Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 49

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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2023, respectively.

NOTE 11 - ACQUISITION

Acquisition of Guangyuan

On June 8, 2021, Tenet-Jove entered into
a Restructuring Agreement with various parties. Pursuant to the terms of the Restructuring Agreement, (i) the Company transferred all
of its rights and interests in Ankang Longevity to the Shareholders of Yushe County Guangyuan Forest Development Co., Ltd. (“Guangyuan”)
in exchange for the control of 100% of equity interests and assets in Guangyuan; (ii) Tenet-Jove entered a Termination Agreement with
Ankang Longevity and the Ankang Shareholders; (iii) as a consideration to the Restructuring Agreement and based on a valuation report
on the equity interests of Guangyuan issued by an independent third party, Tenet-Jove relinquished all of its rights and interests in
Ankang Longevity and transferred those rights and interests to the Guangyuan Shareholders; and (iv) Guangyuan and the Guangyuan Shareholders
entered into a series of variable interest entity agreements with Tenet-Jove. After signing the Restructuring Agreement, the Company
and the shareholders of Ankang and Guangyuan actively carried out the transferring of rights and interests in Ankang and Guangyuan, and
the transferring was completed subsequently on July 5, 2021. Afterwards, with the completion of all other follow-ups works, on August
16, 2021, the Company, through its subsidiary Tenet-Jove, completed the previously announced acquisition pursuant to the Restructuring
Agreement dated June 8, 2021.

The management determined that July 5,
2021 was the acquisition date of Guangyuan. The acquisition provides a unique opportunity for the Company to enter the market of planting
fast-growing bamboo willows and scenic greening trees.

The transaction was accounted for in
accordance with the provisions of ASC 805-10, Business Combinations. The Company retained independent appraisers to advise management
in the determination of the fair value of the various assets acquired and liabilities assumed. The values assigned in these financial
statements represent management’s best estimate of fair values as of the Acquisition Date.

As required by ASC 805-20, Business Combinations—Identifiable
Assets and Liabilities, and Any Non-controlling Interest, management conducted a review to reassess whether they identified all the assets