September 06, 2008

General Steel Holdings reports Q2 results

General Steel Holdings, Inc has recently announced its financial results for the second quarter ended on June 30th 2007. Its second quarter sales revenue reached a record USD 121.3 million up by 312% YoY, gross profits reached a record USD 8.11 million up by 410% YoY and net income reached a record USD 1.9 million up by 2086% YoY.

The highlights of achievements during April to June 2007 quarter are
1. Signed 60% JV agreement with Shaanxi Longmen Iron and Steel Group Company Ltd and began operations in June 2007.
2. Finalized 80% ownership position in a JV agreement with Baotou Iron & Steel Group. Full production will begin in third quarter 2007.
3. Purchased 30% remaining outstanding shares of Tianjin subsidiary 4. Increased aggregate production capacity from 400,000 tonnes to 3 million tonnes.

Mr Henry Yu chairman & CEO of General Steel said that ''The second quarter was a pivotal point in the growth of General Steel. We executed our growth strategy by gaining controlling interest in two targeted joint ventures. This increased our production capacity from 400,000 tons to 3 million tons, widened our product mix and gave us a solid regional presence to better serve the rapidly developing western region. We are especially pleased with results from our new Long Men Joint Venture, which started only in June and has already had a great impact on earnings. We look forward to the results we can deliver to investors in the third quarter when all three of our operating units will reflect a full three months of operation.''

General Steel Holdings, Inc headquartered in Beijing operates a diverse portfolio of Chinese steel companies. With 3 million tonnes aggregate production capacity, its companies serve various industries and produce a variety of steel products including reinforced bar hot-rolled carbon and silicone sheet and spiral-weld pipe. The company has steel operations in Shaanxi province, Inner Mongolia province and Tianjin municipality.