Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 48

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 48
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 Shen No. 390, (2019) Lu 0783 Xing Shen No. 393,
and (2019) Lu 0783 Xing Shen No. 394, respectively (together, the “Court Rulings”) were made by the Court in favor of the
Bureau. The Court orders, among other relief, to enforce each of the Written Decisions, to return each subject land to its legal owners
and demolish or confiscate the buildings and facilities thereon and restore the land to its original state within 10 days from the service
of the Court Rulings on SCHC. The Court Rulings became enforceable immediately upon service on SCHC on May 5, 2019.

In the last twenty years, to the Company’s knowledge, there were
no government regulations requiring bromine manufacturers to obtain land use and planning approval document. As such, the Company believes
most of the bromine manufacturers in Shouguang City do not have land use and planning approval documents and lease their land parcels
from the village associations. They are facing the same issues in connection with land use and planning as the Company. To the Company’s
knowledge, the local government has submitted its plan to solve the issues to higher authority and are waiting for approval from the higher
authority.

The Company is in the process of resolving the issues in connection
with SCHC’s land use and planning diligently. The Company has been in discussions closely with the local government authorities
with the help from Shouguang City Bromine Association to seek reliefs and, based on verbal confirmation by local government authorities,
believes the administrative penalties imposed by the Bureau according to the Written Decisions are being re-assessed by local government
authorities and may be revoked. Pursuant to a Written Application dated October 28, 2019 addressed to the Court by the Bureau, the Bureau
withdrew its application for the enforcement proceedings regarding the administrative penalty imposed on Factory No. 7, Factory No. 8
and Factory No.10. Pursuant to a written decisions of administrative ruling captioned (2019) Lu 0783 Xing Shen No. 389 Zhi Yi, dated November
25, 2020, the Court orders to terminate the enforcement of the case captioned (2019) Lu 0783 Xing Shen No. 389. Production of Factory
No. 7 was allowed to resume in April 2019. The Company received a notification from the