SHANGHAI, Nov. 23, 2021 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading and
pioneer wealth management service provider in China offering comprehensive one-stop advisory
services on global investment and asset allocation primarily for
high net worth ("HNW") investors, today announced
its unaudited financial results for the third quarter of
2021.
THIRD QUARTER 2021 FINANCIAL HIGHLIGHTS
- Net revenues for the third quarter of 2021
were RMB908.9 million (US$141.1 million), a 5.8% increase from the
corresponding period in 2020, and a 1.1% increase from the second
quarter of 2021.
(RMB
millions,
except
percentages)
|
Q3 2020
|
|
|
Q3 2021
|
|
|
YoY Change
|
Wealth
management
|
627.7
|
|
|
653.6
|
|
|
4.1%
|
Asset
management
|
222.4
|
|
|
241.3
|
|
|
8.5%
|
Other
businesses
|
9.0
|
|
|
14.0
|
|
|
56.4%
|
Total net
revenues
|
859.1
|
|
|
908.9
|
|
|
5.8%
|
- Income from operations for the third quarter of 2021 was
RMB228.9 million (US$35.5 million), a 34.1% decrease from the
corresponding period in 2020, and a 31.8% decrease from the second
quarter of 2021, due to our budgeted strategic investments on
compensation and marketing activities.
(RMB
millions,
except
percentages)
|
Q3 2020
|
|
|
Q3 2021
|
|
|
YoY Change
|
Wealth
management
|
248.4
|
|
|
143.1
|
|
|
(42.4%)
|
Asset
management
|
113.7
|
|
|
117.2
|
|
|
3.0%
|
Other
businesses
|
(14.9)
|
|
|
(31.4)
|
|
|
112.2%
|
Total income from
operations
|
347.2
|
|
|
228.9
|
|
|
(34.1%)
|
- Net income attributable to Noah shareholders for the
third quarter of 2021 was RMB273.2
million (US$42.4 million), a
4.3% decrease from the corresponding period in 2020, and a 10.6%
decrease from the second quarter of 2021.
- Non-GAAP[1] net income attributable to
Noah shareholders for the third quarter of 2021 was
RMB284.2 million (US$44.1 million), a 4.2% decrease from the
corresponding period in 2020, and a 15.7% decrease from the second
quarter of 2021.
[1] Noah's Non-GAAP financial
measures are its corresponding GAAP financial measures excluding
the effects of all forms of share-based compensation, non-recurring
share-based settlement expenses and net of relevant tax impact, if
any. See "Reconciliation of GAAP to Non-GAAP Results" at the
end of this press release.
|
THIRD QUARTER 2021 OPERATIONAL UPDATES
Wealth Management Business
We offer investment products and provide value-added services to
high net worth investors in China
and overseas for our wealth management business. Noah primarily
distributes private equity, private secondary, mutual funds and
other products denominated in RMB and other currencies.
- Total number of registered clients as of September 30, 2021 was 406,420, a 16.0% increase
from September 30, 2020 and a 2.3%
increase from June 30, 2021.
- Total number of active clients[2] which
excluded mutual fund-only clients during the third quarter of 2021
was 5,606, a 25.5% increase from the corresponding period in 2020
and a 19.9% increase from the second quarter of 2021. Counting in
mutual fund-only clients, the total number of clients who
transacted with us during the third quarter of 2021 was 21,269, a
3.7% increase from the third quarter of 2020, and a 4.8% increase
from the second quarter of 2021.
- Aggregate value of investment products
distributed during the third quarter of 2021 was RMB24.1 billion (US$3.7
billion), a 16.4% decrease from the corresponding period in
2020, due to decreased distribution in mutual fund products and
private equity products.
Product
type
|
Three months ended
September 30,
|
|
2020
|
|
2021
|
|
(RMB in billions,
except percentages)
|
Mutual
fund products
|
12.3
|
|
42.6%
|
|
8.9
|
|
37.2%
|
Private
secondary products
|
8.6
|
|
29.9%
|
|
10.6
|
|
43.8%
|
Private equity
products
|
7.2
|
|
25.1%
|
|
3.8
|
|
15.8%
|
Other
products[3]
|
0.7
|
|
2.4%
|
|
0.8
|
|
3.2%
|
All
products
|
28.8
|
|
100.0%
|
|
24.1
|
|
100.0%
|
- Coverage network in mainland China covers 81 cities as of September 30, 2021, compared with 81 cities as of
June 30, 2021, and 79 cities as of
September 30, 2020.
