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 its financial
results for the second quarter ended June 30, 2016.
For the three months ended June
30, 2016:
- Income from operations increased 19%
- Net income increased 22%
- Basic and Diluted Earnings Per Share increased
26%, and 22% respectively.
- Cash of $146,273,240
($3.16 per
share*)
- Net net cash equaled
$131,273,707 ($2.84
per share*)
- Working capital was $202,785,091
($4.38 per share*)
- Shareholders equity totaled $349,919,946
($7.56 per
share*)
For the six months ended June
30, 2016
- Net Revenues decreased 3%
- Gross Profit increased 10%
- Net Income increased 22%
- Basic and Diluted Earnings per share increased 19% and
17% respectively.
Second Quarter Results
- Net Revenues declined 4% to $47.6 million from $49.4
million.
- Cost of Revenue decreased by 10% to $29.2 million from $32.3
million.
- Gross Profit increased 8% to $18.4 million from $17.1
million.
- Selling, marketing, R&D, and General and Administrative
expenses declined 55% to $1.2 million from $2.6 million.
- Income from Operations increased 19% to $17.3 million from
$14.6 million.
- Net Income increased 22% to $13.2 million from 10.8
million.
- Basic and diluted earnings per share increased 26% and 22%
respectively.
For the second quarter, revenues declined by 4% to $47.6 million
compared to the same period in 2015. Cost of revenue declined by
10% to $29.2 million. Gross profit increased 8% to $18.4 million.
Expenses declined 55% to $1.2 million. Net income increased 22% to
$13.2 million. Basic and diluted earnings per share increased to
$0.29 and $0.28 from $0.23, a growth of 26% and 22%
respectively.
The company management stated, “Given the weakness in the
Chinese economy, we are very pleased to have recorded a 19%
increase in income from operations, a 22% increase in net income,
and a 26% increase in primary earnings per share. These results
demonstrate our team’s ability to successfully manage our business
during difficult times."
Segment Results
Bromine Segment
For the three months ended June 30, 2016, Revenue in the bromine
segment increased 22% to $18.5 million from $15.1 million compared
to the same period in 2015. Sales volume decreased 3% to
4,613 tonnes from 4,751 tonnes. The decrease in sales volume was
caused by the general weakness in the Chinese economy. The average
selling price increased 26% to $4,006 per tonne from $3,177 per
tonne. Gross profit increased 67% to $9,153,346 from $5,479,178.
Gross profit margins were 50% compared to $36% in the previous
year. Income from operations increased 82% to $8,199,652 from
$4,505,928. Income from operations after taxes increased 80% to
$6,389,400 from $3,554,032.
The company management stated, “The Company is very pleased by
the results in our bromine segment, especially the strengthening of
pricing in the bromine market. When the economy in China finally
recovers, we should be in an excellent position to significantly
increase both sales and profits in bromine.”
Crude salt segment
For the three months ended June 30, 2016, Revenue in the crude
salt segment declined 21% to $2.3 million compared to the same
period in 2015. Volume declined by 11%. The average selling price
decreased 11%. The declines in volume and pricing in crude salt
reflect the overall weakness in the Chinese economy. Gross
profit margins were 6% compared to 7% for the same period in 2015.
The loss from operations was $10,099 compared to a loss of $4,027
compared to the same period in 2015.
Chemical Segment
For the three months ended June 30, 2016, Revenues in chemical
products decreased 14% to $26.8 million from $31.3 million compared
to the same period in 2015. This decrease was primarily
attributable to the decreased sales volume of all our chemical
products. Net revenue from oil and gas exploration chemicals
decreased 20% to $6,087,314. Net revenue from paper manufacturing
additives decreased 20% to $1,056,309. Net revenue from pesticides
manufacturing additives decreased 20% from $4,300,074 to
$3,422,250. Net revenue from pharmaceutical intermediates decreased
12% to $11,778,466. Net revenue from by-products decreased 4% to
$4,470,135.
While volume declined in all chemical product lines, the average
selling price increased for pesticides manufacturing additives,
pharmaceutical intermediaries, and by-products.
Gross profit margins for were 34% compared to 36% for the same
period in 2015. This 2% decrease was primarily attributable to the
increase in factory overhead per unit produced due to lower volume
of production partially offset by better pricing.
Income from operations decreased 21% to $8.5 million.
The company management stated, “Our chemical business continues
to be impacted by the slowdown in the Chinese economy. Many
of our customers are operating with much lower levels of inventory
because of the impact of economic tightening. We expect this to
stabilize in the very near future.
