China Kingstone Records Robust Growth for Q3 2011

Actively expanding into northern China and establishing nationwide presence

HONG KONG, Oct. 20, 2011 /PRNewswire-Asia/ --

China Kingstone Mining Holdings Limited ("China Kingstone" or the "Company"; stock code: 1380.HK), a leading marble producer in the PRC, today announced its results for the three months ended 30 September 2011 (the "Review Period") and its significant agreements with Shanghua Real Estate Group Company Limited ("Shanghua Real Estate") and Zhengding Real Property Development Company Limited ("Zhengding Real Property") for contracts amounting to more than RMB750,000,000.

For the three months ended 30 September 2011, the Company recorded revenue of RMB152,100,000, representing a 45% increase from the first half of 2011. With the first half of 2011, profit for the period increased over 88% to RMB23,560,000. During the Review Period, the Company posted a gross profit of RMB57,740,000, with a gross profit margin of 38%. As for profit by business segment, profit from the manufacturing and selling of own-brand products amounted to RMB33,304,000, with a gross profit margin of 64%, whereas profit from the trading business amounted to RMB24,426,000, with a gross profit margin of 25%.

In September 2011, the Company entered into significant cooperation agreements with Shanghua Real Estate and Zhengding Real Property, which are two major real estate developers in Inner Mongolia Autonomous Region, the PRC, whereby the Company shall provide them with premium decorative stone materials such as beige marble, granite and limestone for their various construction projects including hotels, club houses and shopping malls etc., and the contracts so entered amounted to approximately RMB750,000,000. These two companies are well-known and well-established in Inner Mongolia. Shanghua Real Estate is a comprehensive and diversified corporation integrating the businesses of real estate development, construction and installation and property management. It has developed a number of important projects including the training centre complex of the Commercial & Industrial Bureau of Inner Mongolia Autonomous Region, Alxa Power Dispatch Building and Huimin Agricultural Trading and Logistics Multi-purpose Market of Ordos, which have an aggregate gross floor area of 830,000 sq.m. It was also awarded the credit rating of AAA by the Financial Association of Ordos in 2008. Zhengding Real Property is principally engaged in the development, sales and lease of properties. Two projects completed by Zhengding Real Property, which are Bai Xing Jia Yuan and Ding Yu Jia Yuan, have an aggregate gross floor area of over 150,000 sq.m., while another project under development, Yu Yuan, has an aggregate gross floor area of over 170,000 sq.m. Zhengding Real Property also possessed two plots of undeveloped land with a total area of over 75,000 sq.m.

As a leading marble producer in the PRC, China Kingstone has provided high-end customers with premium and diversified marble products and established a brand name of high recognition and reputation with its own competitiveness. The significant agreements with the two top real estate developers in Inner Mongolia, Shanghua Real Estate and Zhengding Real Property, not only will bring in attractive revenue and profit, but also again confirmed the Company's leading position in the industry. China Kingstone believes that such large-scale cooperation will effectively open up a huge market in the northern region of the PRC and give fresh momentum to the development of the Company and speed up the establishment of its presence across the nation.

Ms. Chen Tao, Chairlady and Chief Executive Officer of China Kingstone, said, "We are satisfied with our growth in the third quarter. We have strived to improve our performance and expand into the high-end marble market to strengthen our leading position in the industry. We also feel encouraged to collaborate with two large property developers in Inner Mongolia, and believe this is a great opportunity for us to establish nationwide presence."

About China Kingstone Mining Holdings Limited

China Kingstone is the largest marble producer in the PRC. It owns and operates the Zhangjiaba Mine, which is the largest beige marble mine in the PRC in terms of marble reserves, according to a certification issued by CSMA in August 2010, containing 44,200,000 cubic meters of measured and indicated marble resources and representing 16,800,000 million cubic meters of proved and probable marble reserves. The principal products of the Company are premium beige marble slabs and blocks. China Kingstone has been successfully listed since 18 March 2011 on the Main Board of the Stock Exchange of Hong Kong Limited.

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