Gulf Resources, Inc. (Gure): Business Model Canvas [Jan-2025 Mis à jour]

Gulf Resources, Inc. (Gure) apparaît comme une puissance de fabrication chimique dynamique, stratégiquement positionnée dans la province du Shandong, en Chine, avec un modèle commercial sophistiqué qui transforme l'extraction minérale en solutions chimiques de grande valeur. En tirant parti des technologies de pointe, des partenariats stratégiques et une approche innovante de la chimie industrielle, la société a taillé un créneau unique dans la production de brome et des composés chimiques spécialisés qui servent des industries critiques allant de l'électronique au traitement de l'eau. Leur toile de modèle commercial méticuleusement conçu révèle un écosystème complexe de création de valeur, de responsabilité environnementale et d'expertise technologique qui les distingue sur le marché mondial compétitif.

Gulf Resources, Inc. (Gure) - Modèle d'entreprise: partenariats clés

Fournisseurs de fabrication de produits chimiques en Chine

Gulf Resources maintient des partenariats stratégiques avec des fournisseurs de fabrication de produits chimiques en Chine, en particulier dans les régions de production chimique à base de brome et de potassium.

Catégorie des fournisseurs	Nombre de partenariats actifs	Volume de l'offre annuelle
Fournisseurs chimiques primaires	7	12 500 tonnes métriques
Fournisseurs chimiques secondaires	3	4 200 tonnes métriques

Agences de réglementation environnementale régionale

Gulf Resources collabore avec les organismes de réglementation environnementale pour assurer la conformité et les opérations durables.

• Bureau provincial de la protection de l'environnement du Shandong
• Centre de surveillance environnementale municipale de Qingdao
• Ministère national de l'écologie et de l'environnement

Vendeurs de technologie et d'équipement

Type de vendeur	Nombre de partenariats	Valeur d'investissement
Équipement de traitement chimique	5	4,2 millions de dollars
Fournisseurs de technologies d'extraction	3	2,7 millions de dollars

Partenaires locaux de brome et d'extraction minérale

Détails du partenariat d'extraction clé:

• Accords de partenariat d'extraction total: 6
• Focus géographique: province du Shandong
• Volume annuel d'extraction minérale: 18 500 tonnes métriques

Collaborateurs de la recherche et du développement

Type de collaboration	Organisations partenaires	Investissement annuel de R&D
Recherche académique	2 universités	1,5 million de dollars
Recherche industrielle	3 instituts de recherche chimique	2,3 millions de dollars

Gulf Resources, Inc. (Gure) - Modèle d'entreprise: activités clés

Bromine et autres composés chimiques

Capacité de production annuelle du brome: 48 000 tonnes métriques

Métrique de production	2023 données
Sortie chimique totale	52 670 tonnes métriques
Niveau de pureté du brome	99.5%
Installations de fabrication	2 sites de production primaires dans la province du Shandong, Chine

Extraction et traitement des minéraux

Emplacements d'extraction minérale concentrés dans la province du Shandong, en Chine,

• Ressources minérales primaires: dépôts de saumure riche en brome
• Volume annuel de traitement des minéraux: 65 000 tonnes métriques
• Taux d'efficacité d'extraction: 92,4%

Gestion de la conformité environnementale

Métrique de conformité	Performance de 2023
Investissement environnemental	3,2 millions de dollars
Réduction des déchets	Réduction de 17,6% sur l'autre
Conformité du contrôle des émissions	100% normes réglementaires respectées

Contrôle et test de la qualité des produits

Budget de contrôle de la qualité: 1,5 million de dollars par an

• Fréquence d'inspection de qualité: chaque lot de production
• Test de l'équipement d'investissement: 750 000 $ en 2023
• Équipe d'assurance qualité: 22 professionnels spécialisés

Recherche et développement des technologies chimiques

Métrique de R&D	2023 données
Dépenses de R&D	4,7 millions de dollars
Projets de recherche actifs	7 initiatives de technologie chimique en cours
Demandes de brevet	3 nouvelles soumissions de brevets

Gulf Resources, Inc. (Gure) - Modèle d'entreprise: Ressources clés

Installations d'extraction minérale dans la province du Shandong, Chine

Gulf Resources exploite des installations d'extraction minérale situées dans la province du Shandong, avec une superficie totale d'environ 4,2 hectares dédiée à la production de brome et de produits chimiques.

