Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 518

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7A
Chunk 518
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. 389. Production of Factory No. 7 was allowed to resume in April 2019. The Company received a notification from the Shouguang
City Government in February 2019 informing the Company that Factory No. 1, No.4, No. 7 and No. 9 have passed inspection and were approved
to resume operation

In addition, on August 28, 2019,
the People’s Government of Shandong Province, issued a regulation titled “Investment Project Management Requirements of Chemical
Companies in Shandong Province” permitting the construction of facilities on existing sites or infrastructure of bromine manufacturing
and other chemical industry-related types of projects (clause 11 of section 3). The Company believes that the goal of the government is
to standardize and regulate the industry and not to demolish the facilities or penalize the manufacturers. As of the date of this report,
the Company has not been notified 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 December 31, 2024.

NOTE 22 - SUBSEQUENT EVENT

Subsequent Events

On January 20, 2025,
the company issued total 295,000 shares to its employees, officers and consultant for the services rendered for the year ended
December 31, 2024.

Pursuant to the notification from
the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 15, 2024 until February
12, 2025. In compliance with the notification, the Company ceased production at its bromine facilities during this period and resumed
preparation operations at the bromine and crude salt factories as scheduled in February 2025.

    F-27 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31,