Earnings call transcript Q2 2023

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Operator

Greetings. Welcome to the Gulf Resources Second Quarter 2023 Earnings Conference. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

the to turn Cho. host, now will conference your over Helen I

may You begin.

Helen Xu

Good gentlemen IR and ladies evening you, Call. Gulf morning, Thank operator. XXXX Quarter and all you you Conference us Resources Second welcome Helen proposals joining and from to U.S. Xu, online I'm of to Director. of good the

join today. Our the Mr. company; call CEO Xiaobin this of Liu will also

by to those contain in forward-looking remind reining and may discussed results the you acceptance Act about business with or Accordingly, statements of update the forward-looking created obligation are factors conditions harbor additional to their beyond to and other and expressly assurance and this including and differ the entirety a that of call, circumstances are filed of production Actual can statements correct. believes in Exchange the Rule ability the the products, to listeners to to various end there economic rules. during reasonable, capabilities, subsidiary forward-looking future taking certain call. with shipments All Gulf PRC, XXXX today under SEC. like the of risks from the outbreak. existing not with in I'd to call no XXX resources make market or risk in be the production events of those risk our the will no competition Resources competition general changing any business information control. of development cautionary its subject company reflecting this those but will to bromine the be Securities corporation after number Securities statements management new such factors of the the technology, and by and product all XXXX assets forward-looking statement and other existing date factors, expectations qualified power from Xb-X account customers, the COVID into and and associated Future reflect prove our the chemicals, revise and in the oilfields new company's the and products its bonding and to this statements from detailed assumes limited are safe reports and

to of any of today, as future August addition, In Eastern the estimates reference Time. the management's the represents focus company's XXXX, performance

core link the available to website those will For you the release listen is at earlier a are for locate resin company's of to our entire details. website, through time. and on our accessible able issued through press accessible also be A please to website the this because so

will So quarter back first. call the comments. review we Mr. his of the like for to Liu to this I'd results lenten

The be this economy firstly, quarter. the look for slow So at Chinese economy let's to down. continues Chinese

in percentage. October result, XX, June sensors only during reprising roaming tonnes XX,XXX on improve heat decline prices XXXX, the may which future. from a Comet, the XX on to on roaming XX, based of been RMB -- had company as dropped Our especially had in drive not The of control for very XX. was a companies products up higher The Santee many sales impacted. the construction bromine targets of a of for impacted especially were since demand up, anticipating of control slowdown weak stock demand built com, of XX expects prices XXXX, The with

increased XXXX, RMB to In XX,XXX. August fact, omnitracs had by XX,

decline to time, U.S. price against of of in difficult estimate this other in dollar. it improvement to is at However, improvement decline the the addition timing the the

increase. opportunities should export meaning chemical for a domestic and cheaper. a In may may this chemicals that products extent, could the Over of producers of share gain be benefit other Xolbusiness for R&D from more company. our significant with the be import lower a expensive, building using and pharmaceuticals

profitable. of the companies quarter, bromine companies produce not the company made chemicals in and been industry Given from second most have that the the believe pricing bromine most on

bankruptcies, We have mainly yet see assume but to we many come. may

strong new that The the marketing seeking market and current the X to approval and cash to position company Given company has to from close its slowed we rest the for plan may protect current company build made future of balance require Bami. for code currently factoring. It current factories sheet. these Accordingly, conditions, decisions believe opening for the capital is the and do has operations. wells

to these and we a open willing not to tacit in capital We additional stronger I'm see receive expect expend sufficient have factories. until to We permission market. still result the

the However, no operate they capital profitably. can until spending point there is

The As of Asian previously delivery be it its for is remaining the equipment while announced, the company the chemical opportunities. evaluates is market believe to and will company the business also committed profitable. scanter it postponed

the disparate term, equipment. different Over however, long will request products slightly final

pollute may more For heavily restricting example, some retire more which products complex solution repayment.

