SHANGHAI, May 16, 2019 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading
wealth and asset management service provider in China with a focus on high net worth
individuals, today announced its unaudited financial results
for the first quarter of 2019.
FIRST QUARTER 2019 FINANCIAL HIGHLIGHTS
- Net revenues for the first quarter of
2019 were RMB889.9 million (US$132.6 million), a 7.1% increase from the
corresponding period in 2018.
(RMB
millions,
except
percentages)
|
Q1 2018
|
|
|
Q1 2019
|
|
|
YoY Change
|
Wealth
management
|
594.2
|
|
|
623.4
|
|
|
4.9%
|
Asset
management
|
194.3
|
|
|
167.9
|
|
|
(13.6%)
|
Lending and other
businesses
|
42.4
|
|
|
98.6
|
|
|
132.6%
|
Total net
revenues
|
830.9
|
|
|
889.9
|
|
|
7.1%
|
- Income from operations for the first quarter of
2019 was RMB302.5 million (US$45.1
million), a 10.2% increase from the corresponding
period in 2018.
(RMB
millions,
except
percentages)
|
Q1 2018
|
|
|
Q1 2019
|
|
|
YoY Change
|
Wealth
management
|
184.0
|
|
|
189.5
|
|
|
3.0%
|
Asset
management
|
109.4
|
|
|
67.8
|
|
|
(38.1%)
|
Lending and other
businesses
|
(18.9)
|
|
|
45.2
|
|
|
N.A.
|
Total income from
operations
|
274.5
|
|
|
302.5
|
|
|
10.2%
|
- Net income attributable to Noah shareholders for the
first quarter of 2019 was RMB284.6
million (US$42.4 million), a
6.0% increase from the corresponding period in 2018.
- Non-GAAP[1] net income attributable to
Noah shareholders for the first quarter of 2019 was
RMB304.6 million (US$45.4 million), a 19.9% increase from the
corresponding period in 2018.
[1] Noah's Non-GAAP financial
measures are its corresponding GAAP financial measures excluding
the effects of all forms of share-based compensation, fair value
changes of equity securities (unrealized), adjustment for sale of
equity securities and net of relevant tax impact, if any. See
"Reconciliation of GAAP to Non-GAAP Results" at the end of this
press release.
|
FIRST QUARTER 2019 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business offers financial
products and provides value-added services to high net worth
clients in China and overseas.
Noah primarily distributes credit, private equity, public
securities and insurance products denominated in RMB and other
currencies.
- Total number of registered clients as of March 31, 2019 was 274,893, a 39.6% increase from
March 31, 2018.
- Total number of active clients[2] during the
first quarter of 2019 was 8,117, a 49.0% increase from the first
quarter of 2018.
- Aggregate value of financial products
distributed during the first quarter of 2019 was RMB28.0 billion (US$4.2
billion), a 0.8% increase from the first quarter of
2018.
Product
type
|
Three months ended
March 31,
|
|
2018
|
|
2019
|
|
(RMB in billions,
except percentages)
|
Credit[3] products
|
13.2
|
|
47.6%
|
|
22.1
|
|
78.8%
|
Private equity
products
|
6.3
|
|
22.6%
|
|
1.3
|
|
4.8%
|
Public
securities[4] products
|
7.9
|
|
28.2%
|
|
3.2
|
|
11.4%
|
Other
products
|
0.4
|
|
1.6%
|
|
1.4
|
|
5.0%
|
All
products
|
27.8
|
|
100.0%
|
|
28.0
|
|
100.0%
|
- Average transaction value per active
client[5] for the first quarter of
2019 was RMB3.5 million (US$0.5 million), a 32.3% decrease from the
corresponding period in 2018.
- Coverage network in mainland China included 313 service centers covering 83
cities as of March 31, 2019, up from
263 service centers covering 81 cities as of March 31, 2018 and unchanged from December 31, 2018.
- Number of relationship managers was 1,496 as of
March 31, 2019, a 7.9% increase from
March 31, 2018, but a 5.5% decrease
from December 31, 2018.
