SHANGHAI, Nov. 11, 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 global investment and
asset allocation services for high net worth individuals and
enterprises, today announced its unaudited financial results
for the third quarter of 2019.
THIRD QUARTER 2019 FINANCIAL HIGHLIGHTS
- Net revenues for the third quarter of 2019
were RMB842.0 million (US$117.8 million), a 0.4% increase from the
corresponding period in 2018.
(RMB
millions,
except
percentages)
|
Q3 2018
|
|
|
Q3 2019
|
|
|
YoY Change
|
Wealth
management
|
576.9
|
|
|
542.4
|
|
|
(6.0%)
|
Asset
management
|
198.5
|
|
|
240.4
|
|
|
21.1%
|
Lending and other
businesses
|
63.6
|
|
|
59.2
|
|
|
(6.9%)
|
Total net
revenues
|
839.0
|
|
|
842.0
|
|
|
0.4%
|
- Income from operations for the third quarter of 2019 was
RMB234.3 million (US$32.8 million), a 13.6% decrease from the
corresponding period in 2018.
(RMB
millions,
except
percentages)
|
Q3 2018
|
|
|
Q3 2019
|
|
|
YoY Change
|
Wealth
management
|
169.2
|
|
|
83.5
|
|
|
(50.6%)
|
Asset
management
|
101.7
|
|
|
145.7
|
|
|
43.3%
|
Lending and other
businesses
|
0.2
|
|
|
5.1
|
|
|
2,450.0%
|
Total income from
operations
|
271.1
|
|
|
234.3
|
|
|
(13.6%)
|
- Net income attributable to Noah shareholders for the
third quarter of 2019 was RMB191.6
million (US$26.8 million), a
7.8% decrease from the corresponding period in 2018.
- Non-GAAP[1] net income attributable to
Noah shareholders for the third quarter of 2019 was
RMB353.7 million (US$49.5 million), a 23.7% 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.
|
THIRD 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 private equity, public securities,
credit and insurance products denominated in RMB and other
currencies.
- Total number of registered clients as of September 30, 2019 was 288,245, a 21.7% increase
from September 30, 2018.
- Total number of active clients[2] during the
third quarter of 2019 was 3,409, a 17.0% decrease from the
corresponding period in 2018.
- Aggregate value of financial products
distributed during the third quarter of 2019 was RMB13.0 billion (US$1.8
billion), a 53.7% decrease from the corresponding period in
2018, due to the fact that the Company is no longer offering
single-counterparty credit products to clients.
Product
type
|
Three months ended
September 30,
|
|
2018
|
|
2019
|
|
(RMB in billions,
except percentages)
|
Credit
products
|
22.8
|
|
81.4%
|
|
1.5
|
|
11.7%
|
Private equity
products
|
3.3
|
|
11.8%
|
|
3.5
|
|
26.8%
|
Public securities
products
|
1.5
|
|
5.4%
|
|
7.5
|
|
57.5%
|
Other
products
|
0.4
|
|
1.4%
|
|
0.5
|
|
4.0%
|
All
products
|
28.0
|
|
100.0%
|
|
13.0
|
|
100.0%
|
- Average transaction value per active
client[3] for the third quarter of 2019
was RMB3.8 million (US$0.5 million), a 44.3% decrease from the
corresponding period in 2018.
- Coverage network in mainland China included 307 service centers covering 81
cities as of September 30, 2019,
compared with 306 service centers covering 83 cities as of
June 30, 2019.
- Number of relationship managers was 1,368 as of
September 30, 2019, a 4.2% decrease
from June 30, 2019, as the Company
removed underperforming relationship managers as part of its
operational streamlining efforts.
[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] "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
Co., Ltd. ("Gopher Asset Management"), is a leading alternative
multi-asset manager in China also
with international offices in Hong
Kong, United States and
Canada. 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 September 30, 2019 were RMB176.5 billion (US$24.7
billion), a 2.4% decrease from June
30, 2019 due to the voluntary accelerated repayments of
certain credit products and a 7.5% increase from September 30, 2018.
Investment
type
|
As of
June 30,
2019
|
|
Growth
|
|
Distribution/
Redemption
|
|
As of
September 30,
2019
|
|
(RMB billions,
except percentages)
|
Private
equity
|
104.4
|
|
57.7%
|
|
2.0
|
|
0.5
|
|
105.9
|
|
60.0%
|
Credit
|
40.6
|
|
22.5%
|
|
0.1
|
|
7.3
|
|
33.4
|
|
19.0%
|
Real
estate
|
19.1
|
|
10.6%
|
|
1.7
|
|
2.1
|
|
18.7
|
|
10.6%
|
Public
securities[4]
|
8.2
|
|
4.5%
|
|
1.6
|
|
0.2
|
|
9.6
|
|
5.4%
|
Multi-strategies
|
8.5
|
|
4.7%
|
|
0.4
|
|
-
|
|
8.9
|
|
5.0%
|
All
Investments
|
180.8
|
|
100.0%
|
|
5.8
|
|
10.1
|
|
176.5
|
|
100.0%
|
|
[4] The
distribution/redemption of public securities also includes market
appreciation or depreciation.
|
Lending and Other Businesses
The Company's lending 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 third quarter of 2019 was
RMB1.3 billion, compared with
RMB4.0 billion in the corresponding
period of 2018 as the Company reduced loan origination in response
to market changes.
