In the news release, "Noah Education Announces Unaudited Fourth
Quarter and Full Fiscal Year 2009 Financial Results," issued on
Aug. 24 by Noah Education Holdings Ltd. (NYSE: NED) over PR
Newswire Asia, the company advises that due to a conversion error,
the "June 30, 2009 Unaudited USD" figures in the table titled
"Consolidated Balance Sheet" were incorrect. The full, correct
release follows. SHENZHEN, China, Aug. 31 /PRNewswire-Asia/ -- Noah
Education Holdings Ltd. (NYSE:NED) ("Noah" or "the Company"), a
leading provider of supplemental education products and services in
China, today announced its unaudited financial results for the
fourth quarter and full fiscal year ended June 30, 2009. Fourth
Quarter Fiscal 2009 Financial Highlights -- Net revenue for the
quarter increased by 21.6% to RMB119.1 million (US$17.4 million),
compared with RMB97.9 million in the fourth quarter of fiscal 2008,
exceeding the Company's previously stated guidance of RMB114
million to RMB116 million -- Gross profit increased by 22.9% to
RMB61.5 million (US$9.0 million), representing a gross margin of
51.6%, compared with gross profit of RMB50.0 million, or a gross
margin of 51.1%, in the fourth quarter of fiscal 2008 -- Operating
income increased to RMB9.8 million (US$1.4 million), compared with
a loss of RMB2.3 million in the fourth quarter of fiscal 2008 --
Net income decreased by 41.1% to RMB17.9 million (US$2.6 million),
compared with RMB30.5 million in the fourth quarter of fiscal 2008,
as the 2008 figure included a RMB18.4 million foreign exchange gain
-- Earnings per share was RMB0.50 (US$0.07) basic and diluted,
compared with RMB0.82 basic and RMB0.71 diluted for the fourth
quarter of fiscal 2008. Non-GAAP earnings per share, excluding
share-based compensation expense and the change in the fair value
of warrants was RMB0.57 (US$0.08) basic and diluted, compared with
RMB0.79 basic and RMB0.77 diluted, for the fourth quarter of fiscal
2008 Full Fiscal Year 2009 Financial Highlights -- Net revenue for
the full year 2009 increased by 2.9% to RMB671.1 million (US$98.3
million), compared with RMB651.9 million in fiscal 2008 -- Gross
profit increased by 3.5% to RMB344.7 million (US$50.5 million),
representing a gross margin of 51.4%, compared with gross profit of
RMB333.1 million, or a gross margin of 51.1%, in fiscal 2008 --
Operating income decreased to RMB64.7 million (US$9.5 million),
compared with RMB79.8 million in fiscal 2008 -- Net income
decreased by 32.7% to RMB97.0 million (US$14.2 million), compared
with RMB144.2 million in fiscal 2008, as the 2008 figure included a
RMB41.6 million foreign exchange gain -- Earnings per share was
RMB2.66 (US$0.39) basic and RMB2.64 (US$0.39) diluted, compared
with RMB4.03 basic and RMB3.93 diluted in fiscal 2008. Non-GAAP
earnings per share, excluding share-based compensation expense and
the change in the fair value of warrants was RMB2.73 (US$0.40)
basic and RMB2.71 (US$0.40) diluted share, compared with RMB4.77
basic and RMB4.57 diluted share in fiscal 2008 Mr. Dong Xu, Noah's
chairman and chief executive officer, said, "We are pleased to
report solid year-over-year increases in revenue for both the
fourth quarter and full fiscal year 2009, as we exceeded previously
stated guidance for the fourth quarter. Our margin performance is
evidence of our ability to execute our growth strategy while also
keeping a vigilant eye on costs. We continue to improve the
efficiency of our distribution channels, and we will consistently
monitor our operations to uncover new ways to streamline our
operations while maintaining strong revenue performance. Our ELP
business demonstrated steady growth, as we sustained our market
leadership in the DLD space. Noah's KLD products continued to be
the key growth driver in this segment. Introduced just a year ago,
these products have gained significant traction as customers
clearly recognize that our industry-leading content helps children
succeed in a highly competitive educational environment. "The
recent acquisition of Little New Star represents an important first
step for Noah in entering the fast-growing kids' English training
market. We are progressing well with the integration, with most of
the administrative functions fully operational under the Noah
umbrella. We can now begin to leverage cross-selling and marketing
opportunities to drive organic growth. "This is an important entry
point which will enable us to expand our presence in the kids'
education service market. Our solid financial position will allow
us to take advantage of additional acquisition opportunities to
further expand our presence in this space, while simultaneously
strengthening our content and the diversity of our delivery
platforms. Our goal is to improve and expand our service lineup,
leveraging our extensive sales and distribution network to drive us
toward becoming a more comprehensive education service provider.
