Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 84

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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ies 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 the 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 a civil complaint to the Beijing Chaoyang District People’s Court against Life
Science and the Party A (the “Civil Complaint”). 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 of March 31,