Gulf Resources Releases Letter to Shareholders
Gulf Resources (GURE) has addressed shareholders regarding recent challenges and developments. The company changed auditors from WWC PC to GGF CPA in April 2024, which led to delays in filing requirements. After completing delinquent filings, GURE regained Nasdaq compliance on October 15, 2024. The company reports facing challenges from China's weak economy, particularly in real estate, leading to reduced bromine and crude salt sales. Recent positive developments include a 9.6% increase in bromine prices from RMB 19,886 to RMB 21,800. The company has invested in flood prevention infrastructure and purchased new salt fields, aiming for future growth and increased production capacity.
Gulf Resources (GURE) ha contattato gli azionisti riguardo alle recenti sfide e sviluppi. L'azienda ha cambiato revisori contabili da WWC PC a GGF CPA nell'aprile 2024, il che ha portato a ritardi nel rispetto delle scadenze di deposito. Dopo aver completato i depositi in ritardo, GURE ha riacquistato la conformità con il Nasdaq il 15 ottobre 2024. L'azienda riporta di affrontare difficoltà a causa dell'economia debole della Cina, in particolare nel settore immobiliare, che ha portato a una riduzione delle vendite di bromo e sale grezzo. Tra gli sviluppi positivi recenti si segnala un aumento del 9,6% dei prezzi del bromo, passando da RMB 19.886 a RMB 21.800. L'azienda ha investito in infrastrutture per la prevenzione delle inondazioni e ha acquistato nuovi campi salini, puntando a una crescita futura e ad un aumento della capacità produttiva.
Gulf Resources (GURE) se ha dirigido a los accionistas respecto a los recientes desafíos y desarrollos. La empresa cambió de auditores de WWC PC a GGF CPA en abril de 2024, lo que provocó retrasos en el cumplimiento de los requisitos de presentación. Después de completar las presentaciones atrasadas, GURE recuperó el cumplimiento con Nasdaq el 15 de octubre de 2024. La empresa informa sobre la difícil situación de la economía débil de China, especialmente en el sector inmobiliario, lo que ha llevado a una disminución en las ventas de bromo y sal crudo. Entre los recientes desarrollos favorables se incluye un aumento del 9.6% en los precios del bromo, de RMB 19,886 a RMB 21,800. La compañía ha invertido en infraestructura para la prevención de inundaciones y ha adquirido nuevos campos de sal, con el objetivo de crecer en el futuro y aumentar su capacidad de producción.
걸프 리소스(GURE)는 최근의 도전과 발전에 대해 주주들에게 알렸습니다. 이 회사는 2024년 4월에 WWC PC에서 GGF CPA로 감사인을 변경하여 제출 요건의 지연을 초래했습니다. 체납된 제출 서류를 완료한 후, GURE는 2024년 10월 15일에 나스닥 준수를 회복했습니다. 이 회사는 특히 부동산 부문에서 중국의 약한 경제로 인해 브로민 및 원소금 판매가 감소하는 어려움에 직면하고 있다고 보고했습니다. 최근 긍정적인 발전으로는 브로민 가격이 RMB 19,886에서 RMB 21,800으로 9.6% 증가한 것이 포함됩니다. 이 회사는 홍수 예방 인프라에 투자하고 신규 소금 분야를 구입하여 향후 성장과 생산 능력 증가를 목표로 하고 있습니다.
Gulf Resources (GURE) s'est adressé aux actionnaires concernant les récents défis et développements. L'entreprise a changé d'auditeurs, passant de WWC PC à GGF CPA en avril 2024, ce qui a entraîné des retards dans les exigences de dépôt. Après avoir complété les dépôts en retard, GURE a retrouvé la conformité avec le Nasdaq le 15 octobre 2024. L'entreprise signale rencontrer des défis en raison de la faiblesse de l'économie chinoise, en particulier dans l'immobilier, ce qui a entraîné une réduction des ventes de brome et de sel brut. Parmi les développements récents positifs, on note une augmentation de 9,6 % des prix du brome, passant de RMB 19,886 à RMB 21,800. L'entreprise a investi dans des infrastructures de prévention des inondations et a acheté de nouveaux champs de sel, visant à une croissance future et à une augmentation de la capacité de production.
