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General Steel Reports Results for the Third Quarter and First Nine Months of 2008

November 14, 2008

Company Achieves Year-Over-Year Top-Line Growth of 19.1% and 116.2% for the

Third Quarter and First Nine Months of 2008, Respectively

BEIJING, Nov. 14 /Xinhua-PRNewswire-FirstCall/ — General Steel Holdings, Inc. (“General Steel” or “the Company”) , one of China’s leading non-state-owned producers of steel products and aggregators of domestic steel companies, today announced its financial results for the third quarter and nine months ended September 30, 2008.

   Recent Operational Highlights:    -- October 2008 - Announced the completion of two blast furnaces at the      Longmen Joint Venture subsidiary, which are expected to require less      energy, manpower and coke, potentially reducing production costs.   -- September 2008 - Signed Letter of Intent for a joint venture with      Yantai Steel Pipe Co., Ltd. Including Yantai's existing production and      future operations, the joint venture  anticipates annual capacity of      500,000 to 600,000 tons, producing primarily seamless steel pipe      related products which are expected to generate higher margins.   

“We are pleased to have achieved record total revenues of $1.09 billion through the first nine months of 2008, despite a third quarter that proved to be very challenging for many industries in China,” said Henry Yu, General Steel’s chairman and chief executive officer. “Across the country, slowdowns in real estate and construction have decreased selling prices for steel in China. When selling prices are low, steel producers significantly cut or halt production until demand picks up and prices return to healthier levels. Despite this short-term set-back, the fundamentals of our business remain strong, and I’m confident in our ability to deliver long-term shareholder value.”

Mr. Yu continued, “In our 20 year operating history, we have been through multiple readjustment periods for steel products and, as in the past, we will take the necessary steps to weather this storm. For example, we are currently working to shift some of our production capacity at our Longmen Joint Venture subsidiary to more efficient blast furnaces, and we are pushing suppliers to further lower input costs. We also adjusted production and inventory levels and are working to expand our product mix to increase margins. Furthermore, we are confident in the $586 billion stimulus plan just announced by the Chinese government. While the specific impact is not yet clear, the emphasis on rural infrastructure construction and expansion is bound to be positive for our company. Our ability to overcome adversity, however, ultimately stems from our experienced management team, which has over 50 years of cumulative experience in the steel industry. We will leverage this experience to protect our company, take advantage of industry opportunities that present themselves in new market conditions, and continue to focus on our long-time goal of becoming the largest and most profitable non-government-owned steel company in China.”

Selected Financial Results for the Third Quarter and Nine Months Ended September 30, 2008

Total revenues in the third quarter of 2008 increased 19.1% to $411.5 million from $345.4 million in the third quarter of 2007. Total revenues for the nine months ended September 30, 2008 increased 116.2% to $1.09 billion from $504.2 million in the nine months ended September 30, 2007.

The significant year-over-year increase in total revenues for the nine month period was due to higher average selling prices compared to the year-ago period and the timing of the acquisitions of General Steel’s subsidiaries including Baotou, Longmen Joint Venture and Maoming, which started operations on May 25, 2007, June 1, 2007 and June 25, 2008, respectively.

Cost of Sales

Total cost of sales for the third quarter of 2008 increased 30.8% to $417.9 million from $319.5 million in the third quarter of 2007. Total cost of sales for the nine months ended September 30, 2008 increased 126.4% to $1.06 billion from $468.5 million in the nine months ended September 30, 2007.

Cost of sales principally consists of the cost of raw materials, labor, utilities, manufacturing costs, manufacturing-related depreciation and other fixed costs. The increase in cost of sales was mostly attributable to the increase in the Company’s primary raw material inputs, namely iron ore, coke, billets and hot-rolled steel coils, and the timing of the acquisitions of General Steel’s subsidiaries including Baotou, Longmen Joint Venture and Maoming, which started operations on May 25, 2007, June 1, 2007 and June 25, 2008, respectively.

Gross Profit

Gross loss for the third quarter of 2008 was $6.3 million, decreasing from a gross profit of $25.9 million in the third quarter of 2007. Gross profit for the nine months ended September 30, 2008, was $29.5 million, decreasing from $35.7 million in the nine months ended September 30, 2007.

The year-over-year decrease in gross profit for the third quarter 2008 and nine month period was largely due to the economic slowdown in China’s real estate and construction markets and in the overall domestic economy.

Gross margin for the third quarter of 2008 was -1.5%, compared to 7.5% in the third quarter of 2007. Gross margin for the nine months ended September 30, 2008 were 2.7%, compared to 7.1% in the year-ago period.

