Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 32

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 842. The revenue from an operating lease is recognized in other income
(expenses) in the unaudited condensed consolidated statements of loss and comprehensive loss on a straight-line basis over the term of
the lease.

Property and Equipment, Net

Property and equipment are stated at cost, less accumulated
depreciation and amortization. Expenditures for additions, major renewals, and betterments are capitalized, and expenditures for maintenance
and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less estimated residual value, if any,
over an asset’s estimated useful life. Farmland leasehold improvements are amortized over the shorter of lease term or estimated
useful lives of the underlying assets. The estimated useful lives of the Company’s property and equipment are as follows:

 SCHEDULE
OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT

    Estimated useful lives

    Buildings
     
    5-50 years

    Machinery and equipment
     
    3-10 years

    Motor vehicles
     
    5-15 years

    Office equipment
     
    3-10 years

    Farmland leasehold improvements
     
    12-18 years

    Fixture and furniture
     
    3 years

Construction in progress includes property and equipment
in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognized
impairment loss. Construction in progress is classified to the appropriate category of property and equipment when completed and ready
for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their
intended use.

    14

Land Use Rights, Net

According to Chinese laws and regulations regarding
land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided
for by the State, is collectively owned by individuals designated as resident farmers by the State. In accordance with the legal principle
that land ownership is separate from the right to the use of the land, the government grants individuals and companies the rights to use
parcels of land for a specified period of time. Land use rights, which are usually prepaid, are stated at cost less accumulated amortization.
Amortization is provided over the life of the land use rights, using the straight-line method. The useful life is 50 years