NOAH EDUCATION HOLDINGS LTD. (ADR) 
By SHENZHEN, China, Feb. 27, 2013 /PRNewswire/ -- Noah Education Holdings Ltd. ("Noah" or the "Company") (NYSE: NED), a leading provider of education services in China, today announced its unaudited financial results for the second quarter of fiscal year ending December 31, 2012.
Second Quarter Fiscal 2013 Financial Highlights (compared to second quarter fiscal 2012)
-- Net revenue increased 39.7% year-over-year to RMB62.7 million (US$ 10.0
million)
-- Gross profit increase 43.0% year-over-year to RMB28.5 million (US$4.6
million), and gross profit margin was 45.5%
-- Operating income was RMB9.6 million (US$1.5 million) as compared to an
operating loss of RMB2.3 million
-- Net income increased 212.6% year-over-year to RMB7.1 million (US$1.1
million). Non-GAAP net income, excluding share based compensation
expenses, was RMB7.6 million (US$1.2 million), up 139.3% year-over-year
-- Basic and diluted earnings per share were RMB0.13 (US$0.02) as compared
to basic and diluted earnings per share of RMB0.03
-- Non-GAAP basic and diluted earnings per share were RMB0.14 (US$0.02) as
compared to non-GAAP basic and diluted earnings per share of RMB0.06
Second Quarter Fiscal 2013 Operational Highlights
-- Dai Dai Kang Enterprise Management Consulting Co., Ltd ("DDK
Consulting") and Xiaoxiao Kids Arts and Education Consulting Co., Ltd
("Xiaoxiao Consulting") started contributing to the Company's net
revenue this quarter
-- School network (excluding franchised schools and centers) expanded from
50 schools as of September 30, 2012 to 63 schools as of December 31,
2012.
Commenting on the results, Dong Xu, Chairman and Chief Executive Officer of Noah, said, "We are pleased to report that Noah exceeded our revenue guidance in the second quarter of the fiscal year 2013. Noah is committed to providing first-class kindergarten education services, and our offering has become appreciably enhanced following the acquisitions of DDK Consulting and Xiaoxiao Consulting."
Mr. Xu continued, "While our focus in the short-term is to achieve breakeven at operating level for the fiscal year 2013, we will continue to focus on driving the growth of the Company organically and through strategic acquisitions in the long-term, delivering long-term value to our shareholders. We will continue to ramp up utilization rate of existing schools and increase operating efficiency."
Dora Li, Chief Financial Officer, added, "While the second quarter of a fiscal year is typically a strong quarter for Noah, our revenue expansion was also boosted by the contribution of DDK Consulting and Xiaoxiao Consulting, which we acquired in October 2012. We are also glad to report that our operating costs are well under control, which has further helped the Company to achieve an operating profit this quarter."
Second Quarter of Fiscal Year 2013 Financial Results
Net revenue
Net revenue for the second quarter of fiscal 2013 increased 39.7% year-over-year to RMB62.7 million (US$10.0 million) from RMB44.9 million. The year-over-year increase was driven mainly by our organic growth and revenue from the newly acquired business of DDK Consulting and Xiaoxiao Consulting.
In terms of revenue breakdown by business lines, revenue from kindergartens increased 59.6% year-over-year to RMB35.9 million (US$5.8 million) from RMB22.5 million. Revenue from primary and secondary schools increased 23.3% year-over-year to RMB18.5 million (US$3.0 million) from RMB15.0 million. Revenue from supplemental education, which includes English training courses and the sale of teaching materials, increased 12.2% year-over-year to RMB8.3 million (US$1.3 million) from RMB7.4 million.
Services Q2FY2013 Q2FY2012
-------- -------- --------
Revenue Percentage of net revenue Revenue Percentage of net revenue
(RMB million) (RMB million)
------------ ------------
Kindergartens 35.9 57.3% 22.5 50.1%
------------- ---- ---- ---- ----
Primary and secondary schools 18.5 29.5% 15.0 33.4%
----------------------------- ---- ---- ---- ----
Supplemental education 8.3 13.2% 7.4 16.5%
---------------------- --- ---- --- ----
Total 62.7 100.0% 44.9 100.0%
----- ---- ----- ---- -----
Gross profit and gross profit margin
Gross profit for the second quarter of fiscal 2013 increased 43.0% year-over-year to RMB28.5 million (US$4.6 million) from RMB20.0 million. Gross profit margin for the second quarter of fiscal 2013 was 45.5%, compared to 44.5% in the second quarter of fiscal 2012. The modest improvement in gross profit margin was primarily due to revenue expansion, offset by an increase in staff costs and expenses associated with the ramp up of the Company's existing school network.
