China Stock Profile – China Precision Steel, Inc.

(CPSL)1

Statistics for CPSL:

P/E 36.8
Long Term EPS Growth NA
PEG Ratio NA
Net Margin 4%
Average Rating Value 3
Average Rating Hold
Average Target Price 1.6
Current Price 2.72
Year to Date Performance 118%
Institutional Ownership 4.85%
Short Interest as % of Float 5.48%

Explanation of Terms

P/E - Price divided by Earnings

Long Term EPS Growth - Long-Term (next 3-5 years) EPS Growth Rate estimated by Wall Street analysts
PEG Ratio – P/E to Growth Ratio. Generally the lower the ratio the more attractive the stock
Net Margin – Net Profit divided by Revenue
Average Rating Value – Based on Ratings given by Wall Street analysts. Generally, the lower the value, the
higher the rating
Average Rating – Based on Ratings given by Wall Street analysts
Average Target Price – Based on Target Price given by Wall Street analysts
Current Price – Current Market Price of stock
Year to Date Performance – Year to Date Performance in Price of stock
Institutional Ownership - % of Shares held by Large Institutions
Short Interest as % of Float – Short Interest in the stock as a % of Equity Float

Chart of CPSL

CPSL Company Profile

CPSL is a steel processing company and is involved in the manufacture and sale of high precision cold-
rolled steel products in China. The company produces and sells precision ultra-thin and high strength cold-
rolled steel products which are 7.5 mm to 0.03 mm thick. It also provides heat treatment and cutting of

1
By H.U.
medium and high carbon hot-rolled steel strips. The companys precision products are used in the
manufacture of automobile parts and components, steel roofing, plane friction discs, appliances, food
packaging materials, saw blades, textile needles, and microelectronics. It sells its products in China, Nigeria,
Thailand, Indonesia, and the Philippines with its headquarters in Sheung Wan, Hong Kong.

Key Executives of CPSL

Mr. Hing Li Wo MBA, 62

Chairman, Chief Exec. Officer and Pres
Ms. Tak Tai Li , 28
Chief Financial Officer, Principal Accounting Officer, Sec. and Treasurer
Mr. Sheng Chen Hai , 45
VP, Gen. Mang. and Exec. Director
Mr. Di Lu Gou ,
Assistant To the Gen. Mang.

Major Holders of CPSL

TOP INSTITUTIONAL HOLDERS

Holder Shares % Out Value* Reported

Barclays Global Investors UK Holdings Ltd 499,962 1.07 $584,955 31-Mar-09
Hudson Bay Capital Management LP 420,000 .90 $491,400 31-Mar-09
SHAW D.E. & CO., INC. 188,726 .41 $220,809 31-Mar-09
STATE STREET CORPORATION 171,920 .37 $201,146 31-Mar-09
Invesco Ltd. 135,316 .29 $158,319 31-Mar-09
Wedbush Morgan Securities, Inc. 122,092 .26 $142,847 31-Mar-09
NORTHERN TRUST CORPORATION 105,591 .23 $123,541 31-Mar-09
RHUMBLINE ADVISORS 65,910 .14 $163,456 30-Jun-09
RAMIUS LLC 49,673 .11 $58,117 31-Mar-09
WEXFORD CAPITAL LLC 42,000 .09 $49,140 31-Mar-09

TOP MUTUAL FUND HOLDERS

 Holder Shares % Out Value* Reported
ISHARES RUSSELL 2000 INDEX FD 210,277 .45 $447,890 31-May-09
ISHARES RUSSELL 2000 VALUE INDEX
139,573 .30 $297,290 31-May-09
FD
Powershares Exhg Traded Fd-Powershares
133,650 .29 $208,494 30-Apr-09
Golden Dragon Halter
SEI INSTITUTIONAL MANAGED TR-
38,176 .08 $44,665 31-Mar-09
SMALL CAP GROWTH FUND
COLLEGE RETIREMENT EQUITIES
26,874 .06 $33,592 31-Dec-08
FUND-STOCK ACCOUNT
AIG Retirement Co I-Small Cap Index Fd 13,955 .03 $13,815 28-Feb-09
COLLEGE RETIREMENT EQUITIES
12,148 .03 $14,213 31-Mar-09
FUND-EQUITY INDEX ACCOUNT
PACIFIC SELECT FUND-SMALL CAP
11,400 .02 $13,338 31-Mar-09
INDEX PORTFOLIO
QUANTITATIVE MASTER SERIES TR-
11,000 .02 $12,870 31-Mar-09
MASTER SMALL CAP INDEX SER
NORTHERN SMALL CAP INDEX FUND 10,305 .02 $25,556 30-Jun-09

Analysts’ Estimates

Current Qtr Next Qtr Current Year Next Year

Earnings Estimate
Jun-09 Sep-09 Jun-09 Jun-10
Avg. Estimate -0.01 0.02 -0.07 0.14
No. of Analysts 1 1 1 1
Low Estimate -0.01 0.02 -0.07 0.14
High Estimate -0.01 0.02 -0.07 0.14
Year Ago EPS 0.12 0.06 0.43 -0.07

Analysts estimate earnings growth of 300% for CPSL next year.

