Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 65

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 65
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,700  

NOTE 5 - ACCOUNTS RECEIVABLE, NET

Accounts receivable consisted of the following:

                                                    As of      As of                    
  Trade accounts receivable                      $254,789      $                 279    
  Less: Allowance for doubtful accounts         ( 108,936                        ( 279  
  Accounts receivable, net                       $145,853      $                 -      

The Company’s accounts receivable balance
as of December 31, 2024 has been fully collected subsequently.

Allowance for credit losses movement is as follows:

  Beginning balance                 $                           279      $                         -  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────
                                    For the Year ended                   For the Year ended           
  Provision for credit losses                               110,229                              280  
  Foreign exchange translation                              ( 1,572                              ( 1  
  Ending balance                    $                       108,936      $                       279  

F-19

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE
6 - DEPOSITS FOR BUSINESS ACQUISITION

On August 31, 2024, the Company made prepayments in aggregate of $18,520,126to Sunflower Energy Holding Limited (“ Sunflower”) as deposits to secure potential business acquisitions. Subsequently on April
25, 2025, the Company completed a business acquisition of51% equity interest in MeinMalzeBier Holdings Limited (“ MeinMalzeBier”),
which was controlled by a shareholder of the Sunflower. In connection with the acquisition of MeinMalzeBier, the Company is obligated
to pay cash consideration of $3,978,000, which was deducted from the deposit made by the Company. In addition, the Company issued4,680,000Class A ordinary shares as part of its purchase consideration (Note 17) on April 25, 2025.

NOTE 7 - ADVANCES TO SUPPLIERS, NET

Advances to suppliers include prepayments for
raw materials used for production of construction materials for the Company’s construction projects, which consisted of the following:

                                                   As of             As of  
  Prepayment for raw material purchase          $524,930            $3,739  
  Less: Allowance for credit losses              ( 2,740           ( 2,817  
  Advances to suppliers, net                    $522,