Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 16

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 16
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 property, plant and equipment
upon completion and depreciation will commence when the completed assets are placed in service. 

The Company’s depreciation and amortization
policies on property, plant and equipment, other than mineral rights and construction in process, are as follows:

Basis of Presentation and Summary of
Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Life

    Minimum
        Maximum  
    Useful life (in years)
  
    Buildings (including salt pans) 
     8 - 20 
  
    Plant and machinery (including protective shells, transmission channels and ducts) 
     3 - 8 
  
    Motor vehicles Motor Vehicles 
     5 
  
    Furniture, fixtures and equipment 
     3 - 8 

Property, plant and equipment under the finance
lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the lease.

Producing oil and gas properties are depreciated
on a unit-of-production basis over the proved developed reserves. Common facilities that are built specifically to service production
directly attributed to designate oil and gas properties are depreciated based on the proved developed reserves of the respective oil and
gas properties on a pro-rata basis. Common facilities that are not built specifically to service identified oil and gas properties are
depreciated using the straight-line method over their estimated useful lives. Costs associated with significant development projects are
not depreciated until commercial production commences and the reserves related to those costs are excluded from the calculation of depreciation.

(i)  Retirement
Benefits

Pursuant to the relevant laws and regulations
in the PRC, the Company participates in a defined contribution retirement plan for its employees arranged by a governmental organization.
The Company makes contributions to the retirement plan at the applicable rate based on the employees’ salaries. The required contributions
under the retirement plans are charged to the condensed consolidated statement of loss on an accrual basis when they are due. The Company’s
contributions totaled $123,099 and $100,290 for the three-month period ended June 30, 2025 and 2024, respectively, and totaled $296,584
and $223,413 for the six-month period ended June 30, 2025 and 2024, respectively.

(j)  Revenue
Recognition

Net revenue is net of discount and value added
tax and comprises the sale of bromine, crude salt and chemical products. Revenue is recognized when