Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 554

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 554
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 or disclosures to which they
relate.

Property, plant and equipment, net

As described in Note 1 to the
consolidated financial statements, property, plant and equipment consisted of facilities for products, mineral rights, constructions in
process and producing oil and gas properties. The Company reviews the economic benefits associated with the item purchased periodically.
Once the Company determine the likelihood of economic benefits associated is probable, the item would be recognized as an asset.

We identified determining carrying
amount of property, plant and equipment as a critical audit matter due to the material balance on the balance sheet and significant judgement
and assumptions were used by the Management regarding the timing and ability to contribute to the generation of cash flows, which in turn
led to a high degree of auditor judgement, subjectivity and effort in performing procedures and evaluating audit evidence relating to
Management’s assessment of the carrying amount.

The primary procedures we performed to address this critical
audit matter included the following:

-Reviewed the Company’s accounting policies, assumptions and estimates.

-Physical inspection.

-Examined contracts.

-Performed independent analysis for impairment testing.

/s/ GGF CPA LTD

We have served as the Company’s auditor since
2024.

Guangzhou, Guangdong, China

PCAOB NO: 2729

April 11, 2025

F-2 

GULF RESOURCES, INC.

AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. dollars)

    December 31, 2024 
    December 31, 2023
  
    Current Assets 

    Cash 
    $10,075,162  
    $72,223,894 
  
    Accounts receivable, net 
     564,523  
     4,865,696 
  
    Inventories, net 
     315,371  
     577,229 
  
    Prepayments and deposits 
     6,376,656  
     8,395,290 
  
    Amount due from related parties 
     25,040  
     — 
  
    Other receivables 
     94,074  
     7,482 
  
    Total current assets 
     17,450,826  
     86,069,591 
  
    Non-Current Assets 

    Property, plant and equipment, net 
     136,143,177  
     122,188,023