Company: RETO
Filing Date: 2025-07-31
Form Type: F-3
Source: 0001213900-25-070052
Chunk: 10

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-07-31
Form: F-3
Chunk 10
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 in the amount of approximately US$0.5
million as of December 31, 2024. Funds are transferred between ReTo and its subsidiaries for their daily operation purposes. The transfer
of funds between our PRC subsidiaries are subject to the Provisions of the Supreme People’s Court on Several Issues Concerning the
Application of Law in the Trial of Private Lending Cases (2020 Second Revision, the “Provisions on Private Lending Cases”),
which was implemented on January 1, 2021, to regulate the financing activities between natural persons, legal persons and unincorporated
organizations. The Provisions on Private Lending Cases set forth that private lending contracts will be upheld as invalid under the circumstance
that (i) the lender swindles loans from financial institutions for relending; (ii) the lender relends the funds obtained by means of a
loan from another profit-making legal person, raising funds from its employees, illegally taking deposits from the public; (iii) the lender
who has not obtained the lending qualification according to the law lends money to any unspecified object of the society for the purpose
of making profits; (iv) the lender lends funds to a borrower when the lender knows or should have known that the borrower intended to
use the borrowed funds for illegal or criminal purposes; (v) the lending is in violation of public orders or good morals; or (vi) the
lending is in violation of mandatory provisions of laws or administrative regulations. We have relied on the opinion of our PRC counsel,
Yuan Tai Law Offices, that the Provisions on Private Lending Cases does not prohibit using cash generated from one subsidiary to fund
another subsidiary’s operations. We have not been notified of any other restriction which could limit our PRC subsidiaries’
ability to transfer cash between subsidiaries. As of the date of this prospectus, we have no cash management policies that dictate how
funds are transferred between ReTo and its subsidiaries.

Most of our cash is in Renminbi,
and the PRC government could prevent the cash maintained in mainland China or Hong Kong from leaving, could restrict deployment of the
cash into the business of our subsidiaries and restrict the ability to pay dividends.

Investing in our Class A Shares remains subject to our amended and restated memorandum and articles of association currently adopted, as amended or as amended and restated from time to time and the BVI Business Companies Act (Revised Edition) 2020 and involves substantial risk. See “ Risk Factors