[2]
"Active clients" for a given period refers to registered high net
worth clients who purchase financial products distributed or
provided by Noah during that given period.
|
[3]
"Credit products" was previously referred to as "fixed income"
products.
|
[4]
"Public securities products" refer to the financial products that
invest in publicly traded securities, including stocks and
bonds. This was previously referred to as "secondary market
equity" financial products. Starting in January 2019, we included
the transaction value of mutual fund products in the total
transaction value.
|
[5]
"Average transaction value per active client" refers to the average
value of financial products that were purchased by active clients
during the period specified.
|
Asset Management Business
The Company's asset management business, Gopher Asset
Management, is a leading alternative multi-asset manager in
China also with international
offices in Hong Kong and
the United States. Gopher Asset
Management develops and manages private equity, real estate,
public securities, credit and multi-strategy investments
denominated in Renminbi and other currencies.
- Total assets under management as of March 31, 2019
were RMB171.1 billion (US$25.5 billion), a 1.1% increase from
December 31, 2018 and a 9.1% increase
from March 31, 2018.
Investment
type
|
As of
December 31,
2018
|
|
Asset
Growth
|
|
Asset
Expiration/
Redemption
|
|
As of
March 31,
2019
|
|
(RMB billions,
except percentages)
|
Private
equity
|
100.2
|
|
59.2%
|
|
2.1
|
|
1.2
|
|
101.1
|
|
59.1%
|
Credit
|
39.4
|
|
23.3%
|
|
6.4
|
|
7.0
|
|
38.8
|
|
22.7%
|
Real
estate
|
16.7
|
|
9.9%
|
|
0.8
|
|
0.1
|
|
17.4
|
|
10.2%
|
Public
securities[4]
|
6.2
|
|
3.6%
|
|
1.0
|
|
0.3[6]
|
|
6.9
|
|
4.0%
|
Multi-strategies[7]
|
6.7
|
|
4.0%
|
|
0.3
|
|
0.1
|
|
6.9
|
|
4.0%
|
All
Investments
|
169.2
|
|
100.0%
|
|
10.6
|
|
8.7
|
|
171.1
|
|
100.0%
|
|
[6] The
asset expiration/redemption of public securities also includes
market appreciation or depreciation.
|
[7]
"Multi-strategies" investments were previously referred to as
"other investments".
|
Lending and Other Businesses
The Company's lending services business utilizes an advanced
risk-management system to assess and facilitate short-term loans to
high quality borrowers, often secured with collateral. The total
amount of loans originated during the first quarter of 2019 was
RMB2.5 billion, as compared with
RMB2.1 billion for the corresponding
period of 2018, representing an increase of 17.2%. Other businesses
include an online financial advisory platform and payment
technology services.
Mr. Yi Zhao, Group President of
Noah, said, "We have been focusing on the enhancement of operating
efficiency, and successfully delivered another quarter of solid
financial results, especially reflected in the improvement of
operating margin. We have noticed that after the recent market
challenges, high net worth clients have become increasingly
rational and sophisticated, and their investment appetite has been
gradually recovering, which provides us with enhanced business
growth opportunities."
FIRST QUARTER 2019 FINANCIAL RESULTS
Net Revenues
Net revenues for the first quarter of 2019 were
RMB889.9 million (US$132.6 million), a 7.1% increase from the
corresponding period in 2018, primarily driven by increased
recurring service fees and other service fees, partially offset by
a decrease of performance-based income.
- Wealth Management Business
- Net revenues from one-time commissions for the first
quarter of 2019 were RMB322.7 million
(US$48.1 million), a 2.1% increase
from the corresponding period in 2018, generally in line with the
total amount of transaction value.
- Net revenues from recurring service fees for the first
quarter of 2019 were RMB256.2 million
(US$38.2 million), a 5.4% increase
from the corresponding period in 2018. 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 2019 were RMB1.2 million
(US$0.2 million), compared with
RMB20.0 million in the corresponding
period of 2018. The decrease was primarily due to less
performance-based income realized from public securities.
- Net revenues from other service fees for the first
quarter of 2019 were RMB43.3 million
(US$6.4 million), compared with
RMB14.9 million in the corresponding
period in 2018, primarily due to the growth of the various
value-added services Noah offers to its high net worth
clients.
- Asset Management Business
- Net revenues from recurring service fees for the first
quarter of 2019 were RMB162.7 million
(US$24.2 million), a 6.4% increase
from the corresponding period in 2018. The increase was primarily
due to the increase in assets under management.
