SHANGHAI, March 6, 2018 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth
and asset management service provider in China with a focus on global investment and
asset allocation services for high net worth individuals and
enterprises, today announced its unaudited preliminary[1] financial
results for the fourth quarter of 2017 and the full year ended
December 31, 2017.
FOURTH QUARTER 2017 FINANCIAL HIGHLIGHTS
- Net revenues for the fourth quarter of
2017 were RMB722.1 million
(US$111.0 million), an 11.7% increase
from the corresponding period in 2016.
(RMB
millions, except
percentages)
|
Q4 2016
|
|
|
Q4 2017
|
|
|
YoY Change
|
Wealth
management
|
488.2
|
|
|
524.8
|
|
|
7.5%
|
Asset
management
|
136.4
|
|
|
166.8
|
|
|
22.3%
|
Internet financial
services
|
21.6
|
|
|
30.5
|
|
|
41.2%
|
Total net
revenues
|
646.2
|
|
|
722.1
|
|
|
11.7%
|
- Income from operations for the fourth quarter of 2017
was RMB135.7 million (US$20.9 million), a 62.7% increase from the
corresponding period in 2016.
(RMB
millions, except
percentages)
|
Q4 2016
|
|
|
Q4 2017
|
|
|
YoY Change
|
Wealth
management
|
82.4
|
|
|
79.7
|
|
|
(3.3)%
|
Asset
management
|
43.5
|
|
|
76.9
|
|
|
76.9%
|
Internet financial
services
|
(42.5)
|
|
|
(20.9)
|
|
|
(50.8%)
|
Total income from
operations
|
83.4
|
|
|
135.7
|
|
|
62.7%
|
- Net income attributable to Noah shareholders for the
fourth quarter of 2017 was RMB160.3
million (US$24.6 million), a
49.3% increase from the corresponding period in 2016.
- Non-GAAP[2] net income attributable to Noah
shareholders for the fourth quarter of 2017 was RMB184.7 million (US$28.4
million), a 40.5% increase from the corresponding period in
2016.
FULL YEAR 2017 FINANCIAL HIGHLIGHTS
- Net revenues in the full year 2017 were
RMB2,826.9 million (US$434.5 million), a 12.5% increase from the full
year 2016.
(RMB
millions, except
percentages)
|
FY 2016
|
|
|
FY 2017
|
|
|
YoY Change
|
Wealth
management
|
1,931.7
|
|
|
2,126.3
|
|
|
10.1%
|
Asset
management
|
531.8
|
|
|
588.0
|
|
|
10.6%
|
Internet financial
services
|
50.1
|
|
|
112.6
|
|
|
124.7%
|
Total net
revenues
|
2,513.6
|
|
|
2,826.9
|
|
|
12.5%
|
- Income from operations in the full year 2017 was
RMB777.0 million (US$119.4 million), a 16.4% increase from the full
year 2016.
(RMB
millions, except
percentages)
|
FY 2016
|
|
|
FY 2017
|
|
|
YoY Change
|
Wealth
management
|
526.0
|
|
|
580.9
|
|
|
10.4%
|
Asset
management
|
321.3
|
|
|
302.9
|
|
|
(5.7%)
|
Internet financial
services
|
(180.0)
|
|
|
(106.8)
|
|
|
(40.7%)
|
Total income from
operations
|
667.3
|
|
|
777.0
|
|
|
16.4%
|
- Net income attributable to Noah shareholders in the full
year 2017 was RMB770.2 million
(US$118.4 million), a 19.6% increase
from the full year 2016.
- Non-GAAP net income attributable to Noah shareholders in
the full year 2017 was RMB863.8million (US$132.8
million), a 19.5% increase from the full year 2016.
FOURTH QUARTER AND FULL YEAR 2017 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business offers financial
products and provides comprehensive financial services to high net
worth individuals, enterprises and institutional clients. Noah
primarily distributes onshore and offshore fixed income products,
private equity products, secondary market products and insurance
products.
- Total number of registered clients as of December 31, 2017 was 186,918, a 38.1% increase
from December 31, 2016.
- Total number of active clients[3] during the fourth
quarter of 2017 was 6,276, a 38.5% increase from December 31, 2016, due to our promotion events
during the fourth quarter of 2017. The total number of active
clients during the full year 2017 was 12,720, a 5.8% increase
from the full year 2016.
- Aggregate value of financial products
distributed during the fourth quarter of 2017 was RMB28.2 billion (US$4.3
billion), a 13.1% increase from the fourth quarter of
2016.
Product
type
|
Three months ended
December 31,
|
|
2016
|
|
2017
|
|
|
|
(RMB in billions,
except percentages)
|
Fixed
income
|
14.3
|
|
57.5%
|
|
15.4
|
|
54.5%
|
Private
equity
|
8.5
|
|
34.2%
|
|
7.4
|
|
26.1%
|
Secondary market
equity
|
1.7
|
|
6.8%
|
|
5.4
|
|
19.2%
|
Other
products
|
0.4
|
|
1.5%
|
|
0.1
|
|
0.2%
|
All
products
|
24.9
|
|
100.0%
|
|
28.2
|
|
100.0%
|
- Aggregate value of financial products
distributed during the full year 2017 was RMB117.4 billion (US$18.0
billion), a 15.8% increase from the full year 2016.
Product
type
|
Twelve months
ended December 31,
|
|
2016
|
|
2017
|
|
|
|
(RMB in billions,
except percentages)
|
Fixed
income
|
64.5
|
|
63.6%
|
|
71.8
|
|
61.1%
|
Private
equity
|
27.5
|
|
27.2%
|
|
34.3
|
|
29.2%
|
Secondary market
equity
|
7.8
|
|
7.7%
|
|
10.8
|
|
9.2%
|
Other
products
|
1.5
|
|
1.5%
|
|
0.6
|
|
0.5%
|
All
products
|
101.4
|
|
100.0%
|
|
117.4
|
|
100.0%
|
- Average transaction value per
client[4] for the fourth quarter of 2017 was
RMB4.5 million (US$0.7 million), an 18.3% decrease from the
corresponding period in 2016. Average transaction value
per client for the full year 2017 was RMB9.2 million (US$1.4
million), a 9.5% increase from the full year 2016.
- Coverage network included 237 branches and
sub-branches covering 79 cities as of December 31, 2017, up from 222 branches and
sub-branches covering 78 cities as of September 30, 2017, and 185 branches and
sub-branches covering 71 cities as of December 31, 2016.
- Number of relationship managers was 1,335 as of
December 31, 2017, a 3.8% increase
from September 30, 2017 and a 14.2%
increase from December 31, 2016.
Asset Management Business
Gopher Asset Management Co. Ltd. ("Gopher"), a subsidiary of the
Company, is a leading alternative asset manager in China. Gopher develops and manages private
equity, real estate, secondary market, credit, and other
investments denominated in both Renminbi and foreign
currencies.
- Total assets under management as of December 31, 2017 were RMB148.3 billion (US$22.8
billion), a 3.8% increase from September 30, 2017 and a 22.6% increase from
December 31, 2016.
