Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 20

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 20
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, encompassing the entire natural gas and brine water project. This also includes
approvals for safety production inspection, environmental protection assessment, and to solve the related land issue. Until these approvals
are obtained, the Company must temporarily suspend trial production at its natural gas well in Daying. Additionally, in compliance with
the Chinese government new policies, the Company is required to obtain an exploration license for bromine and a mining license for natural
gas. Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in Promoting the Reform of Mineral Resources Management
(Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020, which came into effect on May 1, 2020, privately owned
enterprises are allowed to participate in the natural gas production. The Company is engaged in ongoing discussions with the government
of Daying County regarding the establishment of a joint venture for the exploration and production of natural gas and brine products in
Sichuan.

We are not writing off any of
the goodwill related to our chemicals business. We believe the upcoming chemical factory could produce sales and profits. We believe there
may be much less capacity in the chemical industry, as many factories may be permanently closed. In addition, other competitor factories
may reduce their production capacity. We expect to have a factory that operates efficiently. Considering the above factors and our strength
with better equipment, we expect to generate sales and earnings in this segment at a level well above previous periods.

We will continue to control the
land and buildings where the old chemical factories are located. At this time, we have not considered how or if we can monetize those
assets.

In April 2022, our subsidiary,
Shouguang Hengde Salt Industry Co. Ltd, was incorporated in Shandong Province, China, specifically for crude salt production and trading.
This subsidiary was established in response to a new government policy mandating separate registrations for bromine and crude salt companies.

As of the date of this annual report,
the Company is awaiting governmental approval for Factories No. 2 and No. 10.

11 

Our Business Segments

Our business operations are conducted in four segments,
bromine, crude salt, chemical products, and natural gas. We manufacture and trade bromine, crude salt and natural gas, and manufacture
and sell chemical products used in oil and gas field explorations and papermaking chemical agents, and materials for human and animal