Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 177

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 177
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 made or to reflect the occurrence of unanticipated events. In addition,
we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking statements. Nonetheless, we reserve the right to make such updates
from time to time by press release, periodic report, or other method of public disclosure without the need for specific reference to this
Quarterly Report. No such update shall be deemed to indicate that other statements not addressed by such update is incorrect or create
an obligation to provide any other updates.

The information included in this Management’s
Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited condensed consolidated
financial statements and the notes included in this Quarterly Report, and the audited consolidated financial statements and notes and
Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report. All monetary
figures are presented in U.S. dollars, unless otherwise indicated.

51

General Overview

Shineco, Inc. is a holding company incorporated in
Delaware. Prior to the following acquisition and the termination of the VIE structure, as a holding company with no material operations
of our own, we conducted a substantial majority of our operations through the operating entities established in the People’s Republic
of China, or the PRC, primarily the variable interest entities (the “VIEs”). We did not have any equity ownership of the VIEs,
instead we received the economic benefits of the VIEs’ business operations through certain contractual arrangements. Our common
stock that currently listed on the Nasdaq Capital Markets are shares of our Delaware holding company. The Chinese regulatory authorities
could disallow our structure, which could result in a material change in our operations and the value of our securities could decline
or become worthless.

On December 30, 2022, Shineco Life Science Group Hong
Kong Co., Limited (“Shineco Life”), a company established under the laws of Hong Kong and a wholly owned subsidiary of the
Company, closed the acquisition of 51% of the issued equity interests of Changzhou Biowin Pharmaceutical Co., Ltd. (“Biowin”),
a company established under the laws of China, pursuant to the previously announced stock purchase agreement, dated as of October 21,
2022, among Beijing Kanghuayuan Medicine Information Consulting Co., Ltd., a company established under the laws of China (“Seller