NOAH EDUCATION HOLDINGS LTD. (ADR) 
By SHENZHEN, China, May 22, 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 third fiscal quarter ended March 31, 2013.
Third Quarter Fiscal 2013 Financial Highlights (compared to third quarter fiscal 2012)
-- Net revenue increased 24.6% to RMB46.4 million (US$7.5 million)
-- Gross profit decreased 0.9% to RMB17.2 million (US$2.8 million), and
gross profit margin was 37.0%
-- Operating loss was RMB4.5 million (US$0.7 million) as compared to an
operating loss of RMB1.8 million
-- Net loss was RMB0.2 million (US$0.03 million), compared to a net income
of RMB2.2 million
-- Non-GAAP net loss, excluding share based compensation expenses, was
RMB0.2 million (US$0.03 million), compared to a Non-GAAP net income of
RMB2.6 million
-- Basic and diluted earnings per share were nil as compared to basic and
diluted earnings per share of RMB0.04
-- Non-GAAP basic and diluted earnings per share were nil as compared to
non-GAAP basic and diluted earnings per share of RMB0.05
Commenting on the results, Dong Xu, Chairman and Chief Executive Officer of Noah, said, "We are pleased to report that Noah recorded another strong quarter of top line growth in a traditionally slow quarter during which the month-long Chinese New Year holidays and winter break fell. Nevertheless, our revenue increased 24.6% year-over-year, driven by contributions from our newly acquired DDK Consulting and Xiaoxiao Consulting, as well as organic growth from our existing schools and kindergartens."
Mr. Xu continued, "Looking ahead, while staff costs has increased across the education services sector, we are confident of maintaining our margins at the current level through our two-pronged strategy of growing organically and by strategic acquisitions in the longer term. We strongly believe that business sustainability and delivering consistent results are essential in creating value for our shareholders."
Dora Li, Chief Financial Officer, added, "We are optimistic in meeting our fiscal year 2013 guidance as we progress to the final quarter. The fourth quarter is traditionally one of our strongest in terms of revenue, as we anticipate a full three months of revenue recognition across all our operations. Our cash inflows from operations also provide us important financial resources for future business expansion. Last but not least, we remain on course in achieving breakeven at the operating level for fiscal year 2013."
Third Quarter of Fiscal Year 2013 Financial Results
Net revenue
Net revenue for the third quarter of fiscal 2013 increased 24.6% year-over-year to RMB46.4 million (US$7.5 million) from RMB37.3 million. The increase was attributable mainly to the newly acquired business of DDK Consulting and Xiaoxiao Consulting and organic growth of existing schools and kindergartens.
In terms of revenue breakdown by business lines, revenue from kindergartens increased 38.7% year-over-year to RMB28.3 million (US$4.5 million) from RMB20.4 million. Revenue from primary and secondary schools increased 29.9% year-over-year to RMB11.3 million (US$1.8 million) from RMB8.7 million. Revenue from supplemental education, which includes English training courses and the sale of teaching materials, decreased 17.1% year-over-year to RMB6.8 million (US$1.1 million) from RMB8.2 million.
Services 3Q FY2013 3Q FY2012
-------- --------- ---------
Revenue Percentage of Revenue Percentage of
net revenue net revenue
(RMB million) (RMB million)
------------ ------------
Kindergartens 28.3 61.0 20.4 54.7
------------- ---- ---- ---- ----
Primary and secondary schools 11.3 24.4 8.7 23.3
----------------------------- ---- ---- --- ----
Supplemental education 6.8 14.6 8.2 22.0
---------------------- --- ---- --- ----
Total 46.4 100 37.5 100
----- ---- --- ---- ---
Gross profit and gross profit margin
Gross profit for the third quarter of fiscal 2013 decreased 0.9% year-over-year to RMB17.2 million (US$2.8 million) from RMB17.3 million. Gross profit margin for the third quarter of fiscal 2013 was 37.0%, compared to 46.5% in the third quarter of fiscal 2012. The decrease in gross profit margin was primarily due to an increase in staff costs and expenses associated with the newly acquired DDK Consulting and Xiaoxiao Consulting, as well as an overall increase in the salaries of teachers in existing schools reflecting escalating staff costs generally in China's educational sector.
Operating expenses
Total operating expenses for the third quarter of fiscal 2013 were RMB25.2 million (US$4.0 million), compared to RMB23.2 million in the third quarter of fiscal 2012, primarily due to the increase in general and administrative expenses.
