Q3 2023 Gulf Resources Inc Earnings Call
Greetings and welcome to the Gulf Resources third quarter 2023 earnings Conference call.
Operator 2: Greetings. Welcome to the Gulf Resources Q3 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 press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Helen Xu. You may begin.
At this time all participants are in a listen only mode.
Question and answer session will follow the formal presentation.
He wants you to require operator assistance during the conference. Please press Star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to your host Helen Zhu you may begin.
Helen Zhu: Thank you all right yeah, good morning, ladies and gentlemen, and good evening.
Helen Xu: Thank you, operator. Good morning, ladies and gentlemen, good evening for those of you joining us from US. We'd like to welcome all of you to Gulf Resources Q3 2023 Conference Call. I'm Helen Xu, the IR Director. Our CEO of the company, Mr. Shelby Liu, also joining this call today. I'd like to remind you to all our listeners that in this call, certain management statements during the call will contain forward-looking information about Gulf Resources, Inc. and its subsidiaries' business and products within the meaning of Rule 175 under the Securities Act of 1933, and Rule 3B-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Actual results may differ from those discussed today, taking into account a number of risk factors, including, but not limited to, the general economic and business conditions in the PRC.
Speaker Change: Zelda off he is joining us from U S and we'd like to welcome all of you to go out in the southeast So contact 1023 conference call.
Speaker Change: I didn't see that Oh.
Speaker Change: Oh CEO of the company to Shelby and he's also joining this call today I'd like to remind you to all our listeners that in this call certain statements, you'll you'll get a call will contain forward looking information about coffee shops equilibration.
Speaker Change: And each subsidiary is nice and products within the meaning of issue why 75 under Securities Act of Yankee Stuffy Street.
Speaker Change: It was trading desk six under the Sun.
Speaker Change: Cookies Exchange Act of 1934 and are subject to the Safe Harbor Clayton Biofuels.
Speaker Change: Actual results may differ from Joel discussed today, taking into account a number of risk factors, including but not limited to general economic and business conditions in the PRC associate it.
Helen Xu: The risks associated with the pandemic outbreak, future product development and production capabilities, shipments to end customers, and the market acceptance of new and existing products. Additional competition from existing and new competitors from the bromine and the other oil field and the power production chemicals. Changing technology, the ability to make future bromine assets, and the various other factors beyond the company's control. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risk factors detailed within the company's reports filed with the SEC. Gulf Resources assumes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Accordingly, our company believes the expectations reflected in those forward-looking statements are reasonable, and there can be no assurance of such will prove to be correct.
Speaker Change: They get pedantic outbreak future product development and production capabilities shipments to end customers and the market acceptance of new and it's safe to call that additional competition from existing and new competitors from the bromine ended up Agra.
Speaker Change: Beauty and the power production chemicals.
Speaker Change: <unk> technology.
Speaker Change: The ability to make future bromine assets and the various other sector beyond the company's control.
Speaker Change: All forward looking statements are expressly qualified in their entirety by these cautionary statements and the risk factors detailed in the company's reports filed with the SEC Golfie Shelties assumes no obligation to revise or update.
Speaker Change: Any forward looking statements to reflect events or so.
Speaker Change: Kenzie after the date of this call.
Speaker Change: Cody.
Speaker Change: Company believes they practice it reflected in those forward looking statements are reasonable there can be no assurance of such will prove to be correct.
Helen Xu: Any reference to the company's future performance represents the management's estimate as of today, 20 November 2023. 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. The link is accessible through our website. Please locate our press release issued earlier for the details. Before focusing on the major content of this conference call, we would like to briefly discuss the proposed change in our chairmanship. Mr. Yang founded our company, and Mr. Liu joined the company in 2007 and became CEO in 2009. Mr. Yang, who has investments in many companies in Shandong Province, has decided not to stand for re-election as chairman at the annual meeting on 30 November 2023. The board has nominated Mr. Liu to serve as our next chairman.
Speaker Change: Addition, I ask any reference to Companys future performance.
Speaker Change: The management's estimates as of today, the 20 <unk> of November 2023.
Speaker Change: Well, we want to offer you on April two banks into the entire call at this time.
Speaker Change: A replay will be available at the company's website. The call is all upside for sure the webcast and the link.
Speaker Change: It goes through our website. So please locate our press release issued earlier for the details.
Speaker Change: Before focusing on the major content of this conference call, we would like to briefly discuss the proposed changes in the Altair <unk> sheets.
Speaker Change: Yeah, Bonnie to our company and then Mr. Neogen the company to the Senate and it became CEO in 2009, you see all who had investments in 90 company is seldom colleagues.
Speaker Change: Decided not to stand for reelection as chairman at the annual meeting on November 32 that tend to St.
Speaker Change: What has normally may teach me to serve as our next chairman where are you with.
Helen Xu: We'd also like to refer to a recent press release discussing our flood prevention plan. As we issued earlier that in year 2018, Shouguang City experienced the devastating impact of Typhoon Biviar, regarded as one of the most destructive typhoons in history, resulting in the region receiving 14.9 inches of rainfall. The overflow of 3 major reservoirs along the Mihe River led to extensive flooding in farmlands, residential zones, and industrial factories. All of the company's bromine factories, crude salt pans, and mining areas were seriously impacted. The company incurred substantial expenses amounting for more than $40 million, including the write-offs, the road repairs, equipment replacement, crude salt pan reconstruction, and redrilling of flood wells. A year later, the Typhoon Lekima struck Shouguang City again, surpassing the destructive force of its predecessor.
Speaker Change: I would also like to refer to our recent press release is causing a further three they should play.
Speaker Change: As we used to the idea that you took on a T.
Speaker Change: Sure so the experience that you've lost.
Speaker Change: T impact of pet food will be a big.
Speaker Change: Regarded as one of the most destructive typhoon in history, resulting in some region, we see them voting pardon light in cheese all gainful.
Speaker Change: The.
Speaker Change: The overflow of three major.
Speaker Change: So he is a long term needs of either late to east, Tennessee, peanut you'd thumbnut residential roof, and that's G O that cheap.
Speaker Change: All of the company's bromine sketches crew soft patch and mining areas was seriously impacted the company incurred substantially pansies amount handful Moselle 40 millions of dollars, including <unk>.
Speaker Change: Write offs, and then Joe to the pets equipment and replacement Cousar heavy construction and are reaching the end of our lives.
Speaker Change: Yes.
Joe: Yeah, Nathan the typhoon Lekima truck she'll glossy D again.
Joe: Housing that is trapped him force of E. P cdos.
Joe: Great.
Joe: Once again the company had to spend the most of that $6 million to rectify that after mess involving the road to meet has upended placement Cusco, Peggy construction and the feeling.
Helen Xu: Once again, the company had to spend more than $6 million to rectify the aftermath, involving the road repairs, equipment replacement, crusho-tent reconstruction, and the drilling of affected wells. To mitigate the similar damages in the future, the company has commenced a flood prevention initiative. Our strategy involves the renovation of the channels of four major rivers within our mining area, encompassing the tributary of Mihe River. The aim is to prevent flooding that could harm the wells, aqueducts, and crusho-tents at our plant. The projected expenditure for this initiative amounts to approximately $50.5 million. As of this quarter ending by 30 September 2023, the company disbursed amounted approximately $15.15 million for the initial phase of this project. Apart from reducing risk to surrounding regions, we anticipated that there are three notable advantages from this flood prevention plan.
Joe: Yes.
Joe: So to.
Joe: And you can gauge and a ceiling of damages in the future. The company had common stuff a lot played live J E T.
Joe: Our strategy involves the novation of the channels are full major lever we do.
Joe: Our mining area.
Joe: Income parking yep.
Joe: Should be able to re lease those either.
Joe: Aim is to prevent filardi that could have the whales echo dogs and of course, our pets at all to that.
Joe: The project piece of expenditure for these initiated amounts to approximately $55 million.
Joe: Nice quarter and being by September 13th 2023.
Joe: The company disbursed.
Joe: Mounted approximately 15.15 million for the initial phase of this project.
Joe: Part from reducing risk to surrounding regions.
Joe: He stated that.
Joe: Three notable advantages from these Florida predaceous plant.
Helen Xu: It is expected to, firstly, enhance the probability of obtaining approvals to reopen factories number two and number ten. Secondly, enable the drilling of additional wells across our five operating factories. Number three, mitigate the risks and associated expenses related to future storm-induced flooding. Given the company's current financial position and its substantial cash resources, the company believes that the flood prevention plan will yield favorable returns over the long term to the company. Now let's turn to the results of Q3 and the nine months. During Q3, the sales declined by 74%. Net income after tax was a loss of approximately $1.8 million compared to a profit approximately of $9.0 million. Net loss per share was $0.17 compared to a net profit of $0.86. Shareholders' equity was approximately $260.8 million or 24.99%.
