Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 16

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 December 31, 2008, June 11, 2011, and May 24, 2012,
Tenet-Jove entered into a series of contractual agreements including an Executive Business Cooperation Agreement, a Timely Reporting Agreement,
an Equity Interest Pledge Agreement, and an Executive Option Agreement (collectively, the “VIE Agreements”), with each one
of the following entities, Ankang Longevity Pharmaceutical (Group) Co., Ltd. (“Ankang Longevity Group”), Yantai Zhisheng International
Freight Forwarding Co., Ltd. (“Zhisheng Freight”) and Qingdao Zhihesheng Agricultural Produce Services., Ltd. (“Qingdao
Zhihesheng”). On February 24, 2014, Tenet-Jove entered into the same series of contractual agreements with Shineco Zhisheng (Beijing)
Bio-Technology Co., Ltd. (“Zhisheng Bio-Tech”), which was incorporated in 2014. Zhisheng Bio-Tech, Zhisheng Freight and Qingdao
Zhihesheng are collectively referred to herein as the “Zhisheng VIEs.”

Pursuant to the VIE Agreements, Tenet-Jove had the
exclusive right to provide to the Zhisheng VIEs and Ankang Longevity Group consulting services related to their business operations and
management. All the above contractual agreements obligated Tenet-Jove to absorb a majority of the risk of loss from the Zhisheng VIEs
and Ankang Longevity Group’s activities and entitled Tenet-Jove to receive a majority of their residual returns. In essence, Tenet-Jove
became the primary beneficiary of the operations of the Zhisheng VIEs and Ankang Longevity Group. Therefore, the Zhisheng VIEs and Ankang
Longevity Group were treated as variable interest entities (“VIEs”) under the Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”) 810 “Consolidation.” Accordingly, the accounts of these entities are
consolidated with those of Tenet-Jove.

Since Shineco was effectively controlled by the majority
shareholders of the Zhisheng VIEs and Ankang Longevity Group, Shineco owns 100% of Tenet-Jove. Accordingly, Shineco, Tenet-Jove, and the
VIEs, the Zhisheng VIEs and Ankang Longevity Group were effectively controlled by