Gulf Resources Inc (GURE) 2022 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Gulf Resources 2022 Third Quarter Earnings Conference Call. 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 Xu. Helen, the floor is yours.

女士們先生們，早上好，歡迎來到 Gulf Resources 2022 年第三季度收益電話會議。此時，所有與會者都處於只聽模式，我們將在演講結束後開放您的提問和評論。現在我很高興將發言權交給主持人 Helen Xu。海倫，地板是你的。

Thank you, Tom. Good morning, ladies and gentlemen, and good evening to all those of you for joining us from China. And we'd like to welcome all of you to Gulf Resources Third Quarter 2022 Earnings Conference Call. I'm Helen Xu, the IR Director. Our CEO of the company, Mr. Xiaobin Lu, the COO, Mr. Naihui Miao 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 forward-looking statements about Gold Resources Incorporation and its subsidiaries business and products with the menu of Rule 175 on the Securities Act of 1933 and the Rule 3b-6 under the Securities Exchange Act of 1934 and are subject to the safe harbor created by those rules.

謝謝你，湯姆。早上好，女士們，先生們，晚上好，所有從中國加入我們的人。我們歡迎大家參加 Gulf Resources 2022 年第三季度收益電話會議。我是 IR 總監 Helen Xu。我們公司的首席執行官陸曉斌先生和首席運營官苗乃輝先生今天也將參加此次電話會議。我想提醒我們所有的聽眾，在本次電話會議中，某些管理層聲明將包含有關 Gold Resources Incorporation 及其子公司業務和產品的前瞻性聲明，這些聲明符合 1933 年證券法第 175 條的規定以及 1934 年《證券交易法》第 3b-6 條規則，並受這些規則創建的安全港的約束。

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 the other oilfields and power production chemicals, changing technology, the ability to make future booming assets and the various other factors beyond its control.

考慮到許多風險因素，包括但不限於中國的總體經濟和商業狀況，實際結果可能與今天討論的結果有所不同。與 CoVID-19 大流行爆發、未來產品開發和生產能力、對最終客戶的發貨、新產品和現有產品的市場接受度、來自溴和其他油田和電力生產化學品的現有和新競爭的額外競爭相關的風險，不斷變化的技術，使未來資產蓬勃發展的能力以及其無法控制的各種其他因素。

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. 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 the company's future performance represents the management's estimates as of today, the 15th of November 2022. For those of you unable to listen to the entire coexistence, a replay will 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 of the details. So I will review the quarter at 9 months and then turn the call back to Mr. Miao and Mr. Liu for their commentary, after which, we will have a Q&A section.

所有前瞻性陳述均由本警告聲明和公司向美國證券交易委員會提交的報告中詳述的風險因素明確限定。 Gulf Resources 沒有義務修改或更新任何前瞻性陳述以反映本次電話會議之後發生的事件或情況。因此，我們公司認為這些前瞻性陳述中反映的預期是合理的，並且不能保證這些陳述將被證明是正確的。此外，任何對公司未來業績的提及都代表管理層截至今天，即 2022 年 11 月 15 日的估計。對於那些無法收聽整個共存的人，可以在公司網站上重播。也可以通過網絡廣播訪問該電話會議，並且可以通過我們的網站訪問該鏈接。因此，請找到我們早些時候發布的新聞稿的詳細信息。所以我會在 9 個月回顧這個季度，然後把電話轉回給苗先生和劉先生，讓他們發表評論，之後我們會有一個問答環節。

So firstly, let's look at the quarter of the company for the third quarter operating results, which is an outstanding quarter for our company. Because for the three months ended September 30, 2022, revenues increased 29% to approximately $22.8 million. Income from operations increased 68% to approximately $11.9 million. Profit before taxes increased 68% to approximately $12 million. Net income increased 66% to approximately $9 million. Earnings per share increased 65% to $0.86 a -- by segment for the quarter. Roaming revenues increased 33% to approximately $19.8 million, cost increased 6%, while the average selling price increased 26%. We had four factories in operation. We have set prepared factory #8 for opening. We expect factory #8 to produce revenues in the fourth quarter 2022. Gross profits were approximately $10.5 million, an increase of 5.1% from the result of the previous year. Profit margins increased to 63% from 56%. Income from operations increased 53% to approximately $10.6 million.