Joe: He he expects you to firstly.
Joe: The probability of all continue approvals to really open that she is number two and number 10.
Joe: Secondly.
Joe: And have enabled the training of additional wells across all five operating factories.
Joe: Now there's three.
Joe: To date, the lease and associated expenses related to future stops.
Joe: Used flaherty.
Joe: Leaving the company.
Joe: Current financial position and it's substantial Kashi South East the company believes that the flood prevention plot. There, we'll just say Louisville.
Joe: Over the long time to come.
Joe: So nothing that's putting two as a result of the so called them and then nine months.
Joe: But in the so called out your sales declined by 70 sport pleasure teach net income after tax was a loss of approximately 1.8 million compared to a profit.
Joe: Tell me o'clock Sneakily Oh.
Joe: Nine Paul zero immediate.
Joe: Net loss per share was <unk> 17.
Joe: Compared to a net profit of 86 it.
Joe: Shareholders equity was approximately.
Joe: 206, coupon intermediate Oh, tiny small time, 99%.
Joe: So as a result for the three months ended September 32023.
Helen Xu: The results for the three months ending 30 September 2023. In Q3 2023, revenue declined by 74% to approximately $5.9 million from approximately $22.9 million. Especially, the bromine revenues declined by 75% to approximately $4.9 million from approximately $19.8 million. The decrease in this net revenue was primarily due to the reduction in the volume of ton sold, 43%, and a 57% decrease in the average selling price of bromine. During the quarter, the average selling price was $3,237 compared to $7,474. As of 15 November 2023, based on the cens.com data, the price of bromine has seen an increase of approximately 7.4% to $3,477. The decrease in selling price of bromine reflects both economic weakness in China and an excess inventory of anticipations following the aftermath of COVID.
Joe: In the first quarter of 2023 revenues declined by 74%.
Joe: Our proximity 590 from approximately 22 9 million.
Joe: Actually the bromine revenue declined by 75% to approximate 4.9 million from approximately 19 points.
Joe: The decrease of English nice revenue was primarily due to the reduction in the volume of tons sold.
Joe: Q4, 43, I can teach and a 57% decrease in the average selling price of bromine.
Joe: These are called her every selling price wars.
Joe: $3237 compared to.
Joe: $7474.
Joe: As of November 16, 2023 based on the centers dotcom data at a price of bromine has seen a increase of approximately $7 four person teach to 3000 and $477.
Joe: The decrease in selling price bromine reflects both the economic weakness in China and any excess yeah.
Joe: Lin Chi of Mtc pet piece.
Joe: Following the aftermath of call me every section in tons sold reflects the company's check check a decision not to engage in price competition aiming to safeguard long time value of easily saudis.
Helen Xu: The reduction in ton sold reflects the company's strategic decision not to engage in a price competition, aiming to safeguard the long-term value of its resources. Additionally, crude salt revenues declined by 70% due to an 18% decline in pricing and a 63% decrease in tons produced. As crude salt is a by-product of bromine, the decreased production of bromine resulted in a reduction in production of crude salt as well. There were no revenue generated from our chemical products business yet, while our Natural Gas Business obtained approximately $68.0 thousand in revenue through its equipment leasing. Gross profit for the quarter was amounted to a loss of $508.0 thousand compared to a profit of approximately $14.5 million in the previous year.
Joe: Additionally, crude salt revenue declined by 70 percentage due to an 18% decline in pricing.
Joe: A 63% this decrease in tons produced as crude Saudi is a by product of bromine decreased production of bromine is off to a really good indexing production all cross shopping as well.
Joe: No revenue was generated from our chemical products business, yet, while our natural gas business obtained.
Joe: Approximately 68 planes you without in dollar in revenues through Etsy payments Levy.
Joe: Gross profit for the quarter was amounted to a loss.
Joe: Oh.
Joe: 508.0 thousand dollar compared to a profit of approximately $14.5 million in the previous year.
Helen Xu: Especially, our bromine business suffered a gross profit loss of approximately $1.1 million compared to a profit of $12.5 million, while crude salt achieved a gross profit of $511.5 thousand compared to $1.9 million previously, approximately. The company incurred direct labor and factory overhead amounting to approximately $1.0 during the plant shutdown, compared to approximately $1.9 previously. General administrative expenses were approximately $762.9 thousand compared to $584.5 thousand previously. Consequently, our loss from operations was amounted to approximately $2.3 million compared to a profit of approximately $11.9 million in the period priorly. The net income after tax was a loss of approximately $1.8 million compared to a profit of approximately $9.0 million, and the net loss per share was $0.17 compared to a net profit of $0.86. Results for the nine months ended 30 September 2023.
Joe: Partially our bromine business suffered a gross profit loss of approximately one $1 million compared to a profit of tailpipe find me a dollar Wow crew start achieved a gross profit.
Joe: <unk>.
Joe: 511.5 thousand tons compared to $1.9 million previously our politics our proximity.
Joe: Company incurred direct labor and that's your overhead.
Joe: Amounting to approximately 1.0, you own English plant shut down.
Joe: Compared to approximately 1.9 previously.
Joe: General and administrative expenses work.
Joe: Approximately 762 9000 draw them compared to 508 full points I have done previously.
Joe: Consequently.
Joe: Our loss from operations was amounted to approximately $2.3 million compared to a profit of approximately 11 nine.
Joe: He named all are in a period three are really the net income after tax was a loss of approximately $1.8 million compared to a profit of approximately $9 million and then net loss per share.
Joe: Was 17% compared to a net profit of 86.
Joe: Results for the nine months.
Joe: And at September 32023.
Helen Xu: Revenues over the 9 months declined by 51%, decreasing of approximately $23.2 million from approximately $47.5 million. Especially, bromine revenue also fell by 51% from approximately $20.7 million from approximately $41.9 million. Notably, there was a 9% increase in bromine tons sold, reflecting the addition of factory number eight. However, despite this, the gross profit margin decreased to 7%, down from 57%. Throughout the 9 months, the average selling price of bromine was $3,493 per ton compared to the previous of $7,674 per ton. Revenues from crude salt also declined by 51% to approximate $2.3 million from approximately $5.5 million. While the production volume declined by 51%, no revenue was generated from chemical business yet. Conversely, revenue from natural gas increased by 30% from the equipment leasing. The gross profit for 9 months totaled approximately $2.7 million compared to $26.4 million.
Joe: He doesn't use over a nine months declined by one person.
Joe: Decreasing approximately.
Joe: Approximately 23.2 medium two alone.
Joe: From approximately $47.5 million.
Joe: I actually Rami revenue also fell by 51%.
Joe: From approximate $27 million from approximate 41 point magnetar, notably there was a 9% increase in bromine tone suite, reflecting the addition of fetching.
Joe: Number eight.
Joe: However, despite this the gross profit margin increased two 7% down from 57%.
Joe: After the nine months the average selling price.
Joe: Bromine worse.
Joe: $3493 per ton compared to the previous of 7674 per tonne.
Joe: Revenue from crude Salt also declined.
Speaker Change: That's one question.
Speaker Change: Two o'clock snake coupons $2 million from approximately five point family dollar while the production volume deep client, but you need one person no revenue was generated from chemical business yet.
Speaker Change: Conversely revenue from natural gas increased by session percentage from the agreement leaves.
Speaker Change: Gross profit for nine months.
Speaker Change: Total to approximately $2.7 million.
Speaker Change: Compared to $26 4 million.
Helen Xu: Especially, the bromine business accrued a gross profit for approximately $1.5 million compared to approximately $27.7 million in the previous period. Our crude salt business achieved a gross profit of approximately $1.0 million compared to approximately $2.6 million. Meanwhile, the chemical business reported no gross profit, and the natural gas business marked a gross profit of approximately $150,000 compared to approximately $132,600 previously. The company incurred direct labor and factory overhead during the plant shutdown, amounting to approximately $4.5 million compared to approximately $6.0 million. In the previous period, general and administrative expenses were approximately $2.3 million compared to approximately $3.4 million as previously. As a result, our loss from operations were amounted to approximately $4 million compared to a profit of $17.0 million as previously.
Speaker Change: Especially the plot Romney business are cool.
Speaker Change: Our gross profit.
Speaker Change: Apache maintained $1.5 million compared to approximately 20, Samsung Sony and Dara in the previous period.
Speaker Change: I'll close off business achieved a gross profit.
Speaker Change: Oh, approximately 1.0 meeting tunnel compared to above maybe.
Speaker Change: $2 6 million. Meanwhile, the chemical business recorded no gross profit and in natural gas and mapped our gross profit.
Speaker Change: Oh.
Approximate $150000 compared to approximately.
Approximately 172.6 thousand dollar previously.
The company incurred badly, but and affects your overhead dealing the plants shut down.
Amounted to approximately four $5 million compared to approximately six point, you'll need a dollar in the previous period.
