ReTo Eco-Solutions Inc (NASDAQ:RETO) is one of the biggest gainers in the pre-market session on Tuesday after the company announced the year-end business update.
Major Trigger:
New ReTo Project to Conduct Annual Iron Ore Tailings Treatment with Capacity of Three Million Tons and Anticipated Sales of Approximately RMB 280 Million
Key Highlights:
- RETO announced a new iron tailings project (the “Project”) in the Hainan Province with a three-million-ton treatment capacity, which is expectedto yield approximately RMB 280 million (approximately US$43.7 million) annual sales after reaching production.
- ReTo will design, build and manage a facility in the Hainan Province and this latest project will be responsible for the largest volume of iron tailings in Hainan. ReTo was selected by the local government based on its patented technology, ability to implement and manage secondary sorting of iron tailings, selection and use of iron ore, and expertise in recycling the remaining ore and processing it into environmentally friendly building materials. The Company expects to generate RMB 131 million (approximately US$20.4 million) of gross profit from the Project.
- The Company adopts the world’s most advanced, mature and reliable technologies for production by adopting various systems such as three-stage crushing, two-stage screening, sand making and beneficiation. The remaining material from the Company’s production can also be used as an aggregate to produce building materials.
Key Quote:
Mr. Hengfang Li, ReTo’s Chairman and Chief Executive Officer, said, “This is a great way for us to start 2021 as we continue to build on our business momentum from 2020. We have been a leader in Hainan’s ecological and environmental protection industry for the past ten years. The construction of this latest project will help us build excellent reputation and improve track-record of success in the region.
Market Reaction
As of 8:40, RETO is soared 26% to $1.47. So far more than 3.42 million shares have exchanged hands.
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