- Number of relationship managers was 1,322 as of
September 30, 2021, a 4.3% increase
from June 30, 2021, and a 9.8%
increase from September 30,
2020.
[2]
"Active clients" for a given period refers to registered high
net worth clients who purchase financial products distributed or
provided by Noah during that given period, excluding clients who
transacted on our online mutual fund platform.
|
[3]
"Other products" refers to other investment products, which
includes insurance products, multi-strategies products and
others.
|
Asset Management Business
Our asset management business is conducted through Gopher Asset
Management Co., Ltd. ("Gopher Asset Management"), a leading
multi-asset manager in China with
overseas offices in Hong Kong and
the United States. Gopher Asset
Management develops and manages assets ranging from private equity,
real estate, public securities to multi-strategy investments
denominated in RMB and other currencies.
- Total assets under management as of September 30, 2021 remained relatively stable at
RMB156.1 billion (US$24.2 billion), as compared with June 30, 2021 and September 30, 2020.
Investment
type
|
As of
June 30,
2021
|
|
Growth
|
|
Distribution/
Redemption
|
|
As of
September 30,
2021
|
|
(RMB billions,
except percentages)
|
Private
equity
|
127.7
|
|
81.9%
|
|
3.1
|
|
0.4
|
|
130.4
|
|
83.5%
|
Public
securities[4]
|
11.1
|
|
7.1%
|
|
1.3
|
|
1.3
|
|
11.1
|
|
7.1%
|
Real
estate
|
10.2
|
|
6.6%
|
|
0.2
|
|
3.0
|
|
7.4
|
|
4.7%
|
Multi-strategies
|
5.5
|
|
3.5%
|
|
0.5
|
|
0.2
|
|
5.8
|
|
3.8%
|
Others
|
1.4
|
|
0.9%
|
|
-
|
|
-
|
|
1.4
|
|
0.9%
|
All
Investments
|
155.9
|
|
100.0%
|
|
5.1
|
|
4.9
|
|
156.1
|
|
100.0%
|
[4] The asset
allocation/redemption of public securities also includes market
appreciation or depreciation.
|
Other Businesses
Since the fourth quarter of 2020, we have been transitioning our
other businesses segment to "Noah Digital Intelligence", with an
aim to diversify distribution channels beyond our wealth
management, and to provide more comprehensive services and
investment products.
Ms. Jingbo Wang, co-founder and
CEO of Noah, said, "It is encouraging to see continued growth in
the number of diamond card and black card clients, exceeding 8,000
in total; and that our active clients also increased by 25.5%
year-on-year, indicating the positive results of our upgraded Noah
Triangle client service model. Net revenues rose by 5.8%
year-on-year, supported by historical high recurring income as
long-duration private secondary products and private equity
products accumulate into our AUA, creating the snow ball effect,
amid the volatile market this quarter. Since the establishment of
Noah, there has been no capital pool, no implicit guarantee, no
duration mismatch, no leverage allocation, and no cross-border
operations of funds. Our fully compliant operations in different
countries and regions where we hold local licenses ensure our
lifeline and future growth. Noah stays focused on serving HNW and
ultra-HNW clients, and strives to become a professional wealth
management service provider with 'one meter in width and 1,000
meters in depth', delivering suitable products to clients based on
enhanced research capabilities and deeper understanding of our
clients utilizing the KYC/KYP/KYA platform."
THIRD QUARTER 2021 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2021 were
RMB908.9 million (US$141.1 million), a 5.8% increase from the
corresponding period in 2020, primarily driven by increased
one-time commissions, performance-based income and other service
fees.
- Wealth Management Business
- Net revenues from one-time
commissions for the third quarter of 2021 were
RMB193.9 million (US$30.1 million), a 2.2% increase from the
corresponding period in 2020 due to an increase in private
secondary products distributed in third quarter of 2021.
- Net revenues from recurring service fees for the
third quarter of 2021 were RMB391.2
million (US$60.7 million), a
2.8% increase from the corresponding period in 2020. The increase
was primarily due to accumulated effect of investment products
previously distributed.
- Net revenues from performance-based income for the
third quarter of 2021 were RMB37.7
million (US$5.9 million), an
11.9% increase from the corresponding period in 2020, primarily due
to an increase in performance-based income from private equity
products.
- Net revenues from other service fees for the third
quarter of 2021 were RMB30.8 million
(US$4.8 million), a 29.0% increase
from the corresponding period in 2020, primarily due to more
value-added services Noah offers to its high net worth clients.
