Gulf Resources (GURE) 20 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to the Gulf Resources Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Helen Xu.

You may begin.

Thank you operator. gentlemen, joining evening us and of all ladies for you from morning, and to good those Good China. Conference And of we'd XXXX you all Call. to Gulf like Resources Third to welcome Quarter Xu, Helen the Director. I'm IR

the are any customers, Accordingly, its believes discussed and obligation additional of the date factors of by about today. I'd and under will and circumstances a number SEC. that there taking prove business the new be risk Xb-X contain the created the detailed to such XXXX assurance company's its make of other safe and products into reflect call factors, in events remind Act joining qualified in bromine to of the of call, statements will harbor risks Gulf Gulf no to of limited or reasonable, certain can in the not be assumes and outbreak conditions those expectations meaning with forward-looking CEO statements this including, economic factors Liu, and management PRC, shipments development technology, those filed ability subsidiaries or end are with entirety by existing is changing to and the company, and to the various general with Our like the risk those call. our power forward-looking products, in all call their information Rule correct. oilfields the Resources forward-looking company may the statements assets also this to, within to cautionary and Incorporation revise the associated no today, beyond forward-looking you Securities Rule to acceptance to reflecting Securities the future other this our or statement this update Xiaobin future production pandemic on product business results from are XXX the and listeners the competition Act the the after account capabilities, during subject rules. Actual Mr. statements XXXX new Resources but Exchange of statement and reports from the of the existing and and from market competition control. All bromine expressly production chemicals; differ

addition, the management's as of any future November represents the In today, XXth to the reference performance company's XXXX. of estimates

is accessible entire a those For available website. this at call unable webcast, will accessible the link and also is time, call the replay listen of you this the be to to through The website. at our company's through

So the please release the to start out details. I'd change earlier in out company locate that call to XX-Q and XXXX XX-K a in by our it XXXX issued our like manner. timely regrets file the the for auditors made saying that difficult press

discussion be we I as of to the as few importance with also have cover of We and the of questions the quarters the will that of opening will in willing since its this case, the the turning today like last second a XXXX, active not investors. In of we quarter communicating take briefly regret be Mr. we conference that before to And new hope have company last focus end for the to year. then also quarter start about the between on We we recognize had year. but investors financial issues we to -- summarize the be call call a section. will are third over we a and will quarter first third well Q&A opening I'd and the are fourth Then Liu. of results.

financials our its the So third XX-Q the filed are XX-Q quarter all for filed. XXXX, company in yesterday since the

revenues the last XXXX, was XX, $X.X September ended The the $X.X year. months period a third approximately to of net for X quarter per $X.XX share. loss and compared same were million, million of XX.X% approximately the basic diluted the and was loss decline for So the

the to chemical third to operation approximately salt was and revenue quarter, XX% while $XX,XXX, and bromine crude $X.X approximately operation gas declined from million revenues Bromine declined natural business by our operations $XXX,XXX. $X.X respectively. losses $XXX,XXX $XXX,XXX. The crude million, approximately currently by During was loss were loss salt XX% inactive from and

$XX.X $X.X was approximately of We $XX.X incurred approximately of $XXX,XXX of and of was approximately $X.XX. losses per was approximately follows: $XX,XXX, the The the September the as a XX.X% salt XXXX, to and loss crude approximately For was approximately segment was revenues and Chemicals ended X million decline XXXX. and million compared natural gas the same were $XX.X bromine months loss XX, of disposition $XX.X equipment the worth share from from new was basic million, loss period purchased $XXX,XXX. The million, million equipment. were diluted a net by operations

are million to issues cost million the of project. lead highlight from major crude during XX, our to business, XXXX. end of and at total this the call, for salt purchase like flood was chemical our $XX the quarter position $XXX.X cash and prevention approximately $XX.X last, we'd bromine our economics approximately business bromine Our gas of of natural the businesses, and declined million. There five third The as the assets December of

the Firstly, of and quarter To XXXX better our third from year Bromine the focus results economics Bromine the going let's of understand XXXX. look segment. XXXX, segment, to at on our I'm