- Net revenues from performance-based income for the first
quarter of 2019 were RMB3.6 million
(US$0.5 million), compared with
RMB39.4 million in the corresponding
period of 2018. The decrease was primarily due to less
performance-based income realized from public securities.
- Lending and Other Businesses
- Net revenues for the first quarter of 2019 were
RMB98.6 million (US$14.7 million), a 132.6% increase from the
corresponding period in 2018. The increase was primarily due to the
growth of loan origination and service fee income generated from
loans originated in the previous periods.
Operating Costs and Expenses
Operating costs
and expenses for the first quarter of 2019
were RMB587.4 million (US$87.5 million), a 5.6% increase from the
corresponding period in 2018. Operating costs and expenses
primarily consisted of compensation and benefits of RMB404.3 million (US$60.2
million), selling expenses of RMB90.5
million (US$13.5 million),
general and administrative expenses of RMB58.6 million (US$8.7
million) and other operating expenses of RMB50.8 million (US$7.6
million).
- Operating costs and expenses for the wealth
management business for the first quarter of 2019 were
RMB433.9 million (US$64.7 million), a 5.8% increase from the
corresponding period in 2018, primarily due to an increase in
compensation and benefits partially offset by a decrease in
marketing expenses.
- Operating costs and expenses for the asset management
business for the first quarter of 2019 were RMB100.1 million (US$14.9
million), a 17.9% increase from the corresponding period in
2018, primarily due to an increase in compensation and
benefits.
- Operating costs and expenses for lending and other
businesses for the first quarter of 2019 were RMB53.4 million (US$8.0
million), a 12.9% decrease from the corresponding period in
2018, primarily due to a decrease in compensation and benefits as
employees under non-lending businesses were restructured during the
quarter.
Operating Margin
Operating margin for the first quarter of 2019 was 34.0%,
an increase from 33.0% for the corresponding period in 2018.
- Operating margin for the wealth management business for
the first quarter of 2019 was 30.8%, compared with 31.0% for the
corresponding period in 2018.
- Operating margin for the asset management
business for the first quarter of 2019 was 39.1%, compared with
56.3% for the corresponding period in 2018.
- Income from operation for the lending and other
businesses for the first quarter of 2019 was RMB45.2 million (US$6.7
million), compared with an operating loss of RMB18.9 million for the corresponding period in
2018.
Investment Income
Investment income for the first quarter of 2019 was
RMB25.7 million (US$3.8 million), compared with RMB42.1 million for the corresponding period in
2018. The decrease was primarily related to the fluctuation of fair
value of equity securities, which contributed RMB8.7 million (US$1.3
million) of investment income in the first quarter of 2019,
as compared to RMB34.8 million
investment income in the corresponding period of 2018.
Income Tax Expenses
Income tax expenses for the first
quarter of 2019 were RMB79.5 million
(US$11.8 million), a 7.9% increase
from the corresponding period in 2018. The increase was primarily
due to higher taxable income.
Net Income
- Net Income
- Net income for the first quarter of 2019 was
RMB287.6 million (US$42.9 million), a 10.3% increase from the
corresponding period in 2018.
- Net margin for the first quarter of 2019 was 32.3%, up
from 31.4% for the corresponding period in 2018.
- Net income attributable to Noah shareholders for the
first quarter of 2019 was RMB284.6
million (US$42.4 million), a
6.0% increase from the corresponding period in 2018.
- Net income attributable to Noah shareholders per basic and
diluted ADS for the first quarter of 2019 was RMB4.70 (US$0.70)
and RMB4.57 (US$0.68), respectively, compared with
RMB4.70 and RMB4.44 respectively, for the corresponding
period in 2018.
- Non-GAAP Net Income Attributable to Noah
Shareholders
- Non-GAAP net income attributable to Noah shareholders
for the first quarter of 2019 was RMB304.6
million (US$45.4 million), a
19.9% increase from the corresponding period in 2018.
- Non-GAAP net margin attributable to Noah shareholders
for the first quarter of 2019 was 34.2%, up from 30.6% for the
corresponding period in 2018.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the first quarter of 2019 was RMB4.90 (US$0.73),
up from RMB4.21 for the corresponding
period in 2018.
