Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 10

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 10
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 Hong Kong Jiaxing Industrial Limited, a company incorporated in Hong Kong (“HKJI”).
HKJI owns 100% of Shouguang City Haoyuan Chemical Company Limited (“SCHC”) which owns 100% of Shouguang Yuxin Chemical Industry
Co., Limited (“SYCI”) ,Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry
Co. Ltd. (“SHSI”). All material intercompany transactions have been eliminated on consolidation.

(b)
 Going Concern Consideration

The
consolidated financial statements are prepared on the going concern basis, meaning that the enterprise is expected to realize the assets
and settle the liabilities through normal business operations. However, the going concern of the enterprise relies on many factors, such
as profitable operations, generating operating cash flows, obtaining financing, etc.

The
company assesses its liquidity by monitoring cash and cash equivalents, as well as operating and capital expenditure commitments. As of
June 30, 2025, the Company had current assets of $20.28 million and current liabilities of $14.79 million. As a result, the
surplus was $5.49 million, and it has suffered losses for the six months ended by June 30, 2025.
If it is unable to raise additional funds, it may need to take measures such as cutting administrative and operational cost and save funds. 

If there are significant doubts regarding the company's ability to continue operations, the company is attempting to alleviate such concerns
through measures such as controlling operating expenses, shifting business focus to revenue-generating activities, obtaining authorization
from domestic banks and other financial institutions, and seeking equity or debt financing. Additionally, the company will also obtain
financial support commitments from related parties. However, these situations still pose significant doubts regarding the company's ability
to continue operations. The financial statements do not consider the potential impact on the recoverability of assets, classification,
and amounts and classification of liabilities if the company is unable to continue operations.

(c)  Nature
of Business

The Company manufactures and trades bromine through
its wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited (“SCHC”); manufactures and trades crude salt
through its wholly-owned subsidiary, SHSI; and manufactures chemical products for use in
the oil industry, pesticides, paper manufacturing industry and for human and animal antibiotics through its wholly-owned subsidiary, Shou