Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 21

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 21
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antibiotics. We conduct all of our operations in China.

Bromine and Crude Salt

We manufacture and distribute
bromine through our wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited, or SCHC. Bromine is a halogen element. It
is a red volatile liquid at standard room temperature which has reactivity between chlorine and iodine. Elemental bromine is used to manufacture
a wide variety of bromine compounds used in industry and agriculture. Bromine is also used to form intermediates in organic synthesis,
which is somewhat preferable over iodine due to its lower cost. Bromine is commonly used in brominated flame retardants, fumigants, water
purification compounds, dyes, medicines and disinfectants.

The extraction of bromine in the
Shandong Province is limited by the provincial government to licensed operations. We hold one such license. As part of our business strategy,
it is our plan to continue acquiring smaller scaled and unlicensed producers and to use our bromine to expand our downstream chemical
operations.

Location of Production Sites

Our production sites are located
in the Shandong Province in northeastern China. The productive formation (otherwise referred to as the “working region”),
extends from latitude N 36°56’ to N 37°20’ and from longitude E 118°38’ to E 119°14’, in the north
region of Shouguang city, from the Xiaoqing River of Shouguang city to the west of the Dan River, bordering on Hanting District in the
east, from the main channel of “Leading the Yellow River to Supply Qingdao City Project” in the south to the coastline in
the north. The territory is classified as coastal alluvial – marine plain with an average height two to seven meters above the sea
level. The terrain is relatively flat.

12 

Geological background of this region

The Shandong Province working
region is located to the east of Lubei Plain and on the south bank of Bohai Laizhou Bay. The geotectonic location bestrides on the North
China Platte (I) and north three-level structure units, from west to east including individually the North China Depression, Luxi Plate,
and Jiaobei Plate. Meanwhile, 4 V-level structure units including the Dongying Sag of Dongying Depression (IV) of North China Depression,
the Buried Lifting Area of