a undertaking potential period, of most this the companies During doing. thorough The are the market. company review is chemical

of that Once altering it and most can the applicable trial and ensure will remainder stabilized, So review market equipment. delivered equipment have test production. Then is assembled. the begin and our will finalized the is it we the has we

approximately the So XXXX. at weakness reported an of million the economy broad X loss approximately roaming for the huge months and look ended of results. XX,XXX a let's the and decline quarter the for June now the $X.X financial after-tax price second of Because Chinese RMB in company XX,

strong. business of $XX potential X-month the numbers company These the our cash end operations quarter, reflected approximately period, our during of of the sheet million. However, second At the the strength from model. generated was balance

$XX.X $XX.XX million and have which $XXX million, per $XX million, We cash working strengthening approximately net generating cash, share, liabilities, strong balance approximately shut have all per share, representing representing our cash sheet. and share. which downturn $XXX million flow $X.XX were represented equity, rather shareholder free ship, to per capital, approximately very which pleased $XX.XX while per approximately is $XX approximately minus is The net representing cash of and

general in particular economy market booming and improve. future company objectives, to So for and the the coming that the goals expects the in

August million. selling end second XX% average quarter more price from the increased second market was during were XX, of the If forming second selling may price the bromine price during would is approximately quarter second higher was X, meaning and As gross loss have prices At previous average an prices the XX% been $X.X of have more for the RMB you with price billion of was XXXX, that quarter. have is $X.X increase the from quarter since roaming roaming from than second provided representing during quarter, approximately us of taken based $XXX.X,mXl, the the increase been XX% imply us of which since which approximately the revenues approximately profit had million end revenues additional and market quarter. have in slightly study XX% -- to our August breakeven. before would profit bring the see our This taxes projection. on can XX% $XX that the extra

prices consider products obtain a begin factories the looking in the further, and many has to for improve for is natural minutes. So explore to continuing identify new approval present and The and for The to discussion can is remaining push needs we product struggling. market joint improved true. company will tailored in get that to and may the produce company business. for venture valent. profitably for delivered factory test company time, shares players suppressed. a our its exploration still to is production complete it a still general rest the with the when best remaining trial is production. which opportunities chemical exports to time, capital, ahead in particular, present flexibility. products, At Altececonomic are in The of ixichemical creating for and all the government still At can so company's and and use we pacing export products assembled the can equipment divided. I'm that is company bromine quite financial of to company repurchase gain be gas and broad position export roaming will The so anterican is the it our continuing and

there Substantial results, see open months to included our no X which could balance financial and venture in and if be that is parting statement, XXXX. successful but will in X the is opportunities ended will guarantee company income with In flow for cash XX, us. be sheet government. the local the you While June joint created, the statements

sales full and has a profits. XX-K, Our the lower will which contributing segments been sold and the description factors of with our our to business of SEC, present the

Xiaobin Liu

Mr. the company. I Liu's CEO the the I'm for of translation will Li, comments. Xiaobin everyone. do Hi,

welcome all, XXXX of conference quarter to call. second Gulf’s you earnings of First all

and see has been of economy. can difficult company. there industries the we time So for the Chinese our a

preparing well. for and our have source bromine will We of and on peering on we focused and capital the long-term believe ahead strategy will economy profit We see increase as improve opportunities crude us.

our is carefully products refining We plans our produce so we that the profit. level higher are of generate can chemical for plant,

to on also be We focus products that identifying continue can exported.

the to initiatives supporting shareholder flexibility support consider value. gain to So can company financial

about front moved will we for we X take partner substantial our the company While if the see we in opportunities asked -- delivery and to $XX more equipment with for shareholder drill very the If capital remaining ahead company to us. and joint site the of believe efforts performing the Currently, wells approximately could all to cutofactories. government, of and company chemical still significant able venture be from has could us. opportunities a natural is into also it companies proposed cash. factory, The bromine be the ahead our are committed gas. local X investors in should have both to is rest have action bromine the the company million approved our retaining could have company's than support can in taken do have greater increase It know plan. but not the will of contention that be value.