Balance Sheet and Cash Flow
As of March 31, 2019, the Company
had RMB2,869.6 million (US$427.6 million) in cash and cash
equivalents, compared with RMB2,704.1
million as of December 31,
2018 and RMB2,151.4 million as
of March 31, 2018.
Net cash inflow from the Company's operating activities during
the first quarter of 2019 was RMB152.7
million (US$22.8 million),
driven by profit earned from normal business operations and
partially offset by working capital change.
Net cash outflow from the Company's investing activities during
the first quarter of 2019 was RMB67.5
million (US$10.1 million),
primarily due to the increase in property and equipment and various
investments and partially offset by proceeds from sales of
loans.
Net cash inflow from the Company's financing activities was
RMB88.6 million (US$13.2 million) in the first quarter of 2019,
primarily due to the capital contribution by non-controlling
shareholders of a consolidated subsidiary.
2019 FORECAST
The Company estimates that non-GAAP net income attributable to
Noah shareholders for the full year 2019 will be in the range of
RMB1.13 billion to RMB1.18 billion, an increase of 11.9% to 16.8%
compared with the full year 2018. 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
2019 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time:
|
Thursday, May 16,
2019 at 8:00 p.m., U.S. Eastern Time
Friday, May 17, 2019
at 8:00 a.m., Hong Kong Time
|
Dial in
details:
|
|
- United States
Toll Free
|
+1-888-317-6003
|
- Mainland China
Toll Free
|
4001-206-115
|
- Hong Kong Toll
Free
|
800-963-976
|
- International
|
+1-412-317-6061
|
Conference
Title:
|
Noah Holdings First
Quarter 2019 Earnings Call
|
Participant Entry
No.:
|
1098879
|
Participants will need to dial in 10-15 minutes early and use
this 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 May 23,
2019 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088
(International Toll). The replay access code is 10131248.
A live and archived webcast of the conference call will be
available at Noah's investor relations website under the News &
Events section at ir.noahgroup.com.
DISCUSSION OF RECENTLY ADOPTED ACCOUNTING STANDARD AND
NON-GAAP MEASURES
In the first quarter of 2019, the Company adopted Accounting
Standards Update (ASU) 2016-02, Leases (Topic 842), which
supersedes the lease accounting guidance under Topic 840, and
generally requires lessees to recognize operating and financing
lease liabilities and corresponding right-of-use (ROU) assets on
the balance sheet and to provide enhanced disclosures surrounding
the amount, timing and uncertainty of cash flows arising from
leasing arrangements. We adopted the new guidance using the
modified retrospective transition approach by applying the new
standard to all leases existing at the date of initial application
and not restating comparative periods. The most significant impact
was the recognition of ROU assets and lease liabilities for
operating leases. The Company also elected the package of practical
expedients, which among other things, does not require reassessment
of lease classification.
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, fair value changes of equity investments
(unrealized), adjustment for sale of equity securities and net of
tax impact, if any. See "Reconciliation of GAAP to Non-GAAP
Results" at the end of this press release.
The non-GAAP financial measures disclosed by the Company should
not be considered a substitute for financial measures prepared in
accordance with U.S. GAAP. The financial results reported in
accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP
results should be carefully evaluated. The non-GAAP financial
measures used by the Company may be prepared differently from and,
therefore, may not be comparable to similarly titled measures used
by other companies.
When evaluating the Company's operating performance in the
periods presented, management reviewed the foregoing non-GAAP net
income attributable to Noah shareholders and per diluted ADS and
non-GAAP net margin attributable to Noah shareholders to supplement
U.S. GAAP financial data. As such, the Company's management
believes that the presentation of the non-GAAP financial measures
provides important supplemental information to investors regarding
financial and business trends relating to its results of operations
in a manner consistent with that used by
management.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH) is a leading wealth and asset
management service provider in China with a focus on high net worth
individuals. In the first quarter of 2019, Noah distributed
RMB28.0 billion (US$4.2 billion) of financial products. Through
Gopher Asset Management, Noah had assets under management of
RMB171.1 billion (US$25.5 billion) as of March 31, 2019.
