Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 458

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7
Chunk 458
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 below reflects the
accounts of SCHC、SYCI and DCHC, the consolidated financial
statements and the information presented below as of and for the year ended December 31, 2024. The following discussion should be
read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this report.

Flood Prevention Project

In August
2023, the Company initiated its preventive measures for safeguarding its bromine facilities. Our strategy involves the renovation of the
channels of four major rivers within our mining area, encompassing the tributary of the Mihe River. The aim is to prevent flooding that
could harm the wells, aqueducts and crude salt pans at our plant. In December 2023, the Company completed this flood prevention project.
As of December 31, 2023, we incurred $46,510,856 in other expenses for the project.

The cost incurred for four major
rivers are: (1) Liansigou Section for $8,057,722;(2) Mi River Section for $20,168,321;(3) Ta River Section $10,070,033; (4) Weitan River
Section for $8,214,780.

37 

RESULTS OF OPERATIONS.

Year ended December 31, 2024 as compared to year ended
December 31, 2023

    Years ended 

    December 31, 2024 
    December 31, 2023 
    Percent Change Increase/ (Decrease)
  
    Net Revenue 
    $7,661,010  
    $30,043,790  
     (75%)
  
    Cost of Net Revenue 
    $(14,746,741) 
    $(28,089,953) 
     (48%)
  
    Gross Profit 
    $(7,085,731) 
    $1,953,837  
     (463%)
  
    Sales, Marketing and Other Operating Expense 
    $(46,264) 
    $(59,055) 
     (22%)
  
    Direct labor and factory overheads incurred during plant shutdown 
    $(8,880,643) 
    $(9,544,675) 
     (7%)
  
    General and Administrative Expenses 
    $(5,271,011) 
    $(4,240,832) 
     24%
  
    Loss from Operations 
    $(21,283,649