Gulf Resources Announces International Expansion Plan and Strategic Cooperation Agreement with a Brazilian company, Montes Verdes Participacoes Ltda.

Rhea-AI Summary

Gulf Resources (Nasdaq:GURE) announced an international expansion plan centered on a Strategic Cooperation Agreement signed on August 20, 2026 with Brazilian mining company Montes Verdes Participacoes Ltda.. The parties plan to form a joint venture to combine Gulf’s extraction and production technology with Montes Verdes’ bromine, lithium and other mineral resources, along with its agricultural and fertilizer businesses.

According to Gulf Resources, the agreement is intended to broaden overseas profit channels, strengthen global market presence and generate cash flows outside China. Montes Verdes guarantees that 2027 sales revenue consolidated into the Gulf listed-company system will be at least $180 million, and also guarantees annual sales growth of no less than 20% in each of the following five years. If the 2027 target is met and profitability is at or above industry levels, additional Gulf shares may be issued based on the average price-to-earnings ratio for that year.

Positive

• 2027 consolidated revenue guarantee of at least $180 million from Montes Verdes
• Guaranteed minimum 20% annual sales growth for five years after 2027
• Planned joint venture to leverage bromine and lithium resources and Gulf technology
• Strategy to generate cash outside China, potentially increasing capital structure flexibility

Negative

• Agreement allows additional Gulf shares to be issued if 2027 targets and profitability conditions are met, implying potential shareholder dilution

News Explained

Gulf Resources has entered a strategic cooperation agreement with Montes Verdes, but the release describes the joint venture as intended and says further details remain under discussion; any additional Gulf share issuance remains conditional on the 2027 target and profitability requirement.

Market Context

GURE's short positioning was categorized as low in current risk data. That context leaves the partne...

Analysis

GURE's short positioning was categorized as low in current risk data. That context leaves the partnership's revenue guarantees and conditional share issuance to be weighed against execution, reporting, and listing-compliance risks.

Key Figures

2027 sales revenue: $180 million Annual sales growth: 20% Growth period: five years +1 more

4 metrics

2027 sales revenue $180 million Guaranteed minimum consolidated sales revenue for 2027

Annual sales growth 20% Minimum annual growth for each of the following five years

Growth period five years Period covered by the annual sales-growth guarantee

Agreement date August 20, 2026 Date the strategic cooperation agreement was entered into

Historical Context

3 past events · Latest: May 29 (Negative)

Pattern 3 events

Date	Event	Sentiment	24h Move	Catalyst
May 29	late quarterly filing	Negative	-12.5%	Nasdaq delinquency notice followed failure to timely file quarterly and annual reports
Apr 27	late annual filing	Negative	-5.5%	Nasdaq notice followed failure to timely file the 2025 annual report
Apr 16	10-K filing delay	Negative	-5.7%	Accounting adjustments delayed the 2025 annual report filing

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent filing-delay and compliance news was followed by negative price reactions, showing alignment between adverse announcements and declines.

Key Terms

joint venture company, price-to-earnings ratio, capital structure

3 terms

joint venture company financial

"the two companies will establish a joint venture company to integrate their respective"

A joint venture company is a business set up and jointly owned by two or more parties to pursue a specific project or market, where each partner contributes money, assets or expertise and shares control, costs and profits. Think of it like neighbors pooling resources to run a single workshop together. For investors it matters because the venture’s results, obligations and governance can affect parent companies’ finances, risk exposure and future returns.

price-to-earnings ratio financial

"based on the average price-to-earnings ratio for the relevant year"

The price-to-earnings ratio is a stock valuation metric calculated by dividing a company's share price by its earnings per share, showing how much investors are paying for each dollar of reported profit. It matters because it helps investors compare how richly different stocks are priced relative to their profits—similar to judging how many years' worth of earnings a buyer is paying up front—and can indicate relative expensiveness versus peers or history.

capital structure financial

"generate cash outside of China, which will increase the flexibility in our capital structure"

Capital structure is the way a company finances its operations and growth by using different sources of money, such as borrowed funds (loans or bonds) and owner’s equity (investments from owners or shareholders). It’s like a recipe for baking a cake, where the balance of ingredients affects the final product's strength and taste; similarly, the mix of debt and equity influences a company's stability and risk. For investors, understanding a company's capital structure helps gauge how risky it might be to invest or lend money.

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SHOUGUANG, China, Aug. 26, 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 issued a press release, which relates to its international expansion plan and Strategic Cooperation Agreement (“Agreement”) with a Brazilian company, Montes Verdes Participacoes Ltda. (“Montes Verdes”), entered into on August 20, 2026.

