Attached files
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| 8-K - GULF RESOURCES, INC. | e614005_8k-gulf.htm |
Exhibit 99.1
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.
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GULF RESOURCES, INC.
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AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
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(Expressed in U.S. dollars)
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(UNAUDITED)
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Three-Month Period Ended June 30,
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Six-Month Period Ended June 30,
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2015
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2014
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2015
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2014
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NET REVENUE
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Net revenue
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$ | 49,350,070 | $ | 31,752,814 | $ | 84,260,899 | $ | 57,344,990 | ||||||||
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OPERATING INCOME (EXPENSES)
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Cost of net revenue
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(32,280,120 | ) | (22,566,923 | ) | (57,760,978 | ) | (41,301,327 | ) | ||||||||
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Sales, marketing and other operating expenses
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(120,746 | ) | (27,215 | ) | (202,176 | ) | (49,729 | ) | ||||||||
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Research and development cost
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(63,470 | ) | (32,558 | ) | (111,705 | ) | (63,338 | ) | ||||||||
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Exploration cost
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-- | -- | (325,840 | ) | -- | |||||||||||
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Loss from disposal of property, plant and equipment
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-- | (9,866 | ) | -- | (9,866 | ) | ||||||||||
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General and administrative expenses
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(2,434,246 | ) | (1,701,601 | ) | (4,415,363 | ) | (3,022,119 | ) | ||||||||
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Other operating income
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109,901 | 116,921 | 227,203 | 234,605 | ||||||||||||
| (34,788,681 | ) | (24,221,242 | ) | (62,588,859 | ) | (44,211,774 | ) | |||||||||
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INCOME FROM OPERATIONS
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14,561,389 | 7,531,572 | 21,672,040 | 13,133,216 | ||||||||||||
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OTHER INCOME (EXPENSE)
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Interest expense
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(51,013 | ) | (52,428 | ) | (101,866 | ) | (105,140 | ) | ||||||||
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Interest income
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108,182 | 119,171 | 235,143 | 225,646 | ||||||||||||
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INCOME BEFORE TAXES
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14,618,558 | 7,598,315 | 21,805,317 | 13,253,722 | ||||||||||||
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INCOME TAXES
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(3,843,298 | ) | (1,933,503 | ) | (5,714,786 | ) | (3,302,572 | ) | ||||||||
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NET INCOME
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$ | 10,775,260 | $ | 5,664,812 | $ | 16,090,531 | $ | 9,951,150 | ||||||||
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COMPREHENSIVE INCOME:
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NET INCOME
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$ | 10,775,260 | $ | 5,664,812 | $ | 16,090,531 | $ | 9,951,150 | ||||||||
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OTHER COMPREHENSIVE INCOME (LOSS)
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- Foreign currency translation adjustments
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1,475,380 | (34,932 | ) | 365,032 | (2,939,120 | ) | ||||||||||
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COMPREHENSIVE INCOME
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$ | 12,250,640 | $ | 5,629,880 | $ | 16,455,563 | $ | 7,012,030 | ||||||||
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EARNINGS PER SHARE:
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BASIC
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$ | 0.23 | $ | 0.15 | $ | 0.36 | $ | 0.26 | ||||||||
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DILUTED
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$ | 0.23 | $ | 0.14 | $ | 0.36 | $ | 0.25 | ||||||||
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WEIGHTED AVERAGE NUMBER OF SHARES:
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BASIC
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45,928,234 | 38,726,415 | 44,313,537 | 38,662,773 | ||||||||||||
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DILUTED
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47,143,073 | 39,341,228 | 45,319,208 | 39,309,946 | ||||||||||||
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See accompanying notes to the condensed consolidated financial statements.
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GULF RESOURCES, INC.