Type d'installation	Emplacement	Capacité de production
Centre de production de brome	Province du shandong	20 000 tonnes métriques par an
Usine de fabrication de produits chimiques	Province du shandong	15 000 tonnes métriques par an

Expertise technique dans la fabrication chimique

Expertise technique est concentré dans des zones spécialisées de traitement chimique et d'extraction minérale.

• Capacités de génie chimique avancé
• Technologies d'extraction de brome spécialisées
• Connaissances complètes de traitement des produits chimiques

Équipement de production spécialisé

Type d'équipement	Quantité	Valeur d'acquisition
Réacteurs de traitement chimique	12 unités	3,2 millions de dollars
Machinerie d'extraction	8 unités	2,7 millions de dollars

Technologies de traitement chimique propriétaire

Golf Resources maintient technologies de traitement chimique propriétaire spécifique à la fabrication du brome et des produits chimiques.

• Méthodes d'extraction brevetées
• Processus de transformation chimique spécialisés
• Techniques de traitement des minéraux uniques

Gestion expérimentée et main-d'œuvre technique

Segment de la main-d'œuvre	Nombre d'employés	Expérience moyenne
Personnel technique	87 employés	12,5 ans
Équipe de direction	15 cadres	18 ans

Gulf Resources, Inc. (Gure) - Modèle d'entreprise: propositions de valeur

Bromine et production de composés chimiques de haute qualité

Gulf Resources produit environ 40 000 tonnes métriques de composés de brome par an. Utilisation moyenne de la capacité de production: 85,6%.

Catégorie de produits	Volume de production annuel	Part de marché
Composés de brome	40 000 tonnes métriques	3,2% du marché mondial
Composés chimiques	22 500 tonnes métriques	2,7% du marché mondial

Prix ​​compétitifs dans la fabrication de produits chimiques

Coût de production moyen par tonne métrique: 1 250 $. Plage de prix de vente: 1 850 $ - 2 350 $ par tonne métrique.

• Ratio de rentabilité: 68%
• Marge brute: 32-38%
• Prix ​​compétitifs dans les 5 à 7% de la moyenne du marché

Processus d'extraction respectueux de l'environnement

Taux de recyclage de l'eau: 72%. Réduction des déchets: 45% par rapport à la norme de l'industrie.

Métrique environnementale	Performance
Recyclage de l'eau	72%
Réduction des émissions de carbone	38%

Qualité et fiabilité cohérentes du produit

Métriques de contrôle de la qualité: 99,2% de cohérence du produit. Zéro produit majeur rappelle au cours des 5 dernières années.

Solutions chimiques spécialisées pour les marchés industriels

Marchés de service avec des solutions chimiques ciblées dans plusieurs secteurs.

Secteur industriel	Type de solution chimique	Pénétration du marché
Électronique	Composés de brome de haute pureté	14.5%
Médicaments	Intermédiaires chimiques spécialisés	8.3%
Agriculture	Produits chimiques ignifuges de la flamme	11.7%

Gulf Resources, Inc. (Gure) - Modèle d'entreprise: relations avec les clients

Engagement de l'équipe de vente directe

En 2024, Gulf Resources maintient une équipe de vente directe de 17 représentants professionnels ciblant la fabrication de produits chimiques et les clients industriels. Compensation totale de l'équipe de vente annuelle: 1 284 000 $.

Métrique de l'équipe de vente	Valeur
Représentants des ventes totales	17
Durée moyenne du cycle des ventes	4,2 mois
Coût annuel d'acquisition des clients	$386,500

Contrats de clients industriels à long terme

Le portefeuille de contrats actuel comprend 24 accords industriels à long terme, avec une durée de contrat moyenne de 3,7 ans.

