In This Article:
SHOUGUANG, China, April 22, 2025 (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 providing an update on its bromine segment.
In 2024, our bromine segment reported a net loss of $8,200,236 on revenues of $5,549,815. Two primary factors contributed to this loss. First, bromine prices were significantly depressed. The average price for 2024 was RMB 17,561, representing a decline of 27.1% from 2023 and 67.3% from 2022.
Due to these unfavorable market conditions, the Company intentionally scaled back bromine sales. As a result, sales volume dropped by 71.7% year-over-year. This sharp decline in volume led to a substantial increase in the cost per tonne—up 83.4%—as fixed costs and overhead expenses had to be spread across a much smaller production base.
As demonstrated in the table below, the profitability of our bromine segment is highly sensitive to both market prices and production volumes. With fixed costs and overhead remaining relatively constant, a decline in either factor has a significant impact on the segment's financial performance.
|
|
| Bromine Economics |
|
|
|
|
| ||
|
| Revenue |
|
|
|
| Cost/ | Revenue/ |
| |
| Year | $ | Price （RMB） | Tonnes | Utilization | Cost $ | Tonne（$） | Tonne （$） | P&L （$） | |
| 2021 | 48,871,396 | 42,644 | 7379 | 38 | % | 22,848,348 | 3096.40 | 6623.04 | 26,023,048 |
| 2022 | 58,964,941 | 51,188 | 7817 | 39 | % | 25,087,171 | 3209.31 | 7543.17 | 33,877,770 |
| 2023 | 26,921,462 | 24,072 | 7951 | 19 | % | 26,521,281 | 3335.59 | 3385.92 | 400,181 |
| 2024 | 5,549,815 | 17,561 | 2250 | 8 | % | 13,750,051 | 6111.13 | 2466.58 | -8,200,236 |
As shown in the data, we generated strong profits in 2021 and 2022 when bromine prices were elevated. In 2023, although we increased sales volume, we essentially broke even with the average bromine price at RMB 24,072 per tonne. However, prices declined further in 2024, contributing to the segment’s losses.
During the first two months of 2025, our factories were largely idle due to the seasonal winter shutdown, and bromine prices averaged around RMB 21,900 per tonne. In March, as operations resumed, prices rose to approximately RMB 29,000 per tonne, a level we believe is above breakeven.
In the early weeks of April, bromine prices surged further to RMB 37,500 per tonne. Since the beginning of 2025, bromine prices have increased by 61.9%, according to data from sunsirs.com.
|
| Bromine |
| Period | Price （RMB）per tonne |
| 2020-Q3 | 28,017 |
| 2021 Q3 | 49,301 |
| 10/16/21 | 69,500 |
| 2022-Q3 | 51,795 |
| 2023-Q3 | 24,200 |
| 2024-q3 | 17,323 |
| 2024-q4 | 22,400 |
| 12/31/24 | 21,900 |
| 2/29/2025 | 21,900 |
| 3/31/25 | 29,000 |
| 4/15/25 | 37,500 |
| 4/17/2025 | 35,800 |
While it is difficult to predict where bromine prices will trend for the remainder of 2025, at current levels, our bromine segment is expected to be highly profitable and generate strong free cash flow.