Company: RETO
Filing Date: 2025-07-31
Form Type: F-3
Source: 0001213900-25-070052
Chunk: 22

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-07-31
Form: F-3
Chunk 22
---
 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. We have adopted certain cash management policies that dictate the internal approval process
on transferring funds between our holding company and our subsidiaries. Such policies dictate the purpose, amount and procedure of cash
transfers. Each transfer of cash among our subsidiaries is subject to internal approvals from at least two manager-level personnel, with
required procedures including submitting supporting documentation (such as payment receipts or invoices), responsible personnel reviewing
the documentation, and executing the payment. A single employee is not allowed to complete each and every stage of a cash transfer, but
rather only specific parts of the whole procedure.

There
is no assurance that the PRC government will not intervene or impose restrictions on the ability of us or our subsidiaries to transfer
cash. Most of our cash is in Renminbi, and the PRC government could prevent the cash maintained in our bank accounts in mainland China
from leaving mainland China, could restrict deployment of the cash into the business of our subsidiaries and restrict the ability to pay
dividends. For details regarding the restrictions on our ability to transfer cash between us, and our subsidiaries, see “Item 3. Key Information — D. Risk Factors — Risks Related to Doing Business in China — The PRC government could prevent the cash maintained in our bank accounts in mainland China from leaving mainland China, restrict deployment of the cash into the business of its subsidiaries and restrict the ability to pay dividends to U.S. investors, which could materially adversely