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 Companys 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 Companys 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 Companys 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.
Noahs 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 Companys 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
.
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