Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 455

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7
Chunk 455
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 in both the
short and long-term. The Company also expressed that although it believed its facilities were fully compliant at the time, the Company
did not know how its facilities would fare under the new rules. Teams of inspectors from the government were sent to many provinces to
inspect all mining and manufacturing facilities. The local government requested that facilities be closed, so that the facilities could
undergo the inspection and analysis in the most efficient manner by inspectors’ team. As a result, our facilities were closed on
September 1, 2017.

The Company believes that this
is another step by the government to improve the environment. It further believes the goal of the government is not to close all plants,
but rather to codify the regulations related to project approval, land use, planning approval and environmental protection assessment
approval so that illegal plants are not able to open in the future and so that plants close to population centers do not cause serious
environmental damage. In addition, the Company believes that the Shandong provincial government wants to assure that each of its regional
and county governments has applied the Notice in a consistent manner.

The Shouguang City Bromine Association,
on behalf of all the bromine producers in Shouguang, initiated negotiations with the local government agencies. The local governmental
agencies acknowledged the facts that their initial requirements for the bromine industry did not include the project, the planning and
the land use rights approvals, which were later introduced by the provincial government as new requirements. The Company understood from
the local government that local government were coordinating with various government agencies to solve these three outstanding approval
issues in a timely manner and that all impacted bromine plants will not be allowed to commence production prior to obtaining those approvals.
In February 2019, the Company received a notification from the local government of Yangkou County that its Factories No. 1, No. 4, No.
7 and No. 9 passed inspection and were allowed to resume operations. In April 2019, Factory No. 1 and No. 7 resumed operations.

Subsequently, the Company received
an approval dated on February 27, 2020 issued by the local governmental authority which allows us to resume production after the winter
temporary closure. Further, the Company received another approval from the Shouguang Yangkou People’s Government dated on March
5, 2020 to resume production at its bromine factories No.1, No. 4, No.7 and