Company: GURE
Filing Date: 2025-09-22
Form Type: S-3/A
Source: 0001193805-25-001326
Chunk: 27

Company: GULF RESOURCES, INC.
Filing Date: 2025-09-22
Form: S-3/A
Chunk 27
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 banks will examine and handle foreign exchange registration for overseas direct investment, including the initial foreign
exchange registration and amendment registration, under SAFE Circular 37 since June 1, 2015.

According to Circular 37 and Circular 13, our
shareholders or beneficial owners who are PRC residents are subject to Circular 37 or other foreign exchange administrative regulations
in respect of their investment in our Company. If our shareholders who are PRC residents or entities do not complete their registration
with the local SAFE branches, our PRC Subsidiaries may be prohibited from distributing their profits and any proceeds from any reduction
in capital, share transfer or liquidation to us, and we may be restricted in our ability to contribute additional capital to our PRC Subsidiaries.
Moreover, failure to comply with SAFE registration requirements could result in liability under PRC laws for evasion of applicable foreign
exchange restrictions.

To the best of our knowledge, our PRC resident
shareholders who: (i) directly or indirectly hold shares in our Cayman Islands holding company and (ii) are known to us, have completed
the application for foreign exchange registrations for their foreign investment in our company in accordance with Circular 37 and Circular
13.

Failure to make adequate contributions to various employee benefit plans and withhold individual income tax on employees’ salaries as required by PRC regulations may subject us to penalties.

Companies operating in mainland China are required
to participate in various government-mandated employee benefit contribution plans, including certain social insurance, housing funds and
other welfare-oriented payment obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including
bonuses and allowances, of our employees up to a maximum amount specified by the local government from time to time at locations where
we operate our businesses. The requirement of employee benefit contribution plans has not been implemented consistently by the local governments
in mainland China given the different levels of economic development in different locations. Companies operating in mainland China are
also required to withhold individual income tax on employees’ salaries based on the actual salary of each employee upon payment.
Should we fail to make adequate contributions to employee benefit plans or under-withhold individual income tax, we may be subject to
late fees and fines and our financial condition and results of operations may be adversely affected.

We face uncertainty with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies.

On February 3, 2015, the SAT issued the Public
Notice Regarding Certain Corporate Income Tax