Gulf Resources, Inc.

Greetings, ladies and gentlemen, and welcome to the Gulf Resources 2022 Quarter Earnings Conference. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Helen Chu. The floor is yours.

Thank you, Operator.

Good morning, ladies and gentlemen, and good evening to those of you Thank you for joining us from China, U.S., and we'd like to welcome all of you to GovResources' second quarter 2022 earnings conference call. I'm Helen Xu, the ad director. The company's CEO, Mr. Xiaobin Liu, COO, Mr. Nexi Niu, will also join this call today. I'd like to remind you to all of our listeners that in this call, certain management statements during the call will contain four looking statements, information about the Gulf resources. Incorporation 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. Actual results may differ from those discussed today, taking into account a number of risk factors, including but not limited to the general economic and business condition in the PRC, the risks associated with the COVID-19 pandemic outbreak, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional completion from existing and new completion from the bromine and the other oil fields and power production chemicals, changing technology, ability to make future bromine assets, and the various other factors beyond its control. All forelooking statements are extremely qualified in their entirety by these cautionary statements and the risk factors detailed with the company's report filed with the SEC. Gulf Resources assumes no obligation to revise or update any forelooking statements to reflect events or circumstances after the date of this call. Accordingly, Our company believes expectations reflecting in those forward-looking statements are reasonable and there can be no assurance of such will prove to be correct. In addition, any reference to a company's future performance represents the management's estimates as of today, the 15th of August 2022. For those of you unable to listen to the entire call at this time, A replay will be available at the company's website. The call is also accessible through the webcast and the link is accessible through our website. So please locate our press release issued earlier for the details. Now that the company has reported a strong quarterly profit with hopefully stronger quarterly numbers in the coming quarters, We are going to increase our efforts to communicate with our investors. We welcome you to provide suggestions to our IR management team. On this call, I will review the second quarter and the six-month results first, and then turn the call over to Mr. Miao and Mr. Liu for their commentary. So now, firstly, let's look at the three-month period ending June 30, 2002. We are pleased to have reported a strong and profitable second quarter in year 2022. Revenues increased 41% to $15.7 million. Gross profit increased 80% to approximately $7.6 million. Income from operations were approximately $5.1 million compared to a loss of approximately $2.4 million. Net income was $3.9 million compared to a loss of $2.7 million. Earnings per share were $0.37 compared to a loss of $0.26. Six-month period ended June 30, 2002. Net revenues increased 50% to approximately $24.6 million. Gross profit increased 126% to approximately income from the operation were approximately $5 million compared to a loss of approximately $5.7 million. Net income was $3.8 million compared to a loss of $5.2 million. Earnings per share were $0.36 compared to a loss per share of $0.50. Now let's look at the second quarter. business segment by segment. Firstly, let's look at bombing. Bombing revenue in the second quarter increased 38% to 13.9 million. The primary contributor to the higher revenue was the increase in the selling price. In second quarter, the average selling price was $7,740 compared to $5,556 in the same quarter. of the previous year. There's always a lag in the average selling price compared to the market price, and the company fulfills orders based on when they are received. During the quarter, the company sold 1,795 tons of roaming, slightly lower than 1,805 tons in the previous year. During the second quarter, in order to control COVID-19, the government made a series of unannounced inspections. That caused the company to shut and then reopened facilities. During the second quarter of 2021, there was one full inspection. The company believed the inspection in 2022 had the most significant impact on production. than it did in the inspection in the year 2021. The cost of revenues in bromine was approximately $6.9 million, an increase of approximately $1.3 million from the same quarter of the previous year. The price of bromine in China, the RMB has appreciated approximately over 100%. September 2020. Although the Chinese economy has slowed, roaming prices remained very strong for two primary reasons. Firstly, the demand remains strong for fire retardants, offshore drilling, and pharmaceuticals. Secondly, supply is constrained, both because older fields may have lower utilization and because many countries like China have forced the closing of bromine facilities for environmental