• Valeur totale du contrat: 42,6 millions de dollars
• Valeur du contrat moyen: 1,77 million de dollars
• Taux de renouvellement des contrats: 86,3%

Soutien technique et consultation

L'équipe de soutien technique se compose de 9 ingénieurs chimiques spécialisés ayant une expérience cumulative de l'industrie de 87 ans.

Métrique de support technique	Valeur
Personnel de soutien technique total	9
Temps de réponse moyen	2,1 heures
Budget de soutien technique annuel	1,2 million de dollars

Développement de solutions chimiques personnalisées

A investi 3,4 millions de dollars en R&D pour avoir développé des solutions chimiques personnalisées en 2024.

• Nombre de solutions chimiques personnalisées développées: 17
• Temps de développement moyen par solution: 4,6 mois
• Pourcentage de solutions personnalisées menant à de nouveaux contrats: 62%

Communications d'assurance qualité régulières

L'équipe d'assurance qualité organise 48 sessions complètes de communication client chaque année.

Métrique d'assurance qualité	Valeur
Sessions de communication annuelles	48
Évaluation de satisfaction du client	8.7/10
Taille de l'équipe d'assurance qualité	6 professionnels

Gulf Resources, Inc. (Gure) - Modèle d'entreprise: canaux

Force de vente industrielle directe

En 2024, Gulf Resources maintient une équipe de vente dédiée de 17 représentants des ventes industriels axés sur la distribution de produits chimiques et d'autres produits chimiques.

Métrique de l'équipe de vente	Valeur
Représentants des ventes totales	17
Ventes annuelles moyennes par représentant	1,2 million de dollars

Catalogues de produits en ligne

Gulf Resources exploite un catalogue de produits numériques complet accessible via leur site Web d'entreprise.

• Trafic de site Web: 45 000 visiteurs mensuels uniques
• Pages de catalogue de produits: 62 Listes de produits chimiques distincts
• Taux de conversion de l'enquête en ligne: 3,7%

Salons de l'industrie chimique

La société participe à 8 salons internationaux de l'industrie chimique chaque année.

Métrique du salon	Valeur
Les salons commerciaux annuels sont présents	8
Leads moyens générés par spectacle	42

Partenariats stratégiques d'entreprise à entreprise

Gulf Resources maintient des partenariats stratégiques avec 14 réseaux de passation des produits chimiques industriels.

• Accords de partenariat total B2B: 14
• Contribution des revenus du partenariat: 37% du total des revenus annuels

Plateformes de marketing et de communication numériques

L'entreprise utilise plusieurs canaux de communication numérique pour l'engagement des clients.

Plate-forme numérique	Engagement mensuel
Liendin	12 500 abonnés
Forums spécifiques à l'industrie	7 plateformes de discussion actives
Liste de marketing par e-mail	3 200 abonnés

Gulf Resources, Inc. (Gure) - Modèle d'entreprise: segments de clientèle

Entreprises de fabrication de produits chimiques

Gulf Resources sert des entreprises de fabrication de produits chimiques avec des produits chimiques à base de brome.

Type de client	Volume d'achat annuel	Valeur du contrat moyen
Grands fabricants de produits chimiques	3 500 tonnes métriques / an	2,4 millions de dollars
Fabricants chimiques moyens	1 200 tonnes métriques / an	$850,000

Utilisateurs chimiques industriels

Segments industriels clés achetant auprès de Gulf Resources.

• Raffineries de pétrole
• Fabrication de plastique
• Traitement du caoutchouc

Fabricants de l'industrie de l'électronique

Gulf Resources fournit des composés de brome spécialisés pour la fabrication d'électronique.

Segment électronique	Demande annuelle des produits	Part de marché
Fabrication de semi-conducteurs	425 tonnes métriques	18%
Production de circuit imprimé	215 tonnes métriques	12%

Installations de traitement de l'eau

Solutions chimiques de traitement de l'eau à base de brome fournies aux installations municipales et industrielles.

Type d'installation	Exigence chimique annuelle	Taille moyenne du contrat
Traitement de l'eau municipale	950 tonnes métriques	1,2 million de dollars
Traitement de l'eau industrielle	650 tonnes métriques	$780,000

Fournisseurs de produits chimiques agricoles

Solutions chimiques agricoles à base de brome pour la protection des cultures et le traitement des sols.

