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GURE

Gulf ResourcesD
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2026-08-28
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Earnings documents stored for GURE.

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Investor releaseQuarter not tagged2026-08-28

Gulf Resources, Inc. Receives NASDAQ Notice to Late Filing of Its Quarterly Report

GlobeNewswire
SHOUGUANG, China, Aug. 28, 2026 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources”, “we”, or the “Company”), a leading manufacturer of bromine and crude salt in China, today announced that it received a notice (the “Notice”) from the Listing Qualifications Staff (the “Staff”) of the Nasdaq Stock Market LLC (“Nasdaq”) on August 24, 2026 regarding the Company’s non-compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) as a result of its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 (the “Q2 2026 Form 10-Q”). The Listing Rule requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (the “SEC”). This Notice has no immediate effect on the listing of the Company’s securities on Nasdaq. The Notice states that the Staff previously granted the Company an exception until August 31, 2026, to file its delinquent Form 10-Q for the period ended March 31, 2026. In addition, the Staff has required the Company to supplement its initial plan to regain compliance with respect to the initial delinquent filing no later than August 28, 2026.. As previously disclosed in the press release distributed by the Company on April 27, 2026, the Company received a delinquency notification letter from Nasdaq on April 23, 2026 due to the Company’s non-compliance with the Listing Rule as a result of its failure to timely file its Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). On May 26, 2026, the Company received a further delinquency notification letter from Nasdaq due to its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (the “Q1 2026 Form 10-Q”). The Company filed its 2025 Form 10-K on August 17, 2026 and is no longer delinquent with respect to that filing. The Company also filed amendments to its Annual Report on Form 10-K for the year ended December 31, 2024 on July 27, 2026 and August 24, 2026, respectively. The Company has continued preparing the Q1 2026 Form 10-Q. As of the date of this press release, the Company remains delinquent in filing the Q1 2026 Form 10-Q and the Q2 2026 Form 10-Q. About Gulf Resources, Inc. Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Daying…Read full document

SHOUGUANG, China, Aug. 28, 2026 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources”, “we”, or the “Company”), a leading manufacturer of bromine and crude salt in China, today announced that it received a notice (the “Notice”) from the Listing Qualifications Staff (the “Staff”) of the Nasdaq Stock Market LLC (“Nasdaq”) on August 24, 2026 regarding the Company’s non-compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) as a result of its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 (the “Q2 2026 Form 10-Q”). The Listing Rule requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (the “SEC”). This Notice has no immediate effect on the listing of the Company’s securities on Nasdaq. The Notice states that the Staff previously granted the Company an exception until August 31, 2026, to file its delinquent Form 10-Q for the period ended March 31, 2026. In addition, the Staff has required the Company to supplement its initial plan to regain compliance with respect to the initial delinquent filing no later than August 28, 2026.. As previously disclosed in the press release distributed by the Company on April 27, 2026, the Company received a delinquency notification letter from Nasdaq on April 23, 2026 due to the Company’s non-compliance with the Listing Rule as a result of its failure to timely file its Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). On May 26, 2026, the Company received a further delinquency notification letter from Nasdaq due to its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (the “Q1 2026 Form 10-Q”). The Company filed its 2025 Form 10-K on August 17, 2026 and is no longer delinquent with respect to that filing. The Company also filed amendments to its Annual Report on Form 10-K for the year ended December 31, 2024 on July 27, 2026 and August 24, 2026, respectively. The Company has continued preparing the Q1 2026 Form 10-Q. As of the date of this press release, the Company remains delinquent in filing the Q1 2026 Form 10-Q and the Q2 2026 Form 10-Q. About Gulf Resources, Inc. Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SHSI, the Company manufactures and sells crude salt. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com. Forward-Looking Statements This press release contains forward-looking statements concerning our expectations, anticipations, intentions, beliefs, or strategies regarding the future. These forward-looking statements are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially from those anticipated. Therefore, you should not place undue reliance on forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding plans with respect to the timing and impact of the Reverse Stock Split; our strategic plans and value; our expectations regarding potential commercial opportunities; and our strategies, positioning and expectations for future events or performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and in our other reports filed with the Securities and Exchange Commission, including under the caption “Risk Factors.” Any forward-looking statement in this release speaks only as of the date of this release. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. CONTACT: CONTACT: Gulf Resources, Inc. Web: http://www.gulfresourcesinc.com Director of Investor Relations Helen Xu [email protected]

Investor releaseQuarter not tagged2026-08-28

Gulf Resources Receives Nasdaq Delinquency Notice Over Late Quarterly Filing

MT Newswires

Gulf Resources (GURE) said late Friday it received a notice from Nasdaq on Aug. 24 regarding its non

Investor releaseQuarter not tagged2026-08-28

Gulf Resources: Q1 Earnings Snapshot

Associated Press

SHANDONG, China (AP) — SHANDONG, China (AP) — Gulf Resources Inc. (GURE) on Friday reported a loss of $3.9 million in its first quarter. The Shandong, China-based company said it had a loss of $2.48 per share. The specialty chemicals company posted revenue of $2.4 million in the period. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GURE at https://www.zacks.com/ap/GURE

Investor releaseQuarter not tagged2026-08-17

Gulf Resources: Q4 Earnings Snapshot

Associated Press

SHANDONG, China (AP) — SHANDONG, China (AP) — Gulf Resources Inc. (GURE) on Monday reported a loss of $2.9 million in its fourth quarter. The Shandong, China-based company said it had a loss of $1.33 per share. Losses, adjusted for non-recurring gains, were $1.51 per share. The specialty chemicals company posted revenue of $6.4 million in the period. For the year, the company reported a loss of $43.9 million, or $32.95 per share. Revenue was reported as $25.4 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GURE at https://www.zacks.com/ap/GURE

Investor releaseQuarter not tagged2026-05-29

Gulf Resources, Inc. Receives NASDAQ Notice to Late Filing of Its Quarterly Report

GlobeNewswire
SHOUGUANG, China, May 29, 2026 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources,” “we,” or the “Company”), a leading manufacturer of bromine and crude salt in China, today announced that it received a delinquency notification letter (the “Notice”) from the Listing Qualification Staff (the “Staff”) of the Nasdaq Stock Market LLC (“Nasdaq”) on May 26, 2026 due to the Company’s non-compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) as a result of the Company’s failure to timely file its quarterly report on Form 10-Q for the period ended March 31, 2026 (the “Form 10-Q”). The Listing Rule requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission. This Notice has no immediate effect on the listing of the Company’s securities on Nasdaq. As previously disclosed in the press release distributed by the Company on April 27, 2026, the Company received a delinquency notification letter on April 23, 2026 due to the Company’s non-compliance with Listing Rule as a result of the Company’s failure to timely file its Annual Report on Form 10-K (the “Form 10-K”) for the period ended December 31, 2025 (the “Initial Delinquent Filing”). As of the date of this press release, the Company remains delinquent in filing its Annual Report on Form 10-K. The Company must submit a plan to regain compliance with respect to these delinquent reports no later than June 22, 2026. If Nasdaq accepts the Company’s plan, then Nasdaq may grant the Company up to 180 calendar days from the due date of the Initial Delinquent Filing, or until October 12, 2026 to regain compliance. If Nasdaq does not accept the Company’s plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel. The Company is working diligently to complete its Form 10-K and Form 10-Q. This announcement is made in compliance with the Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a notification of deficiency. About Gulf Resources, Inc. Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited (“SCHC”), Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). The Company believes that it is one of the largest producers of bromine in China. Elemental B…Read full document