And the administrative expenses were approximately $2.3 million compared to approximate shrimp on formulary at all though I previously.
The result.
Loss from operations were amounted to approximately $4 million compared to a profit of seven.
17 pounds zero, meaning.
As previously made.
Helen Xu: Net income was a loss of approximately $3.0 million compared to a profit of $12.7 million previously. The net loss per share was $0.29, compared to a profit of $1.22. Cash flow. During the nine months ended by 30 September 2023, we generated approximately $9.9 million from operating activities and invested approximately $15.2 million, primarily in our flood protection program. Balance sheet. As of 30 September 2023, our cash balance was approximately $103.8 million based on the shares issued and outstanding ended by 30 September 2003. That translated to $9.95 in cash per share. The net cash, which is cash minus all liabilities, was $8.21 per share. Working capital was approximately $10.17 per share. Shareholders' equity was $260.7 million approximately, or $24.99 per share. Now let me turn the call over to Mr. Liu for his additional commentary. Liu 总 。 喂 ？
Net income was a loss of approximately $3.0 million compared to a profit.
L plus $7 million previously.
And net loss per share was 29 cents.
<unk> <unk> to a profit of one dollar antennae tuition.
Cash flow.
Given the nine months ended September searches to the Tennessee, They generated approximately nine $9 million from operating activities and invested approximately 15 $2 million primarily in our.
Third protection program.
Balance sheet as of September 30th two downtown D Street, our cash balance was approximately.
103, 8 million dollar based their shares issued and outstanding.
Envied by September 30.
2003 that translated U.
$9 95.
In cash per share.
The net net cash which is cash minus all liabilities worth.
Worse at dollar.
Turkey once it is sure working cap too.
Worse.
Approximately $10 and cents per share.
Hunters shareholders' equity worse.
$267 million, approximately Oh, Chinese small pond 99 per share.
So now let me turn the call over to Mr. Liu for some additional commentary.
Okay.
That's all.
Right.
Xiaobin Liu: 嗨。
How long ago.
Helen Xu: Hello。
Xiaobin Liu: 你好。
Helen Xu: 哎，刘总，你好。
Ed.
Okay.
Okay.
Xiaobin Liu: 大家好。
Oh I got it.
Helen Xu: 哎，刘总。
Uh huh.
Xiaobin Liu: 大家好，我是公司CEO刘小兵。首先非常欢迎大家来参加海湾资源2023年度第三季度的季度举报营运会。在第三季度，我们的业绩受到了溴素价格下降的不利影响，我们把价格的下降归因于两个主要原因。首先，中国建筑市场的低迷状态导致用于阻燃剂的溴素的购买量减少。其次，新冠病毒大流行影响的减弱导致医疗器械和灭菌对溴的需求减少。尽管面临这些挑战，我们公司仍然对溴素的长期供需平衡持乐观的态度。我们预计对溴素产品的需求将会复苏，包括新型产品、加锌和溴的电池和新型医疗产品，为持续需求增长提供了机会。然而，溴素的供应仍然受到限制。值得注意的是，根据2022年生产量的数据，我们估计可能超过了75%的全球溴产量集中在以色列、约旦和乌克兰等地区，这些地区目前面临着军事冲突或战争。我们在面对目前市场形势采取了谨慎的策略，我们推迟了寻求批准与开设溴素二厂和三厂的计划，因为我们在等待价格的回暖。此外，我们已经推迟了我们化工厂最终设备的采购和配送，直到我们对于延伸溴素产品的机会有了更清晰的认可。我们已经缩减了销售规模，预计未来溴素的销售将带来更高的回报。自本季度以来，我们观察到溴素的市场价格逐渐并且持续的上涨。我们正在密切关注中东地区的事态，认识到死海地区的任何中断都可能突然改变市场动态。展望未来，我们预计将在未来几个季度恢复盈利。此外，我们的目标是推进我们的化工厂的开业，获得我们剩余两个溴素厂的批准，并理想地恢复我们在四川的天然气和卤水的勘探。
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Helen Xu: Here is the remarks from Mr. Xiao Bin Liu, the company CEO. First of all, I'm the company CEO, Mr. Xiao Bin Liu. Welcome all of you to attend the Gulf Resources Third Quarter 2023 Earnings Conference Call. In Q3, our results were adversely impacted by the diminished price of bromine. We attribute this drop in price to two major factors. First, the sluggish state of the construction market in China led to reduced purchase of bromine for fire retardants application. Secondly, the warning impact of COVID pandemic resulted in decreased demand for bromine in medical instruments and sterilization. Despite these challenges, our company remains optimistic about the long-term equilibrium of bromine's demand and supply. This still continued. We anticipate a research in demand of bromine-based products and emerging products such as zinc-bromine batteries and new medical products present opportunities for sustained demand growth.
The impact he buys up diminished price of bromine.
Should be able to do this job he applies to two major affect us.
First the sluggish state of the construction market in China led to reduced coach has a bromine for salary cut and application.
Secondly, the one you impact of call me too pedantic resulted in decreased demand for bromine in medical instruments and sterilization.
Despite these challenges our company the most optimistic about the long term.
Yes.
You clearly put in us.
Bromine demand and supply we still continued.
<unk> page on research in demand of bromine based across that.
And emerging products, such as deep and bromine bedsheet.
Neil maybe pinpoint that.
Acuity is fun.
Thank you Mike Goss.
Helen Xu: However, the supply of bromine continues to be constrained. Notably, based on 2022 production data, we estimate probably over 75% of global bromine production is concentrated in regions like Israel, Jordan, and Ukraine, which currently face military conflicts or wars. We adopt a prudent strategy in navigating the market. We have held back seeking approvals to open factory number two and number ten as we await improvement in pricing. Additionally, we have postponed the procurement of the final equipment of our chemical factory until we gain clear insights into opportunities for innovative bromine products. We have scaled back our sales, anticipating higher returns from future bromine sales. Since the end of the quarter, we have observed a gradual but consistent uptick in the market price of bromine.
However.
Why of bromine continues to be cost change notable not only based on 2022 production data.
S teammates you probably over 75% teach uncle global bromine production is concentrated in regions like Israel draw down and you're correct.
Currently space military conflicts of laws.
Adopt a prudent strategy, mainly due to the market.
We have held back seeking approvals the old pump action number two and number 10.
We await improved pricing.
Pricing.
Additionally, we have postponed.
The procure ment of the final payment of all chemical factories.
10, Carfax U N T. A weekend can be yours, he touch into opportunities.
Well, you really a chief Rami contents, we have scaled back our suite.
Anticipating harrington from future sales.
Since the end of the content they have a reserve of Greg you, but consistent uptake in the marketplace alcohol me.
We are monitoring the events in the middle East recognizing that any disruption in the C V D could fund any I'm not the market dynamics looking ahead.
Helen Xu: We are monitoring the events in the Middle East, recognizing that any disruption in the Dead Sea region could suddenly unearth the market dynamics. Looking ahead, we envision returning to profitability in the forthcoming quarters. Moreover, we aim to progress with the opening of our chemical factory, obtaining approvals for our remaining two bromine factories, and ideally resuming our natural gas and brine exploration in Sichuan Province. Now we are open for the question and answer section. Hi, John.
They shouldn't return to profitability in a false economy.
I'll touch.
Moreover, we end to progress with the opening of all chemical sketchy, Oh opinion approvals for our remaining two broadly soft cheese and ideally we see them in our natural gas and brine exploration in Sichuan Province.
So.
And now we are open for the question and answer section.
Hi, Jim.
Yes.
Operator 2: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Once again, that's star one if you have a question or a comment. The first question comes from Alain Barkaka. She is a private investor. Alain, please proceed.
Thank you at this time.
We will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
You May press star two if you'd like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys. One moment. Please while we poll for questions. Once again Thats Star one if you have a question or a comment.
The first question comes from Alain.
Uh huh.
She is a private investor please.
Please proceed.
Alain Barkaka: Yes. Good morning. Good morning, Alain. Good morning, management. Given what happened in Q3, I have two or three questions. My first question is, could you explain why there was a delay in the 10-Q filing in Q3?
Yes, good morning, good morning, 11 minutes.
No that's great.
Hi, good.
What happened in Q3 of <unk>.
Couple of quick to ask your questions. My first question is could you explain why there was a delay in the 10-Q filing in Q3.
As well.
So here I told you unless you have a good transaction and in Georgia.
To say that Kevin Keegan limitation for our nation to get you do what you say, yes, she shambo vishal.
Yes.
Okay.
Hello.
Helen Xu: Hello?
Operator 2: Yes.
Yes.
Hi.
Sure.
Linda <unk>.
So just to I guess your granddaughter agendas are so low.
Okay.
Helen Xu: Okay. Hi, Alain. This quarter's delay in filing was because that, auditors, they need more documents or materials when they doing their review.
