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April 2013
2
Safe Harbor
This presentation includes or incorporates by reference statements that constitute "forward-looking statements"
within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of
the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include
statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions,
estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other
factors, which may be beyond our control, and which may cause the actual results, performance, capital,
ownership or achievements of the Company to be materially different from future results, performance or
achievements expressed or implied by such forward-looking statements. All statements other than statements of
historical fact are statements that could be forward-looking statements. You can identify these forward-looking
statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate,"
"would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could,"
"intend," "target" and other similar words and expressions of the future. All written or oral forward-looking
statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without
limitation, those risks and uncertainties described in our annual report on Form 20-F for the year ended
December 31, 2012 and otherwise in our SEC reports and filings. Such reports are available upon request from
the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at
http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-
looking statements after the date hereof, or after the respective dates on which any such statements otherwise
are made.
3
Capital Markets Summary
ttm = trailing twelve months
(1) Analyst FY2013E EPS guidance of $0.31 per share
(2) Growth rate provided by Analyst estimate of 32.3%
Price (4/30/13): $1.68
Revenues (ttm): $265.5 million
Net Income (ttm): $26.1 million
EPS (ttm): $0.45
Market Capitalization: $98.4 million
Price/Book (ttm): 0.30x
2013E P/E (1): 5.4x
2013E PEG Ratio (2): 0.17
4
The Leading High-Precision Steel Processing Company in China
● Headquartered in Zhengzhou, Henan Province, China
● Approximately 1,100 employees as of December 2012
● Annual capacity of 500K tons including 50% chromium plating capacity
● Serves over 200 customers in China in consumer spending and construction industries
Company Overview
China Gerui is a leading niche and high-value added metal processing
company that utilizes advanced technology to produce specialty, cold-rolled
steel products in China
Raw
Materials
Hot Rolled
Steel
Cold Rolled Steel
Processing
(Narrow + Wide Strip)
Manufacturers
End
Applications
5
1 Focus on customized, high value-added, high-margin steel production
2 Leading position in robust niche market in China
3 Unique business model with defendable barriers to entry
4 Proven track record of strong financial performance and profitability
5 Defined long-term growth strategy
7
Seasoned management with local market knowledge
Investment Highlights
Diversification of revenue stream via new technologies and exports
6
6
In-House Value Chain
Hot
Rolled
Coil
Initial
Cutting
Acid
Pickling
Cold
Rolling
Annealing
Temper
Rolling/
Stretching
Cold Rolled
Steel Strips
(Narrow + Wide)
Chromium
Plated Steel
Production Process
LevelofComplexity
Finished Product
Input
Factor
Value Creators
7
Defining Our Market
● For CRS products, the thickness can range between 0.05mm up to 7.5mm
● China Gerui specializes in ultra-thin, high-precision products with
thicknesses mostly from 0.05mm to 0.5, widths up to 1200mm, tolerance +/-
0.003mm
● Typical thickness of CHOP raw material HRC: 3mm
● Five series and over twenty types of high-precision strip steel products
0.05mm 0.5mm 7.5 mm
CHOP Commodity-type producers
8
Revenue by Industry Application
China Gerui produces high-precision steel products tailored
to meet exact customer specifications
Food and Industrial
Packaging
49%
Construction and
Household
Decoration
19%
Electrical
Appliances
25%
Telecom
Wire &
Cable
8%
2011
Food and Industrial
Packaging
51%
Construction and
Household
Decoration
23%
Electrical
Appliances
17%
Telecom
Wire & Cable
9%
2012
9
Economics of CHOP’s Business Model
Made- to- order production
High Inventory Turnover
Low A/R
No Long-Term Debt
Customer
Survey/Order
Secure Raw
Material
Receive 30%
down payment
Processing
70% Balance
Collected Upon
Delivery
Cost-plus method of pricing
● Not a commodity business: focused on customized high-margin steel production
● Products meet stringent performance and specification requirements
● Supplier of choice when our existing customers develop new products
10
Outpacing the Competition
● Limited domestic supply because PRC manufacturers lack the equipment and expertise to
produce high-end specialty cold rolled steel
● Steel industry is highly capital intensive: Capital requirements prevent newcomers or
