Gulf Resources Provides Business Update on Bromine Segment
Gulf Resources (NASDAQ: GURE), a Chinese manufacturer of bromine, reported significant challenges in its bromine segment for 2024, with a net loss of $8.2 million on revenues of $5.5 million. The segment was impacted by two main factors: depressed bromine prices averaging RMB 17,561 (down 27.1% from 2023 and 67.3% from 2022) and intentionally reduced sales volume (down 71.7% year-over-year).
The company's cost per tonne increased by 83.4% due to fixed costs being spread across lower production. However, recent market conditions show improvement, with bromine prices rising from RMB 21,900 in early 2025 to RMB 37,500 in April 2025, representing a 61.9% increase. The company expects profitability to return at current price levels and anticipates potential reopening of Factories #2 and #10.
Gulf Resources (NASDAQ: GURE), un produttore cinese di bromo, ha riportato sfide significative nel suo segmento del bromo per il 2024, con una perdita netta di 8,2 milioni di dollari su ricavi di 5,5 milioni di dollari. Il segmento è stato influenzato da due fattori principali: prezzi del bromo depressi con una media di 17.561 RMB (in calo del 27,1% rispetto al 2023 e del 67,3% rispetto al 2022) e una riduzione intenzionale del volume di vendite (in calo del 71,7% anno su anno).
I costi per tonnellata dell'azienda sono aumentati dell'83,4% a causa della distribuzione dei costi fissi su una produzione inferiore. Tuttavia, le condizioni di mercato recenti mostrano segnali di miglioramento, con i prezzi del bromo che sono saliti da 21.900 RMB all'inizio del 2025 a 37.500 RMB nell'aprile 2025, rappresentando un aumento del 61,9%. L'azienda prevede un ritorno alla redditività ai livelli di prezzo attuali e anticipa la possibile riapertura delle Fabbriche #2 e #10.
Gulf Resources (NASDAQ: GURE), un fabricante chino de bromo, reportó desafíos significativos en su segmento de bromo para 2024, con una pérdida neta de 8,2 millones de dólares sobre ingresos de 5,5 millones de dólares. El segmento se vio afectado por dos factores principales: precios deprimidos del bromo con un promedio de 17,561 RMB (una caída del 27,1% respecto a 2023 y del 67,3% respecto a 2022) y una reducción intencionada en el volumen de ventas (una caída del 71,7% interanual).
El costo por tonelada de la empresa aumentó un 83,4% debido a que los costos fijos se distribuyeron sobre una producción menor. Sin embargo, las condiciones recientes del mercado muestran una mejora, con precios del bromo que subieron de 21,900 RMB a principios de 2025 a 37,500 RMB en abril de 2025, lo que representa un aumento del 61,9%. La empresa espera volver a la rentabilidad con los niveles actuales de precio y anticipa la posible reapertura de las Fábricas #2 y #10.
Gulf Resources (NASDAQ: GURE)는 중국의 브롬 제조업체로, 2024년 브롬 부문에서 820만 달러 순손실을 기록했으며 매출은 550만 달러에 그쳤습니다. 이 부문은 두 가지 주요 요인의 영향을 받았습니다: 2023년 대비 27.1%, 2022년 대비 67.3% 감소한 평균 17,561 RMB의 낮은 브롬 가격과 의도적으로 줄인 판매량(전년 대비 71.7% 감소)입니다.
생산량 감소로 고정비가 분산되어 톤당 비용은 83.4% 증가했습니다. 하지만 최근 시장 상황은 개선되고 있으며, 브롬 가격은 2025년 초 21,900 RMB에서 2025년 4월 37,500 RMB로 61.9% 상승했습니다. 회사는 현재 가격 수준에서 수익성 회복을 기대하며, 2번과 10번 공장의 재가동 가능성도 예상하고 있습니다.
