Gulf Resources, Inc. Reports Higher Annual Revenue But Posts Another Year of Losses

Bottom line

- Gulf Resources, Inc. closed the twelve-month period reported in 10-K period-ended-2025-12-31 (accession 0001193805-26-001105) with another year of negative profitability, mirroring the prior-year loss position rather than flipping to a profit. - Top-line performance improved directionally versus the prior-year comparative: Revenues rose year-over-year to $25,418,335 USD, compared with the lower prior-period level of $7,661,010 USD — a positive-on-positive step consistent with the authorized direction for Revenues. - Despite that revenue lift, Operating Income (Loss) remained negative for both windows. The current operating result of -$8,568,624 USD improved relative to the prior-period loss of -$22,248,569 USD, keeping the loss-to-loss transition noted in the authorized comparison for Operating Income (Loss). - Net Income (Loss) Attributable to Parent tracked the same shape: a current-period loss of -$43,920,231 USD versus a deeper prior-period loss of -$59,900,372 USD, again a loss-to-loss transition within the authorized comparison for Net Income (Loss) Attributable to Parent. - Earnings Per Share, Diluted stayed negative in both windows, at -$32.95 per diluted share USD/SHARES in the current period versus -$54.88 per diluted share USD/SHARES in the prior period — a loss-to-loss transition under the authorized comparison for Earnings Per Share, Diluted. - The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison. - The filing evidence does not disclose segment-level detail for this dimension.

Reporting-period identity and source scope: The figures above are drawn exclusively from the filing identified by 10-K period-ended-2025-12-31 for GULF RESOURCES, INC. (GURE, CIK 0000885462, accession 0001193805-26-001105), covering the twelve-month period the twelve months ended December 31, 2025 with the prior-year comparative window the twelve months ended December 31, 2024. Quoted context in the filing describes the registrant as a holding company that, through consolidated wholly-owned subsidiaries, manufactures and trades bromine and crude salt, natural gas, and chemical products used in oil and gas exploration, papermaking chemical agents, and materials for human and animal antibiotics, with products to date sold only within the People's Republic of China. The functional currency of the operating subsidiaries is the Renminbi, while the reporting currency of the Company is the United States dollar, as stated in the quoted narrative.

Source scope within the filing is narrow for this section: the financial values cited come from the consolidated twelve-month results presented under Item 8 (Financial Statements and Supplementary Data), and the introductory description of the business and currency framework is drawn from the introduction portion of the same 10-K period-ended-2025-12-31 filing. No segment-level breakout is presented in the filing evidence for the dimensions discussed here, and no peer or industry comparison is included in the cited material. Readers wanting a cross-issuer pattern for a comparable loss-to-loss full-year shape can compare the framing against REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in Filing, which illustrates the opposite profit-side direction within the same Lizely Finance coverage set.

Financial performance

- Reported figures For the twelve-month period the twelve months ended December 31, 2025, the company filed its results under 10-K for GULF RESOURCES, INC. (ticker GURE, CIK 0000885462, accession 0001193805-26-001105). The reported top line was Revenues of $25,418,335, compared with Revenues of $7,661,010 for the twelve months ended December 31, 2024, an authorised direction increase. Earnings Per Share, Diluted was a loss of -$32.95 per diluted share, versus a loss of -$54.88 per diluted share, an authorised transition loss to loss. Net Income (Loss) Attributable to Parent was a loss of -$43,920,231, versus a loss of -$59,900,372, also loss to loss. Operating Income (Loss) was a loss of -$8,568,624, versus a loss of -$22,248,569, once more loss to loss.

- Management explanations The narrative carried over from the issuer's filing describes a corporate history built on acquisitions among entities under common control, beginning with the share exchange between the legal acquirer Diversifax, Inc. and Upper Class Group Limited, which the filing treats as a capital transaction rather than a business combination, so no goodwill is recorded and pre-acquisition comparative figures have been retroactively adjusted. The same accounting frame is then applied to the later acquisition of SYCI, and to the transfer of SCHC's equity interest into a newly formed Hong Kong corporation named Hong Kong Jiaxing to satisfy ministerial steps tied to government approvals. The discussion in Item 8 also walks through the acquisition of SCRC, a manufacturer of antibiotic materials, the issuance of restricted Shares valued at the closing price for accounting purposes, a five-year lock-up, and the later formation of DCHC in the Sichuan Province of the PRC to explore natural gas and brine resources, including bromine and crude salt. None of that background is tied in the evidence to a specific driver of this period's revenue or operating result.

- Analyst inference The filing evidence does not attribute this change to any single cause.

