Company: RETO
Filing Date: 2025-07-31
Form Type: F-3
Source: 0001213900-25-070052
Chunk: 20

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-07-31
Form: F-3
Chunk 20
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, which were accounted as loan receivable from the respective
PRC subsidiary. These funds have been used by the Company’s PRC subsidiaries for their operations.

As of the date of this prospectus,
there have not been any dividends or other distributions from our PRC subsidiaries to REIT Holdings prior to the December 2024 Divestiture,
Sunoro Holdings and ReTo, all of which are located outside of mainland China. ReTo, as a BVI holding company, may rely on dividends and
other distributions on equity paid by its PRC subsidiaries for its cash and financing requirements, including the funds necessary to pay
dividends and other cash distributions to its shareholders, subject to ReTo’s M&A and the Act or to service any expenses and
other obligations it may incur.

Within
our direct holding structure, the cross-border transfer of funds from ReTo to its PRC subsidiaries is permitted under laws and regulations
of the PRC currently in effect. Specifically, ReTo is permitted to provide funding to its PRC subsidiaries in the form of shareholder
loans or capital contributions, subject to satisfaction of applicable government registration, approval and filing requirements in China.
There are no quantity limits on ReTo’s ability to make capital contributions to its PRC subsidiaries under the PRC law and regulations.
However, the PRC subsidiaries may only procure shareholder loans from Sunoro Holdings or MeinMalzeBier in an amount equal to the difference
between their respective registered capital and total investment amount as recorded in the Chinese Foreign Investment Comprehensive Management
Information System or three times of its net assets, at the discretion of such PRC subsidiary. For additional information, see “Item 3. Key Information — D. Risk Factors — Risks Related to Doing Business in China — PRC regulation on loans to, and direct investment in, PRC entities by offshore holding companies and governmental control in currency conversion may delay or prevent us from using the proceeds of our offerings to make loans to or make additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business” in our 2024 Annual Report, which is incorporated
by reference into this prospectus.

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Subject to the passive foreign
investment company rules, the requirements of ReTo’s M&A and the Act, the gross amount of any distribution that we make to investors
with respect to our securities (including any amounts withheld to reflect PRC withholding taxes) will be taxable as