"We recently made a very important addition to our management team
with the appointment of Jerry He as Executive Vice President. Jerry
will work closely with me to advance our strategic expansion and
create efficiencies in the business. He brings a wealth of
consulting and financial management experience to the table, and I
have great confidence that he will play an integral role in driving
these initiatives. Ultimately, by executing our strategy and more
efficiently deploying our resources, we aim to yield greater
returns on our investments and further enhance shareholder value,"
Xu concluded. Fourth Quarter and Fiscal Year 2009 Unaudited
Financial Results Net Revenue. Net revenue for the fourth quarter
of fiscal 2009 was RMB119.1 million (US$17.4 million), exceeding
the Company's guidance of RMB114 million to RMB116 million. This
represented an increase of 21.6% compared with net revenue of
RMB97.9 million for the fourth quarter of fiscal 2008. For the
fiscal year 2009, net revenue was RMB671.1 million (US$98.3
million), increased 2.9% from RMB651.9 million in fiscal year 2008.
The following tables provide a breakdown of sales volume and net
revenue for DLD, KLD and E-dictionary for the fourth fiscal quarter
and full year 2009, respectively. Volume Net Revenue (RMB '000) Q4
09 Q4 08 Inc/(Dec) Q4 09 Q4 08 Inc/(Dec) DLD 72,965 78,713 (7.3%)
53,646 75,968 (29.4%) KLD 69,968 -- -- 32,954 -- -- E-dictionary
159,092 105,579 50.7% 31,616 19,292 63.9% Volume Net Revenue (RMB
'000) FY09 FY08 Inc/(Dec) FY09 FY08 Inc/(Dec) DLD 506,017 589,016
(14.1%) 380,129 515,314 (26.2%) KLD 376,324 -- -- 156,422 -- --
E-dictionary 720,119 630,241 14.3% 128,185 129,643 (1.1%) Cost of
revenue. Cost of revenue for the fourth quarter of fiscal 2009 was
RMB57.6 million (US$8.4 million), representing an increase of 20.3%
from RMB47.9 million in the fourth quarter 2008. For fiscal year
2009, cost of revenue was RMB326.4 million (US$47.8 million), up
2.4% from RMB318.8 million in fiscal 2008. The increase in costs
was proportionate to the increase in revenue, maintaining cost as a
percentage of revenue at approximately 48.4% in the fourth quarter
of fiscal 2009 and 48.6% in fiscal 2009. Gross Profit and Gross
Margin. Gross profit in the fourth quarter of fiscal 2009 was
RMB61.5million (US$9.0 million), representing a year-over-year
increase of 22.9%. Gross margin for the fourth quarter was 51.6%,
slightly up from 51.1% in the fourth quarter 2008. Gross profit for
fiscal year 2009 increased slightly to RMB344.7 million (US$50.5
million), from RMB333.1 million in fiscal 2008. The gross margin
for fiscal year 2009 was 51.4% as compared with 51.1% in 2008,
consistent with Company's guidance of maintaining a gross margin
above 50%. Operating Expenses. Total operating expenses for the
fourth quarter of fiscal 2009 were RMB61.4 million (US$9.0
million), representing a decrease of 2.5% from RMB63.0 million in
the fourth quarter 2008. Total operating expenses for fiscal 2009
were RMB325.7 million (US$47.7 million), representing an increase
of 9.5% from RMB297.5million in fiscal year 2008 as the Company
expanded its R&D efforts in content development and software
applications, increased its national sales and distribution
realignment efforts in conjunction with new product launches and
incurred additional professional expenses related to the Company's
status as a US- listed public company. Research and development
expenses for the fourth quarter of fiscal 2009 were RMB12.4 million
(US$1.8 million), representing 15.8% decrease from RMB14.7 million
in the fourth quarter of fiscal 2008. The year-over-year decrease
was primarily due to lower costs associated with 3rd party software