所以首先，讓我們來看看公司第三季度的經營業績，這對我們公司來說是一個出色的季度。因為在截至 2022 年 9 月 30 日的三個月中，收入增長了 29%，達到約 2280 萬美元。運營收入增長 68% 至約 1,190 萬美元。稅前利潤增長 68%，達到約 1200 萬美元。淨收入增長 66%，達到約 900 萬美元。本季度按部門劃分的每股收益增長 65% 至 0.86 美元。漫遊收入增長 33% 至約 1,980 萬美元，成本增長 6%，而平均售價增長 26%。我們有四家工廠在運營。我們已經準備好#8 工廠開業。我們預計 8 號工廠將在 2022 年第四季度產生收入。毛利潤約為 1050 萬美元，比上一年增長 5.1%。利潤率從 56% 增加到 63%。運營收入增長 53% 至約 1,060 萬美元。

Crude segment, revenues from crude stocks increased 3% to $2.9 million. Volume increased 3%. Cost of net revenues declined to $1 million from $1.6 million, largely due to the relocation, IT, bromine and Crude. Income from operations increased 234 percentages to approximately $1.9 million from $561,000, largely due to the change in allocation of costs. So on August 30, 2022, the company provided guidance for the third quarter for our bromine and Crude segment. Our projections were for revenues in these 2 segments of million to $21.8 million. Actual revenues were $22.8 million. We projected profit before tax of $9 million to $10.3 million. Actual profit before tax were $10.4 million. We are very pleased to have exceeded our guidance. Technical Products, which had euro revenue and had a loss from operations of approximately $448 million. Natural Gas segment had revenue of approximately $82,000 from the rental of some of our equipment. Direct labor and factory overhead. Investors should note that we incur cost for our close factories approximately $1.9 million.

原油板塊，原油庫存收入增長 3% 至 290 萬美元。成交量增加了 3%。淨收入成本從 160 萬美元下降到 100 萬美元，這主要是由於搬遷、IT、溴和原油。運營收入從 561,000 美元增長 234 個百分點至約 190 萬美元，這主要是由於成本分配的變化。因此，在 2022 年 8 月 30 日，公司為我們的溴和原油部門提供了第三季度的指導。我們的預測是這兩個部分的收入為 100 萬至 2180 萬美元。實際收入為 2280 萬美元。我們預計稅前利潤為 900 萬至 1030 萬美元。實際稅前利潤為 1040 萬美元。我們很高興超出了我們的指導。 Technical Products，其收入為歐元，運營虧損約為 4.48 億美元。天然氣部門從我們的一些設備租賃中獲得了大約 82,000 美元的收入。直接人工和工廠間接費用。投資者應注意，我們因關閉工廠而產生的成本約為 190 萬美元。

As noted, even with this cost, we were able to report earnings per share of $0.86 versus the $0.52 in the previous year. For the 9-month period ending September 30, 2022, the company revenues increased 39% to approximately $47.5 million. Income from operations increased more than $10 to $70 million. Net income increased more than 6x to $20.7 million. Earnings per share increased to $1.22 from $2. By segment, firstly, let's look at the bromine segment. Revenues in this segment increased 41% to approximately $41.9 million. The cost of net revenues was $18.1 million and the $2.2 million approximately of this increase was due to a reallocation of cost is consol. The gross profit was approximately $23.7 million compared to $13.8 million. Income from operations more than doubled to approximately $17.2 million. Cruise sort segment.

如前所述，即使有這個成本，我們也能夠報告 0.86 美元的每股收益，而上一年為 0.52 美元。在截至 2022 年 9 月 30 日的 9 個月期間，公司收入增長了 39%，達到約 4750 萬美元。運營收入增加了 10 多美元，達到 7000 萬美元。淨收入增長超過 6 倍，達到 2070 萬美元。每股收益從 2 美元增至 1.22 美元。按細分市場，首先，讓我們來看看溴細分市場。該部門的收入增長了 41%，達到約 4190 萬美元。淨收入成本為 1810 萬美元，其中約 220 萬美元的增長是由於成本重新分配所致。毛利潤約為 2370 萬美元，而去年同期為 1380 萬美元。運營收入增加了一倍多，達到約 1720 萬美元。郵輪排序段。