Operating expenses
Total operating expenses for the second quarter of fiscal 2013 were RMB24.6 million (US$3.9 million) as compared to RMB25.9 million in the second quarter of fiscal 2012, as the Company continued to make progress to improve its overall cost structure and reduce expenses in research & development, sales and marketing, as well as general and administrative expenses.
Research and development ("R&D") expenses for the second quarter of fiscal 2013 were RMB0.6 million (US$0.1 million) as compared to RMB0.8 million in the same period of fiscal 2012. As a percentage of net revenue, R&D expenses decreased to 1.0% in the second quarter of fiscal 2013 from 1.7% in the same quarter of fiscal 2012. The R&D investment is focused on the development of teaching materials.
Sales and marketing ("S&M") expenses for the second quarter were RMB1.3 million (US$0.2 million) as compared to RMB1.7 million in the same period of fiscal 2012. As a percentage of net revenue, S&M expenses decreased to 2.1% in the second quarter of fiscal 2013, compared to 3.7% in the same period of fiscal 2012.
General and administrative ("G&A") expenses for the second quarter of fiscal 2013 were RMB22.6 million (US$3.6 million) as compared to RMB23.5 million in the same period of fiscal 2012. As a percentage of net revenue, G&A expenses decreased to 36.1% in the second quarter of fiscal 2013, compared to 52.3% in the same period of fiscal 2012. The decrease in G&A expenses to net revenue continued to reflect the improvement of the Company's operational leverage with the expansion of revenue scale.
Other operating income
Other operating income for the second quarter of fiscal 2013 increased 54.1% year-over-year to RMB5.7 million (US$0.9 million) from RMB3.7 million in the second quarter of fiscal 2012. The increase was mainly due to revenue derived from training camps and interest groups.
Net operating income (loss)
Net operating income for the second quarter of fiscal 2013 was RMB9.6 million (US$1.6 million), compared to an operating loss of RMB2.3 million in the second quarter of fiscal 2012.
Non-operating income
Interest income for the second quarter of fiscal 2013 remained unchanged at RMB0.4 million (US$0.06 million), compared to the same period of fiscal 2012. Investment income for the second quarter of fiscal 2013 was RMB4.5 million (US$0.7 million), compared to RMB4.3 million in the second quarter of fiscal 2012. The Company incurred a non-operating loss for the second quarter of fiscal 2013 of RMB3.8 million (US$0.6 million), due to the recognition of a one-time impairment loss of RMB5.1 million on our investment in Franklin Electronic Publishers. In the same period of fiscal 2012, Noah reported other non-operating income of RMB1.5 million.
Income tax expenses
Income tax expenses for the second quarter of fiscal 2013 were RMB3.6 million (US$0.6 million), compared to an expense of RMB1.7 million for the same period in fiscal 2012.
Net Income
Net income for the second quarter of fiscal 2013 was RMB7.1 million (US$1.1 million), compared to a net income of RMB2.3 million in the same period of fiscal 2012. Basic and diluted earnings per share were RMB0.13 (US$0.02), compared to basic and diluted earnings per share of RMB0.03 in the second quarter of fiscal 2012.
Net income excluding share-based compensation expenses (non-GAAP) for the second quarter of fiscal 2013 was RMB7.6million (US$1.2 million), compared to non-GAAP net income of RMB3.2 million in the same period of fiscal 2012. Non-GAAP basic and diluted earnings per share for the second quarter of fiscal 2013 were RMB0.14 (US$0.02), compared to a non-GAAP basic and diluted earnings per share of RMB0.06 in the second quarter of fiscal 2012.
Liquidity
Cash and cash equivalents, and short-term investments totaled RMB486.6 million (US$78.1 million) as of December 31, 2012, compared to RMB519.3 million as of September 30, 2012. For the three months ended December 31, 2012, operating cash provided by continuing operations was RMB2.8 million (US$0.4 million).
Deferred revenue
Deferred revenue related to tuition fees and franchising fees was RMB24.2 million (US$3.9 million) as of December 31, 2012, compared to RMB51.6 million as of September 30, 2012. Deferred revenue primarily includes the tuition fees and franchising fees collected that have not yet been recognized during the quarter. It will be recognized according to the course and contract schedule.
