Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 72

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1B
Chunk 72
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 decrease was mainly due to the decrease
in the amount of accounts receivable in the current period as a result of the decrease in sales revenue. We have policies in place to
ensure that sales are made to customers with an appropriate credit history. We perform ongoing credit evaluation on the financial condition
of our customers.

43 

Inventory

Our inventory consists of the following:

    December 31, 2024 
    December 31, 2023

    % of total 
      
    % of total
  
    Raw materials 
    $10,610  
     3% 
    $32,840  
     5%
  
    Finished goods 
     304,761  
     97% 
     544,389  
     95%
  
    Total 
    $315,371  
     100% 
    $577,229  
     100%

The net inventory level as of
December 31, 2024 decreased by $261,858, as compared to the net inventory level as of December 31, 2023, one of the main reasons for the
reduction in inventories was the decline in sales.

Raw materials decreased by $22,230 as of December 31,
2024, as compared to December 31, 2023.

Finished goods decreased by $239,628 as of December
31, 2024, as compared to December 31, 2023.

Net Cash Used In Investing Activities

For the fiscal year 2024, we used approximately $60.5 million
for purchase of fixed assets.

For the fiscal year 2023, we used $0 for investing activities.

Net Cash Used In Financing
Activities

For the fiscal year 2024 and 2023, we used $0.3 million
to repay finance lease obligations.

We believe that our available
funds and cash flows generated from operations will be sufficient to meet our anticipated ongoing operating needs for the next twelve
months.

As of December 31, 2024, we had
approximately $10 million in available cash, all of which is in highly liquid current deposits yielding minimal or no interest. We do
not anticipate paying cash dividends in the foreseeable future.

We intend to continue to focus
our efforts on the activities of SCHC, SYCI, SHSI and DCHC as these segments continue to expand within the Chinese market.

We may not be able to identify,
successfully integrate or profitably manage