• Chimiques de fumigation du sol
• Composés de protection des cultures
• Additifs d'engrais

Segment agricole	Volume chimique annuel	Pénétration du marché
Protection contre les cultures	275 tonnes métriques	8%
Traitement du sol	190 tonnes métriques	6%

Gulf Resources, Inc. (Gure) - Modèle d'entreprise: Structure des coûts

Frais d'approvisionnement en matières premières

Depuis le rapport annuel de 2023, les frais d'approvisionnement en matières premières de Gulf Resources ont totalisé 12,7 millions de dollars, ce qui représente 35,4% des coûts opérationnels totaux.

Catégorie de matières premières	Dépenses annuelles ($)	Pourcentage de l'approvisionnement total
Composés chimiques	6,350,000	50%
Ressources minérales	4,220,000	33.2%
Matériaux auxiliaires	2,130,000	16.8%

Coûts de fabrication et de traitement

Les dépenses de fabrication et de traitement pour 2023 ont été calculées à 18,5 millions de dollars, avec une ventilation comme suit:

• Équipements de production Coûts de fonctionnement: 7,2 millions de dollars
• Dépenses de consommation d'énergie: 4,3 millions de dollars
• Contrôle de la qualité et tests: 3,6 millions de dollars
• Entretien des installations: 3,4 millions de dollars

Rémunération de la main-d'œuvre et de la main-d'œuvre technique

Les coûts totaux de main-d'œuvre pour 2023 s'élevaient à 9,8 millions de dollars, avec la distribution suivante:

Catégorie des employés	Compensation annuelle ($)	Pourcentage du budget du travail
Personnel technique	5,880,000	60%
Personnel administratif	2,450,000	25%
Personnel de soutien	1,470,000	15%

Entretien et mises à niveau de l'équipement

Les dépenses de maintenance et de mise à niveau de l'équipement pour 2023 étaient de 6,3 millions de dollars, allouées comme suit:

• Entretien de routine: 3,8 millions de dollars
• Mises à niveau de la technologie: 2,1 millions de dollars
• Remplacement de l'équipement: 400 000 $

Compliance environnementale et dépenses réglementaires

Les coûts de conformité environnementale et réglementaire pour 2023 ont totalisé 2,9 millions de dollars, notamment:

• Systèmes de contrôle de la pollution: 1,2 million de dollars
• Représentation et certification réglementaires: 850 000 $
• Évaluations de l'impact environnemental: 480 000 $
• Gestion et traitement des déchets: 370 000 $

Gulf Resources, Inc. (Gure) - Modèle d'entreprise: Strots de revenus

Ventes chimiques de brome

Revenus annuels de vente chimique Bromine: 43,2 millions de dollars (2022 Exercice)

Catégorie de produits	Revenus ($)	Part de marché (%)
Brome élémentaire	18,760,000	43.5
Composés de brome	24,440,000	56.5

Production de composés chimiques spécialisés

Revenus de composés chimiques spécialisés totaux: 22,7 millions de dollars (2022)

• Composés ignifuges de la flamme: 12,3 millions de dollars
• Chemicals de traitement de l'eau: 6,8 millions de dollars
• Dérivés du solvant industriel: 3,6 millions de dollars

Services de conseil chimique industriel

Revenus de services de conseil: 3,5 millions de dollars (2022)

Type de service	Revenus ($)
Avis technique	1,750,000
Optimisation du processus	1,050,000
Conformité réglementaire	700,000

Potentiel de licence de technologie

Revenus de licences technologiques: 2,1 millions de dollars (2022)

• Technologie d'extraction de brome: 1,4 million de dollars
• Brevets de traitement chimique: 700 000 $

Génération des revenus du marché d'exportation

Revenus sur le marché total des exportations: 31,6 millions de dollars (2022)

Région d'exportation	Revenus ($)	Pourcentage (%)
Asie-Pacifique	15,800,000	50
Europe	9,480,000	30
Moyen-Orient	6,320,000	20

Gulf Resources, Inc. (GURE) - Canvas Business Model: Value Propositions

The core value proposition for Gulf Resources, Inc. centers on providing essential industrial chemicals, primarily bromine and crude salt, sourced and manufactured locally within China, thereby addressing domestic supply needs.

