Gulf Resources, Inc 10-Q for FY2026 Q2

Gulf Resources, Inc. (GURE)

10-Q 2026-09-30 For: 2026-06-30

Added on September 30, 2026

About this 10-Q

Gulf Resources, Inc filed this 10-Q on September 30, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $12.89M; up 54.5% from $8.34M a year earlier
Net income: $1.14M; compared with a net loss of $814.36K a year earlier
Diluted EPS: $0.64; compared with -$0.60 a year earlier

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Level 11,Vegetable Building, Industrial Park of the East City,
Shouguang City, Shandong, China		262700
(Address of principal executive offices)		(Zip Code)

Title of each class		Trading Symbol (s)		Name of each exchange on which registered
Common Stock, $0.0005 par value		GURE		NASDAQ Stock Market LLC

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒
		Emerging Growth Company ☐

Part I – Financial Information		1
	Item 1. Financial Statements	1
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
	Item 3. Quantitative and Qualitative Disclosures about Market Risk	44
	Item 4. Controls and Procedures	44
Part II – Other Information		45
	Item 1. Legal Proceedings	45
	Item 1A. Risk Factors	46
	Item 2. Unregistered Sale of Equity Securities and Use of Proceeds	56
	Item 3. Defaults Upon Senior Securities	56
	Item 4. Mine Safety Disclosures	56
	Item 5. Other Information	56
	Item 6. Exhibits	56
Signatures		57

	June 30, 2026 (Unaudited)			December 31, 2025 (Audited)
Current Assets
Cash	$	9,189,231		$	3,793
Accounts receivable, net		15,475,127			3,269,420
Inventories, net		814,921			562,817
Prepayments and deposits		2,973,454			3,940,045
Amounts due from related parties		13,214			22,763
Other receivables		2,494,628			16,771,928
Total current assets		30,960,575			24,570,766
Non-Current Assets
Property, plant and equipment, net		58,870,828			61,944,100
Finance lease right-of-use assets		40,959,992			41,140,331
Operating lease right-of-use assets		5,570,840			5,669,794
Prepaid land leases, net of current portion		413,000			406,819
Deferred tax assets, net		—			—
Total non-current assets		105,814,660			109,161,044
Total Assets		136,775,235			133,731,810

Liabilities and Stockholders’ Equity
Current Liabilities
Short-term bank borrowing	$	5,355,963		$	2,845,400
Accounts payable and accrued expenses		2,916,775			1,882,367
Accrued liabilities		515,666			499,688
Taxes payable-current		615,581			365,499
Amount due to related parties		1,910,732			1,896,831
Finance lease liabilities, current portion		211,682			228,918
Operating lease liabilities, current portion		162,222			523,847
Total current liabilities		11,688,621			8,242,550
Non-Current Liabilities
Finance lease liabilities, net of current portion		5,215,572			5,175,628
Operating lease liabilities, net of current portion		6,463,485			6,491,100
Long-term bank borrowing		—			2,344,610
Total non-current liabilities		11,679,057			14,011,338
Total Liabilities		23,367,678			22,253,888

Stockholders’ Equity
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding		—			—
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized;1,842,114 and 1,568,114 shares issued; and 1,813,531 and 1,539,531 shares outstanding as of June 30, 2026 and December 31, 2025, respectively		921			784
Treasury stock; 28,583 shares as of June 30, 2026 and December 31, 2025 at cost		(1,372,673	)		(1,372,673	)
Additional paid-in capital		106,962,885			105,927,142
Retained earnings unappropriated		(10,309,535	)		(7,526,347	)
Retained earnings appropriated		26,667,097			26,667,097
Accumulated other comprehensive loss		(8,541,138	)		(12,218,081	)
Total Stockholders’ Equity		113,407,557			111,477,922
Total Liabilities and Stockholders’ Equity	$	136,775,235		$	133,731,810

	2026			2025 (Restated)			2026			2025 (Restated)
	Three-Month Period Ended June 30,						Six-Month Period Ended June 30,
	2026			2025 (Restated)			2026			2025 (Restated)

