Gulf Resources, Inc.

Welcome to the Gulf Resource Second Quarter 2023 Earnings Conference. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Helen Chu. You may begin.

Thank you, operator. Good morning, ladies and gentlemen, and good evening to those of you joining us from the U.S. And we'd like to welcome all of you to Public Resources' second quarter 2023 conference call. I'm Helen Xu, the ad director. Our CEO of the company, Mr. Shelby Liu, will also join this call today. I'd like to remind you to all our listeners that in this call, certain management statements during the call will contain forelooking information about Gulf Resources Incorporation and its subsidiary business and products within the meaning of Rule 175 under Securities Act of 1933 and Rule 3B-6 under the Securities Exchange 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 conditions 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 competition from existing and new competition from the bromine and other oil fields, and power production chemicals, changing technology, the ability to make future bromine assets, and the various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risk factors detailed with the company's reports filed with the SEC. Gulf Resources assumes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. 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 the company's future performance represents the management's estimate as of today, the 14th of August 2023 Eastern Time. 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 website. And the link is accessible through our website too. So please locate our press release issued earlier for the details. So we will review the results of this quarter first. I'd like to then turn the call back to Mr. Liu for his comments. So firstly, Let's look at the Chinese economy for this quarter. The Chinese economy continued to suffer a slowdown. Our products were especially impacted. The demand for bromine was weak with the control of COVID-19. The demand for sanitizers dried up, especially since many companies had built up stock anticipating higher demand. The slowdown in construction also impacted the sales of fire retardants. As a result, roaming prices based on sensors.com, which had been on the 69,500 tons on October 16, 2021, during the height of COVID, dropped to unbeaten $18,000 only on June 30, 2023, replaying a decline of 74%. The company expects roaming prices may improve in the future. In fact, by August 10, 2023, roaming prices had increased to RMB 24,200. However, at this time, it is difficult to estimate the timing of the improvement. In addition to the decline in the price of roaming, the RMB declined against the U.S. dollar. Over the extended term, this could be a significant benefit for our company. With the lower RMB, imports of chemicals using bromine are more expensive, meaning that domestic producers should give share exports of pharmaceuticals and other chemicals that may be cheaper, meaning the opportunities for building an export business may increase. Given the pricing of bromine in the second quarter, companies believe that most companies in the bromine industry and most companies producing chemicals made from bromine have not been profitable. We have yet to see many bankruptcies, but we assume many may come. Given the current market conditions, we believe that the companies currently have strong cash positions and a balanced sheet. Accordingly, the company made two decisions to protect capital and plan for future operations. It has slowed, seeking current approval for its rest to close Bromley factories. The opening of these factories may require the company to build aqueducts and drill new wells. This is the current market for Bromley. We have sufficient capacity and are not willing to expense. additional capital until we see a stronger rebound in the market. We still expect to receive permission to open these factories. However, there is no point to spending the capital until they can operate profitably. As previously announced, the company has also postponed the delivery of the remaining equipment for its chemical factories. while it re-evaluates the market opportunities. The company is committed to its chemical business and believes it will be profitable over the long term. However, different products will require slightly different final equipment. For example, some products which pollute more heavily may require more complex pollution-restricting equipment. During this period, when most chemical companies are losing money, the company is undertaking a thorough review of the potential market so it can ensure that it is ordering the most applicable equipment. Once the review is finalized and the market has stabilized, we will have the remainder of our equipment delivered and assembled. Then we will begin trial and test production. So now let's look at the financial results. Because of the weakness of the Chinese economy and the huge decline in the broad forming price, the company reported an after-tax loss of approximately $681.8 million for the second quarter and approximately $1.2 million for the six months ended June 30, 2003. However, during the six-month period, the company generated cash from operations of approximately $11 million. These numbers reflected the potential strength of our business model. At the end of the second quarter, our balance sheet was drawn. We have approximately cash of $1. $115 million, and approximately representing $11.05 per share. The net net cash, which is cash minus all liabilities, approximately $97 million, representing $9.32 per share, working capital. which is approximately $102.6 million, which represents $10.79 per share. Shareholder's equity, approximately $260 million, and representing $24.95 per share. We're very pleased to have weathered the shutdown while generating strong cash flow and strengthening our balance sheet. So for the company's future goals and objectives, the company expects that the economy in general and the growing market in particular to improve. As of August 8th, growing market prices had increased 34% since the end of the second quarter and 11% from the average selling price during the second quarter. During the second quarter, growing revenues were approximately $7.4 million. If the selling prices had been 11% higher, growing revenues would have been approximately $8.2 million. This would have provided us with an additional gross profit of approximately $809,000. In the quarter, our last default tax is worth approximately $874.5 million, meaning that a price increase slightly more than 11% may have taken us to break even. As of August 14th, we can see that market price for bromine was $24,600 RMB. which is representing an increase of 37% since the end of the second quarter, and 10.8% from the average selling price during the second quarter. This would bring more extra profit based on our previous prediction. So when bombing prices improve further, it will push ahead and get approval for the company's rest remaining bromine factories. The company is still expecting to increase its chemical business. At the present time, many chemical factories are still struggling. For the economy in general and bromine products in particular to improve, we will be in a position to identify the best products for our new factories, have the remaining equipment tailored to our needs, and deliver complete and assembled, and then can begin trial and test production. The company is continuing to explore opportunities for exports so that it can gain financial flexibility. At the present time, the export market is quite depressed. The company is looking for products that it can produce and profitably export so Company can obtain capital, which we may consider to use to repurchase shares, and all pay are divinded. The company is still continuing in the discussion with the government of Dailin County on creating a joint venture for the exploration and production of natural gas and farming products in Sichuan. While there is no guarantee that the joint venture will be created But if the company is successful in partnering with the local government, substantial opportunities could be open to us. In Financial Results, which included you will see in our income statement, balance sheet, and cash flow statement for the three and six months ended June 30th, 2023. Alternative, which has been developed with the SEC, We present a full description of the segments of our business and the factors contributing to our lower sales and profits.

