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

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 11
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.11 million. As a result, the deficit was $1.44 million,
and it has suffered losses for the nine months ended by September 30, 2025. If it is unable to raise
additional funds, it may need to take measures such as cutting administrative and operational cost and save funds. 

If there are significant doubts regarding the company's ability to
continue operations, the company is attempting to alleviate such concerns through measures such as controlling operating expenses, shifting
business focus to revenue-generating activities, obtaining authorization from domestic banks and other financial institutions, and seeking
equity or debt financing. Additionally, the company will also obtain financial support commitments from related parties. However, these
situations still pose significant doubts regarding the company's ability to continue operations. The financial statements do not consider
the potential impact on the recoverability of assets, classification, and amounts and classification of liabilities if the company is
unable to continue operations.

(c)       
Nature of Business

The Company manufactures and trades bromine through
its wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited (“SCHC”); manufactures and trades crude salt
through its wholly-owned subsidiary, SHSI; and manufactures chemical products for use in the oil industry, pesticides, paper manufacturing
industry and for human and animal antibiotics through its wholly-owned subsidiary, Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”)
in the People’s Republic of China (“PRC”). DCHC was established to further explore and develop natural gas and brine
resources (including bromine and crude salt) in the PRC. DCHC’s business commenced trial operation in January 2019 but has temporarily
suspended production insince May 2019 as required by the government to obtain project approval (see Note 1 (b)(iii)).

(i) Bromine and Crude Salt Segments

In February 2019, the Company received a notification
from the local government of Yangkou County that its Factory No. 1, No. 4, No. 7 and No. 9 passed inspection and could resume operations.
In April 2019, Factory No.1, and Factory No.7 resumed operation.

On November 25, 2019, the government of Shouguang City issued a notice
ordering all bromine facilities in Shouguang City, including the Company’s bromine facilities, including Factory No. 1 and Factory