the $XX.X bromine. company So during But in XXXX, year in million lost we earned year XXXX, the million. approximately $X

to dropped the but to the which also was produced, due decline XX%. bromine, some by XX%, [indiscernible] lower period, level of which declined the XX%. this During declined was due of revenue of price Much

a be utilization per utilization other lower was good from antiseptics management price to had for XX% this production company dropped to made surged for depreciation, amount production time mining from $X,XXX X%. for pandemic in over decided assets and element, other impact overhead, bromine or the recognized our $X,XXX One this has in level to period, sales we when our the production. Like any relatively declined, When a of doubled hit, allocated the and the limit and the the our available rebound. of more much During of profits. that lower When impact lower oil, bromine, management the prices than of decision, of cost and fixed ton especially mineral bromine for amortization properties. our would protect demand that costs because decline of to level level the our

bromine about more we substantially. increase it prices. third will low to choose the are at time bromine We have have However, been this when of will Since believe prices approaching to increased and our utilization. believe to end extremely of sell quarter, shareholders we [indiscernible] production we the

and for gain that existing more price we Nevertheless of earnings control this of bromine our purchase the the crude crude In bromine the nearby. At likely would the time, from and Second us quarter. company land in issue opportunity was the bromine crude for the June, salt salt in had an on groups land were opportunity field in the of of was salt for production and we bromine. for of to have land price an the this field production additional and to about we secure impact future. of exceptional area aware believe

and cash produce its Our salt crude invested the that the most the be management of this years. and to to was bromine salt to analysis fields team next opportunity company would crude that likely conducted returned an X and acquiring in we enable concluded X

the not timing would short-term that opportunities. negotiations June was wants jeopardize made we also that have and sellers were still not not investors of are our shareholders terms of the to any decision of in convinced investment company if we portion in know understand to want an over with this agreement. We our this the other excellent that the stock we The would

chemical Third issue is about our factory.

we money made While our the money also spend completing to crude the company decided factory. the on postpone chemical on spending field, to decision salt

We have million this chemical invested projected million out about building factory. of new in $XX a $XX

the of capital will industry, produce until returns, in we see losing commit best started not niches, some opportunities ion opportunities, continue opportunities. interesting pursue we like as have companies Further, the in wait one batteries. If are to configuration we to to we in concluded and our to areas sodium bromine better were visibility that currently, new Rather decided of money. factory. these intermediate-term we we we of most zinc, a them However, that than business our or the short to modify would as the

We business. are still Chemical committed to our

with many including are joint chemicals as different we'll We looking improves. ahead move market the at ventures and potential alternatives,

The third money segment. investing -- has gas about gas money this is project. also company all refrained The natural more from in our natural

with working Provincial We the and local have Environmental they authorities are been finalizing Plan.

in natural flood by project, year right and partner. issue become maximize Sichuan have we XXXX, The both the balance our by that may in returns flood more about strategy earnings investments was venture of expensed prevention as that instead were company because neighboring than not this slightly finding During $XX million we capitalized. property. such our rivers prevention. In of expenditures flood period, spent the were is Province bromine the joint last in convinced gas our prevention sheet. These in conducted work part These on impacted and

they two believe million the $XX years, benefit typhoons. the flood the six will spent the repair past we company in after However, us about In in future.

this our #X obtain facilities, produce our only of from flood to company impacted previously bromine As wells. approval our damaged With open completed, the not some to this believe flood to and prevention #XX. we project may have we our reported, did the they ability also help factories

