Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 42

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1A
Chunk 42
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 in the China and is subject to inspection by the PCAOB on a regular basis.

However,
our auditor’s working papers related to us and our subsidiaries are located in China. If our auditor is not permitted to provide
requested audit work papers located in China to the PCAOB, investors would be deprived of the benefits of PCAOB’s oversight of our
auditor through such inspections which could result in limitation or restriction to our access to the U.S. capital markets, and trading
of our securities may be prohibited under the HFCAA, which would result in the delisting of our securities from the Nasdaq.

Changes in China’s
economic, political or social conditions or government policies could have a material adverse effect on our business and operations.

Substantially
all of our assets and operations are located in the PRC. Accordingly, our business, financial condition, results of operations and prospects
may be influenced to a significant degree by political, economic and social conditions in the PRC generally. The Chinese economy differs
from the economies of most developed countries in many respects, including the level of government involvement, development, growth rate,
control of foreign exchange and allocation of resources. Although the Chinese government has implemented measures emphasizing the utilization
of market forces for economic reform, the reduction of state ownership of productive assets, and the establishment of improved corporate
governance in business enterprises, a substantial portion of productive assets in the PRC is still owned by the government. In addition,
the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies. The Chinese
government also exercises significant control over the PRC’s economic growth through allocating resources, controlling payment of
foreign currency-denominated obligations, setting monetary policy and providing preferential treatment to particular industries or companies.

While
the Chinese economy has experienced significant growth over past decades, growth has been uneven, both geographically and among
various sectors of the economy. Any adverse changes in economic conditions in the PRC, in the policies of the Chinese government or
in the laws and regulations in the PRC could have a material adverse effect on the overall economic growth of the PRC. Such
developments could adversely affect our business and operating results, lead to a reduction in demand for our services and adversely
affect our competitive position. The Chinese government has implemented various measures to encourage economic growth and guide the
allocation of resources. Some of these measures may benefit the overall Chinese economy, but may have a negative effect on us. For
example, our financial condition