Hello. Hello.

First of all, I would like to welcome everyone to participate in the second quarter of the U.S. Coast Guard Operation Conference.

This is a difficult time.

We have been focusing on saving capital, fulfilling our long-term strategy, and preparing for the opportunities we see. You call it, it's it's a good one. The judge that you chose. So yeah, well, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I'm not, I The company currently has about $1.15 billion in cash. The company can continue to work hard to reopen the remaining two closed Xiuhe and Yanyan factories. We can also deliver the remaining equipment to the flower factory. But we strive to protect our capital to grasp the future opportunities we see. The investors of the company asked us what actions we would take to increase the value of shareholders. We believe that what is in front of us is a very objective opportunity. The Chinese economy will get better and better. The price of embroidery will rise. Our chemical factory will also open. We will find export products. If our joint venture is established, our opportunities in Sichuan will be much greater than we originally expected. We would like to remind investors that the management has used about 11 and a half years of hard work to exchange shares of the Taiwan Resource Company. No one wants to see the stock price rise more than we do. We are committed to creating progress through exports. When our business improves, we will take other measures, such as hiring investment bankers or IR companies, and consider merging or acquiring, so that we can create greater financial returns for you and us. Now, let me pass the phone over to Helen. Thank you for your attention.

I'll do the translation for Mr. Liu's comments. Hi, everyone. I'm Xiaobin Liu, the CEO of the company. First of all, welcome all of you to GovResult 2023 second quarter earnings conference call. So we can see there has been a difficult time for the company of our industry and the Chinese economy. We have focused on pre-Zero in capital. on our long-term strategy and preparing for opportunities we see ahead of us. We believe the economy will improve and booming and crucial profits will increase as well. We are carefully refining our plant for our eastern chemical plant so we can produce products that generate the higher level of profits We also continue to focus on identifying products that can be exported so the company can gain financial flexibility to consider support initiatives supporting shareholder value. While the company still does not know if its proposed joint venture in Sichuan will be approved, the potential could be significantly greater than its original plan. If the company can partner with the local government, the company should be able to drill more wells for both bromine and bromine and natural gas. Currently, the company has approximately $150 million in cash. It could have moved ahead with efforts to support the rest two remaining close bromine and crude salt factories. It could also have taken delivery of the equipment for our chemical factory. But we are committed to returning our capital for the opportunities we see ahead of us. The company's investors have asked about actions it will take to increase shareholder value. Companies believe that we have very substantial opportunities in front of us. The Chinese economy will get better, farming prices will rise, the chemical factory will open, and it will find products to export. If companies can get a joint venture established, the opportunities in Sichuan will be higher than we had originally anticipated. And the company Mentiman just want to remind our investors that Mentiman has traded more than 11 and a half years of compensation for shares in golf resources. No one wants to see the price of the shares appreciate more than we do. We are committed to generating cash from exports. When our business improves, the company will take other steps such as hiring investment bankers or IR firms and consider mergers or acquisitions so that it can produce strong financial returns for you and for us. So now we are open for the QA section.

Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment, please, while we poll for questions. Once again, that's star one if you have a question or a comment. The first question comes from Jay Bueller, private investor. Jay, please proceed.

Yeah, I have a question for Mr. Liu. Yeah, I wanted to ask, are you guys planning to repurchase shares?

Sorry? Hi, Jay. Sorry.

Are you planning to repurchase shares?

Repurchase shares.

Yeah, because that would be the best use of cash rather than speculating on a factory or exporting goods. You could just repurchase shares and increase the value for shareholders.

Okay. 李总,第一个问题来自头人J. 他说公司是否考虑回过股票? Well, uh, uh, uh, uh, uh, uh,

Okay, so this question has been asked previously by investors as well. And as Kami explained before, because due to the China government's restrictions on the money going overseas, And because the company does not have US dollar in overseas bank account. So the company is trying to find, you know, a way to maintain dollar in overseas. Then it's trying, that's why we explained that the company is trying to find a product with higher profit margin and which can be export. Then we can return dollar in overseas account and then to consider, you know, do any like improve our shareholders' value, including share with purchase and all share paid dividends. That's the way which can initiate our shareholders' value.

Thank you.

Okay, you're welcome.

Okay, the next question comes from Alan Peratka, private investor. Alan, please proceed.

Yes, good morning. Good morning, Alan. I don't call often, so once I call. The question I have is, of course, regarding share price. As you will hear, certainly the investors are really concerned. Since you announced the delay in the chemical factory, the share price went down the drain and now we are at the lowest ever and really close price compared to the group value of the company. If we wait an additional time for the chemical factory to be the solution to shareholder value, I don't know where the share price will be because investors are losing patience. So my question is, is the company looking in particular, I would say the CEO and the CFO must get a lot of pressure from the chairman. Are they looking at other ways of creating shareholder value or pushing the share price up? I've heard you talk to investment bankers. You mentioned that, which I was happy to hear. But is there a kind of a task force, like you have for the chemical factory? Is there a task force looking at the possibility of taking action to help the share price?

Sorry, Alan. Maybe my understanding is not clear. Can you just...

Let's have an accent. Sorry for my French accent too. So I'm just asking, is there any kind of action taken by the CEO and the CFO, which that would be the main people, to look at ways of improving the share price until we have a chemical factory that will create some export business to provide dollars? So is there, and you said, you mentioned you talk to investment banks. So, I mean, is there an action or is there some action, some people being in charge of looking at that?

Okay, okay, I got it. 刘总,这个问题是来自于Alan的。 然后呢,经常跟公司有一些就是这个问题上的互动通过邮件。 他的问题是说公司就是因为这个经济形势和销售行业的目前的这个 The company's performance has been very good. The company is also dedicated to helping shareholders to increase the value of shareholders. For example, the product export that we mentioned earlier. But on all these bases, the company has talked about it before, that is, it has contact with the investment bank. In other words, in all these things that have been talked about, the management of the company, including CEO and CFO, Have you talked to investors? Or do you think there are other ways to increase stock price? Because the current stock price has been falling. Has the company considered other measures? These years, we have not signed a formal agreement with any investor.

But we are also paying attention to this issue. um um

Okay, so thank you for your question.