SHOUGUANG, China, May 29, 2026 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources,” “we,” or the “Company”), a leading manufacturer of bromine and crude salt in China, today announced that it received a delinquency notification letter (the “Notice”) from the Listing Qualification Staff (the “Staff”) of the Nasdaq Stock Market LLC (“Nasdaq”) on May 26, 2026 due to the Company’s non-compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) as a result of the Company’s failure to timely file its quarterly report on Form 10-Q for the period ended March 31, 2026 (the “Form 10-Q”). The Listing Rule requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission. This Notice has no immediate effect on the listing of the Company’s securities on Nasdaq. As previously disclosed in the press release distributed by the Company on April 27, 2026, the Company received a delinquency notification letter on April 23, 2026 due to the Company’s non-compliance with Listing Rule as a result of the Company’s failure to timely file its Annual Report on Form 10-K (the “Form 10-K”) for the period ended December 31, 2025 (the “Initial Delinquent Filing”). As of the date of this press release, the Company remains delinquent in filing its Annual Report on Form 10-K. The Company must submit a plan to regain compliance with respect to these delinquent reports no later than June 22, 2026. If Nasdaq accepts the Company’s plan, then Nasdaq may grant the Company up to 180 calendar days from the due date of the Initial Delinquent Filing, or until October 12, 2026 to regain compliance. If Nasdaq does not accept the Company’s plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel. The Company is working diligently to complete its Form 10-K and Form 10-Q. This announcement is made in compliance with the Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a notification of deficiency. About Gulf Resources, Inc. Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited (“SCHC”), Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SHSI, the Company sells crude salt. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com. Forward-Looking Statements This press release contains forward-looking statements concerning our expectations, anticipations, intentions, beliefs, or strategies regarding the future. These forward-looking statements are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially from those anticipated. Therefore, you should not place undue reliance on forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding plans with respect to the timing and impact of the Reverse Stock Split; our strategic plans and value; our expectations regarding potential commercial opportunities; and our strategies, positioning and expectations for future events or performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and in our other reports filed with the Securities and Exchange Commission, including under the caption “Risk Factors.” Any forward-looking statement in this release speaks only as of the date of this release. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. CONTACT: CONTACT: Gulf Resources, Inc. Web: http://www.gulfresourcesinc.com Director of Investor Relations Helen Xu [email protected]

Investor releaseQuarter not tagged2026-05-29

Gulf Resources Gets Nasdaq Notice Over Delayed Filing of Quarterly Report

MT Newswires

Gulf Resources (GURE) received a delinquency notice from Nasdaq for failing to comply with its listi

Investor releaseQuarter not tagged2025-11-20

Gulf Resources: Q3 Earnings Snapshot

Associated Press Finance

SHANDONG, China (AP) — SHANDONG, China (AP) — Gulf Resources Inc. (GURE) on Wednesday reported a loss of $35.7 million in its third quarter. On a per-share basis, the Shandong, China-based company said it had a loss of $26.35. Losses, adjusted for asset impairment costs and non-recurring costs, came to $2.86 per share. The specialty chemicals company posted revenue of $9 million in the period. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GURE at https://www.zacks.com/ap/GURE

Investor releaseQuarter not tagged2025-08-14

Gulf Resources: Q2 Earnings Snapshot

Associated Press Finance

SHANDONG, China (AP) — SHANDONG, China (AP) — Gulf Resources Inc. (GURE) on Wednesday reported a loss of $774,000 in its second quarter. The Shandong, China-based company said it had a loss of 6 cents per share. The specialty chemicals company posted revenue of $8.3 million in the period. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GURE at https://www.zacks.com/ap/GURE

Investor releaseQuarter not tagged2025-08-14

Gulf Resources, Inc. Announces Second Quarter 2025 Unaudited Financial Results

GlobeNewswire
SHOUGUANG, China, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources,” “we,” or the “Company”), a leading manufacturer of bromine, crude salt and specialty chemical products in China today announced its unaudited financial results for the three months ended June 30, 2025. The company reported: Net Revenue increased by 250% to $8,343,785 from $2,383,169 in the previous year. Gross profits increased to $986,655 from a loss of $2,728,889. The loss from operations was $750,686 compared to a loss of $5,146,997. The net loss was $773,777 versus a net loss of $33,097,918 in the previous period. The Loss per share was $0.06 versus a loss of $3.09 in the previous period. Negative cash flow for the 6 months of 2025 was sharply reduced from $61,856,355 to $2,339,081. On a segment basis Bromine Bromine sales increased by 313% to $7,676,374 from $1,859,234. Volume increased by 152% to 1,972 tonnes from 782 tonnes. Cost of net revenue increased by 48% to $7,016,815 from $4,729,059 . Gross profit was $659,559 versus a loss of $2,869,825 in the previous period. Net loss for the quarter was $130,381 versus a net loss of $4,662,586 in the previous year. Crude Salt Crude Salt revenues increased by 27% to $667,411 from $ 523,935. Volume increased by 4% to 25,934 tonnes from 24,852 tonnes. Cost of revenue declined by 11% to $340,315 from $382,999. Gross profit increased by 132% to $327,096 from $ 140,936. Net loss for the quarter was $147,489 versus a profit of $130,024 in the previous year. Chemicals & Natural gas, neither of which was operational, combined lost $388,202 vs. a loss of $413,027 in the previous year. Updates on Current Business During the three months ended June 30, 2025, bromine pricing exhibited significant volatility. On March 31, 2025, the last day of the first quarter of 2025, the price of bromine was RMB 29,000 per tonne. By April 14, bromine had reached a price of RMB 37,500 per tonne. By May 14, the price of bromine had declined to RMB 23,100 per tonne. At the end of the second quarter, bromine was priced at RMB 24,686 per tonne. Since the end of the second quarter, bromine prices have increased consistently to RMB 29,200 per tonne on August 12. The Company anticipates that this price recovery, coupled with increasing overall demand, represents a potentially sustainable market trend. (Source: sunsirs.com) The Company ha…Read full document