- Counter-evidence No contrary datapoint is provided in the text that would offset the year-over-year authorized directions listed above.

- Unknowns The filing evidence contains no peer or industry comparison. The filing evidence does not disclose segment-level detail for this dimension. Quarter versus prior-quarter change is not a meaningful frame for this annual dataset, and guidance was not disclosed in the materials reviewed for this section.

For readers comparing this annual picture with interim filings, a similar year-over-year framing appears in the analysis of REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in Filing, where both windows widened on a like-for-like basis.

Operating drivers and segments

- The filing's narrative frames the business around a small portfolio of activities, including the manufacture and trade of bromine and crude salt, the manufacture and sale of chemical products used in oil and gas field explorations, papermaking chemical agents, and materials for human and animal antibiotics, with all sales to date confined to the People's Republic of China. No segment-level revenue, cost, or operating-profit split is furnished in the cited evidence, and no discussion of margins — gross, operating, or net — is offered at any sub-business level. - The only quantitative cross-period comparisons the filing supports are company-wide. Revenues moved higher year over year for the twelve-month period ended the twelve months ended December 31, 2025 against the twelve months ended December 31, 2024, with the current-period figure of $25,418,335 USD comparing against the prior-period figure of $7,661,010 USD. The headline result remained negative on both windows, with Operating Income (Loss) of -$8,568,624 USD against -$22,248,569 USD, continuing the prior-period loss rather than flipping to a profit. - Because no line of business is broken out separately and no unit-volume, average-selling-price, capacity-utilisation, or mix-shift statistic is supplied, the segment contribution to either the top-line gain or the operating shortfall cannot be reconstructed from this filing. - The currency note in the narrative flags that the operating subsidiaries' functional currency is the Renminbi while the reporting currency is the United States dollar, with average exchange rates referenced for the two fiscal years covered. No translational impact on margins is quantified.

- Management's own characterisation of the period is delivered through the forward-looking-statements cautionary language at the close of the introductory section, which warns that any forward-looking comment about reserves, cash flows, revenues, profitability, or adequacy of funds from operations is subject to risks, uncertainties, and assumptions and is not a guarantee of future performance. - No separate, period-specific driver narrative — such as commentary on bromine pricing, natural-gas throughput, chemical-product demand, capacity, regulatory cost, or shutdown/turnaround activity — appears in the quoted narrative for this section. The company does not, in the cited text, name a single operating driver for the revenue increase or for the persistence of the operating loss on a year-over-year basis. - The filing also does not reconcile the reported figures to any prior outlook, nor does it attribute the movement between the two annual windows to a specific business line, geography, or cost category. - For this section, where management has not supplied a causal account and the cited evidence offers none, the appropriate causality placeholder is The filing evidence does not attribute this change to any single cause..

- The filing evidence does not disclose segment-level detail for this dimension. - The filing evidence contains no peer or industry comparison.

Cash flow and capital

Reported facts. The cash-flow statement for the twelve-month period the twelve months ended December 31, 2025 shows Net Cash Provided by (Used in) Operating Activities of $7,802,497 USD, against $675,826 USD in the prior-year comparative the twelve months ended December 31, 2024, with both windows registering positive operating cash. Net Cash Provided by (Used in) Investing Activities was -$22,571,837 USD for the current period and -$28,948,917 USD for the prior year, with both windows reporting a negative figure (cash used in investing). Net Cash Provided by (Used in) Financing Activities swung from -$31,851,811 USD (negative) in the prior year to $4,844,391 USD (positive) in the current twelve-month period. Capital spending, captured as Payments to Acquire Property, Plant, and Equipment, was $8,848,156 USD for the current period versus $28,923,642 USD for the prior-year window. On the balance sheet at the balance sheet date of December 31, 2025, the Company carried Accounts and Other Receivables, Net, Current of $16,771,928 USD, with a gross Accounts Receivable balance of $3,285,850 USD before the Allowance for Credit Loss; the liability side shows Accounts Payable, Current of $146,148 USD and Accounts Payable and Accrued Liabilities, Current of $1,882,367 USD.

Management explanations. The narrative around the filing describes a multi-step reshaping of the balance sheet. In a transaction closed in December, Shouguang City Haoyuan Chemical Company Limited, an indirect wholly-owned subsidiary, sold its equity in Shouguang Yuxin Chemical Industry Co., Limited to Shandong Rongyuan Pharmaceutical Co., Ltd.; management framed the disposal as a way to remove the operational and financial burdens of a facility that had been under prolonged suspension and to redirect resources toward the Company's other, more profitable segments. The Company also temporarily suspended relevant operations in Shouguang City under a notice from the Shouguang Municipal People's Government Office, characterizing the shutdown as seasonal and aligned with orderly brine-resource extraction and environmental protection; operations subsequently resumed in March in compliance with the same notice. Capital structure was reinforced through a series of Private Placement Agreements with four individual investors entered into during January and March, pursuant to which the Company agreed to issue new common shares representing a meaningful proportion of total shares outstanding at year-end.

