Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 34

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 15
Chunk 34
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 (iv) excessive and undisclosed bid-ask differentials
and markups by selling broker-dealers; and (v) the wholesale dumping of the same securities by promoters and broker-dealers after
prices have been manipulated to a desired level, resulting in investor losses. Our management is aware of the abuses that have occurred
historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers
who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from
being established with respect to our securities.

Our dual-class share structure
with different voting rights will limit your ability to influence corporate matters and could discourage potential acquirors from pursuing
any change of control transactions that holders of our Class A Shares may view as beneficial.

As approved on our 2024 Annual
General Meeting of Shareholders, we have adopted a dual-class share structure such that our Shares consist of Class A Shares and Class
B Shares. In respect of matters requiring the votes of shareholders, holders of Class A Shares are entitled to one vote per share, while
holders of Class B Shares are entitled to 1,000 votes per share. Only Class A Shares are listed on Nasdaq.

As of the date of this annual
report, through REIT International Development (Group) Co., Limited (“ REIT International”), Mr. Hengfang Li, Mr. Guangfeng
Dai, Mr. Zhizhong Hu, and Mr. Degang Hou, each holding 40%, 20%, 20% and 20% ownership, of REIT International, respectively, beneficially
own all of our issued Class B Shares. As of the date of this annual report, the Class B Shares they held in the aggregate accounted for
approximately 13.1% of our total issued and outstanding Shares and 99.3% of the aggregate voting power of our total issued and outstanding
Shares. See “ Item 6. Directors, Senior Management and Employees - E. Share ownership. ” and “Item 7.
Major Shareholders and Related Party Transactions.”