SHOUGUANG, China, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources,” “we,” or the “Company”), a leading manufacturer of bromine, crude salt and specialty chemical products in China today announced its unaudited financial results for the three months ended June 30, 2025. The company reported: Net Revenue increased by 250% to $8,343,785 from $2,383,169 in the previous year. Gross profits increased to $986,655 from a loss of $2,728,889. The loss from operations was $750,686 compared to a loss of $5,146,997. The net loss was $773,777 versus a net loss of $33,097,918 in the previous period. The Loss per share was $0.06 versus a loss of $3.09 in the previous period. Negative cash flow for the 6 months of 2025 was sharply reduced from $61,856,355 to $2,339,081. On a segment basis Bromine Bromine sales increased by 313% to $7,676,374 from $1,859,234. Volume increased by 152% to 1,972 tonnes from 782 tonnes. Cost of net revenue increased by 48% to $7,016,815 from $4,729,059 . Gross profit was $659,559 versus a loss of $2,869,825 in the previous period. Net loss for the quarter was $130,381 versus a net loss of $4,662,586 in the previous year. Crude Salt Crude Salt revenues increased by 27% to $667,411 from $ 523,935. Volume increased by 4% to 25,934 tonnes from 24,852 tonnes. Cost of revenue declined by 11% to $340,315 from $382,999. Gross profit increased by 132% to $327,096 from $ 140,936. Net loss for the quarter was $147,489 versus a profit of $130,024 in the previous year. Chemicals & Natural gas, neither of which was operational, combined lost $388,202 vs. a loss of $413,027 in the previous year. Updates on Current Business During the three months ended June 30, 2025, bromine pricing exhibited significant volatility. On March 31, 2025, the last day of the first quarter of 2025, the price of bromine was RMB 29,000 per tonne. By April 14, bromine had reached a price of RMB 37,500 per tonne. By May 14, the price of bromine had declined to RMB 23,100 per tonne. At the end of the second quarter, bromine was priced at RMB 24,686 per tonne. Since the end of the second quarter, bromine prices have increased consistently to RMB 29,200 per tonne on August 12. The Company anticipates that this price recovery, coupled with increasing overall demand, represents a potentially sustainable market trend. (Source: sunsirs.com) The Company has initiated development activities on the crude salt fields acquired in the prior year. These assets are expected to enhance both salt and bromine production capacity and may facilitate the reopening of manufacturing facilities #2 and #10, which remain temporarily closed. The chemicals segment operations remain suspended pending improved market conditions. Given the challenging profitability environment faced by many chemical manufacturers, management has elected to defer completion of the remaining chemical factory construction until market conditions present opportunities for sustainable profitability. Natural gas operations also remain inactive while awaiting completion of provincial planning initiatives in Sichuan Province. Given China's increasing natural gas demand, the Company continues monitoring regulatory developments and evaluating potential joint venture opportunities in this sector. Mr. Liu Xiaobin, the CEO and Chairman of Gulf Resources, stated, “We are becoming more optimistic about our business. We see signs of stabilization in the Chinese economy. Many of our competitors in bromine and crude salt have closed their factories. Demand is increasing as are prices. These conditions auger well for the third quarter and coming quarters. We should start to see benefits from the acquisition of the new salt fields.” “We continue to believe,” Mr. Liu continued, “that we will find opportunities in chemicals and natural gas. However, right now, we are focused on generating profits and free cash flow from our bromine and crude salt segments, and confident that this will occur in the near future.” About Gulf Resources, Inc. Gulf Resources, Inc. operates through four wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited (“SCHC”), Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”), Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents, and materials for human and animal antibiotics. Through SHSI, the Company manufactures and sells crude salt. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com. Forward-Looking Statements Certain statements in this news release contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, the risks associated with the COVID-19 pandemic outbreak, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release. CONTACT: [email protected]

Investor releaseQuarter not tagged2025-05-14

Gulf Resources: Q1 Earnings Snapshot

Associated Press Finance

SHANDONG, China (AP) — SHANDONG, China (AP) — Gulf Resources Inc. (GURE) on Tuesday reported a loss of $4.6 million in its first quarter. The Shandong, China-based company said it had a loss of 40 cents per share. The specialty chemicals company posted revenue of $1.6 million in the period. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GURE at https://www.zacks.com/ap/GURE

Investor releaseQuarter not tagged2025-05-14

Gulf Resources Announces First Quarter 2025 Unaudited Financial Results

GlobeNewswire
SHOUGUANG, China, May 13, 2025 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources", “we,” or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China today announced its unaudited financial results for the three months ended March 31, 2025. Income Statement In the quarter ended March 31, 2025, net revenues increased to $1,604,447 from $1,307,062, an increase of 23%. Cost of Revenue was $1,594,270 versus $2,119,845, a decrease of 25%. Gross profit was $10,177 compared to a gross loss of ($812,783). Sales and Marketing expenses were $5,053, an increase of 13%. Direct labor and factory overheads incurred during plant shutdowns were $3,225,808 compared to $3,734,689, a decrease of 14%. General and administrative expenses were $1,389,523 compared to $717,456, an increase of 94%. The loss from operations was ($4,610,207) compared to a loss of ($5,269,419), an improvement of 13%. The loss before income taxes was ($4,629,500) vs ($5,262,192). In 2024, we received an income tax benefit of $1,270,060. As a result, the loss after taxes were ($4,629,500) vs. ($3,992,132). With foreign currency translation adjustments our loss was ($4,407,484) vs. ($4,385,999). The net loss per share was ($0.40) compared to ($0.37) in the previous year. Shares outstanding were 13,346,618 compared to 10,726,924. All of our facilities were closed to winter closure from December 15, 2024 to February 12, 2025. In the previous year, our factories were closed from December 25, 2023 until February 20, 2024. Cash Flow During the first three months of 2025, depreciation and amortization was $4,003,524 vs. $4,733,475. We incurred a stock base expense of $196,100. Accounts receivable increased by $1,549,443 as virtually all of our sales of bromine occurred in the month of March when bromine prices improved. Accounts payable increased to $401,190. As a result, net cash used in operations was ($1,580,128) versus ($1,330,476) in the previous year. There were no expenditures for property, plant, and equipment in either quarter. Balance Sheet As of March 31, 2025, cash was $8,523,045. Current assets were $17,636,613 and current liabilities were $15,257,857. Total assets were $165,729,939. Total liabilities were $23,145,112. Shareholders' equity was $142,584.827. Book value per share was $10.68. Segment Reporting Bromine Bromine revenues…Read full document

