SHOUGUANG, China, Nov. 19, 2024 (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 nine and three months ended September 30, 2024.
Three Months ended September 30, 2024:
- Revenues for the third quarter were $2,242,365, a decline of 61.8% compared to the same period of 2023.
- The net loss was $3,492,883, and the basic and diluted loss was $0.33 per share.
- During the third quarter, bromine revenues declined by 68% to $1,571,313 and crude salt revenues declined by 26% to $654,039.
- Bromine operation loss was $4,029,999, while crude salt operation loss was $102,657.
- The losses from operations from our currently inactive chemical and natural gas businesses were $339,038 and $39,072, respectively.
- For the nine months, revenues were $5,932,596, a decline of 74.4% compared to the same period of 2023.
- Losses from operations by segment were as follows: bromine - $13,475,400, crude salt - $47,725, chemicals - $993,116, and natural Gas -$140,554.
- The net loss was $40,582,933, and basic and diluted loss was $3.78 per share.
- We incurred a loss of $29,169,008 from the disposition of equipment and purchased $60,526,213 worth of new equipment.
- Our cash position declined to $11,237,493 from $72,223,894 as of December 31, 2023.
- Total assets at the end of the third quarter was $193,885,294.
We regret that the changes in auditors caused delays in filing the 2023 10-K and 2024 10-Q reports on time. We acknowledge the importance of providing investors with information needed to understand our financial position and the decisions made by the management. Separate press releases will be issued to address several of these matters in the near future.
Mr. Liu Xiaobin, the Chief Executive Officer of Gulf Resources, stated, "We want investors to understand that we remain confident in China's economic recovery, in our company's return to profitability, and in the decisions that we are making to act in the best interests of our shareholders.”
"Over the past year,” Mr. Liu continued, "we have postponed the final delivery of equipment for our chemical factory, because we did not see a short-term path to profitability. We believe some of the chemical companies in our niche in China are currently losing money. By postponing, we wanted to have the opportunity to see which segments of the industry would recover most quickly and what new opportunities, such as those for electrical strong or flow batteries, would emerge. When the timing is right, we will move ahead with the development of our chemical factory.”
"We also decided to hold off on additional investments in our natural gas business,” Mr. Liu continued. "While we remain committed to this project, we are currently seeking the best strategy.”
"We also participated in a flood prevention program required by the government,” Mr. Liu stated, "that we believe will help prevent future flood damages and allow us to drill more wells. Additionally, we are in the process of securing additional land for salt fields and bromine wells from local groups. Based on our analysis, we believe these fields could yield strong returns in the coming years.
"As the Chinese economy has begun to recover and bromine prices have started to improve,” Mr. Liu concluded, "we are becoming increasingly optimistic about the opportunities for the future.”
Conference Call
Gulf Resources management will host a conference call on Wednesday, November 20, 2024 at 08:00 AM Eastern Time to discuss its unaudited financial results of nine and three months ended September 30, 2024.
Mr. Xiaobin Liu, CEO of Gulf Resources, will be hosting the call. The Company management team will be available for investor questions following the prepared remarks.
To participate in this live conference call, please dial Toll Free +1 (888) 506-0062 five to ten minutes prior to the scheduled conference call time. International callers should dial +1 (973) -528-0011, and please reference to "Gulf Resources” or Participant Access Code: 287986 while dial in.
The webcasting is also available then, just simply click on the link below:
http://www.gulfresourcesinc.com/news-28.html
A replay of the conference call will be available two hours after the call's completion and will expire on Wednesday, November 27, 2024. To access the replay, call +1 (877) 481-4010. International callers should call +1 (919) 882-2331. The Replay Passcode is 51690.
