BEIJING, Dec. 22, 2020 /PRNewswire/ -- ReTo Eco-Solutions,
Inc. (NASDAQ: RETO) ("ReTo" or the "Company"), a provider of
technology solutions for the improvement of ecological
environments, today announced its financial results for the six
months ended June 30, 2020. ReTo is a
manufacturer and distributor of eco-friendly construction materials
as well as equipment used for the production of eco-friendly
construction materials. ReTo also engages in consultation, design,
project implementation, and construction of urban ecological
projects, including those for the purpose of capturing,
controlling, and reusing rainwater, commonly called "sponge
cities."
Mr. Hengfang Li, Chairman and Chief Executive Officer of ReTo,
commented, "As was the case for most companies, COVID-19 had a
significant negative impact on our business throughout 2020.
Unfortunately, projects we were anticipating to contribute to
revenue never materialized due to forced closures. As a result of
COVID-19 related business and government closures, logistic
complications, delays and higher costs, and the cancellation or
delay in the delivery of products and services to customers, our
financial results for the first six months of 2020 were negative
when compared to the first six months of 2019."
Net revenue for the six months ended June
30, 2020 was $3.14 million
compared to $14.13 million for the
same period of last year. The decrease was primarily due to the
materially adverse impact of COVID-19 on the economy, ReTo's
operations, its customers, and its supply chain. Revenue from
machinery and equipment, construction materials, and municipal
construction projects accounted for 43.6%, 52.0%, and 4.4%,
respectively, of total revenue for the six months ended
June 30, 2020, compared to 48.0%,
51.5%, and 0.5%, respectively, for the same period of last
year.
Cost of revenue was $2.88 million
for the six months ended June 30,
2020 compared to $10.70
million for the same period of last year, which reflected
the decrease in revenue over the same period. Gross profit was
$0.26 million for the six months
ended June 30, 2020 compared to
$3.44 million for the same period of
last year. Gross margin was 8.2% for the six months ended
June 30, 2020 compared to 24.3% for
the same period of last year. Net loss attributable to ReTo was
$3.7 million, or $0.16 per basic and diluted share, as compared to
a net loss of $3.0 million, or
$0.13 per basic and diluted share in
the year-ago period. The six-month period ended June 30, 2020 included a $2.19 million one-time gain from the disposal of
a subsidiary.
As of June 30, 2020, the Company
had balance of cash and cash equivalents of approximately
$0.2 million, with an accounts
receivable balance of approximately $6.7
million, of which approximately $1.3
million was subsequently collected after June 30, 2020, with the remaining balance
expected to be substantially collected before June 30, 2021. The Company is working to improve
its liquidity and capital sources mainly through cash flow from its
operations, renewal of bank borrowings, borrowing from related
parties, and potential equity financings, but it cannot guarantee
the timing or a positive outcome leading to a substantial doubt
about the Company's ability to continue as a going concern for the
next 12 months based on its unaudited condensed consolidated
financial statements.
Mr. Hengfang Li continued, "We believe we have solid long-term
business fundamentals based on the growing demand for eco-friendly
solutions. Our focus is on reducing operating expenses and overhead
wherever possible as we align our cost structure with the current
business level. We have seen an improvement in the operating
environment in the second half of 2020 and expect a continued
improvement in 2021. We are excited about our long-term
fundamentals and believe we will emerge from 2020 in a stronger
position as we are now offering customers additional features and
customized configurations on our machinery and equipment products.
We will continue to devote our efforts to manufacturing equipment
used for production of eco-friendly construction materials.
In addition, with more stringent environmental regulations being
enforced in China, many companies
have to replace older equipment with more environmentally friendly
equipment. We believe our products can provide an ideal solution
for these companies and will work to capitalize on this potential
growth opportunity. In line with our development strategy, we have
started several ecological restoration projects in cooperation with
local governments and state-owned companies. We believe these
projects will contribute our business growth in 2021."
Recent Developments
On July 13, 2020, ReTo transferred
its 55% equity interests in Yunnan Litu Technology Development Co.,
Ltd. ("Yunnan Litu") to third parties for a nominal price given the
inactivity of Yunnan Litu's business operations since its inception
and ReTo's ongoing focus on its own organic business growth.
On September 7, 2020, Beijing REIT
Technology Development Co., Ltd. ("Beijing REIT") entered into a
share transfer agreement with the original shareholder of Shexian
Ruibo Environmental Science and Technology Co., Ltd. ("Shexian
Ruibo") for the acquisition of 41.67% of the equity interests in
Shexian Ruibo for a total consideration of $3.6 million (RMB 25
million), including a cash payment of $2.7 million (RMB 18.5
million) and non-cash contribution of six patents valued at
$0.9 million (RMB 6.5 million). Beijing REIT made the cash
payment of $2.7 million (RMB 18.5 million) on October 20, 2020 and the six patents had been
transferred to Shexian Ruibo prior to September 15, 2020.
