Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 325

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 5
Chunk 325
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 The Written Decisions ordered SCHC, among
other things, to return the land subject to the Written Decisions to its respective legal owner, restore the land to its original
state, and demolish or confiscate all the buildings and facilities thereon and pay monetary penalty of approximately RMB 1.3 million
($184,000) in the aggregate. Each of the Written Decisions shall be executed within 15 days upon serving on SCHC. Additional
interest penalty shall be imposed at a daily rate of 3% in the event that SCHC does not make the monetary penalty payment in a
timely manner. Subsequently, the Bureau filed enforcement actions to the People’s Court of Shouguang City, Shandong Province
(the “Court”), naming SCHC as enforcement respondent and alleged, among other things, that SCHC failed to perform its
obligations under each of the Written Decisions within the specified timeframe. The enforcement proceedings sought court orders to
enforce the Written Decisions. On May 5, 2019, written decisions of administrative ruling captioned (2019) Lu 0783 Xing Shen No.
384, (2019) Lu 0783 Xing Shen No. 385, (2019) Lu 0783 Xing Shen No. 389, (2019) Lu 0783 Xing Shen No. 390, (2019) Lu 0783 Xing Shen
No. 393, and (2019) Lu 0783 Xing Shen No. 394, respectively (together, the “Court Rulings”) were made by the Court in
favor of the Bureau. The Court orders, among other relief, to enforce each of the Written Decisions, to return each subject land to
its legal owners and demolish or confiscate the buildings and facilities thereon and restore the land to its original state within
10 days from the service of the Court Rulings on SCHC. The Court Rulings became enforceable immediately upon service on SCHC on May
5, 2019.

In the last twenty years, to the
Company’s knowledge, there were no government regulations requiring bromine manufacturers to obtain land use and planning approval
document. As such, the Company believes most of the bromine manufacturers in Shouguang City do not have land use and planning approval
documents and lease their land parcels from the village associations. They are facing the same issues in connection with land use and