NEW YORK and SHANDONG, China, April 14
/PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. (Nasdaq: GFRE)
("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.
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
SOURCE Gulf Resources, Inc.