ReTo Eco-Solutions, Inc. (RETO): Business Model Canvas [Dec-2025 Updated]

You're digging into ReTo Eco-Solutions, Inc.'s (RETO) new playbook after that major strategic pivot late last year, and honestly, the numbers tell a fascinating, if complex, story. We're looking at a company balancing high-end intelligent equipment sales-like the RT18A production line-with a brand-new, cash-intensive craft beer venture, cemented by the $19.89 million MeinMalzeBier acquisition. To be fair, while trailing twelve-month revenue as of June 30, 2025, sits at $2.11 million, Selling, General & Admin expenses were already $5.16 million TTM, showing the cost of this diversification effort. Below, you'll find the full nine-block Business Model Canvas that maps out exactly how RETO is trying to stitch these disparate value propositions-from Middle East equipment clients to Chinese beer drinkers-into a cohesive, profitable operation, so let's see if the structure supports the ambition.

ReTo Eco-Solutions, Inc. (RETO) - Canvas Business Model: Key Partnerships

You're looking at the core relationships ReTo Eco-Solutions, Inc. relies on to deliver its value propositions, especially as the company diversifies its intelligent equipment offerings.

Long-standing equipment clients, like the one in the United Arab Emirates (UAE)

This relationship shows enduring client trust in ReTo Eco-Solutions' high-end equipment. The subsidiary, Beijing REIT Equipment Technology Co., Ltd., completed the successful shipment of the RT18A fully automatic production line to this client in the United Arab Emirates on August 12, 2025. This client first introduced ReTo Eco-Solutions' RT15A fully automatic production line as early as 2009. The latest delivery, the RT18A, is described as ReTo Eco-Solutions' latest high-end intelligent manufacturing solution.

MeinMalzeBier Holdings Limited for craft beer distribution

ReTo Eco-Solutions, Inc. executed a strategic move into the beverage market by acquiring a 51% equity interest in MeinMalzeBier Holdings Limited on April 25, 2025. MeinMalzeBier Holdings Limited, through its PRC operating subsidiaries, handles the marketing and sales of craft beer and craft beer machines in China. This acquisition is expected to create synergies with ReTo Eco-Solutions' proprietary smart craft beer machines launched earlier in 2025.

Here's a quick look at the key partnership transaction details:

Partner Entity	Transaction Type	Date of Key Event	Key Metric/Stake
Long-standing UAE Client	Equipment Shipment (RT18A)	August 12, 2025	Repeat customer since 2009 (initial RT15A purchase)
MeinMalzeBier Holdings Limited	Acquisition (Closed)	April 25, 2025	51% equity interest acquired

External advisors for technology development and industrial operations

ReTo Eco-Solutions relies on external advisors to support its R&D and operational scaling. The company's CEO, Mr. Xinyang Li, noted a commitment to driving continuous technological innovation.

• Use of advanced automation control technology in new equipment.
• Integration of an intelligent management system.
• Focus on highly efficient, energy-saving design for equipment.

Suppliers for raw materials and components for equipment manufacturing

The manufacturing of ecological environment protection equipment and intelligent equipment requires a stable supply chain for raw materials and components. The successful shipment of the RT18A line underscores the company's ability to manage its supply chain to meet delivery schedules.

• Supply chain stability supports the manufacture of equipment like the RT18A production line.
• Component sourcing supports the production of intelligent equipment.

Finance: draft 13-week cash view by Friday.

ReTo Eco-Solutions, Inc. (RETO) - Canvas Business Model: Key Activities

Research, development, and manufacturing of intelligent equipment

ReTo Eco-Solutions, Inc. engages in the research, development, and production of intelligent equipment, including smart craft beer machines and solid waste treatment solutions and equipment. The company announced in August 2025 the successful shipment of the RT18A fully automatic production line to a long-standing client in the United Arab Emirates. This equipment is described as ReTo Eco-Solutions, Inc.'s latest high-end intelligent manufacturing solution. The company's focus shifted following the strategic divestment of its eco-friendly construction materials and ecological restoration projects on December 31, 2024.

Sales and distribution of equipment and accessories globally

The sales and distribution of equipment and accessories is a primary continuing operation. ReTo Eco-Solutions, Inc. reported revenue of $1,049,341 for the six months ended June 30, 2025, which represented a 37% increase over the same period in 2024, driven by equipment sales among other continuing operations. The company's market focus for equipment sales includes domestic customers throughout China and international customers mainly in Southeast Asia, the Middle East, and Africa. The Machinery and Equipment sales segment is where the company earns most of its revenue, with the majority derived from China.