Operational Updates
Noah operated 63 schools and kindergartens in its network at the end of the second quarter of fiscal 2013. The network includes 47 kindergartens, two of which have recently secured licenses and have already started to contribute to revenue, and 11 of which are in their respective ramp up periods.
Noah's network also includes five primary and secondary schools. One of them opened in the first quarter of fiscal 2012 and remains in its ramp up stage, with enrollment rate of 38% at end of December 31, 2012.
Noah also operates eleven directly-owned supplemental training centers.
Student enrollment totaled approximately 20,300, reflecting a year-over-year increase of about 23% due to the expansion of the network. Categorized according to business segments, more than 12,000 students are enrolled in kindergartens, while approximately 4,700 are accounted for in primary and secondary schools, and the remaining 3,600 are in directly owned supplemental training centers.
The Company plans to roll out two new kindergartens in the third quarter of fiscal 2013, and expects them to begin contributing to revenue in the third quarter of fiscal 2013.
Financial Outlook for the Third Quarter of Fiscal 2013 and Full Fiscal 2013
Based on current estimates and market conditions, for the third quarter of fiscal 2013, Noah expects to generate net revenue in the range of RMB46 million (US$7.4 million) to RMB51 million (US$8.2 million). For the full fiscal 2013, the Company maintains the revenue outlook in the range of RMB206 million (US$33.0 million) to RMB215 million (US$34.5 million). This forecast reflects Noah's current and preliminary view, which is subject to change.
Conference Call
Noah's senior management will host a conference call at 8:00 am (Eastern)/5:00 am (Pacific)/9:00 pm (China) on Thursday, February 28, 2013 to discuss its second quarter of fiscal year 2013 financial results and recent business activities. The conference call may be accessed by calling:
US +1-866-519-4004
International +65-6723-9381
China, Domestic 400-620-8038,
800-819-0121
Hong Kong 800-930-346
Please dial in 10 minutes before the scheduled starting time. An operator will answer your call and please use "Noah" as the verbal passcode to access the call. Replay of the conference call will be available from 11:00 am US Eastern Time on February 28, 2013 until March 7, 2013 by dialing the following numbers:
US +1-855-452-5696
International +61-2-8199-0299
China 400-120-0932, 800-870-0205
Hong Kong 800-963-117
Passcode 96054899
A live webcast can also be accessed through the investor relations section of the Company's website at http://ir.noaheducation.com.
Statement Regarding Unaudited Financial Information
The unaudited financial information set forth above is subject to adjustments that may be identified when audit work is performed on our year-end financial statements, which could result in significant differences from this unaudited financial information.
Currency Convenience Translation
For the convenience of readers, certain RMB amounts in the statement of operations, balance sheet and cash flow statements have been translated into US dollars at the rate of RMB6.2301, the noon buying rate for US dollars in effect on December 31, 2012 for cable transfers of RMB per US dollar as certified for customs purposes by the Federal Reserve Bank of New York.
Use of Non-GAAP Financial Measures
In addition to consolidated financial results under GAAP, the Company also provides non-GAAP financial measures, including non-GAAP net income which excludes goodwill and intangible assets impairment and non-cash share-based compensation. The Company believes that the non-GAAP financial measures provide investors with another method for assessing the Company's operating results in a manner that is focused on the performance of its ongoing operations. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of the Company's liquidity and when planning and forecasting future periods.
About Noah Education Holdings Ltd
Noah is a leading provider of education services in China. The Company's brands include Wentai Education, which operates and manages high-end kindergartens, primary and secondary schools, Little New Star, which provides English language training for children aged 3-12 in its directly owned and franchised training centers, and Yuanbo Education, which focuses on early childhood education services in the Yangtze Delta region. Noah was founded in 2004 and is listed on the New York Stock Exchange under the ticker symbol NED. For more information about Noah, please visit http://ir.noaheducation.com.
Safe Harbor Statement
This press release contains forward-looking statements that reflect Noah's current expectations and views of future events that involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Noah has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. You should understand that our actual future results may be materially different from and worse than what Noah expects. Information regarding these risks, uncertainties and other factors is included in Noah's most recent Annual Report on Form 20-F and other filings with the SEC.
Investor Contacts
Noah Education Holdings Ltd.
Email: ir@noaheducation.com
Noah Education Holdings Ltd.
