Business
Gulf Resources Provides Guidance for fourth quarter 2020 and Announces the Receipt of Governmental Notification to Temporarily Close Bromine Facilities
SHOUGUANG, China, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of
About this update from Gulf Resources, Inc.
[{"type":"text","content":"SHOUGUANG, China, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (\"Gulf Resources\" or the \"Company\"), a leading manufacturer of bromine, crude salt and specialty chemical products in China today provided operational guidance for fourth quarter 2020 and announced that it has received a notification from the government of Shouguang City, pursuant to which all bromine facilities in Shouguang City will be temporarily closed from December 25, 2020 until February 19, 2021 8:00 AM China Time. Such notification was issued on November 24, 2020, while Company received it on November 26th, 2020. To comply with such notification, the Company expects to temporarily stop production at its bromine facilities during the aforesaid period.\n We believe this seasonal closure ordered by the government is part of governmental action plan to curb air pollution，which is worse in the winter, and improve the comprehensive development efficiency of brine resources. The Company does not anticipate the closure will significantly impact the Company’s business. Winter is normally a slow period for bromine production. Winter is also a slow period for crude salt which cannot be processed during the coldest months. Further, in 2020, when Chinese New Year was earlier, the seasonal closure went from December 16, 2019 to February 10, 2020, there is the same number of closure days ordered by these two government notifications. This company does not expect the closure will have a material impact on the 4th quarter 2020. The Company still believes it may reach break-even closely at net income approximately between $0.5 Million to $1.0 Million with revenue approximately between $8.0 Million to $9.0 Million for the fourth quarter, 2020 without considering non-operational factors which may arise for the quarter. The company also does not believe this closure will have a significant impact on 2021 results. The company’s business is always closed for Chinese New Year holidays, which this year begins on February 12, 2021. Once the closure is ended, we intend to resume production. Since Shouguang City is the one of the largest bromine producing regions in China and since all factories in Shouguang City will be closed, we do not expect to lose business for 2021. About Gulf Resources, Inc. Gulf Resources, Inc. operates through three wholly-owned sub...