Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 21

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 million).

On March 20, 2025, Shineco Life entered into a stock
purchase agreement with Yi Yang (the “Seller”), a current and only shareholder of FuWang (HK) International Company Limited
(“FuWang (HK)”), a company limited by shares incorporated in Hong Kong. Pursuant to the agreement, the Seller sold 75% of
the equity interests in FuWang (HK) to Shineco Life (“FuWang Acquisition”). In consideration of the FuWang Acquisition, (a)
Shineco Life paid the Seller RMB 63.89 million in cash, (b) the Company issued and transferred 3,400,000 shares of the Company’s
common stock, par value $0.001 per share to the Seller, and (c) the Company transferred its 71.42% equity interests in Dream Partner to the Seller.
The Company obtained the controlling rights of production and operation of FuWang (HK) on April 1, 2025.

The Company, through its subsidiaries, currently operates
two main business segments: 1) Biowin specializes in the development, production and distribution of innovative rapid diagnostic products
and related medical devices for the most common diseases (“Rapid Diagnostic and Other Products”); and (2) Fuzhou Meida operates
a health-oriented chain restaurant that specializes in developing healthy meals for people with slow metabolic health and those in recovery
from metabolic disorders. Due to the Wintus Acquisition and FuWang Acquisition mentioned above, the Company’s business segments,
that were operated by Tenet-Jove and its subsidiaries, Guangyuan and Zhisheng VIEs which Tenet-Jove is the primary beneficiary of (the
“Tenet-Jove Disposal Group”) and Wintus, are classified as discontinued operations on the Company’s unaudited condensed
consolidated financial statements. These business segments are: 1) Tenet-Jove is engaged in manufacturing and selling Bluish Dogbane and
related products, also known in Chinese as “Luobuma,” including therapeutic clothing and textile products made from Luobuma;
2) Qingdao Zhihesheng and Guangyuan are engaged in planting, processing, and distributing green agricultural produce; (“Agricultural
Products”); 3) Zhisheng Freight is providing domestic and international logistic services (“Freight Services”); and
4) Wintus is engaged in producing, processing and distribution of agricultural products,