GULF RESOURCES, INC.

Gulf Resources, Inc.

Corporate identity and footprint

• Legal form: Gulf Resources, Inc., a Nevada corporation (formerly Diversifax, Inc.).
• Primary operations: all activities are located in the People’s Republic of China (PRC).
• Functional currency: RMB (PRC); reporting currency: USD. Average RMB→USD exchange rates for 2024–2025 were roughly 0.139–0.140 USD per RMB.

Business segments and subsidiaries

Gulf Resources operates across four segments: bromine, crude salt, chemical products, and natural gas.

Wholly owned PRC subsidiaries:

• SCHC — bromine and crude salt production
• SHSI — crude salt trading
• SYCI — chemical products (operations suspended/relocating)
• DCHC — natural gas and brine resources development in Sichuan

As of 2025 year-end, SYCI’s operations were suspended or relocating to Bohai Marine Fine Chemical Industry Park.

Recent corporate actions

• December 22, 2025: closed sale of Shouguang Yuxin Chemical Industry Co., Limited (SYCI) to Shandong Rongyuan Pharmaceutical Co., Ltd. for RMB 21.2 million (deal announced December 10, 2025 and closed after required registrations).
• October 27, 2025: completed a 1-for-10 reverse stock split; ordinary shares began trading on Nasdaq on a split-adjusted basis.
• May 2025: transferred listing to the Nasdaq Capital Market (from Nasdaq Global Select Market) and received compliance extensions; the company is pursuing plans to maintain its Nasdaq listing.

Products and operations

• Bromine: produced from natural brine at SCHC. Used to make bromine compounds (flame retardants, fumigants, water treatment products, dyes, medicines, disinfectants) and as an intermediate in organic synthesis.
• Crude salt: produced by evaporating brine after bromine extraction; used in alkali production and across chemical, food, and agricultural industries.
• Chemical products: historically produced by SYCI, focused on items used in oil and gas field exploration, papermaking, inorganic chemicals, and antibiotic-related materials. SYCI’s facilities have been relocated/are being relocated to Bohai Marine Fine Chemical Industrial Park; relocation and construction costs are ongoing.
• Natural gas: DCHC is pursuing exploration and development of natural gas and brine resources in Daying County, Sichuan. Discussions with local authorities regarding permits for natural gas and halogenated water mining are in progress; activities are subject to PRC mineral resource regulations.

Revenue and customer concentration (2024–2025)

• Bromine:
  • Top three bromine customers totaled $9,971,820 in 2025, representing about 43% of bromine net revenue.
  • The largest bromine customer accounted for roughly 15% of bromine net revenue.
  • Four principal PRC customers named in 2025 (company-wide): Shandong Morui Chemical Company Limited; Shandong Shouguang God Runfa Ocean Chemical Co., Ltd.; Shandong Brother Technology Limited; Shouguang Weidong Chemical Company Limited.
• Crude salt:
  • 2025 net revenue: $2,418,032.
  • 2024 net revenue: $2,049,988.
  • The three largest crude salt customers represented 100% of crude salt net revenue in both 2025 and 2024; the largest crude salt customer accounted for about 40% (2025) and 38% (2024).
• Chemical products:
  • Net revenue: $0 in 2025 and $0 in 2024.
• Natural gas:
  • Net revenue: $0 in 2025; $61,207 in 2024.

Employees and compensation

• Total full-time employees (as of December 31, 2025): approximately 355.
• Distribution: about 79% employed by SCHC, SHSI, and DCHC; about 21% by SYCI.
• Staffing mix: roughly 30% management personnel; about 5% sales and procurement staff.
• No employees are represented by a union.
• The company participates in Chinese social insurance programs and recorded social insurance expense of approximately $508,947 for 2025.

Geographic presence and assets

• Bromine and crude salt operations are concentrated in Shandong Province (Shouguang City).
• Planned chemical factory relocation is in the Bohai region of Shandong.
• DCHC’s natural gas and brine activities are in Daying County, Sichuan Province.
• The company holds multiple land-use rights and mining permits across factory sites, with lease terms that include long-duration arrangements (some 50-year terms), annual rent obligations, and periodic permit renewals.

Regulatory and listing considerations

• The company has experienced Nasdaq listing and compliance actions and is pursuing steps to maintain its listing.
• Operations and listings are subject to PRC regulatory requirements, including oversight related to overseas listings and foreign investment.

Summary

Gulf Resources, Inc. is a Nevada corporation whose core operations are conducted in the PRC. The company focuses on bromine and crude salt production through SCHC and related entities, with chemical product activities previously conducted by SYCI (relocated and sold in December 2025) and ongoing natural gas/brine development through DCHC. Key 2025 figures include approximately 355 employees, crude salt net revenue of $2.418 million, bromine customer concentrations noted above (top three customers totaling $9.97 million), chemical products net revenue of $0, and natural gas net revenue of $0 in 2025. Recent corporate developments include the December 2025 sale of SYCI, a reverse stock split in October 2025, and a transfer of the Nasdaq listing tier in May 2025.