And then this quarter is a delay in filing was because that to all the parts. They need to you know mall documented all materials when the way. They do it is they are reviewing.
Yeah.
Alain Barkaka: Yeah. Okay. It's not a fully audited quarter. It's not like a 10-K. I'm curious to know, okay, what they were concerned about in a quarterly filing. The auditors are the reason why you had some delay. My second question, if you don't mind. My second question is regarding this flood prevention investment, and shareholders had already mentioned in the past that definitely we wanted the company to consider some action to mitigate the risk of flooding, and I think that's great. We're happy about that. The only thing that surprised us is that we learned that last minute, so I don't know when the decision was taken, but to learn last minute that we have a $50 million investment and that already $15 million has been spent in Q3, that was kind of a surprise to shareholders.
But yeah, that's yeah, Okay, hi, it's not a fully OTT quarter. It looked like your 10-K.
So I'm curious a little work there.
We're concerned about in our quarterly filings.
Okay. So there is a reason where you had some delay.
My second question. If you don't mind My second question is regarding this.
Prevention investments.
So does that already mentioned in the past that's definitely we wanted the company to consider some correction.
To mitigate the risk of flooding and I think that's great. It's we're happy about that the only thing that surprised us is that we learn that Las Vegas. So I don't know when the decision was taken to learn last minutes that we have a 50 million dollar investment and that's already $15 million being spent in Q3, that's what it's kind of a surprise to shoulders.
Alain Barkaka: When was the decision taken to make this $50 million investment?
When was the decision taken to make these 50 million dollar investment.
Oh, Yeah dogs of MTN, Nigeria, and that two of our top $10 or so claims you got a phone call.
To the sound more that to go home called publishing keeps you.
Helen Xu: 就是关于开支，比如超过$50 million的这个项目，他认为是可以理解，就是说在这个公司为了防洪，给公司包括之前两次台风给公司带来的伤害。但是呢，在第三季度的时候，同时有$15 million的支出。他想知道这个数据这么大的一个项目，公司是什么时候做了一个最终的决定去做这个事儿？
Oh sure of buying Patriot, which how long we should have a median age of the chalmette tagging. They showed a P. D D edge, which once I gave them constantly that phone when you take what's in Poland to champion against it and take.
Having said that it's all that and now that the Hanjin, who additional tones he or she would have began extrajudicial tacked onto your balance sheet.
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With that Michelle children, let's say if it wasn't that you got.
Just you eat the Ginnie coupons in the shop.
No.
Xiaobin Liu: 这个是在第三季度的九月份。
Uh huh.
You send you do that you have is it.
Hi, Anna even worse during the September excuse me.
Helen Xu: Hi Alain, it was during the September Q3.
Oh September any language has been shifting yeah, you're right where to spend $15 million in September.
Alain Barkaka: Oh, September. You were able to spend $16 million in September? Okay.
Okay. So it's kind of a.
Helen Xu: No. I mean the decision. You mean the final decision when was it?
Oh, Okay, I mean that decision you'll need the final decision of where it was you know the decision because this is a 222 plan to spend about $50 million when was the decision made towards.
Alain Barkaka: The decision to plan, I mean to spend $16 million. When was the decision made? Okay, I just find it that shareholders find it interesting that we just learned about it and suddenly we are told $16 million has already been spent. We would have liked to have a little more of a warning when you have made the decision to do this investment. Okay, just a comment. The question is how much do you expect to spend in Q4 of the $16 million?
I just find it.
Shareholders find it interesting that so we just learned about different suddenly towards 15.
<unk> been spent so we would have liked to have a little more of a warning. Okay. When you have made the decision to do this I took it just took them out there.
The question is how much do you spend on how much you expect to spend in Q4 because of.
Of the $50 million.
Yeah.
Helen Xu: 那就是说接下来这个第四季度的时候，公司预计会花多少？
Nicholas Tigger basketball he said he bushnell golf that you want to talk about that.
Uh huh.
Xiaobin Liu: 预计会花$3,500万左右。
Uh huh.
Maybe play out.
God I sent home without media engine right.
Helen Xu: 大概35个million左右，是吧？
Hum.
Xiaobin Liu: Mm-hmm.
Helen Xu: Q4. Alain, maybe in Q4, the rest of the projects will be spent like $35 million approximately.
Hum.
Okay.
Okay, and then maybe in Q4.
Oh, Yeah, you know the.
Projects will be.
It's Pat.
That's where you'll find me approximating $55 million in Q4, okay. Okay [laughter] I'll.
Alain Barkaka: $35 million in Q4. Okay. Thank you for the information. The last point is regarding the bromine pricing and market. You have restricted production in Q3 because the price went pretty low. It was at a very low price at the beginning of Q3. Are you still restricting production in Q4? Do you expect to go to full production again Q4? Whatever is full production, because it's winter, so I know it's not as high as in the summer.
Thank you for the information.
The last sports season regarding the four main pricing in markets.
Hugh you have restricted production in Q3, because the price was pretty low it was.
Great oil price at the beginning of Q3.
I'll use due to restricting production in Q4.
Or do you expect to go to full production in Q4, what Theyre very full production, okay, because it's winter trend where smoking is highest.
In the summer Okay.
Helen Xu: 刘总，就是那因为在第三季度的时候，这个溴素产量不高，因为考虑到价格的原因，第四季度的时候你预计产量会在一个什么样的水平？考虑价格原因，就最低或最高会是多少，大概？跟第三季度比。
Okay, Oh geez, you're not in a bad design gives a much older social Paydown book, all my even called it out see how can they be in decent you'd know Shaun if you just hang out or should that you can shut down the street here.
I'll call each other they need until J D would you call who should go shop, okay that'd be hazardous duty.
So as you know you go in there isn't a chunk of it. This is how you go away whether you've got wasn't done Don.
Xiaobin Liu: 首先，我们认为现在价格是在一个恢复的过程当中。为了保证公司的长远利益，我们认为在现在时候不适宜盲目地扩大产量，而应该保护现在价格的复苏。所以预计我们的产量跟去年第四季度的产量差得不太多。
Oh, we know of Boston and go through that you guys hired a knee or maybe really just assess jackson as a whole pool will see my mother caught out.
Mhm Ciao now are you guys just to source the bulk will send that don't go there you go full suite. So yeah, you will no wait time now Glenn Chin guarantees would you do that and now type of title.
Uh huh.
Helen Xu: For the price. 您 说.
Hum.
Thanks Ross.
Three geography changes as well.
Xiaobin Liu: 至于价格水平，就是说现在中东的形势对溴素价格的影响比较大，我们也在密切关注着中东形势的一个发展。所以现在的价格我们预计会稳中有升。
Cindy I just.
Don't do unless you wish to do what they're supposed to get where they need them together well me here that I need to go into a stimulus and today you referred to.
So you shouldn't have the telco E G.
Tony Ocean.
Okay.
Helen Xu: Hi Alain, here is the response from the CEO. Firstly, because we think the bromine price is in its recovery stage. We think since it's under its recovery stage and we should not blind expansion of our production. We estimate the production volume maybe will be similar as last year Q4.
Hi, and I can't get a response from this new let's see you now because we see the bromine price is easily probably stage.
Mhm.
And are we seeing to seem to eat on there. If you can comment stage and we should notch lagging passion of our protection at all so we estimate the production volume may be will be similar as it <unk>.
Last year Q4 quarter fall okay.
Alain Barkaka: Okay, that's great.
Helen Xu: We think because the Dead Sea region, the situation could alert market dynamics and the pricing of bromine as well. We are monitoring the events in the Middle East their side.
That's great that it will be you know.
D Wave Inc.
Because.
The you know that C region, the CTO Asia no.
Alert market dynamics, and the pricing of bromine as well.
So.
We are monitoring events in the middle East.
Okay.
Alain Barkaka: Yeah. Regarding that, I mean, I've seen that the price of bromine outside that's coming from the Middle East or coming from the US is higher than the price of bromine in China. Is the export team looking at the possibility of exporting some bromine to Asia, like to India or to Singapore, as the export task force looked at that?
And regarding that I mean, I've seen that the price of bromine outside of coming from that would be good news coming from the U S.
Higher than the price of a woman China easily export team looking at the possibility of exporting some bromine to Asia like to Ingo to Singapore.
Sports does close look that up.
Hum.
Helen Xu: 刘总，那就是Alain注意到，就是说在美国那边，海外溴素价格实际上是比中国溴素价格高的，那公司有没有考虑，把溴素出口到比如比较近的地区，亚洲地区，比如新加坡呀，东亚洲的其他比较近的国家。
And enjoy the outdoors, what that make one at the end.
It just shows you the jogger how that sure he'd have us you'd have to pay too much we can get our Calder casino milk Hollywood can slip back at the show so to close out your tenure teaching yeah dual teacher Fleshing out boy Oh, we added that she would have got you know quite yet.
Yeah sure.
