I believe it is mostly due to the fact that LLEN is not increasing coal mining but coal washing ... coal washing is a much lower margin business .... you have a smaller value added component in the revenues stream.
LLEN needs to buy and consolidate more mines, otherwise will significantly grow from now on only if coal prices will keep growing ..... in any case, in next two quarters LLEN will benefit from coal price surge.
Based on current production capacity though LLEN does not have same PUDA potential (assuming Puda well/honestly managed).
Chem. as revenue increases, you expect cost of materials to increase likewise; except the relationship of the last 4 qtrs. has been variable. You would think this would be a direct ratio for each qtr., in this case it is not. I tend to think revenues are not tendered or posted from consumer in a timely manner, late payments.
there is no explanation available in foot notes to explain the disportionate doubling of revenue cost during the last reported 3 months. This causes concern with me. LLEN needs to be more open with extraordinary changes in line item reporting.
I noticed the same issue. My simple explanation is that while revenues went up about 50% expenses went up about 110% to upgrade acquired property to safer standards and increase production. Just my best guess.