Wall Street Transcript Interview with Noah Education Holdings Ltd. (NED) CFO Dora Li

Wall Street Transcript

67 WALL STREET, New York - August 30, 2012 - The Wall Street Transcript has just published its Education Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Enrollment and Retention Trends - Regulatory Risks - Chinese Education Growth Catalysts - For-Profit Institutions - Online Content Distribution

Companies include: Noah Education Holdings, Ltd. (NED) and many others.

In the following excerpt from the Education Report, the Chief Financial Officer of Noah Education discusses the outlook for her company for investors:

TWST: Please introduce our readers to Noah Education with a history of the company and an overview of your business today.

Ms. Li: Noah Education initially focused on the development and marketing of electronic learning products, we call them ELP products, before entering the education services market in 2007. In light of the changing dynamics within China's ELP industry, Noah completed the sale of its ELP business and operating assets in June 2011. The sale of the ELP business allows Noah to focus exclusively on extending its track record of profitable growth within the more visible and higher-margin education services segment.

Nowadays, Noah is a leading provider of education services in China. The company focuses on three areas: kindergartens, primary and secondary schools, and supplemental education under the brands of Wentai Education, Yuanbo Education and Little New Star. Wentai Education operates and manages high-end kindergartens, primary and secondary schools; Little New Star provides English-language training for children aged three to 12 in its directly owned and franchised training centers; and Yuanbo Education operates premium kindergartens under the Qingan brand.

Noah Education was founded in 2004 and is now listed on the New York Stock Exchange under the ticker NED. That's a brief history and what we are doing right now.

TWST: You mentioned the sale of the ELP business, and the company purchased Yuanbo within the last year or so. Do these speak to how the company is changing?

Ms. Li: The ELP business, as I mentioned, the whole industry has changed dramatically since the introduction of smartphones and flat-panel computers, so that part of the business kept losing money. We decided to sell the ELP part; the sale of the ELP business heralds the start of an exciting new chapter in Noah's history, as we can now focus solely on extending our track record of profitable growth within the education services space.

China's education services market is rapidly growing, fragmented and underpenetrated, but provides a wealth of opportunities for Noah to leverage its extensive industry expertise and healthy cash balance to continue to achieve organic and acquisitive growth within this high-visibility segment, which is also seen as relatively stable with the potential for high margins.

Since the completion of the transition, we have delivered consecutively strong quarters, which highlights a successful transition from ELP business to education service. Our strong revenue growth continues to be driven by our kindergartens operations.

The purchase of Yuanbo Education is a testament to the execution of our strategy to accelerate our profitable expansion within China's education services space through selective acquisitions. As I said, Yuanbo Education's focus on the premium preschool segment market, and the successful purchase of Yuanbo, makes it an ideal complement to Wentai Education's portfolio of high-end kindergartens, primary and secondary schools, as well as Little New Star's English-language training centers that cater to the three-to-12 age group. Yuanbo Education's kindergartens are making a slow but steady incremental revenue contribution to the company's total revenue.

TWST: Do you anticipate further growth opportunities for the company, and would you expect to grow through more acquisitions, organically or both?

For more from this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers, and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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