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") (NYSE: GSI), 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., (NYSE: GSI), 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