Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 64

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 64
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169 (or 96%) as compared to the same period in 2024 due to the increase of net
revenue by 303% for the three-month period ended September 30, 2025 as compared to the same period in 2024.

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)
  
    Three-month period ended September 30, 2024 
     31,506  
     8%
  
    Three-month period ended September 30, 2025 
     31,506  
     28%
  
    Variance of the three-month period ended September 30, 2025 and 2024 
     —  
     20%

(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 three -month period ended September 30, 2025 and
2024 the cost of net revenue for the bromine segment was $7,666,463 and $3,794,088, respectively. The increase in costs is mainly due
to the increase in sales volume.

Crude salt segment

For the three -month period
ended September 30, 2025 and 2024 the cost of net revenue for the crude salt segment was $330,322 and $277,451, respectively. The increase
in costs is mainly due to the increase in sales volume.

Chemical products segment

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

Natural gas segment

Cost of net revenue for
                                                                                              our natural gas segment for the three-month period ended September 30, 2025 and 2024 was $0 and 77, 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.

24 

Gross Profit (Loss). Gross profit
was $1,047,796 or12%, of net revenue for three-month period ended September 30, 2025, representing an increase of $2,877,047, as compared
to a gross loss of $1,829,