Gulf Resources Announces the Receipt of Governmental Notification to Temporarily Close Bromine Facilities
December 22 2023 - 4:30PM
Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources" or the
"Company"), today announced that it received notification from the
government of Shouguang City on December 22, 2023, pursuant to
which its all bromine and crude salt facilities will be temporarily
closed from December 25, 2023 to February 20, 2024. To comply with
such notification, the Company expects to temporarily halt
production during this period.
We believe this seasonal closure aligns with the
government's efforts to address winter air pollution and enhance
the overall efficiency of brine resources.
Compared to the 2023 closure from December 10 to
February 1, the closure in 2024 means that the Company will have an
additional 15 days of production in the fourth quarter of 2023 and
will lose 19 days of production in the first quarter of 2024.
Winter typically sees slower bromine sales as our
customers are closed for Chinese New Year holidays, leading to
fewer orders before their closure. Further, processing crude salt
becomes challenging during the coldest months because of low
temperatures.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through four
wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company
Limited ("SCHC"), Shouguang Yuxin 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 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
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