Investment
type
|
As of
September 30,
2017
|
|
Asset
Growth
|
|
Asset
Expiration/
Redemption
|
|
As of
December 31,
2017
|
|
(RMB billions,
except percentages)
|
Real estate
|
11.6
|
|
8.1%
|
|
2.6
|
|
2.7
|
|
11.6
|
|
7.8%
|
Private
equity
|
81.3
|
|
56.9%
|
|
5.6
|
|
0.1
|
|
86.9
|
|
58.6%
|
Secondary
market
|
6.0
|
|
4.2%
|
|
0.3
|
|
0.2
|
|
6.2
|
|
4.2%
|
Credit
|
40.4
|
|
28.3%
|
|
7.1
|
|
7.5
|
|
40.0
|
|
27.0%
|
Other
investments
|
3.6
|
|
2.5%
|
|
0.1
|
|
-
|
|
3.6
|
|
2.5%
|
All
Investments
|
142.9
|
|
100.0%
|
|
15.7
|
|
10.3
|
|
148.3
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
type
|
As of
December 31,
2016
|
|
Asset
Growth
|
|
Asset
Expiration/
Redemption
|
|
As of
December 31,
2017
|
|
(RMB billions,
except percentages)
|
Real estate
|
23.2
|
|
19.2%
|
|
14.5
|
|
26.1
|
|
11.6
|
|
7.8%
|
Private
equity
|
58.0
|
|
48.0%
|
|
30.3
|
|
1.4
|
|
86.9
|
|
58.6%
|
Secondary
market
|
8.3
|
|
6.9%
|
|
0.5
|
|
2.7
|
|
6.2
|
|
4.2%
|
Credit
|
27.8
|
|
23.0%
|
|
40.6
|
|
28.4
|
|
40.0
|
|
27.0%
|
Other
investments
|
3.6
|
|
3.0%
|
|
0.1
|
|
0.1
|
|
3.6
|
|
2.5%
|
All
Investments
|
120.9
|
|
100.0%
|
|
86.0
|
|
58.6
|
|
148.3
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internet Financial Services Business
The Company's Internet financial services business includes its
online wealth management platform as well as micro-lending, payment
processing and other online services.
Mr. Kenny Lam, Group President of
Noah, said, "2017 marks another year
of record-high earnings for us. We believe 2018 will be another
exciting year of development as clients broaden their needs and
industry regulations provide a more solid foundation of growth. We
remain highly focused on building a sustainable platform that
deepens client relationships. We will also continue to invest in
technology to expand our service coverage and build on our large
domestic and global footprint."
FOURTH QUARTER 2017 FINANCIAL RESULTS
Net Revenues
Net revenues for the fourth quarter of 2017 were
RMB722.1 million (US$111.0 million), an 11.7% increase from the
corresponding period in 2016, primarily driven by increased
recurring service fee revenues and performance-based income.
- Wealth Management Business
-
- Net revenues from one-time commissions for the fourth
quarter of 2017 were RMB241.0 million
(US$37.0 million), a 7.4% decrease
from the corresponding period in 2016, primarily due to a decline
in distribution of insurance products.
- Net revenues from recurring service fees for the fourth
quarter of 2017 were RMB252.9 million
(US$38.9 million), a 21.1% increase
from the corresponding period in 2016. The increase was primarily
due to the cumulative effect of financial products with recurring
service fees previously distributed.
- Net revenues from performance-based income for the
fourth quarter of 2017 were RMB10.6
million (US$1.6 million),
compared with RMB3.4 million in the
corresponding period of 2016. The increase was primarily due to an
increase in performance-based income from secondary market products
distributed in previous periods.
- Net revenues from other service fees for the fourth
quarter of 2017 were RMB20.2 million
(US$3.1 million), a 29.3% increase
from the corresponding period in 2016.
- Asset Management Business
-
- Net revenues from recurring service fees for the fourth
quarter of 2017 were RMB140.9 million
(US$21.7 million), a 12.1% increase
from the corresponding period in 2016. The increase was primarily
due to the increase in assets under management.
- Net revenues from performance-based income for the
fourth quarter of 2017 were RMB19.1
million (US$2.9 million),
compared with RMB10.3 million in the
corresponding period of 2016, primarily due to an increase in
performance-based income from real estate products.
- Internet Financial Service Business
-
- Net revenues for the fourth quarter of 2017 were
RMB30.5 million (US$4.7 million), a 41.2% increase from the
corresponding period in 2016. The increase was primarily due to the
growth of sales of several services within this segment compared
with the corresponding period of 2016.
Operating costs and expenses
Operating costs and expenses for the fourth
quarter of 2017 were RMB586.5 million
(US$90.1 million), a 4.2% increase
from the corresponding period in 2016. Operating costs and expenses
primarily consisted of compensation and benefits of RMB379.6 million (US$58.3
million), selling expenses of RMB111.5 million (US$17.1
million), general and administrative expenses of
RMB79.3 million (US$12.2 million) and other operating expenses of
RMB41.3 million (US$6.3 million).
- Operating costs and expenses for the wealth
management business for the fourth quarter of 2017 were
RMB445.2 million (US$68.4 million), a 9.7% increase from the
corresponding period in 2016, primarily due to an increase in
marketing expenses and consulting fees.
- Operating costs and expenses for the asset management
business for the fourth quarter of 2017 were RMB89.9 million (US$13.8
million), a 3.2% decrease from the corresponding period in
2016, primarily due to a decrease in investment advisory
expenses.
- Operating costs and expenses for the Internet
financial services business for the fourth quarter of 2017 were
RMB51.4 million (US$7.9 million), a 19.7% decrease from the
corresponding period in 2016, primarily due to a decrease in
product promotion expenses and an increase in government
subsidies.
Operating Margin
Operating margin for the fourth quarter of 2017 was
18.8%, an increase from 12.9% for the corresponding period in 2016.
The increase was mainly due to cost optimization measures and
increased government subsidies.
- Operating margin for the wealth management business for
the fourth quarter of 2017 decreased to 15.2% from 16.9% for the
corresponding period in 2016.
- Operating margin for the asset management
business for the fourth quarter of 2017 was 46.1%, compared
with 31.9% for the corresponding period in 2016.
- Operating loss for the Internet financial services
business for the fourth quarter of 2017 was RMB20.9 million (US$3.2
million), down from RMB42.5
million for the corresponding period in 2016.
Income Tax Expenses
Income tax expenses for the fourth quarter of
2017 were RMB35.1 million
(US$5.4 million), a 58.3% increase
from the corresponding period in 2016. The increase was primarily
due to higher taxable income.
Income from Equity in Affiliates
Income from equity in affiliates for the fourth quarter
of 2017 was RMB18.4 million
(US$2.8 million), compared with
RMB2.1 million in the corresponding
period in 2016. The increase was mainly due to the increased net
asset value of the Company's investment in an asset management
joint venture. We are still reviewing the financial results of the
funds of funds we manage and invest in as the general partner. Any
potential changes in fair value of those investments could affect
the income from equity in affiliates.
