Gulf Resources Announces Its Flood Prevention Plan
November 17 2023 - 8:30AM
Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the
"Company"), a leading manufacturer of bromine, crude salt and
specialty chemical products in China, today announced that it has
recently initiated its preventive measures for safeguarding its
bromine facilities.
In 2018, Shouguang City experienced the devastating impact of
Typhoon Winbiya, regarded as one of the most destructive typhoons
in history, resulting in the region receiving 14.9 inches of
rainfall. The overflow of three major reservoirs along the Mihe
River led to extensive flooding in farmlands, residential zones,
and industrial factories. All of the Company’s bromine factories,
crude salt pans, and mining areas were seriously impacted. The
Company incurred substantial expenses, amounting more than $40
millions of dollars, including write-offs , for road repairs,
equipment replacement, salt pan reconstruction, and the re-drilling
of flooded wells.
A year later, Typhoon Lekima struck Shouguang City, surpassing
the destructive force of its predecessor. Once again, the Company
had to spend more than $6 millions of dollars to rectify the
aftermath, involving road repairs, equipment replacement, salt pan
reconstruction, and the re-drilling of affected wells.
To mitigate similar damages in the future, the Company has
commenced a flood prevention initiative. Our strategy involves the
renovation of the channels of four major rivers within our mining
area, encompassing the tributary of the Mihe River. The aim is to
prevent flooding that could harm the wells, aqueducts and crude
salt pans at our plant.
The projected expenditure for this initiative amounts to
$50,497,652. As of the third quarter, ending on September 30, 2023,
we disbursed $15,149,296 for the initial phase of this project.
Apart from reducing risk to surrounding regions, we anticipate
three notable advantages from this flood prevention plan. It is
expected to:
- enhance the probability of obtaining approval to reopen
factories #2 and #10;
- enable the drilling of additional wells across our five
operating factories, and
- mitigate the risks and associated expenses related to future
storms-induced flooding.
Given our company’s robust financial position and substantial
cash resources, we believe the flood prevention program will yield
favorable returns over the long-term.
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 sell 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 Data
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu (Haiyan Xu)
Gulf Resources (NASDAQ:GURE)
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