Exhibit 99.1

ReTo Eco-Solutions, Inc. Announces Second Half and Full Year 2017 Financial Results

BEIJING--(BUSINESS WIRE)--ReTo Eco-Solutions, Inc. (NASDAQ:RETO) (“ReTo” or the “Company”), a manufacturer and distributor of eco-friendly construction materials as well as equipment used for the production of these eco-friendly construction materials, and consultation, design, project implementation and construction of urban ecological environments including those for the purpose of capturing, controlling and reusing rainwater, commonly called “sponge cities”, today announced its financial results for the six and twelve months ended December 31, 2017.

Second Half 2017 Financial Highlights (all comparisons to prior year unless noted)

“We are very pleased to report strong financial results for the year of 2017 with revenues growing by 9.6% to $35.6 million and net income attributable to ReTo increasing by 45.7% to $6.0 million, respectively, both were record highs since our inception,” said Mr. Hengfang Li, Chairman and Chief Executive Officer of ReTo.

Mr. Li continued, “While 2017 was clearly a banner year for ReTo highlighted by our successful IPO in November 2017, we expect the growth momentum to continue in the near future as we continue to increase market penetration of existing products, develop new products, and expand our geographical outreach in both domestic and international markets.”

Second Half 2017 Unaudited Financial Results

Revenues

Total revenues increased by $1.6 million, or 8.6%, to $20.6 million for the second half of 2017 from $18.9 million for the same period of the prior year. The increase in total revenues was primarily due to increased sales for construction materials and technological consulting and other services and partially offset by decrease in sales for machinery and equipment.

The machinery and equipment we manufacture mostly consist of large-scale automatic environmental protection equipment with hydraulic integration, which can be used to produce various types of eco-friendly construction materials and meet the needs of various ecological projects. Revenues from the machinery and equipment segment decreased by $0.3 million, or 3.8%, to $7.5 million for the second half of 2017 from $7.8 million for the same period of the prior year.

Construction materials are mostly eco-friendly made from mining waste (iron tailings) and fly-ash and used for ground works, landscaping, hydraulic engineering projects and wall projects. Revenues from construction materials increased by $0.9 million, or 8.1%, to $11.4 million for the second half of 2017 from $10.6 million for the same period of the prior year. The increase in revenues from construction materials was related to increases in both sales volume and average selling price.

Municipal construction includes such projects as sponge city projects, sewage pipeline construction, public plaza construction, and landscaping. Our environmental-friendly construction materials such as brick and block may be used in these municipal construction projects as required by local governments. Revenues from municipal construction projects were $0.3 million related to one municipal construction project for the second half of 2017. We did not book revenues from municipal construction projects in the second half of 2016.

We started to provide environmental-protection related consulting services to customers in the second half of 2016. Our subsidiaries Beijing REIT and Dingxuan provided such services to customers by assisting them in planning the environmental-protection projects, providing market research and feasibility reports reviewing and assisting customers to finalize the design, installation, testing and inspection, as well as providing employee training services. Revenues from technological consulting and other services increased by $0.8 million, or 151.7%, to $1.4 million for the second half of 2017 from $0.5 million for the same period of the prior year.

Revenues from machinery and equipment, construction materials, municipal construction projects and technological consulting and other services accounted for 36.5%, 55.7%, 1.2%, and 6.6%, respectively, of total revenues in the second half of 2017, compared to 41.2%, 55.9%, 0, and 2.9%, respectively, of total revenues in the same period of the prior year.

Cost of goods sold

Total cost of goods sold decreased by $1.0 million, or 9.0%, to $10.1 million for the second half of 2017 from $11.1 million for the same period of the prior year. The decrease in cost of goods sold was mainly due to decrease in per unit costs related to our construction materials business. As a percentage of revenues, total cost of goods sold was 49.3% in the second half of 2017, compared to 58.9% for the same period of the prior year.

Costs of goods sold for machinery and equipment, construction materials, municipal construction projects and technological consulting and other services were $3.7 million, $5.8 million, $0.2 million, and $0.4 million, respectively, for the second half of 2017, compared to $2.6 million, $8.2 million, $0, and $0.3 million, respectively, for the same period of the prior year.

Gross profit and gross margin

Overall gross profit increased by $2.6 million, or 34.0%, to $10.4 million for the second half of 2017 from $7.8 million for the same period of the prior year. Gross profits for machinery and equipment, construction materials, municipal construction projects and technological consulting and other services were $3.8 million, $5.6 million, $0.1 million, and $0.9 million, respectively, for the second half of 2017, compared to $5.2 million, $2.4 million, $0, and $0.2 million, respectively, for the same period of the prior year.

Overall gross margin was 50.7% for the second half of 2017, compared to 41.1% for the same period of the prior year. Gross margins for machinery and equipment, construction materials, municipal construction projects and technological consulting and other services were 50.6%, 49.0%, 36.0%, and 68.2%, respectively, for the second half of 2017, compared to 66.6%, 22.4%, $0, and 38.4%, respectively, for the same period of the prior year.

