Company: GURE
Filing Date: 2025-09-22
Form Type: S-3/A
Source: 0001193805-25-001326
Chunk: 16

Company: GULF RESOURCES, INC.
Filing Date: 2025-09-22
Form: S-3/A
Chunk 16
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OB announced the
PCAOB Holding Foreign Companies Accountable Act determinations (the “PCAOB determinations”) relating to the PCAOB’s
inability to inspect or investigate completely registered public accounting firms headquartered in China of the PRC or Hong Kong, a Special
Administrative Region and dependency of the PRC, because of a position taken by one or more authorities in the PRC or Hong Kong.

On August 26, 2022, the PCAOB signed a Statement
of Protocol with the CSRC and the Ministry of Finance of the People’s Republic of China governing inspections and investigations
of audit firms based in China and Hong Kong.

On December 15, 2022, the PCAOB announced in the
2022 Determination its determination that the PCAOB was able to secure complete access to inspect and investigate accounting firms headquartered
in mainland China and Hong Kong, and the PCAOB Board voted to vacate previous determinations to the contrary.

Should the PCAOB again encounter impediments to
inspections and investigations in mainland China or Hong Kong as a result of positions taken by any authority in either jurisdiction,
including by the CSRC or the MOF, the PCAOB will make determinations under the HFCAA as and when appropriate. The inability of the PCAOB
to conduct inspections of auditors in PRC makes it more difficult to evaluate the effectiveness of these accounting firm’s audit
procedures or quality control procedures as compared to auditors outside of PRC that are subject to the PCAOB inspections, which could
cause investors and potential investors in our Common stock to lose confidence in our audit procedures and reported financial information
and the quality of our financial statements.

Our auditor, GGF CPA LTD., Certified Public Accountants,
is a China-based accounting firm registered as a PCAOB-registered public accounting firm, it is required to undergo regular inspections
by the PCAOB to assess its compliance with the laws of the U.S. and professional standards. GGF CPA LTD has been subject to PCAOB inspections
and is not among the PCAOB-registered public accounting firms headquartered in the PRC or Hong Kong that is subject to the PCAOB’s
determination of having been unable to inspect or investigate completely. Notwithstanding the foregoing, if it is later determined that
the PCAOB is unable to inspect or investigate our auditor completely, if there is any regulatory change or step taken by PRC regulators
that does not permit our auditor to provide audit documentations located in China or Hong Kong to the PCA