Gross margins in the third quarter and nine months ended September 30, 2008 were primarily affected by price erosion during the time between the signing of supply contracts and the fulfillment of the customer orders.

Operating Expenses

Selling, general and administrative expenses for the third quarter of 2008 increased 81.4% to $12.3 million from $6.8 million in the third quarter of 2007. Selling, general and administrative expenses for the nine months ended September 30, 2008 increased 176.2% to $28.4 million from $10.3 million in the year-ago period. Selling, general and administrative expenses were 3.0% and 2.6% of total revenues in the third quarter and nine months ended September 30, 2008, respectively.

A large portion of the increases in selling, general and administrative expenses for the third quarter of 2008 and nine months ended September 30, 2008 were attributable to the timing of General Steel’s acquisitions, most notably the Maoming subsidiary, which did not exist in the third quarter of 2007.

Finance and interest expenses for the third quarter of 2008 increased 60.7% to $6.9 million from $4.3 million in the third quarter of 2007. Finance and interest expenses for the nine months ended September 30, 2008 increased 186.9% to $19.1 million from $6.7 million in the nine months ended September 30, 2007. The increase is primarily due to the make whole interest on the conversion of the convertible debt.

Net Income

Net income for the third quarter of 2008 increased 155.8% to $20.5 million from $8.0 million in the third quarter of 2007. Net loss for the nine months ended September 30, 2008 was $1.6 million, compared to net income of $10.4 million in the nine months ended September 30, 2007.

The increase in net income during the third quarter of 2008 was largely attributable to a gain of $29.9 million for the three months ended September 30, 2008 from a derivative instrument and $7.2 million from a debt waiver. There was neither a derivative instrument nor a debt waiver in the third quarter of 2007.

The derivative instrument gain is a non-operating, non-cash gain related to the convertible bond and related warrants issued in December 2007. Due to accounting rules, the derivative instrument value and associated gain or loss is linked to the stock price of General Steel Holdings, Inc. The gain or loss of this instrument has no impact on cash (no cash was paid out or received).

The decrease in net income for the nine months ended September 30, 2008 was mainly due to an economic slowdown and subsequent drop in average selling price in the third quarter of 2008.

Basic and diluted earnings per share were $0.57 in the third quarter of 2008. Basic and diluted losses per share were $0.05 in the nine months ended September 30, 2008.

The Company noted that it believes that operating net income, which is calculated as GAAP net earnings before the impact of a derivative gain or loss, is a better measurement of its operating performance. Operating net loss (non- GAAP) for the third quarter of 2008 was $6.2 million or $0.17 diluted loss per share, based on 35.7 million diluted shares. Non-GAAP net loss for the nine month ended September 30, 2008 was $1.4 million or $0.04 diluted loss per share, based on 35.7 million diluted shares.

Balance Sheet

As of September 30, 2008 General Steel had cash and restricted cash of $138.3 million, compared to $52.1 million as of December 31, 2007. Accounts receivable and accounts receivable — related parties were $22.4 million as of September 30, 2008, compared to $11.8 million as of December 31, 2007.

Explanation of Non-Cash Derivative Expenses

Pursuant to SFAS 133 and EITF 00-19, the Company determined that both the warrants and the conversion option embedded in the Notes issued on December 13, 2007 met the definition of a derivative instrument and must be carried as a liability and marked to market each reporting period. As such, depending upon the price of the Company’s common stock at the end of the quarter or year there could be an associated gain or loss which are non-cash in nature but will be recurring until such time as the Notes are either redeemed or converted and the warrants are exercised.

As of September 30, 2008, the balance of derivative liabilities was $18.0 million, which consisted of $5.6 million for the warrants and $12.4 million for the carrying value of the Convertible Notes.

Conference Call

General Steel management will hold an earnings conference call at 8:00 a.m. U.S. Eastern Time on November 14, 2008 (9:00 p.m. Beijing/Hong Kong Time on November 14, 2008). Management will discuss results and highlights from the quarter and answer questions. The dial-in number and passcode for the conference call are as follows:

    U.S. Toll Free: +1-800-860-2442    Passcode: General Steel Holdings   

The conference call will be broadcast live over the Internet and can be accessed by clicking the following link: http://www.videonewswire.com/event.asp?id=53047

Additionally, an archived Web cast of this call will be available on the Investor Relations section of the General Steel’s website at http://www.gshi-steel.com/ .

About General Steel Holdings, Inc.