The revenues in this segment increased to approximately $5.5 million from $4.4 million. The cost in crude salt dropped to $2.9 million from $3.3 million, largely due to $2.2 million in lower cost allocation. Gross profit more than doubled to $2.6 million from $1.1 million. Income from operations worth $1.5 million compared to a loss of $1 million. Other businesses chemical products lost approximately $1.4 million compared to approximately $2 million in the previous year. Metro gas lost approximately $69,000 compared to a loss of approximately $167 million in the previous year. Corporate costs were $187 million compared to $3.4 million in the previous year. In year 2021, the company incurred about $3.1 million in the cost related to stock grant. By September 30, 2022, we had no new stock grant. But as noted in the 10-Q, on October 7, 2022, the company issued 200,000 shares under its equity Sintplan at the cost of approximately $668,000.

該部門的收入從 440 萬美元增加到約 550 萬美元。原鹽的成本從 330 萬美元降至 290 萬美元，這主要是由於成本分配減少了 220 萬美元。毛利潤從 110 萬美元增長了一倍多，達到 260 萬美元。運營收入為 150 萬美元，而虧損為 100 萬美元。其他業務化學產品損失約 140 萬美元，而上一年約為 200 萬美元。與去年虧損約 1.67 億美元相比，Metro 天然氣公司虧損約 69,000 美元。公司成本為 1.87 億美元，而上一年為 340 萬美元。 2021 年，公司發生了約 310 萬美元的股票授予相關成本。到 2022 年 9 月 30 日，我們沒有新的股票授予。但如 10-Q 所述，2022 年 10 月 7 日，該公司以約 668,000 美元的成本在其股權 Sintplan 下發行了 200,000 股股票。

For the nine months’ cash flow, the company generated net cash from operations of approximately $37.1 million. Capital expenditures for the bromine segment were $33.2 million. The effect of the decline of the RMB versus the U.S. dollar impacted our cash and cash equivalents by approximately $6.7 million. Balance sheet over year 2022, the R&D declined sharply against the U.S. dollar. According to the website on exchange rates at ORG at U.K. On January 1, 2022, RUB 1 worth 6.357 on September 30, 2022, $1 worth RMB 3.1 2040, a decline of approximately 12%. The drop of the RMB against the U.S. dollar caused a resulting impact on the balance sheet items. Despite the impact on our balance sheet, we ended the quarter with cash of $92.6 million, all per share, working capital was $94.1 million or $8.99 per share, book value was $268.6 million or $25.65 per share. So now let's look at the update on our business operations. C because COLI continues to significantly impact on our business, this has caused a softening of the bromine prices and a delay in receiving the equipment needed for our new chemical factory. We have no visibility as to when the impact of the core epidemic will abate.

對於九個月的現金流量，公司從運營中產生的現金淨額約為 3710 萬美元。溴部門的資本支出為 3320 萬美元。人民幣兌美元貶值對我們的現金和現金等價物產生了約 670 萬美元的影響。 2022 年的資產負債表，R&D 兌美元大幅下降。根據英國ORG匯率網站，2022年1月1日，2022年9月30日1盧布兌6.357盧布，2040年1美元兌3.1元人民幣，跌幅約12%。人民幣兌美元貶值對資產負債表項目造成影響。儘管對我們的資產負債表產生了影響，但我們在本季度末的現金為 9260 萬美元，全部為每股，營運資金為 9410 萬美元或每股 8.99 美元，賬面價值為 2.686 億美元或每股 25.65 美元。那麼現在讓我們看看我們業務運營的最新情況。 C 因為 COLI 繼續對我們的業務產生重大影響，這導致溴價走軟並延遲接收我們新化工廠所需的設備。我們不知道核心流行病的影響何時會減弱。

However, the company is aware of that, call it is more dangerous in the winter month, so issues may continue. During the third quarter, we prepared Factor VIII for production, revenues expected were generated in the fourth quarter 2022. We have not heard anything from the local government about factories #2 and 10 yet. We remain opportunistic that we may rise permission to open this factory, although some investment may need in the new walls crude soon and codon will be required. The Chemical segment, a colleague, apoptotic and resulting supply chain disruption has impacted the opening of our chemical factory. While some of the equipment has been delivered, we are still making a few competences. We expect this to be delivered in this quarter or at the latest in the first quarter of year 2023, once all of the equipment is delivered, it will take 3 to 4 months to get them installed. After installation, the testing process should take 2 to 3 months, after which we will apply for the environmental approval and other approvals from government after we have all the necessary approvals, it will take 4 months to come the trial production for commercial production may start by the beginning of year 2024.

