Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources", “we,” or the
"Company"), a leading manufacturer of bromine, crude salt and
specialty chemical products in China, today announced unaudited
financial results for the three and nine months ended September 30,
2022.
Financial Highlights
For the three-month period ending September
30,2022
- Revenues increased 29% to $22,862,795 compared to the same
period of 2021.
- Income from operations increased 68% to $11,942,592 compared to
the same period of 2021.
- Profits before taxes increased 68% to $11,978,347.
- Net income increased 66% to $8,967,380.
- Earnings per share increased 65% to $0.86.
For the nine-month period ending September
30,2022
- Revenues increased 39% to $47,505,246.
- Income from operations increased 1085% to $16,986,668 from
$1,433,742.
- Net income increased 6672% to $12,749,228 from $188,271
- Earnings per share increased 6000% to $1.22 from $0.02
Balance Sheet Highlights
- The decline of the RMB against the USD had a significant
negative impact on the balance sheet. However, even with this
decline:
- Cash was $92,638,278 or $8.85* per share.
- Working capital was $94,113,446 or $8.99* per share.
- Shareholders’ Equity Book Value was $268,613,759 or $25.65* per
share.
For the Three Months Ending September 30,
2022.
In the third quarter, revenues, income from operations, profits
before taxes, net income, and earnings per share all increased
sharply. Revenues increased 29% to $22,862,795. Income from
operations increased 68% to $11,942,592. Profits before taxes
increased 68% to $11,978,347. Net income increased 66% to
$8,967,380. Earnings per share increased 65% to $0.86.
Segment ResultsBromineBromine
revenues increased 33% to $19,845,773 from $14,913,004. Production
in tonnes increased 6% while the average selling price increased
26%. We had four factories in operation. While factory #8 was
approved for production, we spent the period after approval
preparing for opening. We expect this factory to produce revenues
in the fourth quarter.
The average selling price in the third quarter was $7,474
compared to $5,938 in the third quarter of the previous year. The
cost of net revenues was $7,362,103 compared to a cost of
$6,599,977 in the previous year. A major factor in the increase in
costs was a reallocation of expenses to bromine as a result of the
creation of our new crude salt subsidiary.
Gross profits were $12,483,670, an increase of 50.1% from the
results of the previous year. As a percentage of sales, profit
margins increased to 63% from 56%. Income from operations increased
53% to $10,552,343.
Crude Salt Revenues from crude salt increased
3% to $2,934,707. Volume increased 3%. Cost of net revenues
declined to $1,043,260 from $1,597,720. The primary contributor to
the lower cost was the reallocation between bromine and crude salt.
Income from operations increased 234% to $1,876,161 from $561,373,
largely due to the change in allocation of costs.
Bromine and Crude Salt Versus GuidanceOn August
30,2022, we provided guidance for the third quarter for our bromine
and crude salt segments. Our projections were for revenues in these
two segments of $20.0-$21.8 million. In the third quarter, the
bromine and crude salt segments had revenues of $22,780,480. We
also projected profit before tax of $9.0-$10.3 million. In the
quarter, the bromine and crude salt segments reported profit before
tax of $12,417,870.
Chemical ProductsChemical products had $0
revenues and a loss from operations of $447,960 vs. a loss from
operations of $535,047 in the previous year
Natural Gas SegmentOur natural gas segment had
revenues of $82,315 compared to $0. The revenues came from the
rental of some of our equipment. Income from operations was $19,500
compared to a loss of $49,295 in the same period in 2021.
Direct Labor and Factory Overheads During the
quarter, the Company incurred direct labor and factory overhead
costs (including depreciation of plant and machinery) in the amount
of $1,910,318 compared to $1,229,058 in the previous year.
Net Income Per ShareDuring the third quarter,
net income per share was $0.86 versus $0.52 in the previous year.
There were 10,471,924 shares outstanding compared to 10,469,477 in
the previous year.
- Income from operations increased 68% to $11,942,592.
- Profits before taxes increased 68% to $11,978,347.
- Net income increased 68% to $8,967,380.
- Earnings per share increased 65% to $0.86.
For the Nine Months Ending September 30,
2022.
For the 9 months ending September 30, 2022, revenues increased
39% to $47,505,246 compared to the same period of 2021.
Income from operations increased 1085% to $16,986,668 from
$1,433,742 compared to the same period of 2021. Net income
increased 6672% to $12,749,228 from $188,271 compared to the same
period of 2021. Earnings per share increased 6000% to $1.22 from
$0.02 compared to the same period of 2021.
