SHANGHAI, Nov. 19, 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 third quarter of 2018.
THIRD QUARTER 2018 FINANCIAL HIGHLIGHTS
- Net revenues for the third quarter of 2018
were RMB839.0 million (US$122.2 million), a 22.6% increase from the
corresponding period in 2017.
(RMB
millions,
except
percentages)
|
Q3 2017
|
|
|
Q3 2018
|
|
|
YoY Change
|
Wealth
management
|
488.9
|
|
|
576.9
|
|
|
18.0%
|
Asset
management
|
164.6
|
|
|
198.5
|
|
|
20.7%
|
Other financial
services
|
30.9
|
|
|
63.6
|
|
|
105.8%
|
Total net
revenues
|
684.4
|
|
|
839.0
|
|
|
22.6%
|
- Income from operations for the third quarter of 2018 was
RMB271.1 million (US$39.5 million), a 69.1% increase from the
corresponding period in 2017.
(RMB
millions,
except
percentages)
|
Q3 2017
|
|
|
Q3 2018
|
|
|
YoY Change
|
Wealth
management
|
106.8
|
|
|
169.2
|
|
|
58.4%
|
Asset
management
|
77.5
|
|
|
101.7
|
|
|
31.2%
|
Other financial
services
|
(24.0)
|
|
|
0.2
|
|
|
100.8%
|
Total income from
operations
|
160.3
|
|
|
271.1
|
|
|
69.1%
|
- Net income attributable to Noah shareholders for the
third quarter of 2018 was RMB207.7
million (US$30.2 million), a
15.6% increase from the corresponding period in 2017.
- Non-GAAP[1] net income attributable to
Noah shareholders for the third quarter of 2018 was
RMB293.9 million (US$42.8 million), a 40.5% increase from the
corresponding period in 2017.
THIRD 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 clients. Noah primarily distributes onshore and offshore
fixed income, private equity, secondary market equity and insurance
products.
- Total number of registered clients as of September 30, 2018 was 236,906, a 34.6% increase
from September 30, 2017.
- Total number of active clients[2] during the
third quarter of 2018 was 4,108, a 7.8% decrease from September 30, 2017.
- Aggregate value of financial products
distributed during the third quarter of 2018 was RMB28.0 billion (US$4.1
billion), an 18.9% increase from the third quarter of
2017.
Product
type
|
Three months ended
September 30,
|
|
2017
|
|
2018
|
|
(RMB in billions,
except percentages)
|
Fixed
income
|
10.8
|
|
45.8%
|
|
22.8
|
|
81.4%
|
Private
equity
|
9.6
|
|
40.7%
|
|
3.3
|
|
11.8%
|
Secondary market
equity
|
3.1
|
|
13.2%
|
|
1.5
|
|
5.4%
|
Other
products
|
0.1
|
|
0.3%
|
|
0.4
|
|
1.4%
|
All
products
|
23.6
|
|
100.0%
|
|
28.0
|
|
100.0%
|
- Average transaction value per active
client[3] for the third quarter of 2018
was RMB6.8 million (US$1.0 million), a 29.0% increase from the
corresponding period in 2017.
- Coverage network included 287 branches and
sub-branches covering 83 cities as of September 30, 2018, up from 222 branches and
sub-branches covering 78 cities as of September 30, 2017.
- Number of relationship managers was 1,559 as of
September 30, 2018, a 21.2% increase
from September 30, 2017.
Asset Management Business
The Company's asset management business, Gopher Asset Management
Co., Ltd. ("Gopher Asset Management" or "Gopher"), 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 September 30, 2018 were RMB164.1 billion (US$23.9
billion), a 1.6% increase from June
30, 2018 and a 14.9% increase from September 30, 2017.
Investment
type
|
As of
June 30,
2018
|
|
Asset
Growth
|
|
Asset
Expiration/
Redemption
|
|
As of
September 30,
2018
|
|
(RMB billions,
except percentages)
|
Private
equity
|
93.9
|
|
58.1%
|
|
3.1
|
|
0.1
|
|
96.9
|
|
59.0%
|
Credit
|
41.3
|
|
25.6%
|
|
6.6
|
|
7.6
|
|
40.3
|
|
24.6%
|
Real
estate
|
17.6
|
|
10.9%
|
|
2.4
|
|
3.4
|
|
16.6
|
|
10.1%
|
Secondary market
equity[4]
|
4.3
|
|
2.7%
|
|
1.2
|
|
0.6
|
|
4.9
|
|
3.0%
|
Other
investments
|
4.4
|
|
2.7%
|
|
1.0
|
|
-
|
|
5.4
|
|
3.3%
|
All
Investments
|
161.5
|
|
100.0%
|
|
14.3
|
|
11.7
|
|
164.1
|
|
100.0%
|
Other Financial Services Business
The Company's other financial services business includes its
lending services, online wealth management and payment technology
services.
