• Bromine: A versatile chemical element used in fire retardants, oil and gas drilling, pharmaceuticals, and water treatment.
• Crude Salt: Industrial-grade salt primarily utilized in chemical production and other industrial applications.
• Chemical Products: A range of specialty chemicals derived from bromine and crude salt, serving various industrial sectors.

Major Customers of Gulf Resources (GURE)

Gulf Resources (GURE) primarily sells its products to other companies (business-to-business). Its major customers, as identified from its public filings (such as its 10-K report), include:

• For Crude Salt Products:
  • Sichuan Tianhe Chemical Co., Ltd. (Private company)
  • Shandong Tianyi Chemical Co., Ltd. (Private company)
• For Bromine Products: Customers are manufacturers in industries such as flame retardants, oil drilling chemicals, pharmaceuticals, and agricultural chemicals.
• For Refined Chemical Products: Customers are manufacturers of various industrial chemicals.
• For Medical Chemical Intermediates: Customers are pharmaceutical companies.
• For Agricultural Products (Asparagus): Customers are processors and distributors.

Xiaobin Liu, Chief Executive Officer and Chairman of the Board

Mr. Liu was appointed as Chief Executive Officer and Director of Gulf Resources, Inc. on March 10, 2009, having joined the company as Vice President in December 2007. He has served as Chairman of Chengdu Philosopher's Stone Culture Media Co. LTD since August 2018 and was Chairman of China Shouguang Vegetable Industry Group (Cayman) Inc. from 2011 to 2017, where he currently serves as a director. His prior experience includes serving as project manager at Shenzhen Guangshen Accounting Firm, department manager at Hainan Zhongou Accounting Firm, CFO of Dasheng Real Estate Development Company, CFO of Shenzhen Securities Department of Hainan Saige International Trust Investment Company, and financial manager of Hainan Wanquanyuan Hot Spring Tourism Development Co., Ltd. During his time at Hainan Wanquanyuan Hot Spring Tourism Development Co., Ltd, he also held CFO positions for several of its subsidiaries, including Qionghai City Guantang Hotspring Leisure Center and Qionghai City Wanquanhe Agricultural Development Co., Ltd. Earlier in his career, Mr. Liu worked in the financial departments of Hainan Jinyuan Industrial Co., Ltd and Shanxi Aircraft Manufacturing Company. He holds a master's degree from the Economic and Management School at Hong Kong City University.

Min Li, Chief Financial Officer

Mr. Li has served as the Chief Financial Officer of Gulf Resources, Inc. since December 2006. He also holds the position of Chief Financial Officer for Shouguang City Haoyuan Chemical Company Limited. Before these roles, he was the Manager of Financial and Asset Management Department for Shouguang City Yuxin Chemical Company Limited from 2004 to 2006. From 2000 to 2004, Mr. Li managed the Accounting Department for the Yang Kou Branch of the China Construction Bank, and previously worked at the China Construction Bank Shandong branch. He earned a bachelor's degree in accounting from Weifang College.

Naihui Miao, Secretary, Chief Operating Officer and Director

Mr. Miao has served as Director, Secretary, and Vice President of Gulf Resources, Inc. since January 2006, where he oversees sales, human resources, and business management. Concurrently, he has been Vice President of Shouguang City Haoyuan Chemical Company Limited since January 2006. From 2005 to 2006, he was Vice President and deputy general manager of Shouguang City Yuxin Chemical Company Limited. His extensive career also includes serving as a Manager and then Vice President of Shouguang City Commercial Trading Center Company Limited from 1991 to 2005, and as a director there since 1986. He has also served as Supervisor of Chengdu Philosopher's Stone Culture Media Co. LTD since August 2018.

Helen Xu, IR Director

Ms. Xu serves as the IR Director for Gulf Resources, Inc.

Ethan Chuang, Vice President of Corporate Development

Mr. Chuang holds the title of Vice President of Corporate Development at Gulf Resources, Inc.

The key risks to Gulf Resources (GURE) include significant financial losses and operational challenges, regulatory and compliance issues leading to potential delisting, and the complex and evolving Chinese regulatory environment.

1. Significant Financial Losses and Operational Challenges

Gulf Resources is facing substantial financial difficulties, evidenced by dramatic net losses and declining revenues. The company reported a net loss of over $35 million in the third quarter of 2025, a significant increase from the previous year, primarily due to impairment of long-lived assets and losses from asset disposals. The bromine segment, a key part of its business, has experienced a sharp drop in sales, contributing to overall gross and operating losses. The company exhibits heavily negative profitability ratios, including an EBIT margin of -261.1% and a profit margin of -314.79%, signaling considerable operational inefficiencies and a precarious market position. Furthermore, liquidity challenges are apparent, with decreasing cash reserves and increasing difficulties in collecting accounts receivable.

2. Regulatory and Compliance Issues (including Nasdaq Delisting Risk)

Despite recently regaining compliance, Gulf Resources has a history of failing to file timely reports with the SEC, which previously led to a Nasdaq non-compliance notice and a risk of delisting. This pattern raises concerns about the company's internal controls and transparency. The lack of timely financial information also hinders an accurate assessment of the company's performance and valuation. Beyond past issues, the Holding Foreign Companies Accountable Act (HFCAA) poses an ongoing delisting risk for Chinese companies like GURE if U.S. regulators are unable to inspect their accounting books.

