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Noah Education Announces Unaudited Third Quarter Fiscal 2010 Financial Results
May 12, 2010 (04:05 PM EDT)


Revenue increased by 18.3% over same quarter fiscal 2009

Operating income increased by 12.8% over same quarter fiscal 2009

SHENZHEN, China, May 12 /PRNewswire-Asia-FirstCall/ -- Noah Education Holdings Ltd. (NYSE: NED) ("Noah" or "the Company"), a leading provider of interactive educational content and education services in China, today announced its unaudited financial results for the fiscal quarter ended March 31, 2010.

    Third Quarter Fiscal 2010 Financial Highlights
    -- Net revenue for the quarter increased 18.3% to RMB253.7 million
       (US$37.2 million), compared to RMB214.5 million in the third quarter of
       fiscal 2009
    -- Gross profit rose 9.5% to RMB124.3 million (US$18.2 million),
       representing a gross margin of 49.0%, compared to gross profit of
       RMB113.5 million, or a gross margin of 52.9%, in the third quarter of
       fiscal 2009
    -- Operating income increased 12.8% to RMB32.9 million (US$4.8 million),
       compared to RMB29.2 million in the third quarter of fiscal 2009
    -- Net income rose 4.9% to RMB36.0 million (US$5.3 million), compared to
       RMB34.4 million in the third quarter of fiscal 2009
    -- Basic and diluted earnings per share were RMB0.94 (US$0.14) and RMB0.92
       (US$0.13), respectively, representing a 2.1% and 3.2% decrease,
       respectively, compared to basic and diluted earnings per share of
       RMB0.96 and RMB0.95, respectively, for the third quarter of fiscal 2009.
       Non-GAAP basic and diluted earnings per share, excluding share-based
       compensation expense and the change in the fair value of warrants
       (non-GAAP), were RMB1.00 (US$0.15) and RMB0.98 (US$0.14), respectively,
       representing a 9.9% and 7.7% increase, respectively, compared to
       non-GAAP basic and diluted earnings per share of RMB0.91 for the third
       quarter of fiscal 2009


    New Share Repurchase Program
    -- On May 12, 2010, the Company's Board of Directors authorized a share
       repurchase program. Under the plan, Noah may purchase up to
       US$10 million of ADSs over the course of the next 12 months, as
       permitted under the open trading window. This program reflects Noah's
       confidence in its long-term growth prospects and its belief that its
       ADSs are undervalued at current levels.

Commenting on the results, Mr. Xu Dong, Noah's Chairman and Chief Executive Officer, said, "We delivered a healthy performance in third quarter of fiscal 2010, as net revenues increased 18.3% over same quarter fiscal 2009 to RMB253.7 million and net income climbed 4.9% to RMB36 million. Although our results fell short of our initial expectations, attributable to slower-than-anticipated growth in China's Electronic Learning Products ("ELP") industry, we were nevertheless encouraged by the growth exhibited in both our ELP and education services segments.

"Within the ELP business, we continued to capitalize on the increasing demand in a nascent market and more than doubled our sales of Kid Learning Device ("KLD") products, which helped offset a decline in Digital Learning Device ("DLD") revenue contribution. ELP revenue growth also outpaced volume growth, a testimony to the success of our new, higher-priced devices that we have introduced to the market in recent quarters. Going forward, we will continue to develop our customer-focused, integrated R&D and marketing approach. Within this strategy, we plan to concentrate our efforts on the development of new devices featuring the design, functionality and content that appeal to selected market segments. During the third fiscal quarter, we also completed our strategic investment in Franklin, which has already begun to contribute to our original design manufacturing ("ODM") revenue, and will further strengthen our development capabilities going forward.

"In addition to our focus on maintaining growth in our ELP business, we remain committed to accelerating acquisitive growth within China's education services space. During the quarter, Little New Star ("LNS") continued to perform well, expanding to 724 franchised schools and reaching the top end of our revenue guidance. In March, we further executed on our strategy to acquire complementary education companies with the acquisition of Wentai Education. This deal, which remains on track to close by June 1, 2010, will extend Noah's offering of high-quality educational services and provide Wentai Education with the necessary funding to expand its number of schools in operation and accelerate growth. We are excited to forge this new relationship with Wentai Education, as we believe its business model and growth potential will help generate a strong return on our investment. We view education services as our main growth driver going forward, and will continue to actively pursue accretive acquisitions within this segment.