and content development. For fiscal 2009, the research and
development expenses were RMB55.3 million (US$8.1 million),
representing a slight increase of 5.0% from RMB52.7 million in
fiscal 2008. Sales and marketing expenses for the fourth quarter of
fiscal 2009 were RMB34.5 million (US$5.1 million), up 10.9% year
over year from RMB31.1million. This was primarily due to
advertising and promotion efforts in connection with the rollout of
one new KLD model. However, as a percentage of total net revenue,
sales and marketing expenses decreased by 2.8 percentage points to
29% from 31.8%. For fiscal year 2009, sales and marketing expenses
were RMB210.7 million (US$30.8 million), up 6.7% from RMB197.4
million in the previous fiscal year. General and administrative
expenses for the fourth quarter of fiscal 2009 were RMB14.6 million
(US$2.1 million), up 10.9% from RMB13.1 million in the fourth
quarter of fiscal 2008. The increase in general and administrative
expenses was mainly due to higher costs related to share based
compensation, as well as depreciation expenses in connection with
the newly purchased office building in Chengdu to accommodate the
continued expansion of Noah's business. For fiscal year 2009,
general and administrative expenses were RMB59.5 million (US$8.7
million), up 34.5% from RMB44.3 million in fiscal 2008. The
additional expenses included an increase of RMB4.7 million (US$0.7
million) in staff compensation costs, RMB1.3 million (US$0.2
million) in share based expenses, and RMB11.8 million (US$1.73
million) in legal, consulting, and other professional service fees
related to the Company's status as a US-listed public company.
Income from Operations. Operating income for the fourth quarter of
fiscal 2009 increased to RMB9.8 million (US$1.4 million),
representing an operating margin of 8.2%, compared to an operating
loss of RMB2.3 million and operating margin of -2.4% in the fourth
quarter of fiscal 2008. For the fiscal year ended June 30, 2009,
operating income was RMB64.7 million (US$9.5 million), representing
an operating margin of 9.6%, as compared to RMB79.8 million, or an
operating margin of 12.2% in the previous fiscal year. Other
Income, net. Interest income was RMB2.5 million (US$0.4 million) in
the fourth quarter of fiscal 2009, compared to a loss of RMB1.1
million in fourth quarter of fiscal 2008. Investment income was
RMB3.5 million (US$0.5 million) in the fourth quarter of fiscal
2009, compared with RMB11.1 million in year-ago quarter. Other
non-operating income was RMB1.9 million (US$0.3 million) in the
fourth quarter of fiscal 2009, compared with RMB18.8 million in the
fourth quarter of fiscal 2008. The 2008 figure included an RMB18.4
million foreign exchange gain. Because a warrant issued to a
pre-IPO shareholder expired in April 2009, the Company did not
record any derivative gain or loss in the fourth quarter of fiscal
2009, whereas in the year ago quarter, Noah recorded a derivative
gain of RMB3.4 million. For fiscal year 2009, interest income was
RMB5.3 million (US$0.8 million), compared with RMB13.6 million in
fiscal 2008. Investment income was RMB15.3 million (US$2.2 million)
in fiscal 2009 compared with RMB11.1 million in fiscal 2008. Other
non-operating income was RMB6.2 million (US$0.9 million) in fiscal
2009, compared with RMB42.7 million in fiscal 2008. The 2008 figure
includes an RMB41.6 million foreign exchange gain. Net Income. The
Company reported net income of RMB17.9 million (US$2.6 million), or
RMB0.50 (US$0.07) per basic and diluted share, respectively, for
the fourth quarter of fiscal 2009. This compares with net income of
RMB30.5 million, or RMB0.82 per basic and RMB0.71 per diluted share
for the fourth quarter of fiscal 2008. Net income excluding
