Gulf Resources Provides Updates On Its Business Operation

Rhea-AI Summary

Gulf Resources, Inc. (Nasdaq: GURE) has announced the reopening of its bromine and crude salt production facilities in Shouguang City after a temporary closure mandated by local government from December 10, 2022, to February 1, 2023, to address winter air pollution. The company confirmed that it took three to four days post-reopening to test equipment before resuming production. Gulf Resources is among China's largest bromine producers, with operations spanning multiple subsidiaries that specialize in chemicals and natural resource development.

Positive

• The company has resumed production after a government-mandated closure, signaling operational stability.
• As one of the largest bromine producers in China, the company is well-positioned in a niche market.

Negative

• Temporary closure from December 10, 2022, to February 1, 2023, could impact short-term revenue.
• Dependence on government regulations for operations poses risks to continuous production.

SHOUGUANG, China, Feb. 09, 2023 (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 provides updates on its business operation.

On December 9, 2022, Gulf Resources announced that its all bromine facilities in Shouguang City will be temporarily closed from December 10, 2022 until February 1, 2023 8:00 AM China Time following the notification from the government of Shouguang City .  To comply with such notification, the Company had temporarily stopped production at its bromine facilities in Shouguang City during the aforesaid period.

The Company believed the seasonal closure ordered by the government was part of governmental action plan to curb air pollution in the winter and improve the comprehensive development efficiency of brine resources. The company reopened the operating bromine and crude salt factories as planned recently.

After the reopening, it took three to four days for the Company to test the equipment and then began production.

About Gulf Resources, Inc.

Gulf Resources, Inc. operates through four wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), ShouguangYuxin 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 sell 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.

FAQ

What is the recent news about Gulf Resources (GURE)?

Gulf Resources has reopened its bromine and crude salt facilities after a government-mandated closure in Shouguang City.

When did Gulf Resources (GURE) temporarily close its operations?

The operations were temporarily closed from December 10, 2022, to February 1, 2023.

How does Gulf Resources (GURE) contribute to the chemical industry?

Gulf Resources is one of the largest bromine producers in China, manufacturing various chemical products used in industry and agriculture.