ReTo Eco-Solutions Reports Fiscal Year 2022 Financial Results
Financial Highlights for the Fiscal Year 2022
- Total revenue for the fiscal year 2022 increased by
80% to approximately$6.5 million - Gross profit for the fiscal year 2022 increased by
109% to approximately$0.8 million 12% for the fiscal year 2022, as compared to11% for the prior year. - Total net loss for the fiscal year 2022 was approximately
$15.4 million $22.1 million
Mr. Hengfang Li, ReTo's Chairman and Chief Executive Officer, said, "The total revenue in 2022 has increased compared to the previous year mainly due to the increase of income from sales of the Company's gravity separators and the newly added RSA services and software development services. As we move into post-epidemic era and adjust our business strategy and model, we will focus on the ecological and environmental protection business and plan to leverage our Internet of Things technology, ecological restoration technology and new ecological materials to empower our equipment business. Since the second half of 2022, we have launched a number of ecological and environmental protection projects, including large-scale Ecologic Oriented Development ("EOD") projects. We have started to work on a solid waste treatment and ecological governance EOD project for China-Mongolia Group and entered into a strategic cooperation agreement with the local government of Mengzi City,
Financial Results for the Fiscal Years 2022 and 2021
Revenues
Our total revenues from continuing operations increased by approximately
Cost of Revenues
Our total cost of revenues increased by approximately
Gross Profit (Loss)
Our gross profit increased by approximately
Selling Expenses
For the year ended December 31, 2022, our selling expenses were approximately
General and Administrative Expenses
For the year ended December 31, 2022, our general and administrative expenses were approximately
Bad Debt Expenses
For the year ended December 31, 2022, our bad debt expenses were approximately
Research and Development Expenses
Our research and development ("R&D") expenses were approximately
Change in Fair Value in Convertible Debt
During the years ended December 31, 2022 and 2021, change in fair value in convertible debt amounted to approximately
Net Loss
Our net loss from continuing operations amounted to approximately
Financial Position
As of December 31, 2022, the Company had cash of approximately
Additional information regarding the Company's results of operations for the fiscal year 2022 can be found in the Company's Annual Report on Form 20-F for the year ended December 31, 2022, which has been filed with the Securities and Exchange Commission on the date of this earnings release.
About ReTo Eco-Solutions, Inc.
Founded in 1999, ReTo, through its proprietary technologies, systems and solutions, is striving to bring clean water and fertile soil to communities worldwide. The Company, through its operating subsidiaries in
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate," or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: ReTo's goal and strategies; ReTo's future business development, financial condition and results of operations; expected changes in ReTo's revenues, costs or expenses; industry landscape of, and trends in, the construction industry; ReTo's expectations regarding demand for, and market acceptance of, its services; the impact of COVID-19 pandemic; general economic and business condition; and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission (the "SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
ReTo Eco-Solutions, Inc.
Yue Hu
Beijing Phone: +86-010-64827328
ir@retoeco.com or 311@reit.cc
RETO ECO-SOLUTIONS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, | December 31, | |||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 113,895 | $ | 457,495 | ||||
Accounts receivable, net | 2,150,450 | 441,703 | ||||||
Accounts receivable, net - related party | 83,736 | 93,589 | ||||||
Advances to suppliers, net | 453,894 | 281,600 | ||||||
Advances to suppliers, net - related party | 3,787,036 | 3,842,620 | ||||||
Inventories, net | 337,798 | 463,731 | ||||||
Prepayments and other current assets | 402,151 | 389,864 | ||||||
Due from related parties | 208,225 | - | ||||||
Receivable from disposition - current | - | 7,059,559 | ||||||
Total Current Assets | 7,537,185 | 13,030,161 | ||||||
Property, plant and equipment, net | 8,722,435 | 9,707,602 | ||||||
Intangible assets, net | 4,869,654 | 4,111,029 | ||||||
Long-term investment in equity investee | 2,503,944 | 2,758,228 | ||||||
Right-of-use assets | 424,999 | 278,269 | ||||||
Goodwill | - | 1,075,778 | ||||||
Total Assets | $ | 24,058,217 | $ | 30,961,067 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Short-term loans | $ | 1,319,490 | 2,353,500 | |||||
Convertible debt | 3,922,686 | 1,645,000 | ||||||
Advances from customers | 2,551,216 | 2,061,203 | ||||||
Due to a minority shareholder | 725,000 | - | ||||||
Deferred grants - current | 18,563 | 269,061 | ||||||
Accounts payable | 2,624,701 | 2,121,313 | ||||||
Accounts payable - related party | - | 10,199 | ||||||
Accrued and other liabilities | 2,717,432 | 3,103,056 | ||||||