share-based compensation expenses and the change in the fair value
of warrants (non-GAAP) for the fourth quarter ended June 30, 2009
was RMB20.4 million (US$3.0 million), or RMB0.57 (US$0.08) per
basic and diluted share, respectively. Net income for the fiscal
year ended June 30, 2009 was RMB97.0 million (US$14.2 million), a
32.7% decrease from RMB144.2 million in the fiscal year ended June
30, 2008. For fiscal year 2009, basic and diluted earnings per
share amounted to RMB2.66 (US$0.39) and RMB2.64 (US$0.39),
respectively, compared to RMB4.03 and RMB3.93 per basic and diluted
share, respectively for fiscal year 2008. Basic and diluted
earnings per share, excluding share-based compensation expenses and
the change in the fair value of warrants, (non-GAAP) were RMB2.73
(US$0.40) and RMB2.71 (US$0.40), respectively, compared to RMB4.77
and RMB4.57 per basic and diluted share, respectively, for fiscal
2008. Liquidity. As of June 30, 2009, Noah had cash, cash
equivalents, short- term bank deposits and short-term investments
of RMB776.1 million (US$113.6 million). This compares with cash,
cash equivalents and short-term investments of RMB841.7 million as
of March 31, 2009. Business and Operational Highlights Since its
inception, Noah has aimed to consistently optimize its product mix
to drive continually improving financial performance. The Company
also places importance on investing its product pipeline, and
focusing on content development to enhance the Company's
competitive niche in the ELP business. Kid Learning Device (KLD)
products. KLD product sales remained strong despite the sequential
impact of seasonality in Q4 versus Q3. KLDs are the Company's key
growth driver in the ELP segment. Noah maintains a clear
competitive advantage in the KLD space due to its superior,
industry-leading content. Digital Learning Device (DLD) products.
Noah remains China's industry leader in terms of both DLD sales and
volume. DLD products remain the largest contributor to total
revenue, at 45% in Q4. E-dictionaries. In general, demand for
Noah's e-dictionaries remains stable. Noah received a one-time,
large order of approximately RMB11.6 million (US$1.7 million) for
its high-end e-dictionary products from an overseas customer in Q4.
The Company is currently focused on renegotiating and renewing
existing contracts. Kids' Education Service: Integration of Little
New Star. The integration of Little New Star (LNS) is on track,
with most of the administrative functions fully integrated with
Noah's, such as finance, accounting, human resources and sales and
marketing. The Company also completed the design and manufacture of
the first batch of LNS brand Electronic Teaching Devices (ETDs),
which can be used in and out of classrooms for enhanced interactive
learning. LNS will begin to introduce these devices in their 10
self-owned schools and 600 franchised schools in September 2009. An
integration team has been set up to focus on the following primary
areas: -- Maximizing cross-selling opportunities between Noah and
LNS, leveraging Noah's existing sales and marketing capabilities to
promoting the LNS brand; -- Evaluating and improving the current
franchise model; -- Establishing operational metrics to track
performance and student enrollment; and -- Joining R&D forces
on content development, software applications and product
development to enhance the overall LNS learning experience.
After-School Educational Services. Noah is focused on improving
profitability in this segment of the business, and began the
process of discontinuing the operation of some unprofitable
Tutoring Centers in July 2009. As of July 31, 2009, there are two
Tutoring Centers remaining, one in Chengdu and one in Chongqing.