SHOUGUANG, China, May 13, 2025 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources", “we,” or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China today announced its unaudited financial results for the three months ended March 31, 2025. Income Statement In the quarter ended March 31, 2025, net revenues increased to $1,604,447 from $1,307,062, an increase of 23%. Cost of Revenue was $1,594,270 versus $2,119,845, a decrease of 25%. Gross profit was $10,177 compared to a gross loss of ($812,783). Sales and Marketing expenses were $5,053, an increase of 13%. Direct labor and factory overheads incurred during plant shutdowns were $3,225,808 compared to $3,734,689, a decrease of 14%. General and administrative expenses were $1,389,523 compared to $717,456, an increase of 94%. The loss from operations was ($4,610,207) compared to a loss of ($5,269,419), an improvement of 13%. The loss before income taxes was ($4,629,500) vs ($5,262,192). In 2024, we received an income tax benefit of $1,270,060. As a result, the loss after taxes were ($4,629,500) vs. ($3,992,132). With foreign currency translation adjustments our loss was ($4,407,484) vs. ($4,385,999). The net loss per share was ($0.40) compared to ($0.37) in the previous year. Shares outstanding were 13,346,618 compared to 10,726,924. All of our facilities were closed to winter closure from December 15, 2024 to February 12, 2025. In the previous year, our factories were closed from December 25, 2023 until February 20, 2024. Cash Flow During the first three months of 2025, depreciation and amortization was $4,003,524 vs. $4,733,475. We incurred a stock base expense of $196,100. Accounts receivable increased by $1,549,443 as virtually all of our sales of bromine occurred in the month of March when bromine prices improved. Accounts payable increased to $401,190. As a result, net cash used in operations was ($1,580,128) versus ($1,330,476) in the previous year. There were no expenditures for property, plant, and equipment in either quarter. Balance Sheet As of March 31, 2025, cash was $8,523,045. Current assets were $17,636,613 and current liabilities were $15,257,857. Total assets were $165,729,939. Total liabilities were $23,145,112. Shareholders' equity was $142,584.827. Book value per share was $10.68. Segment Reporting Bromine Bromine revenues were $1,481,869 versus $1,146,197. We sold 402 tonnes of bromine in the first quarter compared to 451 in the previous year. Our utilization ratio was 11% compared to 17% in the previous year. The average selling price increased 45% to $3,684 from $2,540. Gross margins were a negative (3.5%) compared to a negative (81%) in the previous year. The extremely low utilization rate meant that overhead had to be allocated over a lower number of tonnes. Including the full allocation for factory overhead incurred during plant shutdowns and G&A expenses, our bromine business had an operating loss of ($3,370,836) versus an operating loss in the previous year of ($4,782,815). During the month of March 2025, according to data from sunsirs.com, bromine prices had a brief recovery, jumping from RMB 21,800 on March 1, 2025 to RMB 37,186 on April 10, 2025. And then subsequently dropped. The company may limit sales of bromine when it believes prices are too low. The company believes bromine prices may stabilize and increase from current levels. Crude Salt Revenues were $122,578 versus $116,671, an increase of 5%. We sold 4,733 tonnes of crude salt in the quarter versus 4,071 tonnes in the previous year. The price of crude salt declined 9.6%. Crude salt had gross profit of $61,436 compared to $69,777 in the previous year. Gross margins in crude salt were 50% compared to 60% in the previous year. Including the full allocation for factory overhead incurred during plant shutdowns and G&A expenses, our crude salt business had an operating loss of ($554,062) versus an operating loss of ($75,092) in the previous year. Chemical Products had no revenues. It’s operating loss was ($358,629) versus ($314,824). The company is continuing to review market opportunities for chemicals, including sodium-ion batteries. However, until the company sees a clear and immediate path to profitability, it will postpone the completion of the chemical factory, Natural Gas had no revenues. Its operating loss was ($44,844) compared to ($27,709). The company is continuing to explore potential opportunities with local governments in Sichuan Province that will enable us to restart our natural gas and bromine projects. Management Commentary Mr. Xiaobin Liu, the Chairman and CEO of Gulf Resources stated, “We have continued to manage through difficult times. We have made large capital expenditures for flood prevention and purchasing additional crude salt fields, so that we will be able to capitalize when demand and pricing in bromine increases. With the weakness in the Chinese RMB, imports of bromine and bromine related products will be more expensive. Many of our competitors have closed their factories, so we believe current supply is significantly lower than it was before the government closed some of the factories for pollution and environmental controls as well as for the pandemic. As the economy stabilizes, we expect our business to improve.” “We continue to explore opportunities in chemicals,” Mr. Liu added. “As with bromine, we believe there are fewer chemical factories in China and imports are more expensive. However, to date, we have not identified specific opportunities that we are confident will provide a short-term path to profitability. We are also exploring joint-venture opportunities with larger companies. Until we have found such an opportunity, we will not reorder the remaining equipment needed for our chemical factory.” “We continue to hold discussions with the local governments in Daying Province,” Mr. Liu continued, “over the development of our natural gas and brine resources in Sichuan Province. The Chinese government permits private companies to explore for natural gas. Our exploration has shown there are