Noah's wealth management business primarily distributes credit,
private equity, public securities and insurance products
denominated in RMB and other currencies. Noah delivers customized
financial solutions to clients through a network of 1,496
relationship managers across 313 service centers in 83 cities in
mainland China, and serves the
international investment needs of its clients through offices in
Hong Kong, Taiwan, United
States, Canada,
Australia and Singapore. The Company's wealth management
business had 274,893 registered clients as of March 31, 2019. As a leading alternative
multi-asset manager in China,
Gopher Asset Management manages private equity, real estate, public
securities, credit and multi-strategy investments
denominated in Renminbi and other currencies. The Company also
provides lending services and other services including an online
financial advisory platform and payment technology services.
For more information, please visit Noah at
ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
first quarter of 2019 ended March 31,
2019 are stated in RMB. This announcement contains currency
conversions of certain RMB amounts into US$ 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 RMB6.7112 to US$1.00, the effective noon buying rate for
March 29, 2019 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 2019 and quotations from management
in this announcement, as well as Noah's strategic and operational
plans, contain forward-looking statements. Noah may also make
written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission, in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about Noah's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
Noah's actual results to differ materially from those contained in
any forward-looking statement, including but not limited to the
following: its goals and strategies; its future business
development, financial condition and results of operations; the
expected growth of the wealth management and asset management
market in China and
internationally; its expectations regarding demand for and market
acceptance of the products it distributes; its expectations
regarding keeping and strengthening its relationships with key
clients; relevant government policies and regulations relating to
its industries; its ability to attract and retain qualified
employees; its ability to stay abreast of market trends and
technological advances; its plans to invest in research and
development to enhance its product choices and service offerings;
competition in its industries in China and internationally; general economic
and business conditions in China;
and its ability to effectively protect its intellectual property
rights and not to infringe on the intellectual property rights of
others. Further information regarding these and other risks is
included in Noah's filings with the U.S. Securities and Exchange
Commission, including its annual reports on Form 20-F. All
information provided in this press release and in the attachments
is as of the date of this press release, and Noah does not
undertake any obligation to update any such information, including
forward-looking statements, as a result of new information, future
events or otherwise, except as required under the applicable
law.
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
As of
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
2,704,091
|
|
2,869,638
|
|
427,589
|
|
|
Restricted
cash
|
2,500
|
|
2,500
|
|
373
|
|
|
Short-term
investments (including short-term investments
measured at fair value of RMB438,077
thousands and
RMB469,205 thousands, as of December 31,
2018 and
March 31, 2019, respectively)
|
450,477
|
|
501,646
|
|
74,748
|
|
|
Accounts receivable,
net of allowance for doubtful accounts
of nil as of December 31, 2018 and March
31, 2019
|
282,431
|
|
330,770
|
|
49,286
|
|
|
Loans receivable,
net
|
620,219
|
|
507,650
|
|
75,642
|
|
|
Amounts due from
related parties
|
572,201
|
|
664,305
|
|
98,985
|
|
|
Loans receivable from
