Company: GURE
Filing Date: 2025-12-31
Form Type: S-3/A
Source: 0001193805-25-001804
Chunk: 3

Company: GULF RESOURCES, INC.
Filing Date: 2025-12-31
Form: S-3/A
Chunk 3
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RC. Because substantially all of
our operations are conducted in China through our operating subsidiaries, the Chinese government may exercise significant oversight and
direction over the conduct of our business and may intervene in or influence our PRC operations at any time, which could result in a material
change in our operations and/or the value of our common stock. The Chinese government could also significantly limit or completely hinder
our ability to list and/or remain listed on a U.S. or other foreign exchange, and to offer future securities to investors and cause the
value of such securities to significantly decline or be worthless. See “Risk Factors – Risks associated with doing business
in China.”

We are subject
to certain legal and operational risks associated with being based in China. PRC laws and regulations governing our current business operations
are sometimes vague and uncertain, and as a result these risks may result in material changes in the operations of the subsidiaries, significant
depreciation of the value of our Common Stocks, or a complete hinderance of our ability to offer or continue to offer our securities to
investors. Recently, the PRC government adopted a series of regulatory actions and issued statements to regulate business operations in
China, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed
overseas using variable interest entity structure, adopting new measures to extend the scope of cyber security reviews, and expanding
the efforts in anti-monopoly enforcement.

Moreover,
U.S. public companies that have substantially all of their operations in China have been subjects of intense scrutiny, criticism and negative
publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and negative
publicity has centered on financial and accounting irregularities, lack of effective internal control over financial reporting, inadequate
corporate governance and ineffective implementation thereof and, in many cases, allegations of fraud. As a result of enhanced scrutiny,
criticism and negative publicity, the publicly traded stocks of many U.S.-listed Chinese companies have sharply decreased in value and,
in some cases, have become virtually worthless or illiquid. Many of these companies are now subject to shareholder lawsuits and SEC enforcement
actions and are conducting internal and external investigations into the allegations. It is not clear what effects the sector-wide investigations
will have on the Company. If the Company becomes a subject of any unfavorable allegations, whether such allegations are proven to be true
or untrue, the Company will have to expend significant resources to investigate such allegations and defend the Company.