Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 51

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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. Rental income of nil
and US$15,426
was recorded in other income, net from the continuing operations on the unaudited condensed consolidated statements of income loss
and comprehensive loss for the three months ended March 31, 2025 and 2024, respectively. No such lease contract was entered into by
the Company’s discontinued operations during the nine and three months ended March 31, 2025 and 2024.

NOTE 11 - ACQUISITIONS

Acquisition of Guangyuan

On June 8, 2021, Tenet-Jove entered into a Restructuring
Agreement with various parties. Pursuant to the terms of the Restructuring Agreement, (i) the Company transferred all of its rights and
interests in Ankang Longevity to the Shareholders of Yushe County Guangyuan Forest Development Co., Ltd. (“Guangyuan”) in
exchange for the control of 100% of equity interests and assets in Guangyuan; (ii) Tenet-Jove entered a Termination Agreement with Ankang
Longevity and the Ankang Shareholders; (iii) as a consideration to the Restructuring Agreement and based on a valuation report on the
equity interests of Guangyuan issued by an independent third party, Tenet-Jove relinquished all of its rights and interests in Ankang
Longevity and transferred those rights and interests to the Guangyuan Shareholders; and (iv) Guangyuan and the Guangyuan Shareholders
entered into a series of variable interest entity agreements with Tenet-Jove. After signing the Restructuring Agreement, the Company and
the shareholders of Ankang and Guangyuan actively carried out the transferring of rights and interests in Ankang and Guangyuan, and the
transferring was completed subsequently on July 5, 2021. Afterwards, with the completion of all other follow-ups works, on August 16,
2021, the Company, through its subsidiary Tenet-Jove, completed the previously announced acquisition pursuant to the Restructuring Agreement
dated June 8, 2021.

The management determined that July 5, 2021 was the
acquisition date of Guangyuan. The acquisition provides a unique opportunity for the Company to enter the market of planting fast-growing
bamboo willows and scenic greening trees.

The transaction was accounted for in accordance with
the provisions of ASC 805-10, Business Combinations. The Company