Gulf Resources (GURE) hat sich an die Aktionäre bezüglich der jüngsten Herausforderungen und Entwicklungen gewandt. Das Unternehmen wechselte im April 2024 von WWC PC zu GGF CPA als Prüfer, was zu Verzögerungen bei den Einreichungsanforderungen führte. Nach Abschluss der überfälligen Einreichungen hat GURE am 15. Oktober 2024 die Nasdaq-Konformität wiedererlangt. Das Unternehmen berichtet von Herausforderungen aufgrund der schwachen Wirtschaft Chinas, insbesondere im Immobiliensektor, was zu einem Rückgang der Verkäufe von Brom und Rohsalz geführt hat. Zu den jüngsten positiven Entwicklungen gehört ein Anstieg der Brompreise um 9,6% von RMB 19.886 auf RMB 21.800. Das Unternehmen hat in Infrastruktur zur Flutprävention investiert und neue Salzfelder erworben, um zukünftiges Wachstum und eine erhöhte Produktionskapazität anzustreben.
- Regained Nasdaq listing compliance on October 15, 2024
- 9.6% increase in bromine prices (RMB 19,886 to RMB 21,800)
- Strategic acquisition of new salt fields for production expansion
- Completed all delinquent SEC filings
- Reduced sales of bromine and crude salt
- Significant expenditures for flood prevention and salt fields
- Impact from weak Chinese real estate sector
- Delayed financial reporting due to auditor change
Insights
The shareholder letter reveals important operational and compliance updates but lacks specific financial metrics. Key developments include: successful resolution of Nasdaq compliance issues, change in auditors and strategic decisions around production volumes. The
The company's strategic investments in flood prevention infrastructure and salt field acquisitions indicate long-term value creation potential, though these capital expenditures may impact short-term liquidity. The emphasis on protecting resource value through production restraint during market weakness demonstrates prudent management, but has likely impacted near-term revenues.
The Chinese real estate sector's weakness remains a significant headwind, though government stimulus measures could provide tailwinds. The promised upcoming conference call should provide important clarity on financial metrics and growth strategy.
SHOUGUANG, China, Oct. 31, 2024 (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 announced its Letter to Shareholders as below.
“Dear Shareholders,
We want to emphasize our commitment to communicating actively with our shareholders. This letter is an integral part of our communication efforts.
On April 16, 2024, we dismissed our auditors, WWC PC, and engaged GGF CPA Limited as our new auditor when we realized our audit would not be completed on time. Transitioning to new auditors at the last minute posed significant challenges, as we had to restart every step of the process. In addition, without a completed audit and the SEC filings, we were unable to communicate financial information to our shareholders.
Accordingly, our management and our auditors focused on completing our Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 10-K”), our Quarterly Report on Form 10-Q for the three months ended March 31, 2024 and our Quarterly Report on Form 10-Q for the six months ended June 30, 2024 (collectively, the “Delinquent Filings”) so that we could meet the filing requirements of the SEC and Nasdaq. We filed our 2023 10-K on September 27,2023 and our Form 10-Qs for the first and second quarter of 2024 on October 11,2024.
Normally, we prepare for conference calls and press releases alongside the filing process. However, in this case, our primary goal was to complete the Delinquent Filings and regain compliance with the Nasdaq rules. On October 15, 2024, we received written notice from the Listing Qualifications Staff of the Nasdaq Stock Market LLC that, as a result of the Company filing the Delinquent Filings with the SEC, the Staff has determined that the Company complies with the Nasdaq Rule and considers the matter to be closed.
This has been a challenging process for both the company and our new auditors. We appreciate their efforts and are grateful that we are now up to date on our filings.
Since we last communicated with investors, much has happened in China, in our industries, and to our company. The Chinese economy has been weak, especially weak in the real estate sector, which has directly impacted our business. We purposely cut back on the sale of bromine and crude salt to protect the long-term value of our resources.
At the same time, we have had major expenditures for flood prevention and for the purchase of land for salt fields. We believe the expenditures for flood prevention will provide good returns in the future as our facilities will be much better protected. We also believe the purchase of the salt fields will provide strong returns and may enable us to open our closed factories and increase our production of both crude salt and bromine.
We are now seeing signs that cause us to be more optimistic. The Chinese government is taking steps to improve the economy, especially in the housing sector. In the past month, from 9/24 to 10/30, the market price of bromine has improved
We are in the process of preparing information for a conference call that will focus on:
- Our current financial position,
- Expenditures for flood prevention,
- Our investment in salt fields and its impact on future sales and earnings,
- Strategies for our Chemical and Natural Gas businesses,
- Our medium and long-term growth strategies.
As soon as this material is completed, we will schedule a conference call with investors. So investors can understand our strategies and our plans for future growth.
We appreciate your patience and look forward to communicating with everyone on a regular basis.”
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 caused Gulf Resources (GURE) to change auditors in 2024?
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