Gulf Resources Inc. Q1 2023 Earnings Call
Speaker 1: Good morning everyone and welcome to Gulf Resources First Quarter 2023 Earnings Conference Call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please use the link in the description. For more information on Gulf Resources First Quarter, please visit www.gulf
Speaker 1: please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Helen Chu, Director of Investor Relations. Helen, over to you.
Speaker 2: Thank you, Jenny. Good morning, ladies and gentlemen, and good evening to all those of you for joining us from China. And we'd like to welcome all of you to Governor's Office first quarter, 2023 conference call.
Speaker 2: I'm Helen Xu, the AI Director. Our CEO of the company Mr. Xiaobing Liu will also join this call today. I'd like to remind you to all our listeners that in this call, we will be discussing certain management statements during the call.
Speaker 2: Will be.
Speaker 2: Campaign for working state information about software service in cooperation and its subsidiaries, business and products within the meaning of rule 175 on the Securities Act of 1933. And the rule 3D dash six under the Securities Act change act.
Speaker 2: to the general economic and business conditions in China, the risks associated with the COVID-19 pandemic outbreak.
Speaker 2: future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competition from the...
Speaker 2: and the other oil fields and power production chemicals.
Speaker 2: changing technology, the ability to make future bromine access, and the various other factors beyond its control.
All four looking statements are expressly qualified in their entirety by this cautionary statement and the risk factors detailed with the company's reports filed with the SEC. Golf Resources assumes no obligation to revise or update any four looking statements to reflect events or circumstances.
after the data of this call. Accordingly, our company believes expectation reflecting in those four looking statements are reasonable and there can be no assurance of such will prove to be correct. In addition, any reference to the company's future performance is not a
represents the mandamus estimates as of today, the 16th of May, 2003.
For those of you unable to listen to the entire call at this time, a replay will be available at the company's website. The call is also accessible through the webcast, and the link is accessible through our website. So please locate our press list issued earlier for the details.
So first off, we will reveal the result for this quarter. And then I'd like to test the call over to Mr. Liu for his comment.
So it would be easy for shareholders to look at our results and think this was a bad quarter. But we believe this quarter actually showed the strengths of our business model and the significant opportunities for our company. In this quarter, our chemical factory is a good quarter.
and natural gas facilities were still closed. Because of the winter shutdown, we lost one month of production, bromine prices plunged by the highest percentage in care remember. Cus of prices were also down sharply. Things could not get much worse.
Yet, despite these problems, we only lost.
$550,000.
If we exclude the cost of our closed-fetchies and cost during the planned shutdown of $2.4 million, we would have actually earned a profit. We generate it.
almost 5 million cash and ended up with a cash position of almost 160 million dollars 11.10% per share.
When the prices go back up, which we expect they will, when our new chemical factory opens, and when we begin to produce natural gas and brine strength, which we believe will happen, we believe investors will be very pleased with the type of returns.
we generate. With our plans to develop export businesses and chemicals, we will have the financial flexibility to take actions to increase our shareholder value. So we look for this exciting future. So the revenues for this quarter from the budget Ever 55 runs on the megafil Grant and wrote contract funding for that so we can examine a lot of how we measure CHunt costs, because it1992 can be shut down
It's almost approximately $9.3 million we present in an increase of 4% over the same period of year 2022. The net loss worth.
Approximately $557,000, as compared to a net loss of...
$119.9K for the same period of last year. Owners per share were lost of 5 cents versus a loss of 1 cent per cent last year.
$919.9 thousand from the centurion of Latia. On its per share were lots of five cents, whereas a lot of one cents for centurion of Latia. Cash flow was...
approximately $4.8 million and in cash was $115.8 million.
Cash per share was $12.10.
per share was $11.10. Nobody asked for the link to it.
worth $9.99 per share.
and shareholders equity worth.
$26 for the pricing demand.
So now let's look at our business by segment.