And then, so as we know, these years, in recent years, the company has been discussion, field discussion, but we did not sign any like formal agreements with any bankers, investment bank or our firm yet. Because, like we all know that due to two major reasons, the COVID-19 for this year, which just, you know, like happened for past few years and the company's current projects which did not you know performed and completed well yet so when all these projects we have a more clear you know view then we can talk to the investment bank or IR firm to see how this you know, we can go and we will have more bargaining power in this discussion.

Okay, so but is somebody in charge of looking at helping the share price? I mean, the CEO or the CFO, is there somebody who has been appointed to do that, to really focus on this? I mean, we need somebody to be looking at it and I think that is a priority, okay, for sure.

Yeah, yeah. Yeah.

Okay.

Yeah, somebody and you Yeah.

And you will do something before the chemical factory. And you will do something before the chemical factory is ready because it could take a year or two before we get that. So are you going to do something or you are going to let the stock price keep falling like it has fallen for the last several months now?

OK. So the company's stock price, is there a company CEO or CFO who is observing it? And recently, because it has fallen more. And if we keep waiting for the chemical factory to make progress, it seems that the stock price is still falling. Before we wait for the progress of the chemical plant, will the company make some mistakes to maintain the stock price?

The reason why the stock price has fallen more recently, we think the most important thing is that the market price has fallen more from the highest point of more than 60,000 to the lowest point of more than 10,000, and it has fallen more than 70%. So it means that there are some reactions in the stock price. I think it should be a normal market phenomenon. Of course, our company is also very anxious. We are also considering Some other ideas, including this chemical factory, are you choosing some of the original products in the market? The current price has also dropped a lot, indeed a lot. For us, it may not necessarily be profitable after the establishment of the city. Instead, it is a kind of burden, so we are looking for new, more profitable products to make our investment more profitable. This is one aspect. On the other hand, we are also expanding our communication with local governments. Oh, hi, Alan.

For the share price, you know, the company management always been looking at it, including the sales and CEO. We all pay attention on it. We see, you know, the price of the share dropped. The major reason is due to, you know, if we're looking at the Brownian price, which dropped from 60, more than 60 RMB at the highest, and to recently more than 18,000 RMB. there is more than 70% drop in this warming price. And it looks like, you know, the warming price is being reflected to our share price. We, company management, also, you know, quite worry about our share price. So we think we have two, that's why we have two major ways to do. Firstly, if we look at our chemical business, and our chemical products because this area the products now with very low very low profit margin so the company that's why it stops its rest equipment to be delivered because the company wants to find new ways with other products which can have higher margin you know in order to bring the company with more net profit by doing this way may increase our shares price and the company's profit. Secondly, the company is in a deep discussion with Sichuan Dain Diamonds, with its best, company's best, to improve this process and to get it done as soon as it can. By doing this, it will provide the company with much higher opportunities in this area in exploring and producing bromine, halogen, and natural gas, you know, and try to bring the company with more opportunities and more possible net profit.

Okay. I let other people ask questions. I'll write to you a little bit more because the price of bromide has been coming back up and the share price keeps going down, so it's more than that. But I'll do it in writing to you later on, and I'll let other people ask questions. Okay? Thank you very much, and thank you for the whole team. Okay.

You're welcome. Okay, thank you.

The next question comes from Frank Manning, private investor. Frank, please proceed.

Yes, thank you. Your balance sheet shows cash of $115 million. Yes. At the end of Q2, your income statement shows interest income of $72,500 approximately for Q2. That's under 0.3% annual interest for average cash. Why is that interest so low? And is there a conservative way to increase the interest?

Okay.

The investment problem is that the company account shows that we have 115 million cash, but it shows that interest rates are very low. Why is the interest rate so low? And then, does the company take any action against this cash? We have not chosen any

The reason is that we are still very cautious. Because the choice of China, including some kind of financial support, most of the money in the past was invested in real estate, which can lead to a lot of money, which means that these companies' business So because the company is more like a conservative,

on its cash. So, like, that's why it did not do any, like, finance production in the bank, but we just put the money there for its safety. And even we did not put money, like, in trust or any other finance products. For example, like, the trust, which had a big problem, and because it put money to your estate industry, and now they have very that the funds are in risk and cannot be back. So based on the company's way of doing this, it's always conservative to make sure it's cash in a safe position, but not only looking for higher interest or return. That's why we have low, like you said, interest rate.