Craft beer production, sales, and distribution in China

ReTo Eco-Solutions, Inc. expanded into the craft beer sector through the acquisition of a 51% equity interest in MeinMalzeBier Holdings Limited, finalized on April 25, 2025. The total acquisition consideration was valued at $19.89 million, structured as $3.978 million in cash and $15.912 million in ReTo Eco-Solutions, Inc.'s Class A ordinary shares. MeinMalzeBier, a craft beer and beer machine seller in China, reported revenues of $111,460 in 2024. This activity aligns with the earlier 2025 launch of ReTo Eco-Solutions, Inc.'s proprietary smart craft beer machines.

The following table outlines the revenue drivers based on the first half of 2025 performance:

Revenue Driver Segment	H1 2025 Revenue Contribution Context	Key Financial Metric
Equipment Sales (Continuing)	Drove a significant portion of the 37% revenue increase in H1 2025	H1 2025 Revenue: $1,049,341
Craft Beer Sales (New/Acquired)	Contributed to the continuing operations revenue growth	MeinMalzeBier 2024 Revenue: $111,460

Providing technical consultation and engineering support services

ReTo Eco-Solutions, Inc. provides technical support and consulting services. This is categorized as one of the operating segments, Technology Consulting and other services. The company offers consultation, design, project implementation, and installation of its equipment and related parts, along with engineering support and technical advice.

ReTo Eco-Solutions, Inc. (RETO) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets ReTo Eco-Solutions, Inc. (RETO) relies on to run its business as of late 2025. This is where the real value, or the real strain, often shows up.

Intellectual property and technical know-how in intelligent equipment

ReTo Eco-Solutions, Inc. focuses on the research, development, manufacture, and sale of ecological environment protection equipment and intelligent equipment. The company also provides consultation, design, implementation, installation, engineering support, and technical advice services. The strategic move into smart craft beer machines is supported by this existing technical base.

Manufacturing facilities and production lines

The manufacturing capability is evidenced by the successful shipment of the RT18A Production Line to a client in the UAE in August 2025. The company's operations are based in China.

The MeinMalzeBier brand and its distribution network

The acquisition of a 51% equity interest in MeinMalzeBier Holdings Limited on April 25, 2025, was specifically intended to leverage MeinMalzeBier's established sales network in China. This network is a key resource for ReTo Eco-Solutions' expansion into the beverage market.

Cash and equity used for the $19.9 million MeinMalzeBier acquisition

The acquisition of the 51% stake in MeinMalzeBier Holdings Limited closed on April 25, 2025, for a total consideration of $19.9 million. This transaction directly impacted the company's cash position and equity structure. The company's overall Market Cap as of late 2025 was reported around $10.58M. Furthermore, private placements between 2022 and 2024 generated total net proceeds of $29.39M.

Here's the quick math on how that acquisition was funded:

Component	Amount
Total Acquisition Value	$19.9 million
Cash Paid at Closing	$3.98 million
Class A Shares Issued (Value at Closing)	$15.91 million
Total Consideration (Cash + Shares)	$19.89 million

Also, ReTo Eco-Solutions' subsidiary will provide management services to MeinMalzeBier's operating companies for up to $3.98 million during the earnout period. The earnout targets for contributed profits are set at $1.6 million for 2025, $2.8 million for 2026, and $3.4 million for 2027. To be fair, the company faces financial challenges, reporting an EBITDA of -$4.3 million in the last twelve months, alongside a revenue decline of 20%.

Key financial metrics relevant to the cash/equity resource base include:

• Debt-to-Equity Ratio: 0.68
• Price-to-Book Ratio: 0.52
• Average Trading Volume: 400,872
• YTD Price Performance (as of April 25, 2025): -59.52%

Finance: draft 13-week cash view by Friday.

ReTo Eco-Solutions, Inc. (RETO) - Canvas Business Model: Value Propositions

You're looking at the core value ReTo Eco-Solutions, Inc. (RETO) delivers to its customers as of late 2025, following a significant strategic pivot away from ecological restoration projects at the end of 2024.

High-end intelligent manufacturing solutions, like the RT18A production line

ReTo Eco-Solutions, Inc. offers high-end intelligent manufacturing equipment, exemplified by the RT18A fully automatic production line, which was successfully shipped to a longstanding client in the United Arab Emirates in August 2025. This line represents the latest in intelligent manufacturing solutions from the company's subsidiary, Beijing REIT Equipment Technology Co., Ltd.

