materially from those contained in any forward looking statement.

The following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes thereto and other financial information contained elsewhere in this Form 10-KSB.

OVERVIEW

Shineco, Inc. (the “Company, we”) was incorporated under the laws of the State of Delaware on August 20, 1997.  On December 30, 2004, the Company acquired all of the issued and outstanding shares of Beijing Tenet-Jove Technological Development Corp., Ltd. (“Tenet-Jove”) a People’s Republic of China company in exchange for restricted shares of the Company’s common stock, and the sole operating business of the Company became that of its subsidiary, Tenet-Jove.

Tenet-Jove currently develops, manufactures and distributes apocynum fiber and food products in the growing China through its national marketing network. Apocynum products are specialized fabric and food products designed to incorporate traditional Eastern medicines with modern scientific and developed health products predicated on well-established Eastern herbal remedies based on apocynum raw material.  The Company refers to its technology as "Infrared." The working of the product is analogous to a nicotine patch in that the clothes manufactured with the Company's apocynum fabrics are impregnated with the product which is then absorbed through the wearer's skin.

Tenet-Jove was established in 2003 and is headquartered in Beijing, People’s Republic of China.  In today’s maturing and aging society people are looking for new ways to improve fitness levels so that they can continue to live a comfortable and healthy life.  Tenet-Jove aims to establish and offer a new value called “health-building”, moving forward from the conventional concept of health maintenance. Drawing on Tenet-Jove's core competence in bio-information sensing and health management technology, we offer the best possible solutions and products to support the prevention and treatment of lifestyle-induced diseases.

Operating in the booming healthcare marketplace, we have established a number of initiatives and strategies that combine customer sensitivity with product innovation. Our mission is, through our advanced and high-quality healthcare products, to provide our customers with suggestions and solutions for health improvement.

14

Our discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure or contingent liabilities. We base these estimates on our historical experience and on various other assumptions that we believe to be reasonable under the circumstances, and these estimates form the basis for our judgments concerning the carrying values of assets and liabilities that are not readily apparent from other sources. We periodically evaluate these estimates and judgments based on available information and experience. Actual results will differ from our estimates under different assumptions and conditions. If actual results significantly differ from our estimates, our financial condition and results of operations could be materially impacted.

We believe that the accounting policies described below are critical to understanding our business, results of operations and financial condition because they involve more significant judgments and estimates used in the preparation of our consolidated financial statements. An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact our consolidated financial statements. We have discussed the development, selection and application of our critical accounting policies with the audit committee of our board of directors, and our audit committee has reviewed our disclosure relating to our critical accounting policies in this "Management's Discussion and Analysis or Plan of Operations."

Results of operations

We are a healthcare product manufacturer and health solution provider in the PRC. We principally develop, manufacture, and distribute healthcare products through our national sales and services network to our customers in the PRC.

Our healthcare business is comprised of research, development and application of “health-building” technology. 

Since the establishment of Tenet Jove in 2003, we have gradually developed a series of products and established a nation-wide marketing network.

The  Company’s revenues for the quarter ended March 31, 2005 and 2004 were $797,388.00 and $922,368.00 respectively. The Company's selling, general and administrative expenses for the quarter ended March 31, 2005, were $323,747.00 and for the quarter ended March 31, 2004, were $241,982.00.

Our operating results are presented on a consolidated basis for the quarter ended March 31, 2005, as compared to the quarter ended March 31, 2004.

15

	2005-3-31		2004-3-31
	Amount	Percentage of revenue	Amount	Percentage of revenue	Growth in amount	Increase in percentage (%)
	US$	(%)	US$	(%)	US$
Revenues
Sales revenues	797,388.00		922,368.00		(124,980.00)	(0.14)
Cost of goods sold	340,631.00	42.72%	426,123.00	46.20%	(85,492.00)	(0.20)
Gross profit	456,757.00	57.28%	496,245.00	53.80%	(39,488.00)	(0.08)
				0.00%	0.00
Operating expenses				0.00%	0.00
Other selling expenses	159,140.00	19.96%	157,257.00	17.04%	1,883.00	0.01
Other general and adminstrative expenses	164,607.00	20.64%	84,725.00	9.19%	79,882.00	0.94
Total operating expenses	323,747.00	40.60%	241,982.00	26.23%	81,765.00	0.34
		0.00%		0.00%	0.00
Net operating income	133,010.00	16.68%	254,263.00	27.57%	(121,253.00)	(0.48)
		0.00%		0.00%	0.00
Other income (expense)		0.00%		0.00%	0.00
Interest expense	(22,461.00)	-2.82%	0.00	0.00%	(22,461.00)

Other	235.00	0.03%	93.00	0.01%	142.00	1.53
Total other income (expense)	(22,226.00)	-2.79%	93.00	0.01%	(22,319.00)	(239.99)
		0.00%		0.00%	0.00
Income before taxes and minority interest	110,784.00	13.89%	254,356.00	27.58%	(143,572.00)	(0.56)
				0.00%	0.00
Provision for income taxes	(1,007.00)	-0.13%	(1,347.00)	-0.15%	340.00	(0.25)
		0.00%		0.00%	0.00
Income before minority interest	109,777.00	13.76%	253,009.00	27.43%	(143,232.00)	(0.57)
		0.00%		0.00%	0.00
Minority interest in loss (income) of subsidiaries	138.00	0.02%	(364.00)	-0.04%	502.00	(1.38)
		0.00%		0.00%	0.00
Net income	109,915.00	13.78%	252,645.00	27.39%	(142,730.00)	(0.56)
		0.00%		0.00%	0.00
Foreign currency translation adjustment	0.00	0.00%	0.00	0.00%	0.00
		0.00%		0.00%	0.00
Comprehensive income	109,915.00	13.78%	252,645.00	27.39%	(142,730.00)	(0.56)

REVENUES

Our sales revenue for the quarter ended March 31, 2005 was $797,388.00, representing a decrease of 14% from the previous year. We derive our sales revenues primarily from

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sales of our products.  Our operating revenues are composed of sales of healthcare products and franchising fees from vendors. Those decreases were mainly attributable to the government rules and regulations for overall market; conforming the policies change, we slightly lowered sales prices that hereby caused a reduction to the sales revenues. In addition, we were rearranging our nation-wide markets and the new adjustments also caused sales revenue to  decrease temporarily, while the arrangement signals a great increase whenever the adjustments have been done.

