Company: GURE
Filing Date: 2025-09-22
Form Type: S-3/A
Source: 0001193805-25-001326
Chunk: 24

Company: GULF RESOURCES, INC.
Filing Date: 2025-09-22
Form: S-3/A
Chunk 24
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 our market share.
It is unclear whether our business would be deemed to be in an industry that raises “national defense and security” or “national
security” concerns. However, MOFCOM or other government agencies may publish explanations in the future determining that our business
is in an industry subject to the security review, in which case our future acquisitions in China may be closely scrutinized or prohibited.
Our ability to expand our business or maintain or expand our market share through future acquisitions would as such be materially and
adversely affected.

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Our PRC Subsidiaries are subject to restrictions on paying dividends or making other payments to us, which may restrict our ability to satisfy our liquidity requirements in the future.

We may need dividends and other distributions
on equity from our PRC Subsidiaries or Shuya to satisfy our liquidity requirements. Current PRC regulations permit our PRC Subsidiaries
and Shuya to pay dividends to their respective shareholders only out of their accumulated profits, if any, determined in accordance with
PRC accounting standards and regulations. In addition, such companies are required to set aside at least 10% of their accumulated profits
each year, if any, to fund certain reserve funds until the total amount set aside reaches 50% of its registered capital. Our PRC Subsidiaries
or Shuya may also, at the respective subsidiary’s discretion, allocate a portion of its after-tax profits based on its articles
of association and PRC accounting standards to certain reserve funds. These reserves are not distributable as cash dividends. Furthermore,
if our PRC Subsidiaries or Shuya incur debt on their own behalf in the future, the instruments governing the debt may restrict their ability
to pay dividends or make other payments to us. Any limitation on the ability of our PRC Subsidiaries or Shuya to distribute dividends
or to make payments to us may restrict our ability to satisfy our future liquidity requirements.

In addition, the Enterprise Income Tax Law and
its implementation rules provide that a withholding tax rate of up to 10% will be applicable to dividends payable by PRC companies to
non-PRC-resident enterprises unless otherwise exempted or reduced according to treaties or arrangements between the PRC central government
and governments of other countries or regions where the non-PRC-resident enterprises are incorporated. If we are deemed by the PRC tax
authorities as a PRC tax resident enterprise for tax purposes, any dividends