Gulf Resources' CEO Discusses Q3 2012 Results - Earnings Call Transcript
November 9, 2012 10:29 PM ET
Gulf Resources, Inc. (GURE)
Q3 2012 Earnings Conference Call
November 09, 2012 08:00 a.m. ET
Max Ma – IR Manager
Xiaobin Liu – CEO
Min Li – CFO
Good morning, my name Felicia, and I will be your conference operator today. At this time I would like to welcome everyone for the Gulf Resources 2012 Third Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions) And please Ms. Ma, you may begin your conference.
Thank you, operator. Good morning, ladies and gentlemen and good evening to those of you joining us from China. And I would like to welcome all of you to Gulf Resources Third Quarter 2012 Earnings Conference Call. My name is Max, the IR Manager of the company. Our CEO and CFO of the company is Mr. Xiaobin Liu and Mr. Min Li will also join our call today.
I will be offering translation for the managements comment for the Company’s operating results. I wanted to remind you, who are listening in this call, our managements remark will contain forward-looking statement, which are subject to risk and uncertainty. The management may make additional forward-looking statement before the Company claims the protection of Safe Harbor for forward-looking statements and contains in the Private Securities Litigation Reform Act of 1995.
Actual results may differ from those discussed today depending upon a number of risk factor, including, but not limited to, the general economic business condition in China. Future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from the existing and new competitors for bromine and other oilfield, agricultural and power production chemicals and changing technology, ability to make future bromine asset purchases and various other factors beyond the Company’s control.
All forward looking statement are expressly qualified in their entirety by this cautionary statement and the risks factors detailed in the Company’s reports filed with the SEC. Accordingly, our company believes the expectation reflected in these forward-looking statements are reasonable. And there can be no assurance of such exhibits proved to be correct.
In addition, any reference for the company’s future performance represents the management estimate as of today the 9th of November, 2012. Gulf Resources assume no obligations after these projections in the future as market conditions change. For those of you unable to listen to the entire call at this time, a replay will be available for 14 days at the Company’s website. That is also accessible to broadcast and the link accessible through our website. Please look at press release issued earlier for details.
It is now my pleasure to turn this call to Mr. Liu, the Company’s CEO, who is going to provide some initial remark and then I will translate.
First of all, thank you for participating in our third quarter 2012 earnings conference call. The Chinese economy occurring at a lower paces mainly as a result of percentage in private investments and tight control over housing prices. The past few months of the fiscal year 2012 had also been regarded as the slowest growth period, (inaudible) the bromine prices have recorded the lowest selling prices in mid September in the recent years.
Our all other present segments were also negatively affected, any less or decrease in market demand in the varying degrees for all our segment products and comparisons to the same period last year, we recorded a significantly lower operating performers in the third quarter of this year. Primarily due to the reduction of bromine price volumes, while the average bromine prices are declined on $3,597 per ton in the same period of last year, $2,899 per ton in the third quarter of this year.
The sales price of the presto remains almost unchanged compared to the third quarter of 2011 however, the sales volume had decreased due to an unfavorable market condition in the chemical segment despite an increase achieved in the sales price of oil and gas additives and the sales volumes of pesticides manufacturing additives, chemical product had a recorded lower performance in terms of those sales price in the sales volume.
In the near term, we are exposed to the influence on the slowdown in economy and uncertainty of the economic policies after the leadership change in the central government. And we cautiously express economic conditions as far as the bromine prices to remain at a constant level but slightly down in the rest of the year and we will manage cost changes and we’re confident and we’ll try to accomplish performance target set forth in the 2012 earning comparable chart.
Thank you, Mr. Liu. I’m going to continue with presenting financial results for the third quarter of 2012 on the behalf of the CEO. The slowdown in the economy growth in China have affected the chemical industry, and caused the selling price and sales volume in bromine to be lower than the same period of last year, due to the weakening lost demand and with the main factor that caused the company to report a lower performance in the third quarter of this in comparisons to the same period of last year.
The average selling price of the bromine had decreased from 3,597 per metric ton for the third quarter in 2011 to 2,899 per metric ton, per dollar per metric tons for this quarter, representing a decrease of nearly 20%, the company believes the bromine prices will slightly increase by a small degree, should the economic conditions remains constant in the rest of the year.
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