Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 24

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 8
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Item 8. Financial Information

  Consolidated Statements and Other Financial Information.  

The financial statements required by this item
may be found at the end of this report on 20-F, beginning on page F-1.

Legal and Administrative Proceedings

In the ordinary course of
business, the Company is from time to time involved in legal proceedings and litigation that are generally contractual in nature.

Except as disclosed above,
we are currently not a party to any material legal or administrative proceedings and we are not aware of any material legal or administrative
proceedings threatened against us. We may from time to time be subject to various legal or administrative proceedings arising in the ordinary
course of business.

Dividend Policy

Holders of our Class B Shares
are not entitled to receive dividends, and We have never declared or paid any cash dividends on our Class A Shares. We anticipate that
we will retain any earnings to support operations and to finance the growth and development of our business. Therefore, we do not expect
to pay cash dividends in the foreseeable future. Any future determination relating to our dividend policy will be made at the discretion
of our board of directors and will depend on a number of factors, including future earnings, capital requirements, financial conditions
and future prospects and other factors the board of directors may deem relevant.

Under British Virgin Islands
law, a distribution (including a dividend) is considered to be any direct or indirect transfer by a company of any of its assets (other
than any of its shares), or the incurring by it of a debt, to or for the benefit of, a shareholder. The BVI Act only allows the directors
of the Company to authorize a distribution if they are satisfied on reasonable grounds that the Company will, immediately after the distribution
is made, satisfy the following tests (the “solvency tests”): (i) the value of its assets will exceed its liabilities; and
(ii) it will be able to pay its debts as they fall due. The solvency tests are also included in the Memorandum and Articles of Association.

If, after a dividend has been
authorised but before it is made, a director ceases to be satisfied on reasonable grounds that the company will satisfy the solvency tests
immediately after the distribution is made, the distribution is taken not to have been authorised.

If we determine to pay dividends
on any of our Class A Shares in the future, as a holding company, we will be dependent on receipt of funds from our PRC subsidiaries