Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 17

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 17
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, which would result in the delisting of our securities
from the Nasdaq. See “Risk Factors - Our common stock may be delisted from the Nasdaq under the Holding Foreign Companies Accountable
Act if the PCAOB is unable to adequately inspect audit documentation located in China. The delisting of our common stock, or the threat
of their being delisted, may materially and adversely affect the value of your investment.”

9 

Closure and rectification process
of our Bromine, Crude Salt and Chemical Products factories

On September 1, 2017, the Company
received letters from the People’s Government of Yangkou Town, Shouguang City to each of its subsidiaries, Shouguang City Haoyuan
Chemical Company Limited and Shouguang Yuxin Chemical Industry Co., Limited, which stated that in an effort to improve the safety and
environmental protection management level of chemical enterprises, the plants are requested to immediately stop production and perform
rectification and improvements in accordance with the country’s new safety, environmental protection requirements. As a result,
our facilities located in Yangkou Town were closed on September 1, 2017 to allow for rectification.

Subsequently, the Safety Supervision
and Administration Department and the Environmental Protection Departments of the local government conducted inspections of every bromine
production enterprise within its jurisdiction including our facilities, in order to improve security, environmental protections, pollution,
and safety.

On September 21, 2018, the Company
received a closing notice from the People’s Government of Yangkou Town, Shouguang City informing it to close its three bromine factories
(Number 3, Number 4, and Number 11.) and not allowed to resume production. The crude salt fields surrounding these factories have been
reclaimed as cultivated or construction land and hence did not meet the requirement for bromine and crude salt co-production set by the
relevant authority. In closing these factories, the Company wrote off net book value of these factories’ property, plant and equipment
in the amount of $18,644,473 in the loss on demolition of the factory in the consolidated statements of loss for the fiscal year ended
December 31, 2018, recorded an impairment loss on the related mineral rights of these three factories of $1,284,832 included in the impairment
of property, plant and equipment in the consolidated statements of loss for the fiscal year ended December 31, 2018 and wrote off $