Gulf Resources, Inc. Announces Second Quarter 2025 Unaudited Financial Results
Gulf Resources (NASDAQ:GURE), a Chinese manufacturer of bromine, crude salt, and specialty chemicals, reported significant improvements in Q2 2025. Net revenue surged 250% to $8.34 million, with bromine sales increasing 313% to $7.68 million. The company reduced its net loss to $773,777 ($0.06 per share) from $33.1 million ($3.09 per share) in the previous year.
Bromine pricing showed volatility during Q2, ranging from RMB 37,500 to RMB 23,100 per tonne, but has since recovered to RMB 29,200. The company's operational metrics improved with bromine volume up 152% to 1,972 tonnes and crude salt volume increasing 4% to 25,934 tonnes. The chemicals and natural gas segments remain non-operational while awaiting better market conditions.
Gulf Resources (NASDAQ:GURE), produttore cinese di bromo, sale greggio e prodotti chimici speciali, ha registrato miglioramenti significativi nel secondo trimestre 2025. I ricavi netti sono saliti del 250% a $8.34 milioni, con le vendite di bromo in aumento del 313% a $7.68 milioni. La società ha ridotto la perdita netta a $773,777 ($0.06 per azione) rispetto a $33.1 milioni ($3.09 per azione) dell'anno precedente.
I prezzi del bromo sono stati volatili nel 2° trimestre, oscillando tra RMB 37,500 e RMB 23,100 per tonnellata, ma si sono poi ripresi a RMB 29,200. Gli indicatori operativi sono migliorati: il volume di bromo è aumentato del 152% a 1,972 tonnellate e il volume di sale greggio è cresciuto del 4% a 25,934 tonnellate. I settori chimici e del gas naturale restano non operativi in attesa di condizioni di mercato più favorevoli.
Gulf Resources (NASDAQ:GURE), fabricante chino de bromo, sal cruda y productos químicos especiales, informó mejoras significativas en el segundo trimestre de 2025. Los ingresos netos se dispararon un 250% hasta $8.34 millones, con las ventas de bromo subiendo un 313% hasta $7.68 millones. La compañía redujo su pérdida neta a $773,777 ($0.06 por acción) desde $33.1 millones ($3.09 por acción) del año anterior.
Los precios del bromo mostraron volatilidad durante el 2T, variando entre RMB 37,500 y RMB 23,100 por tonelada, pero luego se recuperaron a RMB 29,200. Mejoraron las métricas operativas: el volumen de bromo aumentó un 152% hasta 1,972 toneladas y el volumen de sal cruda creció un 4% hasta 25,934 toneladas. Los segmentos de químicos y gas natural siguen inactivos a la espera de mejores condiciones de mercado.
Gulf Resources (NASDAQ:GURE), 브롬, 원염(조염) 및 특수화학품을 생산하는 중국 기업이 2025년 2분기에 의미 있는 실적 개선을 보고했습니다. 순매출이 250% 급증해 $8.34백만을 기록했고, 브롬 판매는 313% 증가해 $7.68백만에 달했습니다. 회사는 순손실을 $773,777(주당 $0.06)으로 크게 줄였으며, 전년의 $33.1백만(주당 $3.09)에서 개선되었습니다.
2분기 동안 브롬 가격은 톤당 RMB 37,500에서 RMB 23,100까지 변동성이 있었으나 이후 RMB 29,200으로 회복했습니다. 운영 지표도 개선되어 브롬 판매량은 152% 증가한 1,972톤, 원염 판매량은 4% 증가한 25,934톤을 기록했습니다. 화학 및 천연가스 부문은 보다 나은 시장 여건을 기다리며 현재 가동 중단 상태입니다.
Gulf Resources (NASDAQ:GURE), fabricant chinois de brome, de sel brut et de produits chimiques spécialisés, a annoncé des améliorations significatives au deuxième trimestre 2025. Le chiffre d'affaires net a bondi de 250% pour atteindre $8.34 millions, les ventes de brome ayant augmenté de 313% à $7.68 millions. La société a réduit sa perte nette à $773,777 ($0.06 par action) contre $33.1 millions ($3.09 par action) l'année précédente.
Les prix du brome ont été volatils au 2e trimestre, oscillant entre RMB 37,500 et RMB 23,100 par tonne, mais se sont depuis redressés à RMB 29,200. Les indicateurs opérationnels se sont améliorés : le volume de brome a augmenté de 152% à 1 972 tonnes et le volume de sel brut a progressé de 4% à 25 934 tonnes. Les segments chimie et gaz naturel restent inactifs en attendant de meilleures conditions de marché.
Gulf Resources (NASDAQ:GURE), ein chinesischer Hersteller von Brom, Rohsalz und Spezialchemikalien, meldete im zweiten Quartal 2025 deutliche Verbesserungen. Der Nettoumsatz stieg um 250% auf $8.34 Millionen, wobei der Bromverkauf um 313% auf $7.68 Millionen zunahm. Das Unternehmen reduzierte den Nettoverlust auf $773,777 ($0.06 je Aktie) gegenüber $33.1 Millionen ($3.09 je Aktie) im Vorjahr.
Die Brompreise waren im 2. Quartal volatil und bewegten sich zwischen RMB 37,500 und RMB 23,100 je Tonne, haben sich inzwischen aber auf RMB 29,200 erholt. Die operativen Kennzahlen verbesserten sich: der Bromvolumen stieg um 152% auf 1.972 Tonnen und das Rohsalzvolumen erhöhte sich um 4% auf 25.934 Tonnen. Die Bereiche Chemikalien und Erdgas bleiben derzeit außer Betrieb, bis sich die Marktbedingungen verbessern.
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Insights
Gulf Resources shows strong revenue growth and reduced losses, with promising bromine price trends despite continued operational challenges.
Gulf Resources' Q2 2025 results demonstrate significant improvement in multiple areas while still facing challenges. The 250% revenue increase to
The reduced net loss of
Segmental performance reveals bromine as the primary growth driver, with sales surging
Despite these improvements, persistent challenges remain. Both chemicals and natural gas segments remain non-operational, and the company is still reporting overall losses. The balance sheet shows a concerning trend with cash decreasing from
The extreme volatility in bromine pricing during Q2 is particularly noteworthy, fluctuating between RMB 23,100-37,500 per tonne. Current prices have stabilized at RMB 29,200, potentially supporting improved performance in Q3. Management's decision to postpone chemical factory construction and natural gas operations suggests a prudent focus on cash conservation while awaiting more favorable market conditions.
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 t o$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
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 SUBSIDIARIES CONDENSED 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; | $ | — | $ | — | ||||
| COMMON STOCK; | 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 SUBSIDIARIES CONDENSED 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 SUBSIDIARIES CONDENSED 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 SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (Expressed in U.S. dollars) | ||||||||
| Years Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| SUPPLEMENTAL 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 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.
beishengrong@vip.163.com
