Gulf Resources Churns Out More Bromine to Meet the Demand for Disinfectants
A critical ingreident for disenfectancts, Gulf devotes its resources on meeting the coronavirus-related surge in demand.
Gulf Resources, Inc. (Nasdaq: GURE) announced Monday that it has started commercial production of bromine and crude salt in two of its factories.
In a statement today, the Shouguang-based company said that factories No. 1 and No. 7, which started trial production in March, expects production at those facilities to ramp up over the next four to six weeks based on the strong market demand.
"Gulf Resources believes that there will be strong demand for its products, especially because of the pandemic of COVID-19. Bromine is an important component of disinfectants," Gulf said in a statement today.
Bromine is used in making water purification compounds, medicines and sanitizers. In addition, the U.S. Centers for Disease Control and Prevention (CDC) has stated that "proper operation, maintenance, and disinfection (e.g. with chlorine and bromine) of pools and hot tubs should remove or inactivate the virus that causes COVID-19."
By midday Monday, Gulf was trading nearly 2% higher, at $3.43 per American depositary share. Despite filing to extend the due date for its fiscal year 2019 financials, the stock has remained steady despite a turbulent equities market, trading mostly in the range of $3.00 and $3.50 per share.
However, it was forced to implement a reverse stock split in January after struggling to meet Nasdaq's minimum required bid price of $1 per share.
Founded in 1989, Gulf makes products in bromine, crude salt, and specialty chemical products in China.
In the three months through September, Gulf's revenues reached $4.5 million, representing a year-over-year increase of more than 1200%. Net loss was narrowed to $13 million compared with $19.5 million from the same period in the previous year. Gulf intends to report its full-year 2019 financials on or before April 14.
Going forward, Gulf expects to begin trial production at its factories No. 4 and No. 9 in April and commence commercial production in May.