Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 24

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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US GAAP”) for interim financial information pursuant to the rules of the SEC and have been consistently applied.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
have been included. Interim results are not necessarily indicative of results for the full year. These financial statements should be
read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K for the fiscal
year ended June 30, 2024, which was filed on September 30, 2024.

    9

The unaudited condensed consolidated
financial statements include the financial statements of the Company and its subsidiaries, for which the Company is the primary beneficiary,
including the Hong Kong-registered entities and PRC-registered entities owned by the Company. The results of subsidiaries acquired or
disposed of are recorded in the unaudited condensed consolidated income statements from the effective date of acquisition or up to the
effective date of disposal, as appropriate. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than
50% of the voting power, or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors
or to cast a majority of votes at the meetings of the board of directors or to govern the financial and operating policies of the investee
pursuant to a statute or under an agreement among the shareholders or equity holders. However, if the Company demonstrates its ability
to control the VIE through the power to govern the activities that most significantly impact the VIE’s economic performance and
is obligated to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE
that could potentially be significant to the VIE, then the entity is consolidated. All intercompany transactions and balances among the
Company, its subsidiaries, and the VIE have been eliminated upon consolidation.

Consolidation of Variable Interest
Entities

VIEs are generally entities that lack
sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate
decision-making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary
beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes.

There are no consolidated assets of the
VIEs and the VIEs