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GR

GULF RESOURCES, INC. (GURE)·Q2 2025 Earnings Summary

Executive Summary

  • Net revenue rose 250% year over year to $8,343,785; gross profit swung positive to $986,655 as operating loss narrowed to $750,686 and net loss improved to $773,777; EPS was $(0.06) versus $(3.09) a year ago .
  • Bromine led the quarter: sales up 313% to $7,676,374 with volume up 152% to 1,972 tonnes; crude salt also improved with revenues +27% to $667,411 and gross profit +132% to $327,096 .
  • Management highlighted bromine price volatility but noted post-quarter price recovery to RMB 29,200/ton on Aug 12 and expressed confidence in near-term profitability and free cash flow from bromine and salt; chemicals and natural gas remain suspended pending better market/regulatory conditions .
  • No formal guidance or Q2 2025 earnings call transcript; Wall Street consensus from S&P Global was unavailable for EPS and revenue, limiting “beat/miss” framing. Operationally, a sharp reduction in six‑month cash outflows (net decrease in cash) to $2,339,081 from $61,856,355 last year was a positive cash trend .

What Went Well and What Went Wrong

What Went Well

  • Bromine volume and pricing drove topline: bromine sales +313% YoY to $7,676,374 on volumes +152% to 1,972 tonnes; segment gross profit turned positive ($659,559) and segment net loss narrowed materially .
  • Crude salt margins improved with cost discipline: cost of revenue fell 11% YoY to $340,315 and gross profit rose 132% to $327,096 despite modest volumes; reflects improved efficiency/price environment .
  • Cash burn moderated: net decrease in cash and equivalents for 6M 2025 was $2,339,081 versus $61,856,355 in 6M 2024, reflecting lower investing outflows and stabilization in operations .
  • Management tone constructive: “We are becoming more optimistic… Demand is increasing as are prices… These conditions auger well for the third quarter and coming quarters” (CEO Liu Xiaobin) .

What Went Wrong

  • Chemicals and natural gas remain inactive; combined segment loss of $388,202 in Q2 2025 as management defers capex absent clear path to profitability or regulatory clarity .
  • Crude salt posted a net loss of $147,489 despite gross profit gains, indicating overhead and opex still weigh on segment profitability .
  • Bromine pricing volatility impacted planning: RMB prices ranged from 37,500 (Apr 14) to 23,100 (May 14) per tonne in Q2; while post‑quarter recovery is positive, volatility remains a key risk .
  • No formal guidance and no Q2 2025 call transcript, limiting external visibility into forward margins/volumes and reducing catalysts from guidance surprises and ListDocuments result showing no transcript for Q2 2025.

Financial Results

Consolidated Trend vs Prior Periods

MetricQ3 2024Q1 2025Q2 2025
Revenue ($USD)$2,242,365 $1,604,447 $8,343,785
Gross Profit ($USD)$(1,829,251) calculated from revenue $2,242,365 and cost $4,071,616 $10,177 $986,655
Gross Margin (%)(81.5%) calculated from $2,242,365 and $4,071,616 0.6% calculated from $1,604,447 and $1,594,270 11.8% calculated from $8,343,785 and $7,357,130
Operating Income ($USD)$(4,581,609) $(4,610,207) $(750,686)
Net Income ($USD)$(3,492,883) $(4,629,500) $(773,777)
EPS (Basic/Diluted)$(0.33) $(0.40) $(0.06)

Q2 YoY Comparison (Q2 2025 vs Q2 2024)

MetricQ2 2024Q2 2025
Revenue ($USD)$2,383,169 $8,343,785
Operating Income ($USD)$(5,146,997) $(750,686)
Net Income ($USD)$(33,097,918) (includes $29,169,008 loss on disposal) $(773,777)
EPS (Basic/Diluted)$(3.09) $(0.06)
Cash Flow (Net decrease in cash, 6M)$(61,856,355) $(2,339,081)

Segment Breakdown – Q2 2025

SegmentRevenue ($USD)VolumeCost of Revenue ($USD)Gross Profit ($USD)Segment Net Income ($USD)
Bromine$7,676,374 1,972 tonnes $7,016,815 $659,559 $(130,381)
Crude Salt$667,411 25,934 tonnes $340,315 $327,096 $(147,489)
Chemicals & Natural Gas————$(388,202)

Segment Q2 YoY Comparatives

SegmentQ2 2024 RevenueQ2 2025 RevenueQ2 2024 VolumeQ2 2025 VolumeQ2 2024 Gross ProfitQ2 2025 Gross Profit
Bromine$1,859,234 $7,676,374 782 tonnes 1,972 tonnes $(2,869,825) $659,559
Crude Salt$523,935 $667,411 24,852 tonnes 25,934 tonnes $140,936 $327,096

