SHANGHAI, May 29, 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 financial results for
the first quarter of 2018.
FIRST QUARTER 2018 FINANCIAL HIGHLIGHTS
- Net revenues for the first quarter of 2018
were RMB830.9 million (US$132.5 million), a 16.5% increase from the
corresponding period in 2017.
(RMB
millions, except
percentages)
|
Q1 2017
|
|
Q1 2018
|
|
YoY Change
|
Wealth
management
|
562.0
|
|
594.2
|
|
5.7%
|
Asset
management
|
126.4
|
|
194.3
|
|
53.8%
|
Other financial
services
|
24.8
|
|
42.4
|
|
71.0%
|
Total net
revenues
|
713.2
|
|
830.9
|
|
16.5%
|
- Income from operations for the first quarter of 2018 was
RMB274.5 million (US$43.8 million), a 6.9% increase from the
corresponding period in 2017.
(RMB
millions, except
percentages)
|
Q1 2017
|
|
Q1 2018
|
|
YoY Change
|
Wealth
management
|
209.2
|
|
184.0
|
|
(12.1%)
|
Asset
management
|
78.7
|
|
109.4
|
|
39.0%
|
Other financial
services
|
(31.1)
|
|
(18.9)
|
|
(39.3%)
|
Total income from
operations
|
256.8
|
|
274.5
|
|
6.9%
|
- Net income attributable to Noah shareholders for the
first quarter of 2018 was RMB268.5
million (US$42.8 million), a
23.7% increase from the corresponding period in 2017.
- Non-GAAP[1] net income attributable to Noah
shareholders for the first quarter of 2018 was RMB256.4 million (US$40.9
million), an 8.1% increase from the corresponding period in
2017.
FIRST QUARTER 2018 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business offers financial
products and provides comprehensive financial services to high net
worth individual clients and enterprises. Noah primarily
distributes onshore and offshore fixed income, private equity,
secondary market equity and insurance products.
- Total number of registered clients as of March 31,
2018 was 196,927, a 32.6% increase from March 31, 2017.
- Total number of active clients[2] during the first
quarter of 2018 was 5,449, a 24.9% increase from March 31, 2017.
- Aggregate value of financial products
distributed during the first quarter of 2018 was RMB27.8 billion (US$4.4
billion), a 14.9% decrease from the first quarter of
2017.
Product
type
|
Three months ended
March 31,
|
|
2017
|
|
2018
|
|
(RMB in billions,
except percentages)
|
Fixed
income
|
22.1
|
|
67.6%
|
|
13.2
|
|
47.6%
|
Private
equity
|
9.1
|
|
27.8%
|
|
6.3
|
|
22.6%
|
Secondary market
equity
|
1.1
|
|
3.4%
|
|
7.9
|
|
28.2%
|
Other
products
|
0.4
|
|
1.2%
|
|
0.4
|
|
1.6%
|
All
products
|
32.7
|
|
100.0%
|
|
27.8
|
|
100.0%
|
- Average transaction value per active
client[3] for the first quarter of 2018
was RMB5.1 million (US$0.8 million), a 31.9% decrease from the
corresponding period in 2017.
- Coverage network included 263 branches and
sub-branches covering 81 cities as of March 31, 2018, up from
199 branches and sub-branches covering 74 cities as of March 31, 2017.
- Number of relationship managers was 1,386 as of
March 31, 2018, a 10.8% increase from March 31, 2017.
Asset Management Business
The Company's asset management business, Gopher Asset
Management, is a leading alternative asset manager in China. Gopher Asset Management develops and
manages private equity, real estate, secondary market equity,
credit and other investments denominated in Renminbi and other
currencies.
- Total assets under management as of March 31, 2018
were RMB156.9 billion (US$25.0 billion), a 5.8% increase from
December 31, 2017 and a 21.1%
increase from March 31, 2017.