Mr. Kenny Lam, Group President of
Noah, said, "Despite the volatile macro environment, we have
delivered solid operational results for this quarter. A lot of this
quarter's results come from efforts from many years prior. We are
also very glad to see a much more diversified revenue base. We will
continue to invest our resources in building a sustainable growth
platform for Noah."
THIRD QUARTER 2018 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2018 were
RMB839.0 million (US$122.2 million), a 22.6% increase from the
corresponding period in 2017, primarily driven by increased
recurring service fee revenues and other service fees.
- Wealth Management Business
- Net revenues from one-time
commissions for the third quarter of 2018 were RMB229.0 million (US$33.3
million), an 8.4% increase from the corresponding period in
2017.
- Net revenues from recurring
service fees for the third quarter of 2018 were RMB304.7 million (US$44.4
million), a 45.4% 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 third quarter of 2018 were
RMB12.2 million (US$1.8 million), compared with RMB48.0 million in the corresponding period of
2017, primarily due to a decrease in performance-based income from
fixed income products.
- Net revenues from other
service fees for the third quarter of 2018 were RMB31.0 million (US$4.5
million), an increase from RMB19.9
million in the corresponding period in 2017, primarily due
to the growth of the Company's investor education business.
- Asset Management Business
- Net revenues from recurring
service fees for the third quarter of 2018 were RMB172.0 million (US$25.0
million), a 29.4% increase from the corresponding period in
2017. The increase was primarily due to the increase in assets
under management as well as higher fee rates earned on assets under
management.
- Net revenues from
performance-based income for the third quarter of 2018 were
RMB21.3 million (US$3.1 million), compared with RMB26.3 million in the corresponding period of
2017, primarily due to a decrease in performance-based income from
secondary market equity funds.
- Other Financial Services Business
- Net revenues for the
third quarter of 2018 were RMB63.6
million (US$9.3 million), a
105.8% increase from the corresponding period in 2017. The increase
was primarily due to the growth of the Company's lending services
business.
Operating Costs and Expenses
Operating costs and expenses for the third
quarter of 2018 were RMB567.9 million
(US$82.7 million), an 8.4% increase
from the corresponding period in 2017. Operating costs and expenses
primarily consisted of compensation and benefits of RMB385.1 million (US$56.1
million), selling expenses of RMB81.2
million (US$11.8 million),
general and administrative expenses of RMB60.0 million (US$8.7
million) and other operating expenses of RMB51.1 million (US$7.4
million).
- Operating costs and expenses for the wealth
management business for the third quarter of 2018 were
RMB407.7 million (US$59.4 million), a 6.7% increase from the
corresponding period in 2017, primarily due to an increase in
compensation and benefits.
- Operating costs and expenses for the asset management
business for the third quarter of 2018 were RMB96.8 million (US$14.1
million), an 11.2% increase from the corresponding period in
2017, primarily due to an increase in compensation and
benefits.
- Operating costs and expenses for the other financial
services business for the third quarter of 2018 were
RMB63.4 million (US$9.2 million), a 15.6% increase from the
corresponding period in 2017 due to the expansion of the operation
of the Company's lending services business.
Operating Margin
Operating margin for the third quarter of 2018 was 32.3%,
an increase from 23.4% for the corresponding period in 2017.
- Operating margin for the wealth management business for
the third quarter of 2018 was 29.3%, compared with 21.9% for the
corresponding period in 2017.
- Operating margin for the asset management
business for the third quarter of 2018 was 51.2%, compared with
47.1% for the corresponding period in 2017.
- Income from operations for the other financial
services business for the third quarter of 2018 was
RMB0.2 million (US$0.03 million), improving from a loss of
RMB24.0 million for the corresponding
period in 2017.
Investment Income
Investment loss for the third quarter of 2018 was
RMB16.8 million (US$2.4 million), compared with investment income
of RMB11.3 million for the
corresponding period in 2017. The loss was primarily due to changes
in fair value of equity securities. See "Discussion of Recently
Adopted Accounting Standard and Non-GAAP Financial Measures" below
for more details.
