Company: RETO
Filing Date: 2025-07-31
Form Type: F-3
Source: 0001213900-25-070052
Chunk: 9

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-07-31
Form: F-3
Chunk 9
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 In addition, under PRC law, each of our PRC subsidiaries is required to set
aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach
50% of its registered capital. These reserves are not distributable as cash dividends. If any of our PRC subsidiaries incurs debt on its
own behalf in the future, the instruments governing such debt may restrict its ability to pay dividends to ReTo. To date, there have not
been any such dividends or other distributions from our PRC subsidiaries to our subsidiary located outside of China, ReTo or its shareholders
outside of China. Furthermore, as of the date of this prospectus, neither ReTo nor any of its subsidiaries have ever paid dividends or
made distributions to ReTo’s shareholders. ReTo is permitted under PRC laws and regulations as an offshore holding company to provide
funding to its PRC subsidiaries in China through shareholder loans or capital contributions, subject to satisfaction of applicable government
registration, approval and filing requirements. According to the relevant PRC regulations on foreign-invested enterprises in China, there
are no quantity limits on ReTo’s ability to make capital contributions to its PRC subsidiaries. However, our PRC subsidiaries may
not procure loans which exceed the higher of (i) difference between their total investment amount as recorded in the Foreign Investment
Comprehensive Management Information System and their respective registered capital and (ii) three times of their net worth. In the future,
cash proceeds raised from overseas financing activities may continue to be transferred by ReTo to the PRC subsidiaries via capital contribution
or shareholder loans, as the case may be. We intend to retain most, if not all, of our available funds and any future earnings for the
development and growth of our business in China. We do not expect to pay dividends or distribute earnings in the foreseeable future.

For the fiscal year ended
December 31, 2022, 2023, and 2024, funds equivalent to approximately $4.2 million, $0.1 million, and $29.4 million, respectively, were
provided to ReTo’s PRC subsidiaries as shareholder loans, 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.

We maintain bank accounts
in China, including cash in Renminbi in the amount of approximately RMB1.6 million and cash in USD