Consolidated Balance Sheet
September 30 December 31
2012 2012
---- ----
Unaudited Unaudited
--------- ---------
RMB RMB USD
Assets:
Current assets
Cash and cash equivalents 115,828,355 184,575,609 29,626,428
Short term bank deposit
Investments
Held to maturity investment 403,503,441 302,003,441 48,474,895
Accounts receivables, net of allowance of doubtful debts 303,374 296,832 47,645
Related party receivables - - -
Inventories 5,212,467 5,119,933 821,806
Prepaid expenses, and other current assets 36,076,058 27,384,846 4,395,571
---------- ---------- ---------
Total current assets 560,923,695 519,380,661 83,366,345
Investments 17,586,336 16,536,812 2,654,342
Property, plant and equipment, net 191,197,685 197,208,442 31,654,137
Intangible assets, net 67,713,482 83,110,006 13,340,076
Goodwill 56,738,812 75,486,941 12,116,489
Deposit for investment 4,800,000 - -
Deposit for property, plant and equipment 1,853,152 775,675 124,504
Deferred tax assets - non-current 229,396 186,569 29,946
------- ------- ------
Total assets 901,042,558 892,685,106 143,285,839
=========== =========== ===========
Liabilities and Shareholders' equity
Current liabilities
Accounts payable (including account payables of the 1,619,059 1,499,973 240,762
consolidated variable interest entities ("VIEs") without
recourse to the Company of RMB1,493,603 and
RMB1,457,134 as of September 30, 2012 and December 31,
2012, respectively)
Other payables and accruals (including other payables, accruals 37,752,646 36,990,477 5,937,381
of the consolidated VIEs without recourse to the Company
of RMB18,589,055 and RMB13,505,027 as of September 30,
2102 and December 31, 2012, respectively)
Advances from customers (including advance from customer of 500,312 578,904 92,920
the consolidated VIEs without recourse to the Company of
RMB467,714 and RMB568,310 as of September 30, 2012
and December 31, 2012, respectively)
Income tax payable (including income tax payables of the 13,980,942 17,879,204 2,869,810
consolidated VIEs without recourse to the Company of
RMB7,134,316 and RMB8,175,506 as of September 30, 2012
and December 31, 2012, respectively)
Deferred revenue (including deferred revenues of the 50,519,090 23,262,482 3,733,886
consolidated VIEs without recourse to the Company of
RMB23,580,514 and RMB4,668,876 as of September 30,
2012 and December 31, 2012, respectively)
Contingent consideration payable - 3,395,000 544,935
--- --------- -------
Total current liabilities 104,372,049 83,606,040 13,419,694
=========== ========== ==========
Deferred revenues -- non-current 3,808,982 3,327,424 534,088
Deferred tax liabilities 6,401,129 10,219,833 1,640,396
Other liabilities 1,102,801 1,102,801 177,013
--------- --------- -------
Total non-current liabilities 11,312,912 14,650,058 2,351,497
Total liabilities 115,684,961 98,256,098 15,771,191
=========== ========== ==========
Shareholders' equity
Ordinary shares 14,841 14,841 2,382
Additional paid-in capital 1,047,292,594 1,047,772,763 168,179,124
Accumulated other comprehensive loss (123,742,109) (120,997,040) (19,421,364)
Retained earnings (207,378,519) (202,575,169) (32,515,556)
------------ ------------ -----------
Total Noah Education Holdings Ltd. shareholders' equity 716,186,807 724,215,395 116,244,586
----------- ----------- -----------
Non-controlling interests 69,170,790 70,213,613 11,270,062
---------- ---------- ----------
Total equity 785,357,597 794,429,008 127,514,648
----------- ----------- -----------
Total liabilities and shareholders' equity 901,042,558 892,685,106 143,285,839
=========== =========== ===========
Noah Education Holdings Ltd.
