Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 579

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 579
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 by
local townships or the government authority. The Company has not been able to obtain property ownership certificates over these
buildings and salt pans. The aggregate carrying values of these properties situated on parcels of the land are $50,219,026 and
$8,346,742 as at December 31, 2024 and December 31, 2023, respectively.

During the year ended December
31, 2024, depreciation and amortization expense totaled $17,989,747
of which $10,864,807, $6,806,372
and $318,568
were recorded in direct labor and factory overheads incurred cost of net revenue,
during plant shutdown, and administrative expenses respectively.

During the year ended
December 31, 2023, depreciation and amortization expense totaled $27,064,404 of
which $15,626,277, $4,113,962 and
$7,324,165 were
recorded in direct labor and factory overheads incurred cost of net revenue, during
plant shutdown, and administrative expenses respectively.

NOTE 7 – FINANCE LEASE RIGHT-OF-USE ASSETS

Property, plant and equipment under finance leases, net consist of the
following:

Finance Lease Right-Of-Use Assets - Schedule of Property,
Plant and Equipment Under Finance Leases

    December 31, 2024 
    December 31, 2023
  
    At cost: 

    Buildings Buildings 
    $208,473  
    $211,590 
  
    Total 
     208,473  
     211,590 
  
    Less: Accumulated depreciation and amortization 
     (131,605) 
     (128,475)
  
    Net book value 
     76,868  
     83,115 

    F-17 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

The above buildings erected on
parcels of land located in Shouguang, PRC, are collectively owned by local townships. The Company has not been able to obtain property
ownership certificates over these buildings as the Company could not obtain land use rights certificates on the underlying parcels of
land.

During the year ended December
31, 2024, depreciation and amort