Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 198

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 3
Chunk 198
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 completed the civil works by the end of June 2021. On November 15, 2021, the Company announced that due to the supply
chain issues as well as the electric restrictions in China, the delivery of some equipment, the equipment installation and testing and
beginning trial production at the chemical factory had been delayed. On February 22, 2022, the Company announced that discussions with
the government have convinced management that the electricity restrictions are being eased. Accordingly, the Company has contacted its
suppliers and will have the remainder of the equipment produced and delivered, so the Company can complete installation and begin testing
and trial production.

The Company believes this
relocation process will cost approximately $69
million in total. The Company incurred relocation costs comprising prepaid land lease, professional fees related to the design
of the new chemical factory, and progress payments and deposits for the construction of the new factory building in the amount of $45,584,344
and $45,584,344,
which were recorded in the prepaid land leases, prepayments and deposits and property, plant and equipment in the consolidated balance
sheets as of December 31, 2024 and 2023.

(iii)Natural Gas Segment

In January 2017, the Company completed
the first brine water and natural gas well field construction in Daying located in Sichuan Province, China, and commenced trial production
in January 2019. On May 29, 2019, the Company received a verbal notice from the government of Tianbao Town, Daying County, Sichuan Province,
whereby the Company is required to obtain project approval for its well located in Daying, including the whole natural gas and brine water
project, and approvals for safety production inspection, environmental protection assessment, and to solve the related land issue. Until
these approvals have been received, the Company has to temporarily halt trial production at its natural gas well in Daying. In compliance
with the Chinese government new policies, the Company is also required to obtain an exploration license and a mining license for bromine
and natural gas, respectively. Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in Promoting the Reform
of Mineral Resources Management (Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020, which came into effect
on May 1, 2020, privately owned enterprises are allowed to participate in the natural gas production. The