NET REVENUE	$	12,886,977		$	8,343,785		$	15,255,603		$	9,948,232

OPERATING COSTS AND EXPENSE
Cost of revenues		(10,565,684	)		(7,366,702	)		(12,919,096	)		(8,964,166	)
Sales and marketing expenses		(18,174	)		(14,802	)		(23,622	)		(19,855	)
Direct labor and factory overheads incurred during plant shutdown		(452,949	)		(727,774	)		(3,196,211	)		(3,953,582	)
General and administrative expenses		(598,003	)		(1,025,780	)		(1,921,104	)		(2,452,789	)
TOTAL OPERATING COSTS AND EXPENSE		(11,634,810	)		(9,135,058	)		(18,060,033	)		(15,390,392	)

PROFIT (LOSS) FROM OPERATIONS		1,252,167			(791,273	)		(2,804,430	)		(5,442,160	)

OTHER INCOME (EXPENSE)
Interest expense		(124,673	)		(21,674	)		(248,117	)		(43,396	)
Interest income		18,816			1,795			272,476			4,224
Other expenses, net		(3,117	)		(3,212	)		(3,117	)		(3,212	)
TOTAL OTHER INCOME, NET		(108,974	)		(23,091	)		21,242			(42,384	)

INCOME (LOSS) BEFORE INCOME TAXES		1,143,193			(814,364	)		(2,783,188	)		(5,484,544	)

INCOME TAX EXPENSE		—			—			—			—
NET INCOME (LOSS)	$	1,143,193		$	(814,364	)	$	(2,783,188	)	$	(5,484,544	)

COMPREHENSIVE INCOME (LOSS)
NET INCOME (LOSS)	$	1,143,193		$	(814,364	)	$	(2,783,188	)	$	(5,484,544	)
OTHER COMPREHENSIVE INCOME
- Foreign currency translation adjustments		1,796,405			388,050			3,676,943			636,971
TOTAL COMPREHENSIVE INCOME (LOSS)	$	2,939,598		$	(426,314	)	$	893,755		$	(4,847,573	)

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE(1)	$	0.64		$	(0.60	)	$	(1.65	)	$	(4.32	)

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES(1)		1,796,828			1,353,531			1,690,470			1,270,931

	Number of shares issued		Number of shares outstanding		Number of treasury stock		Amount		Treasury stock				Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		other comprehensive Income(loss)			Total
	Common stock																			Accumulated
	Number of shares issued		Number of shares outstanding		Number of treasury stock		Amount		Treasury stock				Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		other comprehensive Income(loss)			Total

BALANCE AT MARCH 31, 2026 (Unaudited)		1,712,114		1,683,531		28,583	$	856	$	(1,372,673	)	-	$	106,441,150	$	(11,452,728	)	$	26,667,097	$	(10,337,543	)	$	109,946,159
Currency translation adjustment		—		—		—		—		—				—		—			—		1,796,405			1,796,405
Issuance of private placement units		130,000		130,000		—		65		—				521,735		—			—		—			521,800
Net income for three- month period ended June 30, 2026		—		—		—		—		—		-		—		1,143,193			—		—			1,143,193
BALANCE AT JUNE 30, 2026 (Unaudited)		1,842,114		1,813,531		28,583	$	921	$	(1,372,673	)	-	$	106,962,885	$	(10,309,535	)	$	26,667,097	$	(8,541,138	)	$	113,407,557

	Number of shares issued(1)		Number of shares outstanding(1)		Number of treasury stock (1)		Amount(1)		Treasury stock				Additional paid-in capital(1)		Retained earnings unappropriated			Retained earnings appropriated		other comprehensive Income(loss)			Total
	Common stock																			Accumulated
	Number of shares issued(1)		Number of shares outstanding(1)		Number of treasury stock (1)		Amount(1)		Treasury stock				Additional paid-in capital(1)		Retained earnings unappropriated			Retained earnings appropriated		other comprehensive Income(loss)			Total

BALANCE AT MARCH 31, 2025 (Unaudited)(Restated)		1,382,114		1,353,531		28,583	$	691	$	(1,372,673	)	-	$	105,192,535	$	31,723,704		$	26,667,097	$	(20,534,397	)	$	141,676,957
Currency translation adjustment		—		—		—		—		—				—		—			—		388,050			388,050
Net loss for three- month period ended June 30, 2025		—		—		—		—		—		-		—		(814,364	)		—		—			(814,364	)
BALANCE AT JUNE 30, 2025 (Unaudited)(Restated)		1,382,114		1,353,531		28,583	$	691	$	(1,372,673	)	-	$	105,192,535	$	30,909,340		$	26,667,097	$	(20,146,347	)	$	141,250,643

