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

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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’ subsidiaries that are collateral for the obligations of the VIEs and the VIEs’ subsidiaries and can only
be used to settle the obligations of the VIEs and the VIEs’ subsidiaries.

As the VIEs are incorporated as limited
liability companies under the PRC Company Law, creditors or beneficial interest holders of the VIEs do not have recourse to the general
credit of the Company for any of the liabilities of the VIEs in normal course of business.

There are no terms in any arrangements,
considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial
support to the VIEs and the VIEs’ subsidiaries. However, if the VIEs and the VIEs’ subsidiaries ever need financial support,
the Company or its subsidiaries may, at their option and subject to statutory limits and restrictions, provide financial support to the
VIEs and the VIEs’ subsidiaries through loans to the shareholder of the VIEs and the VIEs’ subsidiaries or entrustment loans
to the VIEs and the VIEs’ subsidiaries.

The carrying amount of the VIEs and their
subsidiaries’ consolidated income information held for discontinued operations were as follows:

 SCHEDULE
OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION

    2024  
    2023  
    2024  
    2023 

    For the six months ended  December 31,  
    For the three months ended  December 31,  

    2024  
    2023  
    2024  
    2023 
  
    Income from operations 
    $-  
    $60,426  
    $-  
    $- 
  
    Net income 
    $-  
    $60,426  
    $-  
    $- 

Non-controlling Interests

U.S. GAAP requires that non-controlling
interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. In addition, the amounts
attributable to the non-controlling interests in the net loss of these entities are reported separately in the unaudited condensed consolidated
statements of income (loss) and comprehensive income (loss).

    10

Risks and Uncertainties

The operations of the Company are located
in the PRC and are subject to special