KPIs and Operational Context

KPIQ3 2024Q1 2025Q2 2025 / Post-Q2
Bromine price (RMB/tonne)~17,323 Q3 avg 21,900 on 12/31/24 and 2/29/25; 29,000 on 3/31/25 37,500 on 4/14; 23,100 on 5/14; 24,686 at Q2 end; 29,200 on 8/12
Utilization ratio (Bromine)19% in 2023 context; depressed in 2024 11% in Q1 2025 Improving as volumes ramped in Q2 2025 (1,972 tonnes)
Bromine segment P&L sensitivity2024 loss ($8.2M) on low prices/volume Price recovery above breakeven by late March Management expects near‑term profitability at current price levels

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q3 and beyondNone providedNo formal guidance; management expects improving demand/prices in bromine; focused on profits/FCF from bromine and crude salt N/A (qualitative only)
Gross Margin / Operating ProfitFY/Q3 and beyondNone providedAt current bromine prices, segment expected to be “highly profitable and generate strong free cash flow” N/A (qualitative only)
ChemicalsFY/Q3 and beyondN/APostponed completion until clear short‑term path to profitability identified Maintained deferral
Natural GasFY/Q3 and beyondN/AMonitoring provincial planning; exploring JV/regulatory avenues; operations remain inactive Maintained deferral
Capacity/AssetsFY/Q3 and beyondN/ADevelopment on acquired crude salt fields; potential reopening of factories #2 and #10 Positive capacity outlook

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in the document set.

TopicPrevious Mentions (Q3 2024, Q1 2025)Current Period (Q2 2025)Trend
Bromine price dynamicsPrices depressed in 2024; equipment disposition; optimism on recovery Significant volatility in Q2, followed by recovery to RMB 29,200 post‑quarter; demand improving Improving price backdrop post‑quarter
Chemicals strategyDeferred equipment; no short‑term path to profitability; exploring batteries and timing Continues to defer completion; will proceed when profitability is visible Cautious; deferred
Natural gas projectSeeking best strategy; exploring regulatory avenues in Sichuan Inactive pending provincial planning; monitoring JV opportunities Awaiting regulatory clarity
Capacity/infrastructureFlood prevention program; securing land for salt fields Developing acquired salt fields; potential reopening of factories #2 and #10 Capacity expansion path
Supply/demand/macroFewer competitors; RMB weakness; imports expensive; confidence in recovery Demand increasing; competitors have closed; supportive pricing/demand commentary Constructive tone

Management Commentary

  • “We are becoming more optimistic about our business. We see signs of stabilization in the Chinese economy. Many of our competitors in bromine and crude salt have closed their factories. Demand is increasing as are prices. These conditions auger well for the third quarter and coming quarters. We should start to see benefits from the acquisition of the new salt fields.” — CEO Liu Xiaobin .
  • “We continue to believe that we will find opportunities in chemicals and natural gas. However, right now, we are focused on generating profits and free cash flow from our bromine and crude salt segments…” — CEO Liu Xiaobin .
  • “With the weakness in the Chinese RMB, imports of bromine and bromine related products will be more expensive… As the economy stabilizes, we expect our business to improve.” — CEO Liu Xiaobin .
  • “When the timing is right, we will move ahead with the development of our chemical factory… We are in the process of securing additional land for salt fields and bromine wells…” — CEO Liu Xiaobin .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available; no Q&A themes or clarifications to report (company did not file a transcript for Q2 2025 in the document set).

Estimates Context

  • S&P Global consensus was unavailable for Q2 2025 EPS and revenue (no estimates returned). Values retrieved from S&P Global.*
  • Without published consensus, “beat/miss” cannot be determined. We note that reported revenue was $8,343,785 and EPS was $(0.06) for Q2 2025 .

Key Takeaways for Investors

  • Bromine price recovery post‑quarter and sharply higher Q2 volumes point to improving near‑term profitability; management explicitly targets profits and free cash flow from bromine and salt .
  • Operating loss narrowed substantially QoQ and YoY; absent the prior‑year disposal charge, underlying losses have compressed with better pricing and volume .
  • Cash burn is moderating; six‑month net decrease in cash fell to $2.34M vs $61.86M last year, offering improved liquidity trajectory as investing outflows abated .
  • Capacity catalysts: development of newly acquired salt fields and potential reopenings of factories #2 and #10 could support higher bromine/salt output into H2 2025 .
  • Execution risks remain: chemical and natural gas segments are deferred/inactive; crude salt still posted a net loss in Q2 despite gross profit, suggesting overhead and cost absorption remain a watch item .
  • Trading implication: stock narrative likely pivots on bromine pricing momentum and evidence of sustained positive gross/operating margins; watch weekly bromine prices (sunsirs.com) and any approvals to reopen capacity .
  • Medium‑term thesis: if bromine prices sustain above breakeven (late‑March/April levels) and capacity expansions materialize, GURE could transition to cash generative operations while retaining upside optionality in chemicals/natural gas when conditions normalize .