	Number of shares issued		Number of shares outstanding		Number of treasury stock		Amount		Treasury stock				Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		other comprehensive Income(loss)			Total
	Common stock																			Accumulated
	Number of shares issued		Number of shares outstanding		Number of treasury stock		Amount		Treasury stock				Additional paid-in capital		Retained earnings unappropriated			Retained earnings appropriated		other comprehensive Income(loss)			Total

BALANCE AT DECEMBER 31, 2025 (Audited)		1,568,114		1,539,531		28,583	$	784	$	(1,372,673	)	-	$	105,927,142	$	(7,526,347	)	$	26,667,097	$	(12,218,081	)	$	111,477,922
Currency translation adjustment		—		—		—		—		—				—		—			—		3,676,943			3,676,943
Issuance of Private Placement Units		274,000		274,000		—		137		—				1,035,743		—			—		—			1,035,880
Net loss for six- month period ended June 30, 2026		—		—		—		—		—		-		—		(2,783,188	)		—		—			(2,783,188	)
BALANCE AT JUNE 30, 2026 (Unaudited)		1,842,114		1,813,531		28,583	$	921	$	(1,372,673	)	-	$	106,962,885	$	(10,309,535	)	$	26,667,097	$	(8,541,138	)	$	113,407,557

	2026			2025(Restated)
	Six-Month Period Ended June 30,
	2026			2025(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(2,783,188	)	$	(5,484,544	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization on capital lease		123,980			121,954
Depreciation and amortization		6,795,623			6,450,581
Amortization of operating lease right-of-use assets		447,905			435,102
Amortization of finance lease right-of-use assets		1,478,008			1,549,239
Stock-based compensation expense		—			196,100
Bad debt expense		60,086			—
Changes in assets and liabilities:
Accounts receivable		(12,017,123	)		(2,574,907	)
Inventories		(231,319	)		(197,631	)
Prepayments and deposits		1,079,563			(2,331,871	)
Other receivables		(720	)		(11,447	)
Accounts and other payable and accrued expenses		1,347,036			268,175
Taxes payable		235,556			182,919
Lease liabilities		(777,234	)		(743,404	)
Net cash used in operating activities		(4,241,827	)		(2,139,734	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(1,699,835	)		—
Repayments for loans to third parties		14,438,834			—
Interest-free loan repaid by related parties		10,155			—
Net cash provided by investing activities		12,749,154			—

CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of finance leases obligation		(272,297	)		(260,997	)
Proceeds from sale of private placement units		556,191			—
Net cash provided by (used in) financing activities		283,894			(260,997	)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		394,217			61,650
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		9,185,438			(2,339,081	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		3,793			10,075,162
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	9,189,231		$	7,736,081

	Six-Month Periods Ended June 30,
	2026		2025 (Restated)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the six-month period ended June 30, for:
Paid for taxes	$	998,245	$	811,828
Interest paid	$	200,730	$	121,954
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

	Useful life (in years)
Mineral rights		50
Leasehold improvements		8 - 20
Plant and machinery (including protective shells, transmission channels and ducts)		3 - 8
Motor vehicles		5
Furniture, fixtures and equipment		3 - 8

	June 30,			December 31,
	2026			2025
Accounts receivable	$	15,552,892		$	3,285,850
Allowance for doubtful debt		(77,765	)		(16,430	)
Accounts receivable, net	$	15,475,127		$	3,269,420

	(1)	During the year ended December 31, 2025, the Company entered into five borrowing arrangements with a third party for an aggregate principal amount of $14,160,101, bearing interest at 9% per annum. Certain borrowings were guaranteed by individuals or entities or secured by certain assets. As of June 30, 2026, all of the above borrowings, including the related accrued interest, had been fully repaid.

	(2)	The amount represents the receivable from the sale of SYCI, which is due in December 2026 from Shandong Rongyuan Pharmaceutical Co., Ltd.