- Asset Management Business
- Net revenues from recurring
service fees for the third quarter of 2021 were RMB175.7 million (US$27.3
million), a 2.1% decrease from the corresponding period in
2020, primarily due to redemptions of real estate assets.
- Net revenues from performance-based income for the third
quarter of 2021 were RMB44.4 million
(US$6.9 million), a 20.8% increase
from the corresponding period in 2020, primarily due to an increase
in performance-based income from offshore private equity
products.
- Net revenues for the
third quarter of 2021 were RMB14.0
million (US$2.2 million), a
56.4% increase from the corresponding period in 2020.
Operating Costs and Expenses
Operating costs
and expenses for the third quarter of 2021
were RMB680.1 million (US$105.5 million), a 32.9% increase from the
corresponding period in 2020. Operating costs and expenses
primarily consisted of compensation and benefits of RMB459.8 million (US$71.4
million), selling expenses of RMB114.3 million (US$17.7
million), general and administrative expenses of
RMB77.1 million (US$12.0 million) and other operating expenses of
RMB33.0 million (US$5.1 million).
- Operating costs and expenses for the wealth
management business for the third quarter of 2021 were
RMB510.5 million (US$79.2 million), a 34.6% increase from the
corresponding period in 2020, primarily due to an increase in
compensation and benefits as well as selling and general and
administrative expenses.
- Operating costs and expenses for the asset management
business for the third quarter of 2021 were RMB124.2 million (US$19.3
million), a 14.3% increase from the corresponding period in
2020, primarily due to an increase in compensation and
benefits.
- Operating costs and expenses for other businesses
for the third quarter of 2021 were RMB45.4
million (US$7.0 million), a
90.7% increase from the corresponding period in 2020, primarily due
to increased depreciation expenses for our newly purchased
headquarter buildings.
Operating Margin
Operating margin for the third quarter of 2021 was 25.2%,
compared with 40.4% for the corresponding period in 2020, primarily
due to increased compensation and benefits as well as selling
expenses.
- Operating margin for the wealth management business for
the third quarter of 2021 was 21.9%, compared with 39.6% for the
corresponding period in 2020, due to less expenses incurred in the
corresponding periods of 2020 due to the COVID-19 pandemic as well
as private equity products are no longer distributed through wealth
management business, but rather invested in by asset management
business.
- Operating margin for the asset management
business for the third quarter of 2021 was 48.5%, compared with
51.1% for the corresponding period in 2020, due to an increase in
compensation and benefits.
- Loss from operations for other businesses for the
third quarter of 2021 was RMB31.4
million (US$4.9 million),
compared with loss in the amount of RMB14.8
million in the corresponding period in 2020 due to reduced
loan origination and more expenses from our purchased headquarter
buildings.
Investment Income
Investment income for the third quarter of 2021 was
RMB24.1 million (US$3.7 million), compared with RMB0.8 million for the corresponding period in
2020, due to a gain of fair value change from our certain equity
investments.
Income Tax Expenses
Income tax expenses for the third
quarter of 2021 were RMB60.0 million
(US$9.3 million), a 29.3% decrease
from the corresponding period in 2020, primarily due to lower
taxable income.
Income from Equity in Affiliates
Income from equity in affiliates for the third
quarter of 2021 was RMB64.5 million
(US$10.0 million), a 1,287.3%
increase from the corresponding period in 2020, primarily due to
net asset value increase of certain offshore funds of funds we
manage and invest in as the general partner or manager.
Net Income
- Net income for the third
quarter of 2021 was RMB271.4 million
(US$42.1 million), a 4.4% decrease
compared to the corresponding period in 2020.
- Net margin for the third quarter of 2021 was 29.9%, down
from 33.0% for the corresponding period in 2020.
- Net income attributable to Noah shareholders for the third
quarter of 2021 was RMB273.2 million
(US$42.4 million), a 4.3% decrease
from the corresponding period in 2020.
- Net margin attributable to Noah shareholders for the third
quarter of 2021 was 30.1%, down from 33.2% for the corresponding
period in 2020.
- Net income attributable to Noah shareholders per basic and
diluted ADS for the third quarter of 2021 was RMB4.06 (US$0.63)
and RMB4.04 (US$0.63), respectively, compared with
RMB4.63 and RMB4.60 respectively, for the corresponding
period in 2020.
- Non-GAAP Net Income Attributable to Noah
Shareholders
- Non-GAAP net income
attributable to Noah shareholders for the third quarter of 2021
was RMB284.2 million (US$44.1 million), a 4.2% decrease from the
corresponding period in 2020.