Over the past decade, it has become clear to the management of Company that its position as a U.S. listed Chinese company and its focus on the domestic market has been negatively influenced the price of its stock. Now that bromine prices are rising sharply, the Company has decided that international expansion will best serve the interests of its shareholders and team members.

Accordingly, Company announced its plan to enter into a strategic cooperation agreement with a Brazilian company, Montes Verdes Participacoes Ltda.

Montes Verdes is a Brazilian mining company specializing in the exploration of gold, manganese, lithium, bromine and rare-earth minerals, as well as vegetable seed breeding and fertilizer. Montes Verdes has extensive resources. Gulf Resources has technology and experience extracting and producing these resources.

Under the strategic agreement, the two companies will establish a joint venture company to integrate their respective industrial resources, technological strengths, market channels and operating capabilities to build a scalable international business. Through this in-depth strategic cooperation, the parties intend to optimize Gulf’s industrial footprint, broaden overseas profit channels, strengthen Gulf’s core competitiveness, and steadily improve market capitalization and overall profitability.

The bromine and lithium resources in the mining areas held by Monte Verdes will provide a solid foundation and broad scope for in-depth strategic cooperation. The parties intend to expand their international market presence, establish channels for overseas business development and advance their respective global industrial strategies.

In the agreement, Montes Verdes guarantees that if the 2027 sales revenue consolidated into the Gulf listed-company system shall be no less than $180 million. In addition, it guarantees annual sales growth of no less than 20% in each of the following five years. If the 2027 target is achieved and profitability is at or above industry levels, additional shares of Gulf may be issued based on the average price-to-earnings ratio for the relevant year.

Mr. Liu Xiaobin, the Chairman and CEO of Gulf Resources, stated, “We are entering a most exciting time for our company. Bromine prices have improved sharply. With issues in the Middle East, manufacturers throughout the world are seeking alternative sources.”

“We believe our framework agreement with Montes Verdes will be a win-win for both companies, and it lays the foundation for a mutually beneficial strategic partnership. Both parties are still under discussion for further details,” Mr. Liu continued, “We will be able to help Montes Verdes to build a strong business, featuring bromine, crude salt, lithium, and other products. We will be able to generate cash outside of China, which will increase the flexibility in our capital structure. The combination of a strong domestic business and our global outreach should enable us to generate strong sales and earnings and further increase our market acceptance.”

“We have consistently stated that we are committed to enhancing shareholder value and rewarding our long-time shareholders,” Mr. Liu concluded. “We believe this international strategic cooperation agreement is a significant first step in bringing this promise to reality. And we will communicate with our shareholders for any further updates.”

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
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.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu
beishengrong@vip.163.com

FAQ

What did Gulf Resources (Nasdaq:GURE) announce on August 26, 2026 about its international expansion?

Gulf Resources announced an international expansion plan built around a Strategic Cooperation Agreement with Brazilian company Montes Verdes. According to Gulf Resources, the parties plan a joint venture to integrate mineral resources, technology and market channels to expand overseas business and strengthen global industrial strategies.

How much 2027 revenue does Montes Verdes guarantee to Gulf Resources (GURE) under the new agreement?

Montes Verdes guarantees that 2027 sales revenue consolidated into Gulf’s listed-company system will be at least $180 million. According to Gulf Resources, this guaranteed level is part of the strategic cooperation framework and is tied to the planned joint venture’s international operations and resource development.

What sales growth targets are included in Gulf Resources’ (GURE) strategic cooperation with Montes Verdes?

The agreement includes a guarantee of no less than 20% annual sales growth for each of the five years following 2027. According to Gulf Resources, these growth guarantees apply to sales consolidated into the listed-company system, subject to performance and operational execution.

Could the Montes Verdes agreement lead to share issuance for Gulf Resources (GURE) shareholders?

Yes. If the 2027 revenue target is met and profitability is at or above industry levels, additional Gulf shares may be issued. According to Gulf Resources, any such issuance would be based on the average price-to-earnings ratio for the relevant year under the agreement.

How does the Montes Verdes joint venture support Gulf Resources’ bromine and lithium strategy?

The planned joint venture combines bromine and lithium resources from Montes Verdes’ mining areas with Gulf’s extraction and production technology. According to Gulf Resources, this collaboration aims to build a scalable international business and broaden overseas profit channels in bromine, crude salt, lithium and related products.

Why is Gulf Resources (GURE) focusing on international expansion with Montes Verdes now?

Gulf Resources states that being a U.S.-listed Chinese company focused mainly on the domestic market has negatively affected its stock price. According to Gulf Resources, rising bromine prices and global supply needs make international expansion with Montes Verdes a strategic step to enhance profitability and market capitalization.