Gulf
Resources, Inc.
David
Wang, VP of Finance
E-mail:
gfre.2008@vip.163.com
|
CCG Investor Relations
Ms.
Linda Salo, Sr. Financial Writer
Phone: +1-646-922-0894
E-mail:
linda.salo@ccgir.com
|
Helen Xu
E-mail: beishengrong@vip.163.com
Website:
http://www.gulfresourcesinc.cn/
|
Mr.
Crocker Coulson, President
Phone:
+1-646-213-1915 E-mail: crocker.coulson@ccgir.comWebsite: http://www.ccgirasia.com/
|
·
|
Revenue
was $29.7 million, a year-over-year increase of
25.6%
|
·
|
Gross
profit was $13.5 million, a year-over-year increase of
33.3%
|
·
|
Gross
margin increased to 45.3% from 42.7% for the first quarter of
2009
|
·
|
Income
from operations was $11.1 million, a year-over-year increase of
24.7%
|
·
|
Operating
margin was 37.2% compared to 37.5% for the first quarter of
2009
|
·
|
Net
income was $8.0 million, or $0.23 per basic and diluted share, an increase
of 22.3% from $6.5 million, or $0.23 per basic and diluted share a year
ago
|
·
|
Cash
totaled $55.6 million as of March 31,
2010
|
GULF
RESOURCES, INC.
|
||||||||
AND
SUBSIDIARIES
|
||||||||
CONSOLIDATED
BALANCE SHEETS
|
||||||||
(Expressed
in U.S. dollars)
|
||||||||
March
31,
|
December 31,
|
|||||||
Current
Assets
|
2010
(Unaudited) |
2009
(Audited) |
||||||
Cash
|
$ | 55,571,241 | $ | 45,536,735 | ||||
Accounts
receivable
|
14,194,076 | 14,960,002 | ||||||
Inventories
|
597,009 | 650,332 | ||||||
Prepayment
and deposit
|
229,267 | 233,330 | ||||||
Prepaid
land lease
|
51,356 | 46,133 | ||||||
Deferred
tax asset
|
87,283 | 85,672 | ||||||
Other
receivable
|
2,289 | 2,195,208 | ||||||
Total
Current Assets
|
70,732,520 | 63,707,412 | ||||||
Property,
plant and equipment, net
|
83,985,334 | 81,993,894 | ||||||
Prepaid
land lease, net of current portion
|
718,487 | 721,862 | ||||||
Total
Assets
|
$ | 155,436,341 | $ | 146,423,168 | ||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
Liabilities
|
||||||||
Accounts
payable and accrued expenses
|
$ | 6,057,340 |
$ 5,823,745
|
|||||
Retention
payable
|
660,150 | 660,150 | ||||||
Due
to related parties
|
1,190 | 1,190 | ||||||
Taxes
payable
|
5,155,325 | 5,555,113 | ||||||
Total
Current Liabilities
|
11,874,005 | 12,040,198 | ||||||
Total
Liabilities
|
11,874,005 | 12,040,198 | ||||||
|
||||||||
Stockholders’
Equity
|
||||||||
PREFERRED
STOCK ; $0.001 par value; 1,000,000 shares
authorized
none outstanding
|
$ | - | $ | - | ||||
COMMON
STOCK; $0.0005 par value; 100,000,000 shares authorized;
34,569,447 and 34,541,066 shares issued and outstanding as of March 31,
2010 and December 31, 2009, respectively
|
17,285 | 17,271 | ||||||
Additional
paid in capital
|
65,924,978 | 64,718,026 | ||||||
Retained
earnings unappropriated
|
67,800,425 | 59,808,289 | ||||||
Retained
earnings appropriated
|
5,679,769 |
5,679,769
|
||||||
Cumulative
translation adjustment
|
4,139,879 | 4,159,615 | ||||||
Total
Stockholders’ Equity
|
143,562,336 | 134,382,970 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 155,436,341 | $ | 146,423,168 |
GULF
RESOURCES, INC.
