Gulf Resources Reports Fourth Quarter And Fiscal Year 2012 Financial Results

SHOUGUANG, China, March 18, 2013 (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 results for the fourth quarter and fiscal year ended December 31, 2012.

Fourth Quarter 2012 Highlights

• Revenue was $22.0 million, a year-over-year decrease of 27.8%
• Gross profit was $4.2 million, a year-over-year decrease of 59.5%
• Gross margin decreased to 19.1% from 34.1% for the fourth quarter of 2011
• Income from operations was $2.6 million as compared to $1.9 million in the fourth quarter of 2011
• Operating margin was 12.0% compared to 6.2% for the fourth quarter of 2011
• Net income was $1.9 million or $0.05 per basic and diluted share, versus $1.0 million, or $0.03 per basic and diluted share a year ago, a year-over-year increase of 90%

Fiscal Year 2012 Highlights

• Revenue was $101.7 million, a year-over-year decrease of 38.4%
• Gross profit was $28.3 million, a decrease of 62.5%
• Gross margin was 27.8%, compared to 45.7% in 2011
• Net income was $15.0 million, or $0.43 per basic and diluted share, a year-over-year decrease of 51.5% from $31.0 million, or $0.89 per basic and diluted share
• Cash totaled $65.2 million as of December 31, 2012

"For the year 2012, our top-line revenue had significantly decreased due to negative impact from the challenging market environment. The revenue of bromine, one of our major business segments, had also experienced the largest decline in recent years and inevitably affected our overall operating performance in year 2012. During the year, we engaged in product facilities acquisitions in order to benefit from the lowered assets pricing and implemented various cost control and saving measures to overcome the difficulties of the operating environment. Although the macroeconomic tightening policies in China continued to result in the weakened market demand for a number of our products in the fourth quarter of the year, our operating expenses in the fourth quarter had significantly decreased as a result of the cost control implementation, and therefore we were able to record a higher operating profit in the fourth quarter 2012, as compared to the same period last year," said Xiaobin Liu, Chief Executive Officer of Gulf Resources.

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