Investment
type
|
As of
December 31,
2017
|
|
Asset
Growth
|
|
Asset
Expiration/
Redemption
|
|
As of
March 31,
2018
|
|
(RMB billions,
except percentages)
|
Private
equity
|
86.9
|
|
58.6%
|
|
5.0
|
|
0.0
|
|
91.8
|
|
58.5%
|
Credit
|
40.0
|
|
27.0%
|
|
8.2
|
|
5.4
|
|
42.8
|
|
27.3%
|
Real estate
|
11.6
|
|
7.8%
|
|
2.4
|
|
2.1
|
|
11.9
|
|
7.6%
|
Secondary market
equity
|
6.2
|
|
4.2%
|
|
0.9
|
|
0.3
|
|
6.8
|
|
4.3%
|
Other
investments
|
3.6
|
|
2.5%
|
|
-
|
|
0.1
|
|
3.6
|
|
2.3%
|
All
Investments
|
148.3
|
|
100.0%
|
|
16.5
|
|
7.9
|
|
156.9
|
|
100.0%
|
Other Financial Services Business
The Company's other financial services business includes its
online wealth management, lending services and payment technology
services.
Mr. Kenny Lam, Group President of
Noah, said, "The first quarter of 2018 represents another solid
start for the whole year. With the official release of the Asset
Management Guidelines, the wealth management and asset management
industries in China have entered a
new stage which we believe will lead to healthier and more
sustainable growth potential. We will continue to develop our
investment and comprehensive service capabilities in order to
better serve the evolving demands of high net worth Chinese clients
in China and globally."
FIRST QUARTER 2018 FINANCIAL RESULTS
Net Revenues
Net revenues for the first quarter of 2018 were
RMB830.9 million (US$132.5 million), a 16.5% increase from the
corresponding period in 2017, primarily driven by increased
recurring service fee revenues and performance-based income.
- Wealth Management Business
- Net revenues from one-time
commissions for the first quarter of 2018 were RMB316.0 million (US$50.4
million), a 7.7% decrease from the corresponding period in
2017, primarily due to a decline in transaction value.
- Net revenues from recurring
service fees for the first quarter of 2018 were RMB243.2 million (US$38.8
million), a 21.7% increase from the corresponding period in
2017. 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 first quarter of 2018 were
RMB20.0 million (US$3.2 million), compared with RMB11.8 million in the corresponding period of
2017. The increase was primarily due to an increase in
performance-based income from secondary market equity products
distributed in previous periods.
- Net revenues from other
service fees for the first quarter of 2018 were RMB14.9 million (US$2.4
million), increased from RMB8.1
million in the corresponding period in 2017, primarily due
to the growth of the various other comprehensive services Noah
offers to its high net worth clients.
- Asset Management Business
- Net revenues from recurring
service fees for the first quarter of 2018 were RMB152.9 million (US$24.4
million), a 21.8% increase from the corresponding period in
2017. The increase was primarily due to the increase in assets
under management.
- Net revenues from
performance-based income for the first quarter of 2018 were
RMB39.4 million (US$6.3 million), compared with RMB0.7 million in the corresponding period of
2017, primarily due to an increase in performance-based income from
secondary market equity products.
- Other Financial Services Business
- Net revenues for the
first quarter of 2018 were RMB42.4
million (US$6.8 million), a
71.0% increase from the corresponding period in 2017. The increase
was primarily due to the growth of our lending services.
Operating Costs and Expenses
Operating costs and expenses for the first
quarter of 2018 were RMB556.4 million
(US$88.7 million), a 21.9% increase
from the corresponding period in 2017. Operating costs and expenses
primarily consisted of compensation and benefits of RMB360.7 million (US$57.5
million), selling expenses of RMB106.3 million (US$16.9
million), general and administrative expenses of
RMB55.9 million (US$8.9 million) and other operating expenses of
RMB38.0 million (US$6.1 million).
- Operating costs and expenses for the wealth
management business for the first quarter of 2018 were
RMB410.2 million (US$65.4 million), a 16.3% increase from the
corresponding period in 2017, primarily due to an increase in
marketing expenses and a decrease in government subsidies.
- Operating costs and expenses for the asset management
business for the first quarter of 2018 were RMB84.9 million (US$13.5
million), a 78.1% increase from the corresponding period in
2017, primarily due to an increase in investment sub-advisory fees
and a decrease in government subsidies.
- Operating costs and expenses for the other financial
services business for the first quarter of 2018 were
RMB61.3 million (US$9.8 million), a 9.6% increase from the
corresponding period in 2017.