Analyst inference. Reading the three cash-flow lines together, operating cash stayed positive across both windows while investing cash stayed negative in both, consistent with an ongoing capital-spending program at the operating-subsidiary level. The flip of financing cash from negative to positive ties to the private-placement issuances described above, which is the disclosed funding channel for the period. Capital expenditure recorded in the investing section remained an outflow in the current period, lower than the prior-year window on the authorized direction. Working-capital posture at year-end is described by the receivable and payable balances cited.

Counter-evidence and unknowns. No peer or industry comparison is available in the filing evidence for these items. The filing evidence contains no peer or industry comparison.. The filing does not attribute the year-over-year movements in operating, investing, financing, or capex to any single cause. The filing evidence does not attribute this change to any single cause.. Segment-level cash-flow detail is also not disclosed for this dimension. The filing evidence does not disclose segment-level detail for this dimension..

Peer and historical context

The full-year picture for GULF RESOURCES, INC. under 10-K for the twelve months ended December 31, 2025 is read against the same twelve-month prior comparative, the twelve months ended December 31, 2024, since the filed evidence does not present a peer or industry benchmark. On the top line, Revenues moved higher year over year, with current-period revenues of $25,418,335 USD running above the prior-period figure of $7,661,010 USD, consistent with the authorized direction of increase. The improvement came despite the Shouguang City temporary suspension described in management commentary, suggesting that any seasonal drag on revenue was absorbed by the remaining, more profitable segments that the company is reallocating resources toward.

Below the gross line, profitability remained negative on both windows. Operating Income (Loss) was -$8,568,624 USD for the current twelve-month period versus -$22,248,569 USD for the prior year, and Net Income (Loss) Attributable to Parent was -$43,920,231 USD versus -$59,900,372 USD, with the authorized transition recorded as loss to loss on both metrics. The authorized direction on net income is positive, meaning the loss narrowed rather than reversed into a profit, leaving the company in a loss-making position on both windows. Whether the narrower operating loss reflects genuine margin recovery or a one-sided accounting effect cannot be inferred from the filed evidence, and the company does not attribute the movement to a single cause. The filing evidence does not attribute this change to any single cause.

The cash-flow side tells a different story. Net Cash Provided by (Used in) Operating Activities was $7,802,497 USD for the current period, higher than the prior-period figure of $675,826 USD, and the authorized direction is positive on both windows. Cash generation from operations therefore improved even as the income statement remained in loss territory, which is the typical signature of working-capital release or non-cash charges running through the bottom line.

A clean historical comparison is also complicated by the restatement and late-filing disclosures referenced in Item 9A and the related note discussion in Note 6 and Note 7. The Prior Filings are no longer relied upon, which means the prior-year figures used here for benchmarking are themselves the restated comparatives rather than the originally published numbers. The Yuxin Chemical disposition, the temporary Shouguang shutdown, and the four Private Placement Agreements all occurred during or just after the current twelve-month period, so each of them is a structural event that sits between the two windows being compared.

The filing evidence contains no peer or industry comparison.

Scenario analysis

Building from the two reported values that are visible in this filing, the base case centers on revenue and the bottom line. Revenues for the twelve-month period covered by the 10-K filed under accession 0001193805-26-001105 for GULF RESOURCES, INC. (GURE, CIK 0000885462, fiscal period period-ended-2025-12-31) are reported as $25,418,335 USD, while the prior-year comparative for the twelve-month period ending the twelve months ended December 31, 2024 is reported as $7,661,010 USD. Net Income (Loss) Attributable to Parent for the twelve-month period is reported as -$43,920,231 USD, against the prior-year comparative of -$59,900,372 USD. The base case assumes that the revenue line continues along the trajectory already documented in the filing and that the loss at the parent level remains a loss, continuing the loss-to-loss transition that the reported comparison permits for the twelve months ended December 31, 2025 versus the twelve months ended December 31, 2024. The narrative surrounding the Shouguang Yuxin Chemical Industry Co., Limited disposal adds a structural piece to the base case: the Board has stated that completing the sale of the equity interest in the Target Company will relieve the Company of related burdens and allow it to focus on more profitable business segments, and the equity transfer was reviewed and approved by the Board as fair and in the best interests of the Company and its shareholders. The filing evidence does not attribute this change to any single cause.

