Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 2

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 2
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(including bromine and crude salt) in the PRC. DCHC’s business commenced trial operation in January 2019 but suspended production
temporarily in May 2019 as required by the government to obtain project approval (see Note 1 (b)(iii)).

On March 11, 2020, the World Health
Organization (WHO) officially declared COVID-19 a pandemic. The duration and intensity of the impact of the COVID-19 and resulting
disruption to the Company’s operations and financial position is uncertain. While our operations are currently not materially
affected, it is unknown whether or how they may be affected if such a pandemic persists for an extended period. While not yet
quantifiable, the Company believes this situation did not have a material adverse impact on its operating results in the year of
2021 and will continue to assess the financial impact. The virus outbreak slightly delayed the commencement of the operations for
Factory No.1, No.4, No.7, No.9. We received approval to open factory No. 8 in 2022. COVID has still delayed the approval for
factories N0.2 and No.10.

(i) Bromine and Crude Salt Segments

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 passed inspection and could resume operations.
In April 2019, Factory No.1, and Factory No.7 resumed operation.

On November 25, 2019, the government of
Shouguang City issued a notice ordering all bromine facilities in Shouguang City, including the Company’s bromine facilities, including
Factory No. 1 and Factory No. 7, to temporarily stop production from December 16, 2019to February 10, 2020. Subsequently, due to the coronavirus
outbreak in China, the local government ordered those bromine facilities to postpone the commencement of production. Subsequently, the
Company received an approval dated February 27, 2020 issued by thelocal governmental authority allowing the Company to resume production
after the winter temporary closure. Further, the Company received another approval from the Shouguang Yangkou People’s Government
dated March 5, 2020 allowing the Company to resume production at its bromine factories No. 1, No. 4,