Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 104

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 104
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    $2,044,628  
     10.8% 
    $(5,370,923) 
     (91%) 
     (101.8%)

Bromine segment

For the nine-month period ended September 30,
2025, the gross profit margin for our bromine segment was 6%, compared to gross loss margin of 132% in the nine-month period ended September
30, 2024. The increase in gross loss margin was primarily attributable to the higher average selling price of bromine of $3,751 per ton
in the nine-month period ended September 30, 2025 compared to $2,423 per ton in the nine-month period ended September 30, 2024.

29 

Crude salt segment

For the nine-month period ended September 30, 2025,
the gross profit margin for our crude salt segment was 59%.

For the nine-month period ended September 30, 2024 the gross profit margin
for our crude salt segment was 45%.

Chemical products segment

For the nine-month period ended September 30,
2025, the gross profit margin for our chemical segment was 0% due to the closure of our chemical products plant. As a result of the closure,
there were no chemical products for sale for the nine-month period ended September 30, 2025.

Natural gas segment

Gross profit for our
natural gas segment for the nine-month period ended September 30, 2025 and 2024 was $0 and $60,931 respectively. The decrease in
income was due to the fact that the relevant documents of the client were incomplete, which prevented us from continuing the
cooperation.

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 that stated 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 a result, direct labor and factory overhead costs (