General Steel Holdings, Inc., , headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 4.8 million tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit to http://www.gshi-steel.com/ .

Information Regarding Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs about future events and financial, political and social trends and assumptions it has made based on information currently available to it. The Company cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Such forward-looking statements may be affected by inaccurate assumptions or by known or unknown risks or uncertainties. Actual results may vary materially from those expressed or implied by the statements herein. For factors that could cause actual results to vary, perhaps materially, from these forward-looking statements, please refer to the Company’s Form 10-K, filed with the Securities and Exchange Commission, and other subsequent filings. Forward-looking statements contained herein speak only as of the date of this release. The Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.

                  GENERAL STEEL HOLDINGS INC. AND SUBSIDIARIES                            CONSOLIDATED BALANCE SHEETS                 AS OF SEPTEMBER 30, 2008 AND DECEMBER 31, 2007                                       ASSETS                                             September 30,       December 31,                                                     2008               2007                                               (Unaudited)   CURRENT ASSETS:            Cash                              $17,986,618        $43,713,346            Restricted cash                   120,322,295          8,391,873            Accounts receivable, net of             allowance for doubtful             accounts of $295,896             and $148,224 as of             September 30, 2008 and             December 31, 2007,             respectively                      22,341,668         11,225,678            Accounts receivable -             related parties                      107,642            565,631            Notes receivable                   27,872,010          4,216,678            Notes receivable -             restricted                                --         12,514,659            Short term loan receivable             - related parties                         --          1,233,900            Other receivables                   4,513,675          1,280,853            Other receivables - related             parties                              806,758          1,913,448            Dividend receivable                   628,762                 --            Inventories                       123,139,732         77,928,925            Advances on inventory             purchases                         43,928,543         58,170,474            Advances on inventory             purchases - related             parties                            8,119,284          9,944,012            Short-term investment            Prepaid expenses - current          2,693,685          1,109,222            Prepaid expenses related             party - current            Deferred tax assets                 2,151,690            399,751                                              374,612,362        232,608,450    PLANT AND EQUIPMENT, net                   448,769,013        218,263,367    OTHER ASSETS:            Advances on equipment             purchases                             59,717            742,061            Investment in             unconsolidated             subsidiaries                       9,903,047            822,600            Prepaid expenses - non             currentepaid expenses -             non current                          529,959            506,880            Prepaid expenses related             party - non currentepaid             expenses related party -             non current                          256,025            142,467            Intangible assets, net of             accumulated amortization          24,671,865         21,756,709            Note issuance cost                  4,234,103          3,564,546                     Total other assets        39,654,716         27,535,263                        Total assets          $863,036,091       $478,407,080    LIABILITIES AND SHAREHOLDERS' EQUITY    CURRENT LIABILITIES:            Accounts payable                 $170,701,885       $102,241,708            Accounts payable - related             parties                           16,387,937         14,302,738            Short term loans - bank            82,705,042         93,019,608            Short term loans - others          62,093,562         19,156,070            Short term loans - related             parties                            3,394,160          7,317,027            Short term notes payable          185,654,700         15,163,260            Other payables                      4,269,694          3,343,684            Other payable - related             parties                            4,883,327          2,126,383            Accrued liabilities                 8,783,955          5,248,863            Customer deposits                 123,483,928         37,872,698            Customer deposits - related             parties                            1,851,308          9,211,736            Deposits due to sales             representatives                    2,516,360          3,068,298            Taxes payable                      23,468,246         27,576,240            Investment payable                  7,022,400          6,580,800            Distribution payable to             minority shareholder               5,211,577          2,820,803                     Total current                      liabilities             702,428,081        349,049,916             NOTES PAYABLE, net of debt             discount of $27,035,121             and $34,559,584 as of            September 30, 2007 and             December 31, 2007,             respectively                       6,214,879          5,440,416    DERIVATIVE LIABILITIES                      17,954,559         28,483,308                      Total liabilities        726,597,519        382,973,640    MINORITY