After school education services will eventually be consolidated
under a broader kids' education segment as this business line
continues to develop. Content Development. The total number of
courseware titles at the end fiscal 2009 increased 10.5% to
approximately 47,500, compared with 43,000 as of December 31, 2008.
Noah continues to make progress in expanding the quantity and the
variety of courseware titles available for different age groups.
Executive Appointment Appointment of Jerry He as Executive Vice
President. Mr. Jerry He was appointed Executive Vice President of
Noah Education, effective July 21, 2009. Mr. He will play a key
role in driving the Company's strategic expansion into a full
service education services provider. Mr. He is responsible for
strategic planning, business development, accounting and finance
and investor relations. He brings over nine years of financial
industry and business development experience to his role at Noah.
He was most recently a portfolio manager at Morgan Stanley and Bear
Stearns. Before his career in the financial industry, Mr. He worked
as a management consultant, and has substantial market research
experience. He is also a CFA charter holder. Share Repurchase
Program Noah has completed its $10 million Share Repurchase Plan
initiated in June 2008. At this time, the Company does not intend
to buy back any more shares. Financial Outlook for First Quarter of
Fiscal Year 2010 Based on current estimates and market conditions,
Noah expects to generate net revenue in the range of RMB231 million
to RMB237 million for the first quarter of fiscal 2010, which
includes RMB220 million to RMB224 million in net revenue from ELP
business and approximately RMB11 million to RMB13 million from LNS,
representing an overall increase of 14% to 17% compared to the
prior-year quarter. This forecast reflects Noah's current and
preliminary view, which is subject to change. Beginning in the
first quarter of fiscal 2010, the Company intends to give guidance
on both revenue and operating profit for the next sequential
quarter and current fiscal year. 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 have been translated
into US dollars at the rate of RMB6.8302 to US$1.00, the noon
buying rate for US dollars in effect on June 30, 2009 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 non-cash share-based
compensation and change in fair value of warrants. 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 Noah Education
Holdings Limited is a leading provider of supplemental education
products and services in China. Noah's core offering includes the
development and marketing of electronic learning products (ELPs),
interactive educational courseware content, software, kids' English
training and after- school education services. Noah combines
standardized education content with innovative digital and
multimedia technologies to create a dynamic learning experience and
improve academic performance for students throughout China. Noah
has developed a nationwide sales network, powerful brand image, and
accessible and diverse delivery platforms to bring its innovative
content to the growing student population. Noah also provides kids'
English training service under the brand Little New Star in its
direct-owned schools and more than 600 franchise schools throughout
China. 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://www.noahedu.com.cn/ . 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. Noah Education Holdings
Ltd. Consolidated Statements of Operations Three months ended June
30 2008 2009 2009 (Unaudited) (Unaudited) (Unaudited) RMB RMB USD