The value proposition here is built on proven technology, as this client previously adopted ReTo's RT15A fully automatic production line as early as 2009.

Equipment Model	Key Feature Integration	Client Adoption Date
RT15A	Exceptional stability, high production capacity	As early as 2009
RT18A	Advanced automation control technology, intelligent management system, energy-saving design	Shipped August 2025

Enhanced production efficiency and reduced operating costs for clients

The intelligent design of the latest equipment, such as the RT18A, is specifically engineered to deliver tangible operational improvements for the end-user. The value is quantified by the direct impact on client operations.

• Significantly enhances production efficiency.
• Reduces operating costs for large-scale manufacturing.
• Supports requirements for intelligent and environmentally sustainable manufacturing.

Diversified product offering with a craft beer segment

ReTo Eco-Solutions, Inc. has actively diversified its business portfolio, moving beyond its historical focus to include the beverage technology sector, specifically through the acquisition of a majority stake in a craft beer marketing and sales company. This move aligns with the 2025 launch of ReTo's proprietary smart craft beer machines.

The financial commitment to this diversification was substantial, closing on April 25, 2025.

Craft Beer Acquisition Metric	Value
Equity Stake Acquired in MeinMalzeBier	51%
Total Acquisition Consideration	$19.89 million
Cash Component of Acquisition	$3.978 million
Class A Share Component of Acquisition	$15.912 million
MeinMalzeBier 2024 Revenue	$111,460

This segment is already contributing to top-line growth; revenue for the six months ended June 30, 2025, was $1,049,341, representing a 37% increase year-over-year, driven by both equipment and craft beer sales. The Trailing Twelve Month (TTM) revenue as of that date was $2.11M.

Technical support and consultation for ecological environment projects

While the company strategically divested its ecological restoration projects on December 31, 2024, its structure still includes a segment for technology consulting and other services. The company continues to provide specialized support related to its equipment and historical environmental expertise.

• Operates through two segments: Machinery and Equipment sales, and Technology Consulting and other services.
• Provides consultation, design, implementation and installation of its equipment.
• Offers engineering support and technical advice and services.

The company previously provided consultation, design, project implementation, and construction for urban ecological environments focused on capturing, controlling, and reusing rainwater.

Finance: draft 13-week cash view by Friday.

ReTo Eco-Solutions, Inc. (RETO) - Canvas Business Model: Customer Relationships

You're looking at how ReTo Eco-Solutions, Inc. manages its customer interactions after the strategic divestment of its construction materials business on December 31, 2024. The focus is now sharply on equipment and the new craft beer vertical.

Dedicated, long-term relationships with key international clients

ReTo Eco-Solutions maintains relationships that span over a decade with certain international partners. For instance, a key client in the United Arab Emirates (UAE) successfully took delivery of the RT18A fully automatic production line in August 2025. This same client first introduced ReTo's RT15A fully automatic production line as far back as 2009, showing enduring trust in the product quality. The company's market focus for equipment sales includes international customers primarily in Southeast Asia, the Middle East, and Africa, alongside domestic customers in China.

The company's overall revenue for the six months ended June 30, 2025, reached $1,049,341, marking a 37% increase year-over-year for continuing operations. The trailing twelve-month revenue as of June 30, 2025, stood at $2.11M.

Transactional sales model for equipment and accessories

The core revenue driver remains the Machinery and Equipment sales segment, suggesting a predominantly transactional relationship for these major capital goods. Accessories sales likely follow this pattern, though specific recurring revenue percentages aren't explicitly detailed for this segment post-refocus.

The company's structure involves two main operational segments:

• Machinery and Equipment sales
• Technology Consulting and other services

Geographically, the majority of revenue from equipment sales is derived from China.

Retail/distribution relationship for the craft beer segment

The retail and distribution relationship for the craft beer segment is now managed through a majority-owned subsidiary. ReTo Eco-Solutions acquired a 51% equity stake in MeinMalzeBier Holdings Limited on April 25, 2025. This acquisition was valued at $19.89 million in total consideration.

Here's a breakdown of the acquisition terms and the subsidiary's recent performance:

Metric	Acquisition Term / 2024 Performance
Equity Stake Acquired	51%
Total Deal Value	$19.89 million
Cash Component of Deal	$3.978 million
MeinMalzeBier 2024 Revenue	$111,460
MeinMalzeBier 2024 Net Loss	$344,142

The integration strategy relies on leveraging MeinMalzeBier's established sales network to accelerate the adoption of ReTo's proprietary smart craft beer machines, which launched earlier in 2025.