INTEREST                           61,328,058         42,044,266    SHAREHOLDERS' EQUITY:            Preferred stock, $0.001 par             value, 50,000,000 shares             authorized, 3,092,899             shares issued and outstanding          3,093              3,093            Common Stock, $0.001 par             value, 200,000,000 shares             authorized, 35,916,283 and             34,634,765 shares issued and             outstanding as of September 30,             2008 and December 31, 2007,             respectively                          35,916             34,635            Paid-in-capital                    36,303,329         23,429,153            Retained earnings                  20,419,735         22,686,590            Statutory reserves                  4,280,688          3,632,325            Contribution receivable              (959,700)          (959,700)            Accumulated other             comprehensive income              15,027,453          4,563,078                     Total shareholders'                      equity                   75,110,514         53,389,174                      Total liabilities                      and shareholder's                      equity                 $863,036,091       $478,407,080                    GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES       CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME                                     (LOSS)        FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007                                  (UNAUDITED)                          Three months ended           Nine months ended                           September 30,                September 30,                             2008         2007           2008          2007    REVENUES -    RELATED PARTIES    REVENUES          $325,911,063  $345,384,337   $781,918,147  $504,247,052    REVENUES -    RELATED PARTIES    85,609,768            --    308,197,619            --        TOTAL        REVENUES      411,520,831   345,384,337  1,090,115,766   504,247,052    COST OF SALES      335,945,348   319,494,586    762,394,709   468,510,928    COST OF SALES -    RELATED PARTIES    81,923,077            --    298,217,731            --        TOTAL COST OF        SALES         417,868,425   319,494,586  1,060,612,440   468,510,928    GROSS PROFIT        (6,347,594)   25,889,751     29,503,326    35,736,124    SELLING, GENERAL    AND    ADMINISTRATIVE    EXPENSES           12,327,687     6,795,307     28,363,729    10,269,918    INCOME FROM    OPERATIONS        (18,675,281)   19,094,444      1,139,597    25,466,206    OTHER EXPENSE    (INCOME), NET       Interest income   (646,330)     (762,143)    (2,103,747)     (851,608)       Interest/finance        expense         6,872,475     4,276,092     19,148,850     6,673,942       Change in        fair value        of        derivative        liabilities   (29,884,899)           --     (4,769,030)           --       Gain from        debt        extinguishment (7,168,500)           --     (7,168,500)           --       Other non-        operating        (income)        expense, net     (899,401)     (597,181)    (1,918,543)   (1,443,748)            Total             other             (income)             expense,             net      (31,726,655)    2,916,768      3,189,030     4,378,586    INCOME (LOSS)    BEFORE PROVISION    FOR INCOME TAXES       AND MINORITY        INTEREST       13,051,374    16,177,676     (2,049,433)   21,087,620    PROVISION FOR    INCOME TAXES       Current           (812,532)    2,025,389      1,146,714     3,359,271       Deferred        (1,271,269)           --     (1,693,902)           --            Total             provision             for             income             taxes     (2,083,801)    2,025,389       (547,188)    3,359,271    NET INCOME (LOSS)    BEFORE MINORITY    INTEREST           15,135,175    14,152,287     (1,502,245)   17,728,349    LESS MINORITY    INTEREST           (5,329,099)    6,151,792        116,247     7,359,688    NET INCOME (LOSS)   20,464,274     8,000,495     (1,618,492)   10,368,661    OTHER    COMPREHENSIVE    INCOME:       Foreign        currency        translation        adjustments      (198,267)      374,568     10,464,375     1,196,827    COMPREHENSIVE    INCOME            $20,266,007    $8,375,063     $8,845,883   $11,565,488    WEIGHTED AVERAGE    NUMBER OF SHARES       Basic           35,687,891    32,343,332     35,157,579    31,704,912       Diluted         35,687,891    32,343,332     35,157,579    31,704,912    EARNING PER SHARE       Basic               $0.573        $0.247        $(0.046)       $0.327       Diluted             $0.573        $0.247        $(0.046)       $0.327                    GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES                       CONSOLIDATED STATEMENTS OF CASH FLOWS             FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007                                  (UNAUDITED)                                                        2008            2007   CASH FLOWS FROM OPERATING ACTIVITIES:   Net (loss) income                            $(1,618,492)     $10,368,661   Adjustments to reconcile net income    (loss) to cash provided by (used in)    operating activities:   Minority interest                                116,247        7,359,688   Depreciation                                  14,746,357        5,491,604   Amortization                                     695,672          429,662   Bad debt allowance                                19,038               --   (Gain) Loss from debt extinguishment          (7,168,500)              --   (Gain) Loss on disposal of equipment              12,839           (4,013)   Stock issued for services and    compensation                                  2,197,413           33,332   Interest expense accrued on mandatory    redeemable stock                              2,629,701          114,726   Interest expense accrued on short    term loan to related parties                         --          424,580   Amortization of deferred note    issuance cost                                    33,634               --   Amortization of discount on    