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Gulf Resources Corrects its Prior Announcement of the Opening of the Subdivision of Factory #1
Published Apr 13th, 2020
SHOUGUANG, China, Aug. 09, 2019 (GLOBE NEWSWIRE) -- On April 2 and April 11, 2019, Gulf Resources, Inc. (NASDAQ: GURE) ("Gulf Resources" or the "Company"), inadvertently announced that Subdivision of Factory #1 was approved to re-open and begun operation respectively. This announcement should have reflected that Factory #1 was back online and begun production. Factory #1 is one of the primary drivers of operations for Company in the area and has (i) 6,442 acres, compared to 0.79 acres used by the Subdivision of Factory #1, and (ii) annual capacity of 6,681 tonnes, compared to the 3,186 tonnes of annual capacity that the Subdivision of Factory #1 has. The Company is issuing this press release to correct the prior announcement.
The Subdivision of Factory #1 utilizes the resources of the land of Factory #1, however as of today’s date, it has not yet re-opened. The Company believes it will receive approval to begin production at this factory in the relatively near future. Below are details about each factory.
| Property | Factory No. 1 – Haoyuan General Factory |
| Area | 6,442 acres |
| Annual Production | up to 6,681 tonnes |
| Date of Acquisition | February 5, 2007 |
| Land Use Rights Lease Term | Fifty Years |
| Land Use Rights Expiration Date | 2054 (for mining areas only) |
| The number of remaining years to expiration of the of the land lease as of December 31, 2018 | 35.25 Years |
| Prior fees paid for land use rights | RMB8.6 million |
| Annual Rent | RMB186,633 |
| Mining Permit No.: | C3707002009056220022340 |
| Date of Permission: | July 2018, subject to renewal per three years |
| Period of Permission: | Three year |
| Property | Factory No. 1 Subdivision/Branch – State-owned Shouguang Qinshuibo Farm |
| Area | 0.79 acres |
| Annual Production | up to 3,186 tonnes |
| Date of Factory lease | January 1, 2011 |
| Factory Lease Term | Twenty Years |
| Factory lease Expiration Date | 2030 |
| The number of remaining years to expiration of the of the factory lease as of December 31, 2018 | 12.0 Years |
| Prior Fees Paid for Land Use Rights | Not applicable |
| Annual Rent | RMB5,000,000 |
| Mining Permit No.: | Under application |
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"), and Daying County Haoyuan Chemical Company Limited (“DCHC”). 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. 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.
Forward-Looking Statements
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 and Rule 3b-6 under the Securities Exchange Act of 1934, 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 forward-looking statements to reflect events or circumstances after the date of this release.
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu (Haiyan Xu)
beishengrong@vip.163.com