Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 83

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 83
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 salt) in Sichuan Province, China.

As disclosed in the Company’s
Current Report on Form 8-K filed on September 8, 2017, the Company received, on September 1, 2017, letters from the Yangkou County, Shouguang
City government addressed to each of its subsidiaries, SCHC and SYCI, 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 and environmental protection requirements. In the Company’s press
release of August 11, 2017 and on its conference call of August 14, 2017, the Company addressed concerns that increased government enforcement
of stringent environmental rules that were adopted in early 2017 to insure corporations bring their facilities up to necessary standards
so that pollution and other negative environmental issues are limited and remediated, could have an impact on our business in both the
short and long-term. The Company also expressed that although it believed its facilities were fully compliant at the time, the Company
did not know how its facilities would fare under the new rules. Teams of inspectors from the government were sent to many provinces to
inspect all mining and manufacturing facilities. The local government requested that facilities be closed, so that the facilities could
undergo the inspection and analysis in the most efficient manner by inspectors’ team. As a result, our facilities were closed on
September 1, 2017.

The Company believes
that this is another step by the government to improve the environment. It further believes the goal of the government is not to close
all plants, but rather to codify the regulations related to project approval, land use, planning approval and environmental protection
assessment approval so that illegal plants are not able to open in the future and so that plants close to population centers do not cause
serious environmental damage. In addition, the Company believes that the Shandong provincial government wants to assure that each of its
regional and county governments has applied the Notice in a consistent manner.

The Shouguang City Bromine
Association, on behalf of all the bromine plants in Shouguang, started discussions with the local government agencies. The local governmental
agencies confirmed the facts that their initial requirements for the bromine industry did not include the project approval, the planning
approval and the land use rights approval and that those three additional approvals were new