Operating Margin
Operating margin for the first quarter of 2018 was 33.0%,
a decrease from 36.0% for the corresponding period in 2017. The
decrease was mainly due to an increase in marketing expenses and a
decrease in government subsidies.
- Operating margin for the wealth management business for
the first quarter of 2018 was 31.0%, compared with 37.2% for the
corresponding period in 2017.
- Operating margin for the asset management
business for the first quarter of 2018 was 56.3%, compared with
62.3% for the corresponding period in 2017.
- Operating loss for the other financial services
business for the first quarter of 2018 was RMB18.9 million (US$3.0
million), down from RMB31.1
million for the corresponding period in 2017.
Investment Income
Investment income for the first quarter of 2018 was
RMB42.1 million (US$6.7 million), compared with RMB10.1 million for the corresponding period in
2017. The increase includes RMB34.8
million (US$5.5 million) of
changes in fair value of equity securities in accordance with FASB
ASU 2016-01, which became effective on January 1, 2018. See "Discussion of Recently
Adopted Accounting Standard and Non-GAAP Financial Measures" below
for more details.
Income Tax Expenses
Income tax expenses for the first quarter of
2018 were RMB73.7 million
(US$11.7 million), a 19.0% increase
from the corresponding period in 2017. The increase was primarily
due to higher taxable income.
Net Income
- Net income for the first
quarter of 2018 was RMB260.8 million
(US$41.6 million), a 20.9% increase
from the corresponding period in 2017.
- Net margin for the first
quarter of 2018 was 31.4%, up from 30.2% for the corresponding
period in 2017.
- Net income attributable to
Noah shareholders for the first quarter of 2018 was
RMB268.5 million (US$42.8 million), a 23.7% increase from the
corresponding period in 2017.
- Net income attributable to
Noah shareholders per basic and diluted ADS for the first
quarter of 2018 was RMB4.70
(US$0.75) and RMB4.44 (US$0.71),
respectively, up from RMB3.85 and
RMB3.69 respectively, for the
corresponding period in 2017.
- Non-GAAP Net Income Attributable to Noah
Shareholders
- Non-GAAP net income
attributable to Noah shareholders for the first quarter of 2018
was RMB256.4 million (US$40.9 million), an 8.1% increase from the
corresponding period in 2017.
- Non-GAAP net margin
attributable to Noah shareholders for the first quarter of 2018
was 30.9%, down from 33.3% for the corresponding period in
2017.
- Non-GAAP net income
attributable to Noah shareholders per diluted ADS for the first
quarter of 2018 was RMB4.24
(US$0.68), up from RMB4.03 for the corresponding period in 2017.
Balance Sheet and Cash Flow
As of March 31, 2018, the Company
had RMB2,151.4 million (US$343.0 million) in cash and cash equivalents,
compared with RMB1,906.8 million as
of December 31, 2017 and RMB2,609.2 million as of March 31, 2017.
Net cash inflow from the Company's operating activities during
the first quarter of 2018 was RMB344.6
million (US$54.9 million),
driven by profit earned from normal business operations.
Net cash outflow from the Company's investing activities during
the first quarter of 2018 was RMB129.2
million (US$20.6 million),
primarily due to the increase in investment in affiliates.
Net cash inflow from the Company's financing activities was
RMB64.5 million (US$10.3 million) in the first quarter of 2018,
primarily due to the capital increase of a consolidated
non-controlling subsidiary.
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 March 31, 2018, the Company did not repurchase
any ADSs under this program.
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 16.7% to 22.6%
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 first quarter
2018 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time:
|
Tuesday, May 29, 2018
at 8:00 p.m., U.S. Eastern Time Wednesday, May 30, 2018 at 8:00 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
First Quarter 2018 Earnings Call
|
Participant
Password:
|
Noah
Holdings
|
A telephone replay will be available starting one hour after the
end of the conference call until June 5,
2018 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088
(International Toll). The replay access code is 10120296.
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 RECENTLY ADOPTED ACCOUNTING STANDARD AND
NON-GAAP
MEASURES
On January 1, 2018, the Company
adopted ASU 2016-01 Financial Instruments-Overall (Subtopic
825-10): Recognition and Measurement of Financial Assets and
Financial Liabilities, which requires that equity investments,
except for those accounted for under the equity method or those
that result in consolidation of the investee, be measured at fair
value, with subsequent changes in fair value recognized in net
income.