| GULF RESOURCES, INC. | ||||||||||
| AND SUBSIDIARIES | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (Expressed in U.S. dollars) | ||||||||||
| September 30, 2024 Unaudited | December 31,
2023 Audited | |||||||||
| Current Assets | ||||||||||
| Cash | $ | 11,237,493 | $ | 72,223,894 | ||||||
| Accounts receivable ,net | 1,186,880 | 4,865,696 | ||||||||
| Inventories, net | 427,839 | 577,229 | ||||||||
| Prepayments and deposits | 8,311,871 | 8,395,290 | ||||||||
| Other receivable | 95,245 | 7,482 | ||||||||
| Total Current Assets | 21,259,328 | 86,069,591 | ||||||||
| Non-Current Assets | ||||||||||
| Property, plant and equipment, net | 150,680,984 | 122,188,023 | ||||||||
| Finance lease right-of use assets | 80,144 | 83,115 | ||||||||
| Operating lease right-of-use assets | 6,385,605 | 6,699,784 | ||||||||
| Prepaid land leases, net of current portion | 9,823,607 | 9,772,170 | ||||||||
| Deferred tax assets ,net | 5,655,626 | 1,859,025 | ||||||||
| Total non-current assets | 172,625,966 | 140,602,117 | ||||||||
| Total Assets | $ | 193,885,294 | $ | 226,671,708 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||
| Current Liabilities | ||||||||||
| Accounts payable and accrued expenses | $ | 15,775,145 | $ | 8,833,936 | ||||||
| Taxes payable-current | 145,642 | 475,630 | ||||||||
| Advance from customer | - | 42,705 | ||||||||
| Amount due to related parties | 2,598,765 | 2,586,658 | ||||||||
| Finance lease liability, current portion | 201,855 | 172,625 | ||||||||
| Operating lease liabilities, current portion | 498,580 | 473,653 | ||||||||
| Total Current Liabilities | 19,219,987 | 12,585,207 | ||||||||
| Non-Current Liabilities | ||||||||||
| Finance lease liability, net of current portion | 1,103,707 | 1,312,950 | ||||||||
| Operating lease liabilities, net of current portion | 7,036,482 | 7,525,255 | ||||||||
| Total Non-Current Liabilities | 8,140,189 | 8,838,205 | ||||||||
| Total Liabilities | $ | 27,360,176 | $ | 21,423,412 | ||||||
| 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; 11,012,754 shares issued; and 10,726,924 shares outstanding as of September 30, 2024 and December 31, 2023, respectively | 24,623 | 24,623 | ||||||||
| Treasury stock; 285,830 shares as of September 30, 2024 and December 31, 2023 at cost | (1,372,673 | ) | (1,372,673 | ) | ||||||
| Additional paid-in capital | 101,688,262 | 101,688,262 | ||||||||
| Retained earnings unappropriated | 55,711,323 | 96,294,256 | ||||||||
| Retained earnings appropriated | 26,667,097 | 26,667,097 | ||||||||
| Accumulated other comprehensive loss | (16,193,514 | ) | (18,053,269 | ) | ||||||
| Total Stockholders' Equity | 166,525,118 | 205,248,296 | ||||||||
| Total Liabilities and Stockholders' Equity | $ | 193,885,294 | $ | 226,671,708 | ||||||
| GULF RESOURCES, INC. | ||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS | ||||||||||||||||||||
| (Expressed in U.S. dollars) | ||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||
| Three-Month Period Ended September 30, | Nine -Month Period Ended September 30, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| NET REVENUE | ||||||||||||||||||||
| Net revenue | $ | 2,242,365 | $ | 5,865,615 | $ | 5,932,596 | $ | 23,173,404 | ||||||||||||
| OPERATING INCOME (EXPENSE) | ||||||||||||||||||||
| Cost of net revenue | (4,071,616 | ) | (6,373,902 | ) | (11,303,519 | ) | (20,464,418 | ) | ||||||||||||
| Sales and marketing expenses | (13,484 | ) | (14,428 | ) | (31,608 | ) | (42,850 | ) | ||||||||||||
| Direct labor and factory overheads incurred during plant shutdown | (1,736,345 | ) | (1,007,689 | ) | (7,185,537 | ) | (4,471,954 | ) | ||||||||||||
| General and administrative expenses | (1,002,529 | ) | (762,884 | ) | (2,409,957 | ) | (2,266,260 | ) | ||||||||||||
| Other operating income (loss) | - | - | - | 60,134 | ||||||||||||||||
| TOTAL OPERATING COSTS AND EXPENSE | (6,823,974 | ) | (8,158,903 | ) | (20,930,621 | ) | (27,185,348 | ) | ||||||||||||
| PROFIT (LOSS) FROM OPERATIONS | (4,581,609 | ) | (2,293,288 | ) | (14,998,025 | ) | (4,011,944 | ) | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||||
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