significant gas resources in Tianbao town. We will continue to press ahead with our attempts to establish a potential opportunity.” “These have been difficult times.” Mr. Liu stated, “We have had to make major investments in environmental and flood controls. We have also secured a large amount of crude salt fields that may enable us to secure our bromine and crude salt production as markets improve. We greatly appreciate the long-term patience of our shareholders.” GULF RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Expressed in U.S. dollars) (UNAUDITED) Three-Month Period Ended March 31, 2025 2024 NET REVENUE $ 1,604,447 $ 1,307,062 OPERATING COSTS AND EXPENSE Cost of net revenue (1,594,270 ) (2,119,845 ) Sales and marketing expenses (5,053 ) (4,491 ) Direct labor and factory overheads incurred during plant shutdown (3,225,808 ) (3,734,689 ) General and administrative expenses (1,389,523 ) (717,456 ) TOTAL OPERATING COSTS AND EXPENSE (6,214,654 ) (6,576,481 ) LOSS FROM OPERATIONS (4,610,207 ) (5,269,419 ) OTHER INCOME (EXPENSE) Interest expense (21,722 ) (24,830 ) Interest income 2,429 36,060 Other expense — (4,003 ) LOSS BEFORE INCOME TAXES (4,629,500 ) (5,262,192 ) INCOME TAX (EXPENSE) BENEFIT — 1,270,060 NET LOSS $ (4,629,500 ) $ (3,992,132 ) COMPREHENSIVE LOSS: NET LOSS $ (4,629,500 ) $ (3,992,132 ) OTHER COMPREHENSIVE (LOSS) INCOME - Foreign currency translation adjustments 222,016 (393,867 ) TOTAL COMPREHENSIVE (LOSS) INCOME $ (4,407,484 ) $ (4,385,999 ) BASIC AND DILUTED EARNINGS (LOSS) PER SHARE: $ (0.40 ) $ (0.37 ) BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES: 11,685,431 10,726,924 GULF RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in U.S. dollars) March 31, 2025 (Unaudited) December 31, 2024 (Audited) Current Assets Cash $ 8,523,045 $ 10,075,162 Accounts receivable, net 2,114,222 564,523 Inventories, net 455,059 315,371 Prepayments and deposits 6,393,161 6,376,656 Amount due from related parties 25,076 25,040 Other receivable 126,050 94,074 Total Current Assets 17,636,613 17,450,826 Non-Current Assets Property, plant and equipment, net 132,341,321 136,143,177 Finance lease right-of use assets 75,721 76,868 Operating lease right-of-use assets 6,050,429 6,169,855 Prepaid land leases, net of current portion 9,625,855 9,615,269 Deferred tax assets, net — — Total non-current assets 148,093,326 152,005,169 Total Assets $ 165,729,939 $ 169,455,995 Liabilities and Stockholders’ Equity Current Liabilities Accounts payable and accrued expenses $ 11,656,665 $ 14,323,458 Taxes payable-current 276,516 113,999 Advance from customer — — Amount due to related parties 2,586,422 2,584,808 Finance lease liability, current portion 239,771 217,743 Operating lease liabilities, current portion 498,483 491,850 Total Current Liabilities 15,257,857 17,731,858 Non-Current Liabilities Finance lease liability, net of current portion 1,077,412 1,075,865 Operating lease liabilities, net of current portion 6,809,843 6,941,602 Total Non-Current Liabilities 7,887,255 8,017,467 Total Liabilities $ 23,145,112 $ 25,749,325 Commitment and Loss Contingencies $ — $ — 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; 13,632,448 and 11,012,754 shares issued; and 13,346,618 and 10,726,924 shares outstanding as of March 31, 2025 and December 31, 2024 25,934 24,623 Treasury stock; 285,830 shares as of March 31, 2025 and December 31, 2024 at cost (1,372,673 ) (1,372,673 ) Additional paid-in capital 105,167,292 101,688,262 Share to be issued — 194,700 Retained earnings unappropriated 32,729,304 37,358,804 Retained earnings appropriated 26,667,097 26,667,097 Accumulated other comprehensive income (20,632,127 ) (20,854,143 ) Total Stockholders’ Equity 142,584,827 143,706,670 Total Liabilities and Stockholders’ Equity $ 165,729,939 $ 169,455,995 GULF RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. dollars) (UNAUDITED) Three-Month Period Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (4,629,500 ) $ (3,992,132 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Amortization on capital lease 21,722 24,830 Depreciation and amortization 4,003,524 4,733,475 Deferred tax asset — (1,270,060 ) Stock-based compensation expense 196,100 — Amortization of right-of-use asset 217,801 217,345 Changes in assets and liabilities Accounts receivable (1,549,443 ) (402,545 ) Inventories (139,285 ) (57,859 ) Prepayments and deposits (7,340 ) (44,903 ) Advance from customers — (36,222 ) Other receivables (31,987 ) (774 ) Accounts and Other payable and accrued expenses 401,190 (17,847 ) Taxes payable 162,411 (257,766 ) Lease liabilities (225,321 ) (226,018 ) Net cash used in operating activities (1,580,128 ) (1,330,476 ) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment — — Net cash from investing activities — — EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 28,011 (131,622 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1,552,117 ) (1,462,098 ) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 10,075,162 72,223,894 CASH AND CASH EQUIVALENTS - END OF PERIOD $ 8,523,045 $ 70,761,796 Years Ended March 31, 2025 2024 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the three-month period ended March 31, for: Paid for taxes $ 77,386 $ 481,153 Interest on finance lease obligation $ 21,722 $ 24,830 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES About Gulf Resources, Inc. Gulf Resources, Inc. operates through four wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"), Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents, and materials for human and animal antibiotics. Through SHSI, the Company manufactures and sells crude salt. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com. Forward-Looking Statements Certain statements in this news release contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, the risks associated with the COVID-19 pandemic outbreak, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release. CONTACT: CONTACT: Gulf Resources, Inc. Web: http://www.gulfresourcesinc.com Director of Investor Relations Helen Xu [email protected]

