Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 82

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 82
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   | For the Year ended 
       December 31, 
               2023 |   |
|:-----------------------------|:----|:--|-------------------:|:--|:----|:--|-------------------:|:--|
| Beginning balance            |     | $ |                279 |   |     | $ |                  - |   |
| Provision for credit losses  |     |   |            110,229 |   |     |   |                280 |   |
| Foreign exchange translation |     |   |             (1,572 | ) |     |   |                 (1 | ) |
| Ending balance               |     | $ |            108,936 |   |     | $ |                279 |   |

F-19 RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 – DEPOSITS FOR BUSINESS ACQUISITION On August 31, 2024, the Company made prepayments in aggregate of $ 18,520,126to Sunflower Energy Holding Limited (“Sunflower”) as deposits to secure potential business acquisitions. Subsequently on April 25, 2025, the Company completed a business acquisition of 51% equity interest in MeinMalzeBier Holdings Limited (“MeinMalzeBier”), which was controlled by a shareholder of the Sunflower. In connection with the acquisition of MeinMalzeBier, the Company is obligated to pay cash consideration of $ 3,978,000, which was deducted from the deposit made by the Company. In addition, the Company issued 4,680,000Class A ordinary shares as part of its purchase consideration (Note 17) on April 25, 2025.

NOTE 7 – ADVANCES TO SUPPLIERS, NET

Advances to suppliers include prepayments for
raw materials used for production of construction materials for the Company’s construction projects, which consisted of the following:

|                                      |     |   |        As of 
 December 31, 
         2024 |   |     |   |        As of 
 December 31, 
         2023 |   |
|:-------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Prepayment for raw material purchase |     | $ |      524,930 |   |     | $ |        3,