Company: SISI
Filing Date: 2025-03-13
Form Type: S-1/A
Source: 0001493152-25-010206
Chunk: 9

Company: SHINECO, INC.
Filing Date: 2025-03-13
Form: S-1/A
Chunk 9
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 Shineco’s subsidiaries and, during the fiscal years ended June 30, 2023 and 2024 and the six months ended December 31, 2023, the former VIEs, transferred to Shineco in the amount of US$0, US$0, US$0, and US$0, respectively. As of the date of this prospectus, none of Shineco and its subsidiaries have the intention to distribute earnings on any corporate level. Shineco’s board of directors has complete discretion on whether to distribute dividends, subject to applicable laws. We intend to keep any future earnings to finance the expansion of our business, and we do not anticipate that any cash dividends will be paid in the foreseeable future. As of the date of this prospectus, none of Shineco’s consolidated subsidiaries has made any transfers of cash, dividends or distributions to Shineco or stockholders of Shineco. See “Prospectus Summary — Asset Transfers and Dividend Distribution Among Shineco, its Subsidiaries, and the Former VIEs,” and our audited consolidated financial statements for the fiscal years ended June 30, 2023 and 2024 and the unaudited consolidated financial statements for the six months ended December 31, 2023 and 2024 incorporated by reference into this prospectus.

Shineco’s PRC subsidiaries are permitted to pay dividends only out of their retained earnings. However, each of Shineco’s PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, after making up for previous year’s accumulated losses, if any, to fund certain statutory reserves, until the aggregate amount of such funds reaches 50% of registered capital. This portion of the respective net assets of Shineco’s PRC subsidiaries are prohibited from being distributed to their stockholders as dividends. However, none of Shineco’s PRC subsidiaries has made any dividends or distributions to Shineco or any U.S. investors as of the date of this prospectus. See “ Risk Factors — Risks Associated with Doing Business in China— We may rely on dividends paid by our subsidiaries for our cash needs, and any limitation on the ability of our subsidiaries to make payments to us could have a material adverse effect on our ability to conduct business” on page 19 of this prospectus. In addition, the PRC government imposes controls on the convertibility of Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China. If the foreign