Gulf Resources(US:GURE)2024-10-11 20:30Company Operations - The company operates through four segments: bromine, crude salt, chemical products, and natural gas[128]. - The company plans to acquire 2,380,000 square meters of crude salt field for a total transfer price of RMB129,472,000, with 80% payable upon execution of the agreement[140]. - The company has entered into four additional acquisition agreements for crude salt fields totaling 2,761,000 square meters, with total transfer prices ranging from RMB20,790,000 to RMB45,785,400[141]. - The company resumed production at its bromine facilities in February 2023 after a temporary closure due to government regulations[135]. - The company is awaiting governmental approval for factories No.2 and No.10, which may require modifications to current wells and aqueducts[135]. - The company plans to start installation of equipment for its new chemical facilities by the end of 2023 or early 2024[137]. - The company has secured land use rights for its new chemical plant in Bohai Marine Fine Chemical Industrial Park, with construction expected to be completed in 2023[137]. - The company is required to obtain project approvals for its natural gas and brine water project in Sichuan Province, which has temporarily halted trial production[138]. Financial Performance - Net revenue for the three-month period ended March 31, 2024, was $1,307,062, a decrease of 86% compared to $9,302,007 for the same period in 2023[152]. - The gross loss for the three-month period ended March 31, 2024, was $812,783, representing 62% of net revenue, compared to a gross profit of $2,532,933, or 27% of net revenue, for the same period in 2023[163]. - The bromine segment's net revenue decreased to $1,146,197, an 86% decline from $8,470,372 in the prior year, driven by a 78% decrease in tonnes sold and a 39% decrease in average selling price[154]. - The crude salt segment reported net revenue of $116,671, down 84% from $748,681, due to an 80% decrease in tonnes sold and a 22% decrease in average selling price[155]. - Loss from operations for the three-month period ended March 31, 2024, was $5,269,419, a significant increase from a loss of $799,558 in the same period in 2023[169]. - The total cost of net revenue for the three-month period ended March 31, 2024, was $2,119,845, a decrease of 69% from $6,769,074 in the same period in 2023[158]. - The bromine segment's gross loss margin was 81% for the three-month period ended March 31, 2024, compared to a gross profit margin of 27% in the same period in 2023[165]. - The equipment lease segment generated net revenue of $44,194, a decrease of 47% from $82,954 in the prior year[157]. - The loss from operations in the chemical products segment was $314,824 for Q1 2024, an improvement from a loss of $417,873 in Q1 2023[173]. - The natural gas segment reported a loss of $27,709 for Q1 2024, compared to an income of $12,685 in Q1 2023[174]. - The net loss for Q1 2024 was $3,992,132, significantly higher than the net loss of $557,747 in Q1 2023[174]. Cash Flow and Financial Position - Cash and cash equivalents decreased to $70,761,796 as of March 31, 2024, down from $72,223,894 as of December 31, 2023[176]. - Cash flow used in operating activities was approximately $1.33 million in Q1 2024, compared to cash provided of approximately $4.83 million in Q1 2023[178]. - Accounts receivable increased by $394,358 to $5,260,054 as of March 31, 2024, with 35% aged 91-120 days[180]. - Inventory increased by $56,898 (or 10%) to $634,127 as of March 31, 2024, with finished goods making up 96% of total inventory[183]. - The company did not engage in any financing activities for the three-month periods ended March 31, 2024, and 2023[183]. - The company does not anticipate paying cash dividends in the foreseeable future and will focus on expanding its segments within the Chinese market[184]. - There are no significant contractual obligations not fully recorded or disclosed in the financial statements as of March 31, 2024[187]. Compliance and Corporate Actions - The company received a notice from Nasdaq regarding non-compliance due to delayed filings, with a deadline to submit a compliance plan by June 17, 2024[143]. - The company completed a 1-for-5 reverse stock split on January 28, 2020, adjusting all shares referenced in the report[139]. - General and administrative expenses decreased by 21% to $717,456 for the three-month period ended March 31, 2024, down from $910,051 in the prior year[169].