Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 209

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 209
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 Zhang Yuying was unable to repay the loan to Guo Weiqing due to shortage of fund. On November 20, 2024, the Company entered
in a supplementary agreement with Zhang Yuying and Guo Weiqing, pursuant to the agreement, the Company agreed to transfer 100%
equity interest of Chongshi to Guo Weiqing or other people designated by him as payment for the loan. The consideration for this
transfer was RMB 8.0 million (approximately US$1.1 million), which will be paid by Zhang Yuying to the Company by June 30,
2025.

The
Company’s subsidiary, Chongqing Wintus (New Star) Enterprises Group, provided a guarantee amounted to US$685,076 for a bank loan
borrowed by Chongqing Yufan Trading Co., Ltd, a related party of the Company until December 28, 2025.

Except
for the above-mentioned guarantee, we have not entered into any other financial guarantees or other commitments to guarantee the payment
obligations of any third parties. In addition, we have not entered into any derivative contracts that are indexed to our own common stock
and classified as stockholders’ equity, or that are not reflected in our unaudited condensed consolidated financial statements.

Cash
Flows

The
following table provides detailed information about our cash flows for the six months ended December 31, 2024 and 2023, respectively:

    Six Months Ended December 31, 

    2024  
    2023 

    Net cash used in operating activities 
    $(2,689,875) 
    $(2,710,877)
  
    Net cash used in investing activities 
     (2,771,606) 
     (13,916,402)
  
    Net cash provided by financing activities 
     5,806,192  
     3,418,468 
  
    Effect of exchange rate changes on cash and cash equivalents 
     7,115  
     229,252 
  
    Net increase (decrease) in cash, cash equivalents and restricted cash 
     351,826  
     (12,979,559)
  
    Cash, cash equivalents and restricted cash, beginning of the period 
     395,036  
     14,166,759 
  
    Cash, cash equivalents and restricted cash, end of the period