Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 27

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 27
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 February 27, 2020 issued by the local governmental authority which
allows us to resume production after the winter temporary closure. Further, the Company 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 (the “March 2020 Approval”). The Company’s factories
No.7 and No.1 started trial production in middle March, 2020, and commenced commercial production on April 3, 2020.

The Company received oral notification
from the government regarding Factory No. 8, allowing it to resume production in August 2022. Factory No.8 began contributing revenue
in the fourth quarter 2022.

The Company is awaiting governmental
approval for Factories No. 2 and No. 10. To our knowledge, the government is finalizing plans for all mining areas, including flood prevention
measures. As a result, we may be required to make certain modifications to our existing wells and aqueducts prior to commencement of operations
of these factories in order to satisfy the local government's requirements. The Company completed its flood prevention project in December
2023. This project was implemented for safeguarding its bromine facilities.

Pursuant to the notification from
the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 15, 2024 until February
12, 2025. In compliance with the notification, the Company ceased production at its bromine facilities during this period and resumed
preparation operations at the bromine and crude salt factories as scheduled in February 2025.

16 

▼ Chemical Products

On November 24, 2017, the Company
received a letter from the Government of Yangkou County, Shouguang City notifying the Company to relocate its two chemical production
plants located in the second living area of the Qinghe Oil Extraction Plant to the Bohai Marine Fine Chemical Industrial Park (the “November
2017 Letter”). Since then, our chemical factory has been shut down. We believe this is part of the country’s efforts to improve
the development of the chemical industry, facilitate safe production and curb environmental pollution, and ensure the quality of living
environment of residents. The Company expects to cost approximately