The Company's bromine, crude salt and specialty chemical product businesses are performing well and have potential for additional growth. Although we are impacted by the softening of the global and domestic economy, we believe our business will resume the growth trajectory once the economic conditions improve. We are confident that all the allegations towards our production plants and capacity are unfounded and have provided evidence to our valued shareholders and investors.
Going Private (Effective Date: November 23, 2011). Every share of the Company common stock, issued and outstanding immediately prior to the Effective Date, will be converted into the right to receive $0.22 in cash.
Certification and Notice of Termination of Registration under Section 12(g) of the Securities Exchange Act of 1934 or Suspension of Duty to File Reports Under Sections 13 and 15(d) of the Securities Exchange Act of 1934.
Due to management's assessment to deconsolidate Anhui Jucheng on August 30, 2011, and the expected completion date of the new production line of Anhui Jucheng, management has revised its fiscal 2012 guidance provided on April 11, 2011. We expect to achieve approximately $148 million of net revenue and approximately $28 million of net income in fiscal year 2012, a 15% increase on a year over year basis, excluding the effect of Anhui Jucheng.
As we approach the slow season for bromine production we expect bromine prices to stabilize around current market levels of approximately $3500 per tonne as the limited bromine supply in China supports price development once demand returns. However, due to persistent macro-economic uncertainty, we expect near term performance to be moderate. Bromine prices have decreased more than we initially expected, while the tightened credit environment impacted sales. In addition to higher depreciation and amortization expenses due to a change in the estimated useful life of our assets, rising labor and utility costs may further compress our gross profit margin.
As a result, the Company reaffirms revenue guidance of between $156 million and $158 million, but revises net income guidance to between $33.5 million and $35.0 million for 2011 from between $48 million and $49.5 million. These projections include the aforementioned non-cash expense related to cancelation of stock options, options and warrants granted and the non-cash write-off, or impairment loss on property, plant and equipment that we booked in the first to third quarter this year, and potential additional non-cash adjustments.
Despite a shift toward market hogs this quarter, our sales and margins benefited from higher pricing. As we ramp capacity at our 10th farm, we expect continued growth in units and pricing for the remainder of 2011 and added revenue contributions from our AnPuluo Foods retail program.
We are confident that real estate development in Hohhot, Inner Mongolia and its surrounding areas, a third-tier city, will remain strong and will not feel the effects of the slower real estate markets occurring in tier-one cities such as Beijing and Shanghai.
With the successful sale of our dairy farms, we still will be able to maintain the quality standards we have established and have exclusive rights to raw milk supplied by the dairy farms for an unlimited time period. This phase of our strategy is now complete and we have successfully completed an advanced European and North American style vertically integrated dairy model. This model gives us control over our products' quality, from the feeding of dairy farms cows, to accessing high quality raw milk from world class dairy farms to our state of the art facilities and production equipment. With our research and development and quality control, we believe the quality of our infant formula is one of the best in China. The Company went through nearly a decade of efforts to complete a vertically integrated business model and we are proud to be a leader in China’s dairy industry.
Gulf Resources today announced that the Company has provided verifications from three local government agencies that validate the Company's market leadership, number of facilities, and 2010 production volume. The management has provided copies of the verifications and translations in a Form 8-K filing.
Shouguang Municipal Association of Bromine Industry has certified that Shouguang City is currently the most important bromine production base in China. Its production capacity is approximately 40% of total production in China. The Bromine Industry also certifies that the Company's subsidiary, Shouguang City Haoyuan Chemical Co., Ltd, (SCHC) is the largest bromine producer in this city with a total of 9 bromine production facilities and that SCHC produced more than 30,000 tons of bromine in 2010.
Shouguang Municipal Mineral Resources Administration Center has certified that SCHC currently has 9 bromine production facilities and is the largest bromine producer in the city. Shouguang Municipal Economic and Informatization Bureau of Shandong Province has certified that SCHC has 9 bromine production facilities and is currently the largest bromine producer in Shandong Province and that SCHC's actual production volume for 2010 totalled more than 30,000 tons.
On September 2, 2011, the Board of Directors of China Energy Corp. received the resignation of Brock Silvers, a member of the Company's Board of Directors, a member of the Audit and Compensation Committees of the Board and Chairman of the Nominating and Governance Committees of the Board.
"China Energy Corp. has informed me that as a result of recent changes in market sentiment, the Company is not prepared at this time to commit the resources necessary in my opinion to either maintain a Board of Directors that would meet market standards and expectations, or to develop a professional financial reporting and control capacity. For this reason, I hereby resign as a Director of the Company with immediate effect. Sincerely, /s/ Brock Silvers"