The government may continue to enact stricter environmental
regulations. We believe this may force some of our smaller and less
well financed competitors to close some of their facilities. If
this occurs, we should benefit.
In addition, we are looking for various strategies for reducing
our cost structure in the chemical segment. We believe these
strategies may be a significant benefit on future earnings.
Six Months Results
Net revenue. Net revenue
for six-month period ended June 30, 2016 decreased 3% to
$82,096,217 from $84,260,899.
The increase in net revenue from our bromine segment was mainly
due to the increase in the selling price of bromine. The selling
price of bromine increased from $3,102 per tonne for the six-month
period ended June 30, 2015 to $3,936 per tonne for the same period
in 2016, an increase of 27%.
The decrease in net revenue from our crude salt segment was due
to the decrease in both the sales volume and selling price of crude
salt. The sales volume of crude salt decreased by 9% from 153,202
tonnes for the six-month period ended June 30, 2015 to 139,577
tonnes for the same period in 2016. The average selling price of
crude salt decreased from $31.81 per tonne for the six-month period
ended June 30, 2015 to $29.18 per tonne for the same period in
2016, a decrease of 8%.
Net revenue from our chemical products segment decreased from
$53,261,716 for the six-month period ended June 30, 2015 to
$46,373,788 for the same period in 2016, a decrease of
approximately 13%. This decrease was primarily attributable to the
decreased sales volume of all our chemical products except by
products.
Cost of Net Revenue.
Cost of net revenue reflects mainly the raw
materials consumed and the direct salaries and benefits of staff
engaged in the production process, electricity, depreciation and
amortization of manufacturing plant and machinery and other
manufacturing costs. Our cost of net revenue was $53,076,901 for
the six-month period ended June 30, 2016, a decrease of $4,684,077
(or 8%) as compared to the same period in 2015. This decrease was
primarily attributable to the decrease volume of products sold due
to the macro-economic tightening policy imposed by the PRC
government, which has affected our customers’ industries.
Gross Profit. Gross profit was $29,019,316, or
35%, of net revenue for six-month period ended June 30, 2016
compared to $26,499,921, or 31%, of net revenue for the same period
in 2015.The increase in gross profit percentage was primarily
attributable to an increase in the margin percentage of
bromine.
Income from Operations. Income from operations
was $25,997,440 for the six-month period ended June 30, 2016 (or
32% of net revenue), an increase of $4,325,400, or approximately
20%, over income from operations for the same period in 2015. This
increase was primarily attributable to the increased bromine price
and the decrease general and administrative expense incurred for
the six-month period ended June 30, 2016 compared with the same
period in 2015.
Net Income. Net income was $19,663,983
for the six-month period ended June 30, 2016, an increase of
$3,573,452 (or approximately 22%) compared to the same period in
2015. This significant increase was primarily attributable to the
increased bromine price and the decrease general and administrative
expense incurred for the six-month period ended June 30, 2016
compared with the same period in 2015.
Earnings Per Share. Basic and
Diluted Earnings per share increased 19% and 17% respectively.
Cash Flow
In the first 6 months of 2016, we generated $17.5 million in
cash flow from operations. We invested 1.5 million in prepaid land
leases and property, plant, equipment, roads and related
infrastructure.
In the first 6 months of 2016, our receivables increased by 43%
to $71,335,678 compared to those as of December 31, 2015, impacting
our cash flow. However, Approximately 49% of the balances of
accounts receivable as of June 30, 2016 aged more than 90 days were
settled in July 2016.
The company management stated, “We continue to generate strong
free cash flow.”
Balance Sheet
We ended the quarter with $146,273,240 in cash. This equates to
$3.16* per share. Net net cash, (cash minus all current
liabilities) was $131,273,707, $2.84* per share.
Working capital was $202,785,091 or $4.38* per share.
As noted, receivables increased 47% to $71,335,678 million.
Given the financial slowdown and the lack of liquidity in the
system, we gave our customers more attractive terms. However, we
are confident in the quality of our receivables and approximately
49% of the balances of accounts receivable as of June 30, 2016 aged
more than 90 days were settled in July 2016.
Shareholders equity totaled $349,919,946 or $7.56* per
share.
The company management stated, “We are extremely proud of our
balance sheet. We have a substantial amount of cash which will
allow us to fully develop our natural gas project, make
acquisitions, and enhance shareholder value.”
Natural Gas Project
During the quarter, we made substantial progress on our natural
gas project. We have signed the agreement to the equipment needed
for drilling and converting the natural gas,, Constructed the roads
and related infrastructure needed to begin operations in the remote
and mountainous region of Daying county and continued to work with
the government of Daying Province.