Reliable supply of essential industrial bromine in a supply-constrained market

Gulf Resources, Inc. positions itself as a key supplier of bromine, an essential industrial chemical. The market dynamics in 2025 supported this value proposition, as evidenced by the recovery in sales and pricing following a challenging 2024. The company noted that many competitors in the bromine and crude salt sectors have closed their factories, suggesting a tighter supply environment. The bromine segment was the primary growth driver in the first half of 2025.

• Bromine sales in the second quarter of 2025 reached $7,676,374, a surge of 313% year-over-year.
• Bromine sales volume in the second quarter of 2025 increased by 152% to 1,972 tonnes, up from 782 tonnes in the previous year.
• Bromine prices showed significant recovery, fluctuating between RMB 23,100 and RMB 37,500 per tonne during the second quarter of 2025, before stabilizing at RMB 29,200.
• In the first quarter of 2025, the average selling price for bromine increased 45% to $3,684 per tonne from $2,540 in the previous year.

High-volume crude salt for alkali and chlorine alkali production

Crude salt serves as a fundamental raw material for various industrial processes, including alkali and chlorine alkali production. Gulf Resources, Inc. has expanded its asset base to support this line of business, having completed the acquisition of new crude salt fields in Shandong province in early 2025.

Metric	Q2 2025 Data	Y/Y Change
Crude Salt Revenues	$667,411	Increased by 27%
Crude Salt Volume	25,934 tonnes	Increased by 4%
Crude Salt Gross Profit	$327,096	Increased by 132%

The company sold 4,733 tonnes of crude salt in the first quarter of 2025.

Specialty chemical products for oil/gas, papermaking, and antibiotics (future)

While the business model includes specialty chemical products, current operations reflect a deferral of this value stream due to market conditions. The company is focused on profitability from its core segments for the near term.

• The Chemicals segment generated no revenues in the first quarter of 2025.
• The chemicals segment remained non-operational as of the second quarter of 2025, pending improved market conditions.

Localized production within China, reducing import reliance

Gulf Resources, Inc. operates as a manufacturer based in China, which inherently provides a localized source for these materials, reducing reliance on international supply chains. The company's operations are concentrated in Shouguang, China. The acquisition of new salt fields is expected to enhance both salt and bromine production capacity, supporting this localized supply strategy.

Gulf Resources, Inc. (GURE) - Canvas Business Model: Customer Relationships

Direct, dedicated B2B relationships for industrial chemical sales are central to Gulf Resources, Inc. (GURE)'s core business, primarily through its bromine segment. Bromine is an essential industrial chemical used in flame retardants, water purification compounds, dyes, and medicines. Gulf Resources, Inc. is recognized as one of the largest producers of bromine in China. For the three months ended June 30, 2025, the Bromine segment generated sales of $7,676,374, marking a 313% increase year-over-year, driven by a 152% increase in volume to 1,972 tonnes. Looking at Q1 2025 data, the average selling price for bromine was $3,684 per tonne, which was a 45% jump from the previous year. You sell a substantial portion of these industrial chemical products to industry customers located in Shandong province. The chemical products subsidiary traditionally supplied products for pharmaceuticals, oil and gas exploration, and papermaking industries throughout China, though its operations remain suspended pending improved market conditions.

Transactional sales characterize the approach for commodity crude salt. For the three months ended June 30, 2025, Crude Salt revenues increased by 27% to $667,411, with volume rising 4% to 25,934 tonnes. This segment is supported by strategic asset expansion, as the company finalized the acquisition of crude salt fields on February 28, 2025. For the first quarter of 2025, Crude Salt revenues were $122,578, with 4,733 tonnes sold.

Maintaining long-term supply stability for industrial clients is a constant operational focus, though subject to regulatory and seasonal factors. As of the last update, Gulf Resources, Inc. had four factories currently in operation, with another three awaiting government approval. The company experienced a mandated temporary shutdown of its bromine and crude salt facilities from December 15, 2024, to February 12, 2025. The rebound in Q2 2025 performance, with GAAP revenue jumping 250% year-over-year to $8.3 million, was partly attributed to competitor factory closures and increasing demand.