In bromine, revenues increased 41% to $41,865,598. The cost of
net revenues was $18,148,260. $2,176,785 of this increase was due
to a reallocation of costs with crude salt. Gross profit was
$23,717,338 compared to $13,777,957. The increase in gross profits
was largely due to improved pricing offset by higher cost
allocations. Income from operations more than doubled to
$17,226,718 from $8,312,210, due to improved pricing.
In crude salt, revenue increased to $5,506,655 from $4,411,448.
The costs in crude salt dropped to $2,908,108 from $3,323,385,
largely due to $2,176,785 in lower cost allocations. Gross profit
more than doubled to $2,598,547 from $1,088,103. Income from
operations was $1,497,208 compared to a loss of $1,026,647.
Chemical products lost $1,436,443 compared to a loss of
$2,022,828 in the previous year. Natural gas lost $68,938 compared
to a loss of $166,932 in the previous year.
Corporate costs were $186,682 compared to $3,378,774 in the
previous year. In 2021, the Company incurred approximately $3.1
million in costs related to stock grants. By September 30, 2022,
there had been no new stock grants.
As noted in our 10-Q, on October 7, 2022, the
Company issued a total of 200,000 shares of common stock to its
executive officers, directors, staff and consultant under the
Company’s equity incentive plan. It is at the cost of approximately
$668,000.
9 Month Cash Flow
- The Company generated net cash from operations of
$37,101,024.
- Capital expenditures for the Bromine segment were
$33,217,987
- The effects of the decline of the Renminbi (“RMB”) versus the
United States dollar (“USD”) impacted our cash and cash equivalents
by $6,728,107
Balance SheetDuring 2022, the RMB declined
sharply against the USD. According to exchangerates.org.uk, on
January 1, 2022, $1 was worth RMB 6.3557. On September 30, 2022, $1
was worth RMB 7.1204, a decline of 12%. The drop of the RMB against
the USD caused a resulting impact on balance sheet items.
Despite the impact on our balance sheet, we ended the quarter
with cash of $92,638,278 or $8.85* per share. Working capital was
$94,113,446 or $8.99* per share. Book Value was $268,613,759 or
$25.65* per share.
Update on Business
OperationsCOVIDCovid continues to
significantly impact on our business. This has caused a softening
of bromine prices and a delay in receiving the equipment needed for
our new chemical factory. We have no visibility as to when the
impact of the COVID epidemic will abate. However, the Company is
aware that COVID is more dangerous in the winter months, so issues
could continue.
BromineDuring the third quarter, we prepared
factory #8 for production. Revenues are expected in fourth quarter.
We have not heard anything from the local government about
factories #2 and #10. We remain optimistic that we may receive
permission to open these factories, although some investment may in
new wells, crude salt ponds, and aqueducts will be required.
ChemicalsThe COVID epidemic and resulting
supply chain disruptions has impacted the opening of our chemical
factory. While some of the equipment has been delivered, we are
still lacking a few components. We expect these to be delivered in
this quarter or at latest in the first quarter 2023.
Once all of the equipment is delivered, it will take 3 to 4
months to get them installed. After installation, the testing
process should take 2 to 3 months, after which we will apply for
environmental approval. After we get the approval, it will take 4
months to conduct trial production. Full commercial production may
start by the beginning of 2024. The Company regrets this delay, but
we could not have foreseen the continuing issues related to
COVID.
Natural GasThe Company is continuing to wait
for the government of Sichuan Province to complete its plan. The
Company believes Sichuan still represents a substantial opportunity
for both natural gas and bromine. The Company remains optimistic
that it will eventually receive approval to drill for both
products.
However, the Company is open to considering partnerships with
state-owned enterprise.
4th Quarter 2022 Projections for
Bromine and Crude Salt Segments Only
Two factors, the COVID pandemic and the early Chinese New Year,
are likely to impact on the fourth quarter. The Chinese economy
remains softer than usual. Bromine prices dropped in at the
beginning of September and started to rise the second week of
October. By late October, they had risen to their current level of
RMB 49,800. The current price is higher than that of Sept. 30,
2021, but lower the highs achieved in the 4th quarter of 2021. (All
numbers based on data from sunsirs.com)
Although the Company has no certain information, it expects the
government to announce another winter closing. In 2022,Chinese New
Year was on Feb. 1. In 2023, it will be on Jan. 22. This means
there may be approximately 10 less days of production in 2022. By
contrast, 2023 may have approximately 19 additional days of
production because of the later Chinese New Year in 2024.
