Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 126

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 4
Chunk 126
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 LTD., Certified Public Accountants,
is a China-based accounting firm registered with the PCAOB, and is subject to laws in the United States pursuant to which the PCAOB conducts
regular inspections to assess its compliance with the applicable professional standards. Our auditor is headquartered in the China and
is subject to inspection by the PCAOB on a regular basis. On August 26, 2022, the PCAOB signed the Protocol with the CSRC and the MOF
of the People’s Republic of China, governing inspections and investigations of audit firms based in mainland China and Hong Kong.
The Protocol remains unpublished and is subject to further explanation and implementation. Pursuant to the fact sheet with respect to
the Protocol disclosed by the SEC, the PCAOB shall have independent discretion to select any issuer audits for inspection or investigation
and the unfettered ability to transfer information to the SEC. On December 15, 2022, the PCAOB announced that it was able to secure complete
access to inspect and investigate PCAOB registered public accounting firms headquartered in China mainland and Hong Kong completely in
2022. The PCAOB Board vacated its previous 2021 determinations that the PCAOB was unable to inspect or investigate completely registered
public accounting firms headquartered in China mainland and Hong Kong. However, whether the PCAOB will continue to be able to satisfactorily
conduct inspections of PCAOB-registered public accounting firms headquartered in China mainland and Hong Kong is subject to uncertainty
and depends on a number of factors out of our, and our auditor’s control. The PCAOB is continuing to demand complete access in China
mainland and Hong Kong moving forward and was already making plans to resume regular inspections in early 2023 and beyond, as well as
to continue pursuing ongoing investigations and initiate new investigations as needed. The PCAOB has indicated that it will act immediately
to consider the need to issue new determinations with the HFCAA if needed. Therefore, the PCAOB in the future may determine that it is
unable to inspect or investigate completely registered public accounting firms in mainland China and Hong Kong. Our auditor’s working
papers related to us and our subsidiaries are located in China. If our auditor is not permitted to provide requested audit work papers
located in China to the PCAOB, investors would be deprived of the benefits of PCAOB’s oversight of our auditor through such inspections
which could result in limitation or restriction to our access to the U.S. capital markets and trading of our securities may be prohibited
under the HFCAA,