Company: GURE
Filing Date: 2025-09-22
Form Type: S-3/A
Source: 0001193805-25-001326
Chunk: 20

Company: GULF RESOURCES, INC.
Filing Date: 2025-09-22
Form: S-3/A
Chunk 20
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 and the CSRC
may take a view that is contrary to our understanding of the Trial Measures. If either our Company or our PRC Subsidiaries are required
by the CSRC to submit and complete the filing procedures of this offering and listing, we cannot assure you that we will be able to complete
such filings in a timely manner, or even at all, which could significantly limit or completely hinder our ability to offer or continue
to offer securities to investors and cause the value of such securities to significantly decline or be worthless. Any failure by us to
comply with such filing requirements under the Trial Measures may result in rectification, warnings, and a fine between RMB 1 million
and RMB 10 million on our PRC Subsidiaries, which could adversely and materially affect our business operations and financial outlook
and could cause the value of our common stock to significantly decline or, in extreme cases, become worthless.

We may rely on dividends and other distributions on equity paid by our PRC Subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our PRC Subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business.

We rely principally on dividends and other distributions
on equity from our PRC Subsidiaries for our cash requirements, including for services of any debt we may incur.

Our PRC Subsidiaries’ ability to distribute
dividends is based upon their distributable earnings. Current PRC regulations permit our PRC Subsidiaries to pay dividends to their respective
shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In
addition, each of our PRC Subsidiaries, as an FIE, is required to draw 10% of its after-tax profits each year, if any, to fund a common
reserve, which may stop drawing its after-tax profits if the aggregate balance of the common reserve has already accounted for over 50
percent of its registered capital. These reserves are not distributable as cash dividends. If our PRC Subsidiaries incur debt on their
own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments to us.
Any limitation on the ability of our PRC Subsidiaries to distribute dividends or other payments to their respective shareholders could
materially and adversely limit our ability to grow