Operating expenses  

Selling expenses increased by $0.2 million, or 15.8%, to $1.2 million for the second half of 2017 from $1.0 million for the same period of the prior year. The increase in selling expenses was mainly due to higher sales commission and increased marketing expenses in the second half of 2017. As a percentage of revenues, selling expenses were 5.8% for the second half of 2017, compared to 5.5% for the same period of the prior year.

General and administrative expenses increased by $0.5 million, or 21.1%, to $2.9 million for the second half of 2017 from $2.4 million for the same period of the prior year. The increase in general and administrative expenses was mainly due to higher bad debt expense incurred in the second half of 2017. As a percentage of revenues, general and administrative expenses were 13.9% for the second half of 2017, compared to 12.5% for the same period of the prior year.

Research and development expenses increased by $32,321, or 10.3%, to $0.35 million for the second half of 2017 from $0.31 million for the same period of the prior year. As a percentage of revenues, research and development expenses were 1.7% for the second half of 2017 and 2016.

Total operating expenses increased by $0.7 million, or 18.7%, to $4.4 million for the second half of 2017 from $3.7 million for the same period of the prior year. As a percentage of revenues, operating expenses were 21.4% for the second half of 2017, compared to 19.6% for the same period of the prior year.

Operating income and operating margin  

Income from operations increased by $1.9 million, or 47.9%, to $6.0 million for the second half of 2017 from $4.1 million for the same period of the prior year. Operating margin was 29.3% for the second half of 2017, compared to 21.5% for the same period of the prior year.

Other income (expenses)  

Net other expenses were $0.3 million, including interest expense of $0.4 million and other income of $0.1 million, for the second half of 2017. As a comparison, net other expenses were $1.0 million, including interest expense of $0.7 million and other expenses of $0.3 million, for the same period of the prior year. The decrease of interest expense was due to less borrowings during the second half of 2017.

Income before income taxes   

Income before income taxes increased by $2.7 million, or 89.4%, to $5.7 million for the second half of 2017 from $3.0 million for the same period of the prior year. The increase was primarily attributable to increased sales and gross margin and partially offset by the increased operating expense as discussed above.

Provision for income taxes

Provision for income taxes was $1.9 million for the second half of 2017, compared to $1.1 million for the same period of the prior year. The effective tax rates were 33.5% and 36.9% for the second half of 2017 and 2016, respectively.

Net income and EPS

As a result, net income increased by $1.9 million, or 99.6%, to $3.8 million for the second half of 2017 from $1.9 million for the same period of the prior year. After deducting for non-controlling interest, net income attributable to RETO was $3.3 million, or $0.20 per basic and diluted share, for the second half of 2017. This compared to $1.8 million, or $0.10 per basic and diluted share, for the same period of the prior year.

Revenues from the machinery and equipment segment increased by $1.3 million, or 10.0%, to $14.5 million for 2017 from $13.2 million for 2016. We sold 18 production lines and 33 large equipment sets to customers during 2017, compared to 32 production lines and 20 large equipment sets sold during 2016.

Revenues from construction materials increased by $1.0 million, or 5.6%, to $19.5 million for 2017 from $18.4 million for 2016. The increase in revenues from construction materials was related to increases in both sales volume and average selling price. We sold approximately 5.0 million square meters of bricks and block during 2017 and 2016, respectively.

Revenues from municipal construction projects was $0.3 million related to one municipal construction project for 2017. The Company did not book revenues from municipal construction projects in 2016.

Revenues from technological consulting and other services increased by $0.5 million, or 63.2%, to $1.4 million for 2017 from $0.8 million for 2016.

Revenues from machinery and equipment, construction materials, municipal construction projects and technological consulting and other services accounted for 40.7%, 54.7%, 0.7%, and 3.8%, respectively, of total revenues in 2017, compared to 40.6%, 56.8%, $0, and 2.6%, respectively, of total revenues in 2016.

Cost of goods sold

Total cost of goods sold decreased by $0.7 million, or 3.7%, to $17.6 million for 2017 from $18.3 million for 2016. The decrease in cost of goods sold was mainly due to decrease in per unit costs related to our construction materials business. As a percentage of revenues, total cost of goods sold was 49.5% in 2017, compared to 56.4% for the prior year.

Costs of goods sold for machinery and equipment, construction materials, municipal construction projects and technological consulting and other services were $6.7 million, $10.3 million, $0.1 million, and $0.4 million, respectively, in 2017, compared to $5.4 million, $12.3 million, $0, and $0.5 million, respectively, in 2016.

Gross profit and gross margin

Overall gross profit increased by $3.8 million, or 26.9%, to $18.0 million for 2017 from $14.2 million for 2016. Gross profits for machinery and equipment, construction materials, municipal construction projects and technological consulting and other services were $7.8 million, $9.2 million, $0.1 million, and $0.9 million, respectively, in 2017, compared to $7.7 million, $6.1 million, $0, and $0.3 million, respectively, in 2016.

