Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 43

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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  Bromine                        $                                   (51,259      (3.5      $                             (926,555      (81                            
  Crude Salt                     $                                   61,436       50.0      $                               69,777       60                            
  Chemical Products              $                                   —            —         $                               43,995      100                            
  Natural Gas                    $                                   —            —         $                                    —        —                            
  Total Gross Profit (Loss)      $                                   10,177       0.6       $                             (812,783      (62                            

Bromine segment

For the three-month period ended March 31, 2025,
the gross loss margin for our bromine segment was 3.5%, compared to 81% in the three-month period ended March 31, 2024. The decrease in
gross loss margin was primarily attributable to the higher average selling price of bromine of $3,684 per ton in the three-month period
ended March 31, 2025 compared to $2,541 per ton in the three-month period ended March 31, 2024. Bromine tonnes sales also decreased from
451 tonnes for the three month period ended March 31, 2024 to 402 tonnes for the three month period ended March 31, 2025.

Crude salt segment

For the three-month period ended March 31, 2025, the gross profit margin
for our crude salt segment was 50%, compared to 60% in the same period in 2024, representing a 10% decrease.

Natural gas segment

For the three-month period ended March 31, 2025,
the gross profit margin for our crude salt segment was 0%, compared to 100% in the same period in 2024.

Direct labor and factory overheads incurred
during plant shutdownOn September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang
City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect
in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection
requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the
Company to relocate its two chemical production plants