Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 457

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7
Chunk 457
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 City, Shandong Province for the proposed Yuxin Chemical factory. Construction of the
new chemical facilities at Bohai Marine Fine Chemical Industrial Park commenced in June 2020. Initially, the construction was projected
to last around one year, with an additional six months for equipment installation and testing. However, due to the COVID epidemic and
electrical restrictions, the opening of the chemical factory has been postponed. The Company has received the refrigeration and air compressor
units. 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.

Natural Gas

In January 2017, the Company completed
the construction of the first brine water and natural gas well field in Daying County, Sichuan Province, and commenced trial production
in January 2019. On May 29, 2019, the Company received verbal notice from the government of Tianbao Town, Daying County, Sichuan Province,
mandating the need for project approval for its Daying well, encompassing the entire natural gas and brine water project. This also includes
approvals for safety production inspection, environmental protection assessment, and to solve the related land issue. Until these approvals
are obtained, the Company must temporarily suspend trial production at its natural gas well in Daying. Additionally, in compliance with
the Chinese government new policies, the Company is required to obtain an exploration license for bromine and a mining license for natural
gas. Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in Promoting the Reform of Mineral Resources Management
(Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020, which came into effect on May 1, 2020, privately owned
enterprises are allowed to participate in the natural gas production. The Company is engaged in ongoing discussions with the government
of Daying County regarding the establishment of a joint venture for the exploration and production of natural gas and brine products in
Sichuan.

As a result of our
acquisitions of SCHC and SYCI, our historical consolidated financial statements and the information presented