Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 79

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 79
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 requirements of the provincial government.
The Company understood from the local government that it has been coordinating with several government agencies to solve these three outstanding
approval issues in a timely manner and that all the affected bromine plants willnot be allowed to commence production prior to obtaining
those approvals.

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 had passed inspection and could resume operations.
In April 2019, Factory No. 1 and No. 7 resumed operations.

On February 28, 2020,
the Company announced that it received an approval from the government to resume bromine production after winter temporary closure. Subsequently,
it received another approval from the Shouguang Yangkou People’s Government dated on March 5, 2020 to resume production at its bromine
factories No. 1, No. 4, No. 7 and No. 9 in order to meet the needs of bromide products for epidemic prevention and control. With these
two approvals, the Company was allowed to resume production at all four bromine factories.

The Company received
an oral notification from the government for its Factory No. 8, which permitted Factory No.8 to resume production in August 2022. Factory
No.8 started to contribute revenue in the fourth quarter 2022.

25 

Pursuant to the notification
from the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 10, 2022 until February
1, 2023 8:00 AM China Time. To comply with such notification, the Company had temporarily stopped production at its bromine facilities
during the aforesaid period and reopened the operating bromine and crude salt factories in February, 2023 as planned.

The Company is still
waiting for governmental approval for factories No. 2 and No. 10. To its knowledge, the government is currently completing its planning
process for all mining areas including that for prevention of flood. As a result, the Company may be required to make some modifications
to our current wells and aqueducts prior to commencement of operations of these factories in order to satisfy the local government's requirements. 

On November 24, 2017, Gulf Resources received a letter from the People’s
Government of Yangkou County