factoring business
|
18,893
|
|
14,010
|
|
2,088
|
|
|
Other current
assets
|
453,269
|
|
476,160
|
|
70,950
|
|
|
Total current
assets
|
5,104,081
|
|
5,366,679
|
|
799,661
|
|
Long-term investments
(including long-term investments
measured at fair value of
RMB609,151 thousands and
RMB687,159 thousands, as of December 31,
2018 and
March 31, 2019, respectively)
|
1,025,065
|
|
1,056,387
|
|
157,407
|
|
Investment in
affiliates
|
1,375,110
|
|
1,401,542
|
|
208,836
|
|
Property and
equipment, net
|
346,653
|
|
332,570
|
|
49,554
|
|
Operating lease
right-of-use assets, net
|
-
|
|
290,062
|
|
43,220
|
|
Non-current deferred
tax assets
|
113,384
|
|
113,383
|
|
16,895
|
|
Other non-current
assets
|
49,971
|
|
67,577
|
|
10,068
|
Total
Assets
|
8,014,264
|
|
8,628,200
|
|
1,285,641
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
671,200
|
|
727,796
|
|
108,445
|
|
|
Income tax
payable
|
54,296
|
|
106,337
|
|
15,845
|
|
|
Deferred
revenues
|
142,925
|
|
154,723
|
|
23,054
|
|
|
Other current
liabilities
|
722,652
|
|
540,184
|
|
80,490
|
|
|
Total current
liabilities
|
1,591,073
|
|
1,529,040
|
|
227,834
|
|
Operating lease
liabilities, non-current
|
-
|
|
311,650
|
|
46,437
|
|
Non-current deferred
tax liabilities
|
67,092
|
|
66,992
|
|
9,982
|
|
Convertible
notes
|
145,004
|
|
-
|
|
-
|
|
Other non-current
liabilities
|
35,718
|
|
28,638
|
|
4,267
|
|
Total
Liabilities
|
1,838,887
|
|
1,936,320
|
|
288,520
|
|
Equity
|
6,175,377
|
|
6,691,880
|
|
997,121
|
Total Liabilities
and Equity
|
8,014,264
|
|
8,628,200
|
|
1,285,641
|
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
|
|
2018
|
|
2019
|
|
2019
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
219,541
|
|
216,643
|
|
32,281
|
|
(1.3%)
|
Recurring service
fees
|
143,932
|
|
132,476
|
|
19,740
|
|
(8.0%)
|
Performance-based
income
|
20,657
|
|
1,094
|
|
163
|
|
(94.7%)
|
Other service
fees
|
59,989
|
|
145,377
|
|
21,662
|
|
142.3%
|
Total revenues from
others
|
444,119
|
|
495,590
|
|
73,846
|
|
11.6%
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
98,384
|
|
107,908
|
|
16,079
|
|
9.7%
|
Recurring service
fees
|
254,067
|
|
288,156
|
|
42,937
|
|
13.4%
|
Performance-based
income
|
39,048
|
|
3,758
|
|
560
|
|
(90.4%)
|
Total revenues from
funds Gopher
manages
|
391,499
|
|
399,822
|
|
59,576
|
|
2.1%
|
Total
revenues
|
835,618
|
|
895,412
|
|
133,422
|
|
7.2%
|
Less: VAT related
surcharges
|
(4,699)
|
|
(5,528)
|
|
(824)
|
|
17.6%
|
Net
revenues
|
830,919
|
|
889,884
|
|
132,598
|
|
7.1%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(158,701)
|
|
(167,268)
|
|
(24,924)
|
|
5.4%
|
Performance fee
compensation
|
(6,200)
|
|
(1,276)
|
|
(190)
|
|
(79.4%)
|
Other
compensations
|
(195,812)
|
|
(235,761)
|
|
(35,129)
|
|
20.4%
|
Total compensation and
benefits
|
(360,713)
|
|
(404,305)
|
|
(60,243)
|
|
12.1%
|
Selling
expenses
|
(106,259)
|
|
(90,456)
|
|
(13,478)
|
|
(14.9%)
|
General and
administrative
expenses
|
(55,929)
|
|
(58,550)
|
|
(8,724)
|
|
4.7%
|
Other operating
expenses
|
(37,963)
|
|
(50,828)
|
|
(7,574)
|
|
33.9%
|
Government
subsidies
|
4,488
|
|
16,780
|
|
2,500
|
|
273.9%
|
Total operating costs
and
expenses
|
(556,376)
|
|
(587,359)
|
|
(87,519)
|
|
5.6%
|
Income from
operations
|
274,543
|
|
302,525
|
|
45,079
|
|
10.2%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
22,867
|
|
23,123
|
|
3,445
|
|
1.1%
|
Interest
expenses
|
(6,869)
|
|
(430)
|
|
(64)
|
|
(93.7%)
|
Investment
income
|
42,132
|
|
25,663
|
|
3,824
|
|
(39.1%)
|
Other
income (expense)
|
1,163
|
|
(1,928)
|
|
(287)
|
|
(265.8%)
|
Total other
income
|
59,293
|
|
46,428
|
|
6,918
|
|
(21.7%)
|
Income before taxes
and income
from equity in affiliates
|
333,836
|
|
348,953
|
|
51,997
|
|
4.5%
|
Income tax
expense
|
(73,662)
|
|
(79,492)
|
|
(11,845)
|
|
7.9%
|
Income from equity in
affiliates
|
652
|
|
18,123
|
|
2,700
|
|
2,679.6%
|
Net
income
|
260,826
|
|
287,584
|
|
42,852
|
|
10.3%
|
Less: net (loss)
income
attributable to non-controlling
interests
|
(7,639)
|
|
3,007
|
|
448
|
|
N.A.
