Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 102

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 102
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 documents of the client were incomplete, which prevented us from continuing the cooperation.

Cost of Net Revenue

    Cost of Net Revenue by Segment 
    % Change

    Nine-Month Period Ended 
    Nine-Month Period Ended 
    of Cost of

    September 30, 2025 
    September 30, 2024 
    Net Revenue
  
    Segment 
      
    % of total 
      
    % of total 

    Bromine 
    $16,216,406  
     96% 
    $10,595,899  
     94% 
     53%
  
    Crude Salt 
     731,779  
     4% 
     707,344  
     6% 
     3%
  
    Chemical Products 
     —  
     —  
     —  
     —  
     — 
  
    Natural Gas 
     —  
     —  
     276  
     0% 
     (100%)
  
    Total 
    $16,948,185  
     100% 
    $11,303,519  
     100% 
     50%

Cost of net revenue reflects mainly the raw materials
consumed-direct salaries and benefits of 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 $16,948,185 for nine-month period ended September 30, 2025,
representing a $5,644,666 (or 50%) increase compared to the nine- month period ended September 30, 2025. The increase in costs was mainly
due to a significant increase in sales volume.

28 

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)
  
    Nine-month period ended September 30, 2024 
     31,506  
     8%
  
    Nine-month period ended September 30, 2025 
     31,506  
     20%
  
    Variance of the nine-month period ended September 30, 2025 and 2024 
     —  
     12%

    (i)
    Utilization ratio