Direct technical service and support for equipment sales

For equipment sales, ReTo Eco-Solutions provides direct engagement through technical support and consulting services. This includes providing consultation, design, implementation, and installation services, along with engineering support and technical advice. This service layer helps cement the relationship following the transactional sale of machinery.

Following a five-for-one share combination effective November 3, 2025, the issued and outstanding Class A shares were reduced from 7,327,491 to approximately 1,465,498.

ReTo Eco-Solutions, Inc. (RETO) - Canvas Business Model: Channels

Direct sales force for equipment to domestic and international clients

Metric	Value (H1 2025)	Contextual Data Point
Revenue (Six Months Ended June 30, 2025)	$1,049,341	Revenue growth of 37% compared to H1 2024
International Market Focus	Southeast Asia, Middle East, and Africa	Shipment of RT18A Production Line to UAE Client announced August 2025
Shares Outstanding (as of Dec 2, 2025)	1.47 million	Market Cap as of Dec 2, 2025: $4.27 million

Participation in international industry exhibitions, like Saudi BIG5

Event	Year of Confirmed Participation	Booth Number
Big 5 Construct Saudi	February 2024	1G82
BIG 5 Global exhibition	December 2023	SS1H140-1, SAEED Hall

No confirmed 2025 exhibition participation data is available.

Distribution network established by the MeinMalzeBier subsidiary

ReTo Eco-Solutions, Inc. acquired a 51% equity interest in MeinMalzeBier Holdings Limited on April 25, 2025.

Transaction Component	Amount/Quantity	Valuation Date
Cash Consideration Paid	$3,978,000	April 25, 2025
Class A Shares Issued	4,680,000 shares	April 25, 2025
Total Merger Consideration Value	$15,912,000	April 25, 2025

The distribution network supports marketing and sales of craft beer and smart craft beer machines in China.

Company website and direct communication for technical services

• Company provides consultation, design, implementation, installation, engineering support, and technical advice.
• Gross Margin for H1 2025 was 32.13%.
• Operating Margin for trailing twelve months ending Jun 30, 2025 was -237.17%.
• Debt / Equity ratio as of late 2025: 0.06.

ReTo Eco-Solutions, Inc. (RETO) - Canvas Business Model: Customer Segments

You're looking at the customer base for ReTo Eco-Solutions, Inc. following its strategic pivot away from its former ecological restoration and construction materials segments at the end of fiscal year 2024. The focus is now sharp: equipment sales and the craft beer business.

The company's primary market focus for both equipment and craft beer centers on domestic customers throughout China, while its equipment sales have a defined international reach.

• Domestic Chinese customers for equipment and craft beer
• International customers in Southeast Asia, the Middle East, and Africa for equipment
• Industrial clients needing high-end, intelligent production lines
• Consumers of craft beer in the Chinese market

For the first half of 2025 (six months ended June 30, 2025), revenue from these continuing operations-equipment and craft beer sales-hit $1,049,341, marking a 37% jump year-over-year from the same period in 2024. That's a solid indicator of traction in the newly defined core areas.

The international equipment segment shows concrete activity, particularly in the Middle East. For instance, in August 2025, a subsidiary shipped the RT18A fully automatic production line to a client in the United Arab Emirates (UAE). This client was a long-standing one, having first purchased ReTo's RT15A line way back in 2009, showing customer retention in that region.

The push into the craft beer space was formalized in April 2025 when ReTo Eco-Solutions, Inc. closed the acquisition of a 51% equity stake in MeinMalzeBier Holdings Limited. This move directly supports the marketing and sales of craft beer and smart beer dispensing machines within China, building on the company's earlier 2025 launch of its proprietary smart craft beer machines.

To be fair, the Chinese craft beer consumer segment is complex. While overall beer consumption in China declined by five percent in 2024, the premium beer segment managed to achieve growth of one percent in volume that same year. This suggests the target consumers for ReTo's craft beer and smart machines are likely within this premium, niche group.

