Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 31

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 by the local government that it will take any measure to enforce the administrative penalties. Based on information
known to date, the Company believes that it is remote that the Written Decisions or Court Rulings will be enforced within the expected
timeframe and a material penalty or costs and expenses against the Company will result. However, there can be no assurance that there
will not be any further enforcement action, the occurrence of which may result in further liabilities, penalties and operational disruption.

In view of the above facts and circumstances,
the Company believes that it is not necessary to accrue for any estimated losses or impairment as of March 31, 2025.

NOTE 21 - SUBSEQUENT EVENT

Not Applicable.

Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Cautionary Note Regarding Forward-Looking Statements

The discussion below contains “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section
21E of the Exchange Act. We have used words such as “believes,” “intends,” “anticipates,”
“expects” and similar expressions to identify forward-looking statements. These statements are based on information currently
available to us and are subject to a number of risks and uncertainties that may cause our actual results of operations, financial condition,
cash flows, performance, business prospects and opportunities and the timing of certain events to differ materially from those expressed
in, or implied by, these statements. Except as expressly required by the federal securities laws, we undertake no obligation
to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future
events, developments, or changed circumstances, or for any other reason.

Overview

We are a Nevada holding
company which conducts operations through our wholly-owned China-based subsidiaries. Our business is conducted and reported in four segments,
namely, bromine, crude salt, chemical products and natural gas.

Through our wholly-owned
subsidiary, SCHC, we produce and trade bromine and crude salt. We are one of the largest producers of bromine in China, as measured
by production output. Elemental bromine is used to manufacture a wide variety of bromine compounds used in industry and agriculture. Bromine
also is used to form intermediary chemical compounds such as Tetramethylbenzidine. Bromine is commonly used in brominated flame
retardants, fumigants