The accounting standard also includes a transition requirement
on presentation that requires the amounts reported in accumulated
other comprehensive income for equity securities that exist as of
the date of adoption previously classified as available-for-sale to
be reclassified to retained earnings.
As a result, upon adoption of this new standard, Noah recorded a
cumulative effect adjustment from other comprehensive income to
retained earnings of RMB251.6 million
(US$38.7 million), net of tax, for
the unrealized gains related to equity securities previously
classified as available-for-sale securities. This adjustment had no
overall impact on shareholders' equity; however, since these net
unrealized gains are now included within retained earnings, they
will not appear as realized gains on Noah's consolidated income
statement when sold.
The future impact to Noah's consolidated income statement from
period to period will vary depending upon the level of volatility
in the performance of the securities held in Noah's equity
portfolio and the overall market. ASU 2016-01 does not affect the
treatment of equity investments accounted for under the equity
method or those that result in consolidation of the investee.
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 and fair value changes of equity
investments (unrealized) and adjusting for sale of equity
securities, 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 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 first quarter of 2018, Noah distributed
RMB27.8 billion (US$4.4 billion) of financial products. Through
Gopher Asset Management, Noah had assets under management of
RMB156.9 billion (US$25.0 billion) as of March 31, 2018.
Noah's wealth management business primarily distributes onshore
and offshore fixed income, private equity, secondary market equity
and insurance products. Noah delivers customized financial
solutions to clients through a network of 1,386 relationship
managers across 263 branches and sub-branches in 81 cities in
mainland China, and serves the
international investment needs of its clients through offices in
Hong Kong, Taiwan, United
States, Canada and
Australia. The Company's wealth
management business had 196,927 registered clients as of
March 31, 2018. As a leading
alternative asset manager in China, Gopher Asset Management manages private
equity, real estate, secondary market equity, credit and other
investments denominated in Renminbi and other currencies. The
Company also provides other financial services, including online
wealth management, lending services and payment technology
services.
For more information, please visit Noah at
ir.noahwm.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
first quarter of 2018 ended March 31,
2018 are stated in RMB. This announcement contains currency
conversions of certain RMB amounts into US$ 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 RMB6.2726 to US$1.00, the effective noon buying rate for
March 30, 2018 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] Noah's Non-GAAP financial
measures are its corresponding GAAP financial measures excluding
the effects of all forms of share-based compensation and fair value
changes of equity securities (unrealized) and adjusting for sale of
equity securities, if any. See "Reconciliation of GAAP to Non-GAAP
Results" at the end of this press release.
[2] "Active clients" for a
given period refers to registered clients who obtain financial
products provided or distributed by Noah during that given period,
excluding clients in Noah's other financial services segment.
[3] "Average transaction value
per active client" refers to the average value of financial
products that were purchased by active clients during the period
specified.
Contacts:
Noah Holdings Limited
Eva Ma