smaller players without sufficient funds from entering the market
CHOP
International
Companies
Domestic
Companies
Strategic Focus
First Mover Advantage
Brand Recognition
Nationwide Distribution
Local Market Knowledge
High Product Quality
Financial Resources
11
Strong Financial Performance
USD million
Total Revenue
Net Profit Adjusted EBITDA
USD million USD million
USD million
Gross Profit
FYE 2013
Guidance
Revenue
$280 MM
to
$290 MM
$218.9
$253.9
$341.8
$265.5
0
50
100
150
200
250
300
350
400
2009 2010 2011 2012
$65.8
$76.0
$101.6
$56.9
30.0% 29.9%
29.7%
21.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2009 2010 2011 2012
Grosss profit Gross margin
$43.4
$47.1
$57.6
$26.1
19.8% 18.5%
16.9%
9.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2009 2010 2011 2012
Net income Net margin
$63.4
$70.6
$98.2
$53.9
0
20
40
60
80
100
120
2009 2010 2011 2012
Note: EBITDA is adjusted for one-time warrant expenses of $5.7mm in 2011
12
Healthy Balance Sheet
Condensed Balance Sheet
(USD 000’s)
December-31-2012
(Unaudited)
December-31-2011
(Audited)
Cash $228,861 $246,601
Certificates of Deposit 16,372 -
Restricted cash 145,413 118,130
Accounts receivable 2,276 6,383
Inventories 22,763 24,463
Current assets 495,040 445,186
Total assets 673,370 601,076
Notes Payable 259,546 204,881
Term Loans 57,463 44,170
Current liabilities 343,302 302,648
Total liabilities 343,302 302,648
Total stockholders’ equity 330,067 298,428
Working capital 151,738 142,538
Inventory turnover per year 8.8 6.7
Days sales outstanding 3.9 6.8
13
Attractive Valuation
Notes: US Metals Processors consist of Worthington Industries, Metals USA Holdings, Reliance Steel & Aluminum,
Olympic Steel, Castle and AK Steel. All pricing information is of 4/30/13; all financial information is as of 12/30/12 except
for WOR which is 5/31/12.
(a) Negative EPS
Source: Company Filings, Thomson One
US Metals Processors
2013E P/E
US Metals Processors
Mean: 20.7%
TTM Gross Margins
5.4x
15.5x
12.9x 12.4x
(a) (a)
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
CHOP WOR RS ZEUS CAS AKS
Mean: 9.2x
21.4%
14.6%
24.3%
18.4%
25.0%
3.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
CHOP WOR RS ZEUS CAS AKS
14
Disciplined Growth Strategy
Double capacity to 500K tons with 50%
chromium plating capabilities
Broaden product portfolio and mix by
expanding into plated steel production
Expand technical expertise and control cost
Develop disciplined acquisition strategy
and pursue strategic partnership with
industry leaders
Expand sales channels
and product offeringsPursue Acquisitions &
Strategic Partnership
Improve Efficiency
Broaden Product
Portfolio
Expand Market Share
Double Capacity
15
Production Capacity
Doubled in 2012
250K
100% Utilization
400K
500K
250K 250K
Wide Strip
Narrow
Strip
Chromium
Plating
Capacity
50K
Increase of Chromium plating
capacity from 50K tons to
250K tons or 50% of total
capacity today
0
50
100
150
200
250
300
350
400
450
500
2010 2011 2012
250 250 250
150
250
Tons(000)
0
50
100
150
200
250
2010 2011 2012
50 50
250
200
Tons(000)
16
● Mingwang Lu, Chairman of the Board and Chief Executive Officer
– Over 20 years of steel industry experience
– CEO of the Company since 2000
– Held various management positions at Zhengzhou No.2 Steel Plant from 1995 to 2000
– Elected as a member of the 9th, 10th and 11th National People’s Congress in Henan Province
– Awarded Excellent Director/Manager in Henan Province, National Excellent Township
Entrepreneur and Expert in Steel Industry of Henan Province
● Edward Meng, Chief Financial Officer
– Joined China Gerui in April 2009, residing in Zhengzhou, China
– Former CFO/Director of the Board of a number of U.S.-listed companies
– Former CFO of MNCs in China (Shell/Koch/Terex)
– Georgetown University MBA, U.S. CPA, experienced in PRC & U.S. GAAP
Seasoned Management Team
17
1 Focus on customized, high value-added, high-margin steel production
2 Leading position in robust niche market in China
3 Unique business model with defendable barriers to entry
4 Proven track record of strong financial performance and profitability
5 Defined long-term growth strategy
7
Seasoned management with local market knowledge
Investment Highlights
Diversification of revenue stream via new technologies and exports
6
18
Contact Information
This Presentation of China Gerui Advanced Materials Group Limited was developed by the Company and Grayling and is intended solely for informational
purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This presentation is based upon information
available to the public, as well as other information from sources which management believes to be reliable, but is not represented by China Gerui Advanced
Materials Group Limited or Grayling as being fully accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date
of publication and are subject to change without notice.
