Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 602

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 602
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 assets
of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred
to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender,
regulatory agency, foreign government, etc.).

The condensed parent company
financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the
subsidiaries of Gulf Resources, Inc. exceed 25% of the consolidated net assets of Gulf Resources, Inc. The ability of the Company’s
Chinese operating subsidiaries to pay dividends may be restricted due to the foreign exchange control policies and availability of cash
balances of the Chinese operating subsidiaries. Because a significant portion of the Company’s operations and revenues are conducted
and generated in China, a significant portion of the revenues being earned and currency received are denominated in RMB. RMB is subject
to the exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China
due to PRC exchange control regulations that restrict the Company’s ability to convert RMB into US Dollars.

S-3