Okay, thank you.

Okay, the next question comes from Kuming Kin from Doral Capital Corporation. Kuming, please proceed.

Hi, good morning. I have a few questions. Question number one, from the last quarter report, Mr. Liu, the CEO, talked about exploring the export of your chemical products and can you share some light on what concrete plan or have you hired the hired people with knowledge to explore the export opportunities for your chemical products

Dora Capital. The question he is asking is, last year, you mentioned that the company is looking for an opportunity to export. Therefore, there is also funds overseas considering the possibility of financing or stock purchase in the future. Regarding the export, what is the company's current idea? Is there any progress? Are you considering hiring a third party agency to do this for the company?

Currently, we are investigating the product and the sales level of the product in the international market, as well as how to match it with our own technology and equipment. Because we don't have enough export capacity for our current products, we have to choose the right product and then invest in construction in China to export. This has a fairly long process. We are discussing these issues with some domestic experts and some relevant experts, but there is no special application. Okay, my next question is that the Bormin Prize has fluctuated and then

declined dramatically from 69,500 per ton in October 2021. And then it went down to approximately 18,000 per ton in October 23. My question is that what are the driving forces for this dramatic price fluctuation?

OK. Mr. Li, the next question is about the highest price of the price of embroidery. We mentioned that it was more than 60,000 yuan, and it was more than 18,000 yuan when it was the lowest price. What is the main reason for this price to drop? The main reason is China's real estate.

Okay. Do you anticipate the price... I'm sorry, go ahead.

Okay, so maybe for fairness to other shareholders, I think I would translate Mr. Liu's comments. The reason for the big drop in this price of bromine because of the real estate industry, you know, the far-retardant products, this is the first reason. Second reason is because of COVID-19. Before, the demand was in high for bromine, but after it's, you know, like passed. Then the demand for bromine which drives up the brownie price. The third reason is because the exports of pharmaceuticals from China to overseas. Okay, please continue.

There is another most important reason. When the price reached more than 60,000, we felt that there were some market movements. The price went up too fast. Normally, the price would not go up that high.

Okay, so another reason for the very high price, like almost 70,000 RMB at a time, because of the market reason. Normally, the market speculation, because normally, warming price wouldn't be that much high if without market speculation.

Okay, thank you. Do you anticipate, from your perspective or experience, that the Berman price is going to be kind of stabilized in the short term or maybe in the long term? Is that really the driving force of the revenue and also related to the shareholder price?

Okay. Mr. Liu, based on your experience, what do you think is the next trend in the price of sales? For example, how do you see the short-term, medium-term, and long-term trends? And then the price of sales as a major factor, does it affect the company's profits, including the company's stock price? Yes. I think that sales is a basic raw material.

First of all, it's limited in the global stock market. And the market is also relatively stable. Although it is affected by some factors, sometimes there is a kind of excessive operation at the price. When it reaches more than 60,000 yuan, we think it is an excessive speculation operation. When it reaches more than 10,000 yuan, it is also a kind of pessimistic and empty performance. It is not a normal market value response. We think it has a basic value for a basic product. In the future, I think it is still a steady price that is going up. We don't want it to go too far, too high, and we don't want it to go too far. That's it.

Are you very optimistic in terms of the price stabilization?

Your price is very confident. It will stabilize.

It will stabilize. It won't go up. okay so if you think that because you know bromine resources is a funding a major fundamental chemical raw material and this result is limited so as this If it's more than 60,000 RMB, they have a reason for the market speculation. But if there's too low price, like below 10,000 RMB or about approximately 10,000 RMB, this is realistic to the market reflection as well. So we think the price for bromine will be stabilized and go up. up slowly and this is what the companies be happy to see as well because we are in this industry and we do not want to do not want to see there is big fluctuation in the pricing of the bromide okay thank you my last question is the uh for your petroleum and natural gas product

You're working out a partnership with the government. How soon do you anticipate the approval and then start the production of the petroleum and natural gas product? And then what is the expected revenue and a profit margin if the production starts? Have you done any consulting to do an estimate on this future revenue and profit or margin, etc.?

