Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 109

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 3
Chunk 109
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Inventory

Our inventory consists of the following:

    September 30, 2025 
    December 31, 2024

    % of total 
      
    % of total
  
    Raw materials 
    $30,870  
     6% 
    $10,610  
     3%
  
    Finished goods 
     451,842  
     94% 
     304,761  
     97%
  
    Total 
    $482,712  
     100% 
    $315,371  
     100%

The net inventory level
                                                                                              as of September 30, 2025 increased by $167,341, as compared to the net inventory level as of December 31, 2024. The main reason for
                                                                                              the increase in inventory is to ensure the timely demands of customers, thereby increasing the stock.

Raw materials increased by $20,260 as of September
30, 2025 as compared to December 31, 2024.

Our finished goods increased by $147,081 as of
September 30, 2025 as compared to December 31, 2024.

Net Cash Used in Investing Activities

During the nine months ended September 30, 2025, the Company carried
out and completed an update and renovation on them during year 2025, with a total cost of $8,673,384.

For the nine-month period ended September 30,
2024, we used approximately $60.5 million to the flood prevention project aiming to prevent flooding that could harm the wells, aqueducts
and crude salt pans at our plant.

Net Cash Used in Financing Activities

For the nine-month period ended September 30,
2025 and 2024, we used $0.3 million to repay 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 $5.82 million
at September 30, 2025, all of 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