"Overall, we are pleased with our progress to date, and are confident in our ability to drive growth both organically and via additional acquisitions going forward. As evidence of this optimism, we announced today a share repurchase program for up to US$10 million of ADSs. I firmly believe that our comprehensive strategy, coupled with our strong market position, proven execution ability and solid balance sheet, provides us with the tools necessary to expand our business and deliver long-term shareholder value."

Third Quarter Fiscal Year 2010 Unaudited Financial Results

Net Revenue. Net revenue was RMB253.7 million (US$37.2 million) in the third quarter of fiscal 2010, compared to guidance of RMB282 million to RMB293 million announced in February 2010. This represents an increase of 18.3%, from RMB214.5 million for the third quarter of fiscal 2009. Net revenue from Noah's traditional ELP business was RMB243.0 million (US$35.6 million), compared to the Company's previously issued guidance of RMB273 million to RMB282 million, representing an increase of 13.3% from the same period last fiscal year. Net revenue from the LNS business was RMB10.7 million (US$1.6 million), against the Company's guidance of RMB9 to RMB11 million.

The following tables provide a breakdown of sales volume and revenue for the third fiscal quarter of 2010 for Noah's traditional ELP business:

                             Volume                  Net Revenue (RMB 'MM)
    Noah            Q3 '10   Q3 '09   Inc/(Dec)    Q3 '10   Q3 '09   Inc/(Dec)
    DLD            118,017  160,169    (26.3)%      87.3    119.6    (27.0)%
    KLD            238,517  139,574     70.9 %     118.4     59.0    100.7%
    E-dictionary   164,292  183,317    (10.4)%      37.1     35.2      5.4%
    Others              --       --       --         0.2      0.7    (71.4)%
    Total          520,826  483,060      7.8%      243.0    214.5     13.3%

Cost of revenue. Cost of revenue increased 28.2% from the same quarter last fiscal year to RMB129.4 million (US$19.0 million) in the third quarter of fiscal 2010.

Gross Profit and Gross Margin. Gross profit was RMB124.3 million (US$18.2 million) for the third quarter of fiscal 2010, representing a gross margin of 49.0%. This compares with gross profit of RMB113.5 million and a gross margin of 52.9% in the third quarter of fiscal 2009, reflecting the shift in product mix which is becoming more heavily weighted towards KLD products.

Operating Expenses. Total operating expenses for the third quarter of fiscal 2010 were RMB108.9 million (US$16.0 million), representing an increase of 13.6% from the same quarter last fiscal year. Operating expenses for the third quarter of fiscal 2010 represented 42.9% of net revenue for the quarter, compared to 44.7% of net revenue in the same quarter of fiscal 2009.

Research & development expenses (R&D) for the third quarter of fiscal 2010 were RMB13.5 million (US$2.0 million), representing an increase of 19.6% from the same quarter last fiscal year. The increase reflects the Company's focus on strengthening its content development capabilities.

Sales & marketing expenses for the third quarter of fiscal 2010 were RMB73.2 million (US$10.7 million), representing an increase of 12.2% from the same quarter last fiscal year. This was primarily due to an increase in sales and marketing initiatives associated with new product launches during the period.

General & administrative expenses (G&A) for the third quarter of fiscal 2010 rose 13.8% to RMB22.0 million (US$3.2 million) compared with the same quarter last fiscal year. This increase was mainly due to expenses resulting from the expansion of LNS that were not present in the third fiscal quarter of 2009, as well as an increase in stock option expenses.

Operating Income. Operating income for the third quarter of fiscal 2010 increased 12.8% from the same quarter last fiscal year to RMB32.9 million (US$4.8 million), representing an operating margin of 13.0%, compared to operating income of RMB29.2 million and an operating margin of 13.6% in the third quarter of fiscal 2009.