TranscriptFY2023 Q32023-11-21

FY2023 Q3 earnings call transcript

Earnings source - 64 paragraphs
Operator

Greetings. Welcome to the Gulf Resources Third Quarter 2023 Earnings Conference. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to your host, Helen Xu. You may begin.

Helen Xu

Thank you, operator. Good morning, ladies and gentlemen, and good evening to all those joining us from China and U.S. And I like to welcome all of you to Gulf Resources third quarter 2023 conference call. I am Helen Xu, IR Director and CEO of the company; Mr. Xiaobin Liu, will also join this call today. I would like to remind you to all our listeners that in this call, certain management statements during the call will contain forward-looking information about Gulf Resources in corporation, and its subsidiary business and products within the meaning of Rule of 175 on the Securities Act of 1933 and the Rule 3b-6 under the Securities Exchange Act of 1934 and are subject to the Safe Harbor created by those rules. Actual results may differ from those discussed today, taking into account a number of risk factors, including but not limited to the general economic and business condition in the PRC, the risk associated with COVID-19 pandemic outbreak; future product development and production capabilities, shipments to end customers, and market acceptance of new and existing products, additional competition from existing and new competitors from the bromine and the other oilfields and power production chemicals, changing technology, the ability to make future bromine assets and the risk other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risk factors detailed with the company's reports filed with the SEC. Gulf Resources assumes no obligation to revise or update any forward-looking statements, to reflect events of circumstances after the date of this call. Accordingly, our company believes expectation reflecting in those forward-looking statements are reasonable and there can be no assurance of such will prove to be correct. In addition, any reference to the company's future performance, represent the management's estimates as of today, the 20th of November 2023. For those of you unable to listen to the entire call at this time. A replay will be available on company's website, the call is also accessible through the website and link is accessible through our website. So please locate our press release issued earlier for the details. Before focusing on the major contents of this conference call, I would like to briefly discuss the proposed change in our chairmanship Mr. Yang founded our company and Mr. Liu joined the company in 2007 and become CEO in 2009. Mr. Liu who has investment in many companies in Sichuan Province, has decided not to stand for reelection as Chairman at the annual meeting on November 30, 2023. The board has nominated Mr. Liu to serve as our next Chairman. We would also like to refer to a recent press release discussing our prevention plan. As we issued earlier that in year 2018, Shouguang city experienced that in last impact of typhoon of India [ph] regarded as one of the most destructive typhoons in history, resulted in the region receiving 14.9 inches of rainfall, and the overflow of three major surveys along the Miho River led to extensive flooding in farmland, residential routes and industrial factories. All of the company's bromine factories, crude salt tanks, and mining areas it was seriously impacted, the company incurred substantial expenses amounting for more than $40 million including the write-offs and the road repairs, equipment replacement, salt pan reconstruction and redrilling of flood wheels. A year later, the Typhoon Lekima struck Shouguang city again, surpassing the destructive force of its predecessor. Once again, the company had to spend more than $6 million to rectify the aftermath involving the road repairs, equipment replacement, salt pan reconstruction and the feeling of offsetting will. So, to mitigate the similar damages in the future, the company had commenced of the provision initiative. Our strategy involves the renovation of the channels of four major rivers within our mining area, in combating the Tributary of Miho River. The aim is to prevent flooding that could have the wells, aqueducts, and crude salt pans at our plant. The projected expenditure for this initiative amounts to approximately $50.5 million. As of this quarter, ended by September 30, 2023, the company disbursed amounted approximately $15.15 million for the initial phase of this project. Apart from reducing risk to surrounding regions, we anticipated that there are three notable advantages from this flood provision plan. It is expected to, firstly, enhance the probability of opportunity approvals to reopen factories number two and number 10. Secondly, enable the drilling of additional wealth across our five operating factories. And number three mitigates the risks and associated expenses related to future stops induced flooding. Given the company's current financial position and its substantial cash resources, the company believes that the floor protection plan will yield favorable returns over the long-term to the company. So now let's turn to the results of the third quarter and the nine months. During the third quarter, the sales declined by 74%. Net income after tax was a loss of approximately $1.8 million compared to approximately $9.0 million. Net loss per share was $0.17 compared to a net profit of $0.86. Shareholders' equity was approximately $260.8 million or $24.99 per share. Total results for the three months ended September 30, 2023, in the third quarter of 2023, revenue only declined by 74% to approximately $5.9 million from approximately $22.9 million. Especially the bromine revenues declined by 75% to approximately $4.9 million from approximately $19.8 million. The decrease in this net revenue was primarily due to the reduction in the volume of tons sold 43% and a 57% decrease in the average selling price of bromine. During the quarter, the average selling price was $3,237 compared $7,474. As of November 16, 2023, based on the sensors.com data, the price of bromine has seen an increase of approximately 7.4% to $3,477. The decrease in selling price of bromine reflects both economic weakness in China and an excess inventory of anticipated. Following the aftermath of COVID, the reduction in tons sold reflects the company's strategic decision not to engage enterprise competition, aiming to safeguard the long-term value of its resources. Additionally, crude salt revenues declined by 70% due to an 18% decline in pricing and a 63% decrease in tonnes produced. As crude salt is a byproduct of bromine, the decreased production of bromine, resulting in a reduction in production of crude salt as well. There were no revenue generated from our chemical products business yet, while our natural gas business obtained approximately $68,000 in revenue through its equipment leasing. Gross profit for the quarter was amounted to a loss of $580,000 compared to a profit of approximately $14.5 million in the previous year. Especially, our bromine business suffered a gross profit loss of approximately $1.1 million compared to a profit of $12.5 million while crude salt achieved a gross profit of $511,500 compared to $1.9 million previously approximately. The company incurred direct labor and factory overhead amounting to approximately $1.0 million during the plant shutdown, compared to approximately $1.9 million previously. General and administrative expenses were approximately $762,900 compared to $584,500 previously. Consequently, our loss from operations was amounted to approximately $2.3 million, compared to a profit of approximately $11.9 million in the period prior year. The net income after tax was a loss of approximately $1.8 million, compared to a profit of approximately $9.0 million, and the net loss per share was $0.17 compared to a net profit of $0.86. Results for the nine months ended September 30th, 2023, revenues over nine months declined by 51%, decrease of approximately $23.2 million from approximately $47.5 million. Specially, bromine revenue also fell by 51% from approximately $20.7 million from approximately $41.9 million. Notably, there was a 9% increase in bromine cost, reflecting the addition of section number eight. However, despite this, the gross profit margin decreased to 7%, down from 57%. Throughout the nine months, the average selling price of bromine was $3,493 per tonne compared to the previous of $7,674 per tonne. Revenues from crude salt also declined by 51% to approximately $2.3 million from approximately $5.5 million. While the production volume declined by 31%, no revenue was generated from chemical business yet. Conversely revenue from natural gas increased by 13 percentage from the equipment levy. The gross profit for nine months totaled approximately $2.7 million, compared to $26.4 million. Especially the bromine business accrued a gross profit for approximately $1.5 million, compared to approximately $27.7 million in the previous period. Our crude salt business achieved a gross profit of approximately $1.0 million compared to approximately $2.6 million. Meanwhile, the Chemical business recorded no gross profit and the natural gas business marked a gross profit of approximately $150,000, compared to approximately $132,600 previously. The company incurred direct labor and factory overhead during the planned shutdown amounted to approximately $4.5 million compared to approximately $6.0 million in the previous period. General and administrative expenses were approximately $2.3 million compared to approximately $3.4 million as previously. As a result, our loss from operations were amounted to approximately $4 million compared to a profit of $17.0 million as previously. Net income was a loss of approximately $3.0 million, compared to a profit of $12.7 million previously. And the net loss per share were $0.29, compared to a profit of $1.22. Cash flow during the nine months ended by September 30, 2023, we generated approximately $9.9 million from operating activities and invested approximately $15.2 million, primarily in our floor protection program. Balance sheet, as of September 30, 2023, our cash balance was approximately $103.8 million based on the shares issued and outstanding ended by September 30, 2003 that translated to $9.95 in cash per share. The net, net cash, which is cash minus or liabilities was $8.21 per share. Working capital was approximately $10.07 per share. Shareholders' equity was $260.7 million approximately or $24.99 per share. So now let me turn the call over to Mr. Liu for his additional commentary. Liu?

Xiaobin Liu

[Foreign Language].

Helen Xu

So here is the remark from Mr. Xiaobin Liu, the company's CEO. First of all, and the company's CEO, Mr. Xiaobin Liu. Welcome all of you to attend the Gulf Resources Third Quarter 2023 Earnings Conference Call. In the third quarter, our results were adversely impacted by the diminished price of bromine, we attribute this drop-in price to two major factors. First, the sluggish state of the construction market in China led to reduced purchase of bromine for fire retardant application. Secondly, the warning impact of COVID pandemic resulted in decreased demand for bromine in medical instruments and sterilization. Despite these challenges, our company remains optimistic about the long-term equilibrium of bromine's demand and supply, we still continued. We anticipate a research in demand of bromine-based products and emerging products such as zinc and bromine batteries and new medical products presents opportunities for sustained demand growth. However, the supply of bromine continues to be constrained. Notably, based on 2022 production data, we estimate probably over 75% of global bromine production is concentrated in regions like Israel, Jordan, and Ukraine, which currently states military conflicts or wars. We adopt a prudent strategy in navigating the market. We have held back seeking approvals to open section number two and number 10 as we await improved pricing. Additionally, we have postponed the procurement of the final equipment of our chemical factory, clear insights into opportunities for innovative bromine products. We have scaled back our sales, anticipating higher returns from future bromine sales. Since the end of the quarter, we have observed a gradual, but consistent uptick in the market price of bromine. We are monitoring the events in the Middle East, recognizing that any disruption in the better sea region could certainly unload the market dynamics. Looking ahead, the ambition returning to profitability in the fourth, coming quarter. Moreover, we aim to progress with the opening of our chemical factory, obtaining approvals for our remaining two bromine factories, and ideally resuming our natural gas and broad exploration in Sichuan Province. So now we are open for the question-and-answer section.

Operator

Thank you. [Operator Instructions]. The first question comes from Alan Perkaca [ph], she is a private investor. Alan, please proceed.

Unidentified Analyst

Good morning, Helen. Good morning, management. I given what happened in Q3, I have couple of quick two or three questions. My first question is, could you explain why there was a delay in the 10-Q filing in Q3?

