Company: SISI
Filing Date: 2025-03-13
Form Type: S-1/A
Source: 0001493152-25-010206
Chunk: 3

Company: SHINECO, INC.
Filing Date: 2025-03-13
Form: S-1/A
Chunk 3
---
 stock is listed on the Nasdaq Capital Market under the symbol “SISI”. On February 14, 2025, the closing price of our common stock was US$1.25 per share.

The securities offered by this prospectus involve a high degree of risk. Shineco is a holding company incorporated in Delaware and not a Chinese operating company. As a holding company with no material operations of its own, Shineco conducts a substantial amount of its operations through the operating entities established in the People’s Republic of China (the “PRC” or “China”). We hold equity interests in our subsidiaries and do not currently use a variable interest entity (“VIE”) structure, though we used a VIE structure prior to September 2023.

Investors in our shares of common stock are purchasing equity interest in a Delaware holding company. As used in this prospectus, “we,” “us,” “our company,” or “our” refers to Shineco, Inc., and when describing the consolidated financial results of Shineco, Inc. and its subsidiaries, also includes its subsidiaries (when describing the financial results of Shineco for the fiscal years ended June 30, 2024 and 2023 and the six months ended December 31, 2023, also includes its former variable interest entities (the “former VIEs”) and their operating subsidiaries). Shineco terminated the VIE structure in September 2023 and currently only conducts its business operations through subsidiaries in China.

The securities offered by this prospectus involve a high degree of risk. Shineco is a holding company incorporated in the State of Delaware. As a holding company with no operations of its own, Shineco conducts its operations through operating subsidiaries in China. The Resale Shares offered in this prospectus is the capital stock of Shineco, the Delaware holding company that indirectly holds equity interests in its subsidiaries. Prior to September 2023, Shineco operated its business in China in reliance upon its former VIEs. The VIE structure was used to replicate foreign investment in Chinese-based companies where Chinese law prohibits or restricts direct foreign investment in the operating companies. During the period when the VIE structure was in place, Shineco did not directly hold any equity ownership of the former VIEs. Instead, Shineco received the economic benefits of the former VIEs’ business operations through certain contractual arrangements. Shineco evaluated the guidance in Financial Accounting Standards Board (“FASB”) ASC 810 and concluded that Shineco was the primarily beneficiary of the former V