Xiaobin Liu: 因为溴素的深加工行业，在中国周边地区并没有多少，所以要出口到远的地方的话，会增加很多的一些运费。所以我们也在关注这个。再加上它的溴素的价格，运输不是很方便，有很多安全压力需要考虑。所以我们也在关注这个事情，看看这个价差到底有多大。如果价差足够支撑这些费用的话，我们才会考虑。
So the things that go from here.
I'm sorry, so much oriented should be meal goes up because that's what what are you and this is on behalf of <unk>.
From Johnson outdoors.
Yeah.
So you want me if that's wrong.
This is a figure on how she also the size of the units that will push us out from there.
Or are you kind of uncertainty out there.
Yeah, So you're right.
Or going to sit here that's correct.
It was all about.
Dr. Katz will go to trying to get figure for your feeling about the topic.
Yeah.
Helen Xu: Hi, Alain. Firstly, because you know, the downstream of bromine industry are majorly in China area, but not in Asia. The main demand are here. Secondly, because bromine is very dangerous to transport and the transportation cost is very high. Based on these two factors, we think if we want to transfer it, like you said, Asia other countries and also for example Singapore, maybe we have to evaluate and monitor the market condition, and to evaluate the cost and the benefit.
Hi, Anna.
Firstly it calls you know that downstream of bromine.
Industry are majorly in China area, but nothing you know Asia, so that made the Mt.
Adhere and secondly.
Because bromine.
So it is very dangerous subtract part and they're trying to colocation caused by high.
So based on these two factors we seem to if we wanted to translate that to what you say to Asia other countries and it's only because I've not seen that or maybe we have to evaluate to the you know in the morning till the market condition and to evaluate the cost and that you know the benefits.
Yeah, Okay that would be great I think if you export vessels, which we could look at that that would be a great thing. Okay. Sorry for all these questions will be for longer kit, but thank you very much for your answers okay.
Alain Barkaka: Yeah, okay, that would be great. I think if the export persons could look at that would be a great thing. Okay? Sorry for all these questions have been so long, okay. Thank you very much for your answers. Okay?
Helen Xu: Okay, you are welcome.
Okay Youre welcome.
Helen Xu: 那就是非常感谢您的回复，希望公司能够关注到这一点。谢谢。好的，非常感谢他。
And then just if they have got hanging a hazard ratio uncles number ones without a D C.
Yeah.
Hmm.
Hi, Thank you.
Helen Xu: 好, thank you.
Okay. The next question comes from John Smith with Golf Resources. Please proceed.
Operator 2: Okay, the next question comes from John Smith with Gulf Resources. Please proceed.
Hello.
John Smith: Hello, can you hear me?
Can you hear me.
Yes, Hi, Joe I was lucky Okay, Hi, My question. The first thing I just want to say.
Helen Xu: Yes. Hi, John, I copy you.
John Smith: Okay. Hi, my question. First thing I just want to say thank you to the Chairman who's been with the company for a long time. He's done a good job building the business, and I think the current CEO is in a good spot to take his spot and continue the good management. The first off is just thank you.
Thank you to the chairman who has been with the company for a long time, we've done a good job building the business and I think the currency I was in a good spot to take his father and continue the good management. So the first off I'd just thank you.
Hum.
Helen Xu: Mm-hmm.
John Smith: After that, my question goes off of Alain's question on the bromine. Thinking that we just spent $50 million 在 the flood prevention, that's good. If we could export some of that bromine, I understand the cost would be bad, and I think looking at it from an economic standpoint, it might not make sense. If you could just export two, three, four, $5 million a year, you could use that money to buy back shares. With shares right now at an all-time low, that would instantly double, triple, quadruple, times five the market value. I think you guys do a good job running the business, but if you want to bring back shareholder value, I think you need to not just look at it from economic standpoint, but from the shareholder standpoint as well. It's good for you. You guys could pay you guys' self in stock at 8 bucks a share. I mean, the stock would skyrocket if you guys bought back 2 million shares, which at this price you could do easily. Thank you.
So that's my question goes off the lanes question on the bromine I'm looking thinking about we've just spent $50 million and the flood pro prevention. That's that's good but if.
If we could export some of that bromine I understand the cost would be bad and I think looking at it from an economic standpoint, it might not make sense, but if you could just export 234 $5 million a year and you could use that money to buy back shares.
It was shares right now at an all time low that would instantly double triple quadruple the times five the market value. So I think you guys do a good job running the business, but if you wanted to bring back share, but shareholder value I think you need that look just look at it from economic standpoint, but from the shareholders' standpoint, as well and it's good for you.
They pay you guys are selling stuff in stock at eight Bucks a share I mean, the stock would skyrocket. If you guys bought back 2 million shares at this price you could do easily so thank you.
Helen Xu: 好的，谢谢。刘总，这个问题是来自于John的，他是说首先非常感谢杨总这么多年对公司的付出，因为他是公司的founder，同时服务这么多年，把公司带到这样一个很好的水平。同时，您的加入也是一个非常激动的事情，会对公司将来的发展也会很积极。第二，他想说虽然说像刚才Alain提到的这个问题，如果我们出口溴素到亚洲国家，可能考虑到收益比的话不是那么可以给公司带来多大的利润。但是因为这个事情有可能可以让公司在海外留有现金，从而用这个现金去回购股票。考虑到公司现在的股价，包括公司的运营这么正常、这么好，但股价这么低迷，如果是用这个把出口的钱留在海外，然后用那个钱去回购公司股票，是一个非常好的事情。他提出这个建议。
Okay. Okay. Thank you. Thank you.
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Okay.
Oh sure.
Xiaobin Liu: 行，我们会考虑。另外溴素原材料它的出口，因为它是属于危险物品，所以出口还在中国需要有相当的资质，我们也需要去了解一下这方面的一个情况。如果有可能，我们一定会积极地往这方面去努力。
So what we would call it a new way of Shaw.
Sure sure.
Hello.
Cost me a weekend.
Or is that some of what's your feeling on that.
Sure so what many of you there.
She got you here.
So if I read that your girl.
Sure.
You called out or maybe there are quite.
What did you get in front of them accurately.
Uh huh.
Helen Xu: Okay, John, thank you very much. Will you consider about this suggestion? By the way, we just want to say that because you know bromine raw material is a very dangerous material during transportation. There might be some special requirements, you know, from the government policy when we want to export. Anyway, we will do more research on this project and to see if we can do this.
Okay central that much worse.
Consider about Yogi said, you know suggest chip and by the way and we just want to say.
That's because there's no raw material is a very dangerous material your insurance quotation.
So there might be some special requirements, you know problems a government policy when we want to export but anyway, we will do more research on this project and there to see if we can do with it.
John Smith: Awesome. Yep, I understand it might be more expensive, but again, maybe even if you lose some money, it could really boost the stock price. Thank you.
So if I understand it might be more expensive, but again, maybe even if you lose some money.
It really boosting the stock price, but thank you.
Helen Xu: Yeah。
Yeah, Matt I have one more question.
John Smith: I have one more question. Oh, yeah, thank you. Thank you for that. Would you, on this hypothetical. Right now we are valued so low compared to our worth. Would the company think about take like, say $15, $20 a share? Obviously hypothetical.
Yeah. Thank you for that.
Would you.
Hypothetical would the company.
Right now we are a valued so low compared to our worse would the company think about I take.
Say 15 $20 a share.
Obviously hypothetical.
Yeah.
What do you mean 20 or $15 per share.
Helen Xu: What do you mean $20 or $15 per share?
John Smith: Would you-
If it would you.
Helen Xu: I mean this-
John Smith: Would you consider a buyout at $15 or $20 a share?
Consider a buyout at 15 or $20 a share.
Okay do you mean, Banco Prevert I'll sell to come there to go if someone bought it for 15 to $20 a share yet.
Helen Xu: Oh, okay. You mean like go private or sell the company to someone else?
John Smith: Yeah, to go private. If someone bought it for $15 to 20 a share. Yeah.
Yeah.
Helen Xu: 刘总，就是说理论上来说，我想问一下，公司有没有可能会考虑，理论上这个价格，比如说大概$15或$20，有可能会私有化，或者是把公司卖掉。
Okay.
Don't do as well I think didn't even realize wow, yeah, Jack Cozy oatmeal connected college I shouldn't cause jago, how deals like that that show up Washington D C.
So a lot quite a ship back once it may go.
Mhm, making a male colleagues.
Xiaobin Liu: 目前我们现在还没有考虑。
No we don't think about it currently.
Helen Xu: No, we don't think about this currently.
John Smith: Okay. Good to know. I have one more question. Thank you. The big flood that happened, was that I think 2018, that caused the $40 million damage. If that were to happen again under the new flood plan, what would your estimates, would you think, how much would that cost the company if a very similar typhoon hit, after your preventions?
Okay.
And then I have one more question. Thank you.
