Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 59

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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ongqing Wintus (New Star) Enterprises Group (“Chongqing Wintus”) provided a guarantee that amounted to US$685,076
and US$687,999 for a bank loan borrowed by Chongqing Yufan, a related party of the Company until December 28, 2025.

Lease from a related party

The Company entered into a two-year lease
agreement for the lease of office space from a related party company, of which the CEO is the Company’s shareholder.

As of December 31, 2024, the operating
lease right-of-use assets and corresponding operating lease liabilities of leases from the related party were US$40,615 and US$163,929,
respectively.

As of June 30, 2024, the operating lease
right-of-use assets and corresponding operating lease liabilities of leases from the related party were US$80,746 and US$163,306, respectively.

During the six months ended December
31, 2024 and 2023, the Company incurred operating lease expenses in leases from the related party of US$41,799 and US$41,547, respectively.
During the three months ended December 31, 2024 and 2023, the Company incurred operating lease expenses in leases from the related party
of US$20,853 and US$20,819, respectively.

NOTE 13 – LOANS

Short-term loans

Short-term loans from third parties

During the year ended June 30, 2024,
the Company entered into loan agreements with two third parties. These short-term loans from third parties are mainly used for short-term
funding to support the Company’s working capital needs. One of the loans amounting to US$516,811 was borrowed from April 9, 2024
to July 8, 2024 and bear to interest. The loan was fully repaid upon maturity by the Company during the six months ended December 31,
2024. The other loan amounting to US$509,119 was borrowed from June 21, 2024 to August 4, 2024 with an interest rate of 15% per annum,
and the loan is guaranteed by a third party. The Company made partial payment for the other loan, and the balance of US$457,420 was extended
with a new maturity date of December 31, 2025.

The Company recorded interest expenses
from continuing operations of US$48,349 and US$