Consolidated Statements of Operations
Three months ended December 31 Six months ended December 31
------------------------------ ----------------------------
2011 2012 2011 2012
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
---------- ---------- ---------- ----------
RMB RMB USD RMB RMB USD
Net revenue 44,899,922 62,705,926 10,064,995 79,081,589 101,516,189 16,294,472
Cost of revenue (24,931,239) (34,160,126) (5,483,078) (42,872,013) (57,888,911) (9,291,811)
----------- ----------- ---------- ----------- ----------- ----------
Gross profit 19,968,683 28,545,800 4,581,917 36,209,576 43,627,278 7,002,661
---------- ---------- --------- ---------- ---------- ---------
Research & development expenses (777,884) (599,586) (96,240) (1,473,163) (1,183,639) (189,987)
Sales & marketing expenses (1,679,429) (1,341,370) (215,305) (3,194,695) (2,990,705) (480,041)
General & administrative expenses (23,483,124) (22,642,089) (3,634,306) (44,007,499) (44,242,239) (7,101,369)
Other expenses (7,150) (4,500) (722) (17,172) (84,290) (13,529)
------ ------ ---- ------- ------- -------
Total operating expenses (25,947,587) (24,587,545) (3,946,573) (48,692,529) (48,500,873) (7,784,926)
Other operating income 3,698,889 5,657,438 908,081 8,288,237 9,245,081 1,483,938
--------- --------- ------- --------- --------- ---------
Net operating income (loss) (2,280,015) 9,615,693 1,543,425 (4,194,716) 4,371,486 701,673
Interest income 368,133 399,007 64,045 691,435 784,817 125,972
Investment income 4,332,254 4,526,883 726,615 7,709,490 9,183,238 1,474,011
Other non-operating income(loss) 1,540,989 (3,788,733) (608,134) 3,129,828 (3,787,587) (607,950)
--------- ---------- -------- --------- ---------- --------
Income before income taxes 3,961,361 10,752,850 1,725,951 7,336,037 10,551,954 1,693,706
Income tax (expenses) (1,678,228) (3,616,676) (580,517) (3,249,183) (3,486,861) (559,680)
---------- ---------- -------- ---------- ---------- --------
Net income 2,283,133 7,136,174 1,145,435 4,086,855 7,065,093 1,134,026
less: net income attributable to non- 1,043,747 2,332,823 374,444 1,938,083 1,769,698 284,056
controlling shareholders
Net income attributable to Noah Education 1,239,386 4,803,352 770,991 5,295,395 849,970
Holdings Ltd. shareholders
Net income per share
Basic 0.03 0.13 0.02 0.06 0.14 0.02
Diluted 0.03 0.13 0.02 0.06 0.14 0.02
Weighted average ordinary shares outstanding
Basic 36,483,915 36,563,991 36,563,991 36,456,828 36,567,239 36,567,239
Diluted 36,545,812 36,605,534 36,605,534 36,557,674 36,567,239 36,567,239
Noah Education Holdings Ltd.
Reconciliation of Non-GAAP to GAAP
The Second Quarter The First Six Months
------------------ --------------------
FY 2012 FY 2013 FY 2012 FY 2013
------- ------- ------- -------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
---------- ---------- ---------- ----------
RMB % of RMB USD % of RMB % of RMB USD % of
Rev Rev Rev Rev
GAAP net revenue 44,899,922 100.0 62,705,926 10,064,995 100.0 79,081,589 100.0 101,516,189 16,294,472 100.0
GAAP gross profit 19,968,683 44.5 28,545,800 4,581,917 45.5 36,209,576 45.8 43,627,278 7,002,661 43.0
Share-based compensation - 0.0 - - 0.0 - 0.0 - - 0.0
--- --- --- --- --- --- --- --- --- ---
Non-GAAP gross profit 19,968,683 44.5 28,545,800 4,581,917 45.5 36,209,576 45.8 43,627,278 7,002,661 43.0
========== ==== ========== ========= ==== ========== ==== ========== ========= ====
GAAP operating income (loss) (2,280,015) -5.1 9,615,693 1,543,425 15.3 (4,194,716) -5.3 4,371,486 701,673 4.3
Share-based compensation 899,834 2.0 480,168 77,072 0.8 1,799,669 2.3% 960,337 154,145 0.9
------- --- ------- ------ --- --------- --- ------- ------- ---
Non-GAAP operating income (1,380,181) -3.1 10,095,862 1,620,498 16.1 (2,395,046) -3.0 5,331,823 855,817 5.3
========== ==== ========== ========= ==== ========== ==== ========= ======= ===
GAAP net income 2,283,133 5.1 7,136,174 1,145,435 11.4 4,086,855 5.2 7,065,093 1,134,026 7.0
Share-based compensation 899,834 2.0 480,168 77,072 0.8 1,799,668 2.3% 960,337 154,145 0.9
------- --- ------- ------ --- --------- --- ------- ------- ---
Non-GAAP net income 3,182,967 7.1 7,616,342 1,222,507 12.1 5,886,523 7.4 8,025,430 1,288,171 7.9
========= === ========= ========= ==== ========= === ========= ========= ===
GAAP net income per share
Basic 0.03 0.13 0.02 0.06 0.14 0.02
Diluted 0.03 0.13 0.02 0.06 0.14 0.02
Non-GAAP income per share
Basic 0.06 0.14 0.02 0.11 0.17 0.03
Diluted 0.06 0.14 0.02 0.11 0.17 0.03
Note: This reconciliation is for illustration purpose to compare GAAP and Non-GAAP performance
Noah Education Holdings Ltd.
