Gulf Resources Announces the Receipt of Governmental Notification to Temporarily Close Bromine Facilities
December 27 2021 - 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
received an oral notification from the government of Shouguang City
on December 23, 2021, pursuant to which all bromine facilities in
Shouguang City will be temporarily closed from December 28, 2021
until February 21, 2022 8:00 AM China Time. 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 becomes worse in the winter, and improve the
comprehensive development efficiency of brine resources.
The Company does not anticipate the closure will
have a significant impact on the Company’s business for the 4th
quarter, for all of year 2021, or for 2022.
Further, in 2020-2021, the prior seasonal closure
went from December 25, 2020 until February 19, 2021 8:00 AM China
Time, there is the similar number of closure days ordered by these
two government notifications.
In general, winter is a slow period for bromine
sales. Our customers are closed for Chinese New Year, so they do
not place large orders prior to their closure. Further, crude salt
is difficult to be processed during the coldest months because of
low temperatures.
For the 4th quarter and for year 2021, the closure
takes place with only 4 days remaining in the year.
For 2022, the company’s business is always closed
for Chinese New Year, which begins on February 1, 2022.
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
StatementsCertain 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 |
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