Income Tax Expenses
Income tax expenses for the third quarter of
2018 were RMB61.8 million
(US$9.0 million), a 47.7% increase
from the corresponding period in 2017, primarily due to higher
taxable income.
Net Income
- Net income for the third
quarter of 2018 was RMB205.2 million
(US$29.9 million), an 11.9% increase
from the corresponding period in 2017.
- Net margin for the third
quarter of 2018 was 24.5%, down from 26.8% for the corresponding
period in 2017.
- Net income attributable to
Noah shareholders for the third quarter of 2018 was
RMB207.7 million (US$30.2 million), a 15.6% increase from the
corresponding period in 2017.
- Net margin attributable to
Noah shareholders for the third quarter of 2018 was 24.8%, down
from 26.3% for the corresponding period in 2017.
- Net income attributable to
Noah shareholders per basic and diluted ADS for the third
quarter of 2018 was RMB3.51
(US$0.51) and RMB3.41 (US$0.50),
respectively, up from RMB3.17 and
RMB3.03 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 third quarter of 2018
was RMB293.9 million (US$42.8 million), a 40.5% increase from the
corresponding period in 2017.
- Non-GAAP net margin
attributable to Noah shareholders for the third quarter of 2018
was 35.0%, up from 30.6% for the corresponding period in 2017.
- Non-GAAP net income
attributable to Noah shareholders per diluted ADS for the third
quarter of 2018 was RMB4.81
(US$0.70), up from RMB3.52 for the corresponding period in 2017.
Balance Sheet and Cash Flow
As of September 30, 2018, the
Company had RMB2,360.1 million
(US$343.6 million) in cash and cash
equivalents, compared with RMB1,987.8
million as of September 30,
2017 and RMB2,094.8 million as
of June 30, 2018.
Net cash inflow from the Company's operating activities during
the third quarter of 2018 was RMB449.8
million (US$65.5 million),
compared to net cash inflow of RMB363.6
million in the corresponding period in 2017. The increase
was mainly due to an increase in net income and the collection of
loans receivable from factoring business.
Net cash outflow from the Company's investing activities during
the third quarter of 2018 was RMB203.6
million (US$29.6 million),
compared to net cash inflow of RMB247.9
million in the corresponding period in 2017. The cash
outflow was primarily due to an increase in investments and in the
number of loans originated by the Company's lending services
business.
Net cash outflow from the Company's financing activities was
RMB16.2 million (US$2.4 million) in the third quarter of 2018,
compared to net cash outflow of RMB609.8
million in the corresponding period in 2017. The significant
cash outflow for the third quarter of 2017 was mainly related to
the mezzanine equity decrease associated with redemption of
Sequoia's investment in Gopher.
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 third quarter
2018 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time:
|
Monday, November 19,
2018 at 8:00 p.m., U.S. Eastern Time
Tuesday, November 20,
2018 at 9:00 a.m., Hong Kong Time
|
Dial in
details:
|
|
- United States
Toll Free
|
+1-888-317-6003
|
- Mainland China
Toll Free
|
4001-201-203
|
- Hong Kong Toll
Free
|
800-905-945
|
- International
|
+1-412-317-6061
|
Conference
Title:
|
Noah Holdings Third
Quarter 2018 Earnings Call
|
Participant Elite
Entry No:
|
8551846
|
Participants will need to dial in 10-15 minutes early, and use
this Elite Entry Number in order to join the conference.
A telephone replay will be available starting one hour after the
end of the conference call until November
26, 2018 at +1-877-344-7529 (US Toll Free) or
+1-412-317-0088 (International Toll). The replay access code is
10126174.
A live and archived webcast of the conference call will be
available at Noah's investor relations website under the News &
Events section at http://ir.noahgroup.com.
DISCUSSION OF 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. 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 nine months of 2018, Noah distributed
RMB84.9 billion (US$12.4 billion) of financial products. Through
Gopher Asset Management, Noah had assets under management of
RMB164.1 billion (US$23.9 billion) as of September 30, 2018.
