Market Overview

Gulf Resources Announces Damage to its Facilities Due to Flooding from Typhoon Winbiya

Share:

SHOUGUANG, China, Aug. 27, 2018 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (NASDAQ:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that its facilities have suffered damage from flooding caused by Typhoon Winbiya.

According to JQK News, "A large-scale heavy rainfall occurred in Shandong, resulting in severe typhoon disasters in 13 cities, such as Weifang,…" (https://www.jqknews.com/news/60620-13_cities_in_Shandong_have_been_killed_by_typhoon_disaster_24_deaths_in_Weifang_the_heaviest_13_deaths.html)

As of August 23, 2018, statistics showed that 5.1846 million people in Shandong Province were affected, 24 died, three were missing, and six were injured because of the disaster; 188,800 people were resettled urgently, and 50,200 people needed emergency life assistance.

Weifang was the most seriously affected by the typhoon.  As of August 23, 2018, statistics showed that 1.53 million people were affected, 13 died, three were missing, 172,600 people were resettled urgently, and 342,000 people needed emergency living assistance; 167,900 hectares of crops were affected. There were 10,125 collapsed houses, 8,240 seriously damaged houses and 53,465 damaged houses. The direct economic loss has been estimated to be 17.473 billion yuan, of which the agricultural loss was 9.763 billion yuan.

In Shouguang City, where our headquarters is located, as of August 23, statistics showed the average precipitation reached 378.66mm (14.9 inches), nearly twice the previous maximum, since records began in 1959. Three major reservoirs in the Mihe River Valley far exceeded their discharge levels, flooding farmland, residential areas, and factories. (https://baijiahao.baidu.com/s?id=1609656576473793872&wfr=spider&for=pc, https://baijiahao.baidu.com/s?id=1609821192848639407&wfr=spider&for=pc)

All of the Company's bromine factories, crude salt pans and mining areas suffered varying degrees of damage, Bromine factories No. 7,8, and 9 were more seriously impacted. The equipment, buildings, crude salt pans, roads, electricity, wells, aqueduct and etc. sustained varying degrees of damage.

The company is actively assessing the impact of the floods on the company to determine the timing and cost of the needed repairs or replacement.

We have posted photos of the flooding and the damage on our website so investors can better understand the extent of the problems, following the link below: http://www.gulfresourcesinc.com/corporate-ppt.html

About Gulf Resources, Inc.

Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"), and Daying County Haoyuan Chemical Company Limited ("DCHC"). The company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents, and materials for human and animal antibiotics. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com

Forward-Looking Statements

Certain statements in this news release contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu (Haiyan Xu)
beishengrong@vip.163.com

Primary Logo

View Comments and Join the Discussion!