Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 76

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 76
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)       |     | US$1=INR 83.66                   |     | US$1=INR 82.57  |     | US$1=INR 78.58  |

Risks and Uncertainties

The main operation of the Company is located in
the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political,
economic, and legal environment in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely
affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from
these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed
in Note 1, this may not be indicative of future results.

Discontinued Operations

The Company reports a disposal of its component
or a group of its components as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect
on the Company’s operations and financial results. Classification as a discontinued operation occurs upon disposal or when the operation
meets the criteria to be classified as held for sale, if earlier. In the period that a discontinued operation is classified as held for
sale, the assets and liabilities of the discontinued operation are presents separately in asset and liability sections, respectively,
of the consolidated balance sheets and prior periods are presented on a comparative basis. In the consolidated statements of operations
and comprehensive (loss)/income, the results from discontinued operations are reported separately from the income and expenses from continuing
operations and prior periods are presented on a comparative basis. Cash flows for discontinued operations are presented separately in
the consolidated statements of cash flows. Unless otherwise noted, discussion in the Notes to consolidated financial statements refers
to the Company’s continuing operations. Refer to Note 4 for additional information.

Segment Reporting

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic
280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced
disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for
interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods
presented in the financial statements. The Company adopted ASU 2023-