Net Income
- Net Income
-
- Net income for the fourth quarter of 2017 was
RMB157.9 million (US$24.3 million), a 93.2% increase from the
corresponding period in 2016.
- Net margin for the fourth quarter of 2017 was 21.9%, up
from 12.6% for the corresponding period in 2016.
- Net income attributable to Noah shareholders for the
fourth quarter of 2017 was RMB160.3
million (US$24.6 million), a
49.3% increase from the corresponding period in 2016.
- Net income attributable to Noah shareholders per basic and
diluted ADS for the fourth quarter of 2017 was RMB2.82 (US$0.43)
and RMB2.72 (US$0.42), respectively, up from RMB1.90 and RMB1.86
respectively, for the corresponding period in 2016.
- Non-GAAP Net Income Attributable to Noah
Shareholders
-
- Non-GAAP net income attributable to Noah shareholders
for the fourth quarter of 2017 was RMB184.67
million (US$28.38 million), a
40.5% increase from the corresponding period in 2016.
- Non-GAAP net margin attributable to Noah shareholders
for the fourth quarter of 2017 was 25.6%, up from 20.3% for the
corresponding period in 2016.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the fourth quarter of 2017 was RMB3.12 (US$0.48),
up from RMB2.26 for the corresponding
period in 2016.
FULL YEAR 2017 FINANCIAL RESULTS
Net Revenues
Net revenues for the full year 2017 were RMB2,826.9 million (US$434.5 million), a 12.5% increase from the full
year 2016, primarily due to increases in recurring service fees and
performance-based income.
- Wealth Management Business
-
- Net revenues from one-time commissions for 2017 were
RMB1,092.2 million (US$167.9 million), a 1.3% decrease from 2016,
primarily due to a decline in distribution of insurance
products.
- Net revenues from recurring service fees for 2017 were
RMB871.7 million (US$134.0 million), a 16.8% increase from 2016.
The increase was primarily due to the cumulative effect of
financial products with recurring service fees previously
distributed by the Company.
- Net revenues from performance-based income for 2017 were
RMB92.5 million (US$14.2 million), a 695.4% increase from 2016,
primarily due to an increase in performance-based income from
secondary market, real estate and private equity products
previously distributed by us.
- Net revenues from other service fees for 2017 were
RMB69.9 million (US$10.7 million), representing a 4.5% increase
from 2016.
- Asset Management Business
-
- Net revenues from recurring service fees for 2017 were
RMB527.6 million (US$81.1 million), a 9.6% increase from 2016. The
increase was primarily due to the increase in assets under
management by the Company.
- Net revenues from performance-based income for 2017 were
RMB47.7 million (US$7.3 million), a 2.4% increase from year 2016,
primarily due to an increase in performance-based income from real
estate products previously distributed by us.
- Internet Financial Services Business
-
- Net revenues for the full year 2017 were RMB112.6 million (US$17.3
million), a 124.7% increase from 2016. The increase was
primarily due to the growth of sales of various services within
this segment compared with 2016.
Operating costs and expenses
Operating costs and expenses for the full
year 2017 were RMB2,049.9 million
(US$315.1 million), an 11.0% increase
from the full year 2016. Operating costs and expenses for the full
year 2017 primarily consisted of compensation and benefits of
RMB1,407.4 million (US$216.3 million), selling expenses of
RMB320.5 million (US$49.3 million), general and administrative
expenses of RMB248.9 million
(US$38.3 million) and other operating
expenses of RMB147.3 million
(US$22.6 million).
- Operating costs and expenses for the wealth
management business for 2017 were RMB1,545.3 million (US$237.5 million), a 9.9% increase from 2016,
primarily due to an increase in relationship manager compensation
in line with the growth in the number of relationship
managers.
- Operating costs and expenses for the asset management
business for 2017 were RMB285.1
million (US$43.8 million), a
35.4% increase from 2016, primarily due to an increase in staff
compensation and decreased government subsidies.
- Operating costs and expenses for the Internet
financial services business for 2017 were RMB219.4 million (US$33.7
million), a 4.7% decrease from 2016.
Operating Margin
Operating margin for the full year 2017 was 27.5%,
compared to 26.5% for the full year 2016, mainly due to cost
optimization measures and increased operating efficiency of the
Internet financial services business.
- Operating margin for the wealth management business for
2017 was 27.3%, compared to 27.2% for 2016.
- Operating margin for the asset management business for
2017 was 51.5%, compared to 60.4% for 2016, primarily due to a
decrease in government subsidies.
- Operating loss for Internet financial services business
for 2017 was RMB106.8 million
(US$16.4 million), compared to 180.0
million for 2016.
Income Tax Expenses
Income tax expenses for the full year 2017
were RMB199.1 million (US$30.6 million), a 26.0% increase from the full
year 2016, primarily due to an increase in taxable income.
Net Income
- Net Income
-
- Net income for the full year 2017 was RMB762.9 million (US$117.3
million), a 27.6% increase from the full year 2016.
- Net margin for the full year 2017 was 27.0%, compared to
23.8% for the full year 2016.
- Net income attributable to Noah shareholders for the
full year 2017 was RMB770.2 million
(US$118.4 million), a 19.6% increase
from the full year 2016.
- Net income attributable to Noah shareholders per basic and
diluted ADS for the full year 2017 was RMB13.62 (US$2.09)
and RMB13.07 (US$2.01), respectively, as compared to
RMB11.44 and RMB11.04, respectively, for the full year
2016.
- Non-GAAP Net Income Attributable to Noah
Shareholders
-
- Non-GAAP net income attributable to Noah shareholders
for the full year 2017 was RMB863.8
million (US$132.8 million), a
19.5% increase from the full year 2016.
- Non-GAAP net margin attributable to Noah shareholders
for the full year 2017 was 30.6%, compared to 28.8% for the full
year 2016.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the full year 2017 was RMB14.62 (US$2.25),
compared to RMB12.36 for the full
year 2016.
Balance Sheet and Cash Flow
As of December 31, 2017, the
Company had RMB1,906.8 million
(US$293.1 million) in cash and cash
equivalents, compared with RMB1,987.8
million as of September 30,
2017 and RMB2,982.5 million as
of December 31, 2016.
Net cash inflow from the Company's operating activities during
the fourth quarter of 2017 was RMB167.3
million (US$25.7 million). Net
cash inflow from the Company's operating activities during the full
year 2017 was RMB628.4 million
(US$96.9), compared to RMB686.2 during the full year 2016, driven by
profit earned from business operations.
Net cash outflow from the Company's investing activities during
the fourth quarter of 2017 was RMB46.6
million (US$7.2 million). Net
cash outflow from the Company's investing activities during the
full year 2017 was RMB833.9 million
(US$128.2), compared to RMB883.8 million during the full year 2016. This
is primarily consisted of loan disbursement of RMB660.1 million, investments of RMB495.0 million, purchases of properties and
equipment of RMB153.3 million and
cash inflow from factoring receivables of RMB500.0 million.