Noah's wealth management business primarily distributes onshore
and offshore fixed income, private equity, secondary market equity
and insurance products. Noah delivers customized financial
solutions to clients through a network of 1,559 relationship
managers across 287 branches and sub-branches in 83 cities in
mainland China, and serves the
international investment needs of its clients through offices in
Hong Kong, Taiwan, United
States, Canada,
Australia and Singapore. The Company's wealth management
business had 236,906 registered clients as of September 30, 2018. As a leading alternative
asset manager in China, Gopher
Asset Management manages private equity, real estate, secondary
market equity, credit and other investments denominated in Renminbi
and other currencies. The Company also provides other financial
services, including lending services, online wealth management and
payment technology services.
For more information, please visit Noah at
ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
third quarter of 2018 ended September 30,
2018 are stated in RMB. This announcement contains currency
conversions of certain RMB amounts into US$ 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 RMB6.868 to US$1.00, the effective noon buying rate for
September 28, 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.
Contacts:
Noah Holdings Limited
Eva Ma
Tel: +86-21-8035-9221
ir@noahgroup.com
[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. 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 purchase
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.
|
[4] The asset
expiration/redemption of secondary market equity investments also
includes market appreciation or depreciation.
|
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
As of
|
|
June 30,
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2018
|
|
2018
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
2,094,773
|
|
2,360,111
|
|
343,639
|
|
|
Short-term
investments (including short-term
investments measured at fair value of RMB163,043
thousands and RMB162,153 thousands, as of June 30,
2018 and September 30, 2018, respectively)
|
224,043
|
|
213,153
|
|
31,036
|
|
|
Accounts receivable
and contract assets, net of
allowance for doubtful accounts of nil as of June 30,
2018 and September 30, 2018
|
243,098
|
|
255,051
|
|
37,136
|
|
|
Loans receivable,
net
|
601,952
|
|
688,890
|
|
100,303
|
|
|
Amounts due from
related parties
|
563,286
|
|
625,948
|
|
91,140
|
|
|
Loans receivable from
factoring business
|
68,358
|
|
23,943
|
|
3,486
|
|
|
Other current
assets
|
483,894
|
|
455,958
|
|
66,389
|
|
|
Total current
assets
|
4,279,404
|
|
4,623,054
|
|
673,129
|
|
|
|
|
|
|
|
|
Long-term investments
(including long-term investments
measured at fair value of RMB771,594 thousands and
RMB860,828 thousands, as of June 30, 2018 and
September 30, 2018, respectively)
|
806,094
|
|
895,328
|
|
130,362
|
|
Investment in
affiliates
|
1,176,750
|
|
1,314,862
|
|
191,448
|
|
Property and
equipment, net
|
295,786
|
|
295,785
|
|
43,067
|
|
Non-current deferred
tax assets
|
97,296
|
|
97,205
|
|
14,153
|
|
Other non-current
assets
|
77,196
|
|
23,093
|
|
3,363
|
Total
Assets
|
6,732,526
|
|
7,249,327
|
|
1,055,522
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
479,654
|
|
565,346
|
|
82,316
|
|
|
Income tax
payable
|
18,484
|
|
67,170
|
|
9,780
|
|
|
Amounts due to
related parties
|
336
|
|
1,691
|
|
246
|
|
|
Deferred
revenues
|
146,462
|
|
172,171
|
|
25,069
|
|
|
Loans payable from
factoring business
|
35,003
|
|
-
|
|
-
|
|
|
Other current
liabilities
|
383,256
|
|
420,508
|
|
61,227
|
|
|
Total current
liabilities
|
1,063,195
|
|
1,226,886
|
|
178,638
|
|
|
|
|
|
|
|
|
|
Non-current deferred
tax liabilities
|
50,172
|
|
51,256
|
|
7,463
|
|
Convertible
notes
|
330,855
|
|
228,121
|
|
33,215
|
|
Other non-current
liabilities
|
112,485
|
|
75,824
|
|
11,040
|
|
Total
Liabilities
|
1,556,707
|
|
1,582,087