Given the potential of fewer days of production and a lower
price for bromine, the Company estimates revenues will be in the
range of $15.4-$16.8 million, a decline of 19-26%. Profit before
tax will be in a range of $3.8-$4.2 million, a decline of
16-24%.
In our projections of August 30, we indicated that bromine and
crude salt would have annual revenues of $62.0-$63.7 million. With
the results for the 9 months and the projections for the
4th quarter, we now project these segments will have revenue
of $62.7-$64.1 million.
We had also projected these segments would have profits before
taxes of $20.0-$21.5 million. Based on the first 9 months and the
projections for the 4th quarter, we now project these segments will
have profits before taxes of $22.4-$22.8 million. So despite the
slowdown caused by COVID, we expect to exceed our original guidance
for bromine and crude salt for both sales and earnings.
Commentary “We are very pleased to have
reported such a strong 3rd quarter and 9 months with $1.22 of
earnings per share,” Mr. Liu Xiaobin, the CEO stated. “With the
lower RMB making imports more expensive, and the closing of some
domestic facilities, we believe bromine prices will continue to be
strong. While we regret the delay in opening our chemical factory,
we are very confident in its long-term potential. We also expect
that we will eventually receive approval to drill for natural gas
and bromine in Sichuan.”
“We are very aware that our shareholders are extremely unhappy
with our share price,” Mr. Liu stated. “We want you to appreciate
that management is equally unhappy. We repaid more than 11 years of
portion of the cash compensation. If the price of the stock does
not go up, no one suffers more than we do.”
“We know,” Mr. Liu continued, “shareholders would like us to buy
back stock. Unfortunately, we cannot get approval to take money out
of China. However, company may consider to pay executives in RMB
and buyback some of their shares. We recognize there could be some
impediments, but we want to do what we can to help our share
price.”
“We appreciate the patience of our investors,” Mr. Liu
concluded. “But we want to remind you that we are in the same
position as you are. Our futures are completely tied to the price
of Gulf’s stock. We are now starting to show substantial earnings.
With factory #8 becoming operational and with the future potential
of our chemical factory, we look forward to providing our investors
with strong profits in the coming years.”
(*These calculations are based on the number of shares issued
and outstanding of 10,471,924 shares as of September 30, 2022)
Conference CallGulf Resources management will
host a conference call on Tuesday, November15, 2022 at 08:00 AM
Eastern Time to discuss its third quarter 2022 results ended
September 30, 2022.
Mr. Xiaobin Liu, CEO of Gulf Resources, will be hosting the
call. The Company management team will be available for investor
questions following the prepared remarks.
To participate in this live conference call, please dial Toll
Free +1(888)506-0062 five to ten minutes prior to the scheduled
conference call time. International callers should dial +1(973)-
528 - 0011, and please reference to “Gulf Resources” or Participant
Access Code: 105706 while dial in.
The webcasting is also available then, just simply click on the
link below:http://www.gulfresourcesinc.com/news-28.html
A replay of the conference call will be available two hours
after the call's completion and expired by Tuesday, November 22,
2022. To access the replay, call +1 (877) 481-4010. International
callers should call +1 (919) 882-2331. The Replay Passcode is
47099.
About Gulf Resources, Inc.Gulf Resources, Inc.
operates through four wholly-owned subsidiaries, Shouguang City
Haoyuan Chemical Company Limited ("SCHC"), ShouguangYuxin Chemical
Industry Co., Limited ("SYCI"), Daying County Haoyuan Chemical
Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co.
