Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 60

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 60
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 The amendments are effective for fiscal years beginning after December 15, 2023, and for
interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods
presented in the financial statements. The Company adopted ASU 2023-07 for the year ended December 31, 2024.

The Company’s Chief Executive Officer or chief operating decision-maker
(“ CODM”) reviews the consolidated financial results when making decisions about allocating resources and assessing the performance
of the Company as a whole after the discontinued operation (Note 4) and hence, the Company’s CODM has determined the Company has
one reportable segment and the Company operates and manages its business in the PRC as a single segment. As the Company’s long-lived
assets are substantially all located in the PRC and substantially all of the Company’s revenues are derived from within the PRC,
no geographical segments are presented.

F-16

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Concentrations and Credit Risk

A majority of the Company’s transactions
are denominated in RMB, and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in
RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be
transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“ PBOC”). Remittances
in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies
which require certain supporting documentation in order to affect the remittance.

As of December 31, 2024 and 2023, $665,968and
$57,615of the Company’s cash and cash equivalents was deposited at financial institutions in the PRC. These deposits were insured
per the PRC’s new Deposit Insurance Regulation for up to RMB500,000for one bank.

For the year ended December 31, 2024, two customers
accounted for36% and13% of the Company’s total revenue, respectively. For the year ended December 31, 2023, one customer accounted
for79% of the Company’s total revenue.