然而，該公司意識到，冬季月份更危險，因此問題可能會繼續存在。在第三季度，我們為生產準備了因子 VIII，預計收入將在 2022 年第四季度產生。我們還沒有從當地政府那裡聽到任何關於工廠#2 和 10 的消息。我們仍然持機會主義態度，我們可能會獲得開設這家工廠的許可，儘管很快可能需要對新牆進行一些投資，並且需要密碼子。化學部門，一位同事，細胞凋亡和由此產生的供應鏈中斷影響了我們化工廠的開工。雖然一些設備已經交付，但我們仍在開發一些能力。我們預計這將在本季度或最遲在 2023 年第一季度交付，一旦所有設備交付，需要 3 到 4 個月才能安裝。安裝後，測試過程需要 2 到 3 個月，之後我們將向政府申請環境批准和其他批准，在我們獲得所有必要的批准後，需要 4 個月的時間才能開始商業生產的試生產到 2024 年初。

Our company regrets for this delay, but we could not have foreseen the continuing issues related to COVID-19. Nutra Gas segment, the company is continuing to wait for the government of Sichuan Province to complete its plan. The company believes that Sichuan still represents a substantial opportunity for both natural gas and bromine. The company remains optimistic that it will eventually receive approval to drill for both products. However, the company is open to considering partnerships with state-owned enterprise. Fourth quarter 2022 projections for the bromine and crude salt segment only. The COVID-19 pandemic and the early Chinese New Year are likely to impact on the fourth quarter 2022. The Chinese economy remains soft. Worming prices dropped in the beginning of September and started to rise in the second week of October. On one -- we were at RMB 49,800, which higher than debt of September 30, 2021, but lower the highs achieved in the fourth quarter of the year 2021. The company expects the government to announce another winter closing the year 2022. Hans New Year was on February 1, in year 2023 will be on January 22 behind to the earliest date in this country. This means there will be 10 less days of production in year 2022. By contrast, 2023 should have approximately 10 additional days of production because of the later Chinese New Year in year 2.

我們公司對此延遲表示遺憾，但我們無法預見與 COVID-19 相關的持續問題。 Nutra Gas 分部，公司仍在等待四川省政府完成其計劃。該公司認為，四川仍然是天然氣和溴的重要機遇。該公司仍然樂觀地認為，它最終將獲得對這兩種產品進行鑽探的批准。不過，該公司願意考慮與國有企業建立合作夥伴關係。 2022 年第四季度僅針對溴和原鹽部分的預測。 COVID-19 大流行和農曆新年初期可能會影響 2022 年第四季度。中國經濟依然疲軟。驅蟲價格在 9 月初下降，並在 10 月的第二週開始上漲。一方面——我們的股價為 49,800 元人民幣，高於 2021 年 9 月 30 日的債務，但低於 2021 年第四季度創下的高點。該公司預計政府將宣布 2022 年的另一個冬季關閉。Hans New年是2月1日，2023年將在1月22日落後於該國最早的日期。這意味著 2022 年的生產天數將減少 10 天。相比之下，由於第二年的農曆新年較晚，2023 年的生產天數應該會增加大約 10 天。

Given the potential of days of production and a lower price of bromine, the company estimates revenues for bromine at crude salt will be in the range of 15.4% and $6.8 million profit before tax will be in the range of $3.8 million to $4.2 million. In our projections of August 30, 2022, the company indicated that bromine and crude salt would have added revenues between $62 million to $63.7 million, with the result for the 9 months and the projections for the fourth quarter -- we now project this segment will have revenue of $62.7 million to $64.1 million. We had also projected the segment with high profit before taxes of $20 million to $21.5 million based on the 9 months and the projections for the fourth quarter, 2022, the company now projects that these segments will have profits before taxes of $22.4 million to $22.8 million. So despite slowdown cost by Comet expects to exceed our original guidance for bromine and crude salt both sales and earnings. So now I will turn the call back to Mr. Miao and Mr. Liu for your commentary. (foreign language)