Net cash outflow from the Company's financing activities was
RMB160.5 million (US$24.7million) in the fourth quarter of 2017.
Net cash outflow from the Company's financing activities during the
full year 2017 was RMB791.8 million
(US$121.7), compared to RMB994.6 inflow during the full year 2016,
primarily due to the previously announced repurchase of Sequoia's
investment in Gopher and payment of factoring receivables.
On July 8, 2017, the Company's
board of directors authorized a share repurchase program of up to
US$50 million worth of its issued and
outstanding ADSs over the course of one year. As of December 31, 2017, the Company had repurchased no
ADS under this program.
Note to Financial Information
As of the date of this press release, we are still in the
process of reviewing the financial results of the funds of funds we
manage and invest in as the general partner or manager. Any changes
in the fair value of those investments could affect the income from
equity in affiliates, net income, net income attributable to Noah
Shareholders, income per ADS and the balance of investments in
affiliates in our consolidated financial statements. While not
included in the unaudited preliminary fourth quarter 2017 financial
results in this press release, we will include any such fair value
adjustments in the audited consolidated financial statements in our
2017 Form 20-F and will make a subsequent announcement when our
review conclude, as appropriate.
2018 FORECAST
The Company estimates that non-GAAP net income attributable to
Noah shareholders for the full year 2018 will be in the range of
RMB1 billion to RMB1.05 billion, an increase of 15.8% to 21.6%
compared with the full year 2017. This estimate reflects
management's current business outlook and is subject to change.
CONFERENCE CALL
Senior management will host a combined English and Chinese
language conference call to discuss the Company's fourth quarter
and full year 2017 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time:
|
Tuesday, March 6, 2018
at 8:00 p.m., U.S. Eastern Time Wednesday, March 7, 2018 at 9:00 a.m., Hong Kong
Time
|
Dial in
details:
|
|
- United States Toll
Free
|
+1-866-311-7654
|
- Mainland China Toll
Free
|
4001-201203
|
- Hong Kong Toll
Free
|
800-905-945
|
-
International
|
+1-412-317-5227
|
Conference
Title:
|
Noah Holdings Limited
Fourth Quarter and Full Year 2017 Earnings Call
|
Participant
Password:
|
Noah
Holdings
|
A telephone replay will be available starting one hour after the
end of the conference call until March 13,
2018 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088
(International Toll). The replay access code is 10117575.
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.noahwm.com.
DISCUSSION OF NON-GAAP FINANCIAL MEASURES
In addition to disclosing financial results prepared in
accordance with U.S. GAAP, the Company's earnings release contains
non-GAAP financial measures that exclude the effects of all forms
of share-based compensation. The reconciliation of these non-GAAP
financial measures to the nearest GAAP measures is set forth in the
table captioned "Reconciliation of GAAP to Non-GAAP Results"
below.
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
measure 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 non-GAAP net income
attributable to Noah shareholders results reflecting adjustments to
exclude the impact of share-based compensation to supplement U.S.
GAAP financial data. As such, the Company believes that the
presentation of the non-GAAP net income attributable to Noah
shareholders, non-GAAP net income attributable to Noah shareholders
per diluted ADS and non-GAAP net margin attributable to Noah
shareholders provides important supplemental information to
investors regarding financial and business trends relating to the
Company's financial condition and results of operations in a manner
consistent with that used by management. Pursuant to U.S. GAAP, the
Company recognized significant amounts of expenses for the
restricted shares and share options in the periods presented. The
Company utilized the non-GAAP financial results to make financial
results comparable period to period and to better understand its
historical business operations.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH) is a leading wealth and asset
management service provider in China with a focus on global investment and
asset allocation services for high net worth individuals and
enterprises. In the full year 2017, Noah distributed RMB117.4 billion (US$18.0
billion) of financial products. Through its subsidiary,
Gopher Asset Management, Noah had assets under management of
RMB148.3 billion (US$22.8 billion) as of December 31, 2017.
Noah's wealth management business primarily distributes onshore
and offshore fixed income products, private equity products,
secondary market products and insurance products. Noah delivers
customized financial solutions to clients through a network of
1,335 relationship managers across 237 branches and sub-branches in
79 cities in mainland China, and
serves the international investment needs of its clients through
subsidiaries in Hong Kong,
Taiwan, Canada, Australia and the
United States. The Company's wealth management business had
186,918 registered clients as of December
31, 2017. As a leading alternative asset manager in
China, Gopher Asset Management
manages private equity, real estate, secondary market, credit and
other investments denominated in both Renminbi and foreign
currencies. The Company also provides Internet financial services,
including online wealth management, micro-lending and payment
processing services, etc.
For more information, please visit Noah at
ir.noahwm.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
fourth quarter of 2017 and the full year ended December 31, 2017 are stated in RMB. This
announcement contains currency conversions of certain RMB amounts
into US$ 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 RMB6.5063 to
US$1.00, the effective noon buying
rate for December 31, 2017 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 2018 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 fourth 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 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 industry; 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 industry 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.
[1] As of the date of this press release, we are still in the
process of reviewing the financial results of the funds of funds we
manage and invest in as the general partner or manager. Any changes
in the fair value of those investments could affect the income from
equity in affiliates, net income, net income attributable to Noah
Shareholders, income per ADS and the balance of investments in
affiliates in our consolidated financial statements. While not
included in the unaudited preliminary fourth quarter 2017 financial
results in this press release, we will include any such fair value
adjustments in the audited consolidated financial statements in our
2017 Form 20-F and will make a subsequent announcement when our
review conclude, as appropriate.
[2] Noah's Non-GAAP financial measures are its corresponding
GAAP financial measures as adjusted by excluding the effects of all
forms of share-based compensation.
[3] "Active clients" refers to registered clients who purchased
financial products distributed by Noah during the period
specified.
[4] "Average transaction value per client" refers to the average
value of financial products distributed by Noah that were purchased
by active clients during the period specified.
