Profiting on Coal in China: L&L International Is RedChip Top Performer
2009 has been an eventful year for L&L International Holdings (OTCBB: LLFH), a company engaged in China’s coal industry through its subsidiaries, L&L Coal and Kunming Coal. In the first half of the year, L&L reported continued revenue growth; completion of a new coal-washing facility; operational expansions; an application for an NYSE-Amex listing; and, most recently, a new acting CFO, Ms. Rosemary Wang.
Third quarter net income reached $2.03 million, representing a 211% increase as compared to the same quarter of 2008. This growth in net income is attributable to increased sales of coal at its operations in China. China’s energy needs are vast, and Chinese demand for coal is outstripping supply in the fast-growing nation.
Revenues were up 79% to approximately $17.3 million for the nine months ended January 31, 2009, and net income was up 580% to approximately $7.4 million, year-over-year. Since April 2009, L&L’s stock has appreciated 243%, moving from $0.97 to $3.40 at market close on June 10, 2009. With a talented multilingual management team, L&L is fast-becoming a leader among coal companies in the Yunnan Province and demonstrating consistent growth and profitability.
L&L’s also recently announced the completion of a coal-washing factory with an annual capacity of 300,000 tons at its DaPuAn Coal Mine in Yunnan Province, China. Coal washing removes unwanted minerals and purifies coal before it is burned. Commenting on the company’s new facility, CEO Dickson Lee stated: “We are working closely with Chung Yuan Christian University in Taiwan (CYCU) for research and implementation of new energy technologies, adding green elements to L&L operations.” L&L has allied with the university in order to develop clean coal and expand its green energy operations.
In other news, L&L announced its application for a NYSE-Amex listing. L&L’s stock has been trading on the OTC Bulletin Board since August 2008 (under the ticker “LLFH”) with increasing volumes and has recently been trading over $2.00. Dickson Lee cited the company’s continued growth, increasing sales, new independent board members and the stock’s increasing trading price and volumes as reasons for the application.
Yet another boost for the company: L&L was approved for listing in Mergent Manuals and News Reports as of May 26, 2009. L&L’s corporate profile (pdf), which includes descriptive text data as well as news and financial statements, is accessible via Mergent’s online and print products at www.Mergent.com.











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