China GengSheng Minerals,Inc. (“CHGS.OB” or the “company”), established in 1986, manufactures mineral-based heat-resistant and energy-saving monolithic refractories, functional ceramics, fracture proppants and fine precision abrasives. Headquartered in Henan Province, China GengSheng employs more than 1,300 employees and currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and other countries, getting good reputation both at home and abroad.

Based on Mr. Shunqing Zhang, CEO and Chairman groundbreaking vision, our innovative culture, reliable product quality and effective marketing, “Gengsheng” has become one of the most recognized brands in Chinese refractory industry. 

China GengSheng generates approximately 85% of its total revenue from refractory product sales and services, which is used as linings for furnaces and other high thermal processes, mainly by steel producers. Refractory market is fragmented, while China Gengsheng has become the market leader in monolithic segment. Fracture proppants, launched in 2Q07, whose revenue has grown 11 times in FY2008, is used to reach trapped pockets of oil and natural gas deposits, leading to higher yields from oil and natural gas wells. The company has been certified by PetroChina, Sinopec and CNOOC as a first-tier supplier. Fine precision abrasive, which is used for slicing the solar-silicon bar and polishing the equipment surface, is expected to be commercially launched lately and could be the next sweet spot of growth.

For the fiscal year of 2008, sales were $49.8 million, and the net income was $4.0 million, with the gross margin and net margin of 32.1% and 8.1% respectively. Diluted EPS was $0.17. As of 31th December 2008, the company's total assets were $68.5 million, with cash per share of $0.04.