v3.26.3
BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 19 – BUSINESS SEGMENTS

 

ASC 280, Disclosures about Segments, of an Enterprise and Related Information, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise engaging in business activities from which they may earn revenues and incurred expenses, and about which separate financial information is available that is evaluated regularly by the chief operating decision-marker, or decision-making group( the “CODM”), in deciding how to allocate resources and assessing performance.

 

The Company’s Chief Executive Officer (Mr. Xiaobin Liu) is determined as the CODM of the Company, Mr Liu measures the performance of each segment based on metrics of revenue and profit before taxes from operations and uses these results to evaluate the performance of, and to allocate resources to each of the segments. The Company has organized operations into four different business segments: (1) bromine, (2) crude salt, (3) chemical products, (4) natural gas.

 

 

Three-Month
Period Ended
June 30, 2026

  Bromine*   Crude
Salt*		   Chemical
Products		   Natural
Gas		   Segment
Total		   Corporate   Total 
Net revenue (external customers)  $12,244,273   $642,704   $—   $—   $12,886,977   $—   $12,886,977 
Net revenue (intersegment)   —    —    —    —    —    —    — 
Income (loss) from operations before income tax (expense) benefit   1,409,472    (97,230)   —    (40,116)   1,272,126    (19,959)   1,252,167 
Income tax benefit (expense)   —    —    —    —    —    —    — 
Income (loss) from operations after income tax (expense) benefit   1,409,472    (97,230)   —    (40,116)   1,272,126    (19,959)   1,252,167 
Total assets   76,990,211    59,022,313    —    496,478    136,509,002    266,233    136,775,235 
Depreciation and amortization   3,371,816    781,799    —    26,587    4,180,202    —    4,180,202 
Capital expenditures   1,242,384    —    —    —    1,242,384    —    1,242,384 

 

Three-Month

Period Ended June 30, 2025

  Bromine*   Crude
Salt*		   Chemical Products   Natural Gas   Segment Total   Corporate   Total 
Net revenue (external customers)  $7,676,374   $667,411   $—   $—   $8,343,785   $—   $8,343,785 
Net revenue (intersegment)   —    —    —    —    —    —    — 
Loss from operations before income tax (expense) benefit   (134,041)   (181,160)   (348,203)   (43,255)   (706,659)   (84,614)   (791,273)
Income tax (expense) benefit   —    —    —    —    —    —    — 
Loss from operations after income tax (expense) benefit   (134,041)   (181,160)   (348,203)   (43,255)   (706,659)   (84,614)   (791,273)
Total assets   78,329,353    45,053,798    38,598,055    890,177    162,871,383    116,959    162,988,342 
Depreciation and amortization   3,254,011    637,437    70,763    32,540    3,994,751    —    3,994,751 
Capital expenditures   —    —    —    —    —    —    — 

 

Six-Month
Period Ended
June 30, 2026

 

Bromine*

  

Crude

Salt*

  

Chemical

Products

  

Natural Gas

  

Segment

Total

  

Corporate

  

Total

 
Net revenue (external customers)  $14,494,223   $761,380   $—   $—   $15,255,603   $—   $15,255,603 
Net revenue (intersegment)   —    —    —    —    —    —    — 
Loss from operations before income tax (expense) benefit   (1,658,306)   (824,909)   —    (71,925)   (2,555,140)   (249,290)   (2,804,430)
Income tax benefit (expense)   —    —    —    —    —    —    — 
Loss from operations after income tax (expense) benefit   (1,658,306)   (824,909)   —    (71,925)   (2,555,140)   (249,290)   (2,804,430)
Total assets   76,990,211    59,022,313    —    496,478    136,509,002    266,233    136,775,235 
Depreciation and amortization   6,669,288    1,551,592    —    52,751    8,273,631    —    8,273,631 
Capital expenditures   1,795,102    —    —    —    1,795,102    —    1,795,102 

 

Six-Month
Period Ended
June 30, 2025

  Bromine*   Crude
Salt*		   Chemical Products   Natural Gas   Segment Total   Corporate   Total 
Net revenue
(external customers)		  $9,158,243   $789,989   $—   $—   $9,948,232   $—   $9,948,232 
Net revenue (intersegment)   —    —    —    —    —    —    — 
Loss from operations before income tax (expense) benefit   (3,508,547)   (768,969)   (710,095)   (88,099)   (5,075,710)   (366,450)   (5,442,160)
Income tax (expense) benefit   —    —    —    —    —    —    — 
Loss from operations after income tax (expense)
benefit		   (3,508,547)   (768,969)   (710,095)   (88,099)   (5,075,710)   (366,450)   (5,442,160)
Total assets   78,329,353    45,053,798    38,598,055    890,177    162,871,383    116,959    162,988,342 
Depreciation and
amortization		   6,515,903    1,276,726    141,689    65,502    7,999,820    —    7,999,820 
Capital expenditures   

—

    

—

    

—

    

—

    

—

    

—

    

—

 

 

*Certain common production overheads, operating and administrative expenses and asset items (mainly cash and certain office equipment) of bromine and crude salt segments in SCHC were split by reference to the average selling price and production volume of the respective segments.