Mr. Liu, this is Kunming's last question. It's about the company's Sichuan project. Because the company is discussing with the local government that this project How do we see the profits of production of natural gas and plastic products? Has the company discussed this matter with professional institutions? We have definitely discussed and made some preliminary analysis.

First of all, there are a lot of natural gas sources around it. And natural gas is a short-lived energy source in China. It is also an indispensable thing. We think it is a very valuable and stable business in the future. In addition, we have reported to investors that Sichuan's sewage content is several times higher than that of Shandong, but due to the impact of the geographical environment on Sichuan, the most important thing is that its environmental investment may be higher. But in general, we still think it has considerable investment value. It will also bring investment returns to shareholders. So we are now in a hurry to negotiate with the local government. Of course, we also know that there is a lot of competition in any matter. We are competing with us and doing some negotiation with the government. So we are working hard.

Do you anticipate a timeline for this?

Because this is a discussion with the government, so we do not have the timeline yet.

Hello? Okay, thank you.

The next question comes from Randy Liggett, private investor. Randy, please proceed.

Thank you. Hey, Alan, how are you? Hi, Randy. Sorry for all my emails, by the way. But obviously, everybody, shareholders are frustrated. We've gone through this for several years, no matter what the price of Bromine was. Why are we being so stubborn about hiring investment bankers and the PR firm? I just don't understand. We've been talking about it for quarter after quarter and you know, the price of bromine was seven, seven, $70,000 and the stock really did not reflect the value of the company. And I would think management, including yourself and the board of directors would want the stock to go up. My second question is, and I'll make this very short and sweet. Have y'all received any unsolicited offers? purchase the company or take it private or anything like that. Thank you, Helen.

Thank you. This question comes from Randy. There are two questions. The first question is that the company doesn't understand why we keep saying that we want to cooperate with投行 and IR companies. It has never been good. He doesn't particularly understand the company's response. This is the first point. The second point is that the company's current stock price is so low, so much cash. Why does the company consider selling the company or something?

No, the first one is to follow up with the investment industry. The main problem is that our current company's business Now it's not complete yet. We are thinking that after the whole company's business is relatively clear, we will discuss the development of our value with the investment bank, lest the investment bank is not clear about some of our business. It is also not good to carry out an analysis and calculation of the company's value.

That's it.

OK, let's go to the next question. Hi, Randy. Okay.

Yes, ma'am. So first question, like, you know, as we previously explained that we want to have like a discussion with investment bank or IR firm, but still no post because, you know, if we go to discuss with investment bank and they will want to see where is your company's development value and how we want to discuss with you to improve your value, right? But based on the current position, our projects which did not, you know, on the status or position to perform our development value yet. So until our projects, which become more clear, then we can see how we're going to do this discussion with, you know, investment bank. Yes, ma'am. Yes.

How about my second question? Have y'all received any offers on solicited?

The second question. Okay.

So for your second question, because the company never think about it to sell it,

Because even though now we have low share price, but we think we really have big potential and we are confident in each.

So y'all have not had any interest from outside parties?

No.

Okay. One last thing. Thank you again, Helen. I appreciate all your help. Please update the website and please contact continue the communications update. Sometimes I feel like we're going back to the old days. And, you know, I think it's good for shareholders to hear from y'all and, you know, just kind of let us know what's going on. Not asking much there. But thank you again.

Okay. Thank you. Okay. Thank you. I just follow the information. The website will be updated right after the quarter, including the CEO letter and CFO letter. And because sometimes for the fairness of, you know, public information to all shareholders. So we wanted to make sure it's fair and transparent to all our investors. Thank you.

Okay. We have a question coming from Bill Bender, private investor, Bill, please proceed. Thank you.

