Fiscal year ending June 30, 2011 compared to Fiscal year ending 2010 did show increased revenues as a result of the following: (1) trending increase in oil prices; (2) acqusition of Gujiao facility which caused the first half of FY 2010 to be much lower in sales and FY 2011 to have much higher sales; and (3) LPH relative customer makeup shifting more towards growth in sales to gas stations while at the same time a lower fraction of sales to industrial users, which made up the difference during the industrial slowdown period.
Point No. 1 demonstrated from Page 29 of the 10K for Fiscal Year Ending June 30, 2011:
As oil prices were rising, LPH profit margins were rising, & higher profit per mt. in 2011 vs 2010.
Point No. 2 demonstrated from Page 29 of the 10K for Fiscal Year Ending June 30, 2011:
From 12/30/09 through 3/31/11, Gujiao operation and sales were ramping up, leading to higher volume of sales for fiscal year ending 6/30/11 versus 6/30/10, although the trend was reduced by a 10% falloff in Taiyuan in last 2 quarters of fiscal year 2011 caused by economic slowdown.
Taiyuan volume sold-mt_____73k_____72k____75k____75k____73k_____72k____60k____61k
Gujiao volume sold -mt______0k_____10k_____33k____48k____46k_____47k____48k____42k
Total volume sold --- mt_____73k____82k____108k___123k___119k____118k___108k___104k
Point No. 3 demonstrated from Page 28 of 10K for fiscal year ending 06/30/11:
There was a falloff of industrial sales as a percent of total sales in 2011 due to the economic slowdown, but it was more than balanced by increased sales to small gas stations:
Industrial Users - Coal & Power Plants_________50%____55%
Large-Scale Gas Stations___________________34%____35%
Small, Independent Gas Stations_____________16%____10%