Flooding the big for it to happen soon was that I think 2018.
That causes a 40 million dollar damage if that were to happen again under the new flood plan what would your estimates where do you think how much cost would that cost the company a very similar typhoon hit.
After your.
Prevention.
Helen Xu: 刘总，第三个问题来自于John，就是说如果考虑到2018年，当时因为公司花了超过$40 million的钱去做这些灾后重建，如果就是说公司做了这个防洪项目之后，如果再发生跟2018年当时那个台风规模差不多的台风的话，公司认为到时候我们的损失会是在多少？
So that probably shouldn't okay, there's one decided although who knows each on that total roadblock.
Yeah, I don't think you may want to acquire a lot of trouble us fish and the median budget that she and she's watching a small couch.
Yeah.
So can we just saw that he got some wholesale proposal what that flash until should go out and eat vanya downstream as it hasn't grown much happen daughter.
Traveling a lot considered oh, my gosh, a woman that I take the essential question got to wash out.
Uh huh.
Xiaobin Liu: 如果再发生就像18年那样的规模大的洪灾的话，我们的损失可能就会很少很少，只不过我们估计就是在会在三到五million之内就能够恢复。
Clarify something just from a rebound here now, but without a doubt.
Ah well known death rates, you're going to do it for yourself.
Or would you just as a quick the sunbelt really.
Your children and go for it.
Yes.
Mhm.
Helen Xu: If like the similar typhoon as 2018 happen again after all this flood prevention project, we think the cost for us to get everything done again will be very few. Maybe around $3 to 5 million, we can finish all of the repairs.
Yes.
Like are you seeing a typhoon as you know 2018 hectare again after August flutter probation.
Project, we've seen cut the cost you know for us to catch everything down again there'll be very few maybe around three to five media. We can't finish all offset you know with habits.
Wow that is a that's really good there that's true so that makes the plans seem a lot better.
John Smith: Wow. That's really good, if that's true. That makes the plan seem a lot better.
Helen Xu: Okay. Thank you.
Okay. Thank you.
John Smith: Thank you.
Helen Xu: 那就说他认为这个看起来很棒，这个项目看起来这样子，一看他就非常合适、合理。
Joni you.
Yeah mages are pegged to.
The shuttle tanker.
Yeah. So you kind of know how to fish oil Hudson.
Honey.
Xiaobin Liu: 谢谢。
That's it.
Thank you.
Helen Xu: Thank you.
Operator 2: Okay. The next question comes from Randy Liggett, private investor. Randy, please proceed.
Okay. The next question comes from Randy look at private Investor Randy. Please proceed.
Randy Liggett: Hey, Helen. How are you?
Hey, Alan how are you.
Hi, Andy if I hear you.
Helen Xu: Hi, Randy. Fine. How are you?
Randy Liggett: I'm fine. Thank you. I'm afraid I'm not gonna be as nice as the first two guys. I mean, this conference call sounds like the same one we've held for the last 10 to 15 conference calls. It doesn't sound like management has taken to heart one idea that investors have brought to them. Okay, the flood prevention plan, that's fine. We haven't looked at advisors to help the company. Management's fine with the bromine facilities and remediation of the facilities and all that stuff. They cannot and have shown they cannot enhance shareholder value. If anything, look at the price of the stock. I don't understand the stubbornness why we will not hire advisors to help management get through this. It's just anomaly to me. I would think you guys would want to get paid. We would like to get paid.
And Dan. Thank you I'm afraid I'm not going be as nice as the first do you guys. I mean this conference call. It sounds like the same one we both laugh.
Turning to page 10 conference calls and you know I mean.
Yes, it doesn't sound like management has taken to heart.
One idea that investors had blocking them.
Okay. The flood prevention plan, that's fine, but you know we haven't looked at advisors can help the company.
Management's fan with the blame on facilities and remediation of the facilities and all of that Scott They cannot and had shown they cannot enhance shareholder value if anything.
Look at the price of the stock.
I don't understand the Snapple and this why we will not fire advisors to help management get through that.
It's just normally my I would think you guys would want to get paid.
We would like to get paid for Heaven's Sakes. If somebody offers as John mentioned 15 to $20 a share down on their daughters long. This has been going on for how many years.
Randy Liggett: For heaven's sakes, if somebody offers, as John mentioned, $15 to $20 a share, sign on the dotted line. This has been going on for how many years? This is all fine and dandy, but we keep throwing I mean, we just talk about the same old stuff every conference call, and it's like management does not listen to one thing investors are just throwing out there for ideas. I mean, look at it. Look at where the stock closed today. I mean, $1.50, and I haven't even done the math on the reverse split. I'm sure somebody on here probably knows that. When is management gonna wake up and listen to a few things that we are suggesting? Go hire an advisor, please. I mean, I don't know what else to say.
And you know this is all fine and Dandy, but we keep growing I mean, we're just talking about the same old stuff every conference call and flight management does not listen the one thing investors.
Alright, just throwing out there for ideas.
And you know I.
I mean, we look at where the stack what was that.
I mean, $1.50 and I haven't even I haven't even done the math on the reverse split I'm sure somebody on here, probably knows that but wind is management going to wake up and listen to a few things that we're suggesting go higher.
Zero.
Please I mean, I don't know what else to say, okay, where do we stand in negotiations with.
Randy Liggett: Also, where do we stand in the negotiations with the local government on this natural gas we've been talking about for how many years now? I mean, I can't count the years. I'm gonna be dead before I'm joking when I say that, but I hope not because, I mean, the value's there and it's like we don't do anything. That's what I'd like to hear about.
No.
The local government on this gas natural gas, we've been talking back for how many years now.
I mean, I can't count the years.
It'll be dead before all I'm joking, when I say that but I hope not because I mean, the values there and in fact, we don't do anything.
You guys would have liked to hear back.
Okay. Thank you I'm done 40 minutes, sorry, sorry.
Helen Xu: Okay. Thank you.
Randy Liggett: I'm done for a minute. Sorry, Helen. Sorry.
Oh, Okay. It's okay. It's okay don't worry I got you.
Helen Xu: Okay. It's okay. Don't worry. I got you.
Helen Xu: 刘总，就是这个问题是来自Randy的，Randy是老的投资人，他经常参加咱们这个电话会议。他的主要问题就是说，他看到了公司这么多年的努力，我们一直是致力于在运营方面，然后公司运营得也很好，但是他好奇公司也是每次在季报的时候听取投资人的意见。但是因为股价表现不好，就不说就像刚才这样提到的$15、$20出售公司的事情，但是看到公司目前的股价，我们就认为这个公司管理层是不是应该醒一醒？如何回馈股东，把股价提升上来。还有就是考虑一下他们的建议，进行第三方的一个IR公司，帮助公司去做这个事情，把股价提升上来。
Those aren't just two Robbins is should I be Randy that that'd be nice.
Sure she thought rather towards the purchase accounting that happens if you don't how he does it have problems and doing so.
Our goals are to shed some light on your I'm done well naive it shouldn't take me and tell me you are not considering any Ah ha and <expletive>.
Oh, how cheap on schedule shows well, yes, we have made sure that you've all of this whole change. It holds in there you get a whole bunch. It you know what you have got a handful. So before I was just kind of got hit you on teeth out of that sure quite a actually quite cancels will go into the shipyard does it come out once a more kind of yeah wasn't Georgia, they do histological consular guanase home should be.
Like in Asia.
So the issue I don't have a teacher.
He is from China, how to ship.
How does that come there Jamie Pierson look out who should be sound vomit, you are going to get bundled into that she's going to disappear backward yeah tissue shop.
Yeah.
Okay.
Yeah.
A woman with call.
Xiaobin Liu: 我们会考虑这个问题，就是怎么样地把股东的利益放在优先的位置，怎么样地来提升公司的股价。
Call It quickly to go in.
Joe sits America.
Uh huh.
Or at least on that you'll see in a way to put me on the chicken go Stifel Joe.
Hum.
Helen Xu: Mm-hmm.
Hi.
Xiaobin Liu: 我们原来本身公司有一些产品，产品线比较完整了以后，我们在请IR公司来大力宣传推广公司。当然现在我们也会提前跟这些IR公司做一些接触，也会听取他们的意见。
Thank you it won't really change.
Interesting.
It shouldn't be a rundown I hope.
Oh I'm sorry.
Because they're trying to jettison take off also.
They said they want me to wait just a teacher whoever we're going to go into place it gives us.
It's interesting since you come to you.
Hmm.
Helen Xu: OK. Hi, Andy, thanks very much for your comments. We want to say that we have been always thinking about our shareholders, you know, and how to reward our shareholders. At the beginning or maybe like last quarter, previous quarters, we were thinking that because, you know, we have many production lines, we want to have all our production lines to be like more, you know, online or finished. We can talk to IR firm to see how they can give us idea based on our ideal business model in order to help our investors increase our shares. Now, based on all these comments and based on the current situation, we may think it in advance and we will go to talk, consider go to talk with the IR firm to see based on, you know, this, what we can do now.