Company Contact: Grayling:
Email: investors@geruigroup.com Vivian Chen, Managing Director
Website: www.geruigroup.com Phone: 1-646-284-9427
Email: vivian.chen@grayling.com
April 2013

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Chop apr13pres

  • 2. 2 Safe Harbor This presentation includes or incorporates by reference statements that constitute "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2012 and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward- looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
  • 3. 3 Capital Markets Summary ttm = trailing twelve months (1) Analyst FY2013E EPS guidance of $0.31 per share (2) Growth rate provided by Analyst estimate of 32.3% Price (4/30/13): $1.68 Revenues (ttm): $265.5 million Net Income (ttm): $26.1 million EPS (ttm): $0.45 Market Capitalization: $98.4 million Price/Book (ttm): 0.30x 2013E P/E (1): 5.4x 2013E PEG Ratio (2): 0.17
  • 4. 4 The Leading High-Precision Steel Processing Company in China ● Headquartered in Zhengzhou, Henan Province, China ● Approximately 1,100 employees as of December 2012 ● Annual capacity of 500K tons including 50% chromium plating capacity ● Serves over 200 customers in China in consumer spending and construction industries Company Overview China Gerui is a leading niche and high-value added metal processing company that utilizes advanced technology to produce specialty, cold-rolled steel products in China Raw Materials Hot Rolled Steel Cold Rolled Steel Processing (Narrow + Wide Strip) Manufacturers End Applications
  • 5. 5 1 Focus on customized, high value-added, high-margin steel production 2 Leading position in robust niche market in China 3 Unique business model with defendable barriers to entry 4 Proven track record of strong financial performance and profitability 5 Defined long-term growth strategy 7 Seasoned management with local market knowledge Investment Highlights Diversification of revenue stream via new technologies and exports 6
  • 6. 6 In-House Value Chain Hot Rolled Coil Initial Cutting Acid Pickling Cold Rolling Annealing Temper Rolling/ Stretching Cold Rolled Steel Strips (Narrow + Wide) Chromium Plated Steel Production Process LevelofComplexity Finished Product Input Factor Value Creators
  • 7. 7 Defining Our Market ● For CRS products, the thickness can range between 0.05mm up to 7.5mm ● China Gerui specializes in ultra-thin, high-precision products with thicknesses mostly from 0.05mm to 0.5, widths up to 1200mm, tolerance +/- 0.003mm ● Typical thickness of CHOP raw material HRC: 3mm ● Five series and over twenty types of high-precision strip steel products 0.05mm 0.5mm 7.5 mm CHOP Commodity-type producers
  • 8. 8 Revenue by Industry Application China Gerui produces high-precision steel products tailored to meet exact customer specifications Food and Industrial Packaging 49% Construction and Household Decoration 19% Electrical Appliances 25% Telecom Wire & Cable 8% 2011 Food and Industrial Packaging 51% Construction and Household Decoration 23% Electrical Appliances 17% Telecom Wire & Cable 9% 2012
  • 9. 9 Economics of CHOP’s Business Model Made- to- order production High Inventory Turnover Low A/R No Long-Term Debt Customer Survey/Order Secure Raw Material Receive 30% down payment Processing 70% Balance Collected Upon Delivery Cost-plus method of pricing ● Not a commodity business: focused on customized high-margin steel production ● Products meet stringent performance and specification requirements ● Supplier of choice when our existing customers develop new products
  • 10. 10 Outpacing the Competition ● Limited domestic supply because PRC manufacturers lack the equipment and expertise to produce high-end specialty cold rolled steel ● Steel industry is highly capital intensive: Capital requirements prevent newcomers or smaller players without sufficient funds from entering the market CHOP International Companies Domestic Companies Strategic Focus First Mover Advantage Brand Recognition Nationwide Distribution Local Market Knowledge High Product Quality Financial Resources