 

 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026

(Expressed in U.S. dollars)

(UNAUDITED)

 

NOTE 19 – BUSINESS SEGMENTS – Continued

 SCHEDULE OF SEGMENT COST

Reconciliations            
   Three-Month Period Ended June 30,   Six-Month Period Ended June 30, 
Reconciliations  2026   2025 (Restated)   2026   2025 (Restated) 
Total segment operating income (loss)  $1,272,126   $(706,659)  $(2,555,140)  $(5,075,710)
Corporate costs   (19,959)   (84,614)   (249,290)   (366,450)
Unrealized gain on translation of intercompany balance   -    -    -    - 
Profit (loss) from operations   1,252,167    (791,273)   (2,804,430)   (5,442,160)
Interest expense   (124,673)   (21,674)   (248,117)   (43,396)
Interest income   18,816    1,795    272,476    4,224 
Other expenses, net   (3,117)   (3,212)   (3,117)   (3,212)
Income (loss) before taxes  $1,143,193   $(814,364)  $(2,783,188)  $(5,484,544)

 

The following table shows the major customers (10% or more) for the three-month period ended June 30, 2026.

 

              Chemical   Total   Percentage of 
      Bromine   Crude Salt   Products   Revenue   Total 
Number  Customer  (000’s)   (000’s)   (000’s)   (000’s)   Revenue (%) 
1  Shandong Shouguang Shenrunfa Marine Chemical Company Limited  $2,293   $—   $—   $2,293    17.8%
2  Shandong Brother Technology Limited   1,652    257    —    1,909    14.8%
3  Shandong Morui Chemical Company Limited   1,610    253    —    1,863    14.5%
4  Shouguang Weidong Chemical Company Limited   1,545    132    —    1,677    13.0%
5  Shandong Xuruixin Materials Company Limited  $1,520   $—   $—   $1,520    11.8%

 

The following table shows the major customers (10% or more) for the six-month period ended June 30, 2026.

 

              Chemical   Total   Percentage of 
      Bromine   Crude Salt   Products   Revenue   Total 
Number  Customer  (000’s)   (000’s)   (000’s)   (000’s)   Revenue (%) 
1  Shandong Shouguang Shenrunfa Marine Chemical Company Limited  $2,686   $—   $—   $2,686    17.6%
2  Shandong Brother Technology Limited   1,915    307    —    2,222    14.6%
3  Shandong Morui Chemical Company Limited   1,873    297    —    2,170    14.2%
4  Shouguang Weidong Chemical Company Limited   1,808    158    —    1,966    12.9%
5  Shandong Xuruixin Materials Company Limited  $1,783   $—   $—   $1,783    11.7%

 

The following table shows the major customers (10% or more) for the three-month period ended June 30, 2025.

 

      Bromine   Crude Salt  

Chemical

Products

  

Total

Revenue

  

Percentage of

Total

 
Number  Customer  (000’s)   (000’s)   (000’s)   (000’s)   Revenue (%) 
1  Shandong Morui Chemical Company Limited  $1,132   $236   $—   $1,368    16.4%
2  Shandong Brother Technology Limited   1,016    230    —    1,246    14.9%
3  Shouguang Weidong Chemical Company Limited   1,029    202    —    1,231    14.7%
4  Shandong Shouguangshen Runfa Marine Chemical Company Limited  $1,032   $—   $—   $1,032    12.4%

 

The following table shows the major customers (10% or more) for the six-month period ended June 30, 2025.

 

      Bromine   Crude Salt  

Chemical

Products

  

Total

Revenue

  

Percentage of

Total

 
Number  Customer  (000’s)   (000’s)   (000’s)   (000’s)   Revenue (%) 
1  Shandong Morui Chemical Company Limited  $1,328   $294   $—   $1,622    16.3%
2  Shandong Brother Technology Limited   1,209    226    —    1,475    14.8%
3  Shouguang Weidong Chemical Company
Limited		   1,226    230    —    1,456    14.6%
4  Shandong Shouguangshen Runfa Marine
Chemical Company Limited		  $1,227   $—   $—   $1,227    12.3%

 

 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026

(Expressed in U.S. dollars)

(UNAUDITED)