Helen Xu

[Foreign Language]. Okay. Hi, Alan. This quarter's delay in filing was because that auditors, they need more documents or materials when they are doing their review.

Unidentified Analyst

But yes, that's, okay. It is not a fully audited quarter. It's not like a 10-K. So, I am curious to know, what we are concerned about in the quarterly filing. But, okay. So, the auditors are the reason why you have some delay. My second question, if you don't mind. My second question is regarding this flood prevention investments. And as just as I have already mentioned in the past that definitely we wanted the company to consider some action to mitigate the risk of flooding and I think that's great. We are happy about that. The only thing that surprised us is that, we learned that last minute, so I don't know when the decision was taken, but to learn last minute that we have a $50 million investment and that's already $15 million against paying Q3. That was kind of a surprise to shareholders. So, when was the decision taken to make this $15 million underlying investment?

Helen Xu

[Foreign Language]. It was during the September in Q3.

Unidentified Analyst

And you were able to spend $15 million in September?

Helen Xu

No. I mean the decision you mean the final decision when was…

Unidentified Analyst

The decision to plan I mean to spend $15 million, when was the decision made towards? I just find it that shareholders find it interesting that we just learned about it and suddenly we are told $15 million has already been spent. So, we would have liked to have a little more of a warning, when you have made the decision to do this investment? The big question is how much do you expect to spend in Q4 of the $15 million?

Helen Xu

[Foreign Language]. Maybe in Q4, rest of the projects will be spent next $35 million approximately.

Unidentified Analyst

$35 million in Q4.

Helen Xu

Approximately.

Unidentified Analyst

The last point is regarding the bromine pricing and market. You have restricted production in Q3 because the price went pretty low. It was at a very low price at the beginning of Q3. Are you still restricting production in Q4? Or do you expect to go to full production in Q4? Whatever is full production, because it's winter, so I know it's not as high as in the summer.

Helen Xu

[Foreign Language]. Okay. So, hi, and here's the response from you. Firstly, because we think the bromine price is in its recovery stage, and we think it's under its current stage and we should not launch passion of our production alone. So, we estimate the production volume maybe will be similar as last year Q4, quarter-four focus. Secondly, we think because the Dead Sea region, the situation could alert market dynamics and the pricing of bromine as well. So, we are monitoring the events in the Middle East.

Unidentified Analyst

Yes. And regarding that, I mean, I've seen that the price of bromine outside that's coming from the legalities are coming from the U.S. is higher than the price of bromine in China. Is the export team looking at the possibility of exporting some bromine to Asia, like to India or to Singapore? Has the export task force looked at that?

Helen Xu

[Foreign Language]. Hi, Allen. Firstly, because you know, the downstream of bromine industry are majorly in China area, but not in Asia. So, the main demand are here. And secondly, because bromine is very dangerous to transport, and the transportation cost is very high. So, based on these two factors we think if we wanted to translate, like you said, Asia and other countries and also Singapore, maybe we have to evaluate and monitor the market condition and to evaluate the cost and the benefit.

Unidentified Analyst

I think if the export platforms could look at that, that would be a great thing. Okay. Sorry for all these questions have been so long. Okay. But thank you very much for your answers.

Operator

The next question comes from John Smith with Gulf Resources. Please proceed.

Unidentified Analyst

Hello? Can you hear me?

Helen Xu

Yes. Hi, John.

Unidentified Analyst

Hi. My question -- first thing I just want to say, thank you to the Chairman who has been with the company for a long time. He has done a good job building the business and I think the current CEO is in a good spot to take a spot and continue the good management. So, the first off is just thank you. After that my question goes off of Elaine's question on the bromine. Look, thinking that we just spent $50 million in the flood prevention, that's good. But if we could export some of that bromine, I understand the cost would be bad, and I think looking at it from an economic standpoint it might not make sense. But if you could just export $2 million, $3 million, $4 million, $5 million a year, you could use that money to buy back shares. And with shares right now at an all-time low, that would instantly double, triple, quadruple times five the market value. So, I think you guys do a good job running the business. But if you want to bring back shareholder value, I think you need not just look at it from economic standpoint, but from the shareholder standpoint as well. And it is good for you. You guys could pay you guys' self in stock at $8 a share. I mean, this stock would skyrocket, if you guys bought back 2 million shares, which at this price you could do easily. So, thank you.

Helen Xu

[Foreign Language]. Okay. John, thank you very much. We will consider about your suggestion. And by the way, we just want to say, that's because bromine raw material is a very dangerous material during transportation, so there might be some partial requirements from the government policy when we want to export. But anyway, we will do more research on these projects, and see if we can do this.

Unidentified Analyst

Awesome. Yes, I understand it might be more expensive. But again, maybe even if you lose some money, it could really boost the stock price. Thank you.

Helen Xu

Yes.

Unidentified Analyst

I have one more question. Would you, on this hypothetical would the company right now we are valued so low compared to our worth? Would the company think about take like say $15, $20 a share, obviously hypothetical?

Helen Xu

What do you mean $20 or $15 per share?

Unidentified Analyst

Would you consider a buyout at $15 or $20 a share?

Helen Xu

You mean that's for private or sell the company for what out?

Unidentified Analyst

Yes. If someone bought it for $15 to $20 a share, yes.

Helen Xu

[Foreign Language]. No. We don't think about this currently.

Unidentified Analyst

And then I have one more question. The flooding, the big flood that happened so was that I think 2018, that caused the $40 million damage? If that were to happen again under the new flood plan. What would your estimates, would you think, how much cost would that cost the company if a very similar typhoon hit, after your provisions?

Helen Xu

[Foreign Language]. So, if, like, the similar typhoon as year 2018 again, after all this provision project. We think the cost for us to get everything down again it will be very few. Maybe around $3 million to $5 million we can finish all of the retirement.

Unidentified Analyst

That's really good if that's true. So that makes the plan seem a lot better.

Operator

The next question comes from Randy Liggett, Private Investor.

Unidentified Analyst

I'm afraid, I'm not going to be as nice as the first you guys, I mean this conference call sounds like the same one we've heard for last 10 to 15 conference calls. And I mean you just, it doesn't sound like management has taken to heart one idea that investors have brought to them. Okay, the flood prevention plan, that's fine. But we haven't looked at advisors to help the company. Management's fine with the bromide facilities and remediation of the facilities and all that stuff. They cannot and have shown they cannot enhance shareholder value. If anything, look at the price of the stock. I don't understand the stubbornness why we will not higher advisors to help management get through this. And it's just an anomaly to me. I would think you guys would want to get pay. We would like to get paid and for heaven's sake, if somebody offers, as John mentioned, $15 to $20 a share sign on the dotted line. This has been going on for how many years. And this is all fine dandy, but we keep pro. And I mean, we just talk about the same old stuff every conference call. And it's like management does not listen to one thing investors are just throwing out there for ideas. I mean, look at it, look at where the stock closed down. I mean, $1.50 and I haven't even done the math on the reverse split. I'm sure somebody on here probably knows that. But when is management going to wake up and listen to a few things that we are suggesting, go hire an advisor, please. I mean, I don't know what else to say. Also, where do we stand in negotiations with the local government on this gas, natural gas we've been talking about for how many years now? I mean, I can't count the years. I'm going to be dead before all I'm joking when I say that, but I hope not because I mean the value is there and it's like we don't do anything. That's what I'd like to hear about.

