Gulf Resources, Inc. Q4 FY2022 earnings call

• Fiscal year 2022 results: Revenue increased ~20% to ~$66.1 million, gross profit up 34% to ~$37.4 million, profit from operations up 216% to ~$16.5 million, income before taxes up 210% to $16.6 million, after-tax income positive vs prior loss, earnings per share $1 vs prior loss, cash flow from operations ~$51.1 million. - Bromine and crude salt: Prices dropped 40% post-fiscal year, some factories closed, factory #8 in production, expect to open closed factories in 2023. - Yuxin chemical factory: Construction delayed by COVID and environmental regs, original segment earnings in 2016 were $25.5M. - Sichuan projects: Waiting for govt planning, considering partnership with Daying County. - Shareholder value: Stock at cheap valuations, working on strategy for financial flexibility. - Export strategy: Forming task force to analyze chemical products for export.

For the bromine and crude salt segment, last year the bromine business was extremely profitable with bromine prices increasing 14%, but since the end of the fiscal year, bromine prices have dropped approximately 40%. The company expects to open closed factories #2 and #10 in 2023 and believes bromine prices have reached a bottom. For the Yuxin chemical factory segment, construction was delayed by COVID-19 and stricter environmental regulations; originally, the chemical factory had segment earnings of $25.5 million in 2016. For the Sichuan natural gas and bromine segment, the company is waiting for the Sichuan Province government to finalize land and resource planning and is considering a partnership with Daying County for the natural gas and brine project.

• For bromine and crude salt, no revenue/earnings projections for FY2023 as pricing not fully understood. - Yuxin factory still under construction, no long-term estimates. - Sichuan projects dependent on govt approval, considering partnership.

• General economic and business conditions in China. - Risks associated with COVID-19 pandemic. - Future product development and production capabilities. - Shipments to end customers. - Market acceptance of new/existing products. - Competition from bromine and other chemicals. - Changing technology. - Ability to make future bromine assets. - Foreign currency translation adjustment.

Q: Are there people outside the company involved in the task force looking at exporting chemical products? And who are they?

A: Currently, it is from the company inside staff. We are doing the planning still and do the analyze. And once we're going well with this, future, we may consider to hire someone from outside – consultant for the marketing and the technical segment.

Q: I would encourage you also to talk to an investment banker to look at opportunities for improving the company's stock price.

A: Okay. Thank you.