Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 42

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 staff engaged in the production process, electricity, depreciation and amortization of manufacturing
plant and machinery and other manufacturing costs. Our cost of net revenue was $1,594,270 for the three-month period ended March
31, 2025, representing a $525,575 (or 25%) decrease compared to the preceding year.

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  
  Three-month period ended March 31, 2024                                31,506                                               17  
  Three-month period ended March 31, 2025                                31,506                                               11  
  Variance of the three-month periods ended March 31, 2025 and 2024      —                                                    (6  

(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

Cost of net revenue for our bromine segment for
the three-month period ended March 31, 2025 and 2024 was $1,533,128 and $2,072,752.

Crude salt segment

Cost of net revenue for our crude salt segment
for the three-month period ended March 31, 2025 and 2024 was $61,142 and $46,894.

Chemical products segment

Cost of net revenue for our chemical products
segment for the three-month period ended March 31, 2025 and 2024 was $0.

Natural gas segment

Cost of net revenue for our natural gas segment
for the three-month period ended March 31, 2025 and 2024 was $0 and $199.

Gross Profit (Loss)Gross profit
was $10,177, or 0.6%, of net revenue for three-month period ended March 31, 2025 compared to loss $812,783, or 62% of net revenue for
three-month period ended March 31, 2024.

                                 Gross Profit (Loss) by Segment                                                                                  % Point Change        
                                 Three-Month Period Ended                                   Three-Month Period Ended                             of Gross              
                                 March 31, 2025                                             March 31, 2024                                       Profit (Loss) Margin  
  Segment                                                                                                                                                              
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