- Non-GAAP net margin attributable to Noah shareholders for
the third quarter of 2021 was 31.3%, down from 34.5% for the
corresponding period in 2020.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the third quarter of 2021 was RMB4.20 (US$0.65),
down from RMB4.78 for the
corresponding period in 2020.
Balance Sheet and Cash Flow
As of September 30, 2021, the
Company had RMB2,829.5 million
(US$439.1 million) in cash and cash
equivalents, compared with RMB2,686.4
million as of June 30, 2021,
and RMB4,597.4 million as of
September 30, 2020.
Net cash inflow from the Company's operating activities during
the third quarter of 2021 was RMB361.0
million (US$56.0 million),
compared to net cash inflow of RMB360.8
million in the corresponding period in 2020.
Net cash outflow from the Company's investing activities during
the third quarter of 2021 was RMB234.3
million (US$36.4 million),
compared to net cash inflow of RMB165.7
million in the corresponding period in 2020. The cash
outflow was primarily due to additional investment of certain
long-term investment as well as increased loan originated in this
quarter.
Net cash inflow from the Company's financing activities was
RMB9.5 million (US$1.5 million) in the third quarter of 2021,
compared to net cash outflow of RMB22.9
million in the corresponding period in 2020, primarily due
to proceeds of cash exercise of employee options.
2021 FORECAST
The Company estimates that non-GAAP net income attributable to
Noah shareholders for the full year 2021 will be in the range of
RMB1.2 billion to RMB1.3 billion. This forecast reflects
management's current business outlook and is subject to further
change.
CONFERENCE CALL
Senior management will host a combined English and Chinese
language conference call to discuss the Company's third quarter
2021 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference
call details
|
Date/Time
|
Tuesday, November 23,
2021 at 7:00 p.m., U.S. Eastern Time
Wednesday, November
24, 2021 at 8:00 a.m., Hong Kong Time
|
Dial in
details
|
|
- United States
Toll Free
|
1-888-317-6003
|
- Mainland China
Toll Free
|
4001-206-115
|
- Hong Kong Toll
Free
|
800-963-976
|
- International
|
1-412-317-6061
|
Conference
Title
|
Noah Holdings 3Q21
Earnings Conference Call
|
Participant
Password
|
1960485
|
A telephone replay will be available starting one hour after the
end of the conference call until December
1, 2021 at +1-877-344-7529 (US Toll Free) and
1-412-317-0088 (International Toll). The replay access code is
10161700.
A live and archived webcast of the conference call will be
available at Noah's investor relations website under the News &
Events section at http://ir.noahgroup.com.
DISCUSSION OF NON-GAAP
MEASURES
In addition to disclosing financial results prepared in
accordance with U.S. GAAP, the Company's earnings release contains
non-GAAP financial measures excluding the effects of all forms of
share-based compensation, non-recurring share-based settlement
expenses and net of tax impact, if any. See "Reconciliation of GAAP
to Non-GAAP Results" at the end of this press release.
The non-GAAP financial measures disclosed by the Company should
not be considered a substitute for financial measures prepared in
accordance with U.S. GAAP. The financial results reported in
accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP
results should be carefully evaluated. The non-GAAP financial
measures used by the Company may be prepared differently from and,
therefore, may not be comparable to similarly titled measures used
by other companies.
When evaluating the Company's operating performance in the
periods presented, management reviewed the foregoing non-GAAP net
income attributable to Noah shareholders and per diluted ADS and
non-GAAP net margin attributable to Noah shareholders to supplement
U.S. GAAP financial data. As such, the Company's management
believes that the presentation of the non-GAAP financial measures
provides important supplemental information to investors regarding
financial and business trends relating to its results of operations
in a manner consistent with that used by management.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH) is a leading and pioneer
wealth management service provider in China offering comprehensive one-stop advisory
services on global investment and asset allocation primarily for
high net worth investors. In the first nine months of 2021, Noah
distributed RMB76.2 billion
(US$11.8 billion) of investment
products. Through Gopher Asset Management, Noah had assets under
management of RMB156.1 billion
(US$24.2 billion) as of
September 30, 2021.
Noah's wealth management business primarily distributes private
equity, private secondary, mutual fund and other products
denominated in RMB and other currencies. Noah delivers customized
financial solutions to clients through a network of 1,322
relationship managers in 81 cities in mainland China, and serves the international investment
needs of its clients through offices in Hong Kong, Taiwan, United
States and Singapore. The
Company's wealth management business had 406,420 registered clients
as of September 30, 2021. As a
leading alternative multi-asset manager in China, Gopher Asset Management manages private
equity, real estate, public securities, multi-strategy and other
investments denominated in RMB and other currencies. The Company
also provides other businesses.
