v3.26.3
BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 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 March 31, 2026 Operating Segment

                     

Three-Month Period Ended March 31, 2026

 

Bromine*

  

Crude

Salt*

  

Chemical

Products

  

Natural Gas

  

Segment

Total

  

Corporate

  

Total

 
Net revenue (external customers)  $2,249,950   $118,676   $—   $—   $2,368,626   $—   $2,368,626 
Loss from operations before income (expense) benefit   (3,067,778)   (727,679)   —    (31,809)   (3,827,266)   (229,331)   (4,056,597)
Income tax (expense) benefit   —    —    —    —    —    —    — 
Loss from operations after income tax (expense) benefit   (3,067,778)   (727,679)   —    (31,809)   (3,827,266)   (229,331)   (4,056,597)
Total assets   82,009,150    49,970,378    —    520,295    132,499,823    286,155    132,785,978 
Depreciation and amortization   3,297,472    769,793    —    26,164    4,093,429    —    4,093,429 
Capital expenditures  $548,296   $—   $—   $—   $548,296   $—   $548,296 

 

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   (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  $—   $—   $—   $—   $—   $—   $— 

 

*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

MARCH 31, 2026

(Expressed in U.S. dollars)

(UNAUDITED)

 

NOTE 19 – BUSINESS SEGMENTS – Continued

 

Reconciliations    
   Three-Month Period Ended March 31, 
Reconciliations  2026  

2025 (Restated)

Total segment operating loss  $(3,827,266)  $(4,369,051)
Corporate costs   (229,331)   (281,836)
Unrealized gain (loss) on translation of intercompany balance   —    — 
Loss from operations   (4,056,597)   (4,650,887)
Interest income   253,660    2,429 
Interest expense   (123,444)   (21,722)
Loss before taxes  $(3,926,381)  $(4,670,180)

 

The following table shows the major customers (10% or more) for the three-month period ended March 31, 2026.

 

Number  Customer  Bromine
(000’s)		   Crude Salt
(000’s)		   Chemical
Products
(000’s)		   Total
Revenue
(000’s)		   Percentage of
Total
Revenue (%)		 
1  Shandong Shouguang Shenruifa Marine Chemical Company Limited  $393   $—   $—   $393    16.6%
2  Shandong Brother Technology Limited   261    50    —    311    13.1%
3  Shandong Morui Chemical Company Limited   264    43    —    307    13.0%
   Shouguang Weidong Chemical Company                         
4  Limited   263    26    —    289    12.2%
5  Shandong Xuruixin Materials Company Limited  $263   $—   $—   $263    11.1%

 

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%