Non-operating Income, net. There was no derivative gain during the quarter, compared to a RMB2.76 million derivative gain in the same quarter of fiscal 2009. Interest income was RMB2.2 million (US$0.3 million) in the third quarter of fiscal 2010, compared to RMB1.0 million in the third quarter of fiscal 2009. Investment income was RMB0.3 million (US$0.04 million) in the third quarter of fiscal 2010, compared to RMB1.2 million in the third quarter of fiscal 2009. Other non-operating income was RMB0.6 million (US$0.09 million) in the third quarter of fiscal 2010, compared to RMB0.4 million in the third quarter of fiscal 2009.

Net Income. Net income was RMB36.0 million (US$5.3 million) for the third quarter of fiscal 2010. Basic earnings per share and diluted earnings per share were RMB0.94 (US$0.14) and RMB0.92 (US$0.13), respectively, for the third quarter of fiscal 2010. This compares with net income of RMB34.4 million for the third quarter of fiscal 2009, and basic and diluted earnings per share of RMB0.96 and RMB0.95, respectively.

Net income excluding share-based compensation expenses (non-GAAP) for the third quarter ended March 31, 2010 was RMB38.6 million (US$5.6 million), or RMB1.00 (US$0.15) and RMB0.98 (US$0.14) per basic and diluted share, respectively, compared to non-GAAP basic and diluted earnings per share of RMB0.91 for the third quarter of fiscal 2009.

Liquidity. As of March 31, 2010, Noah had cash and cash equivalents, short-term bank deposits and short-term investments of RMB714.0 million (US$104.6 million). This compares with cash and cash equivalents, short-term bank deposits and short-term investments of RMB800.3 million as of December 31, 2009.

    Third Quarter Operational Highlights

    Electronic Learning Products.
    -- Kid Learning Device products. The launch of a new higher-end model in
       the quarter helped drive strong growth in KLD products, which led to a
       100.7% rise in revenue and higher average selling prices. This launch
       furthered Noah's strategy to expand its product range in order to
       strategically target potential customers across various spending
       segments.
    -- Digital Learning Device products. Approximately 37.7% of revenue from
       DLD products was derived from the new low-end DLD, as well as a student
       notebook targeting the higher-end segment, which launched in the third
       fiscal quarter. To help stabilize DLD revenue levels going forward, the
       Company will employ a heavily customer-focused development approach in
       order to introduce products that are aligned with the preferences of
       its target customer base.
    -- E-dictionaries. The ODM business, supported by the Company's
       partnership with Franklin Electronic Publishers, was a leading
       contributor to the 5% increase in net revenue from E-dictionaries in
       the quarter. The Company will maintain its dual strategy to achieve a
       stable revenue flow from the ODM business and from the launch of
       higher-end models in the domestic market.

Education Services. LNS added one direct owned school and 24 franchise schools in the third fiscal quarter of 2010. Noah plans to continue to grow the LNS school network by further expanding the number of franchised schools. The Dudu Happy Reading (DHR) program is progressing well, and will be rolled out to more kindergartens in the coming quarters.

Acquisition of Wentai Education. In March 2010, Noah furthered its strategic objective of acquisitive growth as it entered into a definitive agreement to purchase a 70% interest in Shenzhen Wentai Education Industry Development Co., Ltd ("Wentai Education"), a company focused on early childhood, primary and secondary education services in China, for a total consideration of RMB126 million. The deal will be funded by the Company's current cash reserve. Wentai Education operates and manages six kindergartens and four primary schools in China's Guangdong Province, with a total enrollment of more than 5,000 students, and focuses on providing top-quality education, academic excellence and challenging coursework. The deal, which will provide Wentai Education with capital for accelerated expansion, offers synergistic opportunities with LNS and serves as a platform for Noah to test its content and devices, is on track to be completed by June 1, 2010.

Completion of Strategic Acquisition Franklin Electronic Publishers. In February 2010, Noah completed its strategic investment to acquire an approximately 21% interest on a diluted basis in Franklin Electronic Publishers. In the third fiscal quarter, this investment contributed to a gain in other comprehensive income as well as an increase in revenue within Noah's ODM business. The partnership will afford Noah access to Franklin's extensive distribution channels, and Noah will also gain exclusive sponsorship of Franklin's Global SpellEvent in China. Additionally, the relationship will serve as a platform for R&D collaboration.

