Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 34

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 34
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 Group Co., Ltd. and
Shandong Shouguang Vegetable Seed Group Co., Ltd. owed a principal of $2,104,050 and RMB $1,402,700 to Shandong Deepin City
Emergency Loan Fund Co., Ltd., respectively.

Mediated by the Local Arbitration
Commission and documented in mediation documents No. 1358 and 1357, Shandong Shouguang Vegetable Industry Group Co., Ltd. and Shandong
Shouguang Vegetable Seed Industry Group Co., Ltd. were to repay $2,104,050 and $1,402,700 to Shandong Deepin City Emergency Loan Fund
Co., Ltd. before May 8, 2024, respectively. In addition, they were required to pay interests every ten days starting from January 1, 2024.
SCHC and SYCI are jointly and severally liable for both the principal and
interests.

Shandong Deepin City Emergency Loan Fund Co.,
Ltd. sought court action as Shandong Shouguang Vegetable Industry Group Co., Ltd. and Shandong Shouguang Vegetable Seed Industry Group
Co., Ltd. were unable to pay principal before deadline or interests as scheduled. Pursuant to court orders (2024) Lu 07 Exec 640 and (2024)
Lu 07 Exec 641, SCHC and SYCI, as guarantors, are required to repay the principal and interests. The Shandong Weifang Intermediate People's
Court ruled to auction the land at Xiangjiang road, Yangkou town, Shouguang City and the attached properties on it, and the auction proceeds
would be used to repay Shandong Deepin City Emergency Loan Fund Co., Ltd.

The court engaged a third-party
valuer for evaluation of the land at Xiangjiang road, Yangkou town ,Shouguang city and its attached properties. The valuation report returned
a fair value of $4,580,892. The Company recognized an impairment loss of $29,782,912 accordingly.

The court imposed a forced
auction of the land and its attached properties in July, 2025 however the auction was filed. A second auction was held on August 15, 2025.
The land and its attached properties were sold at $2,556,733. As the selling price was lower than the fair value, the Company recognized
a loss on disposal of long-term assets