Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 11

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 11
---
guang
Yuxin Chemical Industry Co., Limited (“SYCI”) in the People’s Republic of China (“PRC”). DCHC was established
to further explore and develop natural gas and brine resources (including bromine and crude salt) in the PRC. DCHC commenced trial operation
in January 2019 but temporarily suspended its production in May 2019 as required by the government to obtain project approval (see Note
1 (c)(iii)).

(i) Bromine and Crude Salt Segments

In February 2019, the Company received a notification
from the local government of Yangkou County that its Factory No. 1, No. 4, No. 7 and No. 9 passed inspection and could resume operations.
In April 2019, Factory No. 1, and Factory No. 7 resumed operation.

    6 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2025

(Expressed in U.S. dollars)

(UNAUDITED)

On November 25, 2019, the government
of Shouguang City issued a notice ordering all bromine facilities in Shouguang City, including the Company’s bromine
facilities, including Factory No. 1 and Factory No. 7, to temporarily stop production from December 16, 2019 to February 10, 2020.
Subsequently, due to the coronavirus outbreak in China, the local government ordered those bromine facilities to postpone the
commencement of production. Subsequently, the Company received an approval dated February 27, 2020 issued by the local governmental
authority allowing the Company to resume production after the winter temporary closure. Further, the Company received another
approval from the Shouguang Yangkou People’s Government dated March 5, 2020 allowing the Company to resume production at its
bromine factories No. 1, No. 4, No. 7 and No. 9 in order to meet the needs of bromide products for epidemic prevention and control
(the “March 2020 Approval”). The Company’s Factories No. 1 and No. 7 commenced trial production in mid March 2020
and commercial production on April 3, 2020 and its Factories No. 4 and No. 9