Company: GURE
Filing Date: 2025-09-22
Form Type: S-3/A
Source: 0001193805-25-001326
Chunk: 10

Company: GULF RESOURCES, INC.
Filing Date: 2025-09-22
Form: S-3/A
Chunk 10
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 If one or more of these analysts cease coverage of our Company or fail
to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our share price or trading volume
to decline.

Sales of a substantial number of our shares in the public market, or the perception that they may occur, could cause the price of our shares to fall.

The market price of our shares of common stock
could decline as a result of sales of a large number of our shares in the public market following this offering. A substantial majority
of our outstanding shares are freely tradeable without restriction or further registration under the Securities Act of 1933, as amended
(the “Securities Act”). Volatility or a reduction in the market price of our shares could have an adverse effect on the market
price of the shares and existing warrants. The perception that these sales might occur may also cause the market price of our shares to
decline.

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Risks Related to Doing Business in China

Uncertainties and quick changes in the PRC legal system could result in a material and negative impact on our business operations, decrease the value of our Ordinary Shares and limit the legal protections available to you and us.

The PRC legal system is a civil law system based
on written statutes. Unlike the common law system, prior court decisions may be cited for reference but have limited precedential value.
Our PRC Subsidiaries are foreign-invested enterprises and are subject to laws and regulations applicable to foreign-invested enterprises
as well as various Chinese laws and regulations generally applicable to companies incorporated in mainland China. However, since these
laws and regulations are relatively new and the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations
and rules are not always uniform and enforcement of these laws, regulations and rules involves uncertainties.

From time to time, we may have to resort to administrative
and court proceedings to enforce our legal rights. However, since the PRC administrative and court authorities have significant discretion
in interpreting and implementing statutory and contractual terms, it may be more difficult to evaluate the outcome of administrative and
court proceedings and the level of protection we enjoy than in more developed legal systems. Furthermore, the PRC legal system is based
in part on government policies and internal rules, some of which are not published on a timely basis or at all, and which may have a retroactive
effect. As a result, we may not be aware of our violation