Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 16

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 16
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 are stated at cost
less accumulated depreciation and any impairment losses. Expenditures for new facilities or equipment, and major expenditures for betterment
of existing facilities or equipment are capitalized and depreciated, when available for intended use, using the straight-line method at
rates sufficient to depreciate such costs less 5% residual value over the estimated productive lives. All other ordinary repair and maintenance
costs are expensed as incurred.

Mineral rights are recorded at cost less accumulated
depreciation and any impairment losses. Mineral rights are amortized ratably over the term of the lease, or the equivalent term under
the units of production method, whichever is shorter.

Construction in process primarily represents direct
costs of construction of property, plant and equipment. Costs incurred are capitalized and transferred to property, plant and equipment
upon completion and depreciation will commence when the completed assets are placed in service. 

The Company’s depreciation and amortization
policies on property, plant and equipment, other than mineral rights and construction in process, are as follows:

Basis of Presentation and Summary of
Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Life

    Minimum
        Maximum 

    Useful life
    (in years) 
  
    Buildings (including salt pans)
     
    8 - 20
  
    Plant and machinery (including protective shells, transmission channels and ducts)
     
    3 - 8
  
    Motor vehicles Motor Vehicles
     
    5
  
    Furniture, fixtures and equipment
     
    3 - 8

Property, plant and equipment under the finance
lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the lease.

Producing oil and gas properties are depreciated
on a unit-of-production basis over the proved developed reserves. Common facilities that are built specifically to service production
directly attributed to designate oil and gas properties are depreciated based on the proved developed reserves of the respective oil and
gas properties on a pro-rata basis. Common facilities that are not built specifically to service identified oil and gas properties are
depreciated using the straight-line method over their estimated useful lives. Costs associated with significant development projects are
not depreciated until commercial production commences and the reserves related to those costs are excluded from the calculation of depreciation.

(i)           Retirement
Benefits

Pursuant to the relevant laws and regulations
in the PRC, the Company