Company: RETO
Filing Date: 2025-10-24
Form Type: 424B5
Source: 0001213900-25-102262
Chunk: 55

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-10-24
Form: 424B5
Chunk 55
---
basedcompanies listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding efforts in anti -monopolyenforcement. 5 Among other things, the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (the “M&A Rules”) and Anti -MonopolyLaw of the People’s Republic of China promulgated by the SCNPC which became effective in 2008 and amended and put into effect as from August 1, 2022 (the “Anti -MonopolyLaw”), established additional procedures and requirements that could make merger and acquisition activities by foreign investors more time -consumingand complex. Such regulation requires, among other things, that the State Administration for Market Regulation be notified in advance of any change -of -controltransaction in which a foreign investor acquires control of a PRC domestic enterprise or a foreign company with substantial PRC operations, if certain thresholds under the Provisions of the State Council on the Standard for Declaration of Concentration of Business Operators, issued by the State Council in 2008 and amended on 19 September 2018, are triggered. Moreover, the Anti -MonopolyLaw requires that transactions which involve the national security, the examination on the national security shall also be conducted according to the relevant provisions of the State Council. In addition, the PRC Measures for the Security Review of Foreign Investment which became effective in January 2021 require acquisitions by foreign investors of PRC companies engaged in military -relatedor certain other industries that are crucial to national security be subject to security review before consummation of any such acquisition. On July 6, 2021, the relevant PRC governmental authorities made public the Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with the Law. These opinions emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China -basedcompanies and proposed to take effective measures, such as promoting the construction of relevant regulatory systems to deal with the risks and incidents faced by China -basedoverseas -listedcompanies. As these opinions are recently issued, official guidance and related implementation rules have not been issued yet and the interpretation of these opinions remains unclear at this stage. Given the current PRC regulatory environment, it is uncertain when and whether ReTo, REIT Holdings or any of our PRC subsidiaries will be required to obtain permission from the PRC government to list on U.S. exchanges in the future, and even when such permission is obtained, whether it will be denied or rescinded