v3.26.3
BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 17 – 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.

 

The Company has four reportable segments: bromine, crude salt, chemical products and natural gas. The reportable segments are consistent with how management views the markets served by the Company and the financial information that is reviewed by its chief operating decision maker.

 

An operating segment’s performance is primarily evaluated based on segment operating income, which excludes share-based compensation expense, certain corporate costs and other income not associated with the operations of the segment. These corporate costs (income) are separately stated below and also include costs that are related to functional areas such as accounting, treasury, information technology, legal, human resources, and internal audit. The Company believes that segment operating income, as defined above, is an appropriate measure for evaluating the operating performance of its segments. All the customers are located in PRC.

 

Three-Month Period Ended March 31, 2025 (Restated)

  Bromine *   Crude Salt *   Chemical Products   Natural Gas   Segment Total   Corporate   Total 
Net revenue (external customers)  $1,481,869   $122,578   $—   $—   $1,604,447   $—   $1,604,447 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income expense   (3,374,506)   (587,809)   (361,892)   (44,844)   (4,369,051)   (281,836)   (4,650,887)
Income tax (expense) benefit   —    —    —    —    —    —    — 
Loss from operations after income taxes (expense) benefit   (3,374,506)   (587,809)   (361,892)   (44,844)   (4,369,051)   (281,836)   (4,650,887)
Total assets   79,776,369    45,042,635    38,250,664    929,031    163,998,699    93,640    164,092,339 
Depreciation and amortization   3,261,892    639,289    70,926    32,962    4,005,069    —    4,005,069 
Capital expenditures   —    —    —    —    —    —    — 

 

Three-Month Period Ended March 31, 2024  Bromine *   Crude Salt *   Chemical Products   Natural Gas   Segment Total   Corporate   Total 
Net revenue
(external customers)		  $1,146,197   $116,671   $—   $44,194   $1,307,062   $—   $1,307,062 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income expense   (4,782,815)   (75,092)   (314,824)   (27,709)   (5,200,440)   (68,979)   (5,269,419)
Income tax (expense) benefit   1,198,071    —    71,989    —    1,270,060    —    1,270,060 
Loss from operations after
income taxes (expense) benefit		   (3,584,744)   (75,092)   (242,835)   (27,709)   (3,930,380)   (68,979)   (3,999,359)
Total assets   100,370,933    11,517,576    107,776,242    1,912,377    221,577,128    250,287    221,827,415 
Depreciation and amortization   4,449,468    181,891    68,357    33,759    4,733,475    —    4,733,475 
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 segment.

 

 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

(Expressed in U.S. dollars)

(UNAUDITED)

 

NOTE 17 – BUSINESS SEGMENTS – Continued

 SCHEDULE OF SEGMENT COST

Reconciliations  2025(Restated)   2024 
   Three-Month Period Ended March 31, 
Reconciliations  2025(Restated)   2024 
Total segment operating loss  $(4,369,051)  $(5,200,440)
Corporate costs   (281,836)   (68,979)
Unrealized gain (loss) on translation of intercompany balance   —    — 
Loss from operations   (4,650,887)   (5,269,419)
Other income, net   (19,293)   7,227 
Loss before taxes  $(4,670,180)  $(5,262,192)

 

The following table shows the major customers (10% or more) for the three-month period ended March 31, 2025.

Number  Customer 

Bromine

(000’s)

  

Crude Salt

(000’s)

   Chemical Products
(000’s)		   Total Revenue (000’s)  

Percentage of

Total Revenue (%)

 
1  Shandong Morui Chemical Company
Limited		  $196   $58   $—   $254    15.8%
2  Shandong Brother Technology Limited   193    36    —    229    14.3%
3  Shouguang Weidong Chemical Company
Limited		   197    28    —    225    14.0%
4  Shandong Shouguangshen Runfa Marine
Chemical Company Limited		  $195   $—   $—   $195    12.1%

 

The following table shows the major customers (10% or more) for the three-month period ended March 31, 2024.

 

Number  Customer 

Bromine

(000’s)

  

Crude Salt

(000’s)

  

Chemical Products

(000’s)

   Total Revenue (000’s)  

Percentage of

Total Revenue (%)

 
1  Shandong Morui Chemical Company
Limited		  $134   $63   $—   $197    15.1%
2  Shouguang Weidong Chemical Company
Limited		   135    26    —    161    12.3%
3  Shandong Brother Technology Limited   133    28    —    161    12.3%
4  Shandong Shouguangshen Runfa Marine
Chemical Company Limited		  $135   $—   $—   $135    10.3%