I would now like to turn the conference over to Noah's CFO, Ms. Dora Li. Ms. Li, please go ahead.
Thank you for joining us today on our first quarter fiscal year 2012 earnings conference call. I hope you all have had a chance to read our earnings press release. We are very pleased to report that Noah started the fiscal year 2012 with a strong quarter and accomplished a number of key milestones as guided.
First, revenue, up 74% year-over-year, reached the upper end of our guidance. Second, we executed the expansion plan to open five schools and kindergartens in the quarter. Third, net income turned positive.Turning to the detailed financial results for the first quarter of fiscal year 2012. As they are available in our earnings release, I would like to highlight a few key financial metrics with you. All numbers will be in RMB unless otherwise stated. Net revenue for the quarter was up 74% year-over-year. The strong growth was mainly driven by the contribution from Wentai Education, the stable growth of Little New Star, and addition of Yuanbo Education which only started contributing to the top line in August. For the quarter, Wentai accounted for 47% of net revenue, Little New Star accounted for 41%, and Yuanbo 12%. You can imagine that the ratio will be somewhat different going forward when Yuanbo started to have contribution for the whole quarter. Gross profit was up 38% year-over-year and the gross margin was 48% compared to 60% during the first quarter of fiscal year 2011. The decline in margin was due to a couple of reasons. First, we added five new schools in Wentai Education, Little New Star, and Yuanbo Education. And second, five out of 17 Yuanbo kindergartens are currently in ramp-up stage with less than two years of operating history.