reasons. In a recent press release, Ebermar, one of the world's largest producers of bromine, which stated that tight market conditions continue to drive strong demand and favorable pricing for bromine. We believe the supply and demand balance for bromine remains extremely promising. To comply with the new government directive, the company separated bromine and crude salt into two business separate entities. As a result of this relocation, bromine received a significant higher allocation of expenses than in previous years. Even with the higher allocation of costs, income from bromine segment increased 98.5% to approximately $5.3 million from approximately $2.7 million. In the quarter, the company spent approximately $32.8 million, mainly in its bromine wells, aqueducts, and the installation of high and low voltage lines for bromine wells. The company believes this expenditure may enable it to maintain or slightly increase its utilization in the bromine segment in future quarters. The company continues to believe it will receive permission to open one of its closed facilities in the near future and hopes to be able to open a second in the first half of year 2023. On August 3, 2022, Apple Mall, as we discussed earlier, which stated in its press release, it believes the tech market conditions continue to drive strong demand and stable pricing for bromine. The company also believes the same conditions may apply to its business in China. Now let's look at the second quarter results for the crude salt segment. GoodSort revenues increased 62% to approximately $1.8 million. There was a 10% increase in production in tons and a 47% increase in average enterprise. The cost of net revenue decreased by 9%, largely as a result of the reallocation of cost. GoodSort reported income from operations of $1,142,968 compared to a loss of $578,435. Now let's look at the chemical segments in the second quarter, 2022 results. The chemical segments were zero. The net loss were 4.2%. During the quarter, COVID restrictions as well as supply chain issues caused the delays in receiving some of the previous order machinery and equipment, including wastewater treatment and solid waste treatment equipment. The company is working with existing suppliers and may identify new suppliers so it can complete construction of its factory based on the delivery. To date, the company has spent approximately $45.6 million on its new factory. It is believed the total cost will be approximately $69 million. The company cannot currently project when construction will be completed and production will begin, but does not believe that delays will impact the cost of the projection or long-term profitability. The company will update our investors as soon as the wastewater treatment and solid waste treatment equipment is delivered. Now let's look at natural gas in this quarter. Natural gas segment has zero revenue and a net loss of $61,699, roughly equal to the loss in the previous year, pursued to the opinion of the Ministry of Natural Resources on several issues in promoting the reform of mineral resource management trial by the Ministry of Natural Resources on January 9, 2020. which came in effect on May 1st, 2020. Privately owned enterprises are allowed to participate in the natural gas production. The company plans to proceed with its application for the natural gas and project approvals with related government departments until the government planning has been finalized. Now let's look at the balance sheet. The company has cash of approximately $79.1 million. Total assets were approximately $298.6 million. Total liabilities were approximately $23 million. Shareholder's equity was approximately $275.6 million. Based on the shares issued and outstanding, which is $10,471,000, 1,924 shares, book value per share for shareholders' equity per share, worth $26.32. Cash flow. The company generated approximately $18.5 million in cash flow from operations versus $7 million in the previous year. The company invested approximately $33.2 million in its growing business mainly for bromine wells, echo ducts, and the installation of high and low voltage lines for bromine wells. The change in the value of the RMB to the U.S. dollar caused a reduction in cash and the cash equivalence of approximately $1.6 million versus a credit of $1.9 million. For other financials, In the second quarter, direct factory and overhead costs for closed factories were approximately $1.9 million versus $1.4 million in the same period of previous year. Corporate costs declined to $67,987 from approximately $3.2 million. In the second quarter of the year 2021, the company incurred approximately $3.1 million in charges for the stock grant to mandate. There were no stock grants in the second quarter of 2022. Foreign currency translation adjustment. For the quarter, the company had a negative foreign translation adjustment of approximately $16.4 million versus a positive adjustment of approximately $5.3 million in the previous year. This adjustment was caused by an approximately 6.1% decline of RMB versus the U.S. dollar. Adjustment impacts all balance sheet translation into U.S.

dollar.