Good morning, Helen. This, The question is in general, but I've been an investor for over 10 years and shared many of the thoughts that the previous callers had. But if you look back over the last five years, you know, we discovered natural gas. Then you had a tsunami, and we replenished and really made state-of-the-art bromide factories, even though there's a few not open yet. And then we were really banking on this new chemical factory for 2023 that was to open in January. It's now August. And to find there were delays in equipment, that was for COVID. There's no more delays. You can get anything in the world today. And the frustration is building and building because we keep going quarter to quarter with the same story. And I'm sorry, but the bromide price is not the problem, Helen. The problem is we are losing investor confidence. And I think the management and Mr. Liu and the board have put their own money on the line. I know they did. They want the share price to go higher. You hear all the callers here who are just investors. I've been an investor for 40 years. It really doesn't take much in three months to make a promise of something. And we have a brand new state-of-the-art chemical factory that should be making something and making money and delivering product. That's eight months of sitting there. I saw the pictures. So the confidence from an investor when every quarter tells us it's something else, we have not done anything with natural gas. And I don't even hear a reason why we discovered we have natural gas and we can't sell it. It's one of the most largest demand items in the world. So my question is this simple. If I remain an investor, I've been in this 10 years. If I want to remain an investor for the next three months, I would like Mr. Lute to tell me why I should remain an investor. and not finally sell my shares at $2 a share. Thank you.

Hi, Wendy. Thanks for the question. Maybe I explain first. Because, you know, for our chemical factories, you know, growing prices have dropped from almost $70,000 RMB to $18,000 RMB, more than 70% decrease. And this is similar to chemical industries as well. chemical products also dropped a lot. So the company, even though it's chemical, the factory is almost completed for the civil completion. But the equipment which can be customized, for example, the fire retardants, which have much lower profit margin now, have different equipment requirements than paper-making chemicals because paper-making chemicals is more polluted and which require more strict equipment. So that's why companies stopped, based on current market conditions, stopped the delivery of the rest equipment because companies now cannot see clearly where it will go in this industry. which specific products it wants to produce and which can produce and bring more value to our company and our shareholders. That's why for this chemical factory. Secondly, if we look at our natural gas projects in Sichuan province, firstly, because the Sichuan whole province was doing the land and the resourcing planning until the government finished, you know, the planning. Then company can continue its further application with government. That's why this process has been delayed. And now company, because there is a huge opportunity in this industry, and the company wants to, you know, bring government to join us, Maybe we establish a joint venture company, then can bring the company with more opportunities in this industry, in the central area. Overall, you see companies feel a conservative view of company and which is not very aggressive, we can say.

Well, Helen, the conservative view, quite honestly, I was an investor when bromide was $2,000, and you were very profitable. But the bromide prices are going to go up and are going to go down for the next 10 years. We're building a company here that is going to be in the bromide business, and we can adapt accordingly. We can't put off and wait for bromide is never going to go to $70,000 again. So the delays of the chemical factory are very concerning to me, an investor, the, the time it takes to make any decision to partner, to do anything, the patients of just look at the volume of your shares without earnings. The shares have been going down because people are selling. That's it. It's that simple. And they're losing hope and, and, um, You know, there's not one quarter that we get on this call and hear really good news. Last year we were profitable, and the stock went to three. We need to know that there are actions being taken to keep your investors who have been with you for many, many years, keep us engaged. And I've been on the call for one hour, and it seems to me I'm hearing the same story of delays and whys And the six-year plan is becoming a 10-year plan. And in the meantime, the markets are recovering. Interest rates are high. I agree with the gentleman that having $115 million in cash earning $70,000, in America, you would earn $570,000. So I just would like some action from the board to take this call tonight from all your investors seriously, because It seems like we all have the same concerns, Helen. And I know you've been here for the 10 years with us. I know that. So we're all frustrated, but we have to take this serious to make some progress in the next three to six months. Thank you.

Okay. Okay. Thank you. Thank you for your comments.

Okay, I would like to turn the floor back to Helen for any closing remarks. Looks like we've reached the end of the top of the hour. Hi, John.

I think that's all for today. And it's been our time, you know, closing.

Thank you, ladies and gentlemen. This does complete the question and answer session. This concludes today's conference, and you may disconnect your lines at this time.