DDK Consulting and Xiaoxiao Education operated in the Zhejiang province around the Yangtze River Delta. DDK Consulting currently operates four kindergartens and one early childhood learning center and has a total enrollment of 1200. It’s total consideration is RMB 14.5 million.
Xiaoxiao education is focused on operating kindergartens and children’s art and music training centers. It currently operates six kindergartens and one children’s art and music training centre and has a total enrollment of 1300. The total consideration of the acquisition is RMB 33.56 million[Foreign Language] Both transactions will be funded by our own cash reserves subject to customary closing conditions including regulatory approval. We expect revenue contributions from both acquisitions to come in the second quarter of fiscal 2013.[Foreign Language]Looking ahead, kindergarten will remain our focus area as we expect our top line to grow as the [ramp up] of kindergarten operations continue with utilization rate and operational efficiency is expected to improve further, we are confident that our gross margin will be sustainable at around 45% and operations will stay profitable as demonstrated in the previous quarter. Our prudent business model is well aligned with the growth opportunity in the education space which enables us to generate a steady cash flow [throughput] our organic and acquisitive growth initiatives going into 2013.[Foreign Language] Dora Li, our CFO will now walk through our financial and operational performance as well as the guidance for the next quarter. Dora LiThank you Mr. Xu. As the details of financial results for the fourth quarter and full fiscal 2012 are available in our earnings release, I would like to highlight a few key financial metrics and a focus on year-over-year comparison for the fourth quarter and the full fiscal 2012 with all numbers in RMB unless otherwise stated.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV