Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 468

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7
Chunk 468
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duction in inventories was the decline in sales.

Raw materials decreased by $22,230 as of December 31,
2024, as compared to December 31, 2023.

Finished goods decreased by $239,628 as of December
31, 2024, as compared to December 31, 2023.

Net Cash Used In Investing Activities

For the fiscal year 2024, we used approximately $60.5 million
for purchase of fixed assets.

For the fiscal year 2023, we used $0 for investing activities.

Net Cash Used In Financing
Activities

For the fiscal year 2024 and 2023, 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 for the next twelve
months.

As of December 31, 2024, we had
approximately $10 million in available cash, all of which is in highly liquid current deposits yielding minimal or no 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 be able to identify,
successfully integrate or profitably manage any businesses or business segment we may acquire, or any expansion of our business. An expansion
may involve a number of risks, including possible adverse effects on our operating results, diversion of management’s attention,
inability to retain key personnel, risks associated with unanticipated events and the financial statement effect of potential impairment
of acquired intangible assets, any of which could have a materially adverse effect on our condition and results of operations. In addition,
if competition for acquisition candidates or operations were to increase, the cost of acquiring businesses could increase materially.
We may effect an acquisition with a target business which may be financially unstable, under-managed, or in its early stages of development
or growth. Our inability to implement and manage our expansion strategy successfully may have a material adverse effect on our business
and future prospects.

Going Concern Consideration

 The
consolidated financial statements are prepared on the going concern basis, meaning that the enterprise is expected to realize the
assets and settle the liabilities through normal business operations. However, the going concern of the enterprise relies on many
factors, such as profitable operations, generating operating cash flows, obtaining financing, etc.  The