Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 19

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 19
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2022.

Pursuant to a 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
operations at the bromine and crude salt factories as scheduled in February 2025.

Because many smaller producers
have not had the capital to conduct the rectification required by the government, management believes there could be some extremely attractive
acquisition opportunities in bromine. However, at the present time, all of management’s attention is focused on getting its facilities
approved and in full production. Management may consider acquisition opportunities in this segment in the future if the prices were sufficiently
attractive.

10 

We secured the land for our upcoming
chemical factory and obtained the final approval regarding environmental protection assessment. Construction of the new chemical facilities
located at Bohai Marine Fine Chemical Industrial Park, commenced in June 2020. Initially, the construction was projected to last around
one year, with an additional six months for equipment installation and testing, However, due to the COVID epidemic and electrical restrictions,
the opening of the chemical factory has been postponed. The Company has received the refrigeration and air compressor units. The estimated
total cost for the relocation process is approximately $69 million. As of December 31, 2024 and 2023, the Company incurred relocation
costs in the amount of $45,584,344 and $45,584,344, respectively. Additionally, the procurement of the final equipment for our chemical
factory has been postponed until we have a better understanding of the potential for derivative bromine products. We anticipate proceeding
with the completion of its chemical factory in due course. However, in the event that the Chinese economy persists in its weakness and
if we perceives this trend to be ongoing, there is a possibility that the chemical factory could be repurposed for the production of Sodium-Ion
batteries.

In January 2017, the Company completed
the construction of the first brine water and natural gas well field in Daying County, Sichuan Province, and commenced trial production
in January 2019. On May 29, 2019, the Company received verbal notice from the government of Tianbao Town, Daying County, Sichuan Province,
mandating the need for project approval for its Daying well