Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 190

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 190
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 well as a decrease in staff compensation in relation to the issuance of restricted shares to
the management of approximately US$400,000. The decrease was partially offset by the increased allowance for credit losses and doubtful
accounts of approximately US$888,000.

Selling
Expenses

For
the six months ended December 31, 2024, our selling expenses were US$102,976, representing a decrease of US$29,219, or 22.10%, as compared
to the same period in 2023. The decrease was mainly due to the implementation of cost control measurements, as we reduced the number
of sales personnel and cut down the spending on selling activities during the six months ended December 31, 2024.

Research
and Development Expenses

For
the six months ended December 31, 2024, our research and development expenses were US$39,115, representing a decrease of US$6,801, or
14.81%, as compared to the same period in 2023. The decrease was mainly due to less research and development activities towards products
development during the six months ended December 31, 2024, as we tried to control our costs during the six months ended December 31,
2024.

Gain
from disposal of a subsidiary

On
November 20, 2024, the Company entered into an agreement to transfer 100% equity interests in Chongshi to a third party as payment for
a loan. See Note 8 to our unaudited condensed consolidated financial statements included elsewhere in this Report. The consideration
for this transfer was RMB 8.0 million (approximately US$1.1 million), and the gain from disposal of Chongshi was US$114,945 during the
six months ended December 31, 2024.

54

Other
income, net

Our
net other income remained relatively stable with a slight decrease by $4,788, or 1.74%, from $274,883 for the six months ended December
31, 2023 to $270,095 for the six months ended December 31, 2024.

Amortization
of Debt Issuance and Other Costs

For
the six months ended December 31, 2024, our amortization of debt issuance and other costs expenses was US$335,688, representing a decrease
of US$30,369, or 8.30%, as compared to amortization of debt issuance and