About ReTo Eco-Solutions, Inc. (NASDAQ: RETO)
Founded in 1999, ReTo (NASDAQ: RETO), through its proprietary
technologies, systems and solutions, is striving to bring clean
water and fertile soil to communities worldwide. The Company offers
a full range of products and services, ranging from the production
of environmentally-friendly construction materials, environmental
protection equipment, and manufacturing equipment used to produce
environmentally-friendly construction materials, to project
consulting, design, and installation for the improvement of
ecological environments, such as ecological soil restoration
through solid waste treatment. For more information, please visit:
http://en.retoeco.com
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. Specifically, the Company's statements
regarding: 1) the ability of additional features and customized
configurations on its machinery and equipment products to attract
new customers; 2) the ability of the growth of its business to
resume in the near future; and 3) the further spread of COVID-19 or
the occurrence of another wave of cases and the impact it may have
on the Company's operations are forward-looking statements.
Forward-looking statements are not guarantees of future performance
and involve risks and uncertainties that may cause the actual
results to differ materially from the Company's expectations
discussed in the forward-looking statements. These statements are
subject to uncertainties and risks including, but not limited to,
the following: the Company's goals and strategies; the Company's
future business development; product and service demand and
acceptance; changes in technology; economic conditions; the growth
of the construction industry in China; reputation and brand; the impact of
competition and pricing; government regulations; fluctuations in
general economic and business conditions in China 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. 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
U.S. Securities and Exchange Commission, 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.
RETO
ECO-SOLUTIONS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
June
30,
|
|
|
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
202,078
|
|
|
$
|
897,281
|
|
Restricted
cash
|
|
|
83,005
|
|
|
|
84,237
|
|
Accounts receivable,
net – third parties
|
|
|
6,590,699
|
|
|
|
11,252,002
|
|
Accounts receivable,
net – related party
|
|
|
96,661
|
|
|
|
469,474
|
|
Advances to
suppliers, net – third parties
|
|
|
3,793,935
|
|
|
|
2,449,629
|
|
Advances to
suppliers, net – related parties
|
|
|
3,043,191
|
|
|
|
-
|
|
Inventories,
net
|
|
|
2,704,139
|
|
|
|
888,203
|
|
Prepayments and other
current assets
|
|
|
2,951,906
|
|
|
|
435,273
|
|
Prepayment for
construction of properties
|
|
|
3,608,250
|
|
|
|
3,661,800
|
|
Current assets held
for sale associated with discontinued operation of Gu'an
REIT
|
|
|
-
|
|
|
|
5,326,348
|
|
Total Current
Assets
|
|
|
23,073,864
|
|
|
|
25,464,247
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and
equipment, net
|
|
|
35,910,908
|
|
|
|
37,457,643
|
|
Intangible assets,
net
|
|
|
5,982,569
|
|
|
|
6,145,179
|
|
Long-term investment
in equity investee
|
|
|
-
|
|
|
|
28,720
|
|
Right-of-use
assets
|
|
|
603,535
|
|
|
|
505,630
|
|
Non-current assets
held for sale associated with discontinued operation of Gu'an
REIT
|
|
|
-
|
|
|
|
1,193,825
|
|
Total
Assets
|
|
$
|
65,570,876
|
|
|
$
|
70,795,244
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Short term
loans
|
|
$
|
6,042,188
|
|
|
$
|
8,309,098
|
|
Long term bank loans
- current portion
|
|
|
2,369,643
|
|
|
|
1,436,000
|
|
Advances from
customers
|
|
|
4,510,113
|
|
|
|
3,087,315
|
|
Deferred
revenue
|
|
|
460,661
|
|
|
|
471,375
|
|
Accounts
payable