For more information, please visit Noah at ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
third quarter of 2021 ended September 30,
2021 are stated in RMB. This announcement contains currency
conversions of certain RMB amounts into US$ at specified rates
solely for the convenience of the reader. Unless otherwise noted,
all translations from RMB to US$ are made at a rate of RMB6.4434 to US$1.00, the effective noon buying rate for
September 30, 2021 as set forth in
the H.10 statistical release of the Federal Reserve Board.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the outlook for 2021 and quotations from management
in this announcement, as well as Noah's strategic and operational
plans, contain forward-looking statements. Noah may also make
written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission, in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about Noah's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
Noah's actual results to differ materially from those contained in
any forward-looking statement, including but not limited to the
following: its goals and strategies; its future business
development, financial condition and results of operations; the
expected growth of the wealth management and asset management
market in China and
internationally; its expectations regarding demand for and market
acceptance of the products it distributes; its expectations
regarding keeping and strengthening its relationships with key
clients; relevant government policies and regulations relating to
its industries; its ability to attract and retain qualified
employees; its ability to stay abreast of market trends and
technological advances; its plans to invest in research and
development to enhance its product choices and service offerings;
competition in its industries in China and internationally; general economic
and business conditions in China;
and its ability to effectively protect its intellectual property
rights and not to infringe on the intellectual property rights of
others. Further information regarding these and other risks is
included in Noah's filings with the U.S. Securities and Exchange
Commission, including its annual reports on Form 20-F. All
information provided in this press release and in the attachments
is as of the date of this press release, and Noah does not
undertake any obligation to update any such information, including
forward-looking statements, as a result of new information, future
events or otherwise, except as required under the applicable
law.
____________________________________
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
As of
|
|
June 30,
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2021
|
|
2021
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
2,686,422
|
|
2,829,481
|
|
439,129
|
|
|
Restricted
cash
|
10,067
|
|
3,227
|
|
501
|
|
|
Short-term
investments
|
96,050
|
|
108,313
|
|
16,810
|
|
|
Accounts receivable,
net
|
470,265
|
|
504,113
|
|
78,237
|
|
|
Loans receivable,
net
|
515,194
|
|
634,774
|
|
98,515
|
|
|
Amounts due from
related parties
|
643,972
|
|
594,047
|
|
92,195
|
|
|
Other current
assets
|
239,997
|
|
209,933
|
|
32,581
|
|
|
Total current
assets
|
4,661,967
|
|
4,883,888
|
|
757,968
|
|
Long-term
investments, net
|
554,280
|
|
665,237
|
|
103,243
|
|
Investment in
affiliates
|
1,258,829
|
|
1,296,559
|
|
201,223
|
|
Property and
equipment, net
|
2,642,584
|
|
2,619,768
|
|
406,582
|
|
Operating lease
right-of-use assets, net
|
256,597
|
|
242,660
|
|
37,660
|
|
Deferred tax
assets
|
223,801
|
|
223,803
|
|
34,734
|
|
Other non-current
assets
|
199,232
|
|
171,114
|
|
26,556
|
Total
Assets
|
9,797,290
|
|
10,103,029
|
|
1,567,966
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
491,716
|
|
514,420
|
|
79,837
|
|
|
Income tax
payable
|
84,675
|
|
105,132
|
|
16,316
|
|
|