|
Net income
attributable to Noah
shareholders
|
268,465
|
|
284,577
|
|
42,404
|
|
6.0%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
4.70
|
|
4.70
|
|
0.70
|
|
-
|
Income per ADS,
diluted
|
4.44
|
|
4.57
|
|
0.68
|
|
2.9%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
33.0%
|
|
34.0%
|
|
34.0%
|
|
|
Net margin
|
31.4%
|
|
32.3%
|
|
32.3%
|
|
|
Weighted average
ADS
equivalent[1]:
|
|
|
|
|
|
|
|
Basic
|
57,166,048
|
|
60,570,704
|
|
60,570,704
|
|
|
Diluted
|
61,384,898
|
|
62,355,964
|
|
62,355,964
|
|
|
ADS equivalent
outstanding at end
of period
|
57,225,760
|
|
61,180,845
|
|
61,180,845
|
|
|
|
|
|
|
|
|
|
|
|
[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
|
|
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
Change
|
|
2018
|
|
2019
|
|
2019
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
260,826
|
|
287,584
|
|
42,851
|
|
10.3%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(34,863)
|
|
(30,858)
|
|
(4,598)
|
|
(11.5%)
|
Fair value fluctuation
of available for sale
Investment (after tax)
|
1,376
|
|
74
|
|
11
|
|
(94.6%)
|
Comprehensive
income
|
227,339
|
|
256,800
|
|
38,264
|
|
13.0%
|
Less: Comprehensive
(loss) income
attributable to non-controlling interests
|
(7,579)
|
|
3,217
|
|
479
|
|
N.A.
|
Comprehensive
income attributable to
Noah shareholders
|
234,918
|
|
253,583
|
|
37,785
|
|
7.9%
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
As
of
|
|
|
|
March 31,
2018
|
|
March 31,
2019
|
|
Change
|
|
|
|
|
|
|
Number of registered
clients
|
196,927
|
|
274,893
|
|
39.6%
|
Number of
relationship managers
|
1,386
|
|
1,496
|
|
7.9%
|
Number of cities
under coverage in mainland
China
|
81
|
|
83
|
|
2.5%
|
|
|
|
Three months
ended
|
|
|
|
March 31,
2018
|
|
March 31,
2019
|
|
Change
|
|
(in millions of RMB,
except number of active clients and
percentages)
|
Number of active
clients
|
5,449
|
|
8,117
|
|
49.0%
|
Transaction
value:
|
|
|
|
|
|
Credit
products
|
13,247
|
|
22,101
|
|
66.8%
|
Private equity
products
|
6,279
|
|
1,333
|
|
(78.8%)
|
Public securities
products
|
7,854
|
|
3,205
|
|
(59.2%)
|
Other
products
|
433
|
|
1,401
|
|
223.5%
|
Total transaction
value
|
27,813
|
|
28,040
|
|
0.8%
|
Average transaction
value per active client
|
5.10
|
|
3.45
|
|
(32.3%)
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
|
Three months ended
March 31, 2019
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending
and Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
216,180
|
|
463
|
|
-
|
|
216,643
|
Recurring service
fees
|
131,618
|
|
858
|
|
-
|
|
132,476
|
Performance-based
income
|
1,094
|
|
-
|
|
-
|
|
1,094
|
Other service
fees
|
43,445
|
|
1,166
|
|
100,766
|
|
145,377
|
Total revenues from
others
|
392,337
|
|
2,487
|
|
100,766
|
|
495,590
|
Revenues from funds
Gopher manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
107,908
|
|
-
|
|
-
|
|
107,908
|
Recurring service
fees
|
125,751
|
|
162,405
|
|
-
|
|
288,156
|
Performance-based
income
|
97
|
|
3,661
|
|
-
|
|
3,758
|
Total revenues from
funds Gopher
manages
|
233,756
|
|
166,066
|
|
-
|
|
399,822
|
Total
revenues
|
626,093
|
|
168,553
|
|
100,766
|
|
895,412
|
Less: VAT related
surcharges
|
(2,730)
|
|
(628)
|
|
(2,170)
|
|
(5,528)
|
Net
revenues
|
623,363
|
|
167,925
|
|
98,596
|
|
889,884
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(167,125)
|
|
-
|
|
(143)
|
|
(167,268)
|
Performance fee
compensation
|
-
|
|
(1,276)
|
|
-
|
|
(1,276)
|
Other
compensations
|
(146,458)
|
|
(63,936)
