Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 169

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 3
Chunk 169
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 local government of Yangkou County that its Factories No. 1, No. 4, No.
7 and No. 9 passed inspection and were allowed to resume operations. In April 2019, Factory No. 1 and No. 7 resumed operations.

Subsequently, the Company received
an approval dated on February 27, 2020 issued by the local governmental authority which allows us to resume production after the winter
temporary closure. Further, the Company 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 (the “March 2020 Approval”). The Company’s factories No.7 and No.1 started trial production in
middle-March, 2020, and commenced commercial production on April 3, 2020.

The Company received oral notification
from the government regarding Factory No. 8, allowing it to resume production in August 2022. Factory No.8 began contributing revenue
in the fourth quarter 2022.

36 

The Company is awaiting governmental
approval for Factories No. 2 and No. 10. To our knowledge, the government is finalizing plans for all mining areas, including flood prevention
measures . As a result, we may be required to make certain modifications to our existing wells and aqueducts prior to commencement of
operations of these factories in order to satisfy the local government's requirements. The Company completed its flood prevention project
in December 2023. This project was implemented for safeguarding its bromine facilities.

Pursuant to the notification from
the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 15, 2024 until February
12, 2025. In compliance with the notification, the Company ceased production at its bromine facilities during this period and resumed
preparation operations at the bromine and crude salt factories as scheduled in February 2025.

Chemical Products

On November 24, 2017, the Company
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