Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 268

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 5
Chunk 268
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 This also includes
approvals for safety production inspection, environmental protection assessment, and to solve the related land issue. Until these approvals
are obtained, the Company must temporarily suspend trial production at its natural gas well in Daying. Additionally, in compliance with
the Chinese government new policies, the Company is required to obtain an exploration license for bromine and a mining license for natural
gas. Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in Promoting the Reform of Mineral Resources Management
(Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020, which came into effect on May 1, 2020, privately owned
enterprises are allowed to participate in the natural gas production. The Company is engaged in ongoing discussions with the government
of Daying County regarding the establishment of a joint venture for the exploration and production of natural gas and brine products in
Sichuan.

As a result of our
acquisitions of SCHC and SYCI, our historical consolidated financial statements and the information presented below reflects the
accounts of SCHC、SYCI and DCHC, the consolidated financial
statements and the information presented below as of and for the year ended December 31, 2024. The following discussion should be
read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.

Flood Prevention Project

In August
2023, the Company initiated its preventive measures for safeguarding its bromine facilities. Our strategy involves the renovation of the
channels of four major rivers within our mining area, encompassing the tributary of the Mihe River. The aim is to prevent flooding that
could harm the wells, aqueducts and crude salt pans at our plant. In December 2023, the Company completed this flood prevention project.
As of December 31, 2023, we incurred $46,510,856 in other expenses for the project.

The cost incurred for four major
rivers are: (1) Liansigou Section for $8,057,722;(2) Mi River Section for $20,168,321;(3) Ta River Section $10,070,033; (4) Weitan River
Section for $8,214,780.

37 

RESULTS OF OPERATIONS.

Year ended December 31, 2024 as compared to year ended
December 31, 2023

    Years ended 

    December 31,