Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 64

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 64
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Holdings”) and its subsidiaries were primarily engaged in municipal construction material sales business, municipal construction
projects and equipment manufacture and sales business. On December 31, 2024, the Company, with the Board approval, sold its100% ownership
interest in REIT Holdings to a third-party buyer (the “ Buyer”), a less-than 5% Class A shareholder of the Company, for a cash
consideration of $80,000(based on the valuation assessed by a third party valuation firm), which was fully paid by the Buyer by December
31, 2024. The disposition was completed on December 31, 2024. The Company recorded a loss from the disposition of $3,577,279for the year
ended December 31, 2024.

The discontinued operations represent a strategic
shift that has a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting
in accordance with ASC 205-20-45. The results of operations related to the discontinued operations for the years ended December 31, 2022
and 2023 were reported as loss from discontinued operations.

The results of discontinued operations of REIT
Holdings for the years ended December 31, 2024, 2023 and 2022 are as follows:

                                                For the Year Ended December 31,                                                                       
                                                2024                                                2023                       2022                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenues                                      $                                    2,429,726      $           3,225,505      $           6,269,178  
  Cost of revenues                                                                   1,249,372                  3,016,974                  5,463,660  
  Gross profit                                                                       1,180,354                    208,531                    805,518  
  Operating expenses                                                                   897,658                  5,070,857                 10,186,565  
  Gain (loss) from discontinued operations                                             282,696                ( 4,862,326                ( 9,381,047  
  Other income (loss), net                                                           ( 373,467                ( 4,697,061                    454,782  
  Loss before tax                                                                     ( 90,771                ( 9,559,387                ( 8,926,265  
  Income tax benefit                                                                  ( 16,424                   ( 16,