Gulf Resources Announces Postponement in Delivery of Equipment for Chemical Factory
July 26 2023 - 8:30AM
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 that it has
temporarily postponed the delivery of the remaining equipment for
its Yuxin chemical factory.
Over the past two years, Bromine prices in China
have plunged. On 10/16/2021, they were RMB approximately 69,500 per
tonne. On 2/17/2022, they were approximately RMB 59,000 per tonne.
On 6/30/2023, they had dropped to approximately RMB 18,000 per
tonne.
Gulf Resources believes that weakness in
construction and the decline in antiseptic sales for the COVID
pandemic are two of the factors suppressing prices. The company
expects that prices will increase. They have already marginally
improved to RMB 19,500. However, with present weak demand and low
prices, the company has decided to use this as an opportunity to
review its chemical products strategy.
Two advantages of lower prices and the weakness of
the Chinese RMB is that imports of bromine become more expensive,
and exports, which will be a focus of the company, have become
cheaper. As the company has previously indicated, it is reviewing
opportunities for exports that will provide it with financial
flexibility. The company is also investigating opportunities for
zinc-bromine batteries, that may appear to offer strong advantages
for electrical storage.
The equipment that has yet to be delivered is
sophisticated and must be tailored to specific products the company
will produce. The company is currently reviewing its manufacturing
plans for the Yuxin Chemical factory so that it can tailor the
equipment for the products that may be the most profitable and give
the company financial flexibility.
The company expects that this process will not be
overly lengthy and that it will make a final decision on the
tailoring of the equipment in the near future.
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 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, 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.
CONTACT: Gulf Resources, Inc.Web:
http://www.gulfresourcesinc.comDirector of Investor RelationsHelen
Xu (Haiyan Xu)
beishengrong@vip.163.com
Gulf Resources (NASDAQ:GURE)
Historical Stock Chart
From Apr 2024 to May 2024
Gulf Resources (NASDAQ:GURE)
Historical Stock Chart
From May 2023 to May 2024