Research and development ("R&D") expenses for the third quarter of fiscal 2013 were RMB0.4 million (US$0.07 million), compared to RMB0.8 million in the same period of fiscal 2012. The decrease in R&D expenses was mainly due to the decrease in staff costs as result of a consolidation in R&D staffing. As a percentage of net revenue, R&D expenses decreased to 1.0% in the third quarter of fiscal 2013 from 2.1% 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 third quarter were RMB1.5 million (US$0.2 million) compared to RMB1.3 million in the same period of fiscal 2012. The increase in S&M expenses was mainly attributable to the increase in promotion expenses related to spring term enrollment in our primary and secondary school sector. As a percentage of net revenue, S&M expenses decreased to 3.1% in the third quarter of fiscal 2013, compared to 3.5% in the same period of fiscal 2012.
General and administrative ("G&A") expenses for the third quarter of fiscal 2013 were RMB23.1 million (US$3.7 million), compared to RMB21.1 million in the same period of fiscal 2012. The increase in G&A expenses was primarily attributable to incremental G&A expenses arising from the acquired business of DDK and Xiaoxiao Consulting of RMB0.9 million (US$0.1 million), and from newly opened kindergartens of RMB0.6 million (US$0.1 million). As a percentage of net revenue, G&A expenses decreased to 49.7% in the third quarter of fiscal 2013, compared to 56.6% in the same period of fiscal 2012. The decrease in G&A expenses, as a percentage of net revenue reflects the improvement of the Company's operational leverage with the expansion of revenue scale.
Other operating income
Other operating income for the third quarter of fiscal 2013 decreased 15.3% year-over-year to RMB3.5 million (US$0.6 million) from RMB4.1 million in the third quarter of fiscal 2012. The decrease was mainly due to decreased in revenue derived from training camps and interest groups.
Net operating loss
Net operating loss for the third quarter of fiscal 2013 was RMB4.5 million (US$0.7 million), compared to an operating loss of RMB1.8 million in the third quarter of fiscal 2012. The increase in operating loss for this quarter is mainly attributable to the increase in staff cost and expenses associated with the newly acquired DDK Consulting and Xiaoxiao Consulting, as well as an overall increase in the salaries of teachers in existing schools.
Non-operating income
Interest income for the third quarter of fiscal 2013 was RMB0.4 million (US$0.07 million), compared to RMB0.2 million in the same period of fiscal 2012. Investment income for the third quarter of fiscal 2013 was RMB4.6 million (US$0.7 million), compared to RMB5.5 million in the third quarter of fiscal 2012. The Company incurred a non-operating loss for the third quarter of fiscal 2013 of RMB0.5 million (US$0.07 million), due to the recognition of an impairment loss of RMB1.1 million from our investment in Franklin Electronic Publishers. In the same period of fiscal 2012, Noah reported other non-operating income of RMB0.4 million.
Income tax expenses
Income tax expenses for the third quarter of fiscal 2013 were RMB0.2 million (US$0.04 million), compared to an expense of RMB1.7 million for the same period in fiscal 2012. The decrease was mainly due to the decrease in income before tax.
Net Income/ (loss)
Net loss for the third quarter of fiscal 2013 was RMB0.2 million (US$0.03 million), compared to a net income of RMB2.2 million in the same period of fiscal 2012. Basic and diluted earnings per share were nil, compared to basic and diluted earnings per share of RMB0.04 in the third quarter of fiscal 2012.
Net loss excluding share-based compensation expenses (non-GAAP) for the third quarter of fiscal 2013 was RMB0.2million (US$0.03 million), compared to non-GAAP net income of RMB2.6 million in the same period of fiscal 2012. Non-GAAP basic and diluted earnings per share for the third quarter of fiscal 2013 were nil, compared to a non-GAAP basic and diluted earnings per share of RMB0.05 in the third quarter of fiscal 2012.
Liquidity
Cash and cash equivalents, and short-term investments totaled RMB531.1 million (US$85.5 million) as of March 31, 2013, compared to RMB486.6 million as of December 31, 2012. For the three months ended March 31, 2013, operating cash provided by continuing operations was RMB57.3 million (US$9.2 million).
Free cash flow for the quarter ended March 31, 2013 was RMB45.0 million (US$7.2 million), compared to outflow of RMB30.2 million as of December 31, 2012. Free cash flow includes operating cash flow less cash spent on capital expenditure and acquisition for the period.
Deferred revenue
Deferred revenue related to tuition fees and franchising fees was RMB60.3 million (US$9.7 million) as of March 31, 2013, compared to RMB24.2 million as of December 31, 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 65 schools and kindergartens in its network at the end of the third quarter of fiscal 2013. The network includes 49 kindergartens, two of which have recently opened in the period and have begun contributing revenue. Currently, there are 10 kindergartens 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% as of March 31, 2013.
