Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 39

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1A
Chunk 39
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RC. If a domestic company fails to complete the filing procedures or conceals any
material fact or falsifies any major content in its filing documents, such domestic company may be subject to administrative penalties
by the CSRC, such as order to rectify, warnings, fines, and its controlling shareholders, actual controllers, the person directly in charge
and other directly liable persons may also be subject to administrative penalties, such as warnings and fines. As a listed company, we
believe that we and all of our PRC subsidiaries are not required to fulfill filing procedures and obtain

approvals from the CSRC to continue
to offer our securities or operate our business as of the date of this annual report. In addition, to date, none of us and our PRC subsidiaries
has received any filing or compliance requirements from CSRC for the listing of the Company at Nasdaq and all of its overseas offerings.
Furthermore, based on our understanding of the current PRC laws, we believe that the CSRC’s approval is not required to be obtained
for the Company’s listing on Nasdaq; however, there are substantial uncertainties regarding the interpretation and application of
the Regulation on Mergers and Acquisitions of Domestic Companies by Foreign Investors (“M&A Rules”), other PRC Laws and
future PRC laws and regulations, and there can be no assurance that any governmental agency will not take a view that is contrary to or
otherwise different from our belief stated herein.

If it is
determined in the future that the approval of the CSRC, the CAC or any other regulatory authority is required for our listing on U.S.
exchange, we may face sanctions by the CSRC, the CAC or other PRC regulatory agencies. These regulatory agencies may impose fines and
penalties on our operations in China, limit our ability to pay dividends outside of China, limit our operations in China or take other
actions that could have a material adverse effect on our business, financial condition, results of operations and prospects, as well as
the trading price of our securities.

22 

Our common stock may
be delisted from the Nasdaq under the Holding Foreign Companies Accountable Act if the PCAOB is unable to adequately inspect audit documentation
located in China. The delisting of our common stock, or the threat of their being delisted, may materially and adversely affect the value
of your investment.

The HFCAA,
was enacted on December 18, 2020. The HFCAA states if the SEC determines that a company