Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 95

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 95
---
 
  
    Natural Gas 
     —  
     —  
     77  
     —  
     (100%)
  
    Total 
    $7,996,785  
     100% 
    $4,071,616  
     100% 
     96%

Cost of net revenue reflects
mainly the raw materials consumed and the 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 $7,996,785 for the three-month
period ended September 30, 2025, an increase of $3,925,169 (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, 202