Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 23

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 23
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 natural sunshine. This causes the
water to evaporate from the brine, resulting in salt being left over afterwards. Crude salt is the principal material in alkali production
as well as chlorine alkali production and is widely used in the chemical, food and beverage, and other industries.

Chemical Products

We produce chemical products through
our wholly-owned subsidiary, Shouguang Yuxin Chemical Industry Company Limited, or SYCI. At the present time, SYCI is closed pursuant
to the letter from government dated on November 24, 2017. It is being relocated to Bohai Marine Fine Chemical Industry Park, Shouguang
City. SYCI paid $8,846,282 for a 50-year lease of a piece of land for its new factories at Bohai Marine Fine Chemical Industrial Park
in December 2017 and leased another piece of land from the third party for its new chemical factory. We received the final approval for
our new chemical factory and started construction in June 2020.

13 

Historically, SYCI concentrated
its efforts on the production and sale of chemical products that are used in oil and gas field exploration, oil and gas distribution,
oil field drilling, papermaking chemical agents, inorganic chemicals and materials that are used for human and animal antibiotics. SYCI
engaged in depth study of existing products and new product research and development at the same time. SYCI’s annual production
of oil and gas field exploration products and related chemicals was over 26,000 tons, and its production of papermaking-related chemical
products was over 5,000 tons. SYCI’s annual production capacity of materials that are used for human and animal antibiotics was
over 6,800 tons.

Sales and Marketing

We have an in-house sales staff
of 7 persons. Our customers send their orders to us first. Our in-house sales staff then attempts to satisfy these orders based on our
actual production schedules and inventories on hand. Many of our customers have a long term relationship with us. We expect this to continue
due to stable demand for mineral products, however, these relationships cannot be guaranteed in the future.

Principal Customers

We sell a substantial portion
of our products to a limited number of PRC customers. Our principal customers during 2024 were Shandong Morui Chemical Company Limited,
Shandong Brother Technology Limited, and Shouguang Weidong Chemical Company Limited. We have ongoing policies in place to ensure that
sales