World News: 20:45 GMT Friday 15th March 2019. [Gulf Resources, Inc. via Globe Newswire via SPi World News]
SHOUGUANG, China, March 15, 2019 (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 announced its audited financial results for 2018 and provided management commentary on the future plan of the Company.
In 2018, we had net revenues of $2,594,941, a decline of 98%. We had a write-off of property plant and equipment of $1,397,313. Our loss on demolition of a factory was $18,644,473. Our write-off of prepaid land leases was $4,004,788. We incurred direct labor and factory overhead costs of $21,081,692 as a result of our plant shutdown. Goodwill Impairment Loss is $27,966,050. Our loss from operations was $83,552,531. Our net loss was $69,963,986 (or $1.49* per share). Including foreign exchange tax adjustments of $18,641,006, our compressive loss was $88,604,992.
We generated $17,340,671 from operations. This included collecting all of our accounts receivables of $30,241,680. We purchased property, plant, and equipment of $35,273,307.
As of December 31, 2018, we had $178,998,935 in cash (or $3.82* per share). Our shareholders equity was $293,853,404 (or $6.28 *per share).
During 2018, our major costs included approximately $15.8 million for enhancement works in our protection shells to crude salt fields, approximately $17.8 million to build new extraction wells, a write-off of $18.6 million in the loss on demolition of the three closed factories, impairment loss on the related mineral rights of these three factories of $1.3 million, direct labor and factory overhead costs (including depreciation of plant and machinery) of a total amount of $21.1 million, write-off and impairment losses on property, plant and equipment of $1.4 million, write-off and impairment on prepaid land leases for chemical factories of $4.0 million, repair and maintenance expenses of $2.6 million for the damage by flood from a typhoon, $0.4 million for the write-off of some of prepaid land leases for the closed factories and raw material lost as a result of the damage from the flooding, Goodwill Impairment Loss is $28.0 million.
In the past two years, the Company spent $34,182,329 in rectification of its bromine and crude salt facilities. It expects to incur capital expenditure of approximately $28 million on construction of extraction wells for its existing bromine and crude salt business. It also expects to spend approximately $60 million in total on its new chemical factory.
Mr. Liu Xiaobin, the CEO of Gulf Resources states,
Gulf Resources' management will host a conference call on Monday, March 18, 2019 at 8:30 a.m. Eastern Standard Time to discuss its financial results for the fourth quarter & Fiscal Year 2018 ended December 31, 2018.
Mr. Xiaobin Liu, CEO of Gulf Resources, will be hosting the call. The Company's management team will be available for investor questions following the prepared remarks.
To participate in this live conference call, please dial +1 (877) 275-8968 five to ten minutes prior to the scheduled conference call time. International callers should dial +1 (706) 643-1666. The conference participant pass code is .
The webcasting is also available then, just simply click on the link below:
A replay of the conference call will be available two hours after the call's completion during 03/18/2019 11:00 EST - 04/17/2019 22:59 EST. To access the replay, call +1 (855) 859-2056. International callers should call +1 (404) 537-3406. The conference ID is
Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited (“SCHC”), Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”), and Daying County Haoyuan Chemical Company Limited (“DCHC”). 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. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit
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 the PRC, 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 Cautionary 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.
Globe Newswire: 20:45 GMT Friday 15th March 2019
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