Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 28

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 11
Chunk 28
---
 income.

Inflation Risk

Inflationary factors such
as increases in the cost of our product and overhead costs may adversely affect our operating results. Although we do not believe that
inflation has had a material effect on our financial position or results of operations to date, a high rate of inflation in the future
may have an adverse effect on our ability to maintain current levels of gross profit and selling, general and administrative expenses
as a percentage of net sales if the selling prices of our products do not increase with these increased costs.

Commodity Risk

As a developer and manufacturer
of ecological environment protection equipment and intelligent equipment and equipment, our Company is exposed to the risk of an increase
in the price of raw materials. We historically have been able to pass on price increases to customers by virtue of pricing terms that
vary with changes in raw material prices such as steel and cement, but we have not entered into any contract to hedge any specific commodity
risk. Moreover, our Company does not purchase or trade on commodity instruments or positions; instead, it purchases commodities for use.

Item 12. Description of Securities Other Than Equity Securities