Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 50

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 50
---
8:00 AM China Time. To comply with such notification, the Company had temporarily stopped production at its bromine facilities
during the aforesaid period and reopened the operating bromine and crude salt factories in February, 2023 as planned.

The Company is still
waiting for governmental approval for factories No. 2 and No. 10. To its knowledge, the government is currently completing its planning
process for all mining areas including that for prevention of flood. As a result, the Company may be required to make some modifications
to our current wells and aqueducts prior to commencement of operations of these factories in order to satisfy the local government's requirements. 

On November 24, 2017, Gulf Resources received a letter from the People’s
Government of Yangkou County, Shouguang City notifying the Company that due to the new standards and regulations relating to safety production
and environmental pollution, from certain local governmental departments, such as the municipal environmental protection department, the
security supervision department and the fire department, its chemical enterprises would have to be relocated to a new industrial park
called Bohai Marine Fine Chemical Industry Park.  Although our chemical companies were in compliance with regulations, they
were also close to a residential area. As a result, the government determined we should relocate to the Bohai park. Chemical companies
that are not being asked to move into the park are being permanently closed.  Since our factories closed, the Company has secured
from the government the land use rights for its chemical plant. On January 6, 2020, the Company received the environmental protection
approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory. The Company began the construction
on its new chemical facilities located at Bohai Marine Fine Chemical Industrial Park in June 2020. The construction was expected to take
approximately one year and an additional six months to complete the equipment installation and testing, however due to the COVID epidemic
and electrical restrictions, the opening of the chemical factory has been delayed. [The  Company has received the refrigeration and
air compressor units. On July 26, 2023, the Company announced that the delivery of the remaining equipment for its Yuxin chemical factory
has been temporarily delayed and to review its chemical products strategy.

In January 2017, the
Company completed the first brine water and natural gas well field construction in Daying located in Sichuan Province and commenced