Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 25

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 8
Chunk 25
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Current PRC regulations permit our PRC subsidiaries to pay dividends to Sunoro Holdings only out of their accumulated profits, if any,
determined in accordance with PRC accounting standards and regulations. In addition, each of our subsidiaries in China is required to
set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered
capital. Our PRC subsidiaries are also required to further set aside a portion of its after-tax profits to fund the employee welfare fund,
although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves
can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective
companies, the reserve funds are not distributable as cash dividends except in the event of liquidation. Our subsidiaries in China are
required to set aside statutory reserves and have done so.

In addition, pursuant to the
EIT Law and its implementation rules, dividends generated and distributed to us by ReTo Hengda, Dirong or Melody is subject to withholding
tax at a rate of 10% unless otherwise exempted or reduced according to treaties or arrangements between the PRC central government and
governments of other countries or regions where the non-PRC-resident enterprises are incorporated.

Under existing PRC foreign
exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service-related
foreign exchange transactions, can be made in foreign currencies without prior approval of the State Administration of Foreign Exchange,
or SAFE, by complying with certain procedural requirements. Specifically, under the existing exchange restrictions, without prior approval
of SAFE, cash generated from the operations in China may be used to pay dividends to our company. See“ Item 4. Information on
the Company - B. Business Overview - Regulation - Regulation of Foreign Currency Exchange and Dividend Distribution.”

  Significant Changes.  
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Except as otherwise disclosed
in this annual report, we have not experienced any significant changes since the date of our audited consolidated financial statements
included herein.

Item 9. The Offer and Listing