Contacts:
Noah Holdings Limited
Steve Zeng
Noah Holdings Limited
Tel: +86-21-8035-9221
ir@noahwm.com
____________________________________
FINANCIAL AND OPERATIONAL TABLES FOLLOW
--
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
As of
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2017
|
|
2017
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
1,987,798
|
|
1,906,753
|
|
293,063
|
|
|
Short-term
investments (including short-term investments measured at fair
value of RMB363,692 thousands and RMB95,345 thousands, as of
September 30, 2017 and December 31, 2017, respectively)
|
424,692
|
|
160,345
|
|
24,645
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of nil as of September 30,
2017 and December 31, 2017
|
144,724
|
|
175,518
|
|
|
|
|
|
|
|
|
|
26,977
|
|
|
Loans
receivable
|
401,229
|
|
765,398
|
|
117,640
|
|
|
Amounts due from
related parties
|
701,756
|
|
515,454
|
|
79,224
|
|
|
Loans receivable from
factoring business
|
440,794
|
|
256,944
|
|
39,492
|
|
|
Other current
assets
|
238,830
|
|
255,680
|
|
39,297
|
|
|
Total current
assets
|
4,339,823
|
|
4,036,092
|
|
620,338
|
|
|
|
|
|
|
|
|
Long-term investments
(including long-term investments measured at fair value of
RMB116,975 thousands and RMB482,006 thousands, as of September 30,
2017 and December 31, 2017, respectively)
|
690,747
|
|
988,266
|
|
151,894
|
|
Investment in
affiliates
|
640,820
|
|
969,670
|
|
149,036
|
|
Property and
equipment, net
|
248,090
|
|
303,349
|
|
46,624
|
|
Non-current deferred
tax assets
|
52,083
|
|
72,654
|
|
11,167
|
|
Other non-current
assets
|
104,438
|
|
125,871
|
|
19,349
|
Total
Assets
|
6,076,001
|
|
6,495,902
|
|
998,408
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
491,929
|
|
622,494
|
|
95,676
|
|
|
Income tax
payable
|
70,051
|
|
18,360
|
|
2,822
|
|
|
Amounts due to
related parties
|
273
|
|
276
|
|
42
|
|
|
Deferred
revenues
|
211,861
|
|
201,254
|
|
30,932
|
|
|
Loans payable from
factoring business
|
303,866
|
|
-
|
|
-
|
|
|
Other current
liabilities
|
366,450
|
|
492,970
|
|
75,769
|
|
|
Convertible
notes
|
498,998
|
|
487,973
|
|
75,000
|
|
|
Total current
liabilities
|
1,943,428
|
|
1,823,327
|
|
280,241
|
|
|
|
|
|
|
|
|
|
Non-current Deferred
tax liabilities
|
4,424
|
|
50,121
|
|
7,703
|
|
Other non-current
liabilities
|
71,807
|
|
113,660
|
|
17,469
|
|
Total
Liabilities
|
2,019,659
|
|
1,987,108
|
|
305,413
|
|
Equity
|
4,056,342
|
|
4,508,794
|
|
692,995
|
Total Liabilities
and Equity
|
6,076,001
|
|
6,495,902
|
|
998,408
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
Three months
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from third
party
|
|
|
|
|
|
|
|
One-time
commissions
|
164,146
|
|
130,462
|
|
20,052
|
|
(20.5%)
|
Recurring service fees
|
126,923
|
|
154,949
|
|
23,815
|
|
22.1%
|
Performance-based income
|
6,013
|
|
9,006
|
|
1,384
|
|
49.8%
|
Other
service fees
|
37,178
|
|
52,482
|
|
8,066
|
|
41.2%
|
Total third party
revenues
|
334,260
|
|
346,899
|
|
53,317
|
|
3.8%
|
Revenues from related
party
|
|
|
|
|
|
|
|
One-time
commissions
|
98,616
|
|
113,572
|
|
17,456
|
|
15.2%
|
Recurring service fees
|
209,605
|
|
241,463
|
|
37,112
|
|
15.2%
|
Performance-based income
|
7,719
|
|
20,833
|
|
3,202
|
|
169.9%
|
Other
service fees
|
392
|
|
4,541
|
|
698
|
|
1058.4%
|
Total related party
revenues
|
316,332
|
|
380,409
|
|
58,468
|
|
20.3%
|
Total
revenues
|
650,592
|
|
727,308
|
|
111,785
|
|
11.8%
|
Less:
business taxes and related surcharges
|
(4,362)
|
|
(5,194)
|
|
(798)
|
|
|
|
|
|
|
|
|
|
19.1%
|
Net
revenues
|
646,230
|
|
722,114
|
|
110,987
|
|
11.7%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(150,033)
|
|
(167,363)
|
|
(25,723)
|
|
11.6%
|
Performance Fee Compensation
|
-
|
|
(11,291)
|
|
(1,735)
|
|
0.0%
|
Other
Compensations
|
(190,475)
|
|
(200,982)
|
|
(30,890)
|
|
5.5%
|
Total compensation
and benefits
|
(340,508)
|
|
(379,636)
|
|
(58,348)
|
|
11.5%
|
Selling
expenses
|
(98,672)
|
|
(111,516)
|
|
(17,140)
|
|
13.0%
|
General
and administrative expenses
|
(71,144)
|
|
(79,271)
|
|
(12,184)
|
|
11.4%
|
Other
operating expenses
|
(66,592)
|
|
(41,274)
|
|
(6,344)
|
|
(38.0%)
|
Government subsidies
|
14,068
|
|
25,199
|
|
3,873
|
|
79.1%
|
Total operating costs
and expenses
|
(562,848)
|
|
(586,498)
|
|
(90,143)
|
|
4.2%
|
Income from
operations
|
83,382
|
|
135,616
|
|
20,844
|
|
62.6%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
7,931
|
|
12,910
|
|
1,984
|
|
62.8%
|
Interest
expenses
|
(4,871)
|
|
(9,593)
|
|
(1,474)
|
|
96.9%
|
Investment income
|
18,893
|
|
34,983
|
|
5,377
|
|
85.2%
|
Other
(expense) income
|
(3,606)
|
|
640
|
|
98
|
|
(117.7%)
|
Total other
income
|
18,347
|
|
38,940
|
|
5,985
|
|
112.2%
|
Income before taxes
and income from equity in affiliates
|
101,729
|
|
174,556
|
|
26,829
|
|
71.6%
|
Income tax
expense
|
(22,157)
|
|
(35,081)
|
|
(5,392)
|
|
58.3%
|
Income from equity in
affiliates
|
2,145
|
|
18,438
|
|
2,834
|
|
759.6%
|
Net
income
|
81,717
|
|
157,913
|
|
24,271
|
|
93.2%
|
Less: net loss
attributable to non-controlling Interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Loss
attributable to redeemable non-controlling interest of
Subsidiary
|
(20,312)
|
|
(2,339)
|
|
(359)
|
|
(88.5%)
|
|
|
|
|
|
|
|
|
|
(5,336)
|
|
-
|
|
-
|
|
(100.0%)
|
Net income
attributable to Noah Shareholders
|
107,365
|
|
160,252
|
|
|
|
|
|
|
|
|
|
24,630
|
|
49.3%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
1.90
|
|
2.82
|
|
0.43
|
|
48.4%
|
Income per ADS,
diluted
|
1.86
|
|
2.72
|
|
0.42
|
|
46.2%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
12.9%
|
|
18.8%
|
|
18.8%
|
|
|
Net margin
|
12.6%
|
|
21.9%
|
|
21.9%
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
|
|
Basic
|
56,482,118
|
|
56,782,875
|
|
56,782,875
|
|
|
Diluted
|
60,329,884
|
|
61,147,734
|
|
61,147,734
|
|
|
ADS equivalent
outstanding at end of period
|
56,462,655
|
|
56,902,300
|
|
56,902,300
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs.