Liu over for let So turn comments. Mr. now me call to the some

our of this at which date [Foreign have renewed very pleased because we economy of did to is to postponed we our difficult, that of delivery the The profitability. with Language] recover. a see China short-term business path been call, weakness, When as not that beginning look Mr. the has to So up stated forward communication it to equipment investors. is but Liu Chemical saw the we our for and we beginning filings, see to are final signs we

and and opportunities more this that field. explore potentially offer in bromine could to are potential returns considering much ion zinc continuing are We partners sodium batteries and for attractive

for now believes decisions more to will the will and since project coming produce this believes We natural strong in enable to considered more as we its also improves, interest is bromine [indiscernible] its understand company investors on venture in the that to our We it prices patience we are the substantially. more investment forward of money of the for capitalize produce the acquiring that economy believed shareholders. making continue, that end active allow company various crude this our appreciate opportunities for in factories. The while joint We best shareholders future. would prevention investment in gas strategies. made The positioned that we company our want have stopped salt Chinese crude and company the well it if open trend also communication returns because years. We land the are spending the believe closed and the quarter, salt will company increased to and our last bromine and to look

open section? So Tom, the we operator, can Q&A for

Instructions] from coming Min the question [ is And ]. morning this Qui [Operator first Jin

some while for seeing is confident, nice hear going things your have I years. then that. and that, ago, to to like of still investing you you X I investment the what when millions profit just revenue hopeful, said than And field, profit is millions reasoning you understanding? like your a would report, and That's that the of behind years ago years I'd have has years. revenue I spend that while a the X us. stay on that is to that to like your substantially the few I'd saying we that that Instead or that my in And and XX investor stated -- seeing going been color here. nothing with an back what down going but question. profit would be on few so the like of to report, said we're and how of you substantially what a dollars keep better and stay changed. did -- new hope please share What very reasoning us kind with then within is more whatever you is in say And you then the you returned or you downhill. And dollars remember light quarterly

your want understanding a be my just about talking Am question a coming that the more more acquisition. the you expects You have in Can why X explanation are about salt is right? company on you good specific X crude This based return question. get your to it I years. to will clear

Yeah.

spend you of You reinforcing typhoon dollars. millions investing, including whatever facility, keep

You I'm said not that it's going while in that XXXX uptrend up. And the still benefit everything anything no while as the can we I this then the mean, of the down, would I one market said -- until invest. That's the that and revenue do hope you to investors. you the do a going in downhill, prevention. I a there's see of better year. businessman, is going is to up. in demand But the is revenue of I revenue was the July for do we China meaning going

business no have because is Is that of investment. for this There hour, one answer a is is about the even for no substantial I do bad. the loss not keep I the my on record investors? thought share calling During I you There to person to number times, on sign answered business way me phone. the the the my a sell the everything XX benefit phone.

about one this So number upset as calling No Can the phone. on record. keep well? this I'm question I you the thing. on very answer

There Language] your phones. [Foreign about visit or sitting not firstly, investor me they phone firstly, for mobile cannot in use then to two who your sure question we of Mr. at people there in if because And points. So a visited make doubt question, there's then visit. the the factory let's protection sites has fixed company, and about can sometimes every because e-mail And the company look time no China, number been company office, an on project. in make I twice you people numbers the appointment it's we the the have normally want But it. And you flood can there. is first, Liu think is about successfully.

to area. site do and which policy, this policy, on government there we mining restoration Firstly, environment government is and company's by the the required due the impacted based that mining a surrounding is company on its mineral the the means because industry the

So the to -- project company the following requirement. do protection has to flood to the government do this

future This project because protection can avoid to is potential this Secondly, flood company project. flood help the about the damage.

and requires because Secondly, the project of crude the environmental about the acquisition issue, bromine crude consolidated consolidation production long-term the -- for salt salt. government

have not salt the halogen for So for crude flow place aqua our company, to currently, ]. do we sufficient water [ to wasted duct

This crude consolidated the the do consolidated must consolidated in of production, enough production company. salt this -- project. fields is growth So for crude we order for to long-term about have salt production the and the

production start this recovery So loss now, for the short also see bromine which company its will the low term market, of we so Chinese Accordingly, bromine, think temporarily a increased volume we the be loss increase controlled to the at as the the economy of price will But the because following profit company company a company production selling bromine temporarily will price moment. of caused intentionally then the as the the at well. and increase. and

coming from is Instructions]. question [Operator Your today next

Your ]. Rauls next question is coming from [ John

two Yes. have questions. I

future The was been it project? you that that has decisions it do ago. having way, every the partner years doing we then that the to actually question? the this made. I going is be wonder to Can contemplating a when when you announced Natural and chemical interaction about to are a of respond virtually natural way. decision doing gas gas first XX about factory is since make expect And

[Foreign Language] Hi John.

