Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 175

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 3
Chunk 175
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(147%) 
    $400,181  
     2% 
     (145%)
  
    Crude Salt 
     1,053,592  
     51% 
     1,403,474  
     47% 
     4%
  
    Chemical Products 
     —  
     —  
     —  
     —  
     — 
  
    Natural Gas 
     60,913  
     100% 
     150,182  
     100% 
     0%
  
    Total Gross (Loss) Profit 
    $(7,085,731) 
     (93%) 
    $1,953,837  
     7% 
     (86%)

Bromine segment

For the year ended December 31, 2024, the gross loss margin
for our bromine segment was 147% compared to the gross profit of 2% in the previous year. This decrease was due to a decrease in bromine
unit price of 27% and a decrease in volume of 72%.

Crude salt segment

For the year
ended December 31, 2024, the gross profit margin for our crude salt segment was 51%, compared to 47% in the preceding year, representing
a 4% increase.

Direct labor and factory
overheads incurred during plant shutdown. On September 1, 2017, the Company received notification from the government of Yangkou
County, Shouguang City of PRC stating that production at all its bromine and crude salt and chemical factories should be halted with immediate
effect in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental
protection requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying
the Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai
Park. As such, direct labor and factory overhead costs (including depreciation of plant and machinery) amounted $8,880,643 and $9,544,675
for fiscal years 2024 and 2023, which were presented as operating expenses instead of in cost of revenue. The decrease in direct labor
and factory overhead costs was primarily attributable to the factories operation status during the fiscal year