Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 52

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 52
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 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 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.

17 

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