Tel: +86-21-8035-9221
ir@noahwm.com
____________________________________
FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
|
As of
|
|
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
|
2017
|
|
2018
|
|
2018
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
1,906,753
|
|
2,151,447
|
|
342,991
|
|
|
Short-term
investments (including short-term investments measured at fair
value of RMB95,345 thousands and RMB86,740 thousands, as of
December 31, 2017 and March 31, 2018, respectively)
|
160,345
|
|
246,740
|
|
39,336
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of nil as of December 31,
2017 and March 31, 2018
|
175,518
|
|
228,770
|
|
36,471
|
|
|
Loans
receivable
|
765,398
|
|
827,737
|
|
131,961
|
|
|
Amounts due from
related parties
|
515,454
|
|
653,788
|
|
104,229
|
|
|
Loans receivable from
factoring business
|
256,944
|
|
71,403
|
|
11,383
|
|
|
Other current
assets
|
255,680
|
|
247,256
|
|
39,418
|
|
|
Total current
assets
|
4,036,092
|
|
4,427,141
|
|
705,789
|
|
|
|
|
|
|
|
|
|
Long-term investments
(including long-term investments measured at fair value of
RMB482,006 thousands and RMB835,235 thousands, as of December 31,
2017 and March 31, 2018, respectively)
|
988,266
|
|
890,735
|
|
142,004
|
|
Investment in
affiliates
|
968,622
|
|
1,049,353
|
|
167,292
|
|
Property and
equipment, net
|
303,349
|
|
299,415
|
|
47,734
|
|
Non-current deferred
tax assets
|
72,654
|
|
72,357
|
|
11,535
|
|
Other non-current
assets
|
125,871
|
|
114,226
|
|
18,210
|
Total
Assets
|
6,494,854
|
|
6,853,227
|
|
1,092,564
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
622,494
|
|
563,715
|
|
89,869
|
|
|
Income tax
payable
|
18,360
|
|
82,394
|
|
13,136
|
|
|
Amounts due to
related parties
|
276
|
|
280
|
|
45
|
|
|
Deferred
revenues
|
201,254
|
|
167,768
|
|
26,746
|
|
|
Loans payable from
factoring business
|
3,857
|
|
302
|
|
48
|
|
|
Other current
liabilities
|
489,113
|
|
581,379
|
|
92,685
|
|
|
Convertible
notes
|
487,973
|
|
-
|
|
-
|
|
|
Total current
liabilities
|
1,823,327
|
|
1,395,838
|
|
222,529
|
|
|
|
|
|
|
|
|
|
Non-current deferred
tax liabilities
|
50,121
|
|
51,810
|
|
8,260
|
|
Convertible
notes
|
-
|
|
470,445
|
|
75,000
|
|
Other non-current
liabilities
|
113,660
|
|
112,839
|
|
17,989
|
|
Total
Liabilities
|
1,987,108
|
|
2,030,932
|
|
323,778
|
|
Equity
|
4,507,746
|
|
4,822,295
|
|
768,786
|
Total Liabilities
and Equity
|
6,494,854
|
|
6,853,227
|
|
1,092,564
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
|
|
Three months
ended
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
Change
|
|
|
|
2017
|
|
2018
|
|
2018
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others[1]:
|
|
|
|
|
|
|
|
|
One-time
commissions
|
199,787
|
|
219,541
|
|
35,000
|
|
9.9%
|
|
Recurring service
fees
|
145,029
|
|
143,932
|
|
22,946
|
|
(0.8%)
|
|
Performance-based
income
|
12,550
|
|
20,657
|
|
3,293
|
|
64.6%
|
|
Other service
fees
|
33,241
|
|
59,989
|
|
9,564
|
|
80.5%
|
Total revenues from
others
|
390,607
|
|
444,119
|
|
70,803
|
|
13.7%
|
Revenues from funds
Gopher managed[1]:
|
|
|
|
|
|
|
|
|
One-time
commissions
|
144,556
|
|
98,384
|
|
15,685
|
|
(31.9%)
|
|
Recurring service
fees
|
181,890
|
|
254,067
|
|
40,504
|
|
39.7%
|
|
Performance-based
income
|
79
|
|
39,048
|
|
6,225
|
|
49162.6%
|
|
Other service
fees
|
-
|
|
-
|
|
-
|
|
N.A.
|
Total revenues from
funds Gopher managed
|
326,525
|
|
391,499
|
|
62,414
|
|
19.9%
|
Total
revenues
|
717,132
|
|
835,618
|
|
133,217
|
|
16.5%
|
Less: business taxes
and related surcharges
|
(3,962)
|
|
(4,699)
|
|
(749)
|
|
18.6%
|
Net
revenues
|
713,170
|
|
830,919
|
|
132,468
|
|
16.5%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(150,313)
|
|
(158,701)
|
|
(25,301)
|
|
5.6%
|
|
|
Performance fee
compensation
|
-
|
|
(6,200)
|
|
(988)
|
|
N.A.
