Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 52

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 52
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 January 1, 2019, these investments were accounted for using the cost method of accounting, measured at cost less
other-than-temporary impairment.

As of December 31, 2024 and 2023, the Company’s long-term investment
amounted to niland $2,337,451, respectively, representing41.67% ownership in Shexian Ruibo Environmental Science and Technology Co.,
Ltd. (“ Shexian Ruibo”). On September 7, 2020, the Company acquired such equity interest from an original shareholder of Shexian
Ruibo and the original shareholder of Shexian Ruibo. Shexian Ruibo manufactures and sells eco-friendly construction materials in the PRC.
The Company accounted for the investments using the equity method because the Company has significant influence but does not own a majority
equity interest or otherwise control over the equity investee. Under the equity method, the Company adjusts the carrying amount of the
investment and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment.
When the Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does
not recognize further losses unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee.
For the years ended December 31, 2024, 2023 and 2022, the investment loss from Shexian Ruibo was $117,082, $95,031and $46,209, respectively.

The Company continually reviews its investments
in equity investees to determine whether a decline in fair value below the carrying value is other-than-temporary. The primary factors
the Company considers in its determination include the financial condition, operating performance and the prospects of the equity investee,
other company specific information such as recent financing rounds, the geographic region, market and industry in which the equity investee
operates; and the length of time that the fair value of the investment is below its carrying value. If the decline in fair value is deemed
to be other-than-temporary, the carrying value of the equity investee is written down to fair value. As of December 31, 2024 and 2023,
the Company did not recognize any impairment on its equity investment.

F-11

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 -