Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 62

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1B
Chunk 62
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 at its bromine facilities during this period and resumed
preparation operations at the bromine and crude salt factories as scheduled in February 2025.

Chemical Products

On November 24, 2017, the Company
received a letter from the People’s Government of Yangkou County, Shouguang City notifying the Company that due to the new standards
and regulations relating to safety production and environmental pollution, from certain local governmental departments, such as the municipal
environmental protection department, the security supervision department and the fire department, its chemical enterprises would have
to be relocated to a new industrial park called Bohai Marine Fine Chemical Industry Park. Although our chemical companies were in compliance
with regulations, they were also close to a residential area. As a result, the government determined we should relocate to the Bohai park.
Chemical companies that are not being asked to move into the park are being permanently closed. Since our factories closed, the Company
has secured from the government the land use rights for its chemical plant. On January 6, 2020, the Company received the environmental
protection approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory. Construction of the
new chemical facilities at Bohai Marine Fine Chemical Industrial Park commenced in June 2020. Initially, the construction was projected
to last around one year, with an additional six months for equipment installation and testing. However, due to the COVID epidemic and
electrical restrictions, the opening of the chemical factory has been postponed. The Company has received the refrigeration and air compressor
units. Additionally, the procurement of the final equipment for our chemical factory has been postponed until we have a better understanding
of the potential for derivative bromine products. We anticipate proceeding with the completion of its chemical factory in due course.
However, in the event that the Chinese economy persists in its weakness and if we perceives this trend to be ongoing, there is a possibility
that the chemical factory could be repurposed for the production of Sodium-Ion batteries.

Natural Gas

In January 2017, the Company completed
the construction of the first brine water and natural gas well field in Daying County, Sichuan Province, and commenced trial production
in January 2019. On May 29, 2019, the Company received verbal notice from the government of Tianbao Town, Daying County, Sichuan Province,
mandating the need for project approval for its Day