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8-K - GULF RESOURCES, INC. | e606803_8k-gulf.htm |
Exhibit 99.1
NEW YORK
and SHANDONG, China, April 14 /PRNewswire-Asia-FirstCall/ -- Gulf Resources,
Inc. (Nasdaq:GFRE - News) ("Gulf
Resources" or the "Company"), a leading manufacturer of bromine, crude salt and
specialty chemical products in China, today announced that it has raised
guidance for fiscal year 2010.
The
Company now expects revenue between $146 million and $150 million, up from the
previously announced range of $128 million to $132 million and net income
between $44 million and $46 million, up from the previously announced range of
$36 million to $38 million. This represents growth in revenue between 32% and
36%, and growth in net income between 44% and 50% as compared with fiscal year
2009. This updated guidance does not take into account the impact of any
potential acquisitions.
"This
adjustment to our guidance was mainly due to an increase in bromine prices that
has exceeded our initial expectations. Since the beginning of 2010, bromine
prices have increased more than 25% from $2,250 to $2,850 per metric ton by the
end of March 2010," said Mr. Xiaobin Liu, CEO of Gulf Resources.
Growing
demand for bromine due to the global economic recovery has been the main driver
of increased bromine prices. Downstream industries utilizing bromine, such as
pesticide and flame retardant production, in addition to real estate, automobile
sales and home appliance sales in rural areas, have experienced sustained growth
in China. In addition, demand is supported by the development of more
sophisticated applications for bromine. For example, bromine compounds have been
successfully used in reducing mercury emissions which face stricter restrictions
globally. According to Cheminfo, a news portal under China National Chemical
Information Center (CNCIC), bromine used for mercury emission reduction will
reach 150,000 metric tons by 2015, equivalent to 15% to 20% of the total
projected global bromine production capacity.
In
addition to strong demand, a shortage of bromine supply is supporting prices. In
recent years, the improvement and development of China's basic farmland
protection system and rapid economic development along the coast have reduced
the bromine mining area and the ability to expand bromine production. Extremely
cold weather in Shandong province has also reduced bromine production, which may
lead to lower output levels in 2010 compared with 2009.
"We
expect this demand and supply dynamic will persist in 2010, which will support
high bromine prices throughout 2010 and help us to reach our new financial
guidance for the year," concluded Mr. Liu.
About
Gulf Resources, Inc.
Gulf
Resources, Inc. operates through two wholly-owned subsidiaries, Shouguang City
Haoyuan Chemical Company Limited ("SCHC") and Shouguang Yuxing Chemical Industry
Co., Limited ("SYCI"). 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 & gas field explorations and as papermaking chemical agents.
For more information about the Company, please visit http://www.gulfresourcesinc.cn
.
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, anticipated bromine prices and demand for bromine, 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.
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For
further information, please contact:
Gulf Resources, Inc.
David
Wang, VP of Finance
Email:
gfre.2008@vip.163.com
Helen
Xu
Email:
beishengrong@vip.163.com
Web: http://www.gulfresourcesinc.cn
CCG
Investor Relations Inc.
Linda
Salo, Sr. Financial Writer
Phone:
+1-646-922-0894
Email:
linda.salo@ccgir.com
Crocker
Coulson, President
Phone:
+1-646-213-1915 (New York)
Email:
crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
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