|
|
|
1,645,417
|
|
|
|
1,151,570
|
|
Accounts payable -
related party
|
|
|
416,534
|
|
|
|
1,485,049
|
|
Accrued and other
liabilities
|
|
|
4,165,919
|
|
|
|
2,487,616
|
|
Taxes
payable
|
|
|
1,824,407
|
|
|
|
1,806,777
|
|
Due to related
parties
|
|
|
2,887,208
|
|
|
|
405,222
|
|
Operating lease
liabilities, current
|
|
|
305,452
|
|
|
|
177,903
|
|
Advance payment from
the buyer associated with discontinued operation of Gu'an
REIT
|
|
|
-
|
|
|
|
1,392,920
|
|
Current liabilities
held for sale associated with discontinued operation of Gu'an
REIT
|
|
|
-
|
|
|
|
3,004,924
|
|
Total Current
Liabilities
|
|
|
24,672,542
|
|
|
|
25,215,769
|
|
|
|
|
|
|
|
|
|
|
Long-term bank
loans
|
|
|
6,226,000
|
|
|
|
7,323,600
|
|
Operating lease
liabilities – noncurrent
|
|
|
278,301
|
|
|
|
301,012
|
|
Total
Liabilities
|
|
|
31,131,843
|
|
|
|
32,840,381
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
Common shares, $0.001
par value, 200,000,000 shares authorized, 24,135,000 shares and
23,160,000 shares issued and outstanding as of
June 30, 2020 and December 31, 2019,
respectively
|
|
|
24,135
|
|
|
|
23,160
|
|
Additional paid-in
capital
|
|
|
43,709,127
|
|
|
|
42,725,852
|
|
Statutory
reserve
|
|
|
2,067,439
|
|
|
|
2,632,797
|
|
Accumulated
deficit
|
|
|
(8,893,351)
|
|
|
|
(5,718,368)
|
|
Accumulated other
comprehensive loss
|
|
|
(3,937,379)
|
|
|
|
(3,527,438)
|
|
Total RETO
Eco-Solutions, Inc. Shareholders' Equity
|
|
|
32,969,971
|
|
|
|
36,136,003
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
|
1,469,062
|
|
|
|
1,818,860
|
|
Total
Equity
|
|
|
34,439,033
|
|
|
|
37,954,863
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
|
65,570,876
|
|
|
$
|
70,795,244
|
|
RETO
ECO-SOLUTIONS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(UNAUDITED)
|
|
|
|
For the Six
Months
Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
3,142,102
|
|
|
$
|
14,125,892
|
|
Cost of revenue –
third-party customers
|
|
|
2,884,298
|
|
|
|
10,689,311
|
|
Gross
Profit
|
|
|
257,804
|
|
|
|
3,436,581
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
474,901
|
|
|
|
631,664
|
|
General and
administrative expenses
|
|
|
1,788,625
|
|
|
|
1,709,377
|
|
Bad debt
expenses
|
|
|
2,792,800
|
|
|
|
2,686,782
|
|
Research and
development expenses
|
|
|
180,339
|
|
|
|
234,741
|
|
Total Operating
Expenses
|
|
|
5,236,665
|
|
|
|
5,262,564
|
|
|
|
|
|
|
|
|
|
|
Loss from
Operations
|
|
|
(4,978,861)
|
|
|
|
(1,825,983)
|
|
|
|
|
|
|
|
|
|
|
Other Income
(expenses):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(876,660)
|
|
|
|
(632,830)
|
|
Interest
income
|
|
|
2,715
|
|
|
|
1,722
|
|
Other income
(expenses), net
|
|
|
(111,729)
|
|
|
|
126,765
|
|
Total Other
expenses, net
|
|
|
(985,674)
|
|
|
|
(504,343)
|
|
|
|
|
|
|
|
|
|
|
Loss before
provision for income taxes
|
|
|
(5,964,535)
|
|
|
|
(2,330,326)
|
|
Provision for
income taxes
|
|
|
131,615
|
|
|
|
171,922
|
|
Net loss from
continuing operations
|
|
|
(6,096,150)
|
|
|
|
(2,502,248)
|
|
Net loss from
discontinued operations
|
|
|
-
|
|
|
|
(900,097)
|
|
Gain from disposal of
Gu'an REIT
|
|
|
2,192,801
|
|
|
|
-
|
|
Net
Loss
|
|
|
(3,903,349)
|
|
|
|
(3,402,345)
|
|
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling interest
|
|
|
(163,008)
|
|
|
|
(391,899)
|
|
Net loss
attributable to ReTo Eco-Solutions, Inc.
|
|
$
|
(3,740,341)
|
|
|
$
|
(3,010,446)
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(3,903,349)
|
|
|
$
|
(3,402,345)
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment:
|
|
|
(596,731)
|
|
|
|
115,298
|
|
Comprehensive
Loss
|
|
|
(4,500,080)
|
|
|
|
(3,287,047)
|
|
Less: comprehensive
loss attributable to noncontrolling interest
|
|
|
(349,798)
|
|
|
|
(509,567)
|
|
Comprehensive loss
attributable to ReTo Eco-Solutions, Inc.
