Gulf Resources Provides Update On The Yuxin Chemical Factory; Says "Once The Company Sees Improvement In The Economy, It Can Take Delivery Of The Remaining Equipment And Begin Production."

Author: Benzinga Newsdesk | February 09, 2024 09:36am

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 it would like to update shareholders on the status of the Yuxin Chemical factory.

 

At this time, the company has still not ordered the delivery of the remaining equipment for the factory while it evaluates market opportunities.

• The Chinese economy is currently weak. The weakness is especially significant in the housing market, which is a significant customer of bromine. The Company believes that most Chinese chemical companies in our niche, are currently losing money. While the company believes the economy will eventually improve, it does not believe it should spend more money on a business that is likely to lose money in the short term.
• Once the company sees improvement in the economy, it can take delivery of the remaining equipment and begin production.
• The Company continues to evaluate different segments of the chemical market to see which, if any, offer the best opportunity for profits.
• The Company is especially focusing on market segments possibility, such as pharmaceuticals, that may offer the opportunity to generate capital offshore, so the company may consider to generate funds for the benefit of its shareholders.
• The company is also continuing to monitor events in the Middle East. Since approximately 74% of the world's bromine production takes place in the Dead Sea region between Israel and Jordan, the company is aware that any expansion of the war could materially change world-wide market conditions.
• The company is also continuing to explore other potential business opportunities.
  • The most interesting current opportunity may be in the field of sodium-ion batteries.
  • Two major Chinese auto manufacturers (CATL (Chery) and BYD are already producing cars with sodium-ion batteries.
  • The company has not completed its study on the opportunities for sodium—ion batteries, but it believes this could be a logical extension for its crude salt business.
• Gulf Resources believes it will eventually move ahead with the completion of its chemical factory. However, if the Chinese economy continues to remain weak and if the Company believes this weakness will continue, the company may theoretically utilize its chemical factory for the production of Sodium-Ion batteries.
  
   

The company would like to assure investors that all of the decisions related to the Yuxin Chemical project are being reviewed by the Board of Directors.

The company has posted photos of some of the flood prevention work on its website (http://www.gulfresourcesinc.com).

Posted In: GURE