Gulf Resources Updates Investors on Impact of the World & Chinese Economy on Business Operations
October 20 2021 - 8:50AM
Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the
"Company"), a leading manufacturer of bromine, crude salt and
specialty chemical products in China, today updated investors on
the impact of issues in the world and Chinese economy on its
business operations.
Bromine prices have risen substantially throughout the world and
even more substantially in China. In the world market, shipping
issues have disrupted delivery. As a result, China has been unable
to import its normal share of bromine.
With the shortage in supply and demand, prices of bromine have
soared to the highest levels ever recorded. As illustrated by the
chart below (source:sunsirs.com) bromine is currently priced at RMB
69,500 per tonne, an increase of 41% in the past few weeks and 148%
higher than the end of the 3rd quarter in 2020.
Bromine Prices In China |
|
Period |
Price |
Changes As 2021 10/16 |
|
Q2-2020 |
29,333 |
136.9% |
|
Q3-2020 |
28,017 |
148.1% |
|
Q4-2020 |
32,087 |
116.6% |
|
Q1-2021 |
34,493 |
101.5% |
|
Q2-2021 |
45,950 |
51.3% |
|
Q3-2021 |
49,301 |
41.0% |
|
2021/10/16 |
69,500 |
|
|
|
|
|
|
Since the raw material price increases are lower than the
bromine price increase, we believe this type of pricing should be
good for our Fourth Quarter 2021 profitability.
The Company has no idea how long the current shortages will
last, however, we will keep shareholders informed of any changes we
have seen.
The world and Chinese economies have been impacted by supply
chain issues in many industries including the energy industry.
Shipping shortages have disrupted delivery of many products
throughout the world. China has also been impacted by shortages of
energy. For example, in some regions of China, the government have
restricted electrical usage, including Shouguang City. And some
businesses under construction have been restricted from electrical
usage in Shouguang City.
The supply chain issues as well as the electric restrictions
have delayed the production and delivery of some equipment to the
Company‘s new chemical factory. In addition, the Company’s new
chemical factory has also been restricted from the electrical
usage. This means the installation, timing of testing and beginning
trial production at the chemical factory will be delayed. At this
time, the Company is not in a position to determine the extent of
the delays, but it will keep shareholders advised.
WebsiteAs some investors may have noticed, our
website has been down for the past week. Our company is committed
to improving investor relations. As a result, we are in the process
of introducing a rebuilt website. The transition from the old
website to the new website will require approximately one more
week. We look forward to sharing our new website with
investors.
About Gulf Resources, Inc.Gulf Resources, Inc. operates through
three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical
Company Limited ("SCHC"), ShouguangYuxin 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 http://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 ongoing impact
of COVID-19 pandemic, uncertainties associated with obtaining
governmental approvals, 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 (Haiyan Xu) |
|
beishengrong@vip.163.com |
Gulf Resources (NASDAQ:GURE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Gulf Resources (NASDAQ:GURE)
Historical Stock Chart
From Sep 2023 to Sep 2024