|
|
(25,367)
|
|
(235,761)
|
Total compensation and
benefits
|
(313,583)
|
|
(65,212)
|
|
(25,510)
|
|
(404,305)
|
Selling
expenses
|
(83,114)
|
|
(3,903)
|
|
(3,439)
|
|
(90,456)
|
General and
administrative expenses
|
(37,336)
|
|
(15,261)
|
|
(5,953)
|
|
(58,550)
|
Other operating
expenses
|
(15,086)
|
|
(17,266)
|
|
(18,476)
|
|
(50,828)
|
Government
subsidies
|
15,218
|
|
1,562
|
|
-
|
|
16,780
|
Total operating costs
and expenses
|
(433,901)
|
|
(100,080)
|
|
(53,378)
|
|
(587,359)
|
Income from
operations
|
189,462
|
|
67,845
|
|
45,218
|
|
302,525
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
|
Three months ended
March 31, 2018
|
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending
and Other
Businesses
|
|
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
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
98,318
|
|
66
|
|
-
|
|
98,384
|
Recurring service
fees
|
103,069
|
|
150,998
|
|
-
|
|
254,067
|
Performance-based
income
|
-
|
|
39,048
|
|
-
|
|
39,048
|
Total revenues from
funds Gopher
manages
|
201,387
|
|
190,112
|
|
-
|
|
391,499
|
Total
revenues
|
597,118
|
|
195,295
|
|
43,205
|
|
835,618
|
Less: VAT 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
|
Supplement Revenue
Information for Segment
|
(unaudited)
|
|
|
Three months ended
March 31, 2019
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending and
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
401,523
|
|
145,608
|
|
100,766
|
|
647,897
|
Hong Kong
|
180,596
|
|
20,943
|
|
-
|
|
201,539
|
Others
|
43,974
|
|
2,002
|
|
-
|
|
45,976
|
Total
revenues
|
626,093
|
|
168,553
|
|
100,766
|
|
895,412
|
|
|
|
Three months ended
March 31, 2018
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending
and Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
463,431
|
|
150,429
|
|
43,205
|
|
657,065
|
Hong Kong
|
133,687
|
|
44,866
|
|
-
|
|
178,553
|
Total
revenues
|
597,118
|
|
195,295
|
|
43,205
|
|
835,618
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited)[8]
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
March
31,
|
|
Change
|
|
|
2018
|
|
2019
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
|
268,465
|
|
284,577
|
|
6.0%
|
|
Adjustment for
share-based compensation related to:
|
|
|
|
|
|
|
Share
options
|
12,210
|
|
13,413
|
|
9.9%
|
|
Restricted
shares
|
10,491
|
|
16,203
|
|
54.4%
|
|
Less: gains from fair
value changes of equity securities
(unrealized)
|
34,788
|
|
8,742
|
|
(74.9%)
|
|
Add: gains from sales
of equity securities (realized)
|
-
|
|
4,885
|
|
N.A.
|
|
Less: Tax effect of
adjustments
|
2,283
|
|
5,714
|
|
150.3%
|
|
Adjusted net income
attributable to Noah shareholders
(non-GAAP)
|
254,095
|
|
304,622
|
|
19.9%
|
|
|
|
|
|
|
|
|
Net
margin attributable to Noah shareholders
|
32.3%
|
|
32.0%
|
|
|
|
Non-GAAP net margin
attributable to Noah shareholders
|
30.6%
|
|
34.2%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders per ADS,
diluted
|
4.44
|
|
4.57
|
|
2.9%
|
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted
|
4.21
|
|
4.90
|
|
16.4%
|
|
[8] Noah's Non-GAAP financial
measures are its corresponding GAAP financial measures excluding
the effects of all forms of share-based compensation, fair value
changes of equity securities (unrealized), adjustment for sale of
equity securities and net of tax impact, if any.
|
View original
content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-first-quarter-of-2019-300851668.html
SOURCE Noah Holdings Limited