Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 461

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7
Chunk 461
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,
the net revenue for the natural gas segment was $61,207 and $150,861. The 59.4% decrease in revenue was primarily
due to the expiration of contracts.

Cost of Net Revenue

    Cost of Net Revenue by Segment 
    % Change

    Year Ended 
    Year Ended 
    of Cost of

    December 31, 2024 
    December 31, 2023 
    Net Revenue
  
    Segment 
    % of total 
    % of total 

    Bromine 
    $13,750,051  
     93% 
    $26,521,281  
     94% 
     (48%)
  
    Crude Salt 
     996,396  
     7% 
     1,567,993  
     6% 
     (37%)
  
    Chemical Products 
     —  
     —  
     —  
     —  
     — 
  
    Natural Gas 
     294  
     —  
     679  
     —  
     (57%)
  
    Total 
    $14,746,741  
     100% 
    $28,089,953  
     100% 
     (48%)

Cost of net revenue
primarily includes costs of the raw materials consumed, the direct salaries and benefits for production staff, electricity costs,
depreciation and amortization of manufacturing plant and machinery, and other manufacturing-related costs. Our cost of net revenue
was $14,746,741 for the year ended December 31, 2024, representing a $13,343,212 (or 48%) decrease compared to the preceding year.
The decrease in costs was mainly due to a significant decrease in sales volume.

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)
  
    Fiscal year 2024 
     31,506  
     7%
  
    Fiscal year 2023 
     31,506  
     25%
  
    Variance of the fiscal year 2024 and 2023 
     0  
     (18%)

(i)Utilization ratio is calculated based on the annualized actual production volume in tonnes