Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 73

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 73
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 30, 2024.

29 

Crude salt segment

For the nine-month period ended September 30, 2025,
the gross profit margin for our crude salt segment was 59%.

For the nine-month period ended September 30, 2024 the gross profit margin
for our crude salt segment was 45%.

Chemical products segment

For the nine-month period ended September 30,
2025, the gross profit margin for our chemical segment was 0% due to the closure of our chemical products plant. As a result of the closure,
there were no chemical products for sale for the nine-month period ended September 30, 2025.

Natural gas segment

Gross profit for our
natural gas segment for the nine-month period ended September 30, 2025 and 2024 was $0 and $60,931 respectively. The decrease in
income was due to the fact that the relevant documents of the client were incomplete, which prevented us from continuing the
cooperation.

Direct labor and factory overheads incurred
during plant shutdown On September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang
City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect
in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection
requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the
Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai
Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $4,533,760
and $7,185,537 incurred for the nine-month periods ended September 30, 2025 and 2024, respectively, for the factories that have not resumed
production were presented as part of the operating expense.

General and Administrative Expenses.
General and administrative expenses were $3,169,821 for the nine-month period ended September 30, 2025, an increase of $759,864 (or 32%)
as compared to $2,409,957 for the same period in 2024. The increase in administrative expenses is mainly due to the increase in depreciation.

Loss from Operations. Loss from