Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 131

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 131
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, 2024, the Company entered in a supplementary agreement with Zhang Yuying and Guo Weiqing, pursuant to the agreement,
the Company agreed to transfer 100% equity interest of Chongshi to Guo Weiqing or other people designated by him as payment for the loan.
The consideration for this transfer was RMB 8.0 million (approximately US$1.1 million), which will be paid by Zhang Yuying to the Company
by June 30, 2025.

The Company’s subsidiary, Chongqing Wintus (New
Star) Enterprises Group, provided a guarantee amounted to US$685,076 for a bank loan borrowed by Chongqing Yufan Trading Co., Ltd, a related
party of the Company until December 28, 2025.

Except for the above-mentioned guarantee, we have
not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition,
we have not entered into any derivative contracts that are indexed to our own common stock and classified as stockholders’ equity,
or that are not reflected in our unaudited condensed consolidated financial statements.

69

On
October 31, 2024, an individual (the “Plaintiff”) file the Civil Complaint
against Life Science and another individual in the Beijing Chaoyang District People’s Court. The 
Plaintiff alleged that the Company entered into a loan agreement with the Plaintiff on April 15, 2024 to borrow RMB 25.0 million
(US$3.4 million) for 90 days with an  annual interest rate of 30%. The Company borrowed
a total of RMB 15.0 million (US$2.1 million) from the Plaintiff, but did not make repayment according to the loan
agreement. 

Introduced by a business
partner (the “Party A”) of Life Science, Life Science entered into a loan agreement with the Plaintiff
on April 15, 2024 (the Party A, Life Science and the Plaintiff are collectively called the “Three
Parties”). Pursuant to the loan agreement, Life Science would obtain a loan in the amount of RMB 25.0 million (approximately
US$ 3.4 million) with a term of 90 days, at the interest rate of 30.0%, and the loan was to be used exclusively as working capital for
Life Science’s future merger and acquisition projects. To