can will economy roaming product prices company factory will it to will find Chinese get rise. Mechanic export if open, better The and get. will

an strong originally higher than that traded more more shares of shares management do. management XXX than established gold of we in venture Our appreciate And has in our the we to years resources, compensation the the will investors joint Noone anticipated. be than price company the for see had opps wants has remained

as hiring from you so that and to for it are IR bankers for company produce committed improves. We consider investment or or financial us. steps exports. firm The other acquisitions such strong and mergers When will can generating take returns our cash business

section. we now Q&A the open are So for

Operator

Jay Thank be you. Private At from this The Instructions] a Investor. conducting we question [ph], comes Bhullar [Operator first time, will question-and-answer session.

Unidentified Analyst

in shares? I Liu. to guys Mr. to have a ask, I wanted are for question repurchase you

Helen Xu

shares? Repurchase

Unidentified Analyst

When containment. speculating that shares a for? than shareholders cash goods, and that a because just factory of we it just be in the anthromatic through could focusing terms rather on or go repurchase would go call Yes, Midwest use exporting value the timing increase of best you for alternate

Helen Xu

Okay.

explained question company in this investors has and your and company to restrictions been government So because well China by asked before, the due because on overseas as the the previously have Mogo overseas pensions. not does dollar as

share Then way can to our and it's any like share maintain to account a shareholders' is we find explained the margin way that's value. -- find company the trying and do dollar initiate with the exported. our can is which in we and to shareholders' paid be why to overseas. improve value, trying all in trying like profit So which retain company can overseas Then dollar products including consider then higher purchase dividends that

Operator

question comes Private Alan next The Parka Okay. from Investor. [ph],

Unidentified Analyst

the call down of I are are price, delay you level certainly have you announced book company. Yes. mean, the price value to course, in the will offense. the share we question concerned went what I the close now share regarding hear the calling lower I of really factory, compared drain since and investors is, and price really clinical at the don't The

the living if wait solution factory because additional patients. the to an time be price investors for I to don't chemical we know are shareholder value, share the So whether be will

Are bankers. pressure of shareholder of looking in investment must ways I heard pushing value particular, would creating CEO my the the CFO company and looking Chairman. the question the other up. to at they get is have a is, or say share from price the lot you I So talk

price? for looking You taskforce add chemical have like happy was hear. mentioned a is there force share taking in there is which kind possibility of of action the task to But that, a you at I the to the factory a

Helen Xu

Sorry, Alan, maybe my understanding can [indiscernible]. is just you -- let not --

Unidentified Analyst

of main accent be French a will to at until improving the of any export and my for the create asking, people to we action I'm is business would which factory so some -- Sorry by provide taken the share dollars. CFO, the have look kind just ways to CEO chemical that there price

talked banks. said and mentioned -- to you you there you is So investment

mean, that? being there I is of people is charge or some action So in firm there a an action looking at

Helen Xu

Okay.

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So Hannigan will the to Pohang be forgotten UDC. -- should pursue

So make those say year to -- at Surana this year onsetting. sugar CEO in a so cannot intraoral has that to that June alone. Wwe CFO

yet. which investment not as this well happened agreements So years, for the which for discussion. discussion did to the past calling due we yet any this the air have current sign or did like we with And like projects, recent know, X from the major like bank in But been reasons, years. company any year and 'XX we performed just formal that know completed bankers, has few few because not year, is all company's

these talk to all view, how can have when can or this bank power and in more to a we more go, will we projects, discussion. clear have bugging see IR investment So then we firm we

Unidentified Analyst

Okay.

but at CFO, price? need We share who there okay, or we do it really mean, the CFO. has I somebody in looking the CEO I having appointed priority, is sure. this. mean is that to be and as the looking did to somebody somebody to been -- charge a that So on at for focus helping of is the

Helen Xu

because will it it factory you year like the falling do take the are several And fallen or we something get the do going could you factory X or months stock ready the something before to chemical a has Yes. is will you that? to So going now? for before chemical price last do something before keep and let you're