|
|
|
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
Twelve months
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from third
party
|
|
|
|
|
|
|
|
One-time
commissions
|
810,645
|
|
541,024
|
|
83,154
|
|
(33.3%)
|
Recurring service fees
|
475,000
|
|
547,123
|
|
84,091
|
|
15.2%
|
Performance-based income
|
19,740
|
|
86,494
|
|
13,294
|
|
338.2%
|
Other
service fees
|
117,794
|
|
171,759
|
|
26,399
|
|
45.8%
|
Total third party
revenues
|
1,423,179
|
|
1,346,400
|
|
206,938
|
|
(5.4%)
|
Revenues from related
party
|
|
|
|
|
|
|
|
One-time
commissions
|
321,442
|
|
561,060
|
|
86,233
|
|
74.5%
|
Recurring service fees
|
775,726
|
|
860,730
|
|
132,292
|
|
11.0%
|
Performance-based income
|
39,501
|
|
54,502
|
|
8,377
|
|
38.0%
|
Other
service fees
|
1,788
|
|
23,314
|
|
3,583
|
|
1203.9%
|
Total related party
revenues
|
1,138,457
|
|
1,499,606
|
|
230,485
|
|
31.7%
|
Total
revenues
|
2,561,636
|
|
2,846,006
|
|
437,423
|
|
11.1%
|
Less:
business taxes and related surcharges
|
(48,064)
|
|
(19,098)
|
|
(2,935)
|
|
(60.3%)
|
Net
revenues
|
2,513,572
|
|
2,826,908
|
|
434,488
|
|
12.5%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(563,620)
|
|
(616,064)
|
|
(94,687)
|
|
9.3%
|
Performance Fee Compensation
|
(8,146)
|
|
(11,291)
|
|
(1,735)
|
|
38.6%
|
Other
Compensations
|
(728,639)
|
|
(780,017)
|
|
(119,886)
|
|
7.1%
|
Total compensation
and benefits
|
(1,300,405)
|
|
(1,407,372)
|
|
(216,308)
|
|
8.2%
|
Selling
expenses
|
(322,667)
|
|
(320,462)
|
|
(49,254)
|
|
(0.7%)
|
General
and administrative expenses
|
(234,488)
|
|
(248,878)
|
|
(38,252)
|
|
6.1%
|
Other
operating expenses
|
(151,088)
|
|
(147,318)
|
|
(22,642)
|
|
(2.5%)
|
Government subsidies
|
162,365
|
|
74,156
|
|
11,398
|
|
(54.3%)
|
Total operating costs
and expenses
|
(1,846,283)
|
|
(2,049,874)
|
|
(315,058)
|
|
11.0%
|
Income from
operations
|
667,289
|
|
777,034
|
|
119,430
|
|
16.4%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
39,539
|
|
45,020
|
|
6,919
|
|
13.9%
|
Interest
expenses
|
(19,289)
|
|
(24,128)
|
|
(3,708)
|
|
25.1%
|
Investment
income
|
48,537
|
|
67,343
|
|
10,350
|
|
38.7%
|
Other (expense)
income
|
(2,531)
|
|
3,542
|
|
544
|
|
(239.9%)
|
Total other
income
|
66,256
|
|
91,777
|
|
14,105
|
|
38.5%
|
Income before taxes
and income from equity in affiliates
|
733,545
|
|
868,811
|
|
133,535
|
|
18.4%
|
Income tax
expense
|
(157,997)
|
|
(199,085)
|
|
(30,599)
|
|
26.0%
|
Income from equity in
affiliates
|
22,343
|
|
93,184
|
|
14,322
|
|
317.1%
|
Net
income
|
597,891
|
|
762,910
|
|
117,258
|
|
27.6%
|
Less: net loss
attributable to non-controlling Interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: income(loss)
attributable to redeemable non-controlling interest of
Subsidiary
|
(40,602)
|
|
(13,745)
|
|
(2,113)
|
|
(66.1%)
|
|
|
|
|
|
|
|
|
|
(5,336)
|
|
6,483
|
|
996
|
|
(221.5%)
|
Net income
attributable to Noah Shareholders
|
|
|
|
|
|
|
|
|
643,829
|
|
770,172
|
|
118,375
|
|
19.6%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
11.44
|
|
13.62
|
|
2.09
|
|
19.1%
|
Income per ADS,
diluted
|
11.04
|
|
13.07
|
|
2.01
|
|
18.4%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
26.5%
|
|
27.5%
|
|
27.5%
|
|
|
Net margin
|
23.8%
|
|
27.0%
|
|
27.0%
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
|
|
Basic
|
56,300,278
|
|
56,551,274
|
|
56,551,274
|
|
|
Diluted
|
60,073,525
|
|
60,467,645
|
|
60,467,645
|
|
|
ADS equivalent
outstanding at end of period
|
|
|
|
|
|
|
|
|
56,462,655
|
|
56,902,300
|
|
56,902,300
|
|
|
|
[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
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
81,717
|
|
157,913
|
|
24,271
|
|
93.2%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
14,342
|
|
(13,047)
|
|
(2,005)
|
|
N.A.
|
Fair value
fluctuation of available for sale Investment (after tax)
|
(12,479)
|
|
243,655
|
|
37,449
|
|
N.A.
|
Comprehensive
income
|
83,580
|
|
388,521
|
|
59,715
|
|
364.8%
|
Less: Comprehensive
loss attributable to non-controlling interests
|
(20,326)
|
|
(2,342)
|
|
(360)
|
|
(88.5%)
|
Loss attributable to
redeemable non-controlling interest of Subsidiary
|
(5,336)
|
|
-
|
|
-
|
|
(100.0%)
|
Comprehensive
income attributable to Noah Shareholders
|
109,242
|
|
390,863
|
|
60,075
|
|
257.8%
|
|
|
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
Twelve months
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
597,891
|
|
762,910
|
|
117,257
|
|
27.6%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
19,241
|
|
(33,876)
|
|
(5,207)
|
|
N.A.
|
Fair value
fluctuation of available for sale Investment (after tax)
|
(3,001)
|
|
252,706
|
|
38,840
|
|
N.A.