Financial Outlook for Fourth Quarter of Fiscal Year 2010

Based on current estimates and market conditions, Noah expects to generate net revenue in the range of RMB129 million (US$18.9 million) to RMB135 million (US$19.8 million) for the fourth quarter of fiscal 2010, which includes RMB121 million to RMB126 million from the traditional ELP business and RMB8 million to RMB9 million from the LNS business. Basic earnings per share in the fourth quarter of fiscal 2010 is expected to be in the range of RMB0.10 (US$0.02) to RMB0.17 (US$0.03).

The Company updates its guidance for the full fiscal year 2010, with net revenue in the range of RMB776 million (US$113.7 million) to RMB782 million (US$114.5 million), which includes RMB738 million to RMB743 million from the traditional ELP business and RMB38 million to RMB39 million from the Little New Star business. Basic net income per share is expected to be in the range of RMB2.43 (US$0.36) to RMB2.50 (US$0.37). This revised forecast reflects the Company's visibility into current demand for ELP products in China as well as a potential modest one-time impact from a realignment of certain distributors in the fourth fiscal quarter of 2010.

This forecast reflects Noah's current and preliminary view, which is subject to change.

Conference Call

Noah has scheduled an investor conference call at 5.00 a.m. (Pacific) / 8.00 a.m. (Eastern) / 8.00 p.m. (Beijing/Hong Kong) on May 13, 2010 to discuss its third quarter fiscal 2010 financial results and recent business activities. Individuals interested in participating in the call may do so by dialing:

                      Toll Free                            Toll
    United States     1-866-362-5158                       1-617-597-5397
    China  -- South   China Telecom 10-800-130-0399
                      China Netcom  10-800-852-1490
           -- North   China Telecom 10-800-152-1490
    Hong Kong         800-96-3844
    International                                          1-617-597-5397
    Passcode          "Noah Education" or "Noah" or "NED"

Please dial in 10 minutes before the call is scheduled to begin.

A telephone replay will be available shortly after the call until May 20, 2010 by dialing the following numbers:

                          Toll Free                        Toll
    United States         1-888-286-8010                   1-617-801-6888
    International Dial In                                  1-617-801-6888
    Passcode              92333307

A live webcast of the conference call and replay will be available on the investor relations page of Noah's website at http://ir.noahedu.com.cn .

Currency Convenience Translation

For the convenience of readers, certain RMB amounts have been translated into US dollars at the rate of RMB6.8258 to US$1.00, the noon buying rate for US dollars in effect on March 31, 2010 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 interactive educational content and education services in China. Noah's core offering includes the development and marketing of interactive educational courseware content, electronic learning products (ELPs), 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 kids in China aged 3-19. Noah has developed a nationwide sales network, powerful brand image, and accessible and diverse delivery platforms to bring its innovative content to the student population. Noah also provides kids' English training service under the brand Little New Star in its direct-owned schools and approximately 724 franchise schools throughout China. Noah was founded in 2004 and is listed on the New York Stock Exchange under the ticker symbol NED.

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.

    For further information, please contact:

    Investor Contact:
     Jerry He
     CFO and Executive Vice President
     Noah Education Holdings Ltd
     Tel:   +86-755-8204-9263
     Email: jerry.he@noahedu.com

    Investor Relations (US):
     Kelly Gawlik
     Taylor Rafferty
     Tel:   +1-212-889-4350
     Email: noahedu@taylor-rafferty.com

    Investor Relations (HK):
     Ruby Yim
     Taylor Rafferty
     Tel:   +852-3196-3712
     Email: noahedu@taylor-rafferty.com



                           Noah Education Holdings Ltd.
                      Consolidated Statements of Operations

                                         Three months ended March 31,
                                          2009                2010
                                      (Unaudited)          (Unaudited)
                                          RMB           RMB           USD
    Net revenue                        214,477,955   253,679,453   37,164,794
    Cost of revenue                   (100,961,711) (129,390,751) (18,956,130)
    Gross profit                       113,516,244   124,288,702   18,208,664
    Research & development expenses    (11,263,478)  (13,471,274)  (1,973,582)
    Sales & marketing expenses         (65,244,595)  (73,181,981) (10,721,378)
    General and administrative
     expenses                          (19,341,783)  (22,013,079)  (3,224,982)
    Other expenses                          (4,500)     (206,077)     (30,191)
    Total operating expenses           (95,854,356) (108,872,411) (15,950,133)

