Gulf Resources Announces Preliminary Second Quarter 2010 Financial Results

Published Aug 09th, 2010

NEW YORK and SHANDONG, China, Aug. 9 /PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. (Nasdaq: GFRE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced preliminary second quarter 2010 financial results. The reason for delaying the earnings call is that the Company’s Board of Directors requires more time than originally planned to review the 10-Q. However, the Company intends to release full financial results on Form 10-Q on or before August 16, 2010.
   
For the three months ended June 30, 2010, the Company expects to report total unaudited net revenue to range between $43 and $46 million, compared to $29.6 million in the second quarter 2009, and unaudited net income to range between $15 and $16 million, or between $0.44 and $0.47 per diluted share, compared to $9.0 million, or $0.29 per diluted share for the same period last year.  
   
"During the second quarter, demand continued to be robust and the pricing environment for bromine and crude salt was favorable, which enabled us to report strong financial results with solid double-digit growth," said Xiaobin Liu, the Chief Executive Officer of Gulf Resources. "We are confident in our business strategy and continue to seek acquisition targets opportunistically.  We are well positioned to expand our core business into downstream
bromine-based product segments when market conditions are optimal. Overall, we are pleased with the preliminary second quarter results and look forward to reporting our full financial results on or before August 16, 2010." 

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, visit http://www.gulfresourcesinc.cn . 

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, the market price of bromine, 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.

 

SOURCE Gulf Resources, Inc.