Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 28

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 28
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 $69 million in total in connection with the relocation. The Company
incurred relocation costs in the amount of $45,584,344 as of December 31, 2024.

In January 2020, the Company received
the environmental protection approval by the government of Shouguang City, Shandong Province for the planned Yuxin Chemical factory. Construction
of the new chemical facilities at Bohai Marine Fine Chemical Industrial Park commenced in June 2020, with the bulk of the civil engineering
works completed by the end of June 2021. However, due to the supply chain issues as well as the electric restrictions in China, the delivery
of some equipment, along with the equipment installation and testing and beginning trial production at the chemical factory, was delayed.
On February 22, 2022, the Company announced that discussions with the government had led to an easing of electricity restrictions. As
a result, the Company re-engaged with its suppliers to proceed with the production and delivery of the remainder of the equipment, aiming
to finish installation and begin testing and trial production. At this stage, the Company also began preparation work for its application
for safety and environmental assessment. 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.

Competition

To date, our sales have been limited
to customers within the PRC and we expect that our sales will remain primarily domestic for the immediate future. Our marketing strategy
involves developing long term ongoing working relationships with customers based on large multi-year agreements which foster mutually
advantageous relationships.

We compete with PRC domestic private
companies and state owned companies. Certain state owned and state backed competitors are more established and have more control of certain
resources in terms of pricing than we do. We compete based on price, our reputation for quality, on-time delivery, our relationship with
suppliers and our geographical proximity to natural brine deposits in the PRC for bromine, crude salt and chemical productions. Management
believes that our stable quality, manufacturing processes and plant capacity for the production of bromine, crude salt and chemical products
are