Gulf Resources Announces Change in Independent Auditors

Rhea-AI Summary

Gulf Resources, a leading manufacturer in China, announced a change in independent auditors from WWC to GGF CPA The transition was smooth, with no disagreements or reportable events with the former auditor. GGF is a well-established firm with global presence, and the Company aims to swiftly complete its financial reports for 2023 and Q1 2024.

SHOUGUANG, China, April 18, 2024 (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 that with approval from the audit committee and the board of directors (the “Board”) of the Company, it has changed its independent auditor from WWC, P.C. Certified Public Accountants (“WWC” or the “Former Auditor”) to GGF CPA LIMITED (“GGF” or the “Successor Auditor”) effective April 16, 2024.

WWC’s reports on the Company’s consolidated financial statements for the fiscal years ended December 31, 2022 and 2021 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.

During the two most recent fiscal years ended December 31, 2023 and 2022, and the subsequent interim period through April 16, 2024, there were no disagreements with WWC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of WWC, would have caused WWC to make reference to the subject matter of the disagreements in connection with its reports on the Company’s consolidated financial statements for such years. Also during this time, there were no “reportable events,” as defined in Item 304(a)(1)(v) of Regulation S-K.

GGF is a Guangzhou based accounting and auditing firm with branches in Silicon Valley, Los Angeles, Orange County, New York, Tokyo, Hong Kong, Taipei, Singapore, and three locations in China including Beijing, Guangzhou, and Shenzhen.

The Board would like to express its sincere gratitude to WWC for its professionalism and quality of services rendered to the Company over the past years.

The Company is working closely with GGF and WWC to ensure a seamless transition. The Company and GGF will endeavor to complete the Company’s annual report on Form 10-K for fiscal 2023 and the Company’s quarterly report on Form 10-Q for the first quarter of 2024 as quickly as possible.

About Gulf Resources, Inc.

Gulf Resources, Inc. operates through four wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited (“SCHC”), Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”), Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). 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. Through SHSI, the Company manufactures and sells crude salt. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com.

Forward-Looking Statements

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 China, 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 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.

FAQ

Why did Gulf Resources announce a change in independent auditors?

Gulf Resources announced the change with approval from the audit committee and the board of directors to transition from WWC to GGF CPA effective April 16, 2024.

Who was Gulf Resources' former auditor before the change?

WWC, P.C. Certified Public Accountants (WWC) was Gulf Resources' former auditor before the change.

Who is Gulf Resources' new auditor after the change?

GGF CPA (GGF) is Gulf Resources' new auditor after the change.

Were there any disagreements with the former auditor, WWC, before the change?

There were no disagreements with WWC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure before the change.

What is GGF CPA known for?

GGF CPA is a Guangzhou based accounting and auditing firm with global branches in Silicon Valley, Los Angeles, Orange County, New York, Tokyo, Hong Kong, Taipei, Singapore, Beijing, Guangzhou, and Shenzhen.