Revenue during the year dropped 8.03 percent to $149.28 million from $162.32 million in the previous year. Gross margin for the year expanded 368 basis points over the previous year to 36.50 percent. Total expenses were 68.03 percent of annual revenues, down from 72.18 percent for the last year. This has led to an improvement of 415 basis points in operating margin to 31.97 percent.

Operating income for the year was $47.72 million, compared with $45.16 million in the previous year.

Mr. Xiaobin Liu, the president and chief executive officer of Gulf Resources stated, "We are pleased to have exceeded our net income guidance slightly for 2016 despite the continuing downturn in the Chinese economy and the financial tightening that has impacted many of our customers."

The company has spent $14.96 million cash to meet investing activities during the year as against cash outgo of $75.77 million in the last year.

The company has spent $0.29 million cash to carry out financing activities during the year as against cash outgo of $0.34 million in the last year period.

Cash and cash equivalents stood at $163.88 million as on Dec. 31, 2016, up 22.66 percent or $30.28 million from $133.61 million on Dec. 31, 2015.

Debt comes down
Gulf Resources, Inc. has recorded a decline in total debt over the last one year. It stood at $2.47 million as on Dec. 31, 2016, down 10.17 percent or $0.28 million from $2.75 million on Dec. 31, 2015. Interest coverage ratio improved to 272.83 for the year from 232.76 for the same period last year.