Noah also operates 11 directly-owned supplemental training centers.
Student enrollment totaled over 21,400, reflecting a year-over-year increase of about 23% due to the expansion of the network. Categorized according to business segments, more than 12,600 students are enrolled in kindergartens, while approximately 4,900 are accounted for in primary and secondary schools, and the remaining 3,900 are in directly owned supplemental training centers.
Financial Outlook for the Fourth Quarter of Fiscal 2013 and Full Fiscal 2013
Based on current estimates and market conditions, for the fourth quarter of fiscal 2013, Noah expects to generate net revenue in the range of RMB58 million (US$9.3 million) to RMB67 million (US$10.8 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$34.6 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)/8:00 pm (China) on Thursday, May 23, 2013 to discuss its third 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 May 23, 2013 until March 30, 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 44898403
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 RMB6.2108, the noon buying rate for US dollars in effect on March 31, 2013 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
December 31 March 31
2012 2013
---- ----
Unaudited Unaudited
--------- ---------
RMB RMB USD
Assets:
Current assets
Cash and cash equivalents 184,575,609 161,356,566 25,979,997
Investments
Held to maturity investments 302,003,441 369,703,441 59,525,897
Accounts receivables, net of allowance of doubtful debts 296,832 337,131 54,281
Inventories 5,119,933 4,642,528 747,493
Prepaid expenses, and other current assets 27,384,846 26,200,693 4,218,570
---------- ---------- ---------
Total current assets 519,380,661 562,240,359 90,526,238
Investments 16,536,812 15,432,931 2,484,854
Property, plant and equipment, net 197,208,442 199,628,288 32,142,121
Intangible assets, net 83,110,006 81,752,779 13,163,003
Goodwill 75,486,941 75,486,941 12,154,141
Deposit for property, plant and equipment 775,675 2,586,916 416,519
Deferred tax assets - non-current 186,569 141,166 22,729
------- ------- ------
Total assets 892,685,106 937,269,380 150,909,605
=========== =========== ===========
Liabilities and Shareholders' equity
Current liabilities
Accounts payable (including account payables of the 1,499,973 1,358,983 218,810
consolidated variable interest entities ("VIEs") without
recourse to the Company of RMB1,457,134 and
RMB1,315,664 as of December 31, 2012 and March 31,
2013, respectively)
Other payables and accruals (including other payables, accruals 36,990,477 48,171,743 7,756,125
of the consolidated VIEs without recourse to the Company
of RMB13,505,027 and RMB21,534,003 as of December 31,
2102 and March 31, 2013, respectively)
Advances from customers (including advance from customer of 578,904 468,703 75,466
the consolidated VIEs without recourse to the Company of
RMB568,310 and RMB463,408 as of December 31, 2012 and
March 31, 2013, respectively)
Income tax payable (including income tax payables of the 17,879,204 16,839,966 2,711,400
consolidated VIEs without recourse to the Company of
RMB8,175,506 and RMB6,574,234 as of December 31, 2012
and March 31, 2013, respectively)
Deferred revenue (including deferred revenues of the 23,262,482 59,222,987 9,535,484
consolidated VIEs without recourse to the Company of
RMB4,668,876 and RMB25,256,986 as of December 31,
2012 and March 31, 2013, respectively)
Contingent consideration payable 3,395,000 3,395,000 546,628
--------- --------- -------
Total current liabilities 83,606,040 129,457,382 20,843,913
========== =========== ==========
Deferred revenues - non-current 3,327,424 3,136,747 505,047
Deferred tax liabilities 10,219,833 9,813,852 1,580,127
Other liabilities 1,102,801 1,102,801 177,563
--------- --------- -------
Total non-current liabilities 14,650,058 14,053,400 2,262,737
Total liabilities 98,256,098 143,510,782 23,106,650
========== =========== ==========
Shareholders' equity
Ordinary shares 14,841 14,841 2,390
Additional paid-in capital 1,047,772,763 1,047,772,763 168,701,739
Accumulated other comprehensive loss (120,997,040) (121,371,763) (19,542,051)
Retained earnings (202,575,169) (202,709,680) (32,638,256)
------------ ------------ -----------
Total Noah Education Holdings Ltd. shareholders' equity 724,215,395 723,706,161 116,523,822
----------- ----------- -----------
Non-controlling interests 70,213,613 70,052,437 11,279,133
---------- ---------- ----------
Total equity 794,429,008 793,758,598 127,802,955
----------- ----------- -----------
Total liabilities and shareholders' equity 892,685,106 937,269,380 150,909,605
=========== =========== ===========
Noah Education Holdings Ltd.