|
Comprehensive
income
|
614,131
|
|
981,740
|
|
150,891
|
|
59.9%
|
Less: Comprehensive
loss attributable to non-controlling interests
|
(40,697)
|
|
(13,776)
|
|
(2,117)
|
|
(66.1%)
|
Loss attributable to
redeemable non-controlling interest of Subsidiary
|
(5,336)
|
|
6,483
|
|
996
|
|
(221.5%)
|
Comprehensive
income attributable to Noah Shareholders
|
660,164
|
|
989,033
|
|
152,012
|
|
49.8%
|
|
|
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
As
of
|
|
|
|
December 31,
2016
|
|
December 31,
2017
|
|
Change
|
|
|
|
|
|
|
Number of registered
clients
|
135,396
|
|
186,918
|
|
38.1%
|
Number of
relationship managers
|
1,169
|
|
1,335
|
|
14.2%
|
Number of cities
under coverage
|
71
|
|
79
|
|
11.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
December 31,
2016
|
|
December 31,
2017
|
|
Change
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of active
clients
|
4,532
|
|
6,276
|
|
38.5%
|
Transaction
value:
|
|
|
|
|
|
Fixed income
products
|
14,337
|
|
15,367
|
|
7.2%
|
Private equity
products
|
8,519
|
|
7,360
|
|
(13.6%)
|
Secondary market
equity products
|
1,700
|
|
5,412
|
|
218.3%
|
Other
products
|
364
|
|
48
|
|
(86.8%)
|
Total transaction
value
|
24,920
|
|
28,188
|
|
13.1%
|
Average transaction
value per client
|
5.50
|
|
4.49
|
|
(18.3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
|
December 31,
2016
|
|
December 31,
2017
|
|
Change
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of active
clients
|
12,027
|
|
12,720
|
|
5.8%
|
Transaction
value:
|
|
|
|
|
|
Fixed income
products
|
64,494
|
|
71,759
|
|
11.3%
|
Private equity
products
|
27,545
|
|
34,261
|
|
24.4%
|
Secondary market
equity products
|
7,846
|
|
10,754
|
|
37.1%
|
Other
products
|
1,499
|
|
598
|
|
(60.1%)
|
Total transaction
value
|
101,385
|
|
117,371
|
|
15.8%
|
Average transaction
value per client
|
8.43
|
|
9.23
|
|
9.5%
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
Three months ended
December 31, 2017
|
|
Wealth Management
Business
|
|
Asset Management
Business
|
|
Internet Financial
Services Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from third
party
|
|
|
|
|
|
|
|
One-time
commissions
|
130,190
|
|
272
|
|
-
|
|
130,462
|
Recurring service fees
|
149,367
|
|
5,582
|
|
-
|
|
154,949
|
Performance-based income
|
8,854
|
|
152
|
|
-
|
|
9,006
|
Other
service fees
|
20,397
|
|
5,643
|
|
26,442
|
|
52,482
|
Total third party
revenues
|
308,808
|
|
11,649
|
|
26,442
|
|
346,899
|
Revenues from related
party
|
|
|
|
|
|
|
|
One-time
commissions
|
112,656
|
|
916
|
|
-
|
|
113,572
|
Recurring service fees
|
105,436
|
|
136,027
|
|
-
|
|
241,463
|
Performance-based income
|
1,826
|
|
19,007
|
|
-
|
|
20,833
|
Other
service fees
|
-
|
|
-
|
|
4,541
|
|
4,541
|
Total related party
revenues
|
219,918
|
|
155,950
|
|
4,541
|
|
380,409
|
Total
revenues
|
528,726
|
|
167,599
|
|
30,983
|
|
727,308
|
Less:
business taxes and related surcharges
|
(3,911)
|
|
(840)
|
|
(443)
|
|
(5,194)
|
Net
revenues
|
524,815
|
|
166,759
|
|
30,540
|
|
722,114
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(166,699)
|
|
-
|
|
(664)
|
|
(167,363)
|
Performance Fee Compensation
|
-
|
|
(11,291)
|
|
-
|
|
(11,291)
|
Other
compensation
|
(117,186)
|
|
(53,406)
|
|
(30,390)
|
|
(200,982)
|
Total
compensation and benefits
|
(283,885)
|
|
(64,697)
|
|
(31,054)
|
|
(379,636)
|
Selling
expenses
|
(104,538)
|
|
(1,965)
|
|
(5,013)
|
|
(111,516)
|
General
and administrative expenses
|
(54,695)
|
|
(22,379)
|
|
(2,197)
|
|
(79,271)
|
Other
operating expenses
|
(22,800)
|
|
(3,992)
|
|
(14,482)
|
|
(41,274)
|
Government subsidies
|
20,768
|
|
3,131
|
|
1,300
|
|
25,199
|
Total operating costs
and expenses
|
(445,150)
|
|
(89,902)
|
|
(51,446)
|
|
(586,498)
|
Income (loss) from
operations
|
79,665
|
|
76,857
|
|
(20,906)
|
|
135,616
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
Three months ended
December 31, 2016
|
|
Wealth Management
Business
|
|
Asset Management
Business
|
|
Internet Financial
Services Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from third
party
|
|
|
|
|
|
|
|
One-time
commissions
|
163,809
|
|
337
|
|
-
|
|
164,146
|
Recurring service fees
|
109,458
|
|
17,465
|
|
-
|
|
126,923
|
Performance-based income
|
2,771
|
|
3,242
|
|
-
|
|
6,013
|
Other
service fees
|
15,774
|
|
-
|
|
21,404
|
|
37,178
|
Third party
revenues
|
291,812
|
|
21,044
|
|
21,404
|
|
334,260
|
Revenues from related
party
|
|
|
|
|
|
|
|
One-time
commissions
|
98,592
|
|
24
|
|
-
|
|
98,616
|
Recurring service fees
|
100,948
|
|
108,657
|
|
-
|
|
209,605
|
Performance-based income
|
650
|
|
7,069
|
|
-
|
|
7,719
|
Other
service fees
|
-
|
|
-
|
|
392
|
|
392
|
Related party
revenues
|
200,190
|
|
115,750
|
|
392
|
|
316,332
|
Total
revenues
|
492,002
|
|
136,794
|
|
21,796
|
|
650,592
|
Less:
business taxes and related surcharges
|
(3,767)
|
|
(421)
|
|
(174)
|
|
(4,362)
|
Net
revenues
|
488,235
|
|
136,373
|
|
21,622
|
|
646,230
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(147,169)
|
|
(325)
|
|
(2,539)
|
|
(150,033)
|
Other
compensation
|
(120,756)
|
|
(38,873)
|
|
(30,846)
|
|
(190,475)
|
Total
compensation and benefits
|
(267,925)
|
|
(39,198)
|
|
(33,385)
|
|
(340,508)
|
Selling
expenses
|
(84,740)
|
|
(6,012)
|
|
(7,920)
|
|
(98,672)
|
General
and administrative expenses
|
(37,492)
|
|
(25,297)
|
|
(8,355)
|
|
(71,144)
|
Other
operating expenses
|
(24,918)
|
|
(27,244)
|
|
(14,430)
|
|
(66,592)
|
Government subsidies
|
9,222
|
|
4,846
|
|
-
|
|
14,068
|
Total operating costs
and expenses
|
(405,853)
|
|
(92,905)
|
|
(64,090)
|
|
(562,848)
|
Income (loss) from
operations
|
82,382
|
|
43,468
|
|
(42,468)
|
|
83,382
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
Twelve months ended
December 31, 2017
|
|
Wealth Management
