Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 51

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 51
---
 trial
production in January 2019. On May 29, 2019, the Company received a verbal notice from the government of Tianbao Town ,Daying County,
Sichuan Province, whereby the Company is required to obtain project approval for its well located in Daying, including the whole natural
gas and brine water project, and approvals for safety production inspection, environmental protection assessment, and to solve the related
land issue. Until these approvals have been received, the Company has to temporarily halt trial production at its natural gas well in
Daying. In compliance with the Chinese government new policies, the Company is also required to obtain an exploration license and a mining
license for bromine and natural gas, respectively. Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in
Promoting the Reform of Mineral Resources Management (Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020,
which came into effect on May 1, 2020, privately owned enterprises are allowed to participate in the natural gas production. The Company
plans to proceed with its applications for the natural gas and brine project approvals with related government departments until after
the governmental planning has been finalized the land and resource planning for Sichuan Province.

In April 2022, Shouguang Hengde Salt Industry
Co. Ltd (“SHSI”), our subsidiary, was incorporated in Shandong Province, China, for crude salt production and trading.

On January 28, 2020 we completed a 1-for-5 reverse
stock split of our common stock, such that for each five shares outstanding prior to the stock split there was one share outstanding after
the reverse stock split.  All shares of common stock referenced in this report have been adjusted to reflect the stock split
figures.

Recent Developments

Acquisition Agreements

 In
June 2024, a wholly owned subsidiary of the Company, Shouguang Hengde Salt Industry Co. Ltd ( “SHSI”) entered into crude salt
field acquisition agreements with Shouguang Qingshuibo Farm Co., LTD. (“Seller A”), Shouguang city Yangkou town Dingjia Zhuangzi
village stock economic cooperative (“Seller B”), Shouguang city Yangkou town Shanjia Zhuangzi village stock economic cooperative
(“Seller C”), Shouguang City Yangkou town Zhengjia Zhuangzi