Ltd. (“SHSI”). 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. Through SHSI, the
Company manufactures and sell crude salt. 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, the risks associated with the COVID-19
pandemic outbreak, 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 BALANCE SHEETS |
(Expressed in U.S. dollars) |
|
|
|
|
|
|
|
|
September 30,2022Unaudited |
|
December 31,2021Audited |
Current Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
92,638,278 |
|
|
$ |
95,767,263 |
|
Accounts receivable |
|
|
9,995,651 |
|
|
|
14,525,807 |
|
Inventories, net |
|
|
603,961 |
|
|
|
691,111 |
|
Prepayments and deposits |
|
|
3,920,177 |
|
|
|
4,450,037 |
|
Other receivable |
|
|
635 |
|
|
|
644 |
|
Total Current Assets |
|
|
107,158,702 |
|
|
|
115,434,862 |
|
Non-Current Assets |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
158,607,644 |
|
|
|
162,657,546 |
|
Finance lease right-of use assets |
|
|
162,057 |
|
|
|
184,824 |
|
Operating lease right-of-use assets |
|
|
8,208,368 |
|
|
|
8,311,127 |
|
Prepaid land leases, net of current portion |
|
|
9,329,586 |
|
|
|
10,368,469 |
|
Deferred tax assets |
|
|
7,078,024 |
|
|
|
12,900,034 |
|
Total non-current assets |
|
|
183,385,679 |
|
|
|
194,422,000 |
|
Total Assets |
|
$ |
290,544,381 |
|
|
$ |
309,856,862 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Payable and accrued expenses |
|
$ |
10,058,811 |
|
|
$ |
10,530,776 |
|
Taxes payable-current |
|
|
657,001 |
|
|
|
775,708 |
|
Amount due to a related party |
|
|
1,721,606 |
|
|
|
1,849,044 |
|
Finance lease liability, current portion |
|
|
182,639 |
|
|
|
227,429 |
|
Operating lease liabilities, current portion |
|
|
425,199 |
|
|
|
506,579 |
|
Total Current Liabilities |
|
|
13,045,256 |
|
|
|
13,889,536 |
|
Non-Current Liabilities |
|
|
|
|
|
|
|
|
Finance lease liability, net of current portion |
|
|
1,433,928 |
|
|
|
1,770,526 |
|
Operating lease liabilities, net of current portion |
|
|
7,451,438 |
|
|
|
7,557,583 |
|
Total Non-Current Liabilities |
|
|
8,885,366 |
|
|
|
9,328,109 |
|
Total Liabilities |
|
$ |
21,930,622 |
|
|
$ |
23,217,645 |
|
|
|
|
|
|
|
|
|
|
Commitment and Loss Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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; 10,517,754 shares issued;
and 10,471,924 shares outstanding as
of September 30, 2022 and December 31, 2021,
respectively |
|
|
24,376 |
|
|
|
24,376 |
|
Treasury stock; 45,830 and 45,830 shares as
of September 30, 2022 and December 31, 2021 at cost |
|
|
(510,329 |
) |
|
|
(510,329 |
) |
Additional paid-in capital |
|
|
100,569,159 |
|
|
|
100,569,159 |
|
Retained earnings unappropriated |
|
|
163,212,866 |
|
|
|
150,463,638 |
|
Retained earnings appropriated |
|
|
24,233,544 |
|
|
|
24,233,544 |
|
Accumulated other comprehensive loss |
|
|
(18,915,857 |
) |
|
|
11,858,829 |
|
Total Stockholders’ Equity |
|
|
268,613,759 |
|
|
|
286,639,217 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
290,544,381 |
|
|
$ |
309,856,862 |
|
GULF RESOURCES, INC. |
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE
LOSS |
(Expressed in U.S. dollars) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended September 30, |
|
Nine -Month Period Ended September 30, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
NET REVENUE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
22,862,795 |
|
|
$ |
17,753,669 |
|
|
$ |
47,505,246 |
|
|
$ |
34,160,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of net revenue |
|
|
(8,405,694 |
) |
|
|
(8,197,697 |
) |
|
|
(21,056,782 |
) |
|
|
(19,294,860 |
) |
Sales, marketing and other operating expenses |
|
|
(19,681 |
) |
|
|
(19,035 |
) |
|
|
(47,086 |
) |
|
|
(44,205 |
) |
Direct labor and factory overheads incurred during plant
shutdown |
|
|
(1,910,318 |
) |
|
|
(1,229,058 |
) |
|
|
(6,022,206 |
) |
|
|
(5,237,258 |
) |
General and administrative expenses |
|
|
(584,473 |
) |
|
|
(1,209,818 |
) |
|
|
(3,384,063 |
) |
|
|
(8,150,769 |
) |
Other operating income (loss) |
|
|
(37 |
) |
|
|
(86 |
) |
|
|
(8,441 |
) |
|
|
(86 |
) |
|
|
|
