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Introduction We manufacture and trade bromine and crude salt, natural gas, manufacture and sell chemical products used in oil and gas field explorations and papermaking chemical agents, and materials for human and animal antibiotics. As used in this report, the terms we, us, our, Company and Gulf Resources refers to Gulf Resources, Inc., a holding company and/or its consolidated wholly-owned su…
The business is unprofitable at the operating level (-277.82% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 74.5% YoY. Margins deteriorated 238.2pp alongside, both lines moving the wrong way.
ROIC dropped from -3.79% to -9.16%, capital efficiency is deteriorating. Negative free cash flow of -$60M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$21M
▼ -74.5% YoY
Net Income (TTM)
-$59M
▲ +4.6% YoY
Op. Margin
-57.82%
▼ -238.2pp YoY
ROIC
-6.65%
▼ -5.4pp YoY
Cash Flow & Balance Sheet
FCF (FY)
-$60M
Op. Cash Flow (TTM)
$6M
▲ +102.1% YoY
Net Debt
$2M
Cash & Equiv.
$6M
5Y CAGR: -6.3%
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