Net revenue 97,942,806 119,130,742 17,441,765 Cost of revenue
(47,896,921) (57,624,581) (8,436,734) Gross profit 50,045,885
61,506,160 9,005,031 Research & development expenses
(14,687,562) (12,360,530) (1,809,688) Sales & marketing
expenses (31,106,269) (34,504,340) (5,051,732) General and
administrative expenses (13,133,090) (14,564,968) (2,132,437) Other
expenses (4,075,984) (15,907) (2,329) Total operating expenses
(63,002,905) (61,445,745) (8,996,185) Other operating income
10,628,918 9,735,007 1,425,289 Operating income (2,328,102)
9,795,422 1,434,134 Derivative gain (loss) 3,370,448 -- -- Interest
income (1,075,438) 2,502,650 366,409 Investment income 11,057,176
3,546,450 519,231 Other Non-Operating income 18,772,573 1,925,187
281,864 Income before income taxes 29,796,657 17,769,708 2,601,638
Provision for income taxes 654,654 178,095 26,075 Net income
30,451,311 17,947,803 2,627,713 Deemed dividend -- -- -- Net income
attributable to ordinary shareholders 30,451,311 17,947,803
2,627,713 Net income per share Basic 0.82 0.50 0.07 Diluted 0.71
0.50 0.07 Weighted average ordinary shares outstanding Basic
38,198,045 35,693,062 Diluted 39,172,558 35,947,165 Twelve months
ended June 30 2008 2009 2009 (Audited) (Unaudited) (Unaudited) RMB
RMB USD Net revenue 651,934,602 671,145,679 98,261,497 Cost of
revenue (318,787,904) (326,400,700) (47,787,869) Gross profit
333,146,698 344,744,978 50,473,629 Research & development
expenses (52,666,685) (55,286,625) (8,094,437) Sales &
marketing expenses (197,430,136) (210,692,883) (30,847,249) General
and administrative expenses (44,259,888) (59,514,101) (8,713,376)
Other expenses (3,131,763) (158,466) (23,201) Total operating
expenses (297,488,472) (325,652,074) (47,678,263) Other operating
income 44,100,827 45,575,781 6,672,686 Operating income 79,759,053
64,668,685 9,468,051 Derivative gain (loss) (1,868,238) 5,807,511
850,269 Interest income 13,643,761 5,307,899 777,122 Investment
income 11,057,176 15,257,413 2,233,816 Other Non-Operating income
42,708,114 6,203,622 908,264 Income before income taxes 145,299,866
97,245,130 14,237,523 Provision for income taxes (1,101,395)
(254,883) (37,317) Net income 144,198,471 96,990,247 14,200,206
Deemed dividend (379,092) -- -- Net income attributable to ordinary
shareholders 143,819,379 96,990,247 14,200,206 Net income per share
Basic 4.03 2.66 0.39 Diluted 3.93 2.64 0.39 Weighted average
ordinary shares outstanding Basic 33,153,982 36,446,787 Diluted
34,056,315 36,709,140 Noah Education Holdings Ltd. Consolidated
Balance Sheet June 30, March 31, June 30, 2008 2009 2009 2009
Audited Unaudited Unaudited Unaudited RMB RMB RMB USD Assets:
Current assets Cash and cash equivalents 260,222,860 835,814,763
494,111,466 72,342,167 Short-term bank deposit 0 0 274,000,000
40,115,956 Short-term investment 759,875,217 5,873,142 7,978,942
1,168,186 Accounts receivables, net of allowance 171,727,724
193,640,600 181,653,128 26,595,580 Related party receivables
706,088 627,838 627,626 91,890 Inventories 84,893,471 106,604,184
151,872,803 22,235,484 Prepaid expenses, deferred tax assets and
other current assets 58,005,597 48,377,213 87,621,579 12,828,552
Deferred tax asset 2,154,472 1,796,797 2,071,387 303,269 Total
current assets 1,337,585,429 1,192,734,538 1,199,936,931
175,681,083 Property, plant and equipment, net 17,871,691
117,001,074 119,619,947 17,513,389 Intangible assets, net 6,504,214
4,913,557 4,461,760 653,240 Deposit for long-term investment
910,000 3,000,000 3,000,000 439,226 Total assets 1,362,871,334
1,317,649,170 1,327,018,638 194,286,937 Liabilities and
Shareholders' Equity Current liabilities Accounts payable
