Gulf Resources Reports 250% Revenue Increase to $8.34 Million in Q2 2025

Gulf Resources, Inc. reported significant financial improvements in its latest 10-Q filing for the second quarter of 2025, with net revenue reaching $8.34 million, a 250% increase from $2.38 million in the same period last year. The company attributed this growth primarily to a substantial rise in bromine sales, which accounted for approximately 92% of total revenue. The average selling price of bromine increased by 64%, while the quantity sold surged by 152%. Despite the revenue growth, Gulf Resources recorded a net loss of $773,777 for the quarter, a notable reduction from a net loss of $33.1 million in the prior year, largely due to decreased operational losses and the absence of significant asset disposal losses that had impacted the previous year’s results.

In terms of operational metrics, the company reported a gross profit of $986,655 for the quarter, compared to a gross loss of $2.73 million in the same quarter of 2024. The cost of net revenue increased by 44% to $7.36 million, reflecting the higher sales volume. General and administrative expenses also rose by 44% to $994,765, contributing to the overall loss. The company’s operational efficiency improved, as evidenced by a reduction in direct labor and factory overheads incurred during plant shutdowns, which fell by 58% compared to the previous year.

Gulf Resources has also made strategic moves to enhance its market position, including the acquisition of crude salt fields through its subsidiary, Shouguang Hengde Salt Industry Co. Ltd. This acquisition is expected to bolster the company’s crude salt production capabilities and expand its market share. The company is actively working on obtaining necessary governmental approvals for its chemical production facilities, which have been closed since 2017 due to regulatory compliance issues. The anticipated resumption of operations at these facilities could further enhance revenue streams in the future.

As of June 30, 2025, Gulf Resources reported total assets of $164.63 million, a slight decrease from $169.46 million at the end of 2024. Current assets increased to $20.28 million, while current liabilities decreased to $14.79 million, resulting in a current ratio of 1.37. The company’s cash and cash equivalents stood at $7.74 million, down from $10.08 million at the end of the previous fiscal year. The company continues to monitor its liquidity closely, as it aims to meet its operational needs and obligations in the coming months.

Looking ahead, Gulf Resources remains focused on expanding its bromine and crude salt production while navigating regulatory challenges in its chemical segment. The company is optimistic about its growth prospects, particularly with the anticipated resumption of production at its chemical facilities and the successful integration of its recent acquisitions. However, management has acknowledged the ongoing risks associated with market conditions and regulatory compliance, which could impact future performance.