China GengSheng Minerals, Inc. Announces Revenues of $10 Million and Net Income of $1.6 Million for the Second Quarter Ended June 30, 2007

China GengSheng Minerals, Inc. Announces Revenues of $10 Million and Net Income of $1.6 Million for the Second Quarter Ended June 30, 2007

August 15, 2007

    GONGYI, China, Aug. 15 /Xinhua-PRNewswire/ -- China
GengSheng Minerals, Inc. ("CGM" or the Company)
(OTC Bulletin Board: CHGS) announced financial results for
the three-month period ended on June 30, 2007.

    Quarter to Quarter Comparison

    For the three-month period ended on June 30, 2007, the
Company reported revenues of $10 million, an increase of
46.4 % compared to $6.8 million reported for the same
period last year. Gross profit for the three months ended
June 30, 2007 was $3.9 million, or 38.7% of net revenues,
compared to gross profit of $2.7 million, or 40.1% of net
revenues for the same period last year. Total operating
expenses were $1.9 million for the three-month period ended
on June 30, 2007, or 19.3% of net revenues, compared to $1.6
million in total operating expenses, or 23.7% of net
revenues for the same period last year. Net income for the
three-month period ended on June 30, 2007 was $1.6 million,
or 15.6% of net revenues, compared to $1.1 million, or 16.2%
of net revenues for the same period last year.

    Six Month to Six Month Comparison

    For the six-month period ended on June 30, 2007, the
Company reported revenues of $18.5 million, an increase of
56.2% compared to $11.9 million reported for the same
period last year. Gross profit for the six months ended
June 30, 2007 was $7.2 million, or 39% of net revenues,
compared to gross profit of $4.7 million, or 39.2% of net
revenues for the same period last year. Total operating
expenses were $3.8 million for the six-month period ended
on June 30, 2007, or 20.3% of net revenues, compared to
$2.7 million in total operating expenses, or 23% of net
revenues for the same period last year. Net income for the
six-month period ended on June 30, 2007 was $2.8 million,
or 15.2% of net revenues, compared to $1.9 million, or
15.7% of net revenues for the same period last year.

    Balance Sheet Items

    The Company had $7.2 million in unrestricted cash and
cash equivalents as of June 30, 2007, compared to $0.4
million on December 31, 2006. Working capital as of June
30, 2007 was $22.7 million compared to $11.5 on December
31, 2006.

    The Company

    CGM is a mineral-based manufacturer whose products
include monolithic refractories, industrial ceramics and
fracture proppant. Monolithic refractories serve as heat
resistant protective linings in industrial furnaces and
other heavy machinery used in the steel, iron, cement,
glass and aluminum industries. Ceramic products are heat
and erosion resistant which are used to house high voltage
switches and fuses and to transfer liquids, solids and
gases. Fracture proppant is used in operating oil wells to
release trapped oil allowing it to be extracted to the
earth's surface. CGM conducts business through Gengsheng
International Corporation and its Chinese subsidiaries:
Henan Gengsheng Refractories Co., Ltd., ZhengZhou Duesail
Fracture Proppant Co., Ltd. and Henan Gengsheng
High-Temperature Materials Co., Ltd. 

    FORWARD LOOKING STATEMENTS

    This release may contain certain "forward-looking
statements" relating to the business of China
GengSheng Minerals, Inc. and its subsidiary companies.
These forward looking statements are often identified by
the use of forward- looking terminology such as
"believes, expects" or similar expressions. Such
forward looking statements involve known and unknown risks
and uncertainties that may cause actual results to be
materially different from those described herein as
anticipated, believed, estimated or expected. You should
not place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release. The Company's actual results could differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including
those discussed in the Company's periodic reports that are
filed with the Securities and Exchange Commission and
available on its website (www.sec.gov). All forward-looking
statements attributable to China GengSheng Minerals, Inc. or
to persons acting on its behalf are expressly qualified in
their entirety by these factors other than as required
under the securities laws. China GengSheng Minerals, Inc.
does not assume a duty to update these forward-looking
statements.

    CONTACT:  Mr. Denis Tontodonato
    [phone]
    China GengSheng Minerals, Inc.
    Henan Province
    People's Republic of China