Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 324

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 5
Chunk 324
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3, the Company sold 61.8% of its products
to its top five customers, respectively. As of December 31, 2023, amounts due from these customers were $2,082,217.

NOTE 20 – MAJOR SUPPLIERS

Product Concentration 

Cost of Goods

During the year ended December
31, 2024, the Company purchased 100% of its raw materials from its top four suppliers. As of December 31, 2024, amounts due to those suppliers
were $30,003.

During the year ended December
31, 2023, the Company purchased 100% of its raw materials from its top four suppliers. As of December 31, 2023, amounts due to those suppliers
were $206,984.

    F-26 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

NOTE 21 – LOSS CONTINGENCIES

Settled Litigation 

On or about August 3,
2018, written decisions of administration penalty captioned Shou Guo Tu Zi Fa Gao Zi [2018] No. 291, Shou Guo Tu Zi Fa Gao Zi [2018]
No. 292, Shou Guo Tu Zi Fa Gao Zi [2018] No. 293, Shou Guo Tu Zi Fa Gao Zi [2018] No. 294, Shou Guo Tu Zi Fa Gao Zi [2018] No. 295
and Shou Guo Tu Zi Fa Gao Zi [2018] No. 296 (together, the “Written Decisions”) were served on Shouguang City Haoyuan
Chemical Company Limited (“SCHC”) by Shouguang City Natural Resources and Planning Bureau (the “Bureau”),
naming SCHC as respondent respectively thereof. The Decisions challenged the land use of Factory nos. 2, 9, 7, 4, 8 and 10,
respectively, and alleged, among other things, that SCHC had illegally occupied and used the land in the total area of approximately
52,674 square meter, on which Factory nos. 2, 9, 7, 4, 8 and 10 were built, respectively.