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SHOUGUANG, China, Nov. 20, 2024 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources", “we”, or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China today issued a press release related to the purchase of additional land for salt fields and bromine.
As previously reported by the Company in its SEC filings, in June 2024, we reached agreements to acquire five salt fields covering a total of 5,141,000 square meters for an aggregate purchase price of RMB 280,762,400. The Company paid 80% in cash and agreed to pay the remaining 20% in stock, with the terms and the pricing of the stock still under negotiation.
The Company believes that acquiring these salt fields will allow the Company to increase crude salt production and drill additional bromine wells.
In evaluating these acquisitions, management calculated that the cash-on-cash returns may provide a payback within the next four to five years, which they consider a strong return on Investment.
Mr. Liu Xiaobin, the Chief Executive Officer of Gulf Resources stated, “When we considered these acquisitions earlier this year, we were fully aware of their impact on our balance sheet. However, given our belief that Chinese economy is starting to recover, we saw this as a good investment.”
“We would like to remind investors that we postponed the delivery of equipment for our chemical plant, because we did not anticipate a short-term return. In contrast, we believe the additional salt fields and the ability to drill more wells will provide strong returns over the short, medium, and long terms.”
“We are seeing new uses for bromine and crude salt,” Mr. Liu concluded. “As the economy start to recover, we want to be in a position to maximize our returns.”
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through four wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"), Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents, and materials for human and animal antibiotics. Through SHSI, the Company manufactures and sells crude salt. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com.