|
|
$
|
(4,150,282)
|
|
|
$
|
(2,777,480)
|
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.16)
|
|
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
23,622,148
|
|
|
|
22,760,000
|
|
RETO
ECO-SOLUTIONS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
FOR THE SIX MONTHS
ENDED JUNE 30, 2020 AND 2019
|
(UNAUDITED)
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
Retained
Earnings
|
|
|
Accumulated
Other
|
|
|
Non-
|
|
|
|
|
|
|
Common Shares
|
|
|
paid-in
|
|
|
Statutory
|
|
|
(Accumulated
|
|
|
Comprehensive
|
|
|
controlling
|
|
|
Total
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Reserve
|
|
|
Deficit)
|
|
|
Income
(Loss)
|
|
|
Interest
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December
31, 2018
|
|
|
22,760,000
|
|
|
$
|
22,760
|
|
|
$
|
42,278,252
|
|
|
$
|
2,632,797
|
|
|
$
|
9,084,246
|
|
|
$
|
(3,105,185)
|
|
|
$
|
2,267,985
|
|
|
$
|
53,180,855
|
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,010,446)
|
|
|
|
-
|
|
|
|
(391,899)
|
|
|
|
(3,402,345)
|
|
Foreign
currency
translation
adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
232,966
|
|
|
|
(117,668)
|
|
|
|
115,298
|
|
Balance at
June 30,
2019
|
|
|
22,760,000
|
|
|
$
|
22,760
|
|
|
$
|
42,278,252
|
|
|
$
|
2,632,797
|
|
|
$
|
6,073,800
|
|
|
$
|
(2,872,219)
|
|
|
$
|
1,758,418
|
|
|
$
|
49,893,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December
31, 2019
|
|
|
23,160,000
|
|
|
$
|
23,160
|
|
|
$
|
42,725,852
|
|
|
$
|
2,632,797
|
|
|
$
|
(5,718,368)
|
|
|
$
|
(3,527,438)
|
|
|
$
|
1,818,860
|
|
|
$
|
37,954,863
|
|
Net loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,740,341)
|
|
|
|
-
|
|
|
|
(163,008)
|
|
|
|
(3,903,349)
|
|
Change in
statutory
reserve
related to
disposal of
Gu'an
REIT
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(565,358)
|
|
|
|
565,358
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Foreign
currency
translation
adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(409,941)
|
|
|
|
(186,790)
|
|
|
|
(596,731)
|
|
Issuance of
common
shares on
January 1,
2020
|
|
|
685,000
|
|
|
|
685
|
|
|
|
650,065
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
650,750
|
|
Issuance of
common
shares on
February 3,
2020
|
|
|
290,000
|
|
|
|
290
|
|
|
|
333,210
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
333,500
|
|
Balance at
June 30,
2020
|
|
|
24,135,000
|
|
|
$
|
24,135
|
|
|
$
|
43,709,127
|
|
|
$
|
2,067,439
|
|
|
$
|
(8,893,351)
|
|
|
$
|
(3,937,379)
|
|
|
$
|
1,469,062
|
|
|
$
|
34,439,033
|
|
RETO
ECO-SOLUTIONS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
For the six months
ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,903,349)
|
|
|
$
|
(3,402,345)
|
|
Less: net loss from
discontinued operations
|
|
|
-
|
|
|
|
(900,097)
|
|
Net loss from
continuing operations
|
|
|
(3,903,349)
|
|
|
|
(2,502,248)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Loss from disposal of
property and equipment
|
|
|
10,458
|
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
1,127,480
|
|
|
|
826,670
|
|
Amortization of
stock-based compensation for services
|
|
|
456,063
|
|
|
|
-
|
|
Change in bad debt
allowances
|
|
|
2,792,800
|
|
|
|
2,687,156
|
|
Gain from disposal of
Gu'an REIT
|
|
|
(2,192,801)
|
|
|
|
-
|
|
Amortization of
operating lease right-of-use assets
|
|
|
116,120
|
|
|
|
109,975
|
|
Changes in operating
assets:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
2,125,800
|
|
|
|
(4,987,255)
|
|
Accounts receivable -
related party
|
|
|
220,998
|
|
|
|
-
|
|
Advances to
suppliers
|
|
|
(1,628,556)
|
|
|
|
(9,003)
|
|
Advances to suppliers
- related parties
|
|
|
(3,069,487)
|
|
|
|
-
|
|
Inventories
|
|
|
(1,837,972)
|
|
|
|
(2,063,087)
|
