Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 33

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 to open in the future and so that plants close to population centers do not cause
serious environmental damage. In addition, the Company believes that the Shandong provincial government wants to assure that each of its
regional and county governments has applied the Notice in a consistent manner.

The Shouguang City Bromine
Association, on behalf of all the bromine plants in Shouguang, started discussions with the local government agencies. The local governmental
agencies confirmed the facts that their initial requirements for the bromine industry did not include the project approval, the planning
approval and the land use rights approval and that those three additional approvals were new requirements of the provincial government.
The Company understood from the local government that it has been coordinating with several government agencies to solve these three outstanding
approval issues in a timely manner and that all the affected bromine plants willnot be allowed to commence production prior to obtaining
those approvals.

In February 2019, the Company received a notification
from the local government of Yangkou County that its Factory No. 1, No.4, No. 7 and No. 9 had passed inspection and could resume operations.
In April 2019, Factory No. 1 and No. 7 resumed operations.

On February 28, 2020,
the Company announced that it received an approval from the government to resume bromine production after winter temporary closure. Subsequently,
it received another approval from the Shouguang Yangkou People’s Government dated on March 5, 2020 to resume production at its bromine
factories No.1, No. 4, No.7 and No. 9 in order to meet the needs of bromide products for epidemic prevention and control. With these two
approvals, the Company was allowed to resume production at all four bromine factories.

The Company received
an oral notification from the government for its Factory No. 8, which permitted Factory No.8 to resume production in August 2022. Factory
No.8 started to contribute revenue in the fourth quarter 2022.

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 to satisfy the local government's requirements.

On November