After falling more than 20% in the last month, shares of Gulf Resources Inc. (NASDAQ: GURE) are surging more than 13% in this morning’s trade. The manufacturer and trader of bromine, crude salt and chemical products, last month announced that its subsidiary, Shouguang City Haoyuan Chemical Ltd. Co., entered into a compensation agreement with the local government of Yangkou Town in China for costs related to the relocation of its Factory No. 4.
The government earlier this year requested a recall of the leased land, where the original Factory No. 4 was located. The government recalled the leased land for civil redevelopment and also agreed to lease another parcel of land to the company close to the existing location.
Gulf Resources released its second-quarter financial results back in August. The company reported second-quarter revenue of $51.3 million, representing an increase of 10% over the same period in the previous year. The company’s gross profit for the second quarter of 2011 was $26.3 million, representing an increase of 13% over the same period in the previous year.
Gulf Resources reported second-quarter income from operations of $13 million, down 41% on a year-over-year basis. The company’s net income for the second quarter of 2011 was $10 million, or $0.29 per share, compared with $16.4 million, or $0.47 per share reported for the same period in the previous year.
Since the release of second-quarter financial results last month, Gulf Resources shares fell 24.33%, compared with a 0.90% decline for the NASDAQ. Year-to-date, the stock is down 29.05%, compared with a decline of 10.08% for the NASDAQ.