ReTo Eco-Solutions, Inc. (RETO) stock plummeted 9.47% in the pre-market trading session at the price of $0.86 after announcing its financial results for the first half of 2021. RETO aims to provide clean water and fertile soil to societies globally by offering a broad range of products and services.
RETO Published First Half of 2021 Earnings Report
On 27th October 2021, RETO published its financial results for the first half of the year ended on 30th June 2021, and provided corporate updates.
Chief Executive Officer of RETO, Mr. Hengfang Li, remarked that COVID-19 is responsible for the challenging first half of fiscal ended 30th June 2021. RETO has modified its strategy to refocus on science and technology-related environmental and ecological protection. They are confident about the company’s performance in traditional industries. The company is contributing to the social ecology and is creating more value for its customers and shareholders, he added.
Six Months 2021 Financial Highlights
RETO reported revenue of $2.28 million for the first half of the year ended 30th June 2021. Total revenue reduced 27% from $3.14 million for the first half of the fiscal ended 30th June 2020. As of 30th June 2021, Shareholders’ equity was $22.9 million or $0.85 per share. Shareholders’ equity was $27.9 million, or $1.16 per outstanding share, on 30th June 2020.
For the first half of fiscal 2021, machinery and equipment sales dropped by 13% to $1.18 million. RETO reported machinery and equipment sales of $1.37 million for the first half of fiscal 2020. Construction materials sales were $1.09 million during the six months ended 30th June 2021. It represents a drop of 33% from $1.63 million during the same six months of last year. Municipal construction sales declined to zero from $137 thousand during the same period of the previous year.
For the first half ended 30th June 2021, RETO reported non-cash bad debt costs of $3.6 million. Bad debt expenses were approximately $2.8 million for the first half ended 30th June 2020. The net loss was $8.86 million, or $0.34 per share, for the first half of the fiscal ended 30th June 2021. For the first half of fiscal 2020, net loss was $3.9 million or $0.10 per diluted share.