Helen Xu

[Foreign Language]. Okay. Hi, Andy. Thanks very much for your comments. And we want to say that, we have been always thinking about our shareholders, and how to reward our shareholders. At the beginning or maybe like last quarter, previous quarters, we were thinking that because we have many production lines, we wanted to have all our production lines to be like a more online or finished, then we can talk to IR firm to see how they can give us idea based on our ideal business model. And in order to help our investors increase our shares, as of now, based on -- comments and based on the current situation, we may sync this in other one. And we will go to talk -- consider going to talk with the algorithm to see based on what we can do now. Hopefully, you can help us to do more promotion and to increase the awareness of the company and the increase our rewards to our shareholders.

Unidentified Company Representative

I mean, that's fine and dandy, but we are not doing anything to do it. I mean, I want to see -- we talk about and talk about and talk about. No, I know. I am going on and on. I am going to get off in a minute. But it is the same thing. I mean, you can call, you have Chinese investment bankers, you have international investment bankers that work all over China. I mean, I just don't get it. We are spending all this money all of a sudden on flood protection. And, we don't want to go out and retain somebody to help us to realize the value in the company. I don't get it. I mean, I really don't. And, I have been around a long time, Helen. And it is...

Helen Xu

Yes. I know you.

Unidentified Analyst

Okay. What about the local government? Go ahead.

Helen Xu

Yes.

Unidentified Analyst

Yes. I mean, and there would be no reason to turn down $15 or $20 tomorrow afternoon. If somebody were to make that, I mean, my word, I think shareholders would jump up and down for joy and so with management. I mean, but where are we with the negotiations with the local government on natural gas, I don't think you answered that unless I missed it.

Helen Xu

[Foreign Language]. Hi. In the Sichuan project, Sichuan province project, the local government, they have some new ideas come out in their mind, and there are some new competitors in the industry also come out. So, we are still doing the active discussion with the local government on this project.

Unidentified Analyst

I mean, have you all even thought about going to China Petro? What's the big company that has the natural gas fund next to where yell in the land? What's the big company? I mean, I don't know why we don't go to them and try to do a joint partnership. I just don't get it. And then I'm going to keep quiet, Helen, and thank you for your help as usual.

Helen Xu

[Foreign Language]. So, because China venture, they do not, they instead of corporations, they just wanted to merge the company. So, we think this is not what we want. So that's why we were looking for the cooperation with local governments. And during the discussion with local governments and there are some new competitors come out and the governments have some new ideas in their minds. So that's why this discussion is still undergoing.

Unidentified Analyst

One other quick question since you brought it up. I mean, what did they want to buy? Did they just want to buy that natural gas field or what were they talking about?

Helen Xu

You mean China Metro?

Unidentified Analyst

Yes, ma'am.

Helen Xu

[Foreign Language]. The discussion on this kind of agreement, no matter with local governments or special channel or other companies. It's very complicated. There are lots of items or criteria under discussed. And until it's finalized and until we can have a final decision or whatever, we cannot talk too much about it.

Unidentified Analyst

I mean, one last comment. Please go hire an advisor this week. There are plenty of them out there that would take L1, spend a little bit of money with them and let them see what they can come up with, please. Thank you, Helen, as usual. Appreciate it.

Operator

The next question comes from Tom [indiscernible] Private Investor. Tom, please proceed.

Unidentified Analyst

Thank you, for taking my question. I have a few questions. I hope you can hear me.

Helen Xu

Yes. I got you, Tom.

Unidentified Analyst

So, the typhoons they hit in 2018 and 2019, and we are in 2023. I want to understand the reasoning for proceeding with this flood prevention program at this stage. So, I want to understand the management thought process on why the decision was made to proceed with this flood prevention program currently. And the second question, I have a series of questions, but just on the flood prevention. I want to understand why the management notified investors only after it had spent already spent a third of the projected expense for it. So, is there a reason for this delay in notifying the shareholders? And I also want to understand why a decision was made to proceed with the flood prevention at this stage?

Helen Xu

[Foreign Language]. So firstly, Tom, because, after the typhoons in 2018 and 2019, we want to, we have to evaluate the surrounding area and our main area to think so how to do this. Then we see, other companies, how they do it, until they finish, then we can learn some knowledge from them and experience from them. And at this stage, we think it's a very appropriate period time stage to do this since we had more knowledge and we learned a lot from others. Second question, because we think this cost was like normal operating expense, we did not think it's very normal. So, rates happened in Q3. And when we just disclosed it in our 10-Q to our investors.

Unidentified Analyst

Thank you. That sounds like a reasonable explanation. I want to get a sense of what the $15 million expense was? And I think from one of the other gentleman's question, I understood that the remaining nearly $35 million was going to be spent in Q4. Is that assumption correct?

Helen Xu

Yes. Probably. Yes.

Unidentified Analyst

Okay. My next set of questions are with regard to previous gentleman asked, if the management would consider a buyout at $15 or $20 a share. And I think, the CEO answered that they would not consider it. And I wanted to get a sense of why they would not even consider it. And the reason is, around 2017, there was around $209 million in the company's books. And as of this release, there is only half of that around $104 million or so. And so, we have gone through a period where there has not been much return for shareholders. It has been -- not much value has been created. Actually, a lot of value has been decimated in the last seven years or so. And so, I just want to get a sense from a shareholder's perspective, why the management would not even consider a buyout at, $15 or $20 per share.

Helen Xu

Hi, Tom. I think because this question we did discussed in previous quarters. Firstly, company will have our bromine business segment, even though now it is now very good, but because bromine price is very low now. But once bromine price increase or come to back to its normal price, our business is very profitable in this bromine segment. Then our natural gas in Sichuan province also have a big potential, because the concentration of the bromine resources there is very low. Third, our Chemical business. Even though now Chemical business are not online yet, but we have very confidence in this segment as well. So already -- and bromine resources are limited resources, like, very few productions in the world. So overall, we think our -- we have quite confidence in our company. So that's why we do not consider to sell it at a $15 or $20 currently.

Operator

We have reached the end of the question-and-answer session. And I will now turn the call back to Helen for any closing remarks.

Helen Xu

Hi, operator. I think, if there is no more question, we can close for the call today because it's time limit, time out. And welcome. If any shareholders have questions, can feel free to e-mail me. And I will be happy to respond to the e-mail as well.

Operator

Thank you. This concludes today's conference. Disconnect your line at this time. Thank you for your participation.

As of 2026-08-29 • Updated weeklySource: Earnings sourceIngestion runbook