|
|
230,356
|
|
Equity
|
5,175,819
|
|
5,667,240
|
|
825,166
|
Total Liabilities
and Equity
|
6,732,526
|
|
7,249,327
|
|
1,055,522
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
Three months
ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2017
|
|
2018
|
|
2018
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others[1]:
|
|
|
|
|
|
|
|
One-time
commissions
|
87,455
|
|
177,863
|
|
25,897
|
|
103.4%
|
Recurring service
fees
|
145,080
|
|
140,293
|
|
20,427
|
|
(3.3%)
|
Performance-based
income
|
48,759
|
|
12,215
|
|
1,779
|
|
(74.9%)
|
Other service
fees
|
56,201
|
|
98,802
|
|
14,386
|
|
75.8%
|
Total revenues from
others
|
337,495
|
|
429,173
|
|
62,489
|
|
27.2%
|
Revenues from
funds
Gopher manages[1]:
|
|
|
|
|
|
|
|
One-time
commissions
|
125,598
|
|
54,697
|
|
7,964
|
|
(56.5%)
|
Recurring service
fees
|
199,306
|
|
338,300
|
|
49,257
|
|
69.7%
|
Performance-based
income
|
26,020
|
|
21,411
|
|
3,118
|
|
(17.7%)
|
Total revenues from
funds
Gopher manages
|
350,924
|
|
414,408
|
|
60,339
|
|
18.1%
|
Total
revenues
|
688,419
|
|
843,581
|
|
122,828
|
|
22.5%
|
Less: business taxes
and
related surcharges
|
(4,106)
|
|
(4,597)
|
|
(669)
|
|
12.0%
|
Net
revenues
|
684,313
|
|
838,984
|
|
122,159
|
|
22.6%
|
Operating costs
and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(158,310)
|
|
(143,831)
|
|
(20,942)
|
|
(9.1%)
|
Performance fee
compensation
|
-
|
|
(5,975)
|
|
(870)
|
|
N.A.
|
Other
compensations
|
(197,871)
|
|
(235,294)
|
|
(34,259)
|
|
18.9%
|
Total compensation
and
benefits
|
(356,181)
|
|
(385,100)
|
|
(56,071)
|
|
8.1%
|
Selling
expenses
|
(76,967)
|
|
(81,224)
|
|
(11,826)
|
|
5.5%
|
General and
administrative
expenses
|
(60,738)
|
|
(60,010)
|
|
(8,738)
|
|
(1.2%)
|
Other operating
expenses
|
(35,330)
|
|
(51,106)
|
|
(7,441)
|
|
44.7%
|
Government
grants
|
5,234
|
|
9,518
|
|
1,386
|
|
81.8%
|
Total operating costs
and
expenses
|
(523,982)
|
|
(567,922)
|
|
(82,690)
|
|
8.4%
|
Income from
operations
|
160,331
|
|
271,062
|
|
39,469
|
|
69.1%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
12,962
|
|
14,237
|
|
2,073
|
|
9.8%
|
Interest
expenses
|
(4,728)
|
|
1,156
|
|
168
|
|
(124.5%)
|
Investment
income (loss)
|
11,271
|
|
(16,817)
|
|
(2,449)
|
|
(249.2%)
|
Other
expense
|
(290)
|
|
(1,836)
|
|
(267)
|
|
533.1%
|
Total other
income
(expense)
|
19,215
|
|
(3,260)
|
|
(475)
|
|
(117.0%)
|
Income before taxes
and
income from equity in
affiliates
|
179,546
|
|
267,802
|
|
38,994
|
|
49.2%
|
Income tax
expense
|
(41,845)
|
|
(61,804)
|
|
(8,999)
|
|
47.7%
|
Income (loss) from
equity in
affiliates
|
45,712
|
|
(796)
|
|
(116)
|
|
(101.7%)
|
Net
income
|
183,413
|
|
205,202
|
|
29,879
|
|
11.9%
|
Less: net loss
attributable
to non-controlling interests
|
(2,136)
|
|
(2,506)
|
|
(365)
|
|
17.3%
|
Less: net loss
attributable
to redeemable non-
controlling interest of
Subsidiary
|
(333)
|
|
-
|
|
-
|
|
(100.0%)
|
Less: effect on
retained
earnings caused by
termination of redeemable
non-controlling interest of a
subsidiary
|
6,201
|
|
-
|
|
-
|
|
(100.0%)
|
Net income
attributable to
Noah shareholders
|
179,681
|
|
207,708
|
|
30,244
|
|
15.6%
|
Income per ADS,
basic
|
3.17
|
|
3.51
|
|
0.51
|
|
10.7%
|
Income per ADS,
diluted
|
3.03
|
|
3.41
|
|
0.50
|
|
12.5%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
23.4%
|
|
32.3%
|
|
32.3%
|
|
|
Net margin
|
26.8%
|
|
24.5%
|
|
24.5%
|
|
|
Weighted average
ADS
equivalent[2]:
|
|
|
|
|
|
|
|
Basic
|
56,594,562
|
|
59,172,524
|
|
59,172,524
|
|
|
Diluted
|
60,749,462
|
|
61,615,856
|
|
61,615,856
|
|
|
ADS equivalent
outstanding
at end of period
|
56,704,721
|
|
59,430,433
|
|
59,430,433
|
|
|
|
|
|
|
|
|
|
|
|
[1] Starting from the
first quarter of 2018, we report revenue streams in two categories
- revenues from funds
Gopher manages and revenues from others, instead of the previous
categories - third-party revenues and related
party revenues, to provide more relevant and accurate information.