Okay.
Hi, Andy Thanks, Ram I polyol.
Comments.
And yet.
We want to say that we have been always and they're thinking about our shareholders, you know and how to reward our shareholders.
I think the beginning I'll, maybe back last quarter previous quarter as we were thinking that because you know we have many production night. We wanted to have all our production guys to be more you know online all finished.
He can talk to a firm to see holiday can you ask the idea based on our ideal business model.
And in order to help our investors increase our shares.
I can now based on all of these comments and the based on the current situation. We may seem convinced at alone and we will go to talk can see they'll go to talk about was the Arab to see based on you know what we can do now.
Hoping you can help us do more promotion.
Helen Xu: Hopefully can help us, you know, do more promotion and to increase the awareness of the company and increase our rewards to our shareholders.
And to increase the awareness.
Of the company and that.
Chris I'll give voice to our shareholders.
I mean, that's fine and Dandy, but we're not doing anything to do it I mean I wanted to see you know, we talked about and talk about and I know I'm going on and on I'm going to get off in a minute.
Randy Liggett: I mean, that's fine and dandy, but we're not doing anything to do it. I mean, I want to see, you know, we talk about it. I know I'm going on and on. I'm going to get off in a minute. It's the same thing. I mean, you could call, you have Chinese investment bankers, you have international investment bankers that work all over China. I mean, I just don't get it. We're spending all this money all of a sudden on flood prevention, and yet we don't want to go out and retain somebody to help us realize the value in the company? I don't get it. I mean, I really don't.
If you're saying right. There I mean, you can call you had Chinese investment bankers do you had international investment bankers that work all over China.
I mean, I, just don't get it where we're spending all this money all of a sudden them.
Yeah, we don't want to go out and regain somebody to help us realize the value in the company I don't get it.
I really got it okay.
Helen Xu: OK。
Randy Liggett: You know me, I've been around a long time, Helen.
And you know me I've been around a long time and you know it yeah I know.
Helen Xu: Yeah, I know you.
[laughter], yes, ma'am I gotcha.
Randy Liggett: Yes, ma'am.
Helen Xu: I got you. Yeah, I got you.
I gotcha.
Okay, what about I noticed you.
Randy Liggett: OK, what about?
Helen Xu: I understand.
Randy Liggett: What about the local government? Go ahead, I'm sorry.
Got it.
Yes.
Helen Xu: Yes. Yeah, I understand you, Bobby. That's why I miss produce.
Yes.
Okay.
That's why I E.
<unk>.
Yes, Matt I mean, you know and there would be no reason to turn down 15 or $20 more afternoon. If somebody were to make that I mean, no weird I think shareholders would jump up and down for Joy and say with marriage, I mean, where are we with the negotiations with the local government in natural gas.
Randy Liggett: Yes, ma'am. I mean, you know, there would be no reason to turn down $15 or $20 tomorrow afternoon if somebody were to make that. I mean, my lord, I think shareholders would jump up and down for joy, and so would management. I mean, where are we with the negotiations with the local government on natural gas? I don't think he answered that, unless I missed it.
I didn't I don't think he answered that unless I missed it.
Helen Xu: 刘总，那就是还是刚才Randy在说，希望公司能实际确确实实地做一些事情，跟IR公司或者投行开始沟通这个事情。第二点就是他想问一下，我们在四川项目跟当地政府的沟通怎么样了？
Okay, Oh, that's usually a hydro comes at a.
Randy it's actually registration I'm going to now.
C. J S fishery, that's the way he or she kept the alcohol and so forth for all kinds of alternate Michigan.
It just depends on what he had just shot weapon, that's trying to I'm going to jump in Oklahoma's them yeah.
Okay.
Okay.
Hum.
Xiaobin Liu: 由于四川政府有一些新的想法，以及我们周边有一些竞争对手的出现，所以现在正在抓紧跟政府沟通这些事情，现在还不能最后确定。
Sometimes out of retirement to you sure Oh.
He said he would get telephone did you view of Adobe and juices.
She'd been Jason lesions at journeys.
Does it concern.
Those ones you said you have seen the hypertonia of her children.
Oh, Hi, Andy because you know in the Sichuan project, Sean probably project that you all 10000 and they have some they have some new ideas come out in their mind and there are some new competitors put us in a.
Helen Xu: Hi, Andy. Because you know, in the Sichuan project, Sichuan Province project, the local government, they have some new ideas come out in their mind. There are some new competitors in the industry also, you know, come out. We are still doing the active discussion with the local government on this project.
Does she also you know come out.
So we are still at the end of the discussion.
Local governments on this project.
Your cat.
Randy Liggett: Okay. I mean, have y'all even thought about going to China PetroChina? What's the big company that has the natural gas find next to where y'all own the land? What's the big company? I mean, I don't know why we don't go to them and try to do a joint partnership. I just don't get it. Then I'm going to keep quiet, Helen, and thank you for your help, as usual.
I mean have you even thought about going to China, Patrick what what's the big what's the big companies that has natural gas that next next to wear.
Yeah, I'll aim of land once that got the Big company I mean, I don't know why we don't go to them.
And tried to do a joint partnership I, just don't get it.
Now I'm going to keep quiet.
Thank you for your help as usual.
[laughter] No World Cup Yeah, Okay.
Helen Xu: 就是为什么公司不去找中石油做一个合作呢？就旁边的那个。
Yeah.
So should I take our amazement goes up huge out whom she also even though it was one.
The problem in Geneva.
Tokyo Tasha <unk>.
Xiaobin Liu: 中石油它是想把我们吞并掉，而不是一个合作。
Shambaugh, but it wouldn't be in there I presume that's all.
Helen Xu: Mm-hmm.
Xiaobin Liu: 所以我们现在跟它还无法达成一个具体的合作意见。
There were machines out of just any sort of second half I will find out very quickly.
But what you get.
Mhm.
Helen Xu: Because you know, PetroChina, instead of cooperation, they just want to merge the company. We think this is not what we want. That's why we were looking for the cooperation with local governments, you know. During the discussion with local governments and there are some new competitors come out, and the governments have some new ideas in their minds, you know. That's why this discussion is still ongoing.
So because you know China mantra, they do not tell they instead of you know call patient. They just wanted too much as a company.
So we seem to be not so what do we want so that's why we were looking for the cooperation with local governments you know.
And the jewelry that discussion with you don't call government and there are some new competitors had come out.
And then Dan Gardner to have some new ideas easier mind you know so that's why this discussion is still out there.
Great.
Okay.
Randy Liggett: Okay. One other quick question since you brought it up. I mean, what did they want to buy? Did they just want to buy that natural gas field or what were they talking about?
A quick question since you brought it up I mean did they what what did they want a bad because they just weren't a bad that natural gas field or what are they talking about.
Do you mean, China Mitchell.
Helen Xu: You mean PetroChina?
Randy Liggett: Yes, ma'am. Yes, ma'am.
Yes, ma'am, yes ma'am.
Yeah.
A little less known Joseph.
Helen Xu: 刘总，那就是中石油这边，他们是想要怎么样子的吞并呢？是它只想要我们的天然气，还是想把我们整个的井，包括我们的矿区全部弄走？
Don't feel good about how much youre going to shake out the analysis, the 'twenty and now she's had you shall woman that's involved.
Catchy how you found that wasn't the John glad that he thought he had Napa Holt, Michigan once you cancel Georgia.
Bill.
Yeah.
Hum.
Xiaobin Liu: 反正谈判是一个复杂的过程，政府有政府的一些想法，还有其他公司，也包括中石油，他们有各自的一些想法。在没有最后确定以前，这些事情都还是不确定的。
With either your share it just a quarter.
Joe if we owe it to them for their use yourself out high yield Chicago, Yeah backwards I'll show, how many are good for the sheer telephone than me with just what you're doing agenda here switching gears, a little harsh, but Chilean though.
Okay Hi.
Helen Xu: OK. Hi, Randy, you know the discussion on this kind of agreement, no matter with local governments or PetroChina or other companies, it's very complicated. There are a lot of items or criteria under discussion.
And you know the discussion on these kinds of agreements no neither ways a local governments all perpetual channel either companies.
It's very complicated, but they are a lot of items.
Oh, crikey or is a to discuss and yes until it's finalized and until we can have you know us I know.
Randy Liggett: Yes, ma'am.
Helen Xu: until it's finalized and until we can have a final decision or whatever, we cannot talk too much about it.
You know decision Oh, whatever we cannot sit you know talk too much about it.
Okay, well I mean, one last comment please go hire an advisor.
Randy Liggett: Okay. Well, I mean one last comment. Please go hire an advisor this week. There are plenty of them out there that would take you on. Spend a little bit of money with them and let them see what they can come up with, please. Thank you, Helen. As usual.