convertible notes                                    --               --   Change in fair value of derivative    instrument                                   (4,769,030)              --   Make whole shares interest expense on    notes conversion                              2,310,312               --   Deferred tax assets                           (1,693,903)              --   Changes in operating assets and    liabilities   Accounts receivable                           41,524,834        8,679,486   Accounts receivable - related parties         25,765,034      (12,179,328)   Notes receivable                             (22,858,410)      (7,984,262)   Other receivables                             (7,297,322)      (1,428,924)   Other receivables - related parties            1,207,156         (456,000)   Dividend receivables                                  --               --   Inventories                                  (31,222,516)      (7,110,388)   Advances on inventory purchases               22,843,097      (61,418,795)   Advances on inventory purchases -    related parties                               2,442,105      (11,329,255)   Prepaid expense - current                     (1,373,246)        (282,484)   Prepaid expense - current- related    parties                                         (17,204)              --   Prepaid expense - non current                     45,632               --   Prepaid expense - non current -    related parties                                (101,914)              --   Accounts payable                              43,609,254       84,348,627   Accounts payable - related parties           (55,827,778)         710,128   Other payables                                (3,037,525)       4,353,966   Other payable - related parties                2,641,961      (63,100,758)   Accrued liabilities                            1,079,105        5,182,043   Dividends payable                               (463,548)              --   Customer deposits                             77,729,355       16,307,900   Customer deposits - related parties           (7,818,786)              --   Taxes payable                                (12,922,209)      10,887,436   Net cash provided by (used in)    operating activities                         83,458,363      (10,602,368)    CASH FLOWS FROM INVESTING ACTIVITIES:   Cash acquired from subsidiary                  2,767,004          680,132   Increase in investment payable                        --        6,270,720   Advance on equipment purchases                   717,477         (207,056)   Deposits due to sales representatives           (742,657)        (332,087)   Cash proceeds from sale of equipment             126,756           43,652   Purchase of equipment                       (145,800,109)     (12,159,159)   Intangible assets purchases                     (233,490)              --   Payment to original shareholders              (7,092,000)              --                                               (150,257,019)      (5,703,798)    CASH FLOWS FINANCING ACTIVITIES:   Restricted cash                              (76,828,246)      (1,633,346)   Borrowings from related parties                       --       18,550,906   Notes receivable- restricted                  13,086,993               --   Borrowings on short term loans - bank         58,486,358       52,924,877   Payments on short term loans - bank          (76,145,055)     (63,199,713)   Borrowings on short term loan -    others                                       59,267,608        5,225,600   Payments on short term loans - others        (50,134,207)      (1,437,040)   Borrowings on short term loans -    related parties                               3,326,184               --   Payments on short term loans -    related parties                              (7,651,657)              --   Borrowings on short term notes    payable                                     193,373,616       42,484,128   Payments on short term notes payable         (78,079,302)     (40,001,968)   Cash received on stock issuance                       --        5,290,428   Cash received from shareholder                        --        1,500,000   Cash contribution received from    minority shareholders                                --          783,840   Cash received from warrants    conversion                                      700,000               --   Payment to minority shareholders                               (4,291,634)   Net cash provided by financing    activities                                   39,402,292       16,196,078    EFFECTS OF EXCHANGE RATE CHANGE IN    CASH                                          1,669,636           59,978    INCREASE (DECREASE) IN CASH                  (25,726,728)         (50,110)    CASH, beginning of period                     43,713,346        6,831,549    CASH, end of period                          $17,986,618       $6,781,439                     GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY                            Preferred stock          Common stock      Paid-in                        Shares  Par value         Shares Par value   capital    BALANCE, January 1,    2007                        --       $-- $31,250,000 $31,250  $6,871,358   Net income   Preferred stock issued    for acquisition of    minority interest,    net of dividend    distribution to    Victory New          3,092,899     3,093                       8,370,907   Common stock issued    for conversion of    redeemable stock,    $1.95/share                                1,176,665   1,177   2,293,320   Common stock issued    for service,    $1.32/share                                   18,000      18      23,742   Conversion of    warrants, $2.50                            2,120,000   2,120   5,297,880   Foreign currency    translation    adjustments    BALANCE, September 30,    2007, unaudited      3,092,899    $3,093 $34,564,665 $34,565 $22,857,207    Net income   Adjustment to    statutory reserve   Registered Capital to    be received from    Baotou Steel by    05/21/09   Common stock issued    for service, $1.32   Common stock issued    for acquisition net    of dividend    distribution