Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 54

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 54
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6, 2020, the Company received the environmental protection
approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory. The Company began the construction
on its new chemical facilities located at Bohai Marine Fine Chemical Industrial Park in June 2020. The construction was expected to take
approximately one year and an additional six months to complete the equipment installation and testing, however due to the COVID epidemic
and electrical restrictions, the opening of the chemical factory has been delayed. The  Company has received the refrigeration and
air compressor units. On July 26, 2023, the Company announced that the delivery of the remaining equipment for its Yuxin chemical factory
has been temporarily delayed and the Company will re-evaluate its chemical products strategy.

In January 2017, the
Company completed the first brine water and natural gas well field construction in Daying located in Sichuan Province and commenced trial
production in January 2019. On May 29, 2019, the Company received a verbal notice from the government of Tianbao Town ,Daying County,
Sichuan Province, whereby the Company is required to obtain project approval for its well located in Daying, including the whole natural
gas and brine water project, and approvals for safety production inspection, environmental protection assessment, and to solve the related
land issue. Until these approvals have been received, the Company has to temporarily halt trial production at its natural gas well in
Daying. In compliance with the Chinese government new policies, the Company is also required to obtain an exploration license and a mining
license for bromine and natural gas, respectively. Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in
Promoting the Reform of Mineral Resources Management (Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020,
which came into effect on May 1, 2020, privately owned enterprises are allowed to participate in the natural gas production. The Company
plans to proceed with its applications for the natural gas and brine project approvals with related government departments until after
the governmental planning has been finalized the land and resource planning for Sichuan Province.

18 

In April 2022, Shouguang Hengde Salt Industry
Co. Ltd（“SHSI”）,
our subsidiary, was incorporated in Shandong Province, China, for crude salt production and trading.

On