(10,920,203 |
) |
|
|
(10,655,694 |
) |
|
|
(30,518,578 |
) |
|
|
(32,727,178 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME(LOSS) FROM
OPERATIONS |
|
|
11,942,592 |
|
|
|
7,097,975 |
|
|
|
16,986,668 |
|
|
|
1,433,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(27,715 |
) |
|
|
(32,420 |
) |
|
|
(94,703 |
) |
|
|
(108,650 |
) |
Interest income |
|
|
63,470 |
|
|
|
73,707 |
|
|
|
213,546 |
|
|
|
221,597 |
|
Other (income) expenses |
|
|
|
|
|
|
4,636 |
|
|
|
|
|
|
|
4,636 |
|
INCOME(LOSS) BEFORE TAXES |
|
|
11,978,347 |
|
|
|
7,143,898 |
|
|
|
17,105,511 |
|
|
|
1,551,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE |
|
|
(3,010,967 |
) |
|
|
(1,750,283 |
) |
|
|
(4,356,283 |
) |
|
|
(1,363,054 |
) |
NET INCOME(LOSS) |
|
$ |
8,967,380 |
|
|
$ |
5,393,615 |
|
|
$ |
12,749,228 |
|
|
$ |
188,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME(LOSS) |
|
$ |
8,967,380 |
|
|
$ |
5,393,615 |
|
|
$ |
12,749,228 |
|
|
$ |
188,271 |
|
OTHER COMPREHENSIVE LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign currency translation adjustments |
|
|
(15,930,276 |
) |
|
|
(1,272,449 |
) |
|
|
(30,774,686 |
) |
|
|
1,877,097 |
|
COMPREHENSIVE
INCOME(LOSS) |
|
$ |
(6,962,896 |
) |
|
$ |
4,121,166 |
|
|
$ |
(18,025,458 |
) |
|
$ |
2,065,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME(LOSS) PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED |
|
$ |
0.86 |
|
|
$ |
0.52 |
|
|
$ |
1.22 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF
SHARES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED |
|
|
10,471,924 |
|
|
|
10,469,477 |
|
|
|
10,471,924 |
|
|
|
10,469,477 |
|
GULF RESOURCES, INC. |
AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Expressed in U.S. dollars) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Nine-Month Period Ended September 30, |
|
|
2022 |
|
2021 |
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
|
Net income(loss) |
|
$ |
12,749,228 |
|
|
$ |
188,271 |
|
Adjustments to reconcile net
loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
16,352,915 |
|
|
|
12,419,851 |
|
Unrealized exchange gain on translation of inter-company
balances |
|
|
45,195 |
|
|
|
283,287 |
|
Deferred tax asset |
|
|
3,809,038 |
|
|
|
1,363,055 |
|
Common stock issued for services |
|
|
— |
|
|
|
3,134,080 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
3,451,924 |
|
|
|
(6,890,373 |
) |
Inventories |
|
|
27,073 |
|
|
|
(67,328 |
) |
Prepayments and deposits |
|
|
324,685 |
|
|
|
(2,744,904 |
) |
Other receivables |
|
|
— |
|
|
|
— |
|
Accounts and Other payable and accrued expenses |
|
|
1,553,583 |
|
|
|
2,598,030 |
|
Retention payable |
|
|
— |
|
|
|
— |
|
Taxes payable |
|
|
(365,255 |
) |
|
|
905,230 |
|
Prepaid land leases |
|
|
— |
|
|
|
— |
|
Operating lease |
|
|
(847,362 |
) |
|
|
(126,655 |
) |
Net cash provided by
(used in) by operating activities |
|
|
37,101,024 |
|
|
|
11,062,544 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
|
Purchase of property, plant
and equipment |
|
|
(33,217,987 |
) |
|
|
(8,560,152 |
) |
Net cash used in
investing activities |
|
|
(33,217,987 |
) |
|
|
(8,560,152 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
Repayment of finance lease
obligation |
|
|
(283,915 |
) |
|
|
(290,597 |
) |
Net cash used in
financing activities |
|
|
(283,915 |
) |
|
|
(290,597 |
) |
|
|
|
|
|
|
|
|
|
EFFECTS OF EXCHANGE RATE
CHANGES ON CASH AND CASH EQUIVALENTS |
|
|
(6,728,107 |
) |
|
|
2,446,493 |
|
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
|
(3,128,985 |
) |
|
|
4,658,288 |
|
CASH AND CASH EQUIVALENTS -
BEGINNING OF PERIOD |
|
|
95,767,263 |
|
|
|
94,222,538 |
|
CASH AND CASH EQUIVALENTS -
END OF PERIOD |
|
$ |
92,638,278 |
|
|
$ |
98,880,826 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Cash paid during the periods
for: |
|
|
|
|
|
|
|
|
Cash paid for income taxes |
|
$ |
72,573 |
|
|
$ |
— |
|
Cash paid for interest |
|
$ |
— |
|
|
$ |
— |
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
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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