Now let's look at our six-month results by segment. Firstly, the revenue in Bromley settlement increased 48% to approximately $22 million. Net selling price increased 39%. Costs increased 19% to approximately $10.8 million. Income from operations increased 376%. to approximately $6.7 million despite the higher allocation of costs as a result of separating salt from bromine segments. Cool salt. The loss from cool salt segments from abrasion was approximately $379,000 versus a loss of $1.6 million. Chemical and natural gas. chemical products lost approximately $988,000, and natural gas lost approximately $88,000, as neither business had revenue in this six months. Now, let me send the call back to Mr. Miao and Mr. Liu for their commentary. Hello, Mr. Miao.

Hello. Hello.

Hello everyone, I am the COO of the company. First of all, I welcome everyone to participate in the Taiwan resources. The second season of 2022 and the above-mentioned telecommunications conference. This year, the company has updated some of its new buildings and other construction facilities. We should be able to maintain or a higher rate of use and production. The price of embroidery continues to rise. The average price of this season is 7740 dollars. With the easing of the domestic epidemic, we expect that the demand for embroidery will increase gradually. The combination of the high rate of use and high pricing of embroidery will lead to the third season and the significant improvement of future profits. At the same time, we also want to remind investors that the Chinese New Year in 2023 is 10 days ahead of 2022. In this case, the government may have to close the factories in advance. However, if necessary, a small number of sales can start from the fourth quarter of 2022 to the first quarter of 2023. In addition, we look forward to the approval of a new factory in the near future or the reopening of a new factory, because we have already done a lot of work in this factory. We also anticipate that the investment in the future will mainly be within the scope of the repair factory and the factory. We look forward to the repair part of the company

So I will do the translation for Mr. Miao's commentary. Mr. Miao said that, hello, hi, everyone. I'm the company's CEO, Miao Naihui. So welcome to AttendGov resources, second quarter and first half year 2022 earnings conference call. With our new wealth updated and other bromine facilities updated, the company should be able to maintain or slightly increase its utilization rate and production in the remainder year of 2022. Prices continue to be very strong for bromine. Our average selling price in the second quarter was $7,340. As COVID-19 continues, We expect increase in demand for bromine and related products. The combination of higher utilization and higher pricing should lead to significant improvement in the profit in the third quarter and beyond in our bromine segment. We would, however, like to remind our investors that Chinese New Year is 10 days earlier in than it was in year 2022. We do not know if the government will require closing of facilities, but if it does, a small amount of seals could be transferred from the fourth quarter 2022 into first quarter 2023. In addition, we are hopefully receiving approval to reopen one factory in the near future. Because we have already made a lot of work in this factory, we expect further capital expenditures will be within the factory site only. We look forward to strong profits in the coming quarters.

Hello, President Liu. Hello, everyone.

I am the company's CEO, Liu Xiaobin. First of all, I would like to welcome everyone to participate in the second quarter of 2022 and the press conference in the second quarter of 2022. We are very happy to report that despite the interference of the COVID-19 epidemic, the company's revenue per share in the second quarter has still reached $0.37.

We believe that will continue to grow in the future.

We are working hard to solve the supply chain problems of new factories, water supply and freight processing equipment. Once the equipment is delivered, we will be able to further complete the construction and start production. Based on the needs of drugs and its subsidiary products, as well as the needs of the market for other chemical drugs used in the market, We know that investors hope that companies will pay their shares or buy back their shares, just as we said before. We believe that we will can use export income to buy back stocks or pay off stocks. We thank the shareholders for their patience. Although we did not make a prediction, but according to the current price of Xiu Shu, we expect that the operating profit in the remaining time this year will be higher than the previous half year. With the possibility of another Xiu Shu factory to open, the potential of the company's flower factory business and the opportunity in Sichuan 我们相信公司的未来是非常光明的。 谢谢罗总,谢谢Mr.

Liu.