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
|
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2017
|
|
2018
|
|
2018
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
183,413
|
|
205,202
|
|
29,879
|
|
11.9%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(10,362)
|
|
50,719
|
|
7,385
|
|
(589.4%)
|
Fair value fluctuation
of available for sale
Investment (after tax)
|
4,930
|
|
(289)
|
|
(42)
|
|
(105.9%)
|
Comprehensive
income
|
177,981
|
|
255,632
|
|
37,222
|
|
43.6%
|
Less: Comprehensive
income (loss)
attributable to non-controlling interests
|
(2,089)
|
|
(2,634)
|
|
(384)
|
|
26.1%
|
Less: Loss
attributable to redeemable
non-controlling interest of a subsidiary
|
(333)
|
|
-
|
|
-
|
|
(100.0%)
|
Comprehensive
income attributable to
Noah shareholders
|
180,403
|
|
258,266
|
|
37,606
|
|
43.2%
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
As
of
|
|
|
|
September
30,
2017
|
|
September
30,
2018
|
|
Change
|
|
|
|
|
|
|
Number of registered
clients
|
175,979
|
|
236,906
|
|
34.6%
|
Number of
relationship managers
|
1,286
|
|
1,559
|
|
21.2%
|
Number of cities
under coverage
|
78
|
|
83
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
September 30,
2017
|
|
September
30,
2018
|
|
Change
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of active
clients
|
4,456
|
|
4,108
|
|
(7.8%)
|
Transaction
value:
|
|
|
|
|
|
Fixed income
products
|
10,785
|
|
22,775
|
|
111.2%
|
Private equity
products
|
9,578
|
|
3,300
|
|
(65.5%)
|
Secondary market
equity products
|
3,105
|
|
1,490
|
|
(52.0%)
|
Other
products
|
79
|
|
430
|
|
443.1%
|
Total transaction
value
|
23,546
|
|
27,995
|
|
18.9%
|
Average transaction
value per active client
|
5.28
|
|
6.81
|
|
29.0%
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Three months ended
September 30, 2018
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Financial
Services
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others
|
|
|
|
|
|
|
|
One-time
commissions
|
177,305
|
|
558
|
|
-
|
|
177,863
|
Recurring service
fees
|
131,988
|
|
8,305
|
|
-
|
|
140,293
|
Performance-based
income
|
12,215
|
|
-
|
|
-
|
|
12,215
|
Other service
fees
|
31,133
|
|
2,671
|
|
64,998
|
|
98,802
|
Total revenues from
others
|
352,641
|
|
11,534
|
|
64,998
|
|
429,173
|
Revenues from funds
Gopher
manages
|
|
|
|
|
|
|
|
One-time
commissions
|
52,758
|
|
1,939
|
|
-
|
|
54,697
|
Recurring service
fees
|
174,083
|
|
164,217
|
|
-
|
|
338,300
|
Performance-based
income
|
-
|
|
21,411
|
|
-
|
|
21,411
|
Total revenues from
funds Gopher
manages
|
226,841
|
|
187,567
|
|
-
|
|
414,408
|
Total
revenues
|
579,482
|
|
199,101
|
|
64,998
|
|
843,581
|
Less: business taxes
and related
surcharges
|
(2,587)
|
|
(630)
|
|
(1,380)
|
|
(4,597)
|
Net
revenues
|
576,895
|
|
198,471
|
|
63,618
|
|
838,984
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(143,550)
|
|
(10)
|
|
(271)
|
|
(143,831)
|
Performance fee
compensation
|
-
|
|
(5,975)
|
|
-
|
|
(5,975)
|
Other
compensations
|
(142,420)
|
|
(62,725)
|
|
(30,149)
|
|
(235,294)
|
Total compensation and
benefits
|
(285,970)
|
|
(68,710)
|
|
(30,420)
|
|
(385,100)
|
Selling
expenses
|
(74,160)
|
|
(3,747)
|
|
(3,317)
|
|
(81,224)
|
General and
administrative
expenses
|
(34,092)
|
|
(20,046)
|
|
(5,872)
|
|
(60,010)
|
Other operating
expenses
|
