Gulf Resources Provides 2013 Fiscal Year Financial Guidance
SHANDONG, China, Jan. 21, 2013 (GLOBE NEWSWIRE) -- Gulf Resources, Inc.
(Nasdaq:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of
bromine, crude salt and specialty chemical products in China, today announced
financial guidance for fiscal year 2013.
Due to the influence of the European debt crisis and the slowdown in the
domestic economy, the Company has not been able to meet its previously
announced earnings forecast set forth in the Company's 2012 financial
guidance. As the market demand driven by the economy condition continues to
fall, the bromine sales price experienced significant decline over the year,
which adversely affected the Company's operating performance.
"Due to the impact of the decrease in market demand driven by the worsen
economic condition, the average selling price of price had declined to as low
as RMB18,500 per tonne in September, which was significantly lower than the
estimated lower range of RMB23,150 per tonne in the Company's 2012 financial
guidance. Despite the fact that we have implemented a series of cost-saving
and control measures throughout the year to overcome the tough operating
environment, such low bromine price level still resulted in a decrease of
approximately 15% in our performance in fiscal 2012, as compared to the
previously announced earnings forecasts." Mr. Liu, the CEO of the Company
continues, "We expect that in the year 2013, stimulus plans to be issued as a
result of the replacement of the top officials in China's central government
will stimulate the weak economic environment. We believe the average selling
price of bromide in the year 2013 will further increase and drive our business
performance to grow at least 30% year on year basis."
Based on the current business outlook and the anticipated bromine price
levels, the Company forecasts its total revenue and net income to record
approximately $122.8 million and $18.7 million, respectively, in fiscal year
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned subsidiaries, Shouguang
City Haoyuan Chemical Company Limited ("SCHC") and Shouguang Yuxin Chemical
Industry Co., Limited ("SYCI"). 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 & gas field explorations and as papermaking
chemical agents. For more information, visitwww.gulfresourcesinc.com.
The Gulf Resources, Inc. logo is available at
Certain statements in this news release contain forward-looking information
about Gulf Resources and its subsidiaries business and products within the
meaning of Rule 175 under the Securities Act of 1933, as amended and Rule 3b-6
under the Securities Exchange Act of 1934 as amended, and are subject to the
safe harbor created by those rules. The actual results may differ materially
depending on a number of risk factors including, but not limited to, the
general economic and business conditions in the PRC, future product
development and production capabilities, shipments to end customers, market
acceptance of new and existing products, additional competition from existing
and new competitors for bromine and other oilfield and power production
chemicals, changes in technology, the ability to make future bromine asset
purchases, and various other factors beyond its control. All forward-looking
statements are expressly qualified in their entirety by this cautionary
statement and the risks factors detailed in the Company's reports filed with
the Securities and Exchange Commission. Gulf Resources undertakes no duty to
revise or update any of its disclosure.
CONTACT: IR Manager
Gulf Resources, Inc. logo
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