As of December 31, 2012, Gulf Resources had cash of $65.2 million, current liabilities of $11.0 million, and shareholders' equity of $264.2 million. At fiscal year end, the Company had working capital of $96.3 million and a current ratio of 9.8. For the twelve months ended December 31, 2012, the Company generated $20.5 million in cash flow from operations, primarily attributable to net income, and used $37.9 million in investing activities, mainly due to purchases of property, plant and equipment.
According to the economic statistic and market observations for the first quarter in 2013, we believe that the economic condition is recovering at a low pace as we previously predicted. As the increase in industrial activities leads to more market demand for our segment products, the market price of bromine also reached 20,000RMB in the beginning of March 2013. Although the uncertainties of economic policies and the rising cost of labor and materials will continue to bring challenges to our operation, we are confident that we can achieve the earning targets set forth in the financial guidance announced in January this year.Subsequent Events
- In January 2013, the Company provided its 2013 financial forecast; please refer to the link http://finance.yahoo.com/news/gulf-resources-provides-2013-fiscal-133000384.html for further details.
- The Company completed the renovation of the commercial building which was acquired on September 25, 2012 and announced the commencement of the new office building in January, 2013.