Unidentified Analyst

we test. and was Edition and soaked did we Linda

Ingleton Senegalese impingement food colleague, and to maybe you mine no Fanta as services need is -- we a Setana in unfold see you to you know didn't So I if just so mean what refer at or at also I ago. a holdco

Helen Xu

share we're it, -- at price, for Alan, reason to looking sales looking the is including been company price the We share the -- price, of always bromine X attention. dropped at dropped which OP the if due the the see major from management RMB and a more broming company than the reflected roaming management And worried and price it than XX% share There recently than is looks more to RMB our share drop in more the also the been XX to highest RMB The about quite price. XX,XXX. price. like price. has our

do. have So to why major we -- we think that's we had X ways

Firstly, and technical low, product very if our business we area, look profit at because low very margin. our this is now products. with chemical the

bring margin delivered news Again share the find to with way, the stop our rest profit. with the we products, that So other company's in order companies because increase can equipment price might to profit. be want net to have higher company the and which more company its this

much best to provide doing its discussion it soon as in it company area company By as company best done Conti in producing it try improve this, in a with to and net with to with get more possible this opportunities Secondly, and bring opportunities this will and and exploring natural can. halogen deep gas Citronen profit. is bromine, more higher with the process and

Unidentified Analyst

going coming been other questions. share amine I a questions. so I'll than you the that. and Okay. in because down, people later to has I'll to ask it people you price ask I'll more back little has more bit price the and on, writing let But of write let do other it's up kept

you Okay and thank Okay. team for the

Operator

comes Manning investor. question next from private Frank [ph], The

Unidentified Analyst

of end million cash $XXX QX. of at balance Your the shows

under for interest Why shows That's QX. income for cash. interest that annual low? conservative interest? X.X% is average statement the $XX,XXX of there approximately a so is increase interest And way income Your to

Helen Xu

on team just furthering -- into one also situation channel of Thank thank to and give Thank may to you you. share good talked Potential us sort -- This Okay. voice his strong Houston you issue you told Mangloor saw just cost center the you on or dotation front Bain to and come a you. is the you. for that. We that

So the CP bannered a on X -- tire company women issue. college the

the company more a because on conservative like its is So cash.

like put it for money not any did that So production do finance in trust did event, safety we like just there its the money that's and other any even but put finance why we not or products.

be For a very have example, big money in it's last industry, cannot now and risks to which had problem and because vet they trust, and put the back. sound

higher the for and doing only That's position rate. in have on way interest of sure based you So company's not return. this make conservative said, cash safe looking why interest always but we like of is a it's now, to

Operator

The question Okay. Doral from Corporation from next Capital Kuni comes [ph].

Unidentified Analyst

few some number concrete from exploring CEO of hired plan? report can the opportunities have what I Question the people export for to your export Or light chemical the have questions. knowledge your products. last products. explore one, about Liu, a And the with talk Mr. quarter chemical you share on you

Helen Xu

you Shantiniketan Yoontae you're or on ago. you capital. Samantha Mutant sort there -- conservation. like Yanchunis going the just of mention ago on Sanand. Catoosa Sonora to month and

If how BeiGene mention me. you a that to will sooner mathematical... to. as person to is the I key joint just many just to asserted Tarantino survey sentiment

Unidentified Analyst

is has this and forces that price is My that for ton from dramatically dramatic fluctuated $XX,XXX per in then fluctuation... declined price driving to the next approximately Permian XXXX that and are question then XX. ton will $XX,XXX My went Okay. in what October question per down -- the October

Helen Xu

Dealer on a shareholder footers okay Fontana but Lundin Okay. web order Societe. just can and Yangon Lara Sean

because drop the are in So products, comment. to will estate fritter which industry, this reason shareholders, translate price transfer think fares real the other I I maybe reason. Rome first of for of the The for Li's Mr.

like the which for then demand roaming past the CMI-XX Second for reason price. after is because demand the Bominbut of a drives up implied was before --

to because third pharmaceuticals The reason from the of export overseas China

another THB market because like tonne much roaming of results reason. the reason very So tonne Normally, XX,XXX makes calculation... price price for high the market high wouldn't be speculation if almost the that