	June 30, 2026			December 31, 2025
At cost:
Mineral rights	$	2,831,561		$	2,743,826
Leasehold Improvements		14,284,153			13,053,292
Plant and machinery		129,848,075			125,170,996
Furniture, fixtures and office equipment		859,683			833,046
Motor vehicles		30,550			29,603
Total		147,854,022			141,830,763
Less: Accumulated depreciation and amortization		(88,686,124	)		(79,598,798	)
Less: Impairment		(297,070	)		(287,865	)
Net book value	$	58,870,828		$	61,944,100

At cost:	December 31, 2025			Remodel of Brine Well(a)			Remodel of Chlorine Gas Shed and finished liquid pond(b)		Remodel of Production Equipment(c)		Depreciation(d)			Foreign currency translation			June 30, 2026
Mineral rights	$	2,743,826			—			—		—		—			87,735		$	2,831,561
Leasehold Improvements		13,053,292			—			548,463		255,324		—			427,074			14,284,153
Plant and machinery		125,170,996			(203,213	)		—		869,843		—			4,010,449			129,848,075
Furniture, fixtures and office equipment		833,046			—			—		—		—			26,637			859,683
Motor vehicles		29,603			—			—		—		—			947			30,550
Total		141,830,763			(203,213	)		548,463		1,125,167		—			4,552,842			147,854,022
Less: Accumulated depreciation and amortization		(79,598,798	)		320,430			4,255		—		(6,788,877	)		(2,623,134	)		(88,686,124	)
Less: Impairment		(287,865	)		—			—		—		—			(9,205	)		(297,070	)
Net book value	$	61,944,100			117,217			552,718		1,125,167		(6,788,877	)		1,920,503		$	58,870,828

Name of related parties		Position
Ming Yang		Shareholder
XiaoBin Liu		Chief Executive Officer
Min Li		Chief Financial Officer
NaiHui Miao		Chief Operating Officer
Chengdu Dianjinshi Culture media Co., LTD		Affiliated with company officers

	June 30, 2026		December 31, 2025
Amount due from related parties:
Chengdu Dianjinshi Culture media Co., LTD	$	13,214	$	22,763
Total	$	13,214	$	22,763

	June 30, 2026		December 31, 2025
Value added tax and other taxes payable	$	615,581	$	365,499
Total	$	615,581	$	365,499

	June 30, 2026			December 31, 2025
Total finance lease liabilities	$	5,427,254		$	5,404,546
Less: Current portion		(211,682	)		(228,918	)
Finance lease liabilities, net of current portion	$	5,215,572		$	5,175,628

	June 30, 2026			December 31, 2025
Total Operating lease liabilities	$	6,625,707		$	7,014,947
Less: Current portion		(162,222	)		(523,847	)
Operating lease liabilities, net of current portion	$	6,463,485		$	6,491,100

	Finance Lease			Operating Lease
the next 12 months	$	275,580		$	352,721
the next 13 to 24 months		275,580			870,202
the next 25 to 36 months		5,222,122			874,823
the next 37 to 48 months		275,580			883,588
the next 49 to 60 months		—			888,585
thereafter		—			7,475,764
Total		6,048,862			11,345,683
Less: Amount representing interest		(621,608	)		(4,719,976	)
Present value of net minimum lease payments	$	5,427,254		$	6,625,707

	June 30, 2026			December 31, 2025
Weighted average remaining lease term:
Finance leases		15.7 years			15.7 years
Operating leases		20.4 years			19.6 years
Weighted average discount rate:
Finance leases		4.43	%		4.53	%
Operating lease		4.90	%		4.90	%

Three-Month Period Ended June 30, 2026 Operating Segment	Bromine*		Crude Salt*			Chemical Products		Natural Gas			Segment Total		Corporate			Total
Net revenue (external customers)	$	12,244,273	$	642,704		$	—	$	—		$	12,886,977	$	—		$	12,886,977
Net revenue (intersegment)		—		—			—		—			—		—			—
Income (loss) from operations before income tax (expense) benefit		1,409,472		(97,230	)		—		(40,116	)		1,272,126		(19,959	)		1,252,167
Income tax benefit (expense)		—		—			—		—			—		—			—
Income (loss) from operations after income tax (expense) benefit		1,409,472		(97,230	)		—		(40,116	)		1,272,126		(19,959	)		1,252,167
Total assets		76,990,211		59,022,313			—		496,478			136,509,002		266,233			136,775,235
Depreciation and amortization		3,371,816		781,799			—		26,587			4,180,202		—			4,180,202
Capital expenditures		1,242,384		—			—		—			1,242,384		—			1,242,384