So response from here's Liu. the Mr.

investment, when these It a making to see the we or this market the on the do think Chemical management the future segment, when be of at we company products look segment. because that have First depends it the totally decision. will big

see good with market we the human may the even. Chemical face a was company materials and start used with relocation when plan project the this decreased. it if ago, these is the it animals. time, temporarily antibiotics and loss be segment, profit But project, the market, becoming for was for because can started good with project. That continue products dramatically really this stopped future for years some and in future this So to raw And companies

be looking transferred this some now So products industries other to. or is for can company other some

can next the the on depends with product, one. good appropriate is the totally demand market So first future. This which meet and

wanted very state-owned cannot this we factories, team The state-owned in with to Sichuan Second to frequently, the fly with mining and better project. discussion natural and company about with operation teams, the is This in government trading. cooperation when confirm the this to happen. the will low major order now one, efficiency, gas gas to that always is our be state-owned even they but natural get the But current approval management problem situation. had our get on to

to has profitable, margin It's question even at operation. bromine quite with second gross My today's do high prices. Okay. the still

production. And understand get bromine the goes I up. that about reasoning the cash your more taking price today, it might the seems It you're approach. in I is has bankruptcy flirting to losses for So by But now getting understand don't past. much this when you this restriction me with of limiting significant less sales that you're of was company the than production. the from

me Let finish. the seem has which, cash revenue. point, this in do to to been things All impact your invested just not

the hurt revenue to your restricting company long run. that's in a policy going to seems So me the

and Okay. bromine the because gold. limited we company explained our of I About earlier resources question, part thinks such your this think are as first oil

what economy his the as to well maybe your can comments revenue when starts in question, I increase well. our So low second production its on company very production back recovering, the maximize bromine increase, Mr. get it. Xi when About as company's to when This this order price. But selling will economy Chinese better also will recovery. the profit at a increase market future prices come translate controlled the intentionally Chinese Liu in

Okay. Language] [Foreign

this bankrupt company. actions, to is related cash does that the -- not all purpose spend growth any we So John, have because money, [indiscernible] for Mr. the here's long-term all the nonsense Liu's comment of these are

So project, the based look were firstly, we further to for flood have project company's at These rules protection the industry the this do because on China rules, if have we follow mining the China restoration. mineral liabilities. to

For so many company the resources, years, do never bromine but is upgrading this.

government company do. requiring it since to now the this doing So is

action, is foundation a fundamental company the necessary must-do this and a build position, necessary So helped for growth. future strong which

salt which more crude field. assets secure more bromine future can acquisition, salt the crude the Secondly, produce company's with

secured this spended to So all this are growth. two production cash have All on purpose. legally these and actions long-term be company the to

question next [ David from ]. coming Your is Chu

I the so improving or money want to but you no of as ask, you cannot spent the field, in have have to sales. course, And much or foundation generate increased you price infrastructure control the of guarantee well. revenue

does or research any management So to secure revenue? evaluation on the has question. the increased done any That's the or how Board

Okay. on major are control there Hi the because this. project. had segments government the based David, Then the second crude the requirements. one This is one salt two flood acquisition. was is field one to do We first about the

So or one analysis, you if second I mean one? the really the --like, mean, first

any are plan project. how because spend the of if Board they money so going you and on not demand are you sales money to And product the and increased or into generate hole. it a Management then those generate research future order the revenue, do revenue on powering the any did to to have in more much increase

this on analysis did on the how how how we even did the and on which very we in many capability. of influence our after on production based and said, like all with market to a the retained the like And years estimate a we we low will the -- and acquisition before market get view. estimated company's current will on like we it perspective company, acquisition, tons did profit point Yes, produce Language] [Foreign based many based we future conservative conservative X X the analysis situation, we

What management's estimation current the of this sales is quarter's volume?

quarter. Current

sales? fourth the comes up management with quarter, any Current Yeah. quarter, does the estimated

