Company: GURE
Filing Date: 2025-09-22
Form Type: S-3/A
Source: 0001193805-25-001326
Chunk: 23

Company: GULF RESOURCES, INC.
Filing Date: 2025-09-22
Form: S-3/A
Chunk 23
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 control of a PRC domestic enterprise if (i) any important industry is concerned, (ii) such
transaction involves factors that have or may have impact on the national economic security, or (iii) such transaction will lead to a
change in control of a domestic enterprise which holds a famous trademark or PRC time-honored brand.

The approval from the MOFCOM shall be obtained
in circumstances where overseas companies established or controlled by PRC enterprises or residents acquire affiliated domestic companies.
Mergers, acquisitions or contractual arrangements that allow one market player to take control of or to exert decisive impact on another
market player must also be notified in advance to the anti-monopoly authority under the State Council when the threshold under the Provisions
on Thresholds for Prior Notification of Concentrations of Undertakings, or the Prior Notification Rules, issued by the State Council in
August 2008 and amended in September 2018, is triggered. In addition, the Rules of the Ministry of Commerce on Implementation of Security
Review System of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the Security Review Rule issued by the MOFCOM
that became effective in September 2011 specify that mergers and acquisitions by foreign investors that raise “national defense
and security” concerns and mergers and acquisitions through which foreign investors may acquire de facto control over domestic enterprises
that raise “national security” concerns are subject to strict review by the MOFCOM, and the rules prohibit any activities
attempting to bypass a security review, including by structuring the transaction through a proxy or contractual control arrangement.

Furthermore, on December 19, 2020, the National
Development and Reform Commission, or the NDRC, and MOFCOM promulgated the Measures for Security Review of Foreign Investment, or the
Foreign Investment Security Review Measures, which took effect on January 18, 2021. Under the Foreign Investment Security Review Measures,
investment in certain key areas which results in acquiring the actual control of the assets is required to obtain approval from designated
governmental authorities in advance. We may grow our business in part by acquiring other companies operating in our industry. Complying
with the requirements of the new regulations to complete such transactions could be time-consuming, and any required approval processes,
including approval from the MOFCOM, the State Administration for Industry and Commerce and other governmental authorities, may delay or
inhibit our ability to complete such transactions, which could affect our ability to expand our business or maintain