Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 48

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 48
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  renamed to “ Beijing ReTo Hengda Technology Co., Ltd.”                
                                                                        
  * On April 10, 2025, Senrui Bochuang (Beijing) Technology Co., Ltd.   
  was renamed to “ Beijing ReTo Hengye Technology Co., Ltd.,”           
 ────────────────────────────────────────────────────────────────────────

  ** On January 29, 2024, the Company registered a new subsidiary in  
  Hong Kong named “ New REIT”                                         
 ──────────────────────────────────────────────────────────────────────

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“ U. S. GAAP”)
and pursuant to the rules and regulations of the Securities Exchange Commission (the “ SEC”).

Principles of Consolidation

The consolidated financial statements include
the financial statements of the Company and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation.

Subsidiaries are those entities in which the Company,
directly or indirectly, controls more than50% of the voting power; or has the power to govern the financial and operating policies, to
appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

Non-controlling interest represents the portion
of the net assets of subsidiaries attributable to interests that are not owned by the Company. The non-controlling interest is presented
in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests’
operating results are presented on the face of the consolidated statements of income and comprehensive income as an allocation of the
total income for the year between non-controlling shareholders and the shareholders of the Company.

F-8

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Use of Estimates

The preparation of financial statements in conformity
with U. S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. These estimates are based on information as of the