Business
|
|
Asset Management
Business
|
|
Internet Financial
Services Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from third
party
|
|
|
|
|
|
|
|
One-time
commissions
|
539,936
|
|
1,088
|
|
-
|
|
541,024
|
Recurring service fees
|
519,575
|
|
27,548
|
|
-
|
|
547,123
|
Performance-based income
|
84,105
|
|
2,389
|
|
-
|
|
86,494
|
Other service fees
|
70,390
|
|
10,712
|
|
90,657
|
|
171,759
|
Total third party
revenues
|
1,214,006
|
|
41,737
|
|
90,657
|
|
1,346,400
|
Revenues from related
party
|
|
|
|
|
|
|
|
One-time
commissions
|
560,048
|
|
1,012
|
|
-
|
|
561,060
|
Recurring service fees
|
358,321
|
|
502,409
|
|
-
|
|
860,730
|
Performance-based income
|
9,020
|
|
45,482
|
|
-
|
|
54,502
|
Other
service fees
|
-
|
|
-
|
|
23,314
|
|
23,314
|
Total related party
revenues
|
927,389
|
|
548,903
|
|
23,314
|
|
1,499,606
|
Total
revenues
|
2,141,395
|
|
590,640
|
|
113,971
|
|
2,846,006
|
Less:
business taxes and related surcharges
|
(15,128)
|
|
(2,599)
|
|
(1,371)
|
|
(19,098)
|
Net
revenues
|
2,126,267
|
|
588,041
|
|
112,600
|
|
2,826,908
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(611,550)
|
|
(4)
|
|
(4,510)
|
|
(616,064)
|
Performance Fee Compensation
|
-
|
|
(11,291)
|
|
-
|
|
(11,291)
|
Other
compensation
|
(463,370)
|
|
(190,032)
|
|
(126,615)
|
|
(780,017)
|
Total
compensation and benefits
|
(1,074,920)
|
|
(201,327)
|
|
(131,125)
|
|
(1,407,372)
|
Selling
expenses
|
(295,798)
|
|
(9,271)
|
|
(15,393)
|
|
(320,462)
|
General
and administrative expenses
|
(146,122)
|
|
(70,618)
|
|
(32,138)
|
|
(248,878)
|
Other
operating expenses
|
(77,490)
|
|
(27,773)
|
|
(42,055)
|
|
(147,318)
|
Government subsidies
|
49,008
|
|
23,848
|
|
1,300
|
|
74,156
|
Total operating costs
and expenses
|
(1,545,322)
|
|
(285,141)
|
|
(219,411)
|
|
(2,049,874)
|
Income (loss) from
operations
|
580,945
|
|
302,900
|
|
(106,811)
|
|
777,034
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
Twelve months ended
December 31, 2016
|
|
Wealth Management
Business
|
|
Asset Management
Business
|
|
Internet Financial
Services Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from third
party
|
|
|
|
|
|
|
|
One-time
commissions
|
809,460
|
|
1,185
|
|
-
|
|
810,645
|
Recurring service fees
|
413,085
|
|
61,915
|
|
-
|
|
475,000
|
Performance-based income
|
11,143
|
|
8,597
|
|
-
|
|
19,740
|
Other
service fees
|
67,437
|
|
-
|
|
50,357
|
|
117,794
|
Third party
revenues
|
1,301,125
|
|
71,697
|
|
50,357
|
|
1,423,179
|
Revenues from related
party
|
|
|
|
|
|
|
|
One-time
commissions
|
318,555
|
|
2,887
|
|
-
|
|
321,442
|
Recurring service fees
|
347,819
|
|
427,907
|
|
-
|
|
775,726
|
Performance-based income
|
707
|
|
38,794
|
|
-
|
|
39,501
|
Other
service fees
|
722
|
|
-
|
|
1,066
|
|
1,788
|
Related party
revenues
|
667,803
|
|
469,588
|
|
1,066
|
|
1,138,457
|
Total
revenues
|
1,968,928
|
|
541,285
|
|
51,423
|
|
2,561,636
|
Less:
business taxes and related surcharges
|
(37,274)
|
|
(9,475)
|
|
(1,315)
|
|
(48,064)
|
Net
revenues
|
1,931,654
|
|
531,810
|
|
50,108
|
|
2,513,572
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(556,554)
|
|
(1,452)
|
|
(5,614)
|
|
(563,620)
|
Performance Fee Compensation
|
-
|
|
(8,146)
|
|
-
|
|
(8,146)
|
Other
compensation
|
(443,705)
|
|
(155,567)
|
|
(129,367)
|
|
(728,639)
|
Total
compensation and benefits
|
(1,000,259)
|
|
(165,165)
|
|
(134,981)
|
|
(1,300,405)
|
Selling
expenses
|
(280,993)
|
|
(16,172)
|
|
(25,502)
|
|
(322,667)
|
General
and administrative expenses
|
(120,764)
|
|
(77,201)
|
|
(36,523)
|
|
(234,488)
|
Other
operating expenses
|
(82,059)
|
|
(35,923)
|
|
(33,106)
|
|
(151,088)
|
Government subsidies
|
78,445
|
|
83,920
|
|
-
|
|
162,365
|
Total operating costs
and expenses
|
(1,405,630)
|
|
(210,541)
|
|
(230,112)
|
|
(1,846,283)
|
Income (loss) from
operations
|
526,024
|
|
321,269
|
|
(180,004)
|
|
667,289
|
|
|
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited)
|
|
Three months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2016
|
|
2017
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders
|
107,365
|
|
160,252
|
|
49.3%
|
Adjustment for
share-based compensation related to:
|
|
|
|
|
|
Share
options
|
11,854
|
|
10,796
|
|
(8.9%)
|
Restricted shares
|
12,178
|
|
13,625
|
|
11.9%
|
Adjusted net income
attributable to Noah Shareholders (non-GAAP)*
|
131,397
|
|
184,673
|
|
40.5%
|
|
|
|
|
|
|
Net
margin
|
12.6%
|
|
21.9%
|
|
|
Adjusted net margin
(non-GAAP)*
|
16.4%
|
|
25.3%
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders per ADS, diluted
|
1.86
|
|
2.72
|
|
46.2%
|
Adjusted net income
attributable to Noah Shareholders per ADS, diluted
(non-GAAP)*
|
2.26
|
|
3.12
|
|
38.1%
|
|
*The non-GAAP
adjustments do not take into consideration the impact of taxes on
such adjustments.
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited)
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2016
|
|
2017
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders
|
643,829
|
|
770,172
|
|
19.6%
|
Adjustment for
share-based compensation related to:
|
|
|
|
|
|
Share
options
|
39,008
|
|
51,054
|
|
30.9%
|
Restricted shares
|
40,163
|
|
42,581
|
|
6.0%
|
Adjusted net income
attributable to Noah Shareholders (non-GAAP)*
|
723,000
|
|
863,807
|
|
19.5%
|
|
|
|
|
|
|
Net
margin
|
23.8%
|
|
27.0%
|
|
|
Adjusted net margin
(non-GAAP)*
|
26.9%
|
|
30.3%
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders per ADS, diluted
|
11.04
|
|
13.07
|
|
18.4%
|
Adjusted net income
attributable to Noah Shareholders per ADS, diluted
(non-GAAP)*
|
12.36
|
|
14.62
|
|
18.3%
|
View original
content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-preliminary-financial-results-for-the-fourth-quarter-and-full-year-2017-300609267.html
SOURCE Noah Holdings Limited