to    Tianjin Victory New   Common stock issued    for compensation,    $8.16                                         70,100      70     571,946   Foreign currency    translation gain    BALANCE, December 31,    2007                 3,092,899    $3,093 $34,634,765 $34,635 $23,429,153    Net loss   Adjustment to    statutory reserve   Common stock issued    for compensation,    $7.16                                         76,600      77     548,379   Common stock issued    for compensation,    $10.43                                       150,000     150   1,564,350   Common stock issued    for compensation,    $6.66                                         87,400      87     581,997   Common stock issued    for compensation,    $10.29                                        90,254      90     928,582   Common stock    transferred by CEO    for compensation,    $6.91                                             --      --     138,200   Common stock issued at    $5/share                                     140,000     140     699,860   Notes converted to    common stock                                 541,299     541   6,102,691   Make whole shares    issued on notes    conversion                                   195,965     196   2,310,117   Foreign currency    translation    adjustments    BALANCE, September 30,    2008, unaudited      3,092,899    $3,093 $35,916,283 $35,916 $36,303,329     (Cont.)                                                        Accumulated                       Retained earnings                   other                                                      comprehensive                     Statutory             Subscriptions income                     reserves  Unrestricted receivable                 Total    BALANCE, January    1, 2007         $1,107,010  $4,974,187        $--  1,076,688 $14,060,493                                                                          --   Net income                   10,368,661                        10,368,661   Preferred stock    issued for    acquisition of    minority    interest ,                                                            --   net of dividend    distribution to    Victory New                 (2,188,203)                        6,185,797   Common stock    issued for    conversion of                                                         --   redeemable stock,    $1.95/share                                                    2,294,497   Common stock    issued for    service,    $1.32/share                                                       23,760   Conversion of    warrants, $2.50                                                5,300,000   Foreign currency    translation    adjustments                                        1,196,827   1,196,827    BALANCE,    September 30,    2007, unaudited $1,107,010 $13,154,645        $-- $2,273,515 $39,430,035    Net income                   12,057,260                        12,057,260   Adjustment to    statutory    reserve          2,525,315  (2,525,315)                               --   Registered    Capital to be    received from                                                         --   Baotou Steel by    05/21/09                                 (959,700)              (959,700)   Common stock    issued for    service, $1.32                                                        --   Common stock    issued for    acquisition net    of dividend                                                           --   distribution to    Tianjin Victory    New                                 --                                --   Common stock    issued for    compensation,    $8.16                                                            572,016   Foreign currency    translation gain                                   2,289,563   2,289,563                                                                          --   BALANCE, December    31, 2007        $3,632,325 $22,686,590  $(959,700)$4,563,078 $53,389,174    Net loss                     (1,618,492)                       (1,618,492)   Adjustment to    statutory    reserve            648,363    (648,363)                               --   Common stock    issued for    compensation,    $7.16                                                            548,456   Common stock    issued for    compensation,    $10.43                                                         1,564,500   Common stock    issued for    compensation,    $6.66                                                            582,084   Common stock    issued for    compensation,    $10.29                                                           928,672   Common stock    transferred by    CEO for    compensation,    $6.91                                                            138,200   Common stock    issued at    $5/share                                                         700,000   Notes converted    to common stock                                                6,103,232   Make whole shares    issued on notes    conversion                                                     2,310,313   Foreign currency    translation    adjustments                                       10,464,375  10,464,375    BALANCE,    September 30,    2008, unaudited $4,280,688 $20,419,735 $(959,700)$15,027,453 $75,110,514      For investor and media inquiries please contact:    In China:    Ms. Jing Ou-Yang    General Steel Holdings, Inc.    Tel:   +86-10-5879-7346    Email: jing@gshi-steel.com     Mr. Justin Knapp    Ogilvy Financial, Beijing    Tel:   +86-10-8520-6556    Email: justin.knapp@ogilvy.com    In the United States:    Ms. Jessica Barist Cohen    Ogilvy Financial, New York    Tel:   +1-646-460-9989    Email: jessica.cohen@ogilvypr.com  

General Steel Holdings, Inc.

CONTACT: In China: Ms. Jing Ou-Yang of General Steel Holdings, Inc.,+86-10-5879-7346, or jing@gshi-steel.com; Or Mr. Justin Knapp of OgilvyFinancial, Beijing, or +86-10-8520-6556, or justin.knapp@ogilvy.com; Or In theUnited States: Ms. Jessica Barist Cohen of Ogilvy Financial, New York, +1-646-460-9989, or jessica.cohen@ogilvypr.com

Web site: http://www.gshi-steel.com/




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