考慮到生產天數和溴價較低的潛力，該公司估計原鹽溴的收入將在 15.4% 範圍內，680 萬美元的稅前利潤將在 380 萬至 420 萬美元之間。在我們對 2022 年 8 月 30 日的預測中，該公司表示溴和原鹽將增加 6200 萬美元至 6370 萬美元的收入，這 9 個月的結果和第四季度的預測——我們現在預計該部門將收入為 6270 萬美元至 6410 萬美元。根據 9 個月和 2022 年第四季度的預測，我們還預測該部門的稅前利潤為 2000 萬至 2150 萬美元，該公司現在預計這些部門的稅前利潤為 2240 萬至 2280 萬美元.因此，儘管 Comet 的成本放緩，但預計其銷售額和收益都將超過我們最初對溴和原鹽的指導。那麼現在我將電話轉回給苗先生和劉先生，請您發表評論。 （外語）

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（外語）

[Interpreted] So I will do the translation for Mr. Xiao is now stating that hi, everyone, I am the company CEO Mr. Xiao. First of all, welcome all of you to attend the year 2022 third quarter and 9 months’ earnings conference call ended September 30, 2022. I will join Mr. Miao later on for the Q&A section following up regarding the company's operating question. (foreign language)

[翻譯]所以我來為肖總翻譯 現在說大家好，我是公司CEO肖總。首先，歡迎大家參加2022年9月30日結束的2022年第三季度9個月的財報電話會議。稍後我將與苗先生一起參加有關公司運營問題的問答環節。 （外語）

(foreign language)

（外語）

[Interpreted] Okay. So hi, everyone. I'm company's CEO, Mr. Xiaobin Liu. First of all, welcome all of you to attend Gulf Resources Third Quarter Year 2022 earnings conference call. First of all, we are very pleased to have reported such a strong third quarter and 9-month results with $122 of earnings per share with a lower RMB making imports more expensive and the closing of some domestic facilities. We believe volume prices will continue to be strong. While we regret Din opening our chemical factories, we are very confident in its long-term potential. We also believe that we will eventually receive approval to drill for natural gas and bromine instant province.

[解釋] 好的。大家好。我是公司CEO，劉曉斌先生。首先，歡迎大家參加海灣資源2022年第三季度財報電話會議。首先，我們非常高興地報告瞭如此強勁的第三季度和 9 個月的業績，每股收益為 122 美元，人民幣貶值導致進口成本更高，一些國內設施關閉。我們相信量價將繼續走強。雖然我們對 Din 開設我們的化工廠感到遺憾，但我們對其長期潛力充滿信心。我們還相信，我們最終會獲准在即時省份鑽探天然氣和溴。

(foreign language)

（外語）

[Interpreted] We are very aware that our shareholders are unhappy with our share price. We want to assure you that complement is even more unhappy because last year, company management repaid more than 11 years of a big portion of your cash compensation, and we do not believe that you can find another case where a company executive officers retained for many years of cash salaries for shares. Simply put, we are stating our carriers and the welfare of our families on the price of our shares. If the stock remains at its current depressed levels, no one will suffer more than we will. We know that our shareholders like the company to buy back share drop. We wish we could, but unfortunately, we cannot get approval to take money out of China to buy back stock or to pay dividends.

[解讀]我們非常清楚我們的股東對我們的股價不滿意。我們想向你保證補更不開心，因為去年公司管理層償還了你11年多的現金補償的很大一部分，我們不相信你能找到另一個公司高管留任多年的案例年的股票現金工資。簡而言之，我們是在用我們的股票價格來說明我們的承運人和我們家庭的福利。如果股票保持在目前的低迷水平，沒有人會比我們更痛苦。我們知道我們的股東喜歡公司回購下跌的股票。我們希望我們可以，但不幸的是，我們無法獲得批准將資金帶出中國以回購股票或支付股息。

(foreign language)

（外語）

[Interpreted] However, there are 2 things we think we can do to help the short-term short, intermediate and long-term prices of the shares. In the short term, the company may consider to pay executive officers in RMB and buy back some of their shares if an executive officer needs to sell shares to pay for living expenses, then the executive could go to the company and offer his shares in a private transaction with the company, the company could pay the executives in RMB. We will keep you updated on this progress of this idea. Over the intermediate and the long term, we are committed to gaining increased financial flexibility. We know that many of the pharmaceutical intermediary products will produce in our chemical factory, which are in demand throughout the world, especially in the emerging countries in Asia. Once we opened our chemical factory, we will consider to develop a plan to generate exports in some intermediate products and its byproducts that could enable us to have increased financial flexibility for buying back stock, all paragon. So now we are open for Q&A section. Hi, operator. Tom?