|
|
|
Other
compensations
|
(190,269)
|
|
(195,812)
|
|
(31,217)
|
|
2.9%
|
|
Total compensation
and benefits
|
(340,582)
|
|
(360,713)
|
|
(57,506)
|
|
5.9%
|
|
Selling
expenses
|
(60,603)
|
|
(106,259)
|
|
(16,940)
|
|
75.3%
|
|
General and
administrative expenses
|
(59,638)
|
|
(55,929)
|
|
(8,916)
|
|
(6.2%)
|
|
Other operating
expenses
|
(29,446)
|
|
(37,963)
|
|
(6,052)
|
|
28.9%
|
|
Government
subsidies
|
33,932
|
|
4,488
|
|
715
|
|
(86.8%)
|
Total operating costs
and expenses
|
(456,337)
|
|
(556,376)
|
|
(88,699)
|
|
21.9%
|
Income from
operations
|
256,833
|
|
274,543
|
|
43,769
|
|
6.9%
|
Other
income:
|
|
|
|
|
|
|
|
|
Interest
income
|
8,708
|
|
22,867
|
|
3,646
|
|
162.6%
|
|
Interest
expenses
|
(4,913)
|
|
(6,869)
|
|
(1,095)
|
|
39.8%
|
|
Investment
income
|
10,146
|
|
42,132
|
|
6,717
|
|
315.3%
|
|
Other (expense)
income
|
1,137
|
|
1,163
|
|
185
|
|
2.3%
|
Total other
income
|
15,078
|
|
59,293
|
|
9,453
|
|
293.2%
|
Income before taxes
and income from equity in affiliates
|
271,911
|
|
333,836
|
|
53,222
|
|
22.8%
|
Income tax
expense
|
(61,915)
|
|
(73,662)
|
|
(11,743)
|
|
19.0%
|
Income from equity in
affiliates
|
5,726
|
|
652
|
|
104
|
|
(88.6%)
|
Net
income
|
215,722
|
|
260,826
|
|
41,583
|
|
20.9%
|
|
Less: net loss
attributable to non-controlling interests
|
(5,200)
|
|
(7,639)
|
|
(1,218)
|
|
46.9%
|
|
Less: Loss
attributable to redeemable non-controlling interest of a
subsidiary
|
3,925
|
|
-
|
|
-
|
|
(100.0%)
|
Net income
attributable to Noah shareholders
|
216,997
|
|
268,465
|
|
42,801
|
|
23.7%
|
Income per ADS,
basic
|
3.85
|
|
4.70
|
|
0.75
|
|
22.1%
|
Income per ADS,
diluted
|
3.69
|
|
4.44
|
|
0.71
|
|
20.3%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
36.0%
|
|
33.0%
|
|
33.0%
|
|
|
Net margin
|
30.2%
|
|
31.4%
|
|
31.4%
|
|
|
|
|
|
|
|
|
|
|
Weighted average ADS
equivalent[2]:
|
|
|
|
|
|
|
|
Basic
|
56,364,758
|
|
57,166,048
|
|
57,166,048
|
|
|
Diluted
|
60,108,286
|
|
61,384,898
|
|
61,384,898
|
|
|
ADS equivalent
outstanding at end of period
|
56,415,307
|
|
57,225,760
|
|
57,225,760
|
|
|
|
[1] Starting from the
first quarter of 2018, we reported revenue streams in two
categories—revenues from funds Gopher managed and revenues from
others, instead of the previous categories—third-party revenues and
related party revenues, to provide more relevant and accurate
information about revenues we generate because a majority of the
related party revenues are generated from funds Gopher managed. We
also revised the comparative period presentation to conform to
current period classification.
