Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 18

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 18
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52,926
of prepaid land lease recorded in other operating loss in the consolidated statements of loss for fiscal year ended December 31, 2018.
The Company incurred dismantling fee in the amount of

$273,757 recorded in other operating
loss in the consolidated statements of loss for fiscal year ended December 31, 2018. The Company negotiated with the local villages over
compensation for the payment already made for these land leases and mineral rights in the past. This part of the cost has been used as
the resumption of land use, so the village committee will not be compensated.

In February 2019, the Company
received a notification from the local government of Yangkou County that its Factory No. 1, No. 4, No. 7 and No. 9 passed inspection and
could resume operations. In April 2019, Factory No.1 and Factory No.7 resumed operation.

On November 25, 2019, the government
of Shouguang City issued a notice ordering all bromine facilities in Shouguang City, including the Company’s bromine facilities,
including Factory No. 1 and Factory No. 7, to temporarily stop production from December 16, 2019 to February 10, 2020. Subsequently, due
to the coronavirus outbreak in China, the local government ordered those bromine facilities to postpone the commencement of production.
Subsequently, the Company received an approval dated February 27, 2020 issued by the local governmental authority allowing the Company
to resume production after the winter temporary closure. Further, the Company received another approval from the Shouguang Yangkou People’s
Government dated March 5, 2020 allowing the Company to resume production at its bromine factories No. 1, No. 4, No.7 and No. 9 in order
to meet the needs of bromide products for epidemic prevention and control (the “March 2020 Approval”). The Company’s
Factories No. 1 and No. 7 commenced trial production in mid-March 2020 and commercial production on April 3, 2020 and its Factories No.
4 and No. 9 commenced commercial production on May 6, 2020. The Company received verbal notification from the government regarding Factory
No. 8, allowing it to recommence production in August 2022. Factory No. 8 began contributing revenue in the fourth quarter