Consolidated Cash Flow Statements
The Second Quarter The First Six Months
------------------ --------------------
FY 2012 FY 2013 FY 2012 FY 2013
------- ------- ------- -------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
RMB RMB USD RMB RMB USD
Cash flows from operating activities
Net income 2,283,133 7,136,175 1,145,435 4,086,855 7,065,092 1,134,025
Adjustments to reconcile net income
Amortization of intangible assets 1,200,120 1,503,476 241,325 2,303,603 2,605,382 418,193
Depreciation of property, plant and 5,363,681 7,310,612 1,173,434 9,848,832 13,781,716 2,212,118
equipment
Share-based compensation expense 899,834 480,169 77,072 1,799,669 960,337 154,145
Loss on disposal of fixed assets - (7,356) (1,181) - 148,632 23,857
Allowance for doubtful debts - - - - 462,288 74,202
Impairment loss on Franklin B share 302,443 5,061,576 812,439 531,220 5,163,032 828,724
investment
Change in current assets and liabilities
Accounts receivables 275,522 6,542 1,050 651,587 (8,266) (1,327)
Related party receivables 80,052 - - - - -
Inventories 145,024 92,534 14,853 798,146 331,878 53,270
Prepaid and others 26,960,825 21,160,541 3,396,501 47,275,419 4,882,849 783,751
Deferred tax asset 111,107 42,827 6,874 (17,639) 112,262 18,019
Accounts payable 489,067 (119,085) (19,114) (1,120,861) (278,595) (44,718)
Other payables and accruals (9,271,248) (5,414,236) (869,045) (6,200,812) 4,413,018 708,338
Advances from customers (366,183) 78,592 12,615 212,641 147,156 23,620
Deferred revenue (19,140,562) (38,048,966) (6,107,280) 2,054,125 (15,691,465) (2,518,654)
Income tax payable 1,615,099 3,898,262 625,714 3,957,493 3,661,419 587,698
Deferred tax liability (357,104) (406,296) (65,215) (1,014,420) (1,591,087) (255,387)
-------- -------- ------- ---------- ---------- --------
Operating cash provided (used) by 10,590,810 2,775,365 445,477 65,165,858 26,165,647 4,199,874
continuing operations
Cash flows from investing activities
Acquisition of property, plant and (5,202,585) (7,074,117) (1,135,474) (18,929,836) (20,421,278) (3,277,841)
equipment
Deposit for property, plant and - (775,675) (124,504) - (2,010,308) (322,677)
equipment
Acquisition of intangible assets (40,000) - - (40,000) - -
Acquisition of subsidiaries - (29,921,336) (4,802,705) - (29,921,336) (4,802,705)
Acquisition of Yuanbo - - - (25,907,107) (7,272,337) (1,167,291)
(Deposit) repayment for investment - 4,800,000 770,453 - - -
(Increase) decrease in held-to-maturity (190,500,000) 101,500,000 16,291,873 (227,500,000) (281,500,000) (45,183,865)
investment
Decrease (increase) in short-term fixed 25,000,000 - - 32,000,000 - -
deposits
Investing cash provided (used) by (170,742,585) 68,528,872 10,999,643 (240,376,943) (341,125,259) (54,754,379)
continuing operations
Cash flows from financing activities
Proceed from exercise of employee share 1,431,828 - - 1,572,428 - -
options
Share repurchases - - - (145,617) (51,181) (8,215)
Dividend paid to non-controlling (950,000) (1,290,000) (207,059) (950,000) (1,290,000) (207,059)
shareholders
Financing cash provided (used) by 481,828 (1,290,000) (207,059) 476,811 (1,341,181) (215,274)
continuing operations
Net increase (decrease) in cash (159,669,947) 70,014,237 11,238,060 (174,734,274) (316,300,793) (50,769,779)
Effect of exchange rate changes on cash (1,285,632) (1,266,983) (203,365) (4,059,006) (896,251) (143,858)
Cash and cash equivalent at beginning of 388,037,000 115,828,355 18,591,733 405,874,701 501,772,653 80,540,064
period
Cash and cash equivalents at end of period 227,081,421 184,575,609 29,626,428 227,081,421 184,575,609 29,626,428
=========== =========== ========== =========== =========== ==========
SOURCE Noah Education Holdings Ltd.
