Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 67

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1B
Chunk 67
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Cost of net revenue
primarily includes costs of the raw materials consumed, the direct salaries and benefits for production staff, electricity costs,
depreciation and amortization of manufacturing plant and machinery, and other manufacturing-related costs. Our cost of net revenue
was $14,746,741 for the year ended December 31, 2024, representing a $13,343,212 (or 48%) decrease compared to the preceding year.
The decrease in costs was mainly due to a significant decrease in sales volume.

Bromine production capacity and utilization of our factories

The table below represents the annual capacity and utilization
ratios for all of our bromine producing properties:

    Annual Production Capacity (in tonnes) 
    Utilization Ratio (i)
  
    Fiscal year 2024 
     31,506  
     7%
  
    Fiscal year 2023 
     31,506  
     25%
  
    Variance of the fiscal year 2024 and 2023 
     0  
     (18%)

(i)Utilization ratio is calculated based on the annualized actual production volume in tonnes for the periods
divided by the annual production capacity in tonnes.

Bromine segment

For the year ended December 31, 2024, the cost of net revenue
for the bromine segment was $13,750,051. For the year ended December 31, 2023, the cost of net revenue for the bromine segment was $26,521,281.

Crude salt segment

For the year ended December 31, 2024, the cost
of net revenue for the crude salt segment was $996,396. The cost of net revenue for our crude salt segment for the year ended
December 31, 2023 was $1,567,993.

Chemical products segment

Cost of net revenue for our chemical products segment for
the fiscal year 2024 and 2023 was $0.

Natural Gas segment

Cost of net revenue for our natural gas segment for the
year ended December 31, 2024 and 2023 was $294 and $679.

40 

Gross (Loss) Profit. Gross (loss) was $7,085,731or
93%, of net revenue for the year ended December 31, 2024, compared to $1,953,837, or 7%, of net revenue for the same period in 2023.

    Gross