Gulf Resources Announces the Receipt of Governmental Notification to Temporarily Close Bromine Facilities
Gulf Resources, Inc. (Nasdaq: GURE) announced a temporary closure of its bromine facilities in Shouguang City from December 28, 2021, to February 21, 2022, due to government regulations aimed at reducing air pollution. This seasonal closure aligns with similar past closures and occurs when bromine sales are generally slow, particularly due to the Chinese New Year. The company does not expect significant business impact for the fourth quarter of 2021 or for 2022. Gulf Resources operates through three subsidiaries focused on bromine and chemical product manufacturing.
- Closure aligns with seasonal trends; minimal impact on fourth quarter 2021 revenue.
- Previous seasonal closures show similar duration; no significant business disruption anticipated.
- Bromine facilities will be idle for nearly two months, potentially affecting short-term revenue.
- Winter period typically sees lower sales due to customer closures during Chinese New Year.
SHOUGUANG, China, Dec. 27, 2021 (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 it received an oral notification from the government of Shouguang City on December 23, 2021, pursuant to which all bromine facilities in Shouguang City will be temporarily closed from December 28, 2021 until February 21, 2022 8:00 AM China Time. To comply with such notification, the Company expects to temporarily stop production at its bromine facilities during the aforesaid period.
We believe this seasonal closure ordered by the government is part of governmental action plan to curb air pollution, which becomes worse in the winter, and improve the comprehensive development efficiency of brine resources.
The Company does not anticipate the closure will have a significant impact on the Company’s business for the 4th quarter, for all of year 2021, or for 2022.
Further, in 2020-2021, the prior seasonal closure went from December 25, 2020 until February 19, 2021 8:00 AM China Time, there is the similar number of closure days ordered by these two government notifications.
In general, winter is a slow period for bromine sales. Our customers are closed for Chinese New Year, so they do not place large orders prior to their closure. Further, crude salt is difficult to be processed during the coldest months because of low temperatures.
For the 4th quarter and for year 2021, the closure takes place with only 4 days remaining in the year.
For 2022, the company’s business is always closed for Chinese New Year, which begins on February 1, 2022.
About Gulf Resources, Inc.
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 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 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.
CONTACT: Gulf Resources, Inc.
| Web: | http://www.gulfresourcesinc.com |
| Director of Investor Relations | |
| Helen Xu (Haiyan Xu) | |
| beishengrong@vip.163.com |
FAQ
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