ReTo Eco-Solutions Reports Fiscal Year 2022 Financial Results.

BEIJING: ReTo Eco-Solutions, Inc. (Nasdaq: RETO) ("ReTo," "Company," "we," "our" or "us"), a provider of technology solutions, operation services for intelligent ecological environments, roadside assistance services and software development services in China, today announced its audited financial results for the fiscal year ended December 31, 2022.

Financial Highlights for the Fiscal Year 2022

Total revenue for the fiscal year 2022 increased by 80% to approximately $6.5 million, primarily due to higher machinery and equipment sales resulted from contracts for gravity separators and revenue from roadside assistance ("RSA") services and software development services, which were acquired in December 2021.

Gross profit for the fiscal year 2022 increased by 109% to approximately $0.8 million. Gross profit margin was 12% for the fiscal year 2022, as compared to 11% for the prior year.

Total net loss for the fiscal year 2022 was approximately $15.4 million, compared to approximately $22.1 million for the prior year.

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, Yunnan Province for another ecological EOD project."

Financial Results for the Fiscal Years 2022 and 2021

Revenues

Our total revenues from continuing operations increased by approximately $2.9 million, or 80%, to approximately $6.5 million for the year ended December 31, 2022 from approximately $3.6 million for the year ended December 31, 2021. Among our total revenue, revenue from third-party customers increased by approximately $2.9 million, or 86%, from approximately $3.3...