Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 47

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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,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 regarding land use rights, land in urban districts is owned by the state,
while land in the rural areas and suburban areas, except otherwise provided for by the state, is collectively owned by individuals designated
as resident farmers by the state. However, in accordance with the legal principle that land ownership is separate from the right to the
use of the land, the government grants the user a “land use right” to use the land. The Company has the land use right to
use the land for 50 years and amortizes the rights on a straight-line basis over the period of 50 years.

SCHEDULE
OF LAND USE RIGHTS

    March 31, 2025  
    June 30, 2024 

    Land use rights 
    $710,143  
    $709,840 
  
    Less: accumulated amortization 
     (108,838) 
     (94,233)
  
    Total land use rights, net 
     601,305  
     615,607 
  
    Less: land use rights, net, held for discontinued operations 
     (601,305) 
     (615,607)
  
    Land use rights, net, held for continuing operations 
    $-  
    $- 

No