Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 132

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 132
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 prevent the misuse of the loans, the Three
Parties orally agreed that the loan would first be transferred by the Plaintiff to
the bank accounts of the Party A, and upon the completion of merger and acquisition project, the Party A would then transfer the loan
to bank accounts designated by Life Science. While this oral agreement was not explicitly stated in the written agreement, the Three
Parties mutually agreed and fully understood their rights and obligations. Upon signing the loan agreement, the Plaintiff
transferred a total of RMB 15.0 million (approximately US$2.1 million) to the Party A. However, the Party A failed to transfer RMB 15.0
million (the “Fund”) to the bank accounts designated by Life Science as agreed, resulting in the failure to proceed with the
merger and acquisition project. On October 31, 2024, the Plaintiff submitted the Civil Complaint
to the Beijing Chaoyang District People’s Court against Life Science and the Party A.
The Civil Complaint requested that Life Science and the Party A make the compensation to
the Plaintiff for the outstanding loans plus interests and the liquidated damages. However, Life Science contended that the Party
A’s unauthorized withholding of the funds constituted a fundamental breach of contract, and the related liability should be borne
by the Party A personally. Life Science will vigorously defend itself and plans to initiate legal proceedings against the Party A, demanding
the return of the Fund to the Plaintiff and compensation for any losses, including the principal
of the loan, interest and other penalty fees. As of March 31, 2025, Life Science
recorded approximately RMB 22.0 million (US$3.0 million) payable due to the Plaintiff, including
the principal of the loan, interest and other penalty fees.

On November 8, 2024, Zhejiang
Shijin Packaging Co., Ltd. (“the Plaintiff”) submitted a civil complaint to the People’s Court of Deqing County, Zhejiang
Province (the “Court”) against the Company’s subsidiary Biowin. The complaint requested that Biowin make the compensation
to the Plaintiff for the outstanding trade payable plus interests and the litigation fee in this case shall be borne by Biowin. On
December 5, 2024, the Court issued a judgement that Biowin shall pay the Plaintiff the outstanding trade payable, the litigation fee,
and the interest expense if payments are not made according to the schedule. As