Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 69

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 69
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Natural gas segment

Gross profit for our natural gas segment for the
six-month period ended June 30, 2025 and 2024 was $0 and $43,995 respectively.

Direct labor and factory overheads incurred
during plant shutdown On September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang
City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect
in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection
requirements. 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 Bohai
Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $3,953,582
and $5,449,192 incurred for the three-month periods ended June 30, 2025 and 2024, respectively, for the factories that have not resumed
production were presented as part of the operating expense.

General and Administrative Expenses.
General and administrative expenses were $2,384,288 for the six-month period ended June 30, 2025, a increase of $976,860 (or 69%) as compared
to $1,407,428 for the same period in 2024.

Loss from Operations. Loss from
operations was $5,360,893 for the six-month period ended June 30, 2025, compared to loss from operations of $10,416,416 in the same period
in 2024.

    Income(loss) from Operations by Segment

    Six-Month Period Ended  June 30, 2025 
    Six-Month Period Ended  June 30, 2024
  
    Segment: 
      
    % of total 
      
    % of total
  
    Bromine 
    $(3,501,217) 
     70% 
    $(9,445,401) 
     93%
  
    Crude Salt 
     (701,551) 
     14% 
     54,932  
     (0.5%)
  
    Chemical Products 
     (703,576)