Business
Gulf Resources Updates Investors on Revenue and Earnings Projections from Bromine and Crude Salt Segments for the 3rd quarter and the full year of 2022
SHOUGUANG, China, Aug. 30, 2022 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (NASDAQ:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine,
About this update from Gulf Resources, Inc.
[{"type":"text","content":"SHOUGUANG, China, Aug. 30, 2022 (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 is updating investors as to its estimates for revenues and profits for the 3rd quarter and the full year of 2022 for its Bromine and Crude Salt Segments only based on Non-Generally Accepted Accounting Principle (Non-GAAP). The Company is also providing a preliminary overview of 2023 for these two segments. Before reviewing the projections, the Company advises investors that these estimates were based on its assumptions at this time, also do not include unexpected nonrecurring and non-operational factors, any impairments and write-offs which our auditors may recommend. Market conditions impacting the price and the demand for our products can change at any time. The Chinese economy has softened, which could impact demand and pricing. COVID continues to be a serious problem in China. The Company has no visibility as to when this epidemic will abate. If COVID spreads further, the Chinese government could increase its inspections of our facilities, which also could impact our production. In addition, China has been impacted by serious heatwaves and one of the worst droughts in a century. The drought has caused limited hydropower and the increased demand has caused the cutback in electricity and forced the closing of factories in certain parts of the country. These closures could also impact demand and pricing. The government in Shandong Province could force us to close our operating factories, as it did last winter. In 2023, Chinese New Year falls on January 22, 2023,10 days earlier than it fell in 2022 and 21 days earlier than it fell in 2021. The seasonal closings are (not as) usually about 58 days from the end of Chinese New Year. While the Company does not know if the government intends to have a seasonal closing in 2022-3, its projections for the 4th quarter assume that the government will force our facilities to close in early to mid December 2022. Should these closings occur, 4th quarter 2022 sales and earnings may be impacted negatively, while first quarter 2023 earnings may be impacted positively. Further, because our crude salt business was recently split off from our bromine business, the results of these ...