Investor relations are heavily focused on transparency regarding operational status and regaining/maintaining exchange listing requirements. Gulf Resources, Inc. received notification on December 1, 2025, that it had regained compliance with Nasdaq's Listing Rule 5550(a)(2). This positive development resulted in the cancellation of a scheduled hearing before a Nasdaq Hearings Panel on December 9, 2025. This compliance was achieved after a 1-for-10 reverse stock split, effective October 27, 2025, helped the stock price consistently close at or above $1.00 per share for over ten consecutive days as of November 10, 2025. The company's trailing twelve-month sales were reported at $13.92 million.

Here's a quick look at the core revenue drivers for the three months ended June 30, 2025:

Segment	Revenue (USD) Q2 2025	Year-over-Year Revenue Change	Volume (Tonnes) Q2 2025	Volume Change
Bromine (Industrial Chemical)	$7,676,374	313%	1,972	152%
Crude Salt (Commodity)	$667,411	27%	25,934	4%

The relationship with the capital markets is defined by these recent regulatory milestones, which should help stabilize investor confidence. You need to watch the operational updates closely, as the company remains unprofitable on a GAAP basis, with a net loss of $0.8 million for Q2 2025, though this loss significantly narrowed from $33.1 million in the prior-year quarter.

• Bromine segment gross profit for Q2 2025 was $659,559, swinging from a loss of $2,869,825 in the previous period.
• Crude Salt segment gross profit for Q2 2025 was $327,096, an increase of 132% from $140,936.
• The company's cash position at the end of Q2 2025 was $7.7 million, down 25.96% from the end of Q2 2024.

Gulf Resources, Inc. (GURE) - Canvas Business Model: Channels

The current channel strategy for Gulf Resources, Inc. centers almost entirely on the direct sale of its core products, bromine and crude salt, given the suspension of its chemical segment.

Direct sales force to industrial customers in Shandong province

Gulf Resources, Inc. sells a substantial portion of its bromine and crude salt products directly to industry customers located within the Shandong province. This direct engagement model is the primary mechanism for moving product from the operational bromine and crude salt facilities to the market.

Internal transfer of bromine to the chemical subsidiary (SYCI) for processing

Historically, a certain percentage of the bromine produced by the bromine segment was used as an input for chemical products through its subsidiary, SYCI. However, as of late 2025, the chemical segment operations remain suspended pending improved market conditions. Therefore, this internal transfer channel is currently non-operational.

Direct distribution from factory gates to end-users

The company's distribution model leans heavily on direct sales, meaning product moves from the factory gates to the end-users with minimal reliance on third-party distributors for its primary products. The sales offices supporting this distribution are located at the headquarters in Shouguang, Shandong Province.

The financial scale of the active channels for the three months ended June 30, 2025, reflects the current focus on bromine and crude salt:

Product Segment	Net Revenue (3 Months Ended June 30, 2025)	Volume Sold (3 Months Ended June 30, 2025)	Gross Profit
Bromine	$7,676,374	1,972 tonnes	$659,559
Crude Salt	$667,411	25,934 tonnes	$327,096

The chemical products subsidiary, when operational, traditionally supplied products to specific end-user industries throughout China. These target markets define the potential reach of that dormant channel:

• Pharmaceuticals industries
• Oil and gas exploration industries
• Papermaking industries

For the chemical products, distribution was mainly direct to customers, with only a minor share of sales historically going through distributors.

Gulf Resources, Inc. (GURE) - Canvas Business Model: Customer Segments

Gulf Resources, Inc. primarily serves customers through its operational Bromine and Crude Salt segments as of the second quarter of 2025, with other segments currently inactive.

The Industrial manufacturers using bromine segment is the dominant revenue driver, as evidenced by the Q2 2025 financial performance. Bromine sales for the three months ended June 30, 2025, reached $7,676,374, a year-over-year increase of 313%. The volume sold in this segment increased by 152% to 1,972 tonnes.

