Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 71

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 71
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     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 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 nine-month period ended September 30, 2025 and 2024
the cost of net revenue for the bromine segment was $16,216,406 and $10,595,899, respectively. The increase in costs is mainly due to
the increase in sales volume.

Crude salt segment

For the nine-month period ended
September 30, 2025 and 2024 the cost of net revenue for the crude salt segment was $731,779 and $707,344, respectively. The increase in
costs is mainly due to the