Three-Month Period Ended June 30, 2025	Bromine*			Crude Salt*			Chemical Products			Natural Gas			Segment Total			Corporate			Total
Net revenue (external customers)	$	7,676,374		$	667,411		$	—		$	—		$	8,343,785		$	—		$	8,343,785
Net revenue (intersegment)		—			—			—			—			—			—			—
Loss from operations before income tax (expense) benefit		(134,041	)		(181,160	)		(348,203	)		(43,255	)		(706,659	)		(84,614	)		(791,273	)
Income tax (expense) benefit		—			—			—			—			—			—			—
Loss from operations after income tax (expense) benefit		(134,041	)		(181,160	)		(348,203	)		(43,255	)		(706,659	)		(84,614	)		(791,273	)
Total assets		78,329,353			45,053,798			38,598,055			890,177			162,871,383			116,959			162,988,342
Depreciation and amortization		3,254,011			637,437			70,763			32,540			3,994,751			—			3,994,751
Capital expenditures		—			—			—			—			—			—			—

Six-Month Period Ended June 30, 2026	Bromine*			Crude Salt*			Chemical Products		Natural Gas			Segment Total			Corporate			Total
Net revenue (external customers)	$	14,494,223		$	761,380		$	—	$	—		$	15,255,603		$	—		$	15,255,603
Net revenue (intersegment)		—			—			—		—			—			—			—
Loss from operations before income tax (expense) benefit		(1,658,306	)		(824,909	)		—		(71,925	)		(2,555,140	)		(249,290	)		(2,804,430	)
Income tax benefit (expense)		—			—			—		—			—			—			—
Loss from operations after income tax (expense) benefit		(1,658,306	)		(824,909	)		—		(71,925	)		(2,555,140	)		(249,290	)		(2,804,430	)
Total assets		76,990,211			59,022,313			—		496,478			136,509,002			266,233			136,775,235
Depreciation and amortization		6,669,288			1,551,592			—		52,751			8,273,631			—			8,273,631
Capital expenditures		1,795,102			—			—		—			1,795,102			—			1,795,102

Six-Month Period Ended June 30, 2025	Bromine*			Crude Salt*			Chemical Products			Natural Gas			Segment Total			Corporate			Total
Net revenue (external customers)	$	9,158,243		$	789,989		$	—		$	—		$	9,948,232		$	—		$	9,948,232
Net revenue (intersegment)		—			—			—			—			—			—			—
Loss from operations before income tax (expense) benefit		(3,508,547	)		(768,969	)		(710,095	)		(88,099	)		(5,075,710	)		(366,450	)		(5,442,160	)
Income tax (expense) benefit		—			—			—			—			—			—			—
Loss from operations after income tax (expense) benefit		(3,508,547	)		(768,969	)		(710,095	)		(88,099	)		(5,075,710	)		(366,450	)		(5,442,160	)
Total assets		78,329,353			45,053,798			38,598,055			890,177			162,871,383			116,959			162,988,342
Depreciation and amortization		6,515,903			1,276,726			141,689			65,502			7,999,820			—			7,999,820
Capital expenditures		—			—			—			—			—			—			—

Reconciliations	2026			2025 (Restated)			2026			2025 (Restated)
	Three-Month Period Ended June 30,						Six-Month Period Ended June 30,
Reconciliations	2026			2025 (Restated)			2026			2025 (Restated)
Total segment operating income (loss)	$	1,272,126		$	(706,659	)	$	(2,555,140	)	$	(5,075,710	)
Corporate costs		(19,959	)		(84,614	)		(249,290	)		(366,450	)
Unrealized gain on translation of intercompany balance		-			-			-			-
Profit (loss) from operations		1,252,167			(791,273	)		(2,804,430	)		(5,442,160	)
Interest expense		(124,673	)		(21,674	)		(248,117	)		(43,396	)
Interest income		18,816			1,795			272,476			4,224
Other expenses, net		(3,117	)		(3,212	)		(3,117	)		(3,212	)
Income (loss) before taxes	$	1,143,193		$	(814,364	)	$	(2,783,188	)	$	(5,484,544	)