Here's a quick look at how the revenue drivers stack up based on the H1 2025 performance and recent strategic moves:

Customer Segment Focus	Geographic Scope	Key 2025 Activity/Data Point
Equipment & Intelligent Production Lines	Domestic China	Primary revenue source alongside craft beer.
Equipment Sales	Middle East (e.g., UAE)	Successful shipment of RT18A fully automatic production line in August 2025.
Craft Beer & Smart Machines	Domestic China	Acquired 51% stake in MeinMalzeBier Holdings on April 25, 2025.
Premium Beer Consumers (Context)	China Market	Premium beer volume grew 1% in 2024 while total consumption fell 5%.

The industrial clients needing high-end, intelligent production lines are directly served by the equipment sales, exemplified by the RT18A delivery to the UAE client, which integrates advanced automation control technology.

Finance: draft 13-week cash view by Friday.

ReTo Eco-Solutions, Inc. (RETO) - Canvas Business Model: Cost Structure

You're looking at the cost side of the ReTo Eco-Solutions, Inc. (RETO) ledger as of late 2025. Honestly, when you see the numbers, the overhead structure really jumps out at you, especially when compared to the relatively low revenue base we're seeing.

The Selling, General & Admin expenses (SG&A) are a major cost driver. For the Trailing Twelve Months ending June 2025 (TTM Jun '25), this figure clocked in at a hefty $5.16 million. That's a significant chunk of operating cost that you need to cover before you even get to the cost of making your product or service.

Next, let's look at the direct costs. The Cost of Revenue, which covers the direct expenses tied to generating sales, was $1.43 million for the TTM ending June 2025. This number directly reflects the expenses associated with producing the ecological environmental protection equipment, intelligent equipment, and, yes, those smart craft beer machines ReTo Eco-Solutions, Inc. is involved with.

For a company focused on R&D, you'd expect to see investment there, and they are putting money into it. The Research and Development (R&D) investment for the same TTM period was approximately $0.5 million. It's important to track this, as it's the fuel for future product lines, even if it's currently dwarfed by SG&A.

When we talk about Manufacturing and operational costs for equipment and beer production, we look to the Cost of Revenue as the best proxy available for the TTM Jun '25 period, as specific line-item breakdowns for manufacturing overhead separate from Cost of Revenue aren't explicitly detailed at that granularity in the latest public filings for that exact period. The business model definitely includes costs related to the production of both environmental protection gear and the smart craft beer machines. Here's a quick look at the key cost components we have for the TTM Jun '25 period (all figures in millions USD):

Cost Component	Amount (TTM Jun '25, USD Millions)
Selling, General & Admin Expenses	$5.16
Cost of Revenue	$1.43
Research & Development	$0.5

To be fair, the structure shows that non-production overhead is the dominant cost. You'll want to keep an eye on how they manage those fixed costs, especially if revenue growth doesn't accelerate to absorb them. The total operating expenses for that TTM period were $5.68 million. This means SG&A and R&D made up the vast majority of that operating spend.

You should be tracking the trends in these expenses closely. For context, here's how the Sales, General and Admin costs looked in prior full fiscal years (in millions USD):

• FY 2024: $4.26
• FY 2023: $6.51
• FY 2022: $5.85

Finance: draft 13-week cash view by Friday.

ReTo Eco-Solutions, Inc. (RETO) - Canvas Business Model: Revenue Streams

You're looking at the top line for ReTo Eco-Solutions, Inc. as of late 2025, and the picture is one of a very focused, albeit small, revenue base following strategic shifts. For the six months ended June 30, 2025, revenue from continuing operations clocked in at $1,049,341. That figure represented a 37% increase compared to the same period last year, which is definitely a positive sign for the newly streamlined operations. Also, the trailing twelve-month revenue, looking right up to June 30, 2025, stands at $2.11 million.

The business model now clearly centers on two main areas driving these numbers, especially after the divestment of older segments at the end of 2024. Here's what's bringing in the cash now:

• Sales of equipment and accessories, which remains a core driver for the firm.
• Sales of craft beer and related smart beer machines, a newer, strategic vertical.

To give you a quick snapshot of the key revenue figures we have for this period, here's the math:

Metric	Amount	Period Ending
Revenue from Continuing Operations	$1,049,341	June 30, 2025 (H1 2025)
Trailing Twelve-Month Revenue	$2.11 million	June 30, 2025
Annual Revenue (FY 2024)	$1.83 million	December 31, 2024

The focus on the intelligent equipment, particularly the smart craft beer machines launched earlier in 2025, is intended to leverage the sales network gained through the acquisition of a majority stake in MeinMalzeBier Holdings Limited on April 25, 2025. The expectation is that this synergy will bolster cash flow and overall financial performance moving forward.