Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 103

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 3
Chunk 103
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Raw materials increased by $26,935 as of June
30, 2025 as compared to December 31, 2024.

Our finished goods increased by $172,707 as of
June 30, 2025 as compared to December 31, 2024.

Net Cash Used in Investing Activities

During the six-month period ending on June 30,
2025, we spent approximately $0.

During the six months ended June 30, 2024, we
used approximately $60.5 million to acquire property, plant and equipment, which primarily included the cost of bromine wells and the
installation of high and low voltage lines for these bromine wells, as well as the purchase of salt plants.

Net Cash Used in Financing Activities.

For the six-month period ended June 30, 2025 and
2024, we used $0.3 million to fulfil finance lease obligations. 

We believe that our available funds and cash flows
generated from operations will be sufficient to meet our anticipated ongoing operating needs and our obligations as they full due in the
next twelve (12) months.

We had available cash of approximately $7.74 million
at June 30, 2025, all which is in highly liquid current deposits earning no or little interest. We do not anticipate paying cash dividends
in the foreseeable future.

We intend to continue to focus our efforts on the activities of SCHC,
SYCI, SHSI and DCHC as these segments continue to expand within the Chinese market.

We may not be able to identify, successfully integrate
or profitably manage any businesses or business segment we may acquire, or any expansion of our business. An expansion may involve a number
of risks, including possible adverse effects on our operating results, diversion of management’s attention, inability to retain
key personnel, risks associated with unanticipated events, and the financial statement effect of potential impairment of acquired intangible
assets, any of which could have a materially adverse effect on our condition and results of operations. In addition, if competition
for acquisition candidates or operations were to increase, the cost of acquiring businesses could increase materially. We may effect an
acquisition with a target business which may be financially unstable, under-managed, or in its early stages of development or growth.
Our inability to implement and manage our expansion strategy successfully may have a material adverse effect on our business and future
prospects.

Contractual Obligations and Commitments

We have no significant contractual obligations