The mean? volume, do you

Volume on revenue.

the announcement fairness to and we will on have Yeah, later all transparency Language] shareholders. for [Foreign

And a David we Chu. from have follow-up

picture the provide cannot have not mean current estimation. sales management management do quarter the a the figure it full and on also XXXX volume? that Does So

for transparency because for guidance, the disclose to all our shareholders, number only conference this can in fairness No. provide but and Hi David, we call. cannot this

Why not?

for our make Yes, announcement on we in an guidance. release later press the will

Okay.

the it shareholders Is possible question. Another for to the or the factory visit plant?

of Yes, course.

have visit and to go arrange can the factories the company directly. the the So shareholders to factories

company actually already. Yes, we have shareholders visited the

that? When is

I think clearly remember my I at shareholder But this cannot months. least as memory, twice. twice, the

no have you idea But when.

year check. me I recently one. Let or is Most this think end last recent of most year was -- beginning the of

time the Okay. to factory? What visit the is best

[Foreign Language]

best visit? time the to What's

Yes, or to e-mail yes. company I'm the just Normally, for respond. Liu me Language] [Foreign Mr. waiting in notify advance.

company the visit [indiscernible]. or can You site

or Another to want question concerning percentage Directors own of the company's the Board the is shareholdings. Management the the what I know shares?

can proxy you recently filed being think most reference you website, SEC to Meeting on General me. I e-mail if company the Annual Holders'

SEC the under mean You filing?

Yes.

just have on follow-up. like number Is have. the based company a It they ownership looks the correct? that a majority that not And they of do shares of

Yes. it who? you like I cannot mean remember clearly

are any the own other shares that of or Are just company the purely just really the owns there company? control and the they ordinary shareholders type that other management shares like control

on I can the reference website. think the SEC you filings

If you I link. you the can e-mail need,

I they other of management the do must control small know. management the that can't why in number percentage pretty of not ownership I'm has shares, Board So indicates some the It It there that sounds that pretty asking. but be own company, we the find That's a or website. the strange. okay? it

owns around I percentage. I XX.X don't Mr. get and you because here, family Yang don't his I see know. as

the So they And I out a of by based be can small majority other on that's the know, percentage, easily and percentage. management outvoted a small that's percentage. shareholders. that kick

some that's if the really curious. to under XX% throw company company, can they control That's that on ownership the shareholders protect Is So just or own control other strange. them shares other them company, it than they help I'm or of why on the line but less light the this?

we and Meeting have well. Annual company of has Board Directors, General The as

I understand. Yeah.

anything address XX% didn't do the all on other shareholders there shareholders issues. and just to company That's and comment sit anything So the ownership this? at other the didn't do minority shareholders on They do issue. pretty would line things. strange a say that Any I the the

We do a question, from another Qui have Jin. Min follow-up

the I and And can others, year they the answer. CFO the major the hours I of indicated of Mr. XXx, said with on majority company's answer They're the That's opinion phone consent all the call as and they own no in people the two, shares, entire were is control And communication to record, the get company. control schedule. my only twice From December the the of I an something That's you how want business CEO, from about translated follow-up anybody's and during in And holding. answer. previous no that Helen -- a sent July, question. owners. to e-mail the company all like which called or request investor the no answer at with of few in not I to company also, with then questions, not e-mail gentleman's the CEO any approximately correctly. I fraction Liu, from can website, XX,XXX minority. with also, from or exactly which my phone a company? XXXX, no with really my past was visit China schedule to as in I

visited checked because did site. just from which don't e-mail the are there on Qui I me you Min, not have e-mail any not my company know shareholders I get send I you. mailbox. when did But

me in to arrange send your advance trip company. can and e-mail You

and end I'd do the for like your to at time, Q&A the now Helen reached remarks. this floor we thank session you participation. closing to the Xu turn of back have We for

call operator, we since today. you. the think Hi can time the up, close Thank is I for

today's call. conclude This you. Thank does conference

have Thank and may your for this You disconnect you time, participation. day. wonderful at a