Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 36

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1A
Chunk 36
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 into effect on February 15, 2022. Under the Revised Measures, any “network
platform operator” controlling personal information of no less than one million users which seeks to list in a foreign stock exchange
should also be subject to cybersecurity review. Pursuant to the Revised Measures, companies holding data on more than 1 million users
must now apply for cybersecurity approval when seeking listings in other nations due to the risk that such data and personal information
could be “affected, controlled, and maliciously exploited by foreign governments.”

21 

Our business
belongs to the chemical industry in China, which does not involve the collection of user data, implicate cybersecurity, or involve any
other type of restricted industry. Based on the advice of PRC counsel and our understanding of currently applicable PRC laws and regulations,
listing of our common stock in the U.S. is not subject to the review or prior approval of the Cyberspace Administration of China (the
“CAC”) or the China Securities Regulatory Commission (the “CRSC”). Uncertainties still exist, however, due to
the possibility that laws, regulations, or policies in the PRC could change rapidly in the future. Any future action by the PRC government
expanding the categories of industries and companies whose foreign securities offerings are subject to review by the CRSC or the CAC could
significantly limit or completely hinder our ability to offer or continue to offer securities to investors and could cause the value of
such securities to significantly decline or be worthless.

The occurrence of security
breaches and cyber-attacks could negatively impact our business.

Information
technology systems are important to our business and operations. We are subject to attempts to compromise our security and information
systems, including denial of service attacks, viruses, malicious software or ransomware, and exploitations of system flaws or weaknesses.
Error or malfeasance or other irregularities may also result in the failure of our or our third-party service providers' cybersecurity
measures and may give rise to a cybersecurity incident. The techniques used to conduct security breaches and cyber-attacks, as well as
the sources and targets of these attacks, change frequently and may not be recognized until launched against us or our third-party service
providers. We or our third-party service providers may not have the resources or technical sophistication to anticipate or prevent rapidly
evolving types of cyber-attacks. The primary risks that could directly result from the occurrence of security breaches and cyber-attacks
include operational interruption, financial losses, personal information leakage