FINANCE LEASE RIGHT-OF-USE ASSETS

3 Months Ended

Mar. 31, 2026

NOTE 7 –FINANCE LEASE RIGHT-OF-USE ASSETS

Property, plant and equipment under finance leases, net consist of the following:

	March 31,			December 31,
	2026			2025
At cost:
Buildings	$	61,488,091		$	60,531,168
Total		61,488,091			60,531,168
Less: Accumulated depreciation and amortization		(20,433,786	)		(19,390,837	)
Net book value	$	41,054,305		$	41,140,331

The above buildings erected on parcels of land located in Shouguang, PRC, are collectively owned by local townships. The Company has not been able to obtain property ownership certificates over these buildings as the Company could not obtain land use rights certificates on the underlying parcels of land.

During the three-month period ended March 31, 2026, depreciation and amortization expense totaled $733,298, respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general & administrative expenses.

During the three-month period ended March 31, 2025, depreciation and amortization expense totaled $775,702, respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general & administrative expenses.

See Note 24- Restatement, for discussion regarding the impact of the Restatement.

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2026

(Expressed in U.S. dollars)

(UNAUDITED)