Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 202

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 202
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 attributable to us was US$1,817,740 for the three
months ended December 31, 2024, as compared to a comprehensive loss attributable to us in
the amount of US$4,312,924 for the three months ended December 31, 2023. The decrease in
comprehensive loss was due to the decreased net loss discussed above.

Treasury
Policies

We
have established treasury policies with the objectives of achieving effective control of treasury operations and of lowering cost of
funds. Therefore, funding for all operations and foreign exchange exposure have been centrally reviewed and monitored from the top level.
To manage our exposure to fluctuations in exchange rates and interest rates on specific transactions and foreign currency borrowings,
currency structured instruments and other appropriate financial instruments will be used to hedge material exposure, if any.

Our
policy precludes us from entering into any derivative contracts purely for speculative activities. Through our treasury policies, we
aim to:

(a)
Minimize interest risk

This
is accomplished by loan re-financing and negotiation. We will continue to closely monitor the total loan portfolio and compare the loan
margin spread under our existing agreements against the current borrowing interest rates under different currencies and new offers from
banks.

(b)
Minimize currency risk

In
view of the current volatile currency market, we will closely monitor the foreign currency borrowings at the company level. As of December
31, 2024 and June 30, 2024, except the above-mentioned convertible note, we did not engage in any foreign currency borrowings or loan
contracts.

Liquidity
and Capital Resources

We
currently finance our business operations primarily through  short-term and long-term loans, convertible
notes and the sale of our common stock. Our current cash primarily consists of cash on hand and cash in bank, which is unrestricted as
to withdrawal and use and is deposited with banks in China.

As
of December 31, 2024, we had approximately US$14.0 million in short-term bank loans and US$1.7 million in long-term bank loans outstanding.
We expect that we will be able to renew all of the existing bank loans upon their maturity based on our past experience and outstanding
credit history.

On
June 16, 2021, we entered into a securities purchase agreement pursuant to which we issued an unsecured convertible promissory note with
a one-year maturity term to an institutional accredited investor Streeterville Capital, LLC (“Investor”). The convertible