						Chemical		Total		Percentage of
		Bromine		Crude Salt		Products		Revenue		Total
Number	Customer	(000’s)		(000’s)		(000’s)		(000’s)		Revenue (%)
1	Shandong Shouguang Shenrunfa Marine Chemical Company Limited	$	2,293	$	—	$	—	$	2,293		17.8	%
2	Shandong Brother Technology Limited		1,652		257		—		1,909		14.8	%
3	Shandong Morui Chemical Company Limited		1,610		253		—		1,863		14.5	%
4	Shouguang Weidong Chemical Company Limited		1,545		132		—		1,677		13.0	%
5	Shandong Xuruixin Materials Company Limited	$	1,520	$	—	$	—	$	1,520		11.8	%

	As Previously Reported			Restatement			Note		As Restated
	June 30, 2025
	As Previously Reported			Restatement			Note		As Restated
NET REVENUE	$	8,343,785			—				$	8,343,785

OPERATING COSTS AND EXPENSE
Cost of revenues		(7,357,130	)		(9,572	)		(a)		(7,366,702	)
Sales and marketing expenses		(14,802	)		—					(14,802	)
Direct labor and factory overheads incurred during plant shutdown		(727,774	)		—					(727,774	)
General and administrative expenses		(994,765	)		(31,015	)		(a)		(1,025,780	)
TOTAL OPERATING COSTS AND EXPENSE		(9,094,471	)		(40,587	)				(9,135,058	)

LOSS FROM OPERATIONS		(750,686	)		(40,587	)				(791,273	)

OTHER INCOME (EXPENSE)
Interest expense		(21,674	)		—					(21,674	)
Interest income		1,795			—					1,795
Other expenses, net		(3,212	)		—					(3,212	)
TOTAL OTHER INCOME, NET		(23,091	)		—					(23,091	)

LOSS BEFORE INCOME TAXES		(773,777	)		(40,587	)				(814,364	)

INCOME TAX EXPENSE		—			—					—
NET LOSS	$	(773,777	)		(40,587	)			$	(814,364	)

COMPREHENSIVE LOSS:
NET LOSS	$	(773,777	)		(40,587	)			$	(814,364	)
OTHER COMPREHENSIVE (LOSS) INCOME
- Foreign currency translation adjustments		403,775			(15,725	)		(b)		388,050
TOTAL COMPREHENSIVE LOSS	$	(370,002	)		(56,312	)			$	(426,314	)

BASIC AND DILUTED LOSS PER SHARE	$	(0.06	)		(0.54	)		(c)	$	(0.60	)

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:		13,346,618			(11,993,087	)		(c)		1,353,531

	Reference	issued			outstanding			stock			Amount			stock			issued		capital		unappropriated			appropriated		Income(loss)			Total
		Common stock																								Accumulated
	Restatement	Number of shares			Number of shares			Number of treasury						Treasury			Share to be		Additional paid-in		Retained earnings			Retained earnings		other comprehensive
	Reference	issued			outstanding			stock			Amount			stock			issued		capital		unappropriated			appropriated		Income(loss)			Total
THREE MONTHS ENDED JUNE 30, 2025 (As Previously Reported)
BALANCE AT MARCH 31, 2025			13,632,448			13,346,618			285,830		$	25,934		$	(1,372,673	)	$	—	$	105,167,292	$	32,729,304		$	26,667,097	$	(20,632,127	)	$	142,584,827
Restricted shares to be issued for service			—			—			—			—			—			—		—		—			—		—			—
Currency translation adjustment			—			—			—			—			—			—		—		—			—		403,775			403,775
Net loss for three months ended June 30, 2025			—			—			—			—			—			—		—		(773,777	)		—		—			(773,777	)
BALANCE AT JUNE 30,2025			13,632,448			13,346,618			285,830		$	25,934		$	(1,372,673	)	$	—	$	105,167,292	$	31,955,527		$	26,667,097	$	(20,228,352	)	$	142,214,825
THREE MONTHS ENDED JUNE 30, 2025(Restatement Impact)
BALANCE AT MARCH 31, 2025	(a)(b)		(12,250,334	)		(11,993,087	)		(257,247	)	$	(25,243	)	$	—		$	—	$	25,243	$	(1,005,600	)	$	—	$	97,730		$	(907,870	)
Restricted shares to be issued for service			—			—						—								—		—			—		—			—
Currency translation adjustment	(c)		—			—			—			—			—			—		—		—			—		(15,725	)		(15,725	)
Net loss for three months ended June 30, 2025	(b)		—			—			—			—			—			—		—		(40,587	)		—		—			(40,587	)
BALANCE AT JUNE 30, 2025	(a)(b)		(12,250,334	)		(11,993,087	)		(257,247	)	$	(25,243	)	$	—		$	—	$	25,243	$	(1,046,187	)	$	—	$	82,005		$	(964,182	)
THREE MONTHS ENDED JUNE 30, 2025 (As Restated)
BALANCE AT MARCH 31, 2025			1,382,114			1,353,531			28,583		$	691		$	(1,372,673	)	$	—	$	105,192,535	$	31,723,704		$	26,667,097	$	(20,534,397	)	$	141,676,957
Restricted shares to be issued for service			—			—			—			—			—			—		—		—			—		—			—
Currency translation adjustment			—			—			—			—			—			—		—		—			—		388,050			388,050
Net loss for three months ended June 30, 2025			—			—			—			—			—			—		—		(814,364	)		—		—			(814,364	)
BALANCE AT JUNE 30,2025			1,382,114			1,353,531			28,583		$	691		$	(1,372,673	)	$	—	$	105,192,535	$	30,909,340		$	26,667,097	$	(20,146,347	)	$	141,250,643

