Gulf Resources, Inc. Announces Second Quarter 2025 Unaudited Financial Results
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."
GULF RESOURCES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Expressed in U.S. dollars)
June 30, 2025(Unaudited)
December 31, 2024(Audited)
Current Assets
Cash
$
7,736,081
$
10,075,162
Accounts receivable, net
3,150,850
564,523
Inventories, net
515,013
315,371
Prepayments and deposits
8,743,324
6,376,656
Amount due from related parties
25,144
25,040
Other receivable
105,564
94,074
Total Current Assets
20,275,976
17,450,826
Non-Current Assets
Property, plant and equipment, net
128,694,551
136,143,177
Finance lease right-of use assets
74,668
76,868
Operating lease right-of-use assets
5,937,515
6,169,855
Prepaid land leases, net of current portion
9,648,863
9,615,269
Deferred tax assets, net
—
—
Total non-current assets
144,355,597
152,005,169
Total Assets
$
164,631,573
$
169,455,995
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable and accrued expenses
$
11,551,878
$
14,323,458
Taxes payable-current
298,037
113,999
Advance from customer
—
—
Amount due to related parties
2,589,489
2,584,808
Finance lease liability, current portion
188,550
217,743
Operating lease liabilities, current portion
162,134
491,850
Total Current Liabilities
14,790,088
17,731,858
Non-Current Liabilities
Finance lease liability, net of current portion
891,801
1,075,865
Operating lease liabilities, net of current portion
6,734,859
6,941,602
Total Non-Current Liabilities
7,626,660
8,017,467
Total Liabilities
$
22,416,748
$
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 June 30, 2025 and December 31, 2024
25,934
24,623
Treasury stock; 285,830 shares as of June 30, 2025 and December 31, 2024 at cost
(1,372,673
)
(1,372,673
)
Additional paid-in capital