Consolidated Statements of Operations
Three months ended March 31 Nine months ended March 31
--------------------------- --------------------------
2012 2013 2012 2013
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
---------- ---------- ---------- ----------
RMB RMB USD RMB RMB USD
Net revenue 37,270,199 46,435,942 7,476,644 116,351,788 147,952,131 23,821,751
Cost of revenue (19,945,356) (29,263,086) (4,711,645) (62,817,369) (87,151,997) (14,032,330)
----------- ----------- ---------- ----------- ----------- -----------
Gross profit 17,324,843 17,172,856 2,764,999 53,534,419 60,800,134 9,789,421
---------- ---------- --------- ---------- ---------- ---------
Research & development expenses (783,723) (427,772) (68,876) (2,256,886) (1,611,411) (259,453)
Sales & marketing expenses (1,318,864) (1,457,516) (234,674) (4,513,559) (4,448,221) (716,207)
General & administrative expenses (21,111,395) (23,095,703) (3,718,636) (65,118,894) (67,337,942) (10,842,072)
Other expenses (16,291) (170,400) (27,436) (33,463) (254,690) (41,008)
------- -------- ------- ------- -------- -------
Total operating expenses (23,230,273) (25,151,391) (4,049,622) (71,922,802) (73,652,264) (11,858,740)
Other operating income 4,093,262 3,468,649 558,487 12,381,499 12,713,730 2,047,036
--------- --------- ------- ---------- ---------- ---------
Net operating (loss) (1,812,168) (4,509,886) (726,136) (6,006,884) (138,400) (22,283)
Interest income 239,935 424,043 68,275 931,370 1,208,860 194,638
Investment income 5,492,581 4,617,151 743,407 13,202,071 13,800,389 2,221,999
Other non-operating income(loss) (79,713) (454,217) (73,134) 3,050,115 (4,241,804) (682,972)
------- -------- ------- --------- ---------- --------
Income before income taxes 3,840,635 77,091 12,412 11,176,672 10,629,045 1,711,382
Income tax (expenses) (1,683,167) (240,361) (38,700) (4,932,350) (3,727,222) (600,119)
---------- -------- ------- ---------- ---------- --------
Net income/(loss) 2,157,468 (163,270) (26,288) 6,244,322 6,901,823 1,111,263
less: net income/(loss) attributable to non- 610,823 (28,759) (4,630) 2,548,907 1,740,939 280,308
controlling shareholders
Net income/(loss) attributable to Noah Education 1,546,645 (134,511) (21,658) 3,695,415 5,160,884 830,955
Holdings Ltd. shareholders
Net income/(loss) per share
Basic 0.04 (0.00) (0.00) 0.10 0.14 0.02
Diluted 0.04 (0.00) (0.00) 0.10 0.14 0.02
Weighted average ordinary shares outstanding
Basic 37,625,186 36,563,991 36,563,991 37,640,503 36,564,300 36,564,300
Diluted 37,718,241 36,587,482 36,587,482 37,744,299 36,564,300 36,564,300
Noah Education Holdings Ltd.
Reconciliation of Non-GAAP to GAAP
The Third Quarter The First Nine 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 37,270,199 100.0 46,435,942 7,476,644 100.0 116,351,788 100.0 147,952,131 23,821,751 100.0
GAAP gross profit 17,324,843 46.5 17,172,856 2,764,999 37.0 53,534,419 46.0 60,800,134 9,789,421 41.1
Share-based compensation 0 0.0 0 0 0.0 0 0.0 0 0 0.0
--- --- --- --- --- --- --- --- --- ---
Non-GAAP gross profit 17,324,843 46.5 17,172,856 2,764,999 37.0 53,534,419 46.0 60,800,134 9,789,421 41.1
========== ==== ========== ========= ==== ========== ==== ========== ========= ====
GAAP operating income (loss) (1,812,168) -4.9 (4,509,886) (726,136) -9.7 (6,006,884) -5.2 (138,400) (22,283) -0.1
Share-based compensation 480,169 1.3 0 0 0.0 2,279,837 2.0 960,337 154,624 0.6
------- --- --- --- --- --------- --- ------- ------- ---
Non-GAAP operating income (1,331,999) -3.6 (4,509,886) (726,136) -9.7 (3,727,047) -3.2 821,937 132,341 0.6
========== ==== ========== ======== ==== ========== ==== ======= ======= ===
GAAP net income 2,157,468 5.8 (163,270) (26,288) -0.4 6,244,322 5.4 6,901,823 1,111,263 4.7
Share-based compensation 480,169 1.3 0 0 0.0 2,279,837 2.0 960,337 154,624 0.6
------- --- --- --- --- --------- --- ------- ------- ---