Now we will do the translation for Mr. Liu's commentary. Mr. Liu said that, hello everyone, I'm company CEO Mr. Xiaobin Liu. First of all, welcome all of you to attend Gulf Resources second quarter and first half year 2022 earnings conference call. We are very pleased to have reported earnings of 30 cents per share in this quarter despite the COVID disruption. We believe earnings will continue to be strengthened. We are working hard to solve the supply chain issues with our wastewater and solid waste treatment equipment for our new chemical factory. Once this equipment is delivered, we will be able to complete the construction and begin trail protection and test production. Based on the market for pharmaceuticals and their byproducts, as well as the market for other chemicals using bromine, we believe our chemical factory will produce strong returns. We also believe that we will be able to produce natural gas and bromine in Sichuan province. At this time, Landmark has not received any stock grants for year 2022 yet. If it does receive stock grants in coming quarters, the grants numbers will be lower than last year. We appreciate the patience of our shareholders. While we are not making projections based on the current price of raw meat, the expected remainder of the year will be extremely profitable. We know that our investors would like companies to pay us dividends or buy back stocks. As we have said before, we would be very much to be able to do this. But unfortunately, with currency controls, we cannot get money out of China. Our long-term plan is to be able to produce pharmaceutical chemicals that can be exported to other countries, especially those in Asia. where there is a high demand for these products. Once we are producing these pharmaceutical chemicals, we believe we will be able to use export revenues to buy back stock or pay dividends. We appreciate the patience of our shareholders. While we are not making projections based on the current price of bromine, we expect the remainder of the year will be profitable. is the likelihood of another promise that she may begin to open soon. The potential of our chemical business and the opportunities in Sichuan Province. We believe our future will be very bright.

So, John. Hi, operator. Yes, Helen. Hello?

Hello?

Can we open up for the QA section?

Absolutely. Thank you. Ladies and gentlemen, the floor is open for questions. If you have any questions or comments, please indicate so by pressing star 1 on your touchtone phone. Pressing star 2 will remove you from the queue should your question be answered. And lastly, while posing your question, please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we poll for questions. Once again, that's Star 1 if you have a question or a comment. Okay, and the first question is coming from James Holtz, private investor. James, your line is live.

Yes. What percentage of the $33 million of bromine capital expenses in Q2 was for currently operating bromine factories, and what percentage was for the closed factories?

Oh, hi, James.

I didn't get your question very clearly. Do you mind just explaining it again?

What percentage of the $33 million of bromine capital expenses for Q2 was for currently operating bromine factories, and what percentage was for the closed factories?

OK.

This is 33 was the six-month expenditure, right? Okay.

No, this is for the quarter, but go ahead.

32 something, I think. 32.6, average rounds to 33.

Yeah. Okay. Thank you. Got it. Lu Dong, that is the first question is from James.

His question is that when we were in the second quarter, there was a big expenditure of 32.6 million. This expenditure is mainly used on the well and power lines. Then he wanted to ask, if this is divided by proportion, how much is put in the current operating repair factory, and how much is put on the investment in the repair factory that is not operating?

Um, Oh, hi James.

Basically, these expenditures are mainly for the current operating facilities because if those close the facilities, we do not have a pool yet. We cannot put a lot of investment on it, you know. And this major investment are for the reason because we have some old wells and aqueducts which have been used, need to be, it's lifetime long. So we need to write off it. In order to maintain the utilization and the production, we had to do new wells and aqueducts and do the electricity for this well, like we said, for the high and low voltage line for this well and aqueduct as well.

So there was no money spent on the closed facilities. Is that correct for capital? No money spent on closed facilities.

That is to say, is there no expenditure on the currently closed retail market?

Yes, there are some, only about 2%.

That is, some of the most important surveillance devices that we have in the market, and so on. Some perfect investments.

Yes, there are maybe two percentage around. Approximately, but we did not do the clearly calculation. Maybe around two percentage. I mean for the benzene side, like the supervision control and the safety production, that's all.

Okay. I have a second question, and that is what capital expenditures do you expect for the remainder of this year? And what percentage will be for the chemical segment? What percentage for the bromine, current bromine factories? And what percentage for the closed factories? Or just what dollars do you expect to spend on the bromine segment? And what dollars do you expect to spend on the chemical factory for the remainder of the year? um um um um um

Hello? Hello? Hello? It looks like we lost his line. We'll have him reconnected shortly. One moment. Okay. Okay. Hi, James.

