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Gulf Resources Reports 2nd Quarter 2015 Financial Statements

SHOUGUANG, China, Aug. 10, 2015 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced its financial statements for the second quarter ended June 30, 2015.

The following tables showing the income statement, the balance sheet, and cash flows were inadvertently left off the press release issued Friday afternoon. While all this information is available in the 10-Q, which was filed on Friday, we are including them in this press release to make it easier for our shareholders to see our full financial results.

GULF RESOURCES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Expressed in U.S. dollars)
(UNAUDITED)
Three-Month Period Ended June 30, Six-Month Period Ended June 30,
2015 2014 2015 2014
NET REVENUE
Net revenue $ 49,350,070 $ 31,752,814 $ 84,260,899 $ 57,344,990
OPERATING INCOME (EXPENSES)
Cost of net revenue (32,280,120) (22,566,923) (57,760,978) (41,301,327)
Sales, marketing and other operating expenses (120,746) (27,215) (202,176) (49,729)
Research and development cost (63,470) (32,558) (111,705) (63,338)
Exploration cost -- -- (325,840) --
Loss from disposal of property, plant and equipment -- (9,866) -- (9,866)
General and administrative expenses (2,434,246) (1,701,601) (4,415,363) (3,022,119)
Other operating income 109,901 116,921 227,203 234,605
(34,788,681) (24,221,242) (62,588,859) (44,211,774)
INCOME FROM OPERATIONS 14,561,389 7,531,572 21,672,040 13,133,216
OTHER INCOME (EXPENSE)
Interest expense (51,013) (52,428) (101,866) (105,140)
Interest income 108,182 119,171 235,143 225,646
INCOME BEFORE TAXES 14,618,558 7,598,315 21,805,317 13,253,722
INCOME TAXES (3,843,298) (1,933,503) (5,714,786) (3,302,572)
NET INCOME $ 10,775,260 $ 5,664,812 $ 16,090,531 $ 9,951,150
COMPREHENSIVE INCOME:
NET INCOME $ 10,775,260 $ 5,664,812 $ 16,090,531 $ 9,951,150
OTHER COMPREHENSIVE INCOME (LOSS)
- Foreign currency translation adjustments 1,475,380 (34,932) 365,032 (2,939,120)
COMPREHENSIVE INCOME $ 12,250,640 $ 5,629,880 $ 16,455,563 $ 7,012,030
EARNINGS PER SHARE:
BASIC $ 0.23 $ 0.15 $ 0.36 $ 0.26
DILUTED $ 0.23 $ 0.14 $ 0.36 $ 0.25
WEIGHTED AVERAGE NUMBER OF SHARES:
BASIC 45,928,234 38,726,415 44,313,537 38,662,773
DILUTED 47,143,073 39,341,228 45,319,208 39,309,946
See accompanying notes to the condensed consolidated financial statements.
GULF RESOURCES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars)
June 30,
2015
Unaudited
December 31, 2014
Audited
Current Assets
Cash $ 118,027,848 $ 146,585,601
Accounts receivable 75,429,396 41,997,862
Inventories 6,755,970 5,367,868
Prepayments and deposits 25,367 86,301
Prepaid land leases 533,290 51,024
Other receivable 559 38,272
Deferred tax assets 865 864
Total Current Assets 200,773,295 194,127,792
Non-Current Assets
Property, plant and equipment, net 127,650,293 124,350,781
Property, plant and equipment under capital leases, net 1,162,793 1,339,602
Prepaid land leases, net of current portion 5,529,022 733,560
Deferred tax assets 2,514,284 2,430,417
Goodwill 31,396,066 --
Total non-current assets 168,252,458 128,854,360
Total Assets $ 369,025,753 $ 322,982,152
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable and accrued expenses $ 16,856,838 $ 4,004,728
Retention payable 44,875 326,959
Capital lease obligation, current portion 114,171 205,128
Taxes payable 7,086,921 3,545,429
Total Current Liabilities 24,102,805 8,082,244
Non-Current Liabilities
Capital lease obligation, net of current portion 2,714,745 2,826,495
Total Liabilities $ 26,817,550 $ 10,908,739
 
Stockholders' Equity
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding $ $
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized as of June 30, 2015 and December 31, 2014; 46,276,269 and 38,911,014 shares issued; and 46,007,120 and 38,672,865 shares outstanding as of June 30,2015 and December 31, 2014, respectively 23,139 19,456
Treasury stock; 269,149 and 238,149 shares as of June 30, 2015 and December 31, 2014 at cost (599,441) (561,728)
Additional paid-in capital 94,093,265 80,380,008
Retained earnings unappropriated 198,503,449 183,480,402
Retained earnings appropriated 19,145,876 18,078,392
Cumulative translation adjustment 31,041,915 30,676,883
Total Stockholders' Equity 342,208,203 312,073,413
Total Liabilities and Stockholders' Equity $ 369,025,753 $ 322,982,152
See accompanying notes to the condensed consolidated financial statements.
GULF RESOURCES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. dollars)
(UNAUDITED)
Six-Month Period Ended June 30,
2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 16,090,531 $ 9,951,150
Adjustments to reconcile net income to net cash provided by operating activities:
Interest on capital lease obligation 101,460 104,767
Amortization of prepaid land leases 254,087 201,411
Depreciation and amortization 14,906,669 13,808,998
Loss from disposal of property, plant and equipment -- 9,866
Exchange (gain) loss on inter-company balances 24,292 (238,647)
Stock-based compensation expense 343,800 30,000
Deferred tax asset (81,460) --
Changes in assets and liabilities, net of effects of acquisition:
Accounts receivable (13,943,594) (804,584)
Inventories 268,683 (323,463)
Prepayments and deposits 67,150 (16,250)
Other receivables 37,713 --
Accounts payable and accrued expenses 4,172,413 1,229,869
Retention payable (281,241) (207,047)
Taxes payable 2,568,444 (643,039)
Net cash provided by operating activities 24,528,947 23,103,031
CASH FLOWS USED IN INVESTING ACTIVITIES
Additions of prepaid land leases (632,139) (614,773)
Proceeds from sales of property, plant and equipment -- 21,514
Purchase of property, plant and equipment -- (39,586)
Consideration paid for business acquisition (66,305,606) --
Cash acquired from acquisition 14,074,720 --
Net cash used in investing activities (52,863,025) (632,845)
CASH FLOWS USED IN FINANCING ACTIVITIES
Repayment of capital lease obligation (306,683) (304,806)
Repurchase of common stock (37,713) --
Net cash used in financing activities (344,396) (304,806)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 120,721 (1,041,878)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (28,557,753) 21,123,502
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 146,585,601 107,828,800
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 118,027,848 $ 128,952,302
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for:
Income taxes $ 3,766,955 $ 3,931,589
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Issuance of common stock upon cashless exercise of options $ 49 $ 73
Issuance of common stock for acquisition of business $ 13,373,140 $ --
See accompanying notes to the condensed consolidated financial statements.

About Gulf Resources, Inc.

Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI") and Shouguang City Rongyuan Chemical Co., Ltd. (SCRC). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and as papermaking chemical agents. And SCRC is a leading manufacturer of materials for human and animal antibiotics in China and other parts of Asia. For more information, visit www.gulfresourcesinc.com.

Forward-Looking Statements

Certain statements in this news release contain forward-looking information about Gulf Resources 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. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

CONTACT: Gulf Resources, Inc. Web: http://www.gulfresourcesinc.com Director of Investor Relations Helen Xu (Haiyan Xu) beishengrong@vip.163.com IR Manager Max Ma Max_vx@163.com

Source:Gulf Resources, Inc.