v3.26.1
DISPOSAL OF SUBSIDIARY
12 Months Ended
Dec. 31, 2025
Disposal Of Subsidiary  
DISPOSAL OF SUBSIDIARY

NOTE 2 – DISPOSAL OF SUBSIDIARY

 

On December 10, 2025, SCHC entered into an equity transfer agreement with Shandong Rongyuan Pharmaceutical Co., Ltd. and SYCI. Pursuant to the agreement, Shandong Rngyuan Pharmaceutical Co., Ltd. agreed to purchase 100% of the equity interest in SYCI for an aggregate consideration of RMB 21.2 million (US$ 2,999,304). The transaction was completed on December 22, 2025. The Company recognized a disposal gain of $674,776, calculated as the difference between consideration received and the carrying value of the subsidiaries’ net assets after adjusting for foreign currency translation.

 

As a result of the disposal, the Company recognized a gain from the disposal of subsidiary amounted of $674,776 during the years ended December 31, 2025. The following table summarizes the total consideration received and assets disposed in the current period:

 

      
Total consideration (sale price)  $2,999,304 
      
Total assets   3,991,526 
Total liabilities   7,554,434 
Total net assets   (3,562,908
Less:Total foreign exchange difference   5,887,436 

Subtotal

   2,324,528 
      
Total gain on disposal of subsidiary  $674,776