Gulf Resources Reports $8.2M Net Loss On Revenues Of ~$5.55M In 2024 Bromine Segment As Depressed Prices And Strategic Sales Reduction Lead To 71.7% Volume Drop And 83.4% Cost Surge, Highlighting Sensitivity To Market Conditions And Fixed Overhead Impact; Says "For The Remainder Of 2025, At Current Levels, Our Bromine Segment Is Expected To Be Highly Profitable And Generate Strong Free Cash Flow"

Gulf Resources, Inc. (NASDAQ:GURE) ("Gulf Resources," "we," or the "Company"), a leading manufacturer of bromine, crude salt, and specialty chemical products in China, today issued a press release providing an update on its bromine segment.

In 2024, our bromine segment reported a net loss of $8,200,236 on revenues of $5,549,815. Two primary factors contributed to this loss. First, bromine prices were significantly depressed. The average price for 2024 was RMB 17,561, representing a decline of 27.1% from 2023 and 67.3% from 2022.

Due to these unfavorable market conditions, the Company intentionally scaled back bromine sales. As a result, sales volume dropped by 71.7% year-over-year. This sharp decline in volume led to a substantial increase in the cost per tonne—up 83.4%—as fixed costs and overhead expenses had to be spread across a much smaller production base.

As demonstrated in the table below, the profitability of our bromine segment is highly sensitive to both market prices and production volumes. With fixed costs and overhead remaining relatively constant, a decline in either factor has a significant impact on the segment's financial performance.