|
[2] 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
|
|
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
Change
|
|
|
2017
|
|
2018
|
|
2018
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
215,722
|
|
260,826
|
|
41,583
|
|
20.9%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(4,145)
|
|
(34,863)
|
|
(5,558)
|
|
741.1%
|
|
Fair value
fluctuation of available for sale Investment (after tax)
|
1,515
|
|
1,376
|
|
219
|
|
(9.2%)
|
Comprehensive
income
|
213,092
|
|
227,339
|
|
36,244
|
|
6.7%
|
|
Less: Comprehensive
loss attributable to non-controlling interests
|
(5,316)
|
|
(7,579)
|
|
(1,208)
|
|
42.6%
|
|
Less: Loss
attributable to redeemable non-controlling interest of a
subsidiary
|
3,925
|
|
-
|
|
-
|
|
(100.0%)
|
Comprehensive
income attributable to Noah shareholders
|
214,483
|
|
234,918
|
|
37,452
|
|
9.5%
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
|
As
of
|
|
|
|
|
March
31,
|
|
March
31,
|
|
Change
|
|
|
2017
|
|
2018
|
|
|
|
|
|
|
|
|
|
Number of registered
clients
|
148,505
|
|
196,927
|
|
32.6%
|
Number of
relationship managers
|
1,251
|
|
1,386
|
|
10.8%
|
Number of cities
under coverage
|
74
|
|
81
|
|
9.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March 31,
|
|
March
31,
|
|
Change
|
|
|
2017
|
|
2018
|
|
|
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of active
clients
|
4,362
|
|
5,449
|
|
24.9%
|
Transaction
value:
|
|
|
|
|
|
|
Fixed income
products
|
22,102
|
|
13,247
|
|
(40.1%)
|
|
Private equity
products
|
9,070
|
|
6,279
|
|
(30.8%)
|
|
Secondary market
equity products
|
1,126
|
|
7,854
|
|
597.2%
|
Other
products
|
377
|
|
433
|
|
14.9%
|
Total transaction
value
|
32,675
|
|
27,813
|
|
(14.9%)
|
Average transaction
value per active client
|
7.49
|
|
5.10
|
|
(31.9%)
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2018
|
|
|
|
|
|
|
Other
|
|
|
|
|
Wealth
|
|
Asset
|
|
Financial
|
|
|
|
|
Management
|
|
Management
|
|
Services
|
|
|
|
|
Business
|
|
Business
|
|
Business
|
|
Total
|
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others
|
|
|
|
|
|
|
|
|
One-time
commissions
|
219,283
|
|
258
|
|
-
|
|
219,541
|
|
Recurring service
fees
|
141,329
|
|
2,603
|
|
-
|
|
143,932
|
|
Performance-based
income
|
20,126
|
|
531
|
|
-
|
|
20,657
|
|
Other service
fees
|
14,993
|
|
1,791
|
|
43,205
|
|
59,989
|
Total revenues from
others
|
395,731
|
|
5,183
|
|
43,205
|
|
444,119
|
Revenues from funds
Gopher managed
|
|
|
|
|
|
|
|
|
One-time
commissions
|
98,318
|
|
66
|
|
-
|
|
98,384
|
|
Recurring service
fees
|
103,069
|
|
150,998
|
|
-
|
|
254,067
|
|
Performance-based
income
|
-
|
|
39,048
|
|
-
|
|
39,048
|
|
Other service
fees
|
-
|
|
-
|
|
-
|
|
-
|
Total revenues from
funds Gopher managed
|
201,387
|
|
190,112
|
|
-
|
|
391,499
|
Total
revenues
|
597,118
|
|
195,295
|
|
43,205
|
|
835,618
|
Less: business taxes
and related surcharges
|
(2,936)
|
|
(944)
|
|
(819)
|
|
(4,699)
|
Net
revenues
|
594,182
|
|
194,351
|
|
42,386
|
|
830,919
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(157,926)
|
|
-
|
|
(775)
|
|
(158,701)
|
|
Performance fee
compensation
|
-
|
|
(6,200)
|
|
-
|
|
(6,200)
|
|
Other
compensations
|
(118,761)
|
|
(45,143)
|
|
(31,908)
|
|
(195,812)
|
Total compensation and benefits
|
(276,687)
|
|
(51,343)
|
|
(32,683)
|
|
(360,713)
|
Selling expenses
|
(91,314)
|
|
(5,814)
|
|
(9,131)
|
|
(106,259)
|
General and administrative expenses
|
(36,716)
|
|
(13,754)
|
|
(5,459)
|
|
(55,929)
|
Other operating expenses
|
(8,295)
|
|
(14,605)
|
|
(15,063)
|
|
(37,963)
|
Government subsidies
|
2,808
|
|
640
|
|
