General Steel (GSIH) 8-K Second Quarter Earnings Call

Exhibit 99.1

GENERAL STEEL HOLDINGS, INC. ANNOUNCES RECORD FINANCIAL RESULTS FOR SECOND QUARTER 2007 &

SECOND QUARTER EARNINGS CALL

BEIJING, China, August 20, 2007 / Xinhua-PRNewswire/ -- General Steel Holdings, Inc. (“General Steel”), (OTC Bulletin Board: GSHO), China’s first publicly traded steel company in the US, reports record financial results for the second quarter ended on June 30, 2007.

Second Quarter 2007 Financial Highlights

· Sales Revenue reached a record $121.3 million, up 312% from the second quarter of 2006

· Gross Profits reached a record $8.11 million, up 410% from the second quarter of 2006

· Net Income reached a record $1.9 million, up 2086% from the second quarter of 2006

· Earning per share rose to $0.06 per share, up from $0.003 per share from the second quarter of 2006

Second Quarter 2007 Achievements

· Signed 60% Joint Venture agreement with Shaanxi Longmen Iron and Steel Group, Co., Ltd. and began operations in June 2007

· Finalized 80% ownership position in a Joint Venture agreement with Baotou Iron & Steel Group - Full production will begin in third quarter 2007

· Purchased 30% remaining outstanding shares of Tianjin subsidiary

· Increased aggregate production capacity from 400,000 tons to 3 million tons (650%)

“The second quarter was a pivotal point in the growth of General Steel,” stated Henry Yu, General Steel Chairman and CEO. “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.”

New Businesses & Products

General Steel now operates three steel business units.

· Tianjin Daqiuzhuang Metal Sheet Co., Ltd. operates ten production lines capable of producing 400,000 tons of hot-rolled carbon and silicon steel sheets used mainly in the agricultural vehicle market. It has an approximate 50% market share for steel sheets used in the production of light agricultural vehicles. General Steel owns 100% of this business unit

· Baotou Steel - General Steel Special Steel Pipe Joint Venture Co., Ltd. received its business license in May 2007. It has four production lines capable of producing 100,000 tons of spiral-weld pipes used mainly in the energy sector to transport oil, natural gas and steam. General Steel owns 80% of this joint venture.

· Shaanxi Long Men Iron & Steel Co., Ltd. began in June 2007. It is a joint venture between General Steel and the Shaanxi Long Men Iron and Steel Group Co., Ltd. The joint venture is a fully-integrated steel production facility capable of producing 2.5 million tons of crude steel. It produces a final product mix of rebar and infrastructure related steel products. General Steel owns 60% of this business unit.

Second Quarter 2007 Financial Results

Note: Financial results include the operations of Tianjin Daqiuzhuang Metal Co., Ltd. for the full three months and operations from Shaanxi Long Men Iron and Steel Co., Ltd for only one month. Baotou Steel - General Steel Special Steel Pipe Joint Venture Co., Ltd. was in production test mode for most of the quarter and had little impact on results of the quarter.

Net sales from operations increased to $121.3 million in the quarter, reflecting a 312% increase over the $29.4 million recorded in the second quarter last year. In a close corollary and for the same periods of comparison, shipment volume rose 360% to 304,954 tons from 66,359 tons. The company also saw its cost of sales march upward to $113.1 million, up from $27.8 million from the same quarter of 2006. Quarterly gross profit hit $8.1 million, registering a 410% increase above the $1.59 million recorded in the same period of 2006. General Steel witnessed selling general and administrative expenses rise to $2.84 million from $810,000 in the second quarter of the previous year. Accounts receivable was $20.7 million at the end of the second quarter compared to $17.1 million at the end of 2006. Most notably, net income for the quarter climbed 2086% to $1.9 million, up from $86,598 the same period the year before. This translated into a corresponding jump in earnings per share to $0.06 per share from $0.003 per share in the equivalent three months of 2006.

Conference Call

Management will host a conference call at 9:00 a.m. Eastern Time on August 20, 2007, to discuss results of the second quarter ending June 30, 2007 and allow investors greater visibility into the new operations of the company. Joining Henry Yu, General Steel Holdings Chairman and Chief Executive Officer, on the call will be John Chen, the company’s Chief Financial Officer and Ross Warner, a Director with the company. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 1-800-860-2442. The pass code for the call is “General Steel.”

