Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 578

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 578
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 and as of January 1, 2019. The land use certificate was issued on October
25, 2019. The lease term expires on August 12, 2069. The amount paid was recorded as prepaid land leases, net of current portion in
the consolidated balance sheet as of December 31 2024 and 2023. As of December 31, 2024, the prepaid land lease increased to
$9,204,556 due to an additional amount paid for stamp duty and related land use rights fees. Amortization of this prepaid land lease
will commence when the chemical factory is built and placed in service.

    F-16 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consist of the following:

Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment

    December 31, 2024 
    December 31, 2023
  
    At cost: 

    Mineral rights 
    $2,682,882  
    $2,722,997 
  
    Buildings 
     68,476,868  
     29,863,200 
  
    Plant and machinery 
     143,839,420  
     185,738,906 
  
    Furniture, fixtures and office equipment 
     1,435,090  
     1,456,547 
  
    Motor vehicles 
     124,215  
     126,072 
  
    Construction in process 
     10,155,642  
     10,307,491 
  
    Total 
     226,714,117  
     230,215,213 
  
    Less: Accumulated depreciation and amortization 
     (83,826,560) 
     (108,027,190)
  
    Impairment 
     (6,744,380) 
     — 
  
    Net book value 
    $136,143,177  
    $122,188,023 

The Company has certain
buildings and salt pans erected on parcels of land located in Shouguang, PRC, and such parcels of land are collectively owned