Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 136

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1A
Chunk 136
---
 a waiver of such approval requirements, if and when procedures are established
to obtain such a waiver. Any uncertainties or negative publicity regarding such approval requirement could materially and adversely affect
our business, prospects, financial condition, reputation, and the trading price of our common stock.

In addition, on December 28, 2021, the CAC, the
National Development and Reform Commission (“NDRC”), and several other administrations jointly issued the revised Measures
for Cybersecurity Review, or the Revised Review Measures, which became effective and has replaced the existing Measures for Cybersecurity
Review on February 15, 2022. According to the Revised Review Measures, if an “online platform operator” that is in possession
of personal data of more than one million users intends to list in a foreign country, it must apply for a cybersecurity review. Based
on a set of Q&A published on the official website of the State Cipher Code Administration in connection with the issuance of the Revised
Review Measures, an official of the said administration indicated that an online platform operator should apply for a cybersecurity review
prior to the submission of its listing application with non-PRC securities regulators. Given the recency of the issuance of the Revised
Review Measures and their pending effectiveness, there is a general lack of guidance and substantial uncertainties exist with respect
to their interpretation and implementation. For example, it is unclear whether the requirement of cybersecurity review applies to follow-on
offerings by an “online platform operator” that is in possession of personal data of more than one million users where the
offshore holding company of such operator is already listed overseas. Furthermore, the CAC released the draft of the Regulations on Network
Data Security Management in November 2021 for public consultation, which among other things, stipulates that a data processor listed overseas
must conduct an annual data security review by itself or by engaging a data security service provider and submit the annual data security
review report for a given year to the municipal cybersecurity department before January 31 of the following year. If the draft Regulations
on Network Data Security Management are enacted in the current form, we, as an overseas listed company, will be required to carry out
an annual data security review and comply with the relevant reporting obligations.

39 

Because the majority of our operations are
in mainland China and our auditor has been located in mainland China, a jurisdiction where the U.S. Public Company Accounting Oversight
Board (“PCAOB”) is currently unable to conduct inspections without the approval of Chinese authorities, there