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AND SUBSIDIARIES
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(Expressed in U.S. dollars)
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June 30,
2015
Unaudited
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December 31, 2014
Audited
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Current Assets
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Cash
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$ | 118,027,848 | $ | 146,585,601 | ||||
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Accounts receivable
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75,429,396 | 41,997,862 | ||||||
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Inventories
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6,755,970 | 5,367,868 | ||||||
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Prepayments and deposits
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25,367 | 86,301 | ||||||
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Prepaid land leases
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533,290 | 51,024 | ||||||
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Other receivable
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559 | 38,272 | ||||||
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Deferred tax assets
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865 | 864 | ||||||
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Total Current Assets
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200,773,295 | 194,127,792 | ||||||
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Non-Current Assets
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Property, plant and equipment, net
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127,650,293 | 124,350,781 | ||||||
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Property, plant and equipment under capital leases, net
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1,162,793 | 1,339,602 | ||||||
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Prepaid land leases, net of current portion
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5,529,022 | 733,560 | ||||||
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Deferred tax assets
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2,514,284 | 2,430,417 | ||||||
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Goodwill
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31,396,066 | -- | ||||||
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Total non-current assets
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168,252,458 | 128,854,360 | ||||||
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Total Assets
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$ | 369,025,753 | $ | 322,982,152 | ||||
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Liabilities and Stockholders' Equity
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Current Liabilities
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Accounts payable and accrued expenses
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$ | 16,856,838 | $ | 4,004,728 | ||||
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Retention payable
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44,875 | 326,959 | ||||||
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Capital lease obligation, current portion
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114,171 | 205,128 | ||||||
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Taxes payable
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7,086,921 | 3,545,429 | ||||||
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Total Current Liabilities
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24,102,805 | 8,082,244 | ||||||
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Non-Current Liabilities
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Capital lease obligation, net of current portion
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2,714,745 | 2,826,495 | ||||||
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Total Liabilities
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$ | 26,817,550 | $ | 10,908,739 | ||||
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Stockholders' Equity
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PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding
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$ | $ | ||||||
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COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized as of June 30, 2015 and December 31, 2014; 46,276,269 and 38,911,014 shares issued; and 46,007,120 and 38,672,865 shares outstanding as of June 30,2015 and December 31, 2014, respectively
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23,139 | 19,456 | ||||||
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Treasury stock; 269,149 and 238,149 shares as of June 30, 2015 and December 31, 2014 at cost
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(599,441 | ) | (561,728 | ) | ||||
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Additional paid-in capital
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94,093,265 | 80,380,008 | ||||||
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Retained earnings unappropriated
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198,503,449 | 183,480,402 | ||||||
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Retained earnings appropriated
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19,145,876 | 18,078,392 | ||||||
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Cumulative translation adjustment
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31,041,915 | 30,676,883 | ||||||
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Total Stockholders' Equity
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342,208,203 | 312,073,413 | ||||||
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Total Liabilities and Stockholders' Equity
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$ | 369,025,753 | $ | 322,982,152 | ||||
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See accompanying notes to the condensed consolidated financial statements.
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GULF RESOURCES, INC.
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AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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(Expressed in U.S. dollars)
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(UNAUDITED)
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Six-Month Period Ended June 30,
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2015
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2014
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net income
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$ | 16,090,531 | $ | 9,951,150 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities:
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Interest on capital lease obligation
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101,460 | 104,767 | ||||||
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Amortization of prepaid land leases
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254,087 | 201,411 | ||||||
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Depreciation and amortization
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14,906,669 | 13,808,998 | ||||||
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Loss from disposal of property, plant and equipment
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-- | 9,866 | ||||||
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Exchange (gain) loss on inter-company balances
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24,292 | (238,647 | ) | |||||
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Stock-based compensation expense
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343,800 | 30,000 | ||||||
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Deferred tax asset
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(81,460 | ) | -- | |||||
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Changes in assets and liabilities, net of effects of acquisition:
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Accounts receivable
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(13,943,594 | ) | (804,584 | ) | ||||
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Inventories
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268,683 | (323,463 | ) | |||||
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Prepayments and deposits
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67,150 | (16,250 | ) | |||||
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Other receivables
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37,713 | -- | ||||||
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Accounts payable and accrued expenses
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4,172,413 | 1,229,869 | ||||||
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Retention payable
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(281,241 | ) | (207,047 | ) | ||||
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Taxes payable
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2,568,444 | (643,039 | ) | |||||
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Net cash provided by operating activities
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24,528,947 | 23,103,031 | ||||||
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CASH FLOWS USED IN INVESTING ACTIVITIES
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Additions of prepaid land leases
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(632,139 | ) | (614,773 | ) | ||||
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Proceeds from sales of property, plant and equipment
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-- | 21,514 | ||||||
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Purchase of property, plant and equipment
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-- | (39,586 | ) | |||||
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Consideration paid for business acquisition
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(66,305,606 | ) | -- | |||||
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Cash acquired from acquisition
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14,074,720 | -- | ||||||
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Net cash used in investing activities
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(52,863,025 | ) | (632,845 | ) | ||||
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CASH FLOWS USED IN FINANCING ACTIVITIES
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Repayment of capital lease obligation
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(306,683 | ) | (304,806 | ) | ||||
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Repurchase of common stock
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(37,713 | ) | -- | |||||
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Net cash used in financing activities
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(344,396 | ) | (304,806 | ) | ||||
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EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
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120,721 | (1,041,878 | ) | |||||
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NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
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(28,557,753 | ) | 21,123,502 | |||||
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CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
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146,585,601 | 107,828,800 | ||||||
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CASH AND CASH EQUIVALENTS - END OF PERIOD
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$ | 118,027,848 | $ | 128,952,302 | ||||
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
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Cash paid during the period for:
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Income taxes
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$ | 3,766,955 | $ | 3,931,589 | ||||
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SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
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Issuance of common stock upon cashless exercise of options
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$ | 49 | $ | 73 | ||||
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Issuance of common stock for acquisition of business
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$ | 13,373,140 | $ | -- | ||||
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See accompanying notes to the condensed consolidated financial statements.
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About GulfResources, 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