Gulf Resources (NASDAQ: GURE), un fabricant chinois de brome, a annoncé des difficultés importantes dans son segment brome pour 2024, avec une perte nette de 8,2 millions de dollars pour un chiffre d'affaires de 5,5 millions de dollars. Le segment a été impacté par deux facteurs principaux : des prix du brome déprimés à une moyenne de 17 561 RMB (en baisse de 27,1 % par rapport à 2023 et de 67,3 % par rapport à 2022) et une réduction volontaire du volume des ventes (en baisse de 71,7 % en glissement annuel).
Le coût par tonne de l'entreprise a augmenté de 83,4 % en raison de la répartition des coûts fixes sur une production plus faible. Cependant, les conditions récentes du marché montrent une amélioration, avec des prix du brome passant de 21 900 RMB début 2025 à 37 500 RMB en avril 2025, soit une hausse de 61,9 %. L'entreprise prévoit un retour à la rentabilité aux niveaux de prix actuels et anticipe la possible réouverture des usines n°2 et n°10.
Gulf Resources (NASDAQ: GURE), ein chinesischer Hersteller von Brom, meldete für 2024 erhebliche Herausforderungen im Bromsegment mit einem Nettoverlust von 8,2 Millionen US-Dollar bei Einnahmen von 5,5 Millionen US-Dollar. Das Segment wurde von zwei Hauptfaktoren beeinflusst: gedrückte Brompreise mit einem Durchschnitt von 17.561 RMB (ein Rückgang von 27,1 % gegenüber 2023 und 67,3 % gegenüber 2022) und absichtlich reduzierte Verkaufsvolumen (ein Rückgang von 71,7 % im Jahresvergleich).
Die Kosten pro Tonne stiegen um 83,4 %, da die Fixkosten auf eine geringere Produktion verteilt wurden. Die aktuellen Marktbedingungen zeigen jedoch eine Verbesserung, wobei die Brompreise von 21.900 RMB Anfang 2025 auf 37.500 RMB im April 2025 stiegen, was einer Steigerung von 61,9 % entspricht. Das Unternehmen erwartet bei den aktuellen Preisen eine Rückkehr zur Profitabilität und rechnet mit einer möglichen Wiedereröffnung der Fabriken Nr. 2 und Nr. 10.
- Bromine prices increased 61.9% from December 2024 to April 2025
- Current price levels (RMB 37,500) are expected to make segment highly profitable
- Potential approval to reopen Factories #2 and #10
- Reduced industry competition due to government-mandated closures of other bromine facilities
- Net loss of $8.2 million in bromine segment for 2024
- Revenue declined to $5.5 million in 2024 from $26.9 million in 2023
- Sales volume dropped 71.7% year-over-year
- Production costs per tonne increased 83.4%
- Utilization rate fell to 8% in 2024 from 19% in 2023
Insights
From $8.2M losses to expected profitability in 2025 as bromine prices surge 63.5%, enabling Gulf Resources' significant financial turnaround.
Gulf Resources' bromine segment experienced a dramatic financial deterioration in 2024, posting a
The financial data reveals extreme sensitivity to both pricing and volume metrics. During 2021-2022, when bromine traded at RMB 42,644-51,188, the segment generated substantial profits (
The most significant development is the dramatic price recovery in early 2025. Bromine prices have surged from RMB 21,900 at year-end 2024 to RMB 35,800 by mid-April 2025—a
This price recovery represents a potentially transformative inflection point for Gulf Resources, potentially shifting from substantial losses to renewed profitability, though still below the peak historical profits seen in 2021-2022.
The bromine market exhibits classic commodity cyclicality, with prices experiencing extreme volatility—peaking at RMB 69,500 in October 2021 before collapsing
The recent price recovery to RMB 35,800 represents a
Gulf Resources is positioned to capitalize on this price recovery through both improved pricing and potential capacity expansion. The company mentions possible approvals to restart Factories #2 and #10, complemented by investments in flood control infrastructure and new land acquisitions to support increased production capacity.
