Company: GURE
Filing Date: 2025-12-31
Form Type: S-3/A
Source: 0001193805-25-001804
Chunk: 6

Company: GULF RESOURCES, INC.
Filing Date: 2025-12-31
Form: S-3/A
Chunk 6
---
inspections in early 2023 and beyond, as well as to continue pursuing ongoing investigations and initiate new investigations as needed.
The PCAOB has also indicated that it will act immediately to consider the need to issue new determinations with the HFCAA if needed.

The audit
report included in this prospectus for the year ended December 31, 2024 was issued by GGF CPA LTD., Certified Public Accountants, is a
China-based accounting firm registered as a PCAOB-registered public accounting firm, it is required to undergo regular inspections by
the PCAOB to assess its compliance with the laws of the U.S. and professional standards. GGF CPA LTD has been subject to PCAOB inspections
and is not among the PCAOB-registered public accounting firms headquartered in the PRC or Hong Kong that is subject to the PCAOB’s
determination of having been unable to inspect or investigate completely. Notwithstanding the foregoing, if it is later determined that
the PCAOB is unable to inspect or investigate our auditor completely, investors may be deprived of the benefits of such inspection. Any
audit reports not issued by auditors that are completely inspected by the PCAOB, or a lack of PCAOB inspections of audit work undertaken
in China that prevents the PCAOB from regularly evaluating our auditors’ audits and their quality control procedures, could result
in a lack of assurance that our financial statements and disclosures are adequate and accurate. Moreover, if trading in our securities
is prohibited under the HFCAA in the future because the PCAOB determines that it cannot inspect or fully investigate our auditor at such
future time, an exchange may determine to delist our securities. See “Risk Factors — Risks Related to Doing Business
in China”.

Cash and Asset Flows through Our Organization

Our corporate
structure is a direct holding structure, that is, the overseas entity listed in the U.S., Gulf Resources, Inc., a Nevada corporate (“Gulf
Resources”), controls SCHC (the “WFOE”), and DCHC through the Hong Kong company, Hong Kong Jiaxing Industrial Limited,
or Hong Kong Jiaxing.

Within our
direct holding structure, the cross-border transfer of funds within our corporate group is legal and compliant with the laws and regulations
of the PRC. Foreign investors’ funds can be directly transferred to Hong Kong Jiaxing, and then transferred to subordinate operating
entities through SCHC, or the WFOE.

In addition,
the majority of our subsidiaries and their PRC subsidiaries receive income