Non-GAAP net income 2,637,637 7.1 (163,270) (26,288) -0.4 8,524,159 7.3 7,862,160 1,265,887 5.3
========= === ======== ======= ==== ========= === ========= ========= ===
GAAP net income per share
Basic 0.04 (0.00) (0.00) 0.10 0.14 0.02
Diluted 0.04 (0.00) (0.00) 0.10 0.14 0.02
Non-GAAP income per share
Basic 0.05 (0.00) (0.00) 0.16 0.17 0.03
Diluted 0.05 (0.00) (0.00) 0.16 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 Third Quarter The First Nine 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 2,157,468 (163,270) (26,288) 6,244,322 6,901,822 1,111,261
Adjustments to reconcile net income - - -
Amortization of intangible assets 1,200,120 1,507,227 242,678 3,503,724 4,112,609 662,171
Depreciation of property, plant and 6,084,554 6,966,269 1,121,638 15,933,387 20,747,985 3,340,630
equipment
Share-based compensation expense 480,169 - - 2,279,837 960,337 154,624
Loss on disposal of fixed assets 13,196 170,990 27,531 13,196 319,622 51,462
Allowance for doubtful debts - - - - 462,288 74,433
Impairment loss on Franklin B share 50,534 1,103,881 177,736 581,574 6,266,913 1,009,035
investment
Changes in fair value of call option 520,000 - - 520,000 - -
Change in current assets and liabilities
Accounts receivables (25,125) (40,299) (6,489) 626,462 (48,565) (7,819)
Related party receivables (27,304) - - (27,304) - -
Inventories (73,356) 477,405 76,867 724,791 809,283 130,303
Prepaid and others (7,119,661) 1,959,827 315,551 40,838,781 6,842,676 1,101,738
Deferred tax asset 112,557 45,403 7,310 94,919 157,665 25,386
Accounts payable 342,604 (140,991) (22,701) (778,258) (419,586) (67,557)
Other payables and accruals 3,117,659 11,181,267 1,800,294 (3,083,153) 15,594,285 2,510,834
Advances from customers (226,479) (110,201) (17,743) (13,838) 36,955 5,950
Deferred revenue 20,072,400 35,769,828 5,759,295 22,126,525 20,078,363 3,232,814
Income tax payable 486,767 (1,039,238) (167,328) 4,444,260 2,622,181 422,197
Deferred tax liability (396,556) (405,981) (65,367) (1,410,976) (1,997,068) (321,548)
-------- -------- ------- ---------- ---------- --------
Operating cash provided (used) by 26,769,547 57,282,117 9,222,984 92,618,249 83,447,765 13,435,914
continuing operations
Cash flows from investing activities
Acquisition of property, plant and (3,592,817) (9,557,105) (1,538,788) (23,332,652) (29,978,383) (4,826,815)
equipment
Prepayment for property, plant and (1,377,784) (2,586,915) (416,519) (2,060,807) (4,597,223) (740,198)
equipment
Acquisition of intangible assets - (150,000) (24,151) (40,000) (150,000) (24,151)
Acquisition of Kindergartens - - - - (29,921,337) (4,817,630)
Acquisition of Yuanbo - - - (25,097,107) (7,272,337) (1,170,918)
(Increase) decrease in held-to-maturity (78,300,000) (67,700,000) (10,900,367) (305,800,000) (349,200,000) (56,224,641)
investment
Decrease (increase) in short-term fixed - - - 32,000,000 - -
deposits
---
Investing cash provided (used) by (83,270,601) (79,994,020) (12,879,825) (324,330,566) (421,119,280) (67,804,353)
continuing operations
Cash flows from financing activities
Proceed from exercise of employee share - - - 1,572,428 - -
options
Share repurchases - - - (145,617) (51,181) (8,241)
Dividend paid to non-controlling - (132,417) (21,320) (950,000) (1,422,417) (229,023)
shareholders
---
Financing cash provided (used) by - (132,417) (21,320) 476,811 (1,473,598) (237,264)
continuing operations
---
Effect of exchange rate changes on cash (154,850) (374,723) (60,334) (4,213,678) (1,270,974) (204,642)
Net increase (decrease) in cash (56,501,054) (22,844,320) (3,678,161) (231,235,506) (339,145,113) (54,605,703)
Cash and cash equivalent at beginning of 227,081,421 184,575,609 29,718,492 405,874,701 501,772,653 80,790,342
period
Cash and cash equivalents at end of period 170,425,517 161,356,566 25,979,997 170,425,517 161,356,566 25,979,997
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SOURCE Noah Education Holdings Ltd.
