Gulf Resources Announces the Receipt of Governmental Notification to Temporarily Close Bromine Facilities
December 09 2022 - 4:30PM
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 8, 2022, pursuant to which its all bromine facilities
in Shouguang City will be temporarily closed from December 10, 2022
until February 1, 2023 8:00 AM China Time. To comply with such
notification, the Company expects to temporarily stop production at
its bromine facilities in Shouguang City 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 fourth
quarter of 2022, for the full year 2022, or for 2023.
Further, in 2021-2022, the prior seasonal closure
went from December 28, 2021 until February 21, 2022 8:00 AM China
Time. There will be fewer days of closure for the 2022-2023 than
the year for 2021-2022 ordered by these two government
notifications.
In general, winter is a slow period for bromine
sales. Our customers are closed for Chinese New Year holidays, so
they do not place large orders prior to their closure. Further, it
is difficult to process crude salt during the coldest months
because of low temperatures.
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 China, 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
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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