    Other operating income              11,515,005    17,493,213    2,562,808
    Operating income                    29,176,893    32,909,504    4,821,339
    Derivative gain (loss)               2,755,004             0            0
    Interest income                      1,006,210     2,191,777      321,102
    Investment income                    1,245,040       298,046       43,665
    Other Non-Operating income             359,137       583,487       85,483
    Income before income taxes          34,542,284    35,982,814    5,271,589
    Income tax (expenses) credit          (165,889)       66,712        9,774
    Net income                          34,376,395    36,049,526    5,281,363

    Net income per share
    Basic                                     0.96          0.94         0.14
    Diluted                                   0.95          0.92         0.13

    Weighted average ordinary shares
     outstanding
    Basic                               35,802,726    38,420,502   38,420,502
    Diluted                             35,999,768    39,162,596   39,162,596


                                            Nine Month Ended March 31,
                                          2009                2010
                                      (Unaudited)          (Unaudited)
                                          RMB           RMB           USD
    Net revenue                        552,014,937   646,765,604   94,753,084
    Cost of revenue                   (268,776,119) (331,450,472) (48,558,480)
    Gross profit                       283,238,818   315,315,132   46,194,604
    Research & development expenses    (42,926,095)  (39,813,513)  (5,832,798)
    Sales & marketing expenses        (176,188,542) (182,640,520) (26,757,379)
    General and administrative
     expenses                          (44,949,133)  (56,217,898)  (8,236,089)
    Other expenses                        (142,559)     (576,778)     (84,499)
    Total operating expenses          (264,206,329) (279,248,709) (40,910,765)

    Other operating income              35,840,774    39,449,599    5,779,484
    Operating income                    54,873,263    75,516,022   11,063,323
    Derivative gain (loss)               5,807,511             0            0
    Interest income                      2,805,250     7,714,381    1,130,180
    Investment income                   11,710,962     1,916,671      280,798
    Other Non-Operating income           4,278,436     1,708,723      250,333
    Income before income taxes          79,475,422    86,855,797   12,724,634
    Income tax (expenses) credit          (432,978)    2,358,498      345,527
    Net income                          79,042,444    89,214,295   13,070,161

    Net income per share
    Basic                                     2.15          2.33         0.34
    Diluted                                   2.13          2.28         0.33

    Weighted average ordinary shares
     outstanding
    Basic                               36,697,112    38,223,281   38,223,281
    Diluted                             37,114,312    39,127,490   39,127,490



                           Noah Education Holdings Ltd.
                            Consolidated Balance Sheet
                                     December 31,            March 31,
                                        2009                   2010
                                      Unaudited             Unaudited
                                         RMB            RMB           USD
    Assets:
    Current assets
    Cash and cash equivalents         563,459,955    688,254,341  100,831,308
    Short-tem deposit                 230,865,142     20,000,000    2,930,059
    Investments                         5,941,055      5,780,288      846,829
    Accounts receivables, net of
     allowance                        222,084,226    374,271,537   54,831,893
    Related party receivables             646,470        506,326       74,178
    Inventories                       127,151,408    109,161,307   15,992,456
    Prepaid expenses, and other
     current assets                    68,798,085     54,194,572    7,939,666
    Deferred tax asset - current          407,273      1,037,683      152,024
    Total current assets            1,219,353,614  1,253,206,054  183,598,413
    Property, plant and equipment,
     net                              138,457,403    141,786,674   20,772,169
    Intangible assets, net             27,745,511     29,422,149    4,310,432
    Goodwill                           56,597,146     56,597,146    8,291,650
    Deferred tax asset                  2,058,180      2,058,180      301,529
    Investments in available for
     sale securities                            0     30,310,572    4,440,589
    Total assets                    1,444,211,854  1,513,380,775  221,714,782
    Liabilities and Shareholders'
     Equity
    Current liabilities
    Accounts payable                   55,214,031     88,266,756   12,931,342
    Other payables, accruals           74,813,907     79,252,952   11,610,793
    Advances from customers             4,502,316      7,969,776    1,167,596
    Income taxes payable                  442,477        829,413      121,511
    Deferred revenues                   3,094,554      5,616,191      822,789
    Total current liabilities         138,067,285    181,935,088   26,654,031
    Consideration payable              10,000,000              0            0
    Deferred revenues                   6,624,024      6,536,626      957,635
    Deferred tax liabilities            2,459,870      2,352,672      344,673
    Total non-current liabilities      19,083,894      8,889,298    1,302,308
    Total liabilities                 157,151,179    190,824,386   27,956,339
    Shareholders' Equity
    Ordinary shares                        15,534         15,433        2,261
    Additional paid-in capital      1,076,978,689  1,066,821,907  156,292,582
    Accumulated other comprehensive
     loss                             (94,032,450)   (94,259,242) (13,809,259)
    Accumulated unrealized holding
     gains for investments                      0      9,829,871    1,440,104
    Retained earnings                 304,098,902    340,148,420   49,832,755
    Total shareholders' equity      1,287,060,675  1,322,556,389  193,758,443
    Total liabilities and
     shareholders' equity           1,444,211,854  1,513,380,775  221,714,782