We believe that revenues will increase in the next several years as a result of planned expansion of production and anticipated increased sales.

GROSS PROFIT MARGIN

Our gross margin on sales was 57.28% in the quarter ended March 31, 2005 compared to 53.80% in the same period of 2004. Our gross margin slightly decreased in 2005 as compared to the previous year. Our sales prices slightly decreased and raw material cost increased, which resulted in gross margin decreasing slightly. Though our gross margin decreased, our gross margin was a high rate in the industry.   

NET INCOME

Our consolidated net income decreased 56.49% to $109,915.00 for the quarter ended March 31, 2005 as compared to $252,645.00 for the same period of 2004. This decrease is attributable to a decrease in revenues of 13.55% in the first quarter of 2005 as compared to the same quarter in 2004. Expenses for market reorganization increased since we began to reorganize nation-wide market. Our listing expenses also increased significantly.  

LIQUIDITY AND SOURCES OF CAPITAL

We generally finance our operations from cash flow generated internally and customer deposits. As of March 31, 2005, the Company had current assets of $4,412,096.00, current liabilities of $2,734,134.00, working capital of $1,677,962, and shareholders’ equity of $1,712,075.

Our operations provided net cash of $823,796 for the quarter ended March 31, 2005. At March 31, 2005, cash and cash equivalents were $ 59,034. Working capital was $1,677,962 at March 31, 2005, reflecting a current ratio of 1.61:1 compared to 2.83:1 for March 31, 2004. Our current ratio for the quarter ended March 30, 2005 declined slightly compared to that of the previous year.

We anticipate that our working capital resources are adequate to fund anticipated costs and expenses for the remainder of 2005.

As of March 31, 2005, our cash and bank balances were mainly denominated in Renminbi (“RMB”) and United States dollars (“US$”) while our bank borrowings were mainly denominated in RMB.  Our revenue and expenses, assets and liabilities are mainly denominated in RMB and US$. Since the exchange fluctuations amongst these currencies are low, we believe there is no significant exchange risk.

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Management believes the Company's working capital is currently sufficient for the Company to implement its business plan and that its income from current operations will be sufficient for its liquidity needs.

FOREIGN CURRENCY AND COMPREHENSIVE INCOME

The accompanying consolidated financial statements are presented in United States (US) dollars. The functional currency is the Renminbi (RMB). The consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

The exchange rate for RMB to US dollars has varied by only 100ths during 2004 and 2005. Thus, the consistent exchange rate used has been 8.28 RMB per each US dollar. Since there have been no greater fluctuations in the exchange rate, there is no gain or loss from foreign currency translation and no resulting other comprehensive income or loss.

RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.

OPERATING EXPENSES

For the quarter ended March 31, 2005, operating and general and administrative expenses were $323,747.00 as compared to $241,982.00 for the three months ended March 31, 2004, an increase of $81,765.00.

OVERALL

The Company reported  net income for the quarter ended March 31, 2005 of $109,915 compared to net income for the quarter ended March 31, 2004 of $252,645.  This translates to earnings per-share of $.01 for the three months ended March 31, 2005, compared to earnings per share of $.03 for the three months ended March 31, 2004.

Sources of Capital

As of March 31, 2005, the Company had cash on hand of $59,034.  Management believes it will have the resources available to maintain its current business operation as a result of continued sales of its product.  As of March 31, 2005, the Company had working capital of $1,677,962.

ITEM 3.  Controls and Procedures

We carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the

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effectiveness of the design and operation of our disclosure controls and procedures pursuant to Securities Exchange Act rules 13a-15(e) and 15d-15(e). Based upon that evaluation, the Chief Executive office and Chief Financial Officer concluded that our disclosure controls and procedures as of March 31, 2005 are effective in timely alerting them to material information relating to the Company required to be included in our periodic SEC filings. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.


PART II

Item 6. Exhibits and Reports on Form 8-K

(a) The exhibits required to be filed herewith by Item 601 of Regulation S-B, as described in the following index of exhibits, are incorporated herein by reference, as follows:

Exhibit No.       Description

3.1                   Articles of Incorporation of Supcor, Inc. (1)
3.1(a)               Articles of Amendment to Articles of Incorporation (2)
3.1 (b)              Articles of Amendment to the Articles of Incorporation (3)
3.2                   By-Laws of SupcorInc. (1)
31.1                 Certification under Section 302 of the Sarbanes-Oxley Act of 2002
31.2                 Certification under Section 302 of the Sarbanes-Oxley Act of 2002
32.1                 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2                 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

(1)        Incorporated by reference from the Form 10-SB filed by the Company on August 24, 2004

(2)        Incorporated by references from the Form 10-SB/A filed by the Company on October 7, 2004.

(3)        Incorporated by reference from the Form 10-KSB  filed by the Company on July 25, 2005

(b)        The Company did not file any reports on Form 8-K during the quarter ended March 31, 2005

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SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated:  August 24, 2005

SHINECO, INC.


/s/ Yuying Zhang
_______________________________
Yuying Zhang, President


/s/ Lin Wen
__________________________________
Lin Wen, Secretary

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