SHANDONG PROVINCE, China, March 20,
2012 /PRNewswire-Asia-FirstCall/ -- 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
financial guidance for fiscal year 2012.
Based on the current business outlook, the Company estimates
that bromine prices, a factor with a large impact on the Company's
operating performance, will fluctuate between a range of
RMB23,150 per tonne and RMB30,000 per tonne in fiscal year 2012.
Given anticipated bromine price levels, the Company forecasts
total revenue to range between $114.7
million and $147.3 million, and net income to range between
$16.8 million and $30.5 million in
fiscal year 2012.
The above forecast does not take into account the potential
effect on net income resulting from expenses that may arise from
potential drilling expenditures in 2012 for further testing and
exploration of underground bromine water resources in Daying
County, Sichuan Province.
"Although we expect bromine prices to stay relatively constant
and stable in fiscal year 2012 due to the continued slowdown of the
economy in China, we believe the
strategy of exploring more brine water resources and obtaining
bromine assets through acquisitions will enable us to achieve long
term growth in the future," said Mr. Xiaobin Liu, CEO of Gulf Resources. "We
have sufficient cash flow for our operating activities and will
continue to look for attractive acquisition targets."
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
("SCHC") and Shouguang Yuxin Chemical Industry Co., Limited
("SYCI"). 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 & gas field explorations and as
papermaking chemical agents. 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, 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.
Gulf
Resources, Inc.
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CCG
Investor Relations Inc.
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Helen
Xu
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David
Rudnick, Account Manager
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Email:
beishengrong@vip.163.com
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Phone:
+1-646-626-4172
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Web:
http://www.gulfresourcesinc.com
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Email:
david.rudnick@ccgir.com
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Crocker
Coulson, President
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Phone:
+1-646-213-1915
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Email:
crocker.coulson@ccgir.com
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Web:
http://www.ccgirasia.com
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SOURCE Gulf Resources, Inc.