                          Noah Education Holdings Ltd.
                        Reconciliation of Non-GAAP to GAAP

                                     Three months ended March 31,
                                   2009                      2010
                               (Unaudited)               (Unaudited)
                             RMB     % of Rev     RMB         USD     % of Rev

    GAAP net revenue     214,477,955  100.0%  253,679,453  37,164,794  100.0%

    GAAP gross profit    113,516,244   52.9%  124,288,702  18,208,664   49.0%
    Share-based
     compensation             33,717    0.0%       76,361      11,187    0.0%
    Non-GAAP gross
     profit              113,549,961   52.9%  124,365,063  18,219,851   49.0%

    GAAP operating
     income               29,176,892   13.6%   32,909,504   4,821,339   13.0%
    Share-based
     compensation          1,097,105    0.5%    2,515,755     368,566    1.0%
    Non-GAAP operating
     income               30,273,997   14.1%   35,425,259   5,189,905   14.0%

    GAAP net income       34,376,395   16.0%   36,049,526   5,281,363   14.2%
    Share-based
     compensation          1,097,105    0.5%    2,515,755     368,566    1.0%
    Change in the fair
     value of warrants    (2,755,004)  -1.3%            0           0    0.0%
    Non-GAAP net income   32,718,496   15.3%   38,565,281   5,649,929   15.2%

    GAAP net income per
     share
    Basic                       0.96                 0.94        0.14
    Diluted                     0.95                 0.92        0.13

    Non-GAAP net income
     per share
    Basic                       0.91                 1.00        0.15
    Diluted                     0.91                 0.98        0.14


                                      Nine months ended March 31
                                   2009                      2010
                                (Unaudited)               (Unaudited)
                             RMB     % of Rev     RMB         USD     % of Rev

    GAAP net revenue     552,014,937  100.0%  646,765,604  94,753,084  100.0%

    GAAP gross profit    283,238,818   51.3%  315,315,132  46,194,604   48.8%
    Share-based
     compensation            156,526    0.0%      219,579      32,169    0.0%
    Non-GAAP gross
     profit              283,395,344   51.3%  315,534,711  46,226,773   48.8%

    GAAP operating
     income               54,873,263    9.9%   75,516,022  11,063,322   11.7%
    Share-based
     compensation          5,700,700    1.0%    7,871,356   1,153,177    1.2%
    Non-GAAP operating
     income               60,573,963   11.0%   83,387,378  12,216,499   12.9%

    GAAP net income       79,042,444   14.3%   89,214,295  13,070,160   13.8%
    Share-based
     compensation          5,700,700    1.0%    7,871,356   1,153,177    1.2%
    Change in the fair
     value of warrants    (5,807,511)  -1.1%            0           0    0.0%
    Non-GAAP net income   78,935,633   14.3%   97,085,651  14,223,337   15.0%

    GAAP net income per
     share
    Basic                       2.15                 2.33        0.34
    Diluted                     2.13                 2.28        0.33

    Non-GAAP net income
     per share
    Basic                       2.15                 2.54        0.37
    Diluted                     2.13                 2.48        0.36

SOURCE Noah Education Holdings Limited