Exhibit 99.1

ReTo Eco-Solutions, Inc. Reports Full Year 2018 Audited 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 audited financial results for the twelve months ended December 31, 2018.

Revenues from our machinery and equipment segment increased by $2.97million, or 20.5%, to $17.45 million for 2018 from $14.49 million for 2017. The increase in revenues from our machinery and equipment segment was due to increased market demand for our products as a result of improved brand awareness following our successful IPO at the end of 2017. We also benefitted from more stringent environmental regulations in China that forced many companies to eliminate outdated equipment and replace it with more environmentally friendly and more advanced machinery and equipment.

Revenues from our environmental-friendly construction materials decreased by $0.65 million, or 3.3%, to $18.81 million for 2018 from $19.46 million for 2017. The decrease in revenues from construction materials was related to certain regions that implemented more stringent environmental protection regulations during 2018.

Revenues from municipal construction projects increased by $0.47 million, or 187.6%, to $0.72 million for 2018 from $0.25 million for 2017.

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 review 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 decreased by $0.77 million, or 56.6%, to $0.59 million for 2018 from $1.36 million for 2017. This decrease resulted from less consulting contacts being obtained in 2018.

Revenues from machinery and equipment, construction materials, municipal construction projects and technological consulting and other services accounted for 46.5%, 50.0%, 1.9% and 1.6%, respectively, of total revenues in 2018, compared to 40.8%, 54.7%, 0.7% and 3.8%, respectively, of total revenues in 2017.

On a geographical basis, China remained the largest market for the Company and contributed $15.87 million, or 90.9% of total revenues in 2018, compared to $12.24 million, or 84.5% of total revenues in 2017. North Africa was the second largest market and contributed $1.14 million, or 6.5% of total revenues in 2018.

Cost of goods sold

Total cost of goods sold increased by $2.67 million, or 15.1%, to $20.37 million for 2018 from $17.70 million for 2017.  The increase was mainly due to increase in per unit costs related to our construction materials business segment. As a percentage of revenues, total cost of goods sold were 54.2% for 2018, compared to 49.8% for 2017.

Costs of goods sold for machinery and equipment, construction materials, municipal construction projects and technological consulting and other services were $8.05 million, $11.60 million, $0.54 million and $0.18 million, respectively, in 2018, compared to $6.74 million, $10.37 million, $0.16 million and $0.43 million, respectively, in 2017.

Gross profit and gross margin

Overall gross profit decreased by $0.65 million, or 3.7%, to $17.20 million for 2018 from $17.85 million for 2017. Gross profits for machinery and equipment, construction materials, municipal construction projects and technological consulting and other services were $9.40 million, $7.21 million, $0.18 million and $0.41 million, respectively, for 2018, compared to $7.75 million, $9.09 million, $0.09 million and $0.93 million, respectively, for 2017.

Overall gross margin was 45.8% for 2018, compared to 50.2% for 2017. Gross margins for machinery and equipment, construction materials, municipal construction projects and technological consulting and other services were 53.9%, 38.3%, 25.4% and 69.4%, respectively, for 2018, compared to 53.5%, 46.7%, 36.0% and 68.2%, respectively, for 2017.

Operating expenses 

Selling expenses increased by $0.13 million, or 7.1%, to $1.99 million for 2018 from $1.85 million for 2017. The increase in selling expenses was mainly due to higher sales commissions and increased marketing expenses in 2018. As a percentage of revenues, selling expenses were 5.3% for 2018, compared to 5.2% for 2017.

General and administrative expenses increased by $1.04 million, or 24.7%, to $5.27 million for 2018 from $4.22 million for 2017. The increase in general and administrative expenses was mainly due to increased salaries and benefits, as well as increased consulting and professional fees. As a percentage of revenues, general and administrative expenses were 14.0% for 2018, compared to 11.9% for 2017.

Bad debt expenses increased by $1.08 million, or 122.7%, to $1.95 million for 2018 from $0.88 million for 2017. As a percentage of revenues, bad debt expenses were 5.2% for 2018, compared to 2.5% for 2017.

Research and development expenses increased by $0.15 million, or 23.5%, to $0.80 million for 2018 from $0.65 million for 2017. The increase was due to more research and development activities for our environment friendly equipment business segment in 2018. As a percentage of revenues, research and development expenses were 2.1% for 2018, compared to 1.8% for 2017.

As a result, total operating expenses increased by $2.40 million, or 31.6%, to $10.00 million for 2018 from $7.60 million for 2017. As a percentage of revenues, operating expenses were 26.6% for 2018, compared to 21.4% for 2017.

Operating income and operating margin 

Income from operations decreased by $3.05 million, or 29.8%, to $7.20 million for 2018 from $10.25 million for 2017. Operating margin was 19.2% for 2018, compared to 28.8% for 2017.

Other income (expenses) 

Net other expenses were $1.05 million, including interest expense of $1.07 million and other expense of $0.02 million, for 2018. As a comparison, net other expenses were $0.85 million, including interest expense of $1.01 million and other income of $0.16 million, for 2017.

Income before income taxes  

Income before income taxes decreased by $3.26 million, or 34.6%, to $6.15 million for 2018 from $9.41 million for 2017. The decrease was primarily due to a decrease in gross profit and increases in operating expenses as discussed above.

Provision for income taxes

Provision for income taxes was $1.58 million for 2018, compared to $2.76 million for 2017. The effective tax rates were 25.7% and 29.3% for 2018 and 2017, respectively.

Net income and EPS

Net income decreased by $2.08 million, or 31.3%, to $4.57 million for 2018 from $6.65 million for 2017. After deducting for non-controlling interest, net income attributable to RETO was $4.48 million, or $0.20 per basic and diluted share, for 2018, compared to $5.98 million, or $0.35 per basic and diluted share, for 2017.

Financial Conditions

As of December 31, 2018, the Company had cash and cash equivalents, including restricted cash, of $1.56 million, compared to $10.86 million at the end of 2017. Accounts receivable, Advance to suppliers, inventories were $14.73 million, $4.05 million and $4.63 million, respectively, as of December 31, 2018, compared to $18.50 million, $1.85 million and $1.61 million, respectively, at the end of 2017. The company had bank loans totaling $17.44 million as of December 31, 2018, compared to $14.95 million at the end of 2017. Total working capital was $8.84 million as of December 31, 2018, compared to $7.05 million at the end of 2017.

Net cash used in operating activities was $0.90 million for 2018, compared to net cash provided by operating activities of $2.53 million for 2017. Net cash used in investing activities was $11.55 million for 2018, compared to $7.37 million for 2017. Net cash provided by financing activities was $3.46 million for 2018, compared to $14.00 million for 2017.

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 in mainland China, and internationally, including Canada, the United States, Mongolia, Middle East, India, South Asia, North Africa, Maldives and Brazil.

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 its business outlook 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 call center business process outsourcing market 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.

For more information, please contact:

At the Company:

Email: ir@retoeco.com

Investor Relations:

Tony Tian, CFA
Weitian Group LLC
Email: tttian@weitianco.com

Phone: +1-732-910-9692