Overall gross margin was 50.5% for 2017, compared to 43.6% for the prior year. Gross margins for machinery and equipment, construction materials, municipal construction projects and technological consulting and other services were 53.8%, 47.1%, 36.0%, and 68.2%, respectively, in 2017, compared to 58.8%, 33.1%, 0, and 38.2%, respectively, in 2016.

Operating expenses  

Selling expenses increased by $0.2 million, or 13.7%, to $1.8 million for 2017 from $1.6 million for 2016. The increase in selling expenses was mainly due to higher sales commissions and increased marketing expenses in 2017. As a percentage of revenues, selling expenses were 5.1% for 2017, compared to 4.9% for the prior year.

General and administrative expenses increased by $1.4 million, or 36.9%, to $5.3 million for 2017 from $3.9 million for 2016. The increase in general and administrative expenses was mainly due to higher bad debt expense incurred in 2017. As a percentage of revenues, general and administrative expenses were 14.9% for 2017, compared to 12.0% for 2016.

Research and development expenses increased by $0.1 million, or 19.8%, to $0.6 million for 2017 from $0.5 million for 2016. As a percentage of revenues, research and development expenses were 1.7% for 2017, compared to 1.6% for 2016.

Total operating expenses increased by $1.7 million, or 29.3%, to $7.7 million for 2017 from $6.0 million for 2016. As a percentage of revenues, operating expenses were 21.7% for 2017, compared to 18.4% for 2016.

Operating income and operating margin  

Income from operations increased by $2.1 million, or 25.2%, to $10.3 million for 2017 from $8.2 million for 2016. Operating margin was 28.8% for 2017, compared to 25.3% for 2016.

Other income (expenses)  

Net other expenses were $0.8 million, including interest expense of $1.0 million and other income of $0.2 million, for 2017. As a comparison, net other expenses were $1.7 million, including interest expense of $1.5 million and other expenses of $0.3 million, for 2016. The decrease of interest expense was due to less borrowings during 2017.

Income before income taxes   

Income before income taxes increased by $3.0 million, or 45.7%, to $9.4 million for 2017 from $6.5 million for 2016. The increase was primarily attributable to increased sales and gross margin and partially offset by the increased operating expense as discussed above.

Provision for income taxes

Provision for income taxes was $2.8 million for 2017, compared to $2.0 million for 2016. The effective tax rates were 29.3% and 30.2% for 2017 and 2016, respectively.

Net income and EPS

As a result, net income increased by $2.1 million, or 47.6%, to $6.6 million for 2017 from $4.5 million for 2016. After deducting for non-controlling interest, net income attributable to RETO was $6.0 million, or $0.35 per basic and diluted share, for 2017. This compared to $4.1 million, or $0.25 per basic and diluted share, for 2016.

Financial Conditions

As of December 31, 2017, we had cash and cash equivalents of $10.9 million and restricted cash of $0, compared to $1.6 million and $0.2 million, respectively, at the end of 2016. Total loan balance was $15.0 million as of December 31, 2017, compared to $16.4 million at the end of 2016. Total working capital was $7.0 million as of December 31, 2017, versus working capital deficit of $7.0 million at the end of 2016.

Net cash provided by operating activities was $2.5 million for 2017, compared to $3.9 million for 2016. Net cash used in investing activities was $7.4 million for 2017, compared to $9.3 million for 2016. During 2017, the Company paid $4.6 million on the construction in progress projects to build a new factory facility and purchase of equipment for the Company’s subsidiary REIT Xinyi. Net cash provided by financing activities was $14.2 million for 2017, compared to $6.7 million for 2016.

Recent Developments

In December 2017, we closed our initial public offering (“IPO”) of 3,220,000 shares of common shares at a public offering price of $5.00 per share. The gross proceeds from the offering were approximately $16.1 million before deducting placement agent commissions and other offering expenses, resulting in net proceeds of approximately $14.3 million. In connection with the offering, the Company’s common shares began trading on the NASDAQ Capital Market beginning on November 29, 2017 under the symbol “RETO”.

About Reto Eco-Solutions, Inc.

Founded in 1999 and headquartered in Beijing, ReTo is a manufacturer and distributor of eco-friendly construction materials (aggregates, bricks, pavers and tiles), made from mining waste (iron tailings) and fly-ash, as well as equipment used for the production of these eco-friendly construction materials. The Company also provides a full range of eco-friendly project solutions, including consultation, design, project implementation and construction, relating to all stages of sponge-city projects for customers. The Company’s clients are located or have been located in mainland China, and internationally, including Canada, the United States, Middle East, India, Maldives North Africa and Brazil.

Notice

Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. 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 Company’s continued growth and business outlook; 2) the Company’s ability to increase market penetration of existing products; 3) the Company’s ability to develop new products; and 4) the Company’s ability to expand its geographical outreach in domestic and international markets 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 construction in China and internationally; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and internationally 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.

For more information, please contact:

At the Company:

Email: ir@retoeco.com

Investor Relations:

Tony Tian, CFA
Weitian Group LLC
Email: tony.tian@weitian-ir.com

Phone: +1-732-910-9692