Fri, Sep 27, 8:22 PM (84 days ago)
Gulf Resources Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2023, with net revenue dropping 55% to $30,044,000 from $66,094,000 in 2022. The company incurred a net loss of $61,795,279, compared to a profit of $10,059,450 the previous year. This downturn was attributed to decreased sales and a 55% drop in average selling prices for bromine, which still accounted for 89.6% of total revenue. Operating expenses increased, particularly due to $46,510,856 spent on a flood prevention project. The company's cash and cash equivalents decreased to $72,223,894 from $108,226,214, with cash flow from operations showing a negative balance of $32,751,851. The company holds substantial cash reserves but does not anticipate paying dividends in the near future. Strategically, Gulf Resources continues to focus on its bromine and crude salt production while navigating regulatory challenges in China, including environmental compliance and potential impacts from government oversight. The company plans to finalize acquisitions of crude salt fields and is working to regain compliance with NASDAQ listing requirements after recent filing delays.