Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 60

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 60
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     —  
     —  
     —  
     — 
  
    Natural Gas 
     —  
     —  
     —  
     —  
     — 
  
    Total 
    $7,357,130  
     100% 
    $5,112,058  
     100% 
     44%

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 $7,357,130 for the
three-month period ended June 30, 2025, an increase of $2,245,072 (or 44%) as compared to the same period in 2024 due to the increase
of net revenue by 250% for the three-month period ended June 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 June 30, 2024

    31,506

    9
    %
  
    Three-month period ended June 30, 2025

    31,506

    26
    %
  
    Variance of the three-month period ended June 30, 2025 and 2024

    —

    17
    %

(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 June 30, 2025,
the cost of net revenue for the bromine segment was $7,016,815.

For the three-month period ended June 30, 2024,
the cost of net revenue for the bromine segment was $4,729,059.

Crude salt segment

For the three-month period ended June 30, 2025 the cost of net revenue
for the crude salt segment was $340,315.

For the three-month period ended June 30, 2024
the cost of net revenue for the crude salt segment was $382,999.

Chem