Deferred
revenues
|
96,523
|
|
103,807
|
|
16,111
|
|
|
Contingent
liabilities
|
460,315
|
|
444,935
|
|
69,053
|
|
|
Other current
liabilities
|
554,383
|
|
529,049
|
|
82,107
|
|
|
Total current
liabilities
|
1,687,612
|
|
1,697,343
|
|
263,424
|
|
Operating lease
liabilities, non-current
|
169,167
|
|
155,882
|
|
24,193
|
|
Deferred tax
liabilities
|
241,084
|
|
239,536
|
|
37,175
|
|
Other non-current
liabilities
|
109,134
|
|
113,670
|
|
17,641
|
|
Total
Liabilities
|
2,206,997
|
|
2,206,431
|
|
342,433
|
|
Equity
|
7,590,293
|
|
7,896,598
|
|
1,225,533
|
Total Liabilities
and Equity
|
9,797,290
|
|
10,103,029
|
|
1,567,966
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
Three months
ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2020
|
|
2021
|
|
2021
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
125,000
|
|
183,733
|
|
28,515
|
|
47.0%
|
Recurring service
fees
|
200,075
|
|
259,364
|
|
40,253
|
|
29.6%
|
Performance-based
income
|
27,217
|
|
26,796
|
|
4,159
|
|
(1.5%)
|
Other service
fees
|
33,985
|
|
51,690
|
|
8,022
|
|
52.1%
|
Total revenues from
others
|
386,277
|
|
521,583
|
|
80,949
|
|
35.0%
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
71,112
|
|
32,113
|
|
4,984
|
|
(54.8%)
|
Recurring service
fees
|
363,274
|
|
309,532
|
|
48,039
|
|
(14.8%)
|
Performance-based
income
|
43,673
|
|
55,645
|
|
8,636
|
|
27.4%
|
Total revenues from
funds
Gopher manages
|
478,059
|
|
397,290
|
|
61,659
|
|
(16.9%)
|
Total
revenues
|
864,336
|
|
918,873
|
|
142,608
|
|
6.3%
|
Less: VAT related
surcharges
|
(5,282)
|
|
(9,958)
|
|
(1,545)
|
|
88.5%
|
Net
revenues
|
859,054
|
|
908,915
|
|
141,063
|
|
5.8%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(144,977)
|
|
(178,589)
|
|
(27,717)
|
|
23.2%
|
Others
|
(217,549)
|
|
(281,220)
|
|
(43,645)
|
|
29.3%
|
Total compensation
and
benefits
|
(362,526)
|
|
(459,809)
|
|
(71,362)
|
|
26.8%
|
Selling
expenses
|
(69,882)
|
|
(114,307)
|
|
(17,740)
|
|
63.6%
|
General and
administrative
expenses
|
(61,656)
|
|
(77,129)
|
|
(11,970)
|
|
25.1%
|
Provision for credit
losses
|
(5,166)
|
|
(6,582)
|
|
(1,022)
|
|
27.4%
|
Other operating
expenses
|
(23,129)
|
|
(33,030)
|
|
(5,126)
|
|
42.8%
|
Government
grants
|
10,552
|
|
10,804
|
|
1,677
|
|
2.4%
|
Total operating costs
and
expenses
|
(511,807)
|
|
(680,053)
|
|
(105,543)
|
|
32.9%
|
Income from
operations
|
347,247
|
|
228,862
|
|
35,520
|
|
(34.1%)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
12,080
|
|
16,156
|
|
2,507
|
|
33.7%
|
Investment
income
|
751
|
|
24,109
|
|
3,742
|
|
3,110.3%
|
Settlement
expenses
|
-
|
|
(1,437)
|
|
(223)
|
|
N.A.
|
Other income
(expense)
|
4,041
|
|
(824)
|
|
(128)
|
|
N.A.
|
Total other
income
|
16,872
|
|
38,004
|
|
5,898
|
|
125.2%
|
Income before taxes
and
income from equity in
affiliates
|
364,119
|
|
266,866
|
|
41,418
|
|
(26.7%)
|
Income tax
expense
|
(84,944)
|
|
(60,045)
|
|
(9,319)
|
|
(29.3%)
|
Income from equity in
affiliates
|
4,652
|
|
64,536
|
|
10,016
|
|
1,287.3%
|
Net
income
|
283,827
|
|
271,357
|
|
42,115
|
|
(4.4%)
|
Less: net loss
attributable to
non-controlling interests
|
(1,789)
|
|
(1,843)
|
|
(286)
|
|
3.0%
|
Net income
attributable to
Noah shareholders
|
285,616
|
|
273,200
|
|
42,401
|
|
(4.3%)
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
4.63
|
|
4.06
|
|
0.63
|
|
(12.3%)
|
Income per ADS,
diluted
|
4.60
|
|
4.04
|
|
0.63
|
|
(12.2%)
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
40.4%
|
|
25.2%
|
|
25.2%
|
|
|
Net margin
|
33.0%
|
|
29.9%
|
|
29.9%
|
|
|
Weighted average
ADS
equivalent[1]:
|
|
|
|
|
|
|
|
Basic
|
61,723,592
|
|
67,253,930
|
|
67,253,930
|
|
|
Diluted
|
62,075,224
|
|
67,641,457
|
|
67,641,457
|
|
|
ADS equivalent
outstanding at
end of period
|
61,752,197
|
|
60,132,192
|
|
60,132,192
|
|
|
|
|
|
|
|
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two
ADSs.