Recent News Headlines for CPSL

[July 22nd] Motley Fool ranks CPSL as a five star stock.

[May] CPSL announced its fiscal 2009 third quarter results for the period ended March 31, 2009.

-- Revenue was $7.6 million

-- Gross loss was $2.0 million
-- Net loss of $3.5 million for fully diluted loss per share of $0.08
-- Exports represented 27.5% of total sales

"The steel industry has been severely hit by the credit crunch and global economic downturn during the past
quarter. As a result, we experienced an uncommon decrease in customers' orders which negatively impacted
our sales," said Dr. Wo Hing Li, China Precision Steel's Chairman and CEO. "We remain optimistic as we
have recently experienced some strengthening in the domestic market as the Chinese government's stimulus
package works its way through the economy. In addition, we have taken strides in broadening our customer
base, particularly by encouraging relationships with potential customers whose past orders we were
previously unable to fulfill due to limited production capacity."

CPSL Financial Statements

Income Statement PERIOD ENDING 30-Jun-08 30-Jun-07 31-Dec-05

Total Revenue 87,739 53,960 13,585
Cost of Revenue 65,242 38,926 8,868

Gross Profit 22,498 15,034 4,718

Operating Expenses
Research Development - - 218
Selling General and Administrative 3,367 2,110 4,411
Non Recurring - - -
Others 751 3,820 -

Total Operating Expenses - - -

Operating Income or Loss 18,380 9,105 88

Income from Continuing Operations

Total Other Income/Expenses Net 2,007 102 69
Earnings Before Interest And Taxes 20,386 9,207 157
Interest Expense 1,231 312 -
Income Before Tax 19,155 8,894 157
Income Tax Expense 572 1,422 63
Minority Interest - - -

Net Income From Continuing Ops 18,583 7,473 94

Non-recurring Events
Discontinued Operations - 831 -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
 Other Items - - -

Net Income 18,583 8,304 94

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares $18,583 $8,304 $94

Balance Sheet PERIOD ENDING 30-Jun-08 30-Jun-07 31-Dec-05

Assets
Current Assets
Cash And Cash Equivalents 18,569 5,588 1,834
Short Term Investments - - -
Net Receivables 71,692 20,028 1,796
Inventory 17,815 15,724 2,556
Other Current Assets 58 - 431

Total Current Assets 108,134 41,339 6,617

Long Term Investments - - -
Property Plant and Equipment 55,676 40,719 1,859
Goodwill 100 100 -
Intangible Assets 1,626 - -
Accumulated Amortization - - -
Other Assets - - -
Deferred Long Term Asset Charges - - 179

Total Assets 165,535 82,158 8,655

Liabilities
Current Liabilities
Accounts Payable 45,229 20,601 1,364
Short/Current Long Term Debt - 6,163 6
Other Current Liabilities - - 731

Total Current Liabilities 45,229 26,765 2,101

Long Term Debt - 6,879 7
Other Liabilities - (2,591) -
Deferred Long Term Liability Charges - - -
Minority Interest - - -
Negative Goodwill - - -

Total Liabilities 45,229 31,053 2,108

Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 46 37 5
Retained Earnings 35,591 17,008 5,030
Treasury Stock - - -
Capital Surplus 75,372 31,867 1,512
Other Stockholder Equity 9,296 2,192 -

Total Stockholder Equity 120,306 51,105 6,547

Net Tangible Assets $118,580 $51,005 $6,547

Cash Flow Statement PERIOD ENDING 30-Jun-08 30-Jun-07 31-Dec-05

Net Income 18,583 8,304 94

Operating Activities, Cash Flows Provided By or Used In

Depreciation 2,215 1,527 557
Adjustments To Net Income 687 3,392 115
Changes In Accounts Receivables (50,085) (5,154) (262)
Changes In Liabilities 16,480 3,971 529
Changes In Inventories (511) (9,134) 323
Changes In Other Operating Activities 25 (4) 321

Total Cash Flow From Operating Activities (12,607) 2,902 1,677

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (14,705) (9,896) (747)
Investments - - -
Other Cashflows from Investing Activities - (100) -

Total Cash Flows From Investing Activities (14,705) (9,996) (747)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid - - -
Sale Purchase of Stock 46,105 19,327 49
Net Borrowings (7,908) (7,728) (12)
Other Cash Flows from Financing Activities - - -

Total Cash Flows From Financing Activities 38,197 11,599 37

Effect Of Exchange Rate Changes 2,179 812 -

Change In Cash and Cash Equivalents $13,064 $5,318 $968

Reference

Yahoo Finance and China Analyst