Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 7

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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ificant Accounting Policies - Schedule of Property, Plant and Equipment Useful Life

  Minimum                                                                                 Useful life  
  Buildings (including salt pans)                                                         8 - 20       
  Plant and machinery (including protective shells, transmission channels and ducts)      3 - 8        
  Motor vehicles                                                                          5            
  Furniture, fixtures and equipment                                                       3 - 8        

Property, plant and equipment under the capital
lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the lease.

Producing oil and gas properties are depreciated
on a unit-of-production basis over the proved developed reserves. Common facilities that are built specifically to service production
directly attributed to designated oil and gas properties are depreciated based on the proved developed reserves of the respective oil
and gas properties on a pro-rata basis. Common facilities that are not built specifically to service identified oil and gas properties
are depreciated using the straight-line method over their estimated useful lives. Costs associated with significant development projects
are not depreciated until commercial production commences and the reserves related to those costs are excluded from the calculation of
depreciation.

(h) Retirement
Benefits

Pursuant to the relevant laws and regulations
in the PRC, the Company participates in a defined contribution retirement plan for its employees arranged by a governmental organization.
The Company makes contributions to the retirement plan at the applicable rate based on the employees’ salaries. The required contributions
under the retirement plans are charged to the condensed consolidated statement of income on an accrual basis when they are due. The Company’s
contributions totaled $173,485and $123,123for the three-month periods ended March 31, 2025 and 2024, respectively.

(i) Revenue
Recognition

Net revenue is net of discount and value added
tax and comprises the sale of bromine, crude salt and chemical products. Revenue is recognized when the control of the promised goods
is transferred to the customers in an amount that reflects the consideration that the Company expects to receive from the customers in
exchange for those goods. The acknowledgement of receipt of goods by the customers is when control of the product is deemed to be transferred.
Invoicing occurs upon acknowledgement of receipt of the goods by the customers. Customers have no rights to return the goods upon acknowledgement
of receipt of goods. Revenue from contracts with customers is disaggregated in Note 17.

NOTE 1 - BASIS OF PRESENTATION AND SUMMARY
OF SIGNIFICANT