Maybe I can answer your question first, then Mr. Liu dial in. Firstly, if we look at our chemical segment, the total cost estimates we predicted were 69 million. and the company has spent 46 million so there will be like a totally 23 million for budget for our chemical business but this 23 million The total budget is $69 million. We have spent $45.6 million so far. There may be another $23 million. The next $23 million will depend on the time the equipment arrives. Please continue. What about the total investment? For example, the investment in other aspects of sales.

It depends on whether we can get a permit from the government to open the factory. A permit from the government to open the factory.

A permit. But the police department should not have invested in this kind of project in the second half of the year, right?

Yes, they did not plan to invest in this kind of project in the second half of the year. If we get a permit, our new factory Hi James, I may continue to explain the comments from you.

That I explained earlier that the total budget for chemical business is 69 million. And until today, the company has spent 45.6 million on this new factory. So there will be approximately 23 million left for its chemical budget. It depends on when we can get the equipment fully delivered and when we can start our continue construction on this project for chemical segments. So if we look at the bromine segments, we will not have any expenditure plan for our current producing facilities for the rest of the year. But if we have about one of factory approval to reopen in the next half year, there will be around $1 million investment for this factory, which needs to restart its production. So we need to update some of its equipment.

So if I understand you correct, for the bromine segment, for the rest of this year, you expected most $1 million. And for the chemical segment, you expect at most $23 million, although if you don't get the equipment delivered, it will be some amount less than the $23 million. Is that correct?

Yes. Yes, that's correct.

Okay. I will let other people ask some questions, and then I'll come back later on.

Okay. Thank you. Okay. The next question is coming from Randy Liggett, private investor. Randy, your line is live. Hey, Helen.

Hope you're doing well.

Hi, Randy. Hi, Randy. How you doing? Fine. Fine, thank you.

Good, I'm glad. A couple quick questions. In pet, you know, I can't remember, but up where the natural gas, you know, the potential is up there, in PetroChina up there, and if they are, I think there's some big company up there, are they, I mean, are they doing natural gas right at the moment. And I'm trying to think what my other question was. Also, you know, what is the holdup? I mean, are they coming... Is the government coming back, y'all, on these factories and everything and saying, you need to do this, you need to do that? This has been going on for a long time. And, you know, just wondering about that. And, you know, how often... How many days were y'all shut down because of the COVID inspections? And that's it for the time being.

Okay. Hi, Randy.

I want to just repeat your question if I get it clear. Firstly, of your question is, in Sichuan, if the petroleum China are there, if it is there, are they producing natural gas now, right? Yes, ma'am. Yes, ma'am. Okay.

Right.

The second question is regarding the COVID-19 expectation. You said how long it had for this quarter, for the second quarter.

Yes, ma'am.

Okay. Got you. Thank you. I will do the translation. Liu Zong, this second question is from Randy. Randy has two questions. The first question he wants to ask is that Our project in Sichuan, is Zhong Shiyou also there? And are they now in the normal opening of the solar system? If they are opening, then what is it that hinders the progress of our company in Sichuan? This is the first question. The second question, he wants to ask is, in the second quarter, we have this government indefinitely, that is, when it comes to the epidemic, there are several indefinitely, this is not notified in advance, this inspection. How long has this been going on?

Okay, let me answer the first question. First of all, the Chinese-made well is not far from us. It's about two kilometers away. At the moment, they are trying to produce it. or continue to try to produce. The biggest difference between us and them is that they are state-owned enterprises. State-owned enterprises are the ones that China specializes in for oil production. The natural gas resources are one of the major state-owned enterprises. And we are a private enterprise. Now the policy of state-owned enterprises is mainly limited to private enterprises. So we are still waiting for the government's announcement. This is the first question. The second question is about short-term information. Sometimes it stops for one day, sometimes for two or three days. We have calculated that it may stop for 11 or 12 days.

OK. Hi, Randy.

