Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 53

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 53
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 from the government to resume bromine production after winter temporary closure. Subsequently,
it received another approval from the Shouguang Yangkou People’s Government dated on March 5, 2020 to resume production at its bromine
factories No. 1, No. 4, No. 7 and No. 9 in order to meet the needs of bromide products for epidemic prevention and control. With these
two approvals, the Company was allowed to resume production at all four bromine factories.

The Company received
an oral notification from the government for its Factory No. 8, which permitted Factory No.8 to resume production in August 2022. Factory
No.8 started to contribute revenue in the fourth quarter 2022.

Pursuant to the notification
from the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 10, 2022 until February
1, 2023. To comply with such notification, the Company had temporarily stopped production at its bromine facilities during the aforesaid
period and reopened the operating bromine and crude salt factories in February, 2023.

The Company is still
waiting for governmental approval for factories No. 2 and No. 10. To its knowledge, the government is currently completing its planning
process for all mining areas including that for prevention of flood. As a result, the Company may be required to make some modifications
to our current wells and aqueducts prior to commencement of operations of these factories in order to satisfy the local government's requirements. 

On November 24, 2017, Gulf Resources 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