The company management stated, “We believe we will begin
production on the first well in October or November. Based on the
developments we are seeing with Sinopec and other companies, we are
even more enthused about the opportunities before us in
Sichuan.
We know investors look at our large amount of cash and ask why
we cannot pay a dividend or buy back large amounts of stock. The
answer is very simple. We want to prove to the government of Daying
Province that we are the right partners. We want to keep other
companies, including the large state-owned energy companies out of
this area.
We do not know the full potential of natural gas and brine
resources in Sichuan. However, we do know there are very ample
reserves of natural gas and bromine concentrations seven times as
high as that in Shandong.
If everything works as well as we hope, we could see our company
earning $3.00-$5.00 a share in the next 5 years. If this happened,
we could attract institutional investors and analysts from
investment banks. We may also spin-off our natural gas resources
into a separate company in China or sell out to a major state-owned
energy company.
If everything does not work as well as we hope, we will consider
to use the cash on our balance sheet to enhance shareholder value
through dividends or buy-backs.
We have an expression in Chinese, “tong chuan tong meng.” It
means two people sleeping in the same bed dreaming the same dream.
We want investors to dream the same dream we are dreaming. Our
dream is to spend the next years seeing if we can have a stock that
would sell at $30 a share or more. If our dream does not work, we
will take other actions to make sure the shares of Gulf Resources
become significantly less undervalued.”
(* All per share calculations have not
been audited and have been calculated using the end of the
quarter share count of
46,285,202
as shown on the balance sheet in the 10-Q)
Conference CallThe Company will host a
conference call on Thursday, August 11, 2016 at 08:00 Eastern Time
to discuss its financial results for the Second Quarter 2016 ended
June 30, 2016.
Hosting the call will be Mr. Xiaobin Liu, CEO of Gulf Resources.
The Company's management team will be available for investor
questions following the prepared remarks.
To participate in this live conference call, please dial +1
(877) 275-8968 five to ten minutes prior to the scheduled
conference call time. International callers should dial +1 (706)
643-1666. The conference participant pass code is
62430254.
The webcasting is also available then, just simply click on the
link below:http://www.gulfresourcesinc.com/events.html
A replay of the conference call will be available two hours
after the call's completion during 08/11/2016 11:00 EDT -
09/11/2016 23:59 EDT. To access the replay, call +1 (855) 859-2056.
International callers should call +1 (404) 537-3406. The conference
ID is 62430254.
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"), Shouguang City Rongyuan Chemical
Co, Limited (“SCRC”) 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. SCRC is a
leading manufacturer of materials for human and animal antibiotics
in China and other parts of Asia. 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, 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. |
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
(Expressed in U.S.
dollars) |
(UNAUDITED) |
|
|
|
Three-Month Period Ended June 30, |
|
|
Six-Month Period Ended June 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE |
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
47,600,767 |
|
|
$ |
49,350,070 |
|
|
$ |
82,096,217 |
|
|
$ |
84,260,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
(EXPENSES) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of net revenue |
|
|
(29,195,255 |
) |
|
|
(32,280,120 |
) |
|
|
(53,076,901 |
) |
|
|
(57,760,978 |
) |
Sales, marketing and other
operating expenses |
|
|
(104,369 |
) |
|
|
(120,746 |
) |
|
|
(186,270 |
) |
|
|
(202,176 |
) |
Research and development cost |
|
|
(70,378 |
) |
|
|
(63,470 |
) |
|
|
(130,215 |
) |
|
|
(111,705 |
) |
Exploration cost |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(325,840 |
) |
General and administrative
expenses |
|
|
(1,009,882 |
) |
|
|
(2,434,246 |
) |
|
|
(2,925,912 |
) |
|
|
(4,415,363 |
) |
Other operating income |
|
|
110,239 |
|
|
|
109,901 |
|
|
|
220,521 |
|
|
|
227,203 |
|
|
|
|
(30,269,645 |
) |
|
|
