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Gulf Resources, Inc. a leading manufacturer of bromine, crude salt, specialty chemical products, and natural gas in China today announced results for the first quarter ended March 31, 2020 and provided a business update on events occurring after the end of the first quarter 2020.
Because of pollution issues, Chinese New Year, and circumstances related to the COVID-19 pandemic outbreak, the Company’s bromine facilities were closed for most time of the first quarter 2020.
Since the Company’s factories were closed for most time of the first quarter 2020, the Company generated relatively little revenue and sustained operating losses. For the first quarter 2020, ending March 31, 2020, Gulf Resources reported net revenue of $557,670 up from $38,570 in the same quarter of the previous year. The loss from operations was $4,835,429 compared to $6,396,030 in the same quarter of the previous year. The net loss after tax was $3,539,758 compared to $4,904,138 in the same quarter of the previous year. The net loss per share was $0.37 compared to $0.52 in the same quarter of the previous year.
Despite the closure of its facilities for 30 months in the past, the Company’s balance sheet for the first quarter 2020 remains strong. As of March 31, 2020,
Since the end of the first quarter 2020, the Company has made substantial progress in reopening its businesses.
Mr. Liu Xiaobin, the CEO of Gulf Resources, stated, “The past 30 months have been long and very difficult for our company as we had to close all of our facilities for the reasons outlined above. During this difficult time, we were hit by one of the most destructive typhoons in the history of China. When we were getting production back, we were adversely impacted by the coronavirus pandemic. Now, however, we can see real signs of progress.”
“We have four of our bromine facilities in commercial production,” Mr. Liu continued. “We are optimistic about the remaining three bromine factories. We have drilled more new wells and bought all new equipment. Now, we are about to start construction of our new chemical factory, which is being planned to focus more on higher margin pharmaceutical intermediate products, and Petro China has discovered one of the biggest natural gas belts in Chinese history in the same town that our existing natural gas well and two additional registered sites are located.”
“Despite the fact that all of our facilities closed for most time of the past 30 months and the cost of buying all new equipment and drilling more new wells, we are still in a strong financial position with $93.6 million in cash,” Mr. Liu continued. “We have enough capital to build our new chemical factory, reopen our remaining bromine and crude salt facilities, and drill our wells in Sichuan.”
“We look forward to returning to profitability in the near future,” Mr. Liu concluded. “We appreciate the support of our shareholders. Once we start construction on our chemical factory and get a better sense of timing for the approval of our remaining bromine factories, we will provide investors with further updates on our three-year plan for growth and profits. We are very optimistic about our future.”
Gulf Resources management will host a conference call on Thursday, May 21, 2020 at 08:30 AM Eastern Time to discuss its financial results for the First quarter 2020 ended March 31, 2020.
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 +1 (877) 407-8031 five to ten minutes prior to the scheduled conference call time. International callers should dial +1 (201)689-8031, and please reference to “Gulf Resources” while dial in.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited (“SCHC”), Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”), and Daying County Haoyuan Chemical Company Limited (“DCHC”). 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. 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.
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: Gulf Resources, Inc.
|Director of Investor Relations|
|Helen Xu (Haiyan Xu)|