Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 34

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 34
---
 24, 2017, Gulf Resources received a letter from the People’s Government of Yangkou County, Shouguang City notifying
the Company that due to the new standards and regulations relating to safety production and environmental pollution, from certain local
governmental departments, such as the municipal environmental protection department, the security supervision department and the fire
department, its chemical enterprises would have to be relocated to a new industrial park called Bohai Marine Fine Chemical Industry Park.
Although our chemical companies were in compliance with regulations, they were also close to a residential area. As a result, the government
determined we should relocate to the Bohai park. Chemical companies that are not being asked to move into the park are being permanently
closed. Since our factories closed, the Company has secured from the government the land use rights for its chemical plant. On January
6, 2020, the Company received the environmental protection approval by the government of Shouguang City, Shandong Province for the proposed
Yuxin Chemical factory. The Company began the construction on its new chemical facilities located at Bohai Marine Fine Chemical Industrial
Park in June 2020. The construction was expected to take approximately one year and an additional six months to complete the equipment
installation and testing, however due to the COVID epidemic and electrical restrictions, the opening of the chemical factory has been
delayed. The Company has received the refrigeration and air compressor units. The company decided to delay the delivery of the rest undelivered
equipment and the opening of the factory until financial conditions in China improved and until it had visibility as to which products
would produce the best returns.

In January 2017, the
Company completed the first brine water and natural gas well field construction in Daying located in Sichuan Province and commenced trial
production in January 2019. On May 29, 2019, the Company received a verbal notice from the government of Tianbao Town, Daying County,
Sichuan Province, whereby the Company is required to obtain project approval for its well located in Daying, including the whole natural
gas and brine water project, and approvals for safety production inspection, environmental protection assessment, and to solve the related
land issue. Until these approvals have been received, the Company has had to temporarily halt trial production at its natural gas well
in Daying. In compliance with the Chinese government new policies, the Company is also required to obtain an exploration license and a
mining license for