(c)		The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

(d)		The originally classified as restricted shares to be issued for service was reclassified to acquisition of assets, as the shares were issued in connection with the asset acquisition.

	As Previously Reported			Restatement			Note		As Restated
	June 30, 2025
	As Previously Reported			Restatement			Note		As Restated
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(5,403,277	)		(81,267	)		(b)	$	(5,484,544	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization on capital lease		43,396			78,558			(a)		121,954
Depreciation and amortization		7,997,410			(1,546,829	)		(a)		6,450,581
Stock-based compensation expense		196,100			—					196,100
Amortization of operating lease right-of-use assets		435,102			—					435,102
Amortization of finance lease right-of-use assets		—			1,549,239			(a)		1,549,239
Changes in assets and liabilities
Accounts receivable		(2,574,907	)		—					(2,574,907	)
Inventories		(197,631	)		—					(197,631	)
Prepayment and deposits		(2,331,871	)		—					(2,331,871	)
Other receivables		(11,447	)		—					(11,447	)
Accounts and other payable and accrued expenses		268,175			—					268,175
Taxes payable		182,919			—					182,919
Lease liabilities		(743,404	)		—					(743,404	)
Net cash used in operating activities		(2,139,435	)		(299	)				(2,139,734	)

CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities		—			—					—

CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of finance leases obligation		(260,997	)		—					(260,997	)
Net cash provided by (used in) financing activities		(260,997	)		—					(260,997	)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		61,351			299			(c)		61,650
NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,339,081	)		—					(2,339,081	)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR		10,075,162			—					10,075,162
CASH AND CASH EQUIVALENTS - END OF YEAR	$	7,736,081			—				$	7,736,081

	As Previously Reported		Restatement		Note		As Restated
	June 30, 2025
	As Previously Reported		Restatement		Note		As Restated
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for:
Paid for taxes	$	811,828		—			$	811,828
Interest paid	$	43,396		78,558		(a)	$	121,954

	Three-Month Period Ended June 30, 2026			Three-Month Period Ended June 30, 2025 (Restated)			Percent Change Increase/ (Decrease)
Net revenue	$	12,886,977		$	8,343,785			54	%
Cost of revenue	$	(10,565,684	)	$	(7,366,702	)		43	%
Gross profit	$	2,321,293		$	977,083			138	%
Sales and marketing expenses	$	(18,174	)	$	(14,802	)		23	%
Direct labor and factory overheads incurred during plant shutdown	$	(452,949	)	$	(727,774	)		(38	)%
General and administrative expenses	$	(598,003	)	$	(1,025,780	)		(42	)%
Income (loss) from operations	$	1,252,167		$	(791,273	)		(258	)%
Interest income	$	18,816		$	1,795			948	%
Interest expense	$	(124,673	)	$	(21,674	)		475	%
Other expense, net	$	(3,117	)	$	(3,212	)		(3	)%
Income (loss) before income taxes	$	1,143,193		$	(814,364	)		(240	)%
Income tax expense	$	—		$	—			—
Net income (loss)	$	1,143,193		$	(814,364	)		(240	)%