(23,010)
|
|
(4,258)
|
|
(23,838)
|
|
(51,106)
|
Government
grants
|
9,518
|
|
-
|
|
-
|
|
9,518
|
Total operating costs
and expenses
|
(407,714)
|
|
(96,761)
|
|
(63,447)
|
|
(567,922)
|
Income from
operations
|
169,181
|
|
101,710
|
|
171
|
|
271,062
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
Three
months ended September 30, 2017
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Financial
Services
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others
|
|
|
|
|
|
|
|
One-time
commissions
|
87,139
|
|
316
|
|
-
|
|
87,455
|
Recurring service
fees
|
138,571
|
|
6,509
|
|
-
|
|
145,080
|
Performance-based
income
|
48,349
|
|
410
|
|
-
|
|
48,759
|
Other service
fees
|
19,991
|
|
4,974
|
|
31,236
|
|
56,201
|
Total revenues from
others
|
294,050
|
|
12,209
|
|
31,236
|
|
337,495
|
Revenues from funds
Gopher manages
|
|
|
|
|
|
|
|
One-time
commissions
|
125,517
|
|
81
|
|
-
|
|
125,598
|
Recurring service
fees
|
72,355
|
|
126,951
|
|
-
|
|
199,306
|
Performance-based
income
|
-
|
|
26,020
|
|
-
|
|
26,020
|
Total revenues from
funds Gopher manages
|
197,872
|
|
153,052
|
|
-
|
|
350,924
|
Total
revenues
|
491,922
|
|
165,261
|
|
31,236
|
|
688,419
|
Less: business taxes
and related
surcharges
|
(3,059)
|
|
(709)
|
|
(338)
|
|
(4,106)
|
Net
revenues
|
488,863
|
|
164,552
|
|
30,898
|
|
684,313
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(157,561)
|
|
-
|
|
(749)
|
|
(158,310)
|
Other
compensations
|
(116,828)
|
|
(52,178)
|
|
(28,865)
|
|
(197,871)
|
Total compensation and
benefits
|
(274,389)
|
|
(52,178)
|
|
(29,614)
|
|
(356,181)
|
Selling
expenses
|
(69,769)
|
|
(3,801)
|
|
(3,397)
|
|
(76,967)
|
General and
administrative
expenses
|
(26,216)
|
|
(21,803)
|
|
(12,719)
|
|
(60,738)
|
Other operating
expenses
|
(14,749)
|
|
(11,403)
|
|
(9,178)
|
|
(35,330)
|
Government
grants
|
3,097
|
|
2,137
|
|
-
|
|
5,234
|
Total operating costs
and expenses
|
(382,026)
|
|
(87,048)
|
|
(54,908)
|
|
(523,982)
|
Income (loss) from
operations
|
106,837
|
|
77,504
|
|
(24,010)
|
|
160,331
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited) [5]
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2017
|
|
2018
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
|
179,681
|
|
207,708
|
|
15.6%
|
Adjustment for
share-based compensation related to:
|
|
|
|
|
|
Share
options
|
15,105
|
|
11,177
|
|
(26.0%)
|
Restricted
shares
|
14,396
|
|
24,470
|
|
70.0%
|
Less: loss from fair
value changes of equity securities
(unrealized)
|
-
|
|
(20,686)
|
|
N.A
|
Add: Gains from sales
of equity securities
|
-
|
|
29,891
|
|
N.A
|
Non-GAAP net income
attributable to Noah
shareholders*
|
209,182
|
|
293,932
|
|
40.5%
|
|
|
|
|
|
|
Net
margin attributable to Noah shareholders
|
26.3%
|
|
24.8%
|
|
|
Non-GAAP net margin
attributable to Noah shareholders*
|
30.6%
|
|
35.0%
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders per ADS,
diluted
|
3.03
|
|
3.41
|
|
12.5%
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted*
|
3.52
|
|
4.81
|
|
36.6%
|
|
|
|
|
|
|
* The non-GAAP
adjustments do not take into consideration the impact of taxes on
such adjustments.
|
[5] 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.
|
View original
content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2018-300752798.html
SOURCE Noah Holdings Limited