So first of all, let's look at our bromine and crucial segments. For the screen mass period, and did by March 31st, 23rd, the net-renew for the bromine segment worth approximately $8.5 million compared to $8.5 million for the same purity in the same previous year.
This increase was due to the 101% of the increase in cost, so the 48% increase in average selling price.
The growth profit margin of 27% compared to 52% for a simpler last year.
The decrease in the growth profit margin was primarily actually suitable to the lower average selling price of bromine.
As compared for the same period last year, cost of net revenue were approximately 6.1 million andhoo cost of 9 million."
The law from operation was
$409.7 billion dollar compared to a profit of approximately $1.3 million for the same period last year.
The net revenue for the croissant was $748.7 billion and $754.
Viro $1,000 for the same period of 2003 and 2022.
respectively. This increase in the net revenue for the cosine was due to a 32% increase in the Tom's sold and a 25% decrease in the average selling price.
The cost of net revenue worth approximately $620,000 compared to $600, $39.6 for the same period last year. Approximately.
Kurosawa earned a profit of $42,930 compared to loss of $521, and now $121 for the victory in the previous year. In May 2022, we separated bromine and Kurosawa's business to confirm its government regulations.
This separation requires different allocation costs.
The next impact was to increase the cost allocation to bromine.
imphad words to increase the cost allocation to growam in and between.
Cool stuff.
So now let's look at the chemical segments. There was no remeoing chemicals, not from operations from the chemical products segment.
worth approximately $417.9 for the three month period and the March 31st to 2023, compared to loss from operation of.
approximately $513 in the same church.
Nature gets. Our Nature gets segment had no real meal from production.
Because we did leave some of I-criments.
So as a result, income from operation from our natural gas segment worth approximately $2.7 for the same period for the first part of 2023, compared to a loss of approximately $26.7 in the centuries of
Y'ts don't have to.
So now let's look at our business and strategy plan out look for this year.
First, we look at the bromine and cruciate. The price of bromine had dropped substantially this quarter. We believe there are three major reasons. Firstly, because the economy closed, there were the shut downton in a domestic amount and the shut drop of in ex power sales of downstream products as well.
So in addition, because more people were home and not working during college, 19th-pydamage.
They were less beautiful, the inspectors. They believed that companies' manufacture the inspectors did not expect the company to close and thus had too much inventory.
We believe prices of bombing had a bottom and a major rise from current levels. That's a planned amount.
The clean prices of bromine had a bottom and a major rise from current levels. That's a planned amount. In question.
It's still very advantageous. Some factories have been permanently closed.
The economy is improving and experts are starting to return to normal. At this time, we are not in a position to project a tiny extent of the rebound in prices.
However, the company believes that that company's own company will offer it.
The company remains optimistic about the ability to try to open one of its two closed batches. In year 23, the company is currently working with local governments.
on the related issues. For the existing operating factories, a company has completed substantial of capital expenditures, capital expenditures for the Borneo-Cusar PEM, in the 2010-2003 will be limited to basic maintenance.
So, for chemical segments, the company is still working for the customized machinery, majorly, including that related to environmental issues, such as the waste gas treatment equipment, solid waste treatment equipment, and the waste water treatment equipment. The remaining equipment will be delivered as.
Soon as the environment climate is available, this e-creme is, it has to be delivered by the second quarter of third quarter of year 2023. Over this e-creme is, once this e-creme is delivered, come here where you form shareholders and post photos on its website.
The company believed that once all of the equipment is delivered, it will take three to four months to get them restored. And then take another to the three months for testing. And the come which will be in a position to apply for the environmental and steady approval. After the approval, it will take
for months to conduct trial production. And then we missed that commercial production.
So for all this technical export project, Mr. Navrami-Niao, our COO and the director, has been named as Chairman.
of our task force.
to explore expert opportunities for chemicals.
Mandement team begin to research which products and the markets offer the best opportunities to export.
The company will try to find the export opportunities.
So we can gain the possible and greater financial flexibility to enhance shareholder value. Before selecting the specific products and the markets, we will also have to consider which of the products can be produced in the high quality.
