Gulf Resources Provides 2013 Fiscal Year Financial Guidance
January 21 2013 - 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 financial
guidance for fiscal year 2013.
Due to the influence of the European debt crisis and the
slowdown in the domestic economy, the Company has not been able to
meet its previously announced earnings forecast set forth in the
Company's 2012 financial guidance. As the market demand driven by
the economy condition continues to fall, the bromine sales price
experienced significant decline over the year, which adversely
affected the Company's operating performance.
"Due to the impact of the decrease in market demand driven by
the worsen economic condition, the average selling price of price
had declined to as low as RMB18,500 per tonne in September, which
was significantly lower than the estimated lower range of RMB23,150
per tonne in the Company's 2012 financial guidance. Despite the
fact that we have implemented a series of cost-saving and control
measures throughout the year to overcome the tough operating
environment, such low bromine price level still resulted in a
decrease of approximately 15% in our performance in fiscal 2012, as
compared to the previously announced earnings forecasts." Mr. Liu,
the CEO of the Company continues, "We expect that in the year 2013,
stimulus plans to be issued as a result of the replacement of the
top officials in China's central government will stimulate the weak
economic environment. We believe the average selling price of
bromide in the year 2013 will further increase and drive our
business performance to grow at least 30% year on year basis."
Based on the current business outlook and the anticipated
bromine price levels, the Company forecasts its total revenue and
net income to record approximately $122.8 million and $18.7
million, respectively, in fiscal year 2013.
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.
The Gulf Resources, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=15631
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, as amended and Rule 3b-6 under the Securities Exchange Act of
1934 as amended, 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 of its disclosure.
CONTACT: IR Manager
Max Ma
Max_vx@163.com
CEO Assistant
Helen Xu
Beishengrong@vip.163.com
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