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Gulf Resources Announces First Quarter 2021 Unaudited Financial Results and Provides Guidance for 2nd Quarter and Fiscal Year 2021
SHOUGUANG, China, May 17, 2021 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources", "we," or the "Company"), a leading manufacturer of
About this update from Gulf Resources, Inc.
[{"type":"text","content":"SHOUGUANG, China, May 17, 2021 (GLOBE NEWSWIRE) -- 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 first quarter 2021 financial results and provides guidance for the second quarter and full fiscal year 2021. The first quarters of 2020 and 2021 were both significantly impacted by the government forced closures related to winter weather and Chinese New Year. In 2021, our factories were closed from December 25, 2020 to February 19, 2021. In addition, even though the factories were closed for a majority of the period, the Company still had to pay salaries, rent, and incurred depreciation and amortization. In other words, the Company had more than one month of production and three months of overhead. In addition, the Company also incurred substantial costs for the facilities that were still closed. Finally, because of the process of salt crystallization, winter is always the slowest season for crude salt production. Despite all of the 4 operating bromine and crude salt facilities being closed for a majority of the quarter, the three other bromine and crude salt facilities awaiting government approval, the chemical factory being under construction, and the Sichuan facilities also awaiting government approval, Gulf Resources was still able to generate $3,341,395 in free cash flow ($0.33 cents per share*.) Q1 Fiscal 2021 Highlights Balance Sheet The Company ended the first fiscal quarter of 2021 with cash of $96,699,324 ($9.67 per share*.) Net net cash per share (cash minus all liabilities) equaled $76,442,515 ($7.65 per share *). Working capital equaled $94,061,925 ($9.41 per share*). Shareholders’ equity equaled $272,337,459 ($27.24 per share*). Income Statement Net revenues for Q1 2021 increased by 843% to $5,259,243 compared to $557,670 in the previous year. The Company had 2 factories operating in 2020 and 4 factories in 2021. In the period in which they were operating in 2021, our factories produced positive results. Cost of goods sold in 2021 was 79.5% as compared to 165% in the previous year. Loss from operations was ($3,281,424) as compared to ($4,835,429) in the prior year. Our net loss was ($2,502,124) as compared to ($3,539,758) in the prior year. Lo...