(34,788,681 |
) |
|
|
(56,098,777 |
) |
|
|
(62,588,859 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS |
|
|
17,331,122 |
|
|
|
14,561,389 |
|
|
|
25,997,440 |
|
|
|
21,672,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(46,009 |
) |
|
|
(51,013 |
) |
|
|
(92,138 |
) |
|
|
(101,866 |
) |
Interest income |
|
|
122,328 |
|
|
|
108,182 |
|
|
|
236,774 |
|
|
|
235,143 |
|
INCOME BEFORE
TAXES |
|
|
17,407,441 |
|
|
|
14,618,558 |
|
|
|
26,142,076 |
|
|
|
21,805,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAXES |
|
|
(4,210,422 |
) |
|
|
(3,843,298 |
) |
|
|
(6,478,093 |
) |
|
|
(5,714,786 |
) |
NET INCOME |
|
$ |
13,197,019 |
|
|
$ |
10,775,260 |
|
|
$ |
19,663,983 |
|
|
$ |
16,090,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
$ |
13,197,019 |
|
|
$ |
10,775,260 |
|
|
$ |
19,663,983 |
|
|
$ |
16,090,531 |
|
OTHER COMPREHENSIVE
INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign currency translation
adjustments |
|
|
(9,760,773 |
) |
|
|
1,475,380 |
|
|
|
(7,867,712 |
) |
|
|
365,032 |
|
COMPREHENSIVE
INCOME |
|
$ |
3,436,246 |
|
|
$ |
12,250,640 |
|
|
$ |
11,796,271 |
|
|
$ |
16,455,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC |
|
$ |
0.29 |
|
|
$ |
0.23 |
|
|
$ |
0.43 |
|
|
$ |
0.36 |
|
DILUTED |
|
$ |
0.28 |
|
|
$ |
0.23 |
|
|
$ |
0.42 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER
OF SHARES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC |
|
|
46,008,102 |
|
|
|
45,928,234 |
|
|
|
46,007,611 |
|
|
|
44,313,537 |
|
DILUTED |
|
|
46,631,091 |
|
|
|
47,143,073 |
|
|
|
46,685,709 |
|
|
|
45,319,208 |
|
See accompanying notes to the condensed consolidated financial
statements.
GULF RESOURCES, INC. |
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(Expressed in U.S.
dollars) |
|
|
|
June 30, 2016Unaudited |
|
|
December 31, 2015Audited |
|
Current Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
146,273,240 |
|
|
$ |
133,606,392 |
|
Accounts
receivable |
|
|
71,335,678 |
|
|
|
49,980,358 |
|
Inventories, net |
|
|
6,707,960 |
|
|
|
7,180,800 |
|
Prepayments and deposits |
|
|
405,545 |
|
|
|
- |
|
Prepaid land leases |
|
|
527,574 |
|
|
|
49,833 |
|
Other
receivable |
|
|
559 |
|
|
|
599 |
|
Deferred tax assets |
|
|
- |
|
|
|
3,173 |
|
Total
Current Assets |
|
|
225,250,556 |
|
|
|
190,821,115 |
|
Non-Current Assets |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
112,549,109 |
|
|
|
127,871,323 |
|
Property, plant and equipment under capital leases, net |
|
|
743,888 |
|
|
|
927,218 |
|
Prepaid land leases, net of current portion |
|
|
4,966,172 |
|
|
|
5,197,216 |
|
Deferred tax assets |
|
|
2,321,098 |
|
|
|
2,367,180 |
|
Goodwill |
|
|
28,944,958 |
|
|
|
29,559,174 |
|
Total non-current
assets |
|
|
149,525,225 |
|
|
|
165,922,111 |
|
Total
Assets |
|
$ |
374,775,781 |
|
|
$ |
356,743,226 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
14,999,533 |
|
|
$ |
9,929,700 |
|
Retention payable |
|
|
17,237 |
|
|
|
1,135,956 |
|
Capital lease obligation, current portion |
|
|
112,434 |
|
|
|
196,778 |
|
Taxes
payable |
|
|
7,336,261 |
|
|
|
4,814,003 |
|
Total
Current Liabilities |
|
|
22,465,465 |
|
|
|
16,076,437 |
|
Non-Current Liabilities |
|
|
|
|
|
|
|
|
Capital lease obligation, net of current portion |
|
|
2,390,370 |
|
|
|
2,555,914 |
|
Total
Liabilities |
|
$ |
24,855,835 |
|
|
$ |
18,632,351 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
PREFERRED STOCK; $0.001
par value; 1,000,000 shares authorized; none outstanding |
|
|
|
|
|
|
|
|
COMMON STOCK; $0.0005
par value; 80,000,000 shares authorized as of June 30, 2016 and
December 31, 2015; 46,285,202 and 46,276,269 shares issued; and
46,016,053 and 46,007,120 shares outstanding as of June 30,2016 and
December 31, 2015, respectively |
|
$ |
23,143 |
|
|
$ |
23,139 |
|
Treasury stock; 269,149 and 269,149 shares as of June 30, 2016 and
December 31, 2015 at cost |
|
|
(599,441 |
) |
|
|
(599,441 |
) |
Additional paid-in capital |
|
|
94,136,861 |
|
|
|
94,124,065 |
|
Retained earnings unappropriated |
|
|
233,473,154 |
|
|
|
215,286,395 |
|
Retained earnings appropriated |
|
|
21,817,660 |
|
|
|
20,340,436 |
|
Accumulated other comprehensive income |
|
|
1,068,569 |
|
|
|
8,936,281 |
|
Total
Stockholders’ Equity |
|
|
349,919,946 |
|
|
|
338,110,875 |
|
Total
Liabilities and Stockholders’ Equity |
|
$ |
374,775,781 |
|
|
$ |
356,743,226 |
|
See accompanying notes to the condensed consolidated financial
statements.
