Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 96

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 96
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 segment

For the six-month period ended June 30, 2025 and 2024, the net revenue
for the natural gas production was $0 and $44,194, respectively. The 100% decrease in revenue was primarily due to the expiration of contracts.

Cost of Net Revenue

    Cost of Net Revenue by Segment 
    % Change

    Six-Month Period Ended 
    Six-Month Period Ended 
    of Cost of

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

    Bromine 
    $8,549,943  
     95.5% 
    $6,801,811  
     94.0% 
     26%
  
    Crude Salt 
     401,457  
     4.5% 
     429,893  
     5.9% 
     (7%)
  
    Chemical Products 
     —  
     —  
     —  
     —  
     — 
  
    Natural Gas 
     —  
     —  
     199  
     0.1% 
     — 
  
    Total 
    $8,951,400  
     100% 
    $7,231,903  
     100% 
     24%

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 $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, 202