Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 24

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 24
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 are made to customers who are credit-worthy.

During the year ended December
31, 2024, sales to our three largest bromine customers, based on net revenue from such customers, aggregated $1,969,624 or
approximately 35% of total net revenue from sale of bromine; and sales to our largest customer represented approximately 12%,
respectively, of total net revenue from the sale of bromine.

During the year ended December
31, 2023, sales to our three largest bromine customers, based on net revenue from such customers, aggregated $10,866,228 or approximately
40% of total net revenue from sale of bromine; and sales to our largest customer represented approximately 14%, respectively, of total
net revenue from the sale of bromine.

During each of the years ended
December 31, 2024 and 2023, sales to our three largest crude salt customers, based on net revenue from such customers, aggregated $2,049,988
and $2,971,467, respectively, or approximately 100% and 100% of total net revenue from sale of crude salt; and sales to our largest customer
represented approximately 38% and 38%, respectively, of total net revenue from the sale of crude salt.

During each of the years ended December 31, 2024 and
2023, the net revenue for the chemical products was $0.

During each of the years ended December
31, 2024 and 2023, the net revenue for the natural gas was $61,207 and $150,861.

Principal Suppliers

Our principal external suppliers
are Laizhou Shengfu Chemical Company Limited, Weifang Wanhong Chemical Company Limited, Shandong Xinlong International Trade Company Limited,
Shouguang Runfeng trading Company Limited.

During the year ended December
31, 2024 and 2023, we purchased 100% of raw materials for our bromine and crude production from our top four suppliers.

During the year ended December
31, 2024 and 2023, we did not purchase any raw materials for chemical products production. This supplier concentration makes us vulnerable
to a near-term adverse impact, should the relationships be terminated.

14 

Business Strategy

Expansion of Production Capacity to Meet Demand

▼ Bromine and Crude Salt

In view of keen competition and
the trend of less bromine contraction of brine water being extracted in Shougu