Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 484

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7A
Chunk 484
---
's ability to continue operations, the company is attempting to alleviate such concerns
through measures such as controlling operating expenses, shifting business focus to revenue-generating activities, obtaining authorization
from domestic banks and other financial institutions, and seeking equity or debt financing. Additionally, the company will also obtain
financial support commitments from related parties. However, these situations still pose significant doubts regarding the company's ability
to continue operations. The financial statements do not consider the potential impact on the recoverability of assets, classification,
and amounts and classification of liabilities if the company is unable to continue operations.

(c)      Nature of Business

The Company
manufactures and trades bromine through its wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited
(“SCHC”) manufactures and trades crude salt through its wholly owned subsidiary, SHSI; and manufactures chemical
products for use in the oil industry, pesticides, paper manufacturing industry and for human and animal antibiotics through its
wholly- owned subsidiary, Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”) in the People’s Republic of
China (“PRC”). DCHC was established to further explore and develop natural gas and brine resources (including bromine
and crude salt) in the PRC. DCHC’s business commenced trial operation in January 2019 but suspended production temporarily in
May 2019 as required by the government to obtain project approval (see Note 1 (c)(iii)).

(i)Bromine and Crude Salt Segments

In February 2019, the Company
received a notification from the local government of Yangkou County that its Factory No. 1, No. 4, No. 7 and No. 9 passed inspection and
could resume operations. In April 2019, Factory No.1, and Factory No.7 resumed operation.

On November 25, 2019, the government
of Shouguang City issued a notice ordering all bromine facilities in Shouguang City, including the Company’s bromine facilities,
including Factory No. 1 and Factory No. 7, to temporarily stop production from December 16, 2019 to February 10, 2020. Subsequently, due
to the coronavirus outbreak in China, the local government ordered those bromine facilities to postpone the commencement of production.
Subsequently, the Company received an approval dated February 27, 2020 issued by the local governmental authority allowing