Gulf Resources Provides Guidance for fourth quarter 2020 and Announces the Receipt of Governmental Notification to Temporaril...
November 30 2020 - 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 provided operational
guidance for fourth quarter 2020 and announced that it has received
a notification from the government of Shouguang City, pursuant to
which all bromine facilities in Shouguang City will be temporarily
closed from December 25, 2020 until February 19, 2021 8:00 AM China
Time. Such notification was issued on November 24, 2020, while
Company received it on November 26th, 2020. To comply with such
notification, the Company expects to temporarily stop production at
its bromine facilities during the aforesaid period.
We believe this seasonal closure ordered by the government is
part of governmental action plan to curb air pollution,which is
worse in the winter, and improve the comprehensive development
efficiency of brine resources.
The Company does not anticipate the closure will significantly
impact the Company’s business. Winter is normally a slow period for
bromine production. Winter is also a slow period for crude salt
which cannot be processed during the coldest months. Further, in
2020, when Chinese New Year was earlier, the seasonal closure went
from December 16, 2019 to February 10, 2020, there is the same
number of closure days ordered by these two government
notifications.
This company does not expect the closure will have a material
impact on the 4th quarter 2020. The Company still believes it may
reach break-even closely at net income approximately between $0.5
Million to $1.0 Million with revenue approximately between $8.0
Million to $9.0 Million for the fourth quarter, 2020 without
considering non-operational factors which may arise for the
quarter.
The company also does not believe this closure will have a
significant impact on 2021 results. The company’s business is
always closed for Chinese New Year holidays, which this year begins
on February 12, 2021.
Once the closure is ended, we intend to resume production. Since
Shouguang City is the one of the largest bromine producing regions
in China and since all factories in Shouguang City will be closed,
we do not expect to lose business for 2021.
About Gulf Resources, Inc. Gulf
Resources, Inc. operates through three wholly-owned subsidiaries,
Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang
Yuxin 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 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.
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 Jun 2024 to Jul 2024
Gulf Resources (NASDAQ:GURE)
Historical Stock Chart
From Jul 2023 to Jul 2024