Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 129

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1A
Chunk 129
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 and pursue operational improvements,
subject to board and shareholder approval.

While we are making every effort to
address the listing requirements, there can be no assurance that the Panel will determine that we have achieved compliance with Listing
Rule 5550(a)(2) within the prescribed period or that we will qualify for any additional compliance period that may be available or that
we will ultimately satisfy all applicable Nasdaq listing standards. If our common stock is delisted, it could result in:

•limited availability of market quotations for our securities;

•reduced liquidity for the Company’s securities;

•a determination that the Company’s common stock is a “penny stock” which may impose additional trading restrictions;

•a limited amount of news and analyst coverage; and

•challenges in raising capital or issuing additional securities in the future.

There can also be no assurance that
the market price of the Company’s common stock will maintain the Minimum Bid Price Requirement.

35 

The Chinese government exerts substantial
influence over the manner in which we must conduct our business activities. We are currently not required to obtain approval from Chinese
authorities to list on U.S exchanges, however, if our holding company or subsidiaries were required to obtain approval or filing in the
future and were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S.
exchange, which would materially affect the interest of the investors.

The Chinese government has exercised and can continue
to exercise substantial control to intervene on virtually every sector of the Chinese economy through regulation and state ownership,
and as a result, it can influence the manner in which we must conduct our business activities and effect material changes in our operations
or the value of the common stock we are registering in this resale. Under the current government leadership, the government of the PRC
has been pursuing reform policies which have adversely affected China-based operating companies whose securities are listed in the U.S.,
with significant policies changes being made from time to time without notice. There are substantial uncertainties regarding the interpretation
and application of PRC laws and regulations, including, but not limited to, the laws and regulations governing our business, or the enforcement
and performance of our contractual arrangements with borrowers in the event of the imposition of statutory liens, death, bankruptcy or
criminal proceedings. Our ability to operate in China may be harmed by changes in its laws and regulations, including those relating to
taxation, environmental regulations, land use rights, property and other matters. The central or