Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 78

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 78
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 2024.

Net Cash Used in Investing Activities

During the nine months ended September 30, 2025, the Company carried
out and completed an update and renovation on them during year 2025, with a total cost of $8,673,384.

For the nine-month period ended September 30,
2024, we used approximately $60.5 million to the flood prevention project aiming to prevent flooding that could harm the wells, aqueducts
and crude salt pans at our plant.

Net Cash Used in Financing Activities

For the nine-month period ended September 30,
2025 and 2024, we used $0.3 million to repay finance lease obligations. 

We believe that our available funds and cash flows
generated from operations will be sufficient to meet our anticipated ongoing operating needs and our obligations as they full due in the
next twelve (12) months.

We had available cash of approximately $5.82 million
at September 30, 2025, all of which is in highly liquid current deposits earning no or little interest. We do not anticipate paying cash
dividends in the foreseeable future.

We intend to continue to focus our efforts on the activities of SCHC,
SYCI, SHSI and DCHC as these segments continue to expand within the Chinese market.

We may not be able to identify, successfully integrate
or profitably manage any businesses or business segment we may acquire, or any expansion of our business. An expansion may involve a number
of risks, including possible adverse effects on our operating results, diversion of management’s attention, inability to retain
key personnel, risks associated with unanticipated events, risks associated with the pandemic and the financial statement effect of potential
impairment of acquired intangible assets, any of which could have a materially adverse effect on our condition and results of operations.
In addition, if competition for acquisition candidates or operations were to increase, the cost of acquiring businesses could increase
materially. We may effect an acquisition with a target business which may be financially unstable, under-managed, or in its early stages
of development or growth. Our inability to implement and manage our expansion strategy successfully may have a material adverse effect
on our business and future prospects.

Contractual Obligations and Commitments

We have no significant contractual obligations not fully recorded on
our consolidated balance sheets or fully disclosed in the notes to our consolidated financial statements. Additional information regarding
our contractual obligations and commitments at September 30, 2025 is provided