[解讀]但是，我們認為可以做兩件事來幫助股票的短期、中期和長期價格。短期內，公司可以考慮用人民幣支付給高管，並回購部分高管的股份，如果高管需要賣股支付生活費，那麼高管可以去公司，以股票的形式提供股票。與公司私下交易，公司可以人民幣支付給高管。我們將讓您了解這一想法的最新進展。從中期和長期來看，我們致力於提高財務靈活性。我們知道，許多醫藥中間產品將在我們的化工廠生產，這些產品在世界範圍內都有需求，尤其是在亞洲新興國家。一旦我們開設了化工廠，我們將考慮制定一項計劃，以出口一些中間產品及其副產品，這可以使我們在回購庫存方面具有更大的財務靈活性，所有這些都是典範。所以現在我們開放問答部分。你好，運營商。湯姆？

Yes. Thank you so much. Ladies and gentlemen, the floor is now open for questions. (Operator Instructions) We do ask if listening on speaker phone this morning that you please pick up your handset to ensure optimal sound quality. (Operator Instructions) Please hold a moment while we poll for questions. And we have a question this morning coming from Glenn Krevlin. Glenn, you line is live. Please go ahead.

是的。太感謝了。女士們，先生們，現在可以提問了。 （操作員說明）我們確實要求您今天早上是否在使用免提電話收聽電話，請拿起聽筒以確保最佳音質。 （操作員說明）請稍等片刻，我們將對問題進行投票。今天早上我們有一個來自 Glenn Krevlin 的問題。格倫，你的線路已上線。請繼續。

Yes. And congratulations on a very strong quarter. I have 2 questions. The first is how many more dollars of capital spending is needed to complete the bromine facilities to bring that are not currently online and how much more capital is needed for the chemical business to get that up and running? That's my first question. I'll let you answer, and then I'll ask my second question.

是的。祝賀一個非常強勁的季度。我有兩個問題。首先是需要多少美元的資本支出才能完成目前尚未上線的溴設施，以及化學企業需要多少資金才能啟動和運行？這是我的第一個問題。我會讓你回答，然後我會問我的第二個問題。

Okay. Glen, because one question because we have #2 and #10 did not have the permission from government yet. So I do not quite understand when you talk about the capital expenditure on roaming segment, do you need to increase these two factors or just for factor #8.

好的。 Glen，因為有一個問題，因為我們有#2 和#10 還沒有得到政府的許可。所以我不太明白，當你談到漫遊部分的資本支出時，你需要增加這兩個因素還是只增加因素#8。

Let's-- at the moment, let's do #8. And then if you have a projection for the other 2, that would be helpful.

讓我們——現在，讓我們做#8。然後，如果您對其他 2 個有預測，那將很有幫助。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Okay. Glen. So firstly, for your question on the bromine segment, you would like me to explain first. And firstly, let's look at the bromine factory because as I mentioned before, the factory #8, which got approval from government and the company already started preparation and the CapEx configures on these factories until now, which have until like third -- fourth quarter, which has spent approximately $3 million. And we will be a few more dollars to be spent on this factor, and it could maybe start production in fourth quarter and contribute to revenue in this quarter as well. And regarding factor #2 and #10, because we did not have a government approval yet. So we do not know clearly how the government will re-permit. We are not sure will they ask the only update on our world chemicals, our broad factors or do you have any other requirements. So the CapEx expenditure on these 2 factories, we cannot provide any details yet. -- this is for the questions from me first. So chemicals, Mettle will continue. Do you mind just hold on?

[解釋] 好的。格倫。所以首先，對於你關於溴部分的問題，你希望我先解釋一下。首先，讓我們看看溴工廠，因為正如我之前提到的，#8 工廠獲得了政府的批准，公司已經開始準備，這些工廠的資本支出配置到現在為止，直到第三、第四季度，已花費約 300 萬美元。我們將在這個因素上多花幾美元，它可能會在第四季度開始生產，並為本季度的收入做出貢獻。關於因素 #2 和 #10，因為我們還沒有獲得政府批准。所以我們不清楚政府將如何重新許可。我們不確定他們是否會詢問我們世界化學品、我們的廣泛因素的唯一更新，或者您是否有任何其他要求。所以這兩家工廠的資本支出支出，我們還不能提供任何細節。 ——這是針對我首先提出的問題。所以化工，氣概會一直延續下去。你介意堅持一下嗎？

(foreign language)

（外語）

[Interpreted] Secondly, regarding the chemical factory, which due to the comment and the more strict environmental protection required by the government. So the process for this chemical factor may be delayed, but the CapEx expenditure are still the same as our budget. We are still under our budget. And this number, we have been disclosed in our 10-Q already.

