Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 85

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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2025, Biowin recorded RMB 121,447 (US$16,733) trade account payable due to the Plaintiff, and
the compensation claimed by the Plaintiff was RMB 54,723 (US$7,540).

On
April 16, 2025, Bank of Jiangsu (“the Plaintiff”) commenced a lawsuit against the Company’s subsidiary, Biowin,
in the Jiangsu Changzhou High-Tech Industrial Development Zone People’s Court. The Plaintiff alleged that Biowin entered into a
loan agreement with the Plaintiff on June 27, 2024, pursuant to which Biowin obtained
a loan in the amount of RMB2,946,000 (US$405,904) with a term from June 27, 2024 to January
20, 2025, at the interest rate of 4.00%. However, Biowin failed to make monthly payment of interests,
the Plaintiff, in accordance with the loan contract terms, declared the loan due and payable in advance. The loan was matured on January
20, 2025, but Biowin had not fulfilled its repayment obligations, therefore, the Plaintiff alleged that Biowin breached the loan agreement
and seek the repayment of the principal, interests, penalty interests and the litigation fee against Biowin. As of March 31, 2025, Biowin
recorded RMB 2,946,000 (US$405,904) loan payable due to the Plaintiff, and the interests
and compensation claimed by the Plaintiff was RMB 254,322 (US$35,041).

NOTE 19 - SEGMENT REPORTING

ASC 280, “Segment Reporting,” establishes
standards for reporting information about operating segments on a basis consistent with the Group’s internal organizational management
structure as well as information about geographical areas, business segments, and major customers in for details on the Group’s
business segments.

The Company’s chief operating decision maker
has been identified as the Chief Executive Officer who reviews the financial information of separate operating segments when making decisions
about allocating resources and assessing performance of the Group. Based on management’s assessment, the Company has determined
that it has following operating segments according to its major products and locations as follows:

    ●
    Developing, manufacturing, and distributing of specialized fabrics, textile products, and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, commonly known as “Bluish Dogbane