1,040
|
|
4,488
|
Total operating costs
and expenses
|
(410,204)
|
|
(84,876)
|
|
(61,296)
|
|
(556,376)
|
Income (loss) from
operations
|
183,978
|
|
109,475
|
|
(18,910)
|
|
274,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Three months ended
March 31, 2017
|
|
|
|
|
|
Other
|
|
|
|
Wealth
|
|
Asset
|
|
Financial
|
|
|
|
Management
|
|
Management
|
|
Services
|
|
|
|
Business
|
|
Business
|
|
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others
|
|
|
|
|
|
|
|
|
One-time
commissions
|
199,654
|
|
133
|
|
-
|
|
199,787
|
|
Recurring service
fees
|
137,635
|
|
7,394
|
|
-
|
|
145,029
|
|
Performance-based
income
|
11,887
|
|
663
|
|
-
|
|
12,550
|
|
Other service
fees
|
8,161
|
|
-
|
|
25,080
|
|
33,241
|
Total revenues from
others
|
357,337
|
|
8,190
|
|
25,080
|
|
390,607
|
Revenues from funds
Gopher managed
|
|
|
|
|
|
|
|
|
One-time
commissions
|
144,541
|
|
15
|
|
-
|
|
144,556
|
|
Recurring service
fees
|
63,305
|
|
118,585
|
|
-
|
|
181,890
|
|
Performance-based
income
|
-
|
|
79
|
|
-
|
|
79
|
|
Other service
fees
|
-
|
|
-
|
|
-
|
|
-
|
Total revenues from
funds Gopher managed
|
207,846
|
|
118,679
|
|
-
|
|
326,525
|
Total
revenues
|
565,183
|
|
126,869
|
|
25,080
|
|
717,132
|
Less: business taxes
and related surcharges
|
(3,194)
|
|
(471)
|
|
(297)
|
|
(3,962)
|
Net
revenues
|
561,989
|
|
126,398
|
|
24,783
|
|
713,170
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
(148,960)
|
|
(3)
|
|
(1,350)
|
|
(150,313)
|
|
Relationship manager
compensation
|
-
|
|
-
|
|
-
|
|
-
|
|
Other
compensations
|
(116,902)
|
|
(39,762)
|
|
(33,605)
|
|
(190,269)
|
Total compensation and benefits
|
(265,862)
|
|
(39,765)
|
|
(34,955)
|
|
(340,582)
|
Selling expenses
|
(54,572)
|
|
(2,072)
|
|
(3,959)
|
|
(60,603)
|
General and administrative expenses
|
(35,300)
|
|
(15,267)
|
|
(9,071)
|
|
(59,638)
|
Other operating expenses
|
(12,447)
|
|
(9,064)
|
|
(7,935)
|
|
(29,446)
|
Government subsidies
|
15,412
|
|
18,520
|
|
-
|
|
33,932
|
Total operating costs
and expenses
|
(352,769)
|
|
(47,648)
|
|
(55,920)
|
|
(456,337)
|
Income (loss) from
operations
|
209,220
|
|
78,750
|
|
(31,137)
|
|
256,833
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited) [4]
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
March
31,
|
|
Change
|
|
|
2017
|
|
2018
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
|
216,997
|
|
268,465
|
|
23.7%
|
Adjustment for
share-based compensation related to:
|
|
|
|
|
|
|
Share
options
|
12,531
|
|
12,210
|
|
(2.6%)
|
|
Restricted
shares
|
7,711
|
|
10,491
|
|
36.1%
|
Adjustments for fair
value changes of equity securities (unrealized)
|
-
|
|
(34,788)
|
|
N.A
|
Adjusted net income
attributable to Noah shareholders (non-GAAP)*
|
237,239
|
|
256,378
|
|
8.1%
|
|
|
|
|
|
|
Net
margin
|
30.2%
|
|
31.4%
|
|
|
Adjusted net margin
(non-GAAP)*
|
33.1%
|
|
29.9%
|
|
|
Net income
attributable to Noah shareholders per ADS, diluted
|
3.69
|
|
4.44
|
|
20.3%
|
Adjusted net income
attributable to Noah shareholders per ADS, diluted
(non-GAAP)*
|
4.03
|
|
4.24
|
|
5.2%
|
|
|
|
|
|
|
* The non-GAAP
adjustments do not take into consideration the impact of taxes on
such adjustments.
|
|
[4] Noah's Non-GAAP
financial measures are its corresponding GAAP financial measures
excluding the effects of all forms of share-based compensation and
fair value changes of equity securities (unrealized) and adjusting
for sale of equity securities, if any.
View original
content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-first-quarter-of-2018-300655829.html
SOURCE Noah Holdings Limited