Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 62

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 62
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% from the second quarter of 2024. 

32 

Crude salt segment

For the three-month period ended June 30, 2025,
the gross profit margin for our crude salt segment was 49%.

For the three-month period ended June 30, 2024,
the gross profit margin for our crude salt segment was 27%.

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 (including depreciation of plant and machinery) in the amount of $727,774 and
$1,714,503 incurred for the three-month periods ended June 30, 2025 and 2024, respectively, for the factories that have not resumed production
were presented as part of the operating expenses.

General and Administrative Expenses
General and administrative expenses were $994,765 for the three-month period ended June 30, 2025, representing an increase of $304,793
as compared to $689,972 for the same period in 2024.  

Loss from Operations Loss from operations
was $750,686 for the three-month period ended June 30, 2025, compared to loss from operations of $5,146,997 in the same period in 2024.

    Income (loss) from Operations by Segment

    Three-Month Period Ended June 30, 2025 
    Three-Month Period Ended June 30, 2024
  
    Segment: 
      
    % of total 
      
    % of total
  
    Bromine 
    $(130,381) 
     20% 
    $(4,662,586) 
     94%
  
    Crude Salt 
     (147,489) 
     22% 
     130,024