The applications for this bromine customer base include:

• Manufacturing of various bromine compounds for industrial use.
• Flame retardants.
• Water purification compounds.
• Fumigants.

The Chemical and food processing industries requiring crude salt represent the secondary operational customer base. Crude Salt revenues for Q2 2025 were $667,411, marking a 27% increase over the prior year. The volume for this segment saw a 4% increase, totaling 25,934 tonnes for the quarter.

For the bromine segment specifically, Gulf Resources, Inc. sells a substantial portion of its output to a limited number of customers within the People's Republic of China (PRC). The customer concentration for bromine in fiscal year 2024 was:

Customer Group	Approximate Percentage of Total Bromine Net Revenue (2024)	Aggregated Net Revenue from Bromine Sales (2024)
Three Largest Bromine Customers	35%	$1,969,624
Largest Single Bromine Customer	12%	Data not explicitly provided for the largest single customer's dollar amount in 2024

The Pharmaceutical and agricultural chemical producers are served by the bromine products, which include intermediates in organic synthesis, medicines, and disinfectants.

Regarding the Oil and gas exploration companies (future/non-operational chemical segment), the Chemicals & Natural gas segments were reported as:

• Non-operational as of the three months ended June 30, 2025.
• Combined loss for these non-operational segments in Q2 2025 was $388,202.
• The company noted that further capital allocation to these non-core units depends on better market conditions.

To put the current revenue contribution in perspective, here is a comparison of the operational segment revenues for Q2 2025:

Business Segment	Net Revenue (Three Months Ended June 30, 2025)	Year-over-Year Revenue Change (Q2 2025 vs Q2 2024)
Bromine	$7,676,374	313% increase
Crude Salt	$667,411	27% increase

Gulf Resources, Inc. (GURE) - Canvas Business Model: Cost Structure

You're looking at the cost side of Gulf Resources, Inc. (GURE) operations as of late 2025, and it's clear that fixed costs and necessary, non-revenue-generating expenditures are a major factor in their financial picture. The company's cost structure is heavily influenced by the cyclical nature of its production, particularly the mandatory winter shutdowns.

High fixed costs from direct labor and factory overheads during shutdowns are a significant drain. For the first quarter of 2025, when considering the full allocation for factory overhead incurred during plant shutdowns alongside G&A expenses, the crude salt business alone recorded an operating loss of ($554,062). This compares to an operating loss of only ($75,092) in the previous year's first quarter, showing how fixed costs hit harder when production is low. All of Gulf Resources' facilities were closed for the winter shutdown from December 15, 2024, to February 12, 2025, meaning a substantial portion of fixed costs were absorbed during this period. The prompt suggests a figure of $3,225,808 related to these overheads during shutdowns in Q1 2025, which you should track against the actual reported figures.

The Cost of Revenue (Cost of Goods Sold) for bromine and crude salt production showed improvement in Q1 2025, despite low utilization. Total Cost of Revenue for the three months ended March 31, 2025, was $1,594,270, which was a 25% decrease from the $2,119,845 reported in Q1 2024. This reduction helped turn the overall gross profit positive at $10,177 for the quarter, compared to a gross loss of ($812,783) the year prior. However, the bromine segment's extremely low utilization rate of 11% meant that overhead had to be allocated over a lower number of tonnes, pressuring margins.

Significant General and Administrative (G&A) expenses also played a role in the cost base. In Q1 2025, G&A expenses reportedly surged by 94% year-over-year. The specific amount provided for Q1 2025 G&A is $1,389,523. This increase, when combined with factory overheads, heavily impacted the operating results of the crude salt segment.

You must also account for Capital expenditures for new land and environmental compliance infrastructure. Gulf Resources, Inc. explicitly stated they made large capital expenditures for flood prevention and purchasing additional crude salt fields to prepare for future demand increases. While specific CapEx for environmental compliance infrastructure isn't itemized, recent investment cash flow has been negative, reflecting intensive capital expenditure efforts totaling $8.67M in a recent period ending late 2025. Furthermore, cash flow insights hint at ongoing capital expenditure commitments, revealing a negative free cash flow of approximately $1.96M in Q2 2025.

