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The company's Q3 report shows that though the company incurred a loss of 2.63 billion yuan in the first three quarters for joint causes of fuel price hikes and capacity expansion, its inventory at end-Q3 surged by 145.31 percent over the beginning of this year to 5.69 billion yuan. As its board pointed out, the increase derived mainly from the rise of coal inventory.
The additional coal inventory was mainly purchased at market prices.
The company buys coal mainly through contractual price and market price. The contractual price, signed annually, is much lower than the market price.
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