The upside case depends on the Yuxin disposal translating into the relief the Board describes, combined with the listing-rule reprieve referenced in the cited context. The cited note points to a Nasdaq determination to grant an exception to enable the Company to regain compliance with the Listing Rule, and the Board has approved the equity transfer agreement with Shandong Rongyuan Pharmaceutical Co., Ltd., payable in instalments. If the disposal proceeds, the Company sheds the prolonged suspension of operations at the Yuxin Chemical facility flagged by the Board, and the remaining subsidiaries — Shouguang City Haoyuan Chemical Company Limited, Daying County Haoyuan Chemical Co., Ltd., and Shouguang Hengde Salt Industry Co. — form the operating perimeter that the upside case is built on. Under that perimeter, the revenue base of $25,418,335 USD for the twelve months ended December 31, 2025 is the level from which any improvement would be measured, and the prior-year revenue of $7,661,010 USD for the twelve months ended December 31, 2024 is the comparative anchor. The industrial and commercial registration reflecting the Purchaser as the sole shareholder of the Target Company has already been completed by the relevant governmental authority, which marks the closing of the transaction referenced in the filing. The filing evidence does not attribute this change to any single cause.

The downside case rests on the same two reported figures failing to lift the top line or narrow the bottom-line loss. Revenues for the twelve months ended December 31, 2025 of $25,418,335 USD versus the prior-year $7,661,010 USD, and Net Income (Loss) Attributable to Parent of -$43,920,231 USD versus the prior-year -$59,900,372 USD, frame a scenario in which the loss at the parent level does not narrow and the revenue base does not expand. The governance context around the filing adds a tail risk: the Company delayed completion of its fiscal-year Form 10-K and a Quarterly Report on Form (omitted), filed a Notice of Late Filing with the Securities and Exchange Commission, and remains subject to the caveat that the Nasdaq exception may not be satisfied, at which point the Company may appeal Nasdaq's determination to a hearings panel. The discussion in Item 1A of the risk factors around doing business in China, together with the enforcement-of-civil-liabilities language about civil procedure between the United States and China, layers further uncertainty onto the downside path. The filing evidence does not attribute this change to any single cause.

Risks and what to watch

- The filing identifies a cluster of jurisdictional and enforcement risks that go beyond ordinary financial disclosure. S. S.

for recognizing foreign judgments. PRC courts retain discretion to refuse enforcement on grounds of national sovereignty, security, or public interest, which limits the practical recourse available to security holders. - Recent regulatory developments in China add a second layer of risk.

The cited risk language describes the PRC government's authority to intervene in operations at any time and signals an intent to broaden oversight over overseas offerings and foreign investment in China-based issuers. The brief notes that the implications of new anti-monopoly, competition, and approval rules remain uncertain as to implementation and ultimate impact on the company's business, financial condition, results of operations, and prospects. - The quantitative picture for the twelve-month period is unfavorable on both lines captured by this analysis.

Revenues were $25,418,335 USD for the twelve-month period, compared with $7,661,010 USD for the prior-year comparative, a higher revenue base year over year. Net Income (Loss) Attributable to Parent was a loss of -$43,920,231 USD for the twelve-month period, against a loss of -$59,900,372 USD for the prior-year comparative, with the current loss lower than the prior-year loss. The authorized year-over-year transition for the net result is loss to loss.

- Counter-evidence in the form of segment, geographic, or product-line detail is not provided in the quoted material; only the headline revenue and net loss figures are anchored here. The Risk Factors section labeled in the catalog as Item one A frames the China-related risks at length but does not quantify potential exposure, and the company-specific causal explanation for the change in revenue or net result is not attributed to any single cause in the filing evidence, so any narrative about drivers is recorded as The filing evidence does not attribute this change to any single cause.

rather than reconstructed here. S. judgments, and whether the company will provide segment-level disclosure that would allow a more granular read on revenue mix and profitability.

The filing evidence does not attribute the year-over-year change to any single cause, and a peer or industry comparison is not included in the evidence. - Metrics to watch next period include the next twelve-month revenue line, the next twelve-month net result, the opening cash and financing-activity cash flow, and any new disclosures under the Risk Factors and Controls and Procedures sections that would clarify the practical impact of the Chinese regulatory and enforcement risks highlighted in this filing. Readers wanting a comparison example of a positive revenue and net income print in another issuer can compare against the pattern described in REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in Filing before drawing conclusions about this issuer's trajectory.