Loans from third parties | 1,106,233 | 1,593,977 | ||||||
Taxes payable | 2,077,088 | 2,599,770 | ||||||
Due to related parties | - | 472,439 | ||||||
Operating lease liabilities, current | 277,036 | 155,857 | ||||||
Deferred tax liability | 325,593 | 370,856 | ||||||
Total Current Liabilities | 17,665,038 | 16,756,231 | ||||||
Loans from third parties-noncurrent | 1,160,000 | - | ||||||
Operating lease liabilities - noncurrent | 158,650 | 120,558 | ||||||
Total Liabilities | 18,983,688 | 16,876,789 | ||||||
Commitments and Contingencies | ||||||||
Shareholders' Equity: | ||||||||
Common Share, | 43,400 | 28,966 | ||||||
Additional paid-in capital | 53,331,093 | 46,776,170 | ||||||
Statutory reserve | 1,066,554 | 1,230,387 | ||||||
Accumulated deficit | (47,813,206 | ) | (33,347,984 | ) | ||||
Accumulated other comprehensive loss | (2,388,890 | ) | (1,135,386 | ) | ||||
Total Shareholders' Equity Attributable to ReTo Eco-Solutions Inc. | 4,238,951 | 13,552,153 | ||||||
Noncontrolling interest | 835,578 | 532,125 | ||||||
Total Shareholders' Equity | 5,074,529 | 14,084,278 | ||||||
Total Liabilities and Shareholders' Equity | $ | 24,058,217 | 30,961,067 | |||||
RETO ECO-SOLUTIONS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Years Ended December 31, | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Revenues | $ | 6,168,798 | $ | 3,318,294 | $ | 8,110,401 | ||||||
Revenues – related parties | 304,875 | 281,784 | 228,814 | |||||||||
Total Revenues | 6,473,673 | 3,600,078 | 8,339,215 | |||||||||
Cost of revenues | 5,195,159 | 3,039,296 | 6,193,505 | |||||||||
Cost of revenues – related parties | 471,849 | 175,053 | 148,034 | |||||||||
Total cost of revenues | 5,667,008 | 3,214,349 | 6,341,539 | |||||||||
Gross Profit | 806,665 | 385,729 | 1,997,676 | |||||||||
Operating Expenses: | ||||||||||||
Selling expenses | 3,774,666 | 826,242 | 1,085,602 | |||||||||
General and administrative expenses | 8,592,966 | 4,619,058 | 3,971,496 | |||||||||
Bad debt expenses | 1,710,839 | 2,250,334 | 909,931 | |||||||||
Impairment of long-lived assets | - | 4,344,133 | 2,267,485 | |||||||||
Impairment of goodwill | 1,018,870 | - | - | |||||||||
Research and development expenses | 960,598 | 346,951 | 334,904 | |||||||||
Total Operating Expenses | 16,057,939 | 12,386,718 | 8,569,418 | |||||||||
Loss from Operations | (15,251,274 | ) | (12,000,989 | ) | (6,571,742 | ) | ||||||
Other Income (Expenses): | ||||||||||||
Interest expense | (321,686 | ) | (103,340 | ) | (857,551 | ) | ||||||
Interest income | 3,234 | 1,898 | (64 | ) | ||||||||
Other income (expenses), net | 177,753 | (26,991 | ) | 480,054 | ||||||||
Loss from disposal of REIT Changjiang | - | (6,293,149 | ) | - | ||||||||
Gain from dissolution of subsidiaries | 508,345 | - | - | |||||||||
Gain from disposal of Gu'an REIT | - | - | 2,231,270 | |||||||||
Share of losses in equity method investments | (46,209 | ) | (142,673 | ) | - | |||||||
Change in fair value convertible debt | (467,383 | ) | (1,908,830 | ) | - | |||||||
Total Other Income (Expenses), net | (145,946 | ) | (8,473,085 | ) | 1,853,709 | |||||||
Loss before provision for income taxes | (15,397,220 | ) | (20,474,074 | ) | (4,718,033 | ) | ||||||
Income taxes provision (benefit) | (17,562 | ) | 3,469 | 569,974 | ||||||||
Net loss from continuing operations | (15,379,658 | ) | (20,477,543 | ) | (5,288,007 | ) | ||||||
Net loss from discontinued operations, net of taxes | - | (1,596,390 | ) | (7,612,601 | ) | |||||||
Net Loss | (15,379,658 | ) | (22,073,933 | ) | (12,900,608 | ) | ||||||
Less: net loss attributable to noncontrolling interest | (750,603 | ) | (969,107 | ) | (1,126,845 | ) | ||||||
Net loss attributable to ReTo Eco-Solutions, Inc. | $ | (14,629,055 | ) | $ | (21,104,826 | ) | $ | (11,773,763 | ) | |||
Comprehensive Loss: | ||||||||||||
Net Loss | $ | (15,379,658 | ) | (22,073,933 | ) | (12,900,608 | ) | |||||
Other Comprehensive income (loss): | ||||||||||||
Foreign currency translation adjustments | (1,183,819 | ) | 493,769 | 1,923,316 | ||||||||
Comprehensive Loss | (16,563,477 | ) | (21,580,164 | ) | (10,977,292 | ) | ||||||
Less: comprehensive loss attributable to noncontrolling interest | (680,918 | ) | (938,771 | ) | (1,132,148 | ) | ||||||
Comprehensive loss attributable to ReTo Eco-Solutions, Inc. | $ | (15,882,559 | ) | $ | (20,641,393 | ) | $ | (9,845,144 | ) | |||
Net loss attributable to ReTo Eco-Solutions, Inc. | ||||||||||||
Continuing operations | (14,629,055 | ) | (19,508,436 | ) | (4,161,162 | ) | ||||||
Discontinued operations | - | (1,596,390 | ) | (7,612,601 | ) | |||||||
Total | $ | (14,629,055 | ) | $ | (21,104,826 | ) | $ | (11,773,763 | ) | |||
Basic and Diluted Loss Per Share Attributable to ReTo Eco-Solutions, Inc. | ||||||||||||
Continuing operations | (0.38 | ) | (0.75 | ) | (0.17 | ) | ||||||
Discontinued operations | - | (0.06 | ) | (0.32 | ) | |||||||
Total | $ | (0.38 | ) | $ | (0.81 | ) | $ | (0.49 | ) | |||
Weighted average number of shares | ||||||||||||
Basic and diluted | 38,800,974 | 26,160,750 | 24,124,884 | |||||||||
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SOURCE ReTo Eco-Solutions, Inc.