  • 11. 11 Strong Financial Performance USD million Total Revenue Net Profit Adjusted EBITDA USD million USD million USD million Gross Profit FYE 2013 Guidance Revenue $280 MM to $290 MM $218.9 $253.9 $341.8 $265.5 0 50 100 150 200 250 300 350 400 2009 2010 2011 2012 $65.8 $76.0 $101.6 $56.9 30.0% 29.9% 29.7% 21.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0.0 20.0 40.0 60.0 80.0 100.0 120.0 2009 2010 2011 2012 Grosss profit Gross margin $43.4 $47.1 $57.6 $26.1 19.8% 18.5% 16.9% 9.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2009 2010 2011 2012 Net income Net margin $63.4 $70.6 $98.2 $53.9 0 20 40 60 80 100 120 2009 2010 2011 2012 Note: EBITDA is adjusted for one-time warrant expenses of $5.7mm in 2011
  • 12. 12 Healthy Balance Sheet Condensed Balance Sheet (USD 000’s) December-31-2012 (Unaudited) December-31-2011 (Audited) Cash $228,861 $246,601 Certificates of Deposit 16,372 - Restricted cash 145,413 118,130 Accounts receivable 2,276 6,383 Inventories 22,763 24,463 Current assets 495,040 445,186 Total assets 673,370 601,076 Notes Payable 259,546 204,881 Term Loans 57,463 44,170 Current liabilities 343,302 302,648 Total liabilities 343,302 302,648 Total stockholders’ equity 330,067 298,428 Working capital 151,738 142,538 Inventory turnover per year 8.8 6.7 Days sales outstanding 3.9 6.8
  • 13. 13 Attractive Valuation Notes: US Metals Processors consist of Worthington Industries, Metals USA Holdings, Reliance Steel & Aluminum, Olympic Steel, Castle and AK Steel. All pricing information is of 4/30/13; all financial information is as of 12/30/12 except for WOR which is 5/31/12. (a) Negative EPS Source: Company Filings, Thomson One US Metals Processors 2013E P/E US Metals Processors Mean: 20.7% TTM Gross Margins 5.4x 15.5x 12.9x 12.4x (a) (a) 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x CHOP WOR RS ZEUS CAS AKS Mean: 9.2x 21.4% 14.6% 24.3% 18.4% 25.0% 3.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% CHOP WOR RS ZEUS CAS AKS
  • 14. 14 Disciplined Growth Strategy Double capacity to 500K tons with 50% chromium plating capabilities Broaden product portfolio and mix by expanding into plated steel production Expand technical expertise and control cost Develop disciplined acquisition strategy and pursue strategic partnership with industry leaders Expand sales channels and product offeringsPursue Acquisitions & Strategic Partnership Improve Efficiency Broaden Product Portfolio Expand Market Share Double Capacity
  • 15. 15 Production Capacity Doubled in 2012 250K 100% Utilization 400K 500K 250K 250K Wide Strip Narrow Strip Chromium Plating Capacity 50K Increase of Chromium plating capacity from 50K tons to 250K tons or 50% of total capacity today 0 50 100 150 200 250 300 350 400 450 500 2010 2011 2012 250 250 250 150 250 Tons(000) 0 50 100 150 200 250 2010 2011 2012 50 50 250 200 Tons(000)
  • 16. 16 ● Mingwang Lu, Chairman of the Board and Chief Executive Officer – Over 20 years of steel industry experience – CEO of the Company since 2000 – Held various management positions at Zhengzhou No.2 Steel Plant from 1995 to 2000 – Elected as a member of the 9th, 10th and 11th National People’s Congress in Henan Province – Awarded Excellent Director/Manager in Henan Province, National Excellent Township Entrepreneur and Expert in Steel Industry of Henan Province ● Edward Meng, Chief Financial Officer – Joined China Gerui in April 2009, residing in Zhengzhou, China – Former CFO/Director of the Board of a number of U.S.-listed companies – Former CFO of MNCs in China (Shell/Koch/Terex) – Georgetown University MBA, U.S. CPA, experienced in PRC & U.S. GAAP Seasoned Management Team
  • 17. 17 1 Focus on customized, high value-added, high-margin steel production 2 Leading position in robust niche market in China 3 Unique business model with defendable barriers to entry 4 Proven track record of strong financial performance and profitability 5 Defined long-term growth strategy 7 Seasoned management with local market knowledge Investment Highlights Diversification of revenue stream via new technologies and exports 6
  • 18. 18 Contact Information This Presentation of China Gerui Advanced Materials Group Limited was developed by the Company and Grayling and is intended solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This presentation is based upon information available to the public, as well as other information from sources which management believes to be reliable, but is not represented by China Gerui Advanced Materials Group Limited or Grayling as being fully accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice. Company Contact: Grayling: Email: investors@geruigroup.com Vivian Chen, Managing Director Website: www.geruigroup.com Phone: 1-646-284-9427 Email: vivian.chen@grayling.com