Business
Gulf Resources Announces First Quarter of 2022 Financial Results and Plan to Present 6-year Financial Plan by the end of June 2022
SHOUGUANG, China, May 13, 2022 (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 13, 2022 (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 financial results for the first quarter ended March 31, 2022 as well as its plan to provide investors with its 6 year financial plan by the end of June 2022. Despite the closure of all our operating facilities for 51 of the 90 days of the first quarter, 2022 and the additional time to restart production, the costs of our closed facilities, and a negative non-cash charge on foreign currency translation losses, Gulf Resources reported near breakeven results for the first quarter. During this period, our operating loss was reduced 98% to $65,087 from $3,281,424. With the strong increases in bromine pricing, we expect the remaining quarters of 2022 and the year as a whole will be profitable even without contributions from chemicals and natural gas. These estimates exclude any potential nonrecurring factors or write-offs.Company is in the final stages of preparing its 6-year plan. This plan will be presented to investors on a conference call by the end of the next month. First Quarter 2022 In the first quarter, net revenues increased 70% to $8,930,737 from $5,259,243. Our factories were closed for environmental reasons until February 21, 2022. In the previous year, they were closed until February 19, 2021. We had 39 days of operations in 2022 versus 41 days in 2021. Our daily revenues increased 78.5%.Gross profits increased 306% to $4,380,769 from $1,077,854. Direct labor and factory overheads incurred during the plant shutdown were $2,184,591. General and administrative expenses increased 29% to $2,242,501. A major factor impacting G&A was a swing in unrecorded foreign translation losses. The loss from operations decreased 98% to $65,087 from $3,281,424. If the direct labor and factory overheads of $2,242,501 and the foreign translation losses of $283,789 are excluded, the first quarter of 2022 would have been very profitable, even with only 39 days of operations. Business Segment DataBromine Revenues in bromine increased 69% to $8,126,015. Tonnes produced increased 5% to 1,005. The average selling price increased 60.5% to $8,086. At the present time, based on the spot price from sunsirs.com and th...