Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 44

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 44
---
 US$377,097 to two third parties for one year, with a maturity date of July 23, 2025 and September 17, 2025, respectively. In addition, the Company also lent a loan amounting to US$41,334 to a third party during the nine months ended March 31, 2025, and the amount is due on demand. The Company periodically reviewed the loans to third parties as to whether their carrying values remain realizable, and the Company recorded allowance according to the Company’s accounting policy based on its best estimates. As of June 30, 2024, the total outstanding balance amounted to US$9,445,164, including principal of US$9,387,269 and accrued interests of US$57,895. As of March 31, 2025, the total outstanding balance amounted to US$10,227,757, including principal of US$9,596,881 and accrued interests of US$630,876. As of March 31, 2025 and June 30, 2024, the allowance for credit losses was US$2,220,494 and US$2,548,557, respectively. The Company’s management will continue putting effort into the collection of overdue loans to third parties.

    2)
    Other receivable are mainly business advances to officers and staffs represent advances for business travel and sundry expenses, as well as advances for services to other third party.

    3)
    The
    amount pertains to prepaid purchase consideration made for the FuWang Acquisition. The Company made a partial payment of the
    consideration during the nine months ended March 31, 2025. The acquisition was completed on May 12, 2025.

    21

Movement of allowance for credit losses is as follows:

 SCHEDULE
OF ALLOWANCE FOR DOUBTFUL ACCOUNTS

    March 31, 2025  
    June 30, 2024 

    Beginning balance 
    $4,656,522  
    $3,287,793 
  
    Acquisition of subsidiaries 
     -  
     36,393 
  
    Charge to (reversal of) expense 
     (330,080) 
     2,248,574 
  
    Less: disposal of VIEs 
     -  
     (610,751)
  
    Foreign currency translation adjustments 
     2,036