尚高生命科学美股招股说明书(2022-08-16版)

424B51form424b5.htm FiledPursuanttoRule424(b)(5)RegistrationNo.333-250160 ProspectusSupplement (ToProspectusdatedJune23,2021) Upto$1,758,340ofSharesofCommonStockof Shineco,Inc. Shineco,Inc.(the“Company”or“we”)isofferingupto$1,758,340inshares(“Shares”)ofourcommonstocktooneinvestorunderapurchaseagreemententeredintoonAugust11,2022(the“PurchaseAgreement”)atapersharepurchasepriceof$0.915.DeliveryofthecommonstockofferedherebyandreceiptofthegrossproceedsfromthesaleoftheSharesisexpectedtooccuronoraboutAugust16,2022subjecttothesatisfactionofcertainclosingconditions.See“PurchaseAgreement”beginningonpageS-16ofthisprospectussupplementformoreinformationregardingthesearrangements. OurcommonstockislistedontheNasdaqCapitalMarketunderthesymbol“SISI.”OnAugust11,2022,theclosingpriceofourcommonstockwas$0.988pershare. Thesecuritiesofferedbythisprospectusinvolveahighdegreeofrisks.ShinecoisaholdingcompanyincorporatedinDelaware.Asaholdingcompanywithnomaterialoperationsofitsown,ShinecoconductsasubstantialamountofitsoperationsthroughtheoperatingentitiesestablishedinthePeople’sRepublicofChina(the“PRC”),primarilythevariableinterestentities(the“VIEs”)anditsoperatingsubsidiariesinChina.ShinecodoesnotdirectlyholdanyequityownershipoftheVIEs.Instead,ShinecocontrolsandreceivestheeconomicbenefitsoftheVIEs’businessoperationsthroughcertaincontractualarrangements.ThecommonstockofferedinthisprospectusisthecapitalstockofShineco,theDelawareholdingcompanythatmaintainsseriesofserviceagreementswiththefouroperatingVIEs,andownsmajorityequityinterestintwooperatingsubsidiariesandalloftheequityinterestinoneoperatingsubsidiary.ThecontractualarrangementswithrespecttotheVIEsarenotequivalenttoanequityownershipinthebusinessoftheVIEsbutareusedtoreplicateforeigninvestmentsinChina-basedcompanieswhereChineselawprohibitorlimitdirectforeigninvestmentinChinesecompaniesbelongingtocertaincategories.AnyreferencestocontrolorbenefitsthataccruetoShinecobecauseoftheVIEsarelimitedto,andsubjecttoconditionswehavesatisfiedforconsolidationoftheVIEsunderU.S.GAAP.TheVIEsareconsolidatedforaccountingpurposesbutnoneofthemisanentityinwhichShinecoownsequity.ShinecodoesnotconductanyactiveoperationsandistheprimarybeneficiaryoftheVIEsforaccountingpurposes.YouarenotinvestinginanyofShineco’ssubsidiariesortheVIEsandyoumayneverdirectlyholdequityinterestsinanyofShineco’sChineseoperatingcompanies. Inaddition,thecontractualagreementswitheachofthefourVIEshavenotbeentestedincourtinChinaandthisstructureinvolvesuniqueriskstoinvestors.Forexample,thePRCgovernmentcoulddisallowtheVIEarrangements,whichwouldlikelyresultinamaterialchangeinShineco’sstructureandsignificantchangeinthevalueofthesecuritiesShinecoisregisteringforsale,includingthatitcouldcausethevalueofsuchsecuritiestosignificantlydeclineorbecomeworthless.ForadescriptionofthecorporatestructureandVIEcontractualarrangements,see“CorporateStructure”onPageS-7.Seealso“RiskFactors –RisksRelatedtoourCorporateStructure”onPageS-17.Foradescriptionoftherisksinvolvedin investinginShineco’ssecurities,see“RiskFactors”beginningonpageS-17,inadditiontoriskfactorscontainedintheapplicableprospectussupplement. BecauseofShineco’scorporatestructure,theCompanyissubjecttotherisksduetouncertaintyoftheinterpretationandtheapplicationofthePRClawsandregulations.Asofthedateofthisprospectus,thereisnolaws,regulationsorotherrulesthatrequiretheChinabasedoperatingentitiestoobtainpermissionorapprovalsfromanyChineseauthoritiestolistorcontinuelistingShinecooritsaffiliate’ssecuritiesonU.S.stockexchanges,andnordoesShinecohavereceivedorwasdeniedsuchpermission.However,thereisnoguaranteethatShinecowillreceiveornotbedeniedpermissionfromChineseauthoritiestocontinuelistingonU.S.exchangesinthefuture. ShinecoisalsosubjecttothelegalandoperationalrisksassociatedwithbeingbasedinandhavingthemajorityofitsoperationsinChina.Theseriskscouldresultinmaterialchangesinoperations,oracompletehindranceofShineco’sabilitytoofferorcontinuetoofferitssecuritiestoinvestors,andcouldcausethevalueofShineco’ssecuritiestosignificantlydeclineorbecomeworthless.Recently,thePRCgovernmentinitiatedaseriesofregulatoryactionsandstatementstoregulatebusinessoperationsinChinawithlittleadvancenotice,includingcrackingdownonillegalactivitiesinthesecuritiesmarket,enhancingsupervisionoverChina-basedcompanieslistedoverseasusingvariableinterestentitystructure,adoptingnewmeasurestoextendthescopeofcybersecurityreviews,andexpandingtheeffortsinanti-monopolyenforcement.OnJuly6,2021,theGeneralOfficeoftheCommunistPartyofChinaCentralCommitteeandtheGeneralOfficeoftheStateCounciljointlyissuedanannouncementtocrackdownonillegalactivitiesinthesecuritiesmarketandpromotethehigh-qualitydevelopmentofthecapitalmarket,which,amongotherthings,requirestherelevantgovernmentalauthoritiestostrengthencross-borderoversightoflaw-enforcementandjudicialcooperation,toenhancesupervisionoverChina-basedcompanieslistedoverseas,andtoestablishandimprovethesystemofextraterritorialapplicationofthePRCsecuritieslaws.OnJuly10,2021,thePRCStateInternetInformationOfficeissuedtheMe