[解讀]其次，關於化工廠，由於評論和政府要求的更嚴格的環保要求。所以這個化學因素的過程可能會延遲，但資本支出仍然與我們的預算相同。我們仍然在我們的預算之內。而這個數字，我們已經在我們的 10-Q 中披露了。

Right. But my question is how much more capital spending is needed in the chemical facility that has not been spent to date? How much more remains just a dollar number. That's all I'm looking for.

正確的。但我的問題是，迄今為止尚未花費的化工廠還需要多少資本支出？還有多少只是一個美元數字。這就是我要找的。

Hi Glenn, I can check out for you in the 10-Q, but do you mind I e-mail back? Or you want to take it?

嗨格倫，我可以在 10-Q 中為您結賬，但您介意我回郵件嗎？或者你想接受它？

Sure. You can e-mail me back. But I just want to know -- how much is remaining to be spent on the chemicals before it's open. My last question is in order to generate foreign currency; do you just need to make sales of products overseas? Or do you need to buy an overseas asset.

當然。你可以給我回郵件。但我只想知道——在它打開之前，還有多少錢要花在化學品上。我的最後一個問題是為了產生外匯；您只需要在海外銷售產品嗎？或者您是否需要購買海外資產。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Okay. Hi Glenn, let me state that we hope after our chemical factory started production, we can sell some of our products export them to overseas. And in the meantime, and we will have some or clients, and they pay us in dollar and then the company will have more flexible in its financials.

[解釋] 好的。嗨格倫，讓我說一下，我們希望在我們的化工廠開始生產後，我們可以將我們的一些產品出口到海外。與此同時，我們會有一些或客戶，他們以美元支付給我們，然後公司的財務將更加靈活。

Okay. So you do -- so you will export and you don't need to buy an overseas business in order to generate foreign currency. Do I understand that correctly?

好的。所以你這樣做 - 所以你會出口，你不需要購買海外企業來產生外匯。我理解正確嗎？

Do you mean overseas assets? Or do you mean like if we want to do export, we need to buy a license or overseas.

你是指海外資產嗎？或者你的意思是如果我們想做出口，我們需要購買許可證或海外。

No. I mean do you need to buy an overseas? Do you need to buy an overseas asset a distributor? -- selling organization? Or can you just export?

不，我的意思是你需要在海外購買嗎？是否需要收購海外資產經銷商？ ——銷售組織？還是只能導出？

No. We cannot know export. We think we need a license for that. But we are not going to buy the at this moment, we did not talk about buying it overseas.

不，我們不知道出口。我們認為我們需要為此獲得許可。但是我們暫時不打算買，我們沒有說在海外買。

Okay. I'll let someone else ask questions. Thank you very much.

好的。我讓別人問問題。非常感謝。

Thank you. (Operator Instruction] Please hold a moment again while we poll for questions. And there are no further questions in queue at this time.

謝謝你。 （操作員說明）請稍等一下，我們正在輪詢問題。此時隊列中沒有其他問題。

Okay. Do you mind to ask again if there's still no questions, I think we can close the call for today?

好的。如果仍然沒有問題，您介意再問一次嗎？我想我們可以結束今天的通話了嗎？

Absolutely. (Operator Instruction] And there are no questions in queue at this time.

絕對地。 （操作員說明）此時隊列中沒有問題。

(foreign language) Operator, Tom, I think we will close the call for today. If there is no more question. And thank you all for attending this conference call. Thank you very much.

（外語）接線員，湯姆，我想我們今天結束電話會議。如果沒有更多的問題。感謝大家參加本次電話會議。非常感謝。

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.

謝謝你。謝謝你們，女士們，先生們。這確實結束了今天的電話會議。此時您可以斷開電話線，度過美好的一天。感謝您的參與。