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

1. GURE's net revenue surged 250% to $8.34 million year-over-year. 2. Bromine sales experienced a 313% increase, indicating strong demand recovery. 3. Net loss reduced significantly from $33 million to $773,777 in Q2 2025. 4. Company anticipates sustainable bromine price recovery and increased production capacity. 5. Management aims to focus on profitability from bromine and crude salt segments.

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Why Bullish?

The significant rise in revenue and decrease in losses indicates improved operational strength. Historically, such turnarounds lead to stock price appreciation in manufacturing sectors.

How important is it?

The article highlights significant financial recovery, which is a key driver for investor sentiment and stock valuation.

Why Short Term?

The company's positive momentum in performance metrics suggests immediate interest from investors looking for recovery plays.

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BROMNCHEMNATG
August 13, 2025 16:45 ET  | Source: Gulf Resources, Inc. 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  105,167,292   101,688,262 Share to be issued  —   194,700 Retained earnings unappropriated  31,955,527   37,358,804 Retained earnings appropriated  26,667,097   26,667,097 Accumulated other comprehensive income  (20,228,352)  (20,854,143)Total Stockholders’ Equity  142,214,825   143,706,670 Total Liabilities and Stockholders’ Equity $164,631,573  $169,455,995           GULF RESOURCES, INC.AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS(Expressed in U.S. dollars)(UNAUDITED)                      Three-Month Period Ended June 30, Six-Month Period Ended June 30,  2025 2024 2025 2024         NET REVENUE $8,343,785  $2,383,169  $9,948,232  $3,690,231                  OPERATING COSTS AND EXPENSE                Cost of net revenue  (7,357,130)  (5,112,058)  (8,951,400)  (7,231,903)Sales and marketing expenses  (14,802)  (13,633)  (19,855)  (18,124)Direct labor and factory overheads incurred during plant shutdown  (727,774)  (1,714,503)  (3,953,582)  (5,449,192)General and administrative expenses  (994,765)  (689,972)  (2,384,288)  (1,407,428)                 TOTAL OPERATING COSTS AND EXPENSE  (9,094,471)  (7,530,166)  (15,309,125)  (14,106,647)                 LOSS FROM OPERATIONS  (750,686)  (5,146,997)  (5,360,893)  (10,416,416)                 OTHER INCOME (EXPENSE)                Interest expense  (21,674)  (24,814)  (43,396)  (49,644)Interest income  1,795   34,791   4,224   70,851 Other expense, net  (3,212)  —   (3,212)  (4,003)Loss on disposal of property, plant and equipment  —   (29,169,008)  —   (29,169,008)                 Loss before taxes  (773,777)  (34,306,028)  (5,403,277)  (39,568,220)                 INCOME TAX BENEFIT (EXPENSE)  —   1,208,110   —   2,478,170 NET LOSS $(773,777) $(33,097,918) $(5,403,277) $(37,090,050)                 COMPREHENSIVE LOSS                NET LOSS $(773,777) $(33,097,918) $(5,403,277) $(37,090,050)- Foreign currency translation adjustments  403,775   (849,254)  625,791   (1,243,121)TOTAL COMPREHENSIVE LOSS $(370,002) $(33,947,172) $(4,777,486) $(38,333,171)                 BASIC AND DILUTED LOSS PER SHARE: $(0.06) $(3.09) $(0.43) $(3.46)                 BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:  13,346,618   10,726,924   12,520,613   10,726,924                   GULF RESOURCES, INC.AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Expressed in U.S. dollars)(UNAUDITED)                   Six-Month Period Ended June 30,  2025 2024     CASH FLOWS FROM OPERATING ACTIVITIES        Net Loss $(5,403,277) $(37,090,050)Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        Amortization on capital lease  43,396   49,644 Depreciation and amortization  7,997,410   9,467,311 Deferred tax asset  —   (2,511,394)Stock-based compensation expense  196,100   — Amortization of right-of-use asset  435,102   440,030 Loss on disposal of equipment  —   29,169,008 Changes in assets and liabilities:        Accounts receivable  (2,574,907)  3,108,788 Inventories  (197,631)  160,396 Prepayments and deposits  (2,331,871)  68,895 Advance from customers  —   (27,000)Other receivables  (11,447)  4,854 Accounts and Other payable and accrued expenses  268,175   (2,583,610)Amount due to related Parties  —   — Taxes payable  182,919   (315,782)Lease Liabilities  (743,404)  (753,231)Net cash used in operating activities  (2,139,435)  (812,141)         CASH FLOWS FROM INVESTING ACTIVITIES        Purchase of property, plant and equipment  —   (60,526,213)Net cash provided by (used in) investing activities  —   (60,526,213)         CASH FLOWS FROM FINANCING ACTIVITIES        Repayment of finance lease obligation  (260,997)  (264,094)Net cash used in financing activities  (260,997)  (264,094)         EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS  61,351   (253,907)NET DECREASE IN CASH AND CASH EQUIVALENTS  (2,339,081)  (61,856,355)CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD  10,075,162   72,223,894 CASH AND CASH EQUIVALENTS - END OF PERIOD $7,736,081  $10,367,539  GULF RESOURCES, INC.AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)(Expressed in U.S. dollars)       Years Ended June 30,  2025 2024SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION        Cash paid during the six-month period ended June 30, 2025 for:        Paid for taxes $811,828  $886,928 Interest on finance lease obligation $43,396  $49,644 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 StatementsCertain 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.

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