|
Prepayments and other
current assets
|
|
|
(479,015)
|
|
|
|
(32,915)
|
|
Billings in excess of
costs and estimated earnings
|
|
|
-
|
|
|
|
(91,735)
|
|
Changes in operating
liabilities:
|
|
|
-
|
|
|
|
-
|
|
Advances from
customers
|
|
|
1,475,209
|
|
|
|
1,577,496
|
|
Deferred
revenue
|
|
|
(3,839)
|
|
|
|
-
|
|
Accounts
payable
|
|
|
513,213
|
|
|
|
1,607,792
|
|
Accounts payable -
related party
|
|
|
(1,051,977)
|
|
|
|
|
|
Accrued and other
liabilities
|
|
|
1,718,195
|
|
|
|
174,185
|
|
Taxes
payable
|
|
|
44,270
|
|
|
|
168,613
|
|
Operating lease
liabilities
|
|
|
(143,306)
|
|
|
|
(103,462)
|
|
Net cash used in
operating activities from continuing operations
|
|
|
(3,709,696)
|
|
|
|
(2,637,818)
|
|
Net cash provided
by operating activities from discontinuing
operations
|
|
|
-
|
|
|
|
3,134,281
|
|
Net cash provided
by (used in) operating activities
|
|
|
(3,709,696)
|
|
|
|
496,463
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Addition of property,
equipment and construction in progress
|
|
|
(91,946)
|
|
|
|
(508,236)
|
|
Proceeds from
disposal of long-term investment
|
|
|
28,440
|
|
|
|
-
|
|
Proceeds from
disposal of Gu'an REIT
|
|
|
2,768,703
|
|
|
|
-
|
|
Term
deposits
|
|
|
-
|
|
|
|
(141,096)
|
|
Net cash provided
by (used in) investing activities from continuing
operations
|
|
|
2,705,197
|
|
|
|
(649,332)
|
|
Net cash used in
investing activities from discontinued operations
|
|
|
-
|
|
|
|
-
|
|
Net cash provided
by (used in) investing activities
|
|
|
2,705,197
|
|
|
|
(649,332)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from
short-term loans
|
|
|
5,801,760
|
|
|
|
6,619,731
|
|
Proceeds from
long-term bank loans
|
|
|
-
|
|
|
|
737,069
|
|
Repayment of
short-term bank loans
|
|
|
(7,957,772)
|
|
|
|
(6,633,621)
|
|
Repayment of
long-term bank loans
|
|
|
(36,035)
|
|
|
|
(147,414)
|
|
Proceeds from related
party loans
|
|
|
3,677,761
|
|
|
|
202,329
|
|
Repayment to related
party loans
|
|
|
(1,180,383)
|
|
|
|
-
|
|
Net cash provided
by financing activities from continuing operations
|
|
|
305,331
|
|
|
|
778,094
|
|
Net cash used in
financing activities from discontinuing operations
|
|
|
-
|
|
|
|
(324,280)
|
|
Net cash provided
by financing activities
|
|
|
305,331
|
|
|
|
453,814
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND RESTRICTED CASH
|
|
|
2,733
|
|
|
|
(32,181)
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND RESTRICTED CASH
|
|
|
(696,435)
|
|
|
|
268,764
|
|
|
|
|
|
|
|
|
|
|
CASH AND
RESTRICTED CASH, BEGINNING OF PERIOD
|
|
|
981,518
|
|
|
|
1,563,166
|
|
|
|
|
|
|
|
|
|
|
CASH AND
RESTRICTED CASH, END OF PERIOD
|
|
$
|
285,083
|
|
|
$
|
1,831,930
|
|
Less: cash and cash
equivalents, restricted cash from discontinued operation, end of
period
|
|
|
-
|
|
|
|
(8,448)
|
|
Cash and and cash
equivalents, restricted cash from continuing operations, end of
period
|
|
$
|
285,083
|
|
|
$
|
1,823,482
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO
AMOUNTS ON CONSOLIDATED BALANCE SHEETS:
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
202,078
|
|
|
$
|
1,652,050
|
|
Restricted
cash
|
|
|
83,005
|
|
|
|
171,432
|
|
Total cash and
restricted cash
|
|
$
|
285,083
|
|
|
$
|
1,823,482
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
572,201
|
|
|
$
|
711,255
|
|
Income tax
paid
|
|
$
|
-
|
|
|
$
|
75,387
|
|
|
|
|
|
|
|
|
|
|
Non-Cash Investing
Activities
|
|
|
|
|
|
|
|
|
Right-of-use Assets
obtained in exchange for operating lease obligations
|
|
$
|
221,940
|
|
|
$
|
731,517
|
|
View original
content:http://www.prnewswire.com/news-releases/reto-eco-solutions-reports-first-half-of-2020-financial-results-301197194.html
SOURCE ReTo Eco-Solutions, Inc.