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
283,827
|
|
271,357
|
|
42,115
|
|
(4.4%)
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(108,684)
|
|
(32,357)
|
|
(5,022)
|
|
(70.2%)
|
Fair value fluctuation
of available for sale
Investment (after tax)
|
-
|
|
109
|
|
17
|
|
N.A.
|
Comprehensive
income
|
175,143
|
|
239,109
|
|
37,110
|
|
36.5%
|
Less: Comprehensive
loss attributable to
non-controlling interests
|
(1,694)
|
|
(1,845)
|
|
(286)
|
|
8.9%
|
Comprehensive
income attributable to
Noah shareholders
|
176,837
|
|
240,954
|
|
37,396
|
|
36.3%
|
Noah Holdings
Limited
Supplemental
Information
|
(unaudited)
|
|
|
As of
|
|
|
|
September 30,
2020
|
|
September 30,
2021
|
|
Change
|
|
|
|
|
|
|
Number of registered
clients
|
350,409
|
|
406,420
|
|
16.0%
|
Number of
relationship managers
|
1,204
|
|
1,322
|
|
9.8%
|
Number of cities in
mainland China under
coverage
|
79
|
|
81
|
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
September 30,
2020
|
|
September 30,
2021
|
|
Change
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of active
clients
|
4,466
|
|
5,606
|
|
25.5%
|
Number of active
clients including mutual
fund-only clients
|
20,509
|
|
21,269
|
|
3.7%
|
Transaction
value:
|
|
|
|
|
|
Private equity
products
|
7,222
|
|
3,793
|
|
(47.5%)
|
Private secondary
products
|
8,598
|
|
10,545
|
|
22.6%
|
Mutual fund
products
|
12,246
|
|
8,942
|
|
(27.0%)
|
Other
products
|
714
|
|
787
|
|
10.2%
|
Total transaction
value
|
28,780
|
|
24,067
|
|
(16.4%)
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Three months ended
September 30, 2021
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others
|
|
|
|
|
|
|
|
One-time
commissions
|
183,733
|
|
-
|
|
-
|
|
183,733
|
Recurring service
fees
|
259,364
|
|
-
|
|
-
|
|
259,364
|
Performance-based
income
|
26,796
|
|
-
|
|
-
|
|
26,796
|
Other service
fees
|
30,856
|
|
-
|
|
20,834
|
|
51,690
|
Total revenues from
others
|
500,749
|
|
-
|
|
20,834
|
|
521,583
|
Revenues from funds
Gopher manages
|
|
|
|
|
|
|
|
One-time
commissions
|
10,784
|
|
21,329
|
|
-
|
|
32,113
|
Recurring service
fees
|
133,173
|
|
176,359
|
|
-
|
|
309,532
|
Performance-based
income
|
11,080
|
|
44,565
|
|
-
|
|
55,645
|
Total revenues from
funds Gopher
manages
|
155,037
|
|
242,253
|
|
-
|
|
397,290
|
Total
revenues
|
655,786
|
|
242,253
|
|
20,834
|
|
918,873
|
Less: VAT related
surcharges
|
(2,215)
|
|
(899)
|
|
(6,844)
|
|
(9,958)
|
Net
revenues
|
653,571
|
|
241,354
|
|
13,990
|
|
908,915
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(172,469)
|
|
(6,120)
|
|
-
|
|
(178,589)
|
Others
|
(179,230)
|
|
(89,733)
|
|
(12,257)
|
|
(281,220)
|
Total compensation and
benefits
|
(351,699)
|
|
(95,853)
|
|
(12,257)
|
|
(459,809)
|
Selling
expenses
|
(92,288)
|
|
(13,584)
|
|
(8,435)
|
|
(114,307)
|
General and
administrative
expenses
|
(57,096)
|
|
(13,669)
|
|
(6,364)
|
|
(77,129)
|
Provision for credit
losses
|
(3,799)
|
|
(701)
|
|
(2,082)
|
|
(6,582)
|
Other operating
expenses
|
(16,268)
|
|
(431)
|
|
(16,331)
|
|
(33,030)
|
Government
grants
|
10,674
|
|
30
|
|
100
|
|
10,804
|
Total operating costs
and expenses
|
(510,476)
|
|
(124,208)
|
|
(45,369)
|
|
(680,053)
|
Income (loss) from
operations
|
143,095
|
|
117,146
|
|
(31,379)
|
|
228,862
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
|
Three months ended
September30, 2020
|
|
Wealth
|
|
Asset
|
|
|
|
|
|
Management