Firstly, let's look at your first question regarding the natural gas project. So as we know that Petroleum China, they have located in Sichuan, and which is not far from our company's site, which is around two kilometers only far. And they are doing their trial production currently. They did not start formal production yet. And based on our understanding, you know, because Petroleum China, which is a state-owned enterprise, and they have a special policy, they can start virtual production. Now, currently, the Chinese government, you know, their restrictions to produce natural gas and hydrogen water in Sichuan province are still mainly restricted. enterprises like us, which, like you know, even though state, they promote the privately owned enterprise to participate in this area. So until now, we are still waiting for the government approval on this area for us. This is the first question. Second question is, in the second quarter, Because there are many times, you know, unexpected due to this COVID-19, unexpected, unnoticed inspections from government to our producing, to our company site. Sometimes for one day, sometimes for two days. So they're just coming in there and checking everybody? Yes, they come and check. They do not tell you, okay, like two days early we are going to come to check because COVID-19, you know, it comes very quickly and they just say, okay, we come to check one or two days, one time. It's not like last year, second quarter, which lasts for a long time. But this lasts for a very short time but unnoticed. So totally we calculated it may be around 11 to 12 days for this quarter.

Okay. One last question. Have y'all made any inroads with any of the EV car manufacturers about their batteries or the battery makers? Because I keep reading about bromine is very important to those. And that'll be the end, my last question.

Okay, thank you. Thank you. Because he saw a lot of articles saying that this system can be used for new energy batteries. It depends on whether our sales are going in this direction. Hello? Hello? Randy's last question. Is there any sales of new energy and battery in our company? Because I saw a lot of reports on the software. That is to say, is the current sales of new energy and battery. At present, our customers are mainly some original customers.

There are no new customers. Hi, Renzi.

Currently, our customers are still, you know, the old relation customers. So we do not see any, like you said, this situation. But next half year, you know, our production will be increased. And we may look for opportunities in this area.

Okay. Thanks so much, Ellen. Good talk to you.

Well, you are welcome. Thank you.

Okay. The next question is coming from Q Ming Jin with Doral Capital. Your line is live.

Hello, everyone. My question is that... Recently, five major state-owned Chinese companies listed in U.S. have announced to be delisted from U.S. market, like Alibaba and PetroChina and China Life Insurance. Of course, they're multi-billion dollar market cap companies versus golf resources. It's about teeny market cap, $46 million market cap. My question is that in the world that is happening, has the management thought that the ongoing auditing team for golf resources meet that Security and Exchange Commission auditing requirement. Do you think that the existing auditing team meet the requirement of the SEC requirement? If the management does not believe it meet how far or how satisfied the management think, the current auditing team, meet the requirement of SEC. If not, what the management is going to do to adjust the difference of the auditing requirement so that Gulf resources will shrink the risk of potentially being delisted? That's my question. Can you share some ideas on that, please?

Okay, thank you. I got you. I will share with you. If the company has any plans, if they encounter this situation, the second question is about the audit team that the company is currently using. Does the company management think that they have met the requirements of the U.S. Audit Council, including audit drafts and some safety measures? If the company is thinking about this audit system issue, If the government has further requirements, will the company's engineering team be able to meet the requirements? First of all, I will answer the first question.

We are also concerned about the recent announcements of the US government and Chinese companies. There is a possibility that they will withdraw from the U.S. capital market. But we think the reason is that the U.S. government's requirements are mainly due to the fact that some of these companies' audit data may not be transparent and do not meet the requirements of some of the U.S. regulators. So the U.S. Securities Commission may make these companies lose their jobs. But we, as an enterprise, we think we've checked ourselves. We don't think there are any problems in this regard. All of our information, including the audit draft, we don't have information that does not belong to the Chinese government, that is, information about IP. So it's all timely. So we think that the company's risk in this regard should not be in the current policy. Of course, with some of the subsequent policies, will there be any changes? We are also constantly paying attention to some of the new laws and policies in the United States. This is the first question. The second question is, do we have any restrictions on our auditors? The information is provided to them on time. We also ask them to fully comply with some requirements and laws of the U.S. Attorney General's Office. We believe they will meet the requirements of the U.S. Attorney General's Office.