34,827,252 86,552,682 82,560,888 12,087,624 Other payables,
accruals 22,444,789 49,167,623 45,809,823 6,706,952 Advances from
customers 2,825,530 2,241,107 3,308,173 484,345 Income taxes
payable 815,911 436,409 499,471 73,127 Deferred revenues 11,194,641
8,798,503 7,746,063 1,134,090 Dividend payable 0 0 0 0 Total
current liabilities 72,108,123 147,196,323 139,924,418 20,486,138
Warrants 5,830,023 0 0 0 Total liabilities 77,938,146 147,196,323
139,924,418 20,486,138 Shareholders' Equity Ordinary shares 15,349
14,546 14,504 2,123 Additional paid- in capital 1,169,618,982
1,116,722,662 1,115,993,259 163,391,007 Accumulated other
comprehensive loss (89,949,455) (93,055,456) (93,632,439)
(13,708,594) Retained earnings 205,248,312 146,771,093 164,718,897
24,116,263 Total shareholders' equity 1,284,933,188, 1,170,452,846
1,187,094,220 173,800,799 Total liabilities and shareholders'
equity 1,362,871,334 1,317,649,170 1,327,018,638 194,286,937 Noah
Education Holdings Ltd. Reconciliation of Non-GAAP to GAAP Three
months ended June 30 2008 2009 (Unaudited) (Unaudited) RMB % of Rev
RMB USD % of Rev GAAP net revenue 97,942,806 100.0% 119,130,742
17,441,765 100.0% GAAP gross profit 50,045,885 51.1% 61,506,160
9,005,031 51.6% Share-based compensation 63,941 0.1% 83,553 12,233
0.1% Non-GAAP gross profit 50,109,826 51.2% 61,589,714 9,017,264
51.7% GAAP operating income (2,328,102) -2.4% 9,795,422 1,434,134
8.2% Share-based compensation 2,466,615 2.5% 2,472,762 362,034 2.1%
Non-GAAP operating income 138,514 0.1% 12,268,183 1,796,167 10.3%
GAAP net income 30,451,311 31.1% 17,947,803 2,627,713 15.1%
Share-based compensation 2,466,615 2.5% 2,472,762 362,034 2.1%
Change in the fair value of warrants (3,370,448) -3.4% 0 0 0.0%
Non-GAAP net income 29,547,478 30.2% 20,420,565 2,989,746 17.1%
GAAP net income per share Basic 0.82 0.50 0.07 Diluted 0.71 0.50
0.07 Non-GAAP net income per share Basic 0.79 0.57 0.08 Diluted
0.77 0.57 0.08 Twelve months ended June 30 2008 2009 (Audited)
(Unaudited) RMB % of Rev RMB USD % of Rev GAAP net revenue
651,934,604 100.0% 671,145,679 98,261,497 100.0% GAAP gross profit
333,151,340 51.1% 344,744,978 50,473,629 51.4% Share-based
compensation 228,400 0.0% 240,079 35,150 0.0% Non-GAAP gross profit
333,379,740 51.1% 344,985,057 50,508,778 51.4% GAAP operating
income 79,759,053 12.2% 64,668,685 9,468,051 9.6% Share-based
compensation 20,344,641 3.1% 8,173,462 1,196,665 1.2% Non-GAAP
operating income 100,103,694 15.4% 72,842,147 10,664,717 10.9% GAAP
net income 144,198,471 22.1% 96,990,247 14,200,206 14.5%
Share-based compensation 20,344,641 3.1% 8,173,462 1,196,665 1.2%
Change in the fair value of warrants 1,868,238 0.3% (5,807,511)
(850,269) -0.9% Non-GAAP net income 166,411,351 25.5% 99,356,199
14,546,602 14.8% GAAP net income per share Basic 4.03 2.66 0.39
Diluted 3.93 2.64 0.39 Non-GAAP net income per share Basic 4.77
2.73 0.40 Diluted 4.57 2.71 0.40 For further information, please
contact: Investor Contact: Noah Education Holdings Ltd. Jerry He
Executive Vice President Tel: +86-755-8204-9263 Email: Investor
Relations (US): Taylor Rafferty Jessica McCormick Tel:
+1-212-889-4350 Email: Investor Relations (HK): Taylor Rafferty
Ruby Yim Tel: +852-3196-3712 Email: DATASOURCE: Noah Education
Holdings Ltd. CONTACT: Noah Education Holdings Ltd., Jerry He,
Executive Vice President, +86-755-8204-9263, or Taylor Rafferty,
Jessica McCormick, +1-212-889-4350, and Ruby Yim, +852-3196-3712, ,
both for Noah Education Holdings Ltd. Web site:
http://ir.noahedu.com.cn/ http://www.noahedu.com.cn/
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