China geruijun13pres

June 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

LTM = last twelve months (1) Analyst FY2013E EPS guidance of $0.31 per share (2) Growth rate provided by Analyst estimate of 32.3%

Price (5/31/13): $1.88

Revenues (LTM): $242.41 million

Net Income(LTM): $12.03 million

EPS (LTM): $0.21

Market Capitalization: $111.97 million

Price/Book Value: 0.34x

Book Value Per Share: $5.56

Net Cash Per Share: $1.21

2013E P/E (1): 6.1x

2013E PEG Ratio (2): 0.19

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 and 30K tons laminating

capabilities

● Serves over 200 customers in China in consumer spending and construction industries

● Began export of products to customers in Turkey and India in 2012 with additional customers expected in the U.S.

and other emerging markets

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

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 and

Laminated

Steel

Production Process

Le

vel

of

Co

mp

lexit

y

Finished Product

Input

Factor Value Creators

7

Defining Our Market

● 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

● For CRS products, the thickness can range between 0.05mm up to 7.5mm

● 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

24%

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

Adjusted Net Profit/Loss Adjusted EBITDA

USD million USD million

USD million

Gross Profit

FYE 2013 Guidance

Revenue

$280 MM

to

$290 MM

$253.9

$341.8

$265.5

$68.7 $45.6

0

50

100

150

200

250

300

350

400

2010 2011 2012 1Q2012 1Q2013

$76.0

$101.6

$56.9

$21.5

$5.2

29.9%

29.7%

21.4%

31.3%

11.4%

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

2010 2011 2012 1Q2012 1Q2013

Grosss profit Gross margin

$47.1

$63.2

$29.8 $14.0

$(0.1)

18.5% 18.5%

11.2%

20.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2010 2011 2012 1Q2012 1Q2013

Net income Net margin

$70.6

$98.2

$57.6

$22.0

$5.1

0

20

40

60

80

100

120

2010 2011 2012 1Q2012 1Q2013Note: EBITDA is adjusted for one-time warrant expenses of $5.7mm in 2011 and, stock-based

compensation expense of $3.7mm in 2012, stock-based compensation expense of $0.33mm in 1Q 2013

12

Healthy Balance Sheet

Condensed Balance Sheet

(USD 000’s)

March-31-2013

(Unaudited)

December-31-2012

(Unaudited)

Cash $234,170 $228,861

Certificates of Deposit 21,414 16,372

Restricted cash 144,738 145,413

Accounts receivable 2,584 2,276

Inventories 25,941 22,763

Current assets 510,447 495,040

Total assets 691,201 673,370

Notes Payable 267,598 259,546

Term Loans 60,862 57,463

Current liabilities 360,151 343,302

Total liabilities 360,151 343,302

Total stockholders’ equity 331,051 330,067

Working capital 150,297 151,738

Inventory turnover per year - 9.2

Days sales in inventory - 39.8

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: 18.4%

TTM Gross Margins

6.1x

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 16.8%

12.5%

27.0%

19.5%

16.2%

6.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

CHOP WOR RS ZEUS CAS AKS

14

Disciplined Growth Strategy

Expand technical expertise and control cost

Expand Market Share

Improve Efficiency

Broaden Product Portfolio

Pursue Acquisitions & Strategic Partnership

Double Capacity

Double capacity to 500K tons with 50%

chromium plating capabilities and added

30K tons laminating capacity

Broaden product portfolio and mix by expanding into

plated and laminated steel production

Develop disciplined

acquisition strategy and

pursue strategic

partnership with industry

leaders

Expand sales channels and

product offerings to replace

imported steel products

15

Production Capacity

Doubled in 2012

250K 100% Utilization

400K

500K

250K 250K

Wide Strip

Narrow Strip

Chromium Plating

Capacity 50K

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012

250 250 250

150

250

To

ns (

000)

0

50

100

150

200

250

2010 2011 2012

50 50

250

200

To

ns (

000)

• Added 30K

tons of

laminated

production

capacity in

2013

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: [email protected] Vivian Chen, Managing Director

Website: www.geruigroup.com Phone: 1-646-284-9427

Email: [email protected]

June 2013