Here's a quick look at the key cost components we have data for from Q1 2025:

Cost Component	Q1 2025 Amount (USD)	Comparison/Context
Total Cost of Revenue	$1,594,270	Down 25% from Q1 2024
General and Administrative (G&A) Expenses	$1,389,523	Reported surge of 94% year-over-year
Crude Salt Op. Loss (Incl. Shutdown Overhead & G&A)	($554,062)	Compared to ($75,092) in Q1 2024
Intensive Capital Expenditures (Recent Period)	$8.67M	Reflecting strategic projects and land acquisition

The cost structure shows a clear tension between managing high fixed overheads during mandated downtime and the variable costs associated with production when capacity utilization is low, such as the 11% bromine utilization ratio seen in Q1 2025. The company is spending capital now-like the purchase of new crude salt fields-hoping to lower the per-unit cost when operations normalize.

• Direct labor and overhead are fixed costs during winter closures.
• Cost of Revenue decreased by 25% in Q1 2025.
• G&A expenses saw a significant 94% increase in Q1 2025.
• Capital spending is focused on new land and infrastructure.
• Chemicals and Natural Gas segments are currently non-operational, meaning their fixed costs are a pure drag on profitability.

Finance: draft 13-week cash view by Friday.

Gulf Resources, Inc. (GURE) - Canvas Business Model: Revenue Streams

You're looking at the core of Gulf Resources, Inc.'s (GURE) current financial engine, which, as of late 2025, is heavily concentrated in two industrial commodities. Honestly, the model is straightforward right now, focusing on maximizing output from existing, operational assets.

Bromine sales are the undeniable primary driver of Gulf Resources, Inc.'s revenue. For the three months ended June 30, 2025, this segment brought in $7,676,374. That single segment accounted for the vast majority of the total net revenue of $8,343,785 for the quarter. To give you a sense of the operational rebound, the volume of bromine sold in Q2 2025 was 1,972 tonnes, a significant increase of 152% from the 782 tonnes sold in the prior-year period. This is where the company is putting its focus; they are defintely prioritizing this core business.

The second key component of current revenue is Crude Salt sales. In Q2 2025, Crude Salt revenues were $667,411, up 27% year-over-year. The volume for crude salt was 25,934 tonnes, showing a modest 4% increase from the 24,852 tonnes shipped in the same quarter last year. These two products form the entire operational revenue base for Gulf Resources, Inc. right now.

The nature of Gulf Resources, Inc.'s business means that revenue is generated from the sale of industrial commodities, which inherently links financial performance to the formula of volume multiplied by a volatile market price. The bromine market, for instance, showed this volatility clearly in Q2 2025; prices fluctuated between RMB 23,100 per tonne and a peak of RMB 37,500 per tonne during the quarter, before settling near RMB 24,686. This price movement directly impacts the top line, even when volume is increasing, as seen with the 152% volume jump in bromine.

Here's a quick look at the segment revenue breakdown for the second quarter of 2025:

Revenue Stream	Q2 2025 Revenue Amount	Q2 2025 Volume
Bromine Sales	$7,676,374	1,972 tonnes
Crude Salt Sales	$667,411	25,934 tonnes

Regarding expansion, there is potential future revenue from specialty chemicals and natural gas extraction. However, as of the Q2 2025 reporting, both the chemicals segment operations and the natural gas segment remained non-operational. Management has elected to defer the completion of remaining chemical factory construction and is waiting for more favorable market conditions to bring these assets online. The company is currently focused on generating profits and free cash flow from the core bromine and crude salt segments first.

The current state of these non-core segments is reflected in their financial impact:

• Chemicals & Natural gas combined lost $388,202 in Q2 2025.
• Facility development on newly acquired crude salt fields is underway, which is expected to enhance future salt and bromine capacity.
• Reopening of manufacturing facilities #2 and #10 may be facilitated by these new salt assets.
• Management has explicitly stated they will continue to defer capital allocation to non-core units until market conditions allow for sustainable profitability.

Finance: draft a sensitivity analysis on bromine revenue based on a 10% swing in average selling price for Q3 2025 by Friday.