3. Evolving Chinese Regulatory Environment and Associated Costs

Gulf Resources operates within a dynamic Chinese regulatory landscape that can significantly impact its business. Stricter safety and environmental regulations have previously forced factory shutdowns and relocations, leading to substantial costs, with the chemical products division incurring over $45 million in relocation expenses as of late 2024. Additionally, Chinese regulations on foreign currency may restrict the company's ability to effectively utilize its revenues. The government has also mandated separate registration for bromine and crude salt businesses, and issues with local government, such as requirements for joint ventures in new resource exploration, can create operational hurdles.

The accelerating and increasingly stringent environmental protection and decarbonization policies in China pose a significant emerging threat, particularly to Gulf Resources' coal chemical segment. These policies, driven by China's national carbon neutrality and peak emissions goals, are leading to heightened regulatory scrutiny, increased compliance costs, stricter emissions standards, and potential limitations on production capacity or expansion for coal-intensive industries. This trend could favor alternative, cleaner production methods or feedstocks in the chemical sector, thereby challenging the long-term competitiveness and viability of coal-based chemical operations.

Gulf Resources (GURE) operates primarily in three main business segments: Bromine Production, Crude Salt Production, and Specialty Chemicals.

Bromine

The global bromine market was valued at approximately USD 3.63 billion in 2024 and is projected to reach USD 5.40 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 4.04% during 2025-2033. Other estimates place the global market value at USD 3.97 billion in 2024, anticipated to reach around USD 6.17 billion by 2034, with a CAGR of 4.51% over the forecast period 2025 to 2034. Asia-Pacific is a dominant region in the bromine market, holding a significant share of over 37% in 2024, with China being a major contributor to demand.

Crude Salt

The global salt market revenue is estimated to be US$ 24.2 billion in 2024 and is projected to climb to US$ 35.5 billion by the end of 2034, expanding at a CAGR of 3.9% over the next ten years. The global crude salt market specifically is projected to reach approximately USD 5.8 billion by 2025, growing at a CAGR of around 3.5% from 2025-2033.

In China, a key region for Gulf Resources, the salt market is forecast to reach a consumption volume of 68 million tons and a market value of $5.5 billion by 2035, representing CAGRs of +0.2% and +0.3% respectively. Asia Pacific, led by China, held the largest share of the global salt market in 2024, with a regional market value of USD 12.01 billion, and the market value in China alone is expected to be USD 6.39 billion in 2025.

Specialty Chemicals

Gulf Resources manufactures a range of specialty chemical products, including environmentally friendly additives and intermediates used in the production of pesticides, pharmaceuticals, and other industrial applications. These also encompass chemical products for oil and gas field exploration, papermaking chemical agents, inorganic chemicals, and materials for human and animal antibiotics. Due to the broad and diverse nature of these specific offerings within the general "specialty chemicals" category, it is not possible to provide a precise addressable market size for this segment based on the available information.

Gulf Resources (GURE) anticipates several key drivers for future revenue growth over the next two to three years, primarily stemming from a rebound in its core bromine business, expansion in crude salt production, and potential advancements in its specialty chemicals and natural gas segments.

1. Bromine Price Recovery and Increased Production Volume: The company expects significant revenue growth from the recovery of bromine prices, which surged in early 2025. Management has indicated that at current price levels, the bromine segment is projected to be highly profitable and generate strong free cash flow. Gulf Resources is also optimistic about receiving government approval to reopen Factories #2 and #10, and has invested in flood control infrastructure and new land acquisitions to support increased production capacity in this segment. In Q2 2025, bromine sales increased by 313% year-over-year, with volume up 152%.
2. Expansion of Crude Salt Production: Gulf Resources completed the acquisition of additional salt fields in Shandong province in February 2025. These acquisitions are expected to enable the company to increase crude salt production and drill more bromine wells, which management believes will yield strong returns over the short, medium, and long terms. Crude salt is a byproduct of bromine mining, so an increase in bromine production naturally contributes to higher crude salt output.
3. Development of New Specialty Chemical Products and Operationalization of New Factory: Gulf Resources is in the process of completing a new chemical factory. The company is actively exploring opportunities within the chemical sector, including new applications such as sodium-ion batteries. While the reordering of remaining equipment for the chemical factory is contingent on identifying specific opportunities with a clear path to profitability, the completion and full operation of this factory, combined with the introduction of new specialty chemical products, could be a significant revenue driver.
4. Advancement of Natural Gas and Brine Resource Development: The company continues to engage in discussions with local governments in Daying Province, Sichuan Province, regarding the development of its substantial natural gas and brine resources. Gulf Resources has identified significant gas resources in Tianbao town through its exploration efforts and is actively seeking joint-venture partners to maximize returns from this segment. The progression of these projects, pending government approvals and successful partnerships, could open a new revenue stream.

Share Issuance

• Shares outstanding increased from 10,726,924 as of September 27, 2024, to 13,346,618 in the first quarter of 2025.
• The company announced a reverse stock split on October 22, 2025.

Outbound Investments

• Gulf Resources announced the acquisition of salt fields on November 20, 2024.

Capital Expenditures

• Capital expenditures were approximately $249.59 million in 2020.
• In 2023, capital expenditures were approximately $96.63 million, with about $15.2 million in the nine months ended September 30, 2023, primarily for a floor protection program.
• For 2024, capital expenditures were approximately $71.84 million, with a focus on flood prevention and the acquisition of additional crude salt fields.