This conference call will be broadcast live over the Internet and can be accessed by all interested parties through the following URL http://www.videonewswire.com/event.asp?id=41866 . To listen to the live webcast, go to the URL at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on General Steel Holdings’ website http://www.gshi-steel.com .

About General Steel Holdings, Inc.

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

Contact:

Ross Warner

General Steel Holdings, Inc.

Tel: (Beijing) 86-10-5879-7346

Email: ross@gshi-steel.com

Skype: ross.warner.generalsteel

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2007 AND DECEMBER 31, 2006

	June 30,		December 31,
	2007		2006
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash	$	44,304,703	$	6,831,549
Restricted cash		13,545,793		4,231,523
Accounts receivable, net of allowance for doubtful accounts of $140,662
and $137,132 as of June 30, 2007 and December 31, 2006, respectively		20,703,437		17,095,718
Notes receivable		6,784,263		537,946
Other receivables		436,317		268,784
Other receivables - related parties		1,682,400		850,400
Inventories		66,075,563		12,489,290
Advances on inventory purchases		8,934,047		2,318,344
Advances on inventory purchases - related parties		25,754,327		-
Advance on equipment purchases		1,968,418		-
Prepaid expenses - current		47,340		46,152
Total current assets		190,236,608		44,669,706
PLANT AND EQUIPMENT, net		191,305,061		26,606,594
OTHER ASSETS:
Prepaid expenses - non current		873,052		740,868
Intangible assets - land use right, net of accumulated amortization		21,197,244		1,804,440
Total other assets		22,070,296		2,545,308
Total assets	$	403,611,965	$	73,821,608
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	19,788,769	$	3,001,775
Short term loans		113,834,289		30,284,686
Short term notes payable		43,421,300		8,153,520
Other payables		2,631,207		355,142
Other payable - related party		90,979,655		-
Accrued liabilities		9,350,456		1,064,012
Customer deposits		34,126,053		1,093,602
Customer deposits - related parties		7,347,109
Deposits due to sales representatives		1,743,690		2,051,200
Taxes payable		20,233,032		5,391,602
Investment payable		6,312,000		-
Shares subject to mandatory redemption		1,950,000		2,179,779
Total current liabilities		351,717,560		53,575,318
MINORITY INTEREST		28,313,565		6,185,797
SHAREHOLDERS' EQUITY:
Preferred stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899 and 0 shares
issued and outstanding as of June 30, 2007 and December 31, 2006, respectively		3,093		-
Common Stock, $0.001 par value, 200,000,000 shares authorized, 32,444,665 and
32,426,665 shares issued and outstanding (including 1,000,000 and 1,176,665
redeemable shares) as of June 30, 2007 and December 31, 2006, respectively		31,445		31,250
Paid-in-capital		15,610,335		6,871,358
Retained earnings		5,154,150		4,974,187
Statutory reserves		1,107,010		1,107,010
Accumulated other comprehensive income		1,674,807		1,076,688
Total shareholders' equity		23,580,840		14,060,493
Total liabilities and shareholders' equity	$	403,611,965	$	73,821,608

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006

(Unaudited)

	Three months ended				Six months ended
	June 30,				June 30,
	2007		2006		2007		2006
REVENUES	$	121,254,744	$	29,398,358	$	158,862,715	$	50,040,860
COST OF SALES		113,141,376		27,807,959		149,016,342		47,082,163
GROSS PROFIT		8,113,368		1,590,399		9,846,373		2,958,697
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		2,844,411		807,633		3,474,611		1,549,811
INCOME FROM OPERATIONS		5,268,957		782,766		6,371,762		1,408,886
OTHER EXPENSE, NET		1,241,143		587,552		1,461,818		747,693
INCOME BEFORE PROVISION FOR INCOME TAXES AND MINORITY INTEREST		4,027,814		195,214		4,909,944		661,193
PROVISION FOR INCOME TAXES		1,206,613		-		1,333,882		-
NET INCOME BEFORE MINORITY INTEREST		2,821,201		195,214		3,576,062		661,193
LESS MINORITY INTEREST		927,902		108,616		1,207,896		322,190
NET INCOME		1,893,299		86,598		2,368,166		339,003
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustments		374,568		61,231		598,119		182,636
COMPREHENSIVE INCOME	$	2,267,867	$	147,829	$	2,966,285	$	521,639
WEIGHTED AVERAGE NUMBER OF SHARES		31,444,665		31,250,000		31,444,665		31,250,000
EARNING PER SHARE, BASIC AND DILUTED	$	0.060	$	0.003	$	0.075	$	0.011

