Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 387

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 6
Chunk 387
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CI”) ,Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry
Co. Ltd. (“SHSI”). All material intercompany transactions have been eliminated on consolidation.

(b)      Going Concern Consideration

The consolidated financial statements are prepared on the
going concern basis, meaning that the enterprise is expected to realize the assets and settle the liabilities through normal business
operations. However, the going concern of the enterprise relies on many factors, such as profitable operations, generating operating cash
flows, obtaining financing, etc.

The company assesses its
liquidity by monitoring cash and cash equivalents, as well as operating and capital expenditure commitments. As of December 31, 2024,
As of Dec 31, 2024, the Company had current assets of $17.45 million and current liabilities of $17.73 million. As a result, the deficit
was $0.28 million, and it has suffered losses in both the fiscal years of 2024 and 2023 as well. If it is unable to raise additional funds,
it may need to take measures such as cutting administrative and operational cost and save funds.

 If there are significant doubts regarding the company'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