Advances to Suppliers, Net

6 Months Ended

Jun. 30, 2025

Advances to Suppliers, Net [Abstract]

NOTE 8 – ADVANCES TO SUPPLIERS, NET

Advances to suppliers include prepayments for raw materials used for production of construction materials for the Company’s construction projects, which consisted of the following:

	As of June 30, 2025			As of December 31, 2024
Prepayment for raw material purchase	$	936,115		$	524,930
Less: Advance to related parties		(916	)		-
Less: Allowance for credit losses		-			(2,740	)
Advances to suppliers, net	$	935,199		$	522,190

The Company’s suppliers generally require refundable prepayments from the Company before delivery of goods or services. It usually takes 3 to 6 months for the suppliers to deliver raw materials for the Company equipment production and takes up to 6 to 12 months for the suppliers to deliver the construction materials. The prepayment is necessary to secure the supply in the market or secure a favorable price.

The changes of allowance for doubtful accounts for the six months ended June 30, 2025 and the year ended December 31, 2024 are as follows:

	June 30, 2025			December 31, 2024
Beginning balance	$	2,740		$	2,817
Recovery		(2,758	)		-
Foreign exchange translation		18			(77	)
Ending balance	$	-		$	2,740

ReTo Eco-Solutions, Inc. 6-K