GULF RESOURCES, INC. |
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Expressed in U.S.
dollars) |
(UNAUDITED) |
|
|
|
Six-Month Period Ended June 30, |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
Net income |
|
$ |
19,663,983 |
|
|
$ |
16,090,531 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Interest on capital lease
obligation |
|
|
91,764 |
|
|
|
101,460 |
|
Amortization of prepaid land
leases |
|
|
255,261 |
|
|
|
254,087 |
|
Depreciation and amortization |
|
|
13,514,292 |
|
|
|
14,906,669 |
|
Exchange (gain) loss on
inter-company balances |
|
|
(548,734 |
) |
|
|
24,292 |
|
Stock-based compensation
expense |
|
|
12,800 |
|
|
|
343,800 |
|
Deferred tax asset |
|
|
- |
|
|
(81,460 |
) |
Changes in assets and
liabilities, net of effects of acquisition: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(22,737,450 |
) |
|
|
(13,943,594 |
) |
Inventories |
|
|
328,685 |
|
|
|
268,683 |
|
Prepayments and deposits |
|
|
(14,094 |
) |
|
|
67,150 |
|
Other receivables |
|
|
- |
|
|
|
37,713 |
|
Accounts payable and accrued
expenses |
|
|
5,353,742 |
|
|
|
4,172,413 |
|
Retention payable |
|
|
(1,112,087 |
) |
|
|
(281,241 |
) |
Taxes payable |
|
|
2,662,606 |
|
|
|
2,568,444 |
|
Net cash
provided by operating activities |
|
|
17,470,768 |
|
|
|
24,528,947 |
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Additions of prepaid
land leases |
|
|
(616,512 |
) |
|
|
(632,139 |
) |
Purchase of property,
plant and equipment |
|
|
(870,875 |
) |
|
|
- |
|
Consideration paid for
business acquisition |
|
|
- |
|
|
|
(66,305,606 |
) |
Cash acquired from
acquisition |
|
|
- |
|
|
|
14,074,720 |
|
Net cash used
in investing activities |
|
|
(1,487,387 |
) |
|
|
(52,863,025 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS USED IN
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Repayment of capital
lease obligation |
|
|
(287,387 |
) |
|
|
(306,683 |
) |
Repurchase of common
stock |
|
|
- |
|
|
|
(37,713 |
) |
Net cash used
in financing activities |
|
|
(287,387 |
) |
|
|
(344,396 |
) |
|
|
|
|
|
|
|
|
EFFECTS OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
|
(3,029,146 |
) |
|
|
120,721 |
|
NET (DECREASE)/INCREASE
IN CASH AND CASH EQUIVALENTS |
|
|
12,666,848 |
|
|
|
(28,557,753 |
) |
CASH AND CASH
EQUIVALENTS - BEGINNING OF PERIOD |
|
|
133,606,392 |
|
|
|
146,585,601 |
|
CASH AND CASH
EQUIVALENTS - END OF PERIOD |
|
$ |
146,273,240 |
|
|
$ |
118,027,848 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE
OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Cash paid during the
period for: |
|
|
|
|
|
|
|
|
Income taxes |
|
$ |
4,586,259 |
|
|
$ |
3,766,955 |
|
SUPPLEMENTAL DISCLOSURE
OF NON-CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Issuance of common stock upon
cashless exercise of options |
|
$ |
4 |
|
|
$ |
49 |
|
Issuance of common stock for
acquisition of business |
|
$ |
- |
|
|
$ |
13,373,140 |
|
See accompanying notes to the condensed consolidated financial
statements.
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu (Haiyan Xu)
beishengrong@vip.163.com
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