Why are these new chemical factories? So for Sichuan Province project, as we have disclosed, COMBI plans to proceed with its application for the natural gas and brine project approvals.
with related government departments until after government planning has been finalized.
Land and resource planning for the Citroen province.
Because of these complexities, we are discussing the possibility of a joint richer with the government of dying countries for the extraction ofblomine water and 13 related products.
We believe such a John Wincher could help us to overcome some of the German related issues.
will you keep investors informed of our progress. So now let me turn the call back to Mr. Liu for his comments.
on the spot I. Hello, hi.
hello, my name is yo yo, so sorry for coming from the
So also j agger t three start, end on is accounts. Thank ue, do the store year or my uj.
Shows also: DA is do two did current on kaz, Canada. Think why RO also in Tania?
So engineer to Alia member. Second, in hoteter j we are areing soapanam. Come for the.
Indeed, the supreme system will always be held, with every single platform who has a remarkable? and a few root wishes.
conflationing. She Jack quback time senior way in me tech highjah. She also going to have th also a proble Bank of the year. Every hundred gr ear the union, ear the union. one bum year with the.
roman 50 million L
Kong TA ya ho unineed W a haisang Hi Kong Su ji kho the an khai ier and chieher.
nos that's look. Should am much your habitatic bangong generender you done deter for the toler.
presentent the hyro shouldneed to hold. conclus a Li anila, you also seeing oneual apquication that the triia condo caronddo, chters have.
Check the appropriate opportunity player's office will come into town again.
But I'm sure some of the results are driving mostly
chenar and hawa jong and haillet j ceng pundak wan jair.
Ah ha, Shijun Yan-o-zong. So hi everyone, so just not this was the comment from the ComunCee or Selvin Liu. So I will do a translation for his comment. First of all, welcome all of you to attend the first quarter of 2023 earnings conference call.
The sharp plane decoying the price of bromine significantly impacted our own discotter. We expect this price to have hit bottom and the main glaze from here.
In this list, this pilot declined with generated free cash flow and increased our cash position. As for the close-up business, our May 12, 2023, our cash was almost four times of our market capitalization.
And our book value per share was almost nine times our massive capitalization. The building's bromine price will rebound and we will try to open one more facility this year.
We are very optimistic about opportunities for our chemical business.
In year 2015 and year 2016, our chemical business had income from operations of $33 million and $25.5 million respectively. We believe our new chemical facility will be profitable.
And we also believe that religion get permission to kill for nature's death and blinds from province. While there is no certainty yet, that our discussion with the local government is going on well.
So finally, the company has established our task force this year led by Mr. Nygrimiao, the company COO.
That will be identified the opportunities for the export of technical business. So we can make in the possible financial flexibility to undertake critical action and to enhance our shareholder value.
And that will be identified opportunities for the export of technical business. So we can make the possible financial flexibility to undertake critical action and enhance our share like a very special edition United for the Benim
No operator can start our QA section for today. No problem Helen. At this time we'll open it in the floor for questions. If you would like to ask a question, please press star one on your phone key pass.
A confirmation term will indicate your line is in the queue. You may press star 2 if you would like to remove your question from the queue. For anyone using speaker equipment it may be necessary to pick up your handset before pressing any keys. Please hold a moment whilst we pull for any questions.
Just a reminder, if you do have any questions, please press star one on your phone keypad now.
We don't appear to have anyone in queue at the moment Helen. I can let you know if someone comes in.
Okay, thank you, you're on the breaks. Leave no worries, then if anybody is on the kinds of?, if you just see if he talks, you'll then? the fascia.
Wait, hello.
Hi, operator. Do you mind just ask one more time if there is no more question we can close the call for today?
No problem. Ladies and gentlemen, if anyone does have any questions from the audience, please press star one on your phone keypad now. We don't have anybody in queue, Helen. OK, I think that's all for today. Thank you very much, Jenny.
Thanks for the link. Take care. Bye.