While the price recovery trend is strongly positive for Gulf Resources' near-term prospects, some caution is warranted as the article notes that "the broader Chinese economy remains under pressure," which could impact demand sustainability. Nevertheless, the current pricing environment at RMB 35,800 is significantly above the apparent breakeven level, supporting management's assertion that the bromine segment will return to profitability in 2025.
SHOUGUANG, China, April 22, 2025 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources,” “we,” or the “Company”), a leading manufacturer of bromine, crude salt, and specialty chemical products in China, today issued a press release providing an update on its bromine segment.
In 2024, our bromine segment reported a net loss of
Due to these unfavorable market conditions, the Company intentionally scaled back bromine sales. As a result, sales volume dropped by
As demonstrated in the table below, the profitability of our bromine segment is highly sensitive to both market prices and production volumes. With fixed costs and overhead remaining relatively constant, a decline in either factor has a significant impact on the segment's financial performance.
| Bromine Economics | |||||||||
| Revenue | Cost/ | Revenue/ | |||||||
| Year | $ | Price （RMB） | Tonnes | Utilization | Cost $ | Tonne（$） | Tonne （$） | P&L （$） | |
| 2021 | 48,871,396 | 42,644 | 7379 | 38 | % | 22,848,348 | 3096.40 | 6623.04 | 26,023,048 |
| 2022 | 58,964,941 | 51,188 | 7817 | 39 | % | 25,087,171 | 3209.31 | 7543.17 | 33,877,770 |
| 2023 | 26,921,462 | 24,072 | 7951 | 19 | % | 26,521,281 | 3335.59 | 3385.92 | 400,181 |
| 2024 | 5,549,815 | 17,561 | 2250 | 8 | % | 13,750,051 | 6111.13 | 2466.58 | -8,200,236 |
As shown in the data, we generated strong profits in 2021 and 2022 when bromine prices were elevated. In 2023, although we increased sales volume, we essentially broke even with the average bromine price at RMB 24,072 per tonne. However, prices declined further in 2024, contributing to the segment’s losses.
During the first two months of 2025, our factories were largely idle due to the seasonal winter shutdown, and bromine prices averaged around RMB 21,900 per tonne. In March, as operations resumed, prices rose to approximately RMB 29,000 per tonne, a level we believe is above breakeven.
In the early weeks of April, bromine prices surged further to RMB 37,500 per tonne. Since the beginning of 2025, bromine prices have increased by
| Bromine | |
| Period | Price （RMB）per tonne |
| 2020-Q3 | 28,017 |
| 2021 Q3 | 49,301 |
| 10/16/21 | 69,500 |
| 2022-Q3 | 51,795 |
| 2023-Q3 | 24,200 |
| 2024-q3 | 17,323 |
| 2024-q4 | 22,400 |
| 12/31/24 | 21,900 |
| 2/29/2025 | 21,900 |
| 3/31/25 | 29,000 |
| 4/15/25 | 37,500 |
| 4/17/2025 | 35,800 |
While it is difficult to predict where bromine prices will trend for the remainder of 2025, at current levels, our bromine segment is expected to be highly profitable and generate strong free cash flow.
Additionally, we are optimistic about receiving approval to reopen Factories #2 and #10. The investments we’ve made in flood control infrastructure and new land acquisitions are also expected to support increased production capacity.
Although the broader Chinese economy remains under pressure, overall bromine production capacity is believed to be lower than in previous years, largely due to government-mandated closures of numerous bromine mines and factories for environmental compliance.
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 the PRC, the risks associated with the COVID-19 pandemic outbreak, 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 beishengrong@vip.163.com
FAQ
What caused Gulf Resources (GURE) bromine segment losses in 2024?
How much have bromine prices increased for GURE in early 2025?
What was GURE's bromine segment utilization rate in 2024?
What is the outlook for GURE's bromine segment in 2025?