|
||||||||
AND
SUBSIDIARIES
|
||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||
(Expressed
in U.S. dollars)
|
||||||||
(UNAUDITED)
|
||||||||
Three
Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
|
|
|||||||
NET
REVENUE
|
|
|
||||||
Net
sales
|
$ | 29,693,418 | $ | 23,633,538 | ||||
|
||||||||
OPERATING
EXPENSES
|
|
|||||||
Cost
of net revenue
|
(16,235,499 | ) | (13,540,940 | ) | ||||
General
and administrative expenses
|
(2,277,492 | ) | (1,099,380 | ) | ||||
Research
and development cost
|
(125,202 | ) | (124,969 | ) | ||||
(18,638,193 | ) | (14,765,289 | ) | |||||
|
||||||||
INCOME
FROM OPERATIONS
|
11,055,226 | 8,868,249 | ||||||
|
||||||||
OTHER
INCOME (EXPENSES)
|
|
|||||||
Interest
expense
|
(174 | ) | (27,009 | ) | ||||
Interest
income
|
53,761 | 22,029 | ||||||
Sundry
income
|
21,998 | - | ||||||
|
||||||||
INCOME
BEFORE INCOME TAXES
|
11,130,810 | 8,863,269 | ||||||
|
||||||||
INCOME
TAXES - current
|
(3,138,674 | ) | (2,330,155 | ) | ||||
|
||||||||
NET
INCOME
|
$ | 7,992,136 | $ | 6,533,114 | ||||
|
||||||||
EARNINGS
PER SHARE
|
|
|||||||
BASIC
|
$ | 0.23 | $ | 0.23 | ||||
DILUTED
|
$ | 0.23 | $ | 0.23 | ||||
|
||||||||
WEIGHTED
AVERAGE NUMBER OF SHARES
|
|
|||||||
|
||||||||
BASIC
|
34,561,233 | 28,763,044 | ||||||
DILUTED
|
34,762,991 | 28,763,044 |
GULF
RESOURCES, INC.
|
||||||||
AND
SUBSIDIARIES
|
||||||||
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||
(Expressed
in U.S. dollars)
|
||||||||
(UNAUDITED)
|
||||||||
Three
Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
NET
INCOME
|
$ | 7,992,136 | $ | 6,533,114 | ||||
|
||||||||
OTHER
COMPREHENSIVE INCOME
|
|
|||||||
Foreign
currency translation adjustment
|
19,734 | (49,438 | ) | |||||
|
||||||||
COMPREHENSIVE
INCOME
|
$ | 8,011,870 | $ | 6,483,676 |
GULF
RESOURCES, INC.
|
||||||||
AND
SUBSIDIARIES
|
||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||
(Expressed
in U.S. dollars)
|
||||||||
(UNAUDITED)
|
||||||||
Three
Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
|
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|
|
||||||
Net
income
|
$ | 7,992,136 | $ | 6,533,114 | ||||
Adjustments
to reconcile net income
|
|
|||||||
Amortization
of warrants
|
- | 238,027 | ||||||
Amortization
of prepaid expenses
|
22,057 | 3,957 | ||||||
Depreciation
and amortization
|
2,377,621 | 1,469,822 | ||||||
Stock-based
compensation expense
|
1,188,966 | - | ||||||
Deferred
tax asset
|
(1,609 | ) | - | |||||
Bad
debt provision
|
- | 64,117 | ||||||
Changes
in assets and liabilities
|
|
|||||||
Accounts
receivable
|
772,311 | (1,059,675 | ) | |||||
Inventories
|
53,304 | (82,293 | ) | |||||
Prepayment
and deposit
|
4,129 | 105,421 | ||||||
Other
receivable
|
- | - | ||||||
Accounts
payable and accrued expenses
|
251,535 | 2,238,313 | ||||||
Taxes
payable
|
(312,408 | ) | (382,458 | ) | ||||
Net
cash provided by operating activities
|
12,348,042 | 9,128,345 | ||||||
|
||||||||
CASH
FLOWS USED IN INVESTING ACTIVITIES
|
|
|||||||
Additions
of prepaid land lease
|
(23,912 | ) | - | |||||
Purchase
of Property, plant and equipment
|
(4,399,500 | ) |
(10,019,262)
|
|||||
Net
cash used in investing activities
|
(4,423,412 | ) | (10,019,262 | ) | ||||
|
||||||||
CASH
FLOWS PROVIDED BY FINANCING ACTIVITIES
|
|
|||||||
Proceeds
from exercising stock options
|
18,000 | - | ||||||
Proceeds
from private placement
|
2,192,919 |
-
|
||||||
Net
cash provided by financing activities
|
2,210,919 | - | ||||||
|
||||||||
EFFECTS
OF EXCHANGE RATE CHANGE ON CASH & CASH EQUIVALENTS
|
(101,043 | ) | (36,709 | ) | ||||
NET
INCREASE IN CASH & CASH EQUIVALENT
|
10,034,506 | (927,626 | ) | |||||
CASH
& CASH EQUIVALENT - BEGINNING OF PERIOD
|
45,536,735 | 30,878,044 | ||||||
CASH
& CASH EQUIVALENT - END OF PERIOD
|
$ | 55,571,241 | $ | 29,950,418 |