GULF RESOURCES, INC. Segments Disclosure

NOTE 18 – BUSINESS SEGMENTS

 

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 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.

 

Year Ended December 31, 2024 Operating Segment		Bromine*				Crude Salt*				Chemical Products				Natural Gas				Segment Total				Corporate Corporate				Total
Net revenue (external customers)		$	5,549,815			$	2,049,988			$	—			$	61,207			$	7,661,010			$	—			$	7,661,010
Net revenue (intersegment)			—				—				—				—				—				—				—
Loss from operations before income tax expense			(17,238,619	)			(76,694	)			(3,028,479	)			(195,364	)			(20,539,156	)			(744,493	)			(21,283,649	)
Income tax (expense) benefit			(1,632,978	)			(15,204	)			—				—				(1,648,182	)			—				(1,648,182	)
Loss from operations after income tax (expense) benefit			(18,871,597	)			(91,898	)			(3,028,479	)			(195,364	)			(22,187,338	)			(744,493	)			(22,931,831	)
Total assets			73,137,911				46,843,471				46,020,977				1,673,535				167,675,894				1,755,061				169,455,995
Depreciation and amortization			15,941,214				1,659,865				272,716				134,080				18,007,875				—				18,007,875
Capital expenditures			28,923,642				31,602,571				—				—				60,526,213				—				60,526,213

 

 

Year Ended December 31, 2023		Bromine*				Crude Salt*				Chemical Products				Natural Gas				Segment Total				Corporate				Total
Net revenue (external customers)		$	26,921,462			$	2,971,467			$	—			$	150,861			$	30,043,790			$	—			$	30,043,790
Net revenue (intersegment)			—				—				—				—				—				—				—
Loss from operations before income tax expense			(10,005,755	)			640,309				(1,653,349	)			(86,284	)			(11,105,079	)			(785,646	)			(11,890,725	)
Income tax (expense) benefit			(3,214,629	)			(323,988	)			—				—				(3,538,617	)			—				(3,538,617	)
Loss from operations after income tax (expense) benefit			(13,220,384	)			316,321				(1,653,349	)			(86,284	)			(14,643,696	)			(785,646	)			(15,429,342	)
Total assets			104,414,525				11,747,999				108,259,342				1,983,126				226,404,992				266,716				226,671,708
Depreciation and amortization			25,354,200				1,369,812				313,735				101,842				27,139,589				—				27,139,589
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.

  

 

 

		Years Ended December 31,
Reconciliations		2024				2023
Total segment operating loss		$	(20,539,156	)		$	(11,105,079	)
Corporate costs			(744,493	)			(785,646	)
Unrealized gain (loss) on translation of intercompany balance			—				—
Loss from operations			(21,283,649	)			(11,890,725	)
Other expense, net			(62,113	)			144,919
Expenditure on water pollution treatment			—				(46,510,856	)
Loss on disposal of property, plant and equipment			(29,169,008	)			—
Impairment of Property, plant and equipment			(6,772,500	)			—
Loss before taxes		$	(57,287,270	)		$	(58,256,662	)

 

The following table shows the major customers (10% or more) for the year ended December 31, 2024

Business Segments - Schedule of Revenue by Major Customers

 

				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		$	677			$	770			$	—			$	1,447				18.9	%
2		Shandong Brother Technology Limited		$	646			$	702			$	—			$	1,348				17.6	%
3		Shouguang Weidong Chemical Company Limited		$	646			$	578			$	—			$	1,224				16.0	%

 

 

The following table shows the major customers (10% or more) for the year ended December 31, 2023

  

				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		$	3,735			$	1,137			$	—			$	4,872				16.3	%
2		Shandong Brother Technology Limited		$	3,639			$	998			$	—			$	4,637				15.5	%
3		Shouguang Weidong Chemical Company Limited		$	3,492			$	837			$	—			$	4,329				14.5	%
4		Shandong Shouguang Shenrunfa Marine Chemical Company Limited		$	3,018			$	—			$	—			$	3,018				10.1	%