Okay, thank you. Hi, Queenie. Here is a response from Ms. Liu. Firstly, regarding your first question, yes, what you mentioned that the company also realized this problem and this news recently. Firstly, the SEC requires those companies to be delisted from U.S. market. The major reason, because their disclosure are not transparent enough and they cannot submit sufficient documents and auditing files to SEC. But we re-analysed our situation. We have different position with them because our company, we are beyond the China, you know, the control, Chinese government information control. we do not have, you know, those information which we cannot come, like disclose to SEC or U.S. And so we think our auditing file and our all information disclosed are certified to U.S. SEC. And of course, these are based on current China policy and the current SEC requirement. We think we do not, we will not have the, the situation you mentioned for those delisting. But of course, we cannot predict for future any if the policy of Chinese government, their government policy changed or SEC changed. This is first question. Secondly, the question about our auditing team. We always provide our documents, our information, and all the disclosure documents to our auditors on time and with sufficient disclosure. We want to make sure they satisfy and meet all the requirements from U.S. government and SEC. So we do not think we have such a problem as well.

Hello? Okay, very good. Thank you very much.

Okay, you're welcome. Okay, the next question is, we have a follow-up actually from James Holtz. James, your line is live.

Thank you. You have said that you expect the quantity of roaming production in Q3 to exceed that in Q2, and you've also said that you expected the sale price in Q3, to exceed that in Q2. How much more money do you expect, how much more profits do you expect to make in Q3 than in Q2?

Okay, thank you, James. 刘总,这个是James的接下来的一个问题, 就是第一位投资人他问的问题。 他说公司有提到我们期待着第三季度时候 休息产量会比第二季度高, Then we also expect that the sales price of the third quarter will be higher than that of the second quarter. Then let's look at the profits of the third quarter in general. How much do you think will be higher than Q2?

How much is the second quarter? Um, um, Hi, James.

So like you said, this tourism, of course, we expect our third quarter revenues will be higher than second quarter. But currently, we cannot provide it yet because, you know, firstly, for fair disclosure to all our investors, And secondly, we really cannot assess the exact number. But we will provide guidance for this segment maybe by this month.

Guidance for the bromine segment, you'll provide guidance this month in August?

Yeah. Yes.

OK. Yes.

Yes.

Thank you very much.

You're welcome.

Okay, we have one remaining question coming from Kuming Jin from Doral. Your line is live.

I have not finished up my questions. I know I was interrupted. My next question is, what is the name of the current auditor, and then where are they located? That's my first question. My second question is that by looking at your 27... Revenue of over $1.7 million. Of course, it's hard to predict when you would be reaching that level of revenue per government regulations. But how would you project that the company will be back to over $100 million in revenue in the next few years? Is there something you may share some light on that?

Give me over 100 revenue per year.

That was in 27, 27 revenue. I mean, is there any way that a management can share, Mr. Liu can share some light when you would be potentially projected to reach that 27, 27, 2017 year revenue and then over $2 per share income.

OK.

I do not get your question, like $27 million during mid-year, 2027? Yeah, my apology. 2017 year revenue is over $107 million in revenue.

I apologize for the mistake. Yes, 2017 revenue is over $107 million, and per share income it's over $2 per share. Okay.

Mr. Liu, this question is from an investor.

He asked about the name of our current auditor and their address. The next question is that the company is looking forward to when we can become a company with a profit of $2 per share. Regarding your first question, the auditor name is WWC, and they have offices in China and the U.S. as well.

I'm sorry, I didn't hear the name of it.

WWC.

WWC, that's the abbreviation?

Yes. If you send me an email, I can send you their full name.

Okay. Okay.

Hi, operator.

Yes.

Hello. Yes, I'm here, Helen.

Okay, this concludes today's portion of the call for Q&A. Okay, thank you very much for adding this call. Thank you, Helen.

You're welcome.

Thank you.

Have a good night, all. Thank you.

Thank you ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.