Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 67

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 67
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 other manufacturing costs. Our cost of net revenue was $8,951,400 for six-month period ended June 30, 2025, representing
a $1,719,497 (or 24%) increase compared to the six-month period ended June 30, 2024. The increase in costs was mainly due to a significant
increase in sales volume.

35 

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)
  
    Six-month period ended June 30, 2024 
     31,506  
    4%
  
    Six-month period ended June 30, 2025 
     31,506  
    8%
  
    Variance of the six-month period ended June 30, 2025 and 2024 
     —  
    4%

    (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 six-month period ended June 30, 2025,
the cost of net revenue for the bromine segment was $8,549,943.

For the six-month period ended June 30, 2024,
the cost of net revenue for the bromine segment was $6,801,811.

Crude salt segment

For the six-month period ended June 30, 2025,
the cost of net revenue for the crude salt segment was $401,457.

For the six-month period ended June 30, 2024,
the cost of net revenue for the crude salt segment was $429,893.

Chemical products segment

Cost of net revenue for our chemical products
segment for the six-month period ended June 30, 2025 and 2024 was $0.

Natural gas segment

Cost of net revenue for our natural gas segment
for the six-month period ended June 30, 2025 and 2024 was $0 and $199, respectively.

Gross Profit (Loss). Gross profit
was $996,832, or 10%, of net revenue for six-month period ended June 30, 2025 compared to a loss of $3,541,672, or 96%, of net revenue
for the same period in 2024.