Week, there are plenty of them out there that would take alwan stand a little bit of money with them to let them see what they can come up with please go ahead.
As usual okay.
Helen Xu: Okay.
Randy Liggett: Appreciate it.
Helen Xu: Okay. Thank you. You are welcome.
Okay. Thank you.
Jim.
The next question comes from because the whole idea.
Operator 2: The next question comes from Tom Brown.
Okay. Okay.
Helen Xu: OK。
Private investor Tom.
Operator 2: Private investor Tom, please proceed.
Please proceed.
Thank you for taking my questions.
Tom Brown: Thank you for taking my questions. I have a few questions. I hope you can hear me.
I have a few questions I hope you can hear me.
Yes, I've got to you Tom.
Helen Xu: Yes, I got you, Tom.
Tom Brown: Thank you, Helen. The typhoons they hit in 2018 and 2019, and we are in 2023. I want to understand the reasoning for proceeding with this flood prevention program at this stage. I want to understand the management's thought process on why the decision was made to proceed with this flood prevention program currently. The second question, I have a series of questions, but just on the flood prevention. I want to understand why the management notified investors only after it had already spent a third of the projected expense for it. Is there a reason for this delay in notifying the shareholders? I also want to understand why a decision was made to proceed with the flood prevention at this stage.
Hello.
So you know.
No the.
The typhoons they hit in 2018 and 2019.
And we are in 2023.
I want to understand the reasoning for proceeding with this flood prevention program at this stage, so I want to understand the management.
You know Todd process on why the decision was made.
Two.
Proceed with this flood prevention program currently and the second question I have a series of questions, but just on the flood prevention I want to understand why the management notified investors only after it had spend already spend a third of the predicted expense.
So is there a reason for this delay and in no defined the shareholders and I also want to understand why the decision was made to proceed with the flood prevention at this stage.
Okay I got you.
Helen Xu: 刘总，这就是问题是来自Tom的，他有两个问题。第一，就是说这个台风是在18年、19年发生的，为什么公司现在2023年决定做这个项目？然后第二个问题是关于费用的问题，就是说这个$15 million的开支在第三个季度就发生了，为什么公司在最后的季报的时候才披露出来这个项目，不是说早点披露这个事儿？
Oh that's interesting.
Golden visualize it home that held out another T D tissue conservation measures referred to it would have already got ebay Adrianne flash on that based on local and central direction that I didn't understand your chicken surgical xiaomi.
Yeah, Yeah, you should take a plane to go see them eventually Joe Shoen for I think the Shaw media and have had you said it sounds like you do to fashion innovation, we're going to be doing for us actually hold the did you ship out of Chicago, that's a pure flash or the xiaomi.
Well it's.
It's all got to catch up.
Yeah.
Okay.
And so it's very good you guys doing a bunch of old day, so well see how they drove into you. Just you can contradict each year Kimco is do you kind of have gone as high as that she territory gotcha that mature so anything else that you're inducing a downward I don't want to get out there.
Xiaobin Liu: 首先一个，18、19年发生洪灾以后，我们也是要对周边的一些情况进行一些评估，以及看看观察一下其他厂家是怎么做的。所以这个事情就是耽误了一两年。我们觉得现在做也是一个比较合理和成熟的一个方案，这是第一个。第二个就是我们认为这个是一个公司正常的一个经营行为，所以就是在发生的当季度就报了出来，我们并没有想拖延这个时间。
And that's why you see the big affiliate with tenants what are your Butler.
Just a visa there are good just as lesser or when they're ready to go seek or just.
In Costa Rica.
I know you Gotta Giga Genie should show you just your choices.
Uh-huh concentrate don't you do Japan, that's what I want the meal. So.
Toyota Michigan.
Okay. So firstly hum.
Helen Xu: OK. Firstly, Tom, you know, after the typhoons in 2018 and 2019, we have to evaluate the surrounding area and our mining area to think how to do this. We see other companies, how they do it until they finish. We can learn some knowledge from them and exchange from them. At this stage, we think it's a very appropriate period, time, stage to do this since we have more knowledge and we learned a lot from others. Second question, we think this cost was like a normal operating expense, we did not think it's very abnormal. This happened in Q3, and we just disclosed it in our 10-Q to our investors.
Because you know after the typhoon <unk> in 2018 and 19.
We want to tweak we have to evaluate you know they surround him area and our main area of twisting tips on how to do. This then we see you know other companies how they do it until they finish than we've had in doesn't sound knowledge from them and a kid from Dynamo and after this date.
We think it is a very appropriate period time stage to do this he has said we had more about age and we learned a lot from others.
Good question.
Cause you know we think this cluster was a like a normal operating expense, which is now thinking it's a very you know.
No I'll know more so race happening in Q3 and.
We just disclosed in our 10-Q to our investors.
Thank you that sounds like a reasonable explanation I I want to get a sense of.
Tom Brown: Thank you. That sounds like a reasonable explanation. I want to get a sense of what the $15 million expense was, and I think from one of the other gentleman's question, I understood that the remaining nearly $35 million was going to be spent in Q4. Is that assumption correct?
The $15 million expense Ah Watson I think from one of the other Gentleman's question I understood that the remaining nearly $35 million was going to be spent in Q4 is that assumption correct.
Yeah.
Yeah.
Helen Xu: Yes. Probably yes.
Probably yes.
Okay.
Tom Brown: Okay. My next set of questions are with regard to, previous gentleman asked if the management would consider a buyout at $15 or $20 a share. I think the CEO answered that they would not consider it. I wanted to get a sense of why they would not even consider it. The reason is, around 2017, there was around $209 million in the company's books. As of this release, there's only half of that, around $104 million or so. We have gone through a period where there's not been much return for shareholders. It's been not much value has been created. Actually, a lot of value has been decimated in the last seven years or so.
My my.
My next set of questions with regard to you know previous implement.
Is the management would consider buyout at 15 or $20 a share and I think the C U E.
And said that they would not consider it and I wanted to get a sense of why they would not even consider that and the reason as you know 2017, there was around $209 million in the company's books.
And I felt this release, there's only half of that $104 million or so and so we have gone through a period, where there's not been much return for shareholders. It's been not much value has been created actually a lot of value has been decimated in the last.
Last seven years, or so and so I just wanted to get a sense from a shareholders' perspective, why the management would not even consider a buyout at 15 or $20 million in Oh authority.
Tom Brown: I just want to get a sense from a shareholder's perspective, why the management would not even consider a buyout at $15 or $20 million, or $15 or $20 per share.
Sure.
Hi, Tom I think because this question, we just discussed in previous quarters.
Helen Xu: Hi, Tom. I think this question we did discuss in previous Qs. Firstly, company, we have our Bromine Business Segment, even though now it looks very good. Because bromine price is very low now. Once bromine price increase or come back to its normal price, our business is very profitable in this bromine segment. Our natural gas in Sichuan Province also have a big potential because the concentration of the bromine resources there is very rich. Third, our chemical business, even though now our chemical business are not online yet, we have very confidence in all this segment as well. Overall, bromine resources are limited resources, like very few production in the world. Overall, we think we have quite confidence in our company. That's why we do not consider to sell it at $15 or $20 currently.
Firstly company, we'd have even though our bromine business segment, even though not you know it's in the radical with Asahi and not be called bromine prices and I know now but went from your price increase.
And Chris I'll come to back to its normal price our business. It is a very profitable use this bromine segment than our natural gas in Sichuan Province of also have a peak of potential because the concentration of the bromine Celsius.
Very adult reach.
So to our technical business, even though now chemicals are not online yet, but we have very confidence in all these segments as well so already.
And then Rami associates I didn't take the resources like our various steel production in the work. So overall, we think that all we have quite a competency in our company. So that's why we do not the country either to sell it at a 15, a time they've done a currency.
Yeah.
We have reached the end of the question and answer session and I will now turn the call back to Helen for any closing remarks.
Operator 2: We have reached the end of the question and answer session. I will now turn the call back to Helen for any closing remarks.
Hi, operator, I think if there is no more questions. We can close for the call today, because it's not 10 minutes come out.
Helen Xu: Hi, Operator. I think if there is no more question, we can close for the call today because it's time limit, time out.
Absolutely yeah.
Operator 2: Absolutely.
Helen Xu: I'm welcome if any shareholders have question, can feel free to email me and I will happy to respond them on the emails as well. Just keep in touch.
Well come at you for any shareholders have question Kathy Brady to email me.
And I was happy to respond.
Then on the emails as well.
Just keeping in touch.
Yeah.
Thank you.
Operator 2: Thank you. This concludes today's conference.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
Helen Xu: You're welcome.
Operator 2: You may disconnect your lines at this time. Thank you for your participation.
Okay. Thank you you have good night.
Helen Xu: Okay. Thank you. You have a good night.
Yeah.
Yes.