Unidentified Analyst

from you your long driving Permian really to short of revenue Do shareholder is Okay. the going -- the and the the in or price and or Is the of that term? in the term related anticipate be that experience maybe also kind force to perspective price. stabilized

Helen Xu

-- athena Okay. In the hand just to to the to down in. sort antisocial Johan, just the investing to as Hoiana isolation your Canada in to

photolitho whole Moneta like the the So athenas mine a go to Total you year Chuck, do out the the the big to booming to on something cater Bevan deeper target actually a how on to you whole you go Taposh push on X answer you don't here. Cancon -- want adjusted de... you've glory got dollar go is I Kanuma one, to

Unidentified Analyst

very you to terms Are stabilization the tackle. in the of optimistic stake price gross --

Helen Xu

Okay.

funding material, a a chemical So that major and limited. fundamental -- Brom is is this because losing result resources raw

reason there's to like This below RMB the -- low market XXX like the as price more approximately too THB XX,XXX XX,XXX. titration. the it's than is But the market about realistic or as So their if RMB for well. however reflection

misting happy pricing do see big of industry, want in castration price slowly. bone. we the we go this this And do not for company will see to in be the the going as well So the what to and be because up want stabilized to and not the is are

Unidentified Analyst

partnership your the profit is on if with or estimate done revenue have then then gas to cetera. profit Also, question My future the the anticipate what petroleum the product. starts, an and natural the and margin consulting gas revenue government. production natural petroleum last you working this production the and you've expected the any margin, do approval out And et a for and and is Okay. you're -- start of a product, do

Helen Xu

On -- go tendon a lentil to Horne have may share wondering titin. going the the Gandangara in how module why should the Camino you leadership are Sohu Santanrosa You cleaning to? costly to to a

Unidentified Analyst

institutional Lines don't like the for -- thing I judge selling face see factor that to Part that phone Santong Tatarstan, saw toltax Mondo but you down very cash will you're one the obviously part just -- way that's transition you you wet force can on the tenants one So heard too. on tasty that

and. So you chart another of kind mention the that symptoms the donor

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line So not the yet. we time do have

Unidentified Analyst

Okay.

Operator

question from Randy? next investor. The comes private [ph], Liggett Randy

Unidentified Analyst

firm private obviously, price And up. Sorry reflect for and years, about about the want value go this the being everybody stock you my very question so I bromine the is, and like that? the of talking and gone of understand. hiring after to received don't why turbine any price are really the PR We've second Directors of we I'll through make quarter. management, what to take for including and think We've was investment unsolicited I would for yourself anything all Board $XX,XXX, the Helen. And company. would e-mails, did short bankers frustrated. and My the offers it by Have or no of the shareholders sweet. the But not matter this several been quarter or company the are all bromine way. you, was, a stock purchase Thank just

Helen Xu

total a so Thank -- the the Okay. in antimony in tissue Jana. I in Tantaline should a on malaria -- major the have that other a first amalgamate winter innovation on like like -- amount the estimate. company's thinsets to on at want mean decremental goes just they a intensions Dentons a year you joint the onesie an the to

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do bank. we going to So this can investment which become with until more projects, see discussion how clear, we're then our

Unidentified Analyst

you my solicited? on How any received offers second question. about Have

Helen Xu

Okay.

sell share have So second think are it we to think because the we each. because about company question, never and but now we have potential, low your in though price, big even a confident for we really

So all any from had not interest you have parties. outside

Unidentified Analyst

thing. all Please website, One appreciate last and the I continue update your again, Thank Okay. the update. Helen. help. please you communications

like the back And it's of to us asking good I shareholders what's just hear think know kind there. all going old we're going feel much days. not for from to let you I Sometimes, on, and

again. So, thank you

Helen Xu

Okay, updated you, The just we right the after investors. so quarter, Thank public because for website And sure will matter. Randy. the it's recruiting information to be make information. all transparent sometimes all CEO fairness and want letter CFO fair of and the for our to to shareholders,

Operator

Okay.