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

FOR THE SIXMONTHS ENDED JUNE 30, 2007 AND 2006

											Retained earnings					Accumulated
	Preferred stock				Common stock				Paid-in		Statutory					comprehensive
	Shares		Par value		Shares		Par value		capital		reserves		Unrestricted			income		Totals
BALANCE, January 1, 2006		-	$	-		31,250,000	$	31,250	$	6,871,358	$	840,753	$	4,207,236		$	399,188	$	12,349,785
Net income														339,003					339,003
Foreign currency translation adjustments																	182,636		182,636
BALANCE, June 30, 2006, unaudited		-	$	-		31,250,000	$	31,250	$	6,871,358	$	840,753	$	4,546,239		$	581,824	$	12,871,424
Net income														694,205					694,205
Adjustment to statutory reserve												266,257		(266,257	)				-
Foreign currency translation adjustments																	494,864		494,864
BALANCE, December 31, 2006		-	$	-		31,250,000	$	31,250	$	6,871,358	$	1,107,010	$	4,974,187		$	1,076,688	$	14,060,493
Net income														2,368,166					2,368,166
																			-
Preferred stock issued for acquistion of minority interest , net of dividend distribution to Victory New		3,092,899		3,093						8,370,907				(2,188,203	)				6,185,797
Common stock issued for conversion of redeemable																			-
stock, $1.95/share						176,665		177		344,328									344,505
Common stock issued for service, $1.32/share						18,000		18		23,742									23,760
Foreign currency translation adjustments																	598,119		598,119
BALANCE, June 30, 2007, unaudited		3,092,899	$	3,093		31,444,665	$	31,445	$	15,610,335	$	1,107,010	$	5,154,150		$	1,674,807	$	23,580,840

GENERAL STEEL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2007 AND 2006
(Unaudited)
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,368,166		$	339,003
Adjustments to reconcile net income to cash provided by
(used in) operating activities:
Minority interest		1,207,896			322,190
Depreciation		1,979,184			548,685
Amortization		194,830			147,839
Loss on disposal of equipment		118,528			28,859
Stock issued for services		23,760			-
Interest expense accrued on mandatory redeemable stock		114,726			229,452
(Increase) decrease in assets:
Accounts receivable		499,590			(3,236,194	)
Notes receivable		(212,753	)		(561,164	)
Notes receivable-related party		-			995,031
Other receivables		(152,646	)		18,777
Other receivables - related parties		(814,100	)		(970,000	)
Inventories		(843,369	)		(12,971,648	)
Advances on inventory purchases		248,632			3,939,998
Advances on inventory purchases - related parties		(25,403,755	)		-
Prepaid expenses - current		(111,573	)		(108,732	)
Increase (decrease) in liabilities:
Accounts payable		14,049,429			3,291,541
Other payables		808,677			242,167
Other payable - related party		(13,990,128	)		(980,000	)
Accrued liabilities		7,981,708			763,533
Customer deposits		771,354			674,434
Customer deposits -related parties		7,247,099			-
Taxes payable		14,610,931			910,544
Net cash provided by (used in) operating activities		10,696,186			(6,375,685	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash acquired from subsidiary		426,387			-
Increase in investment payable		6,226,080			-
Advances on equipment purchases		(1,941,624	)		1,058,435
Deposits due to sales representatives		(355,405	)		437,416
Cash proceeds from sale of equipment		39,442			-
Purchase of equipment		(1,350,225	)		(5,058,840	)
Net cash provided by (used in) investing activities		3,044,655			(3,562,989	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Restricted cash		(5,188,741	)		256,248
Cash contribution received from minority shareholders		778,260			-
Borrowings from related parties		25,942,000			-
Borrowings on short term loans - bank		25,727,979			14,125,677
Payments on short term loans - bank		(30,165,358	)		(10,156,530	)
Borrowings on short term notes payable		13,437,956			10,542,852
Payments on short term notes payable		(8,249,556	)		(11,041,332	)
Net cash provided by financing activities		22,282,540			3,726,915
EFFECTS OF EXCHANGE RATE CHANGE IN CASH		1,449,773			69,449
INCREASE (DECREASE) IN CASH		37,473,154			(6,142,310	)
CASH, beginning of period		6,831,549			8,648,373
CASH, end of period	$	44,304,703		$	2,506,063