Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 45

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 be repaid and the pledge would be released before May 31, 2024. The Company retains the right to
claim full compensation if the property is not released by the due date. On May 24, 2022, Zhang Yuying entered into a loan agreement
with Guo Weiqing for a principal amount of RMB 15,000,000,
with a due date of May 23, 2023. On May 23, 2023, Zhang Yuying entered into a supplementary agreement with Guo Weiqing, wherein the
parties agreed to extend the due date of the principal amount from May 23, 2023 to May 23, 2024, and to provide a mortgage guarantee
for the repayment of the principal amount. On May 23, 2024, Zhang Yuying entered into another supplementary agreement with Guo
Weiqing, wherein the parties agreed to extend
the due date of the principal amount from May 23, 2024 to May 23, 2025, and the real estate property continued to be pledged until
May 23, 2025. As of June 30, 2024, the net book value of the property was US$1,012,381. If Zhang Yuying fails to repay the
loan and the property is executed by the Court, the Company has the right to pursue compensation from Zhang Yuying based on the
market value of the property. However, 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.

In addition, the Company also pledged
certain property and equipment for the Company’s bank loans and its related party’s personal loan (See Note 12 and Note 13).

NOTE 9 - LAND USE RIGHTS, NET

Land use rights are recognized at cost
less accumulated amortization. According to the Chinese laws and regulations