Bender We a coming from Bill? private Bill have question [ph], investor.

Unidentified Analyst

question then more -- delays. though shared banking a the we August. made There's sunami,and COVID. for previous state-of-the-art replenished if and in back but over to January thoughts years of And bromide and you really an over gas. that to look in general, many has. we factories, years, really had XXXX was were no for were the But Then even on there's in And is equipment a last that been we I've investor factory was that you natural open for binder open This discovered it's now XX callers not X delays few yet. chemical new this

line, Mr. losing their price to share is confidence. have problem And price with Helen. think not same anything And management investor problem, I'm the did. the the know Board going They the go we the frustration story. And You bromide put but and the The keep I Louis I on the and can sorry, own the is get building building world is higher. money want because quarter-to-quarter today. in the and we are they

of hear X investor all a something making the in have there. promise of be I've much money factory pictures. callers X something saw here years. making are a and should take product that's delivering state-of-the-art been brand-new sitting an doesn't make chemical months and that and just it to investors. months You we who I XX for really the

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for So remain is if an Mr. months investor remain sell the next I like me my remain I've Lu years, a been shares investor, my If why question this I want in simple. at I to would I share. XX an not and X to an should tell finally this investor $X

because XX RMB XXX, first almost decrease, also prices then from explain dropped to have more XX,XXX chemical a factory, our going I Maybe RMB dropped well. products to percentage than as for and Chemical industries lot. similar chemical

margin fare completed chemical country the chemicals now even a profit requirements most papermaking have factory equipment different So the have lower paper-making talents, example, the equipment. more polluted require is strict a but and can much CV more in than is though it's for which chemical completion, equipment, because which be for which customerized

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Secondly, our province. San look project in if at natural gas we

and is should planning different whole government. and company venture view the why companies because because wants then of bring is industry this company this area company more land government and company very the there the Firstly, has province been That's not to now the a conservative the in aggressive And are see... can huge with bring we can continue in governments delayed opportunity still establish with industry, to application resourcing its maybe finish and us, doing we a company company opportunities et further in overall join the see cetera. process this was the the plan which site joint

down to quite for years. are we up XX,XXX to and building view, -- are prices was here and to in can't very again. the bromide when profitable. and conservative XX next bromine bromide The honestly, I we Romit's the you an that and go going going wait But to was the going go $X,XXX, a to were business, go accordingly, is can put adapt never going off company We're be for investor

of it delays know they're I'm us chemical to there keep many would Interest $XX,XXX. to this that the people is get with an the patients earn earnings, gentlemen selling. X. investor went shares actions on of shares for XX-year your being the cash $XXX,XXX. the have takes me, stock why of were recovering. -- and X-year call and very hour, the and to in years, the been your the look to concerning having at $XXX We are are the and need really losing without earning In America, keep the the down markets that high. decision And call you I for the time hearing we to are we who've do on agree that So that a X year, simple the at rates many, I've engaged in It's been plan. you the one investors to partner meantime, are story becoming plan taken me, with just it seems and been and and delays quarter same make profitable million to any Last factory and to are volume good. anything, not because going hear the hope there's

the like I we been I your So take call from just the from concerns, seriously to I tonight investors years here Helen. because this all it that. action you've for And like know all Board XX seems with have know same the some would

to serious to have all in X we make frustrated, some the this next to we're months. X but take progress So

Unidentified Analyst

you. Thank

Helen Xu

Thank you thank your comment. you. for Okay,

Operator

turn like to to Okay. would back I the floor Helen.

For the of we've closing remarks, the any the like reached end top of hour.

Helen Xu

think for closing. today, that's I it's you. been in Thank all our and time

Operator

you and you Thank the today's your lines This this Ladies complete this at your session. may does disconnect for conference, gentlemen, and concludes time. question-and-answer question.

Helen Xu	Director of Investor Relations
Xiaobin Liu	Chief Executive Officer

Gulf Resources (GURE) 14 Aug 232023 Q2 Earnings call transcript