Company: GURE
Filing Date: 2025-09-22
Form Type: S-3/A
Source: 0001193805-25-001326
Chunk: 11

Company: GULF RESOURCES, INC.
Filing Date: 2025-09-22
Form: S-3/A
Chunk 11
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 of any of these policies and rules until sometime after the violation. Such
uncertainties, including uncertainty over the scope and effect of our contractual, property (including intellectual property) and procedural
rights, and any failure to respond to changes in the regulatory environment in mainland China could materially and adversely affect our
business and impede our ability to continue our operations.

If the Chinese government chooses to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in mainland China-based issuers, such action may significantly limit or completely hinder our ability to offer or continue to offer Ordinary Shares to investors and cause the value of our Ordinary Shares to significantly decline or be worthless.

Recent statements by the Chinese government have
indicated an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investments in mainland
China-based issuers. On July 6, 2021, the General Office of the Communist Party of China Central Committee and the General Office of the
State Council jointly issued a document to crack down on illegal activities in the securities market and promote the high-quality development
of the capital market, which, among other things, requires the relevant governmental authorities to strengthen cross-border oversight
of law enforcement and judicial cooperation, to enhance supervision over mainland China-based companies listed overseas, and to establish
and improve the system of extraterritorial application of the PRC securities laws.

Furthermore, on December 28, 2021, the CAC, the
NDRC and several other administrations jointly issued the Revised Review Measures, which became effective and replaced the existing Measures
for Cybersecurity Review on February 15, 2022. According to the Revised Review Measures, if an “online platform operator”
that is in possession of personal data of more than one million users intends to list in a foreign country, it must apply for a cybersecurity
review. Moreover, the CAC released the draft of the Regulations on Network Data Security Management in November 2021 for public consultation,
which among other things, stipulates that a data processor listed overseas must conduct an annual data security review by itself or by
engaging a data security service provider and submit the annual data security review report for a given year to the municipal cybersecurity
department before January 31 of the following year. On July 7, 2022, the CAC released the Measures for the Security Assessment of Cross-Border
Data, which became effective on September 1, 2022. Given the recent issuance of the Measures for the Security