|
|
Management
|
|
Other
|
|
|
|
Business
|
|
Business
|
|
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others
|
|
|
|
|
|
|
|
One-time
commissions
|
124,645
|
|
355
|
|
-
|
|
125,000
|
Recurring service fees
|
199,423
|
|
652
|
|
-
|
|
200,075
|
Performance-based income
|
27,210
|
|
7
|
|
-
|
|
27,217
|
Other
service fees
|
23,992
|
|
886
|
|
9,107
|
|
33,985
|
Total revenues from
others
|
375,270
|
|
1,900
|
|
9,107
|
|
386,277
|
Revenues from funds
Gopher
manages
|
|
|
|
|
|
|
|
One-time commissions
|
66,201
|
|
4,911
|
|
-
|
|
71,112
|
Recurring service fees
|
183,594
|
|
179,680
|
|
-
|
|
363,274
|
Performance-based income
|
6,751
|
|
36,922
|
|
-
|
|
43,673
|
Total revenues from
funds Gopher manages
|
256,546
|
|
221,513
|
|
-
|
|
478,059
|
Total
revenues
|
631,816
|
|
223,413
|
|
9,107
|
|
864,336
|
Less: VAT related
surcharges
|
(4,123)
|
|
(1,003)
|
|
(156)
|
|
(5,282)
|
Net
revenues
|
627,693
|
|
222,410
|
|
8,951
|
|
859,054
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(144,534)
|
|
-
|
|
(443)
|
|
(144,977)
|
Others
|
(118,854)
|
|
(83,269)
|
|
(15,426)
|
|
(217,549)
|
Total compensation
and benefits
|
(263,388)
|
|
(83,269)
|
|
(15,869)
|
|
(362,526)
|
Selling
expenses
|
(58,836)
|
|
(8,759)
|
|
(2,287)
|
|
(69,882)
|
|
|
|
|
|
|
|
|
General and
administrative
expenses
|
(39,357)
|
|
(17,425)
|
|
(4,874)
|
|
(61,656)
|
Provision for credit
losses
|
(6,898)
|
|
-
|
|
1,732
|
|
(5,166)
|
Other operating
expenses
|
(17,298)
|
|
(1,848)
|
|
(3,983)
|
|
(23,129)
|
Government
grants
|
6,471
|
|
2,597
|
|
1,484
|
|
10,552
|
Total operating costs
and expenses
|
(379,306)
|
|
(108,704)
|
|
(23,797)
|
|
(511,807)
|
Income (loss) from
operations
|
248,387
|
|
113,706
|
|
(14,846)
|
|
347,247
|
Noah Holdings
Limited
|
Supplement Revenue
Information by Geography
|
(unaudited)
|
Three months ended
September 30, 2021
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
482,033
|
|
165,602
|
|
20,834
|
|
668,469
|
Hong Kong
|
139,503
|
|
67,426
|
|
-
|
|
206,929
|
Others
|
34,250
|
|
9,225
|
|
-
|
|
43,475
|
Total
revenues
|
655,786
|
|
242,253
|
|
20,834
|
|
918,873
|
Three months ended
September 30, 2020
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
512,820
|
|
184,449
|
|
9,107
|
|
706,376
|
Hong Kong
|
76,584
|
|
27,276
|
|
-
|
|
103,860
|
Others
|
42,412
|
|
11,688
|
|
-
|
|
54,100
|
Total
revenues
|
631,816
|
|
223,413
|
|
9,107
|
|
864,336
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited)
|
|
Three months
ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
|
2020
|
|
2021
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
|
285,616
|
|
273,200
|
|
(4.3%)
|
|
Adjustment for
share-based compensation
|
14,351
|
|
12,423
|
|
(13.4%)
|
|
Add: settlement
expenses
|
-
|
|
1,437
|
|
N.A.
|
|
Less: tax effect of
adjustments
|
3,408
|
|
2,879
|
|
(15.5%)
|
|
Adjusted net income
attributable to Noah shareholders
(non-GAAP)
|
296,559
|
|
284,181
|
|
(4.2%)
|
|
|
|
|
|
|
|
|
Net margin
attributable to Noah shareholders
|
33.2%
|
|
30.1%
|
|
|
|
Non-GAAP net margin
attributable to Noah shareholders
|
34.5%
|
|
31.3%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders per ADS,
diluted
|
4.60
|
|
4.04
|
|
(12.2%)
|
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted
|
4.78
|
|
4.20
|
|
(12.1%)
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2021-301430796.html
SOURCE Noah Holdings Limited