Mr. Yi Zhao, Group President of
Noah, said, "In response to the economic environment and our
transformation strategy, we are no longer offering
single-counterparty credit products to our clients, which is
reflected in the decline of the credit product transaction value in
the third quarter. Instead, we are focusing on satisfying our
clients' fixed income investment needs with public securities
products such as standardized NAV-based bond funds, mutual funds,
etc. We believe the distribution of these new products will
continue to ramp up and drive our transaction value growth in the
future. Despite structural changes in our product mix, we still
achieved resilient financial results. Moreover, we believe client
confidence is gradually recovering and our standardized products
will meet our clients' expectations. Looking ahead, in the face of
a rapidly changing environment, Noah will continue to focus on
implementing product transformation, expanding its overseas
business and building up its comprehensive portfolio of services,
in order to further enhance our financial platform to fully service
high net worth clients."
THIRD QUARTER 2019 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2019 were
RMB842.0 million (US$117.8 million), a 0.4% increase from the
corresponding period in 2018, primarily driven by increased
recurring service fee revenues and other service fees, and offset
by decreased one-time commissions.
- Wealth Management Business
- Net revenues from one-time commissions for
the third quarter of 2019 were RMB149.6
million (US$20.9 million), a
34.7% decrease from the corresponding period in 2018 due to a
decrease in credit products distributed in third quarter of
2019.
- Net revenues from recurring service fees for the
third quarter of 2019 were RMB318.9
million (US$44.6 million), a
4.6% 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 third quarter of 2019 were RMB4.3
million (US$0.6 million), a
64.4% decrease from the corresponding period of 2018, primarily due
to a decrease in performance-based income from public securities
products.
- Net revenues from other service fees for the third
quarter of 2019 were RMB69.6 million
(US$9.7 million), an 124.6% increase
from RMB31.0 million in the
corresponding period in 2018, primarily due to the growth of
various value-added services Noah offers to its high net worth
clients.
- Asset Management Business
- Net revenues from recurring service fees for the third
quarter of 2019 were RMB200.4 million
(US$28.0 million), a 16.5% increase
from the corresponding period in 2018. The increase was primarily
due to the increase in assets under management and service fees
income generated from voluntary accelerated repayments of certain
credit products in the third quarter of 2019.
- Net revenues from performance-based income for the third
quarter of 2019 were RMB38.1 million
(US$5.3 million), a 78.6% increase
from the corresponding period in 2018, primarily due to an increase
in performance-based income from certain real estate funds.
- Lending and Other Businesses
- Net revenues for the third quarter of 2019 were
RMB59.2 million (US$8.3 million), a 6.9% decrease from the
corresponding period in 2018, due to reduced loan origination in
the second and third quarters of 2019.
Operating Costs and Expenses
Operating costs
and expenses for the third quarter of 2019
were RMB607.7 million (US$85.0 million), a 7.0% increase from the
corresponding period in 2018. Operating costs and expenses
primarily consisted of compensation and benefits of RMB394.8 million (US$55.2
million), selling expenses of RMB83.6
million (US$11.7 million),
general and administrative expenses of RMB104.5 million (US$14.6
million) and other operating expenses of RMB52.8 million (US$7.4
million).
- Operating costs and expenses for the wealth
management business for the third quarter of 2019 were
RMB458.8 million (US$64.2 million), a 12.5% increase from the
corresponding period in 2018, primarily due to an increase in
compensation and benefits and legal fees.
- Operating costs and expenses for the asset management
business for the third quarter of 2019 were RMB94.8 million (US$13.3
million), a 2.1% decrease from the corresponding period in
2018, primarily due to a decrease in compensation and
benefits.
- Operating costs and expenses for the lending and
other businesses for the third quarter of 2019 were
RMB54.1 million (US$7.6 million), a 14.7% decrease from the
corresponding period in 2018, primarily due to a decrease in
compensation and benefits as employees under non-lending businesses
were restructured since the beginning of 2019.
Operating Margin
Operating margin for the third quarter of 2019 was 27.8%,
compared with 32.3% for the corresponding period in 2018.
- Operating margin for the wealth management business for
the third quarter of 2019 was 15.4%, compared with 29.3% for the
corresponding period in 2018, due to legal expenses incurred
related to Camsing case.
- Operating margin for the asset management
business for the third quarter of 2019 was 60.6%, compared with
51.2% for the corresponding period in 2018.
- Income from operations for the lending and other
businesses for the third quarter of 2019 was RMB5.1 million (US$0.7
million), compared with RMB0.2
million in the corresponding period of 2018.
Investment Loss
Investment Loss for the third quarter of 2019 was
RMB48.4 million (US$6.8 million), compared with investment
loss of RMB16.8 million for the
corresponding period in 2018. The loss was primarily due to changes
in fair value of equity securities and other investments.
Income Tax Expenses
Income tax expenses for the third
quarter of 2019 were RMB44.7 million
(US$6.3 million), a 27.6% decrease
from the corresponding period in 2018, primarily due to lower
taxable income.
Net Income
- Net Income
- Net income for the third quarter of 2019 was
RMB203.8 million (US$28.5 million), which is largely unchanged
compared to the corresponding period in 2018.
- Net margin for the third quarter of 2019 was 24.2%,
down from 24.5% for the corresponding period in 2018.
- Net income attributable to Noah shareholders for the
third quarter of 2019 was RMB191.6
million (US$26.8 million), a
7.8% decrease from the corresponding period in 2018.
- Net margin attributable to Noah shareholders for the
third quarter of 2019 was 22.8%, down from 24.8% for the
corresponding period in 2018.
- Net income attributable to Noah shareholders per basic
and diluted ADS for the third quarter of 2019 was
RMB3.13 (US$0.44) and RMB3.10 (US$0.43),
respectively, compared with RMB3.51
and RMB3.41 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 third quarter of 2019 was RMB353.7 million (US$49.5
million), a 23.7% increase from the corresponding period in
2018.
- Non-GAAP net margin attributable to Noah shareholders for
the third quarter of 2019 was 42.0%, up from 34.1% for the
corresponding period in 2018.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the third quarter of 2019 was RMB5.73 (US$0.80),
up from RMB4.68 for the corresponding
period in 2018.
Balance Sheet and Cash Flow
As of September 30, 2019, the
Company had RMB3,669.2 million
(US$513.3 million) in cash and cash
equivalents, compared with RMB2,360.1
million as of September 30,
2018 and RMB2,873.7 million as
of June 30, 2019.
Net cash inflow from the Company's operating activities during
the third quarter of 2019 was RMB220.4
million (US$30.8 million),
compared to net cash inflow of RMB449.8
million in the corresponding period in 2018. The decrease
was mainly due to changes in working capital.
Net cash inflow from the Company's investing activities during
the third quarter of 2019 was RMB440.0
million (US$61.6 million),
compared to net cash outflow of RMB203.6
million in the corresponding period in 2018. The cash inflow
was primarily due to proceeds from the disposal of various
investments.
Net cash inflow from the Company's financing activities was
RMB40.6 million (US$5.7 million) in the third quarter of 2019,
compared to net cash outflow of RMB16.2
million in the corresponding period in 2018, primarily
due to the capital contribution by non-controlling shareholders of
a consolidated subsidiary.
OTHER COMPANY DEVELOPMENTS
The Company also announced today that Mr. Grant Pan has been appointed as Chief Financial
Officer, succeeding Mr. Shang Chuang who has decided to depart Noah
for new professional pursuits, effective November 30, 2019.
Mr. Pan brings over 17 years of experience to the CFO role in
areas such as corporate finance and corporate strategy. He has been
serving as COO for Noah's asset management business since 2017.
Prior to joining Noah, Mr. Pan was an audit partner with a Big Four
accounting firm and assisted a number of successful offerings of
China-based companies in the
global capital markets. Mr. Pan received his MBA and Master's
Degree from Northeastern University in
Boston, Massachusetts, and
Bachelor's Degree from Beijing Foreign Studies University. He is a
member of AICPA, CICPA and HKICPA.
Ms. Jingbo Wang, Chairlady and
CEO of Noah, commented, "Mr. Pan is an experienced veteran in the
financial services industry and brings a blend of operational and
strategic experience to our finance operations since joining our
company. We are confident that his extensive experience with
financial service firms will prove invaluable to our finance
planning and execution after stepping into his new role. Meanwhile,
we want to extend our warm appreciation to Shang for his services
during the past eight years in various key roles of Noah. We
respect his decision to return to Hong
Kong to pursue new professional endeavors and sincerely wish
him the best."
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
RMB1.0 billion to RMB1.1 billion, the mid-point of which
representing an increase of 3.9% compared with the full year 2018.
This forecast reflects management's current business outlook and is
subject to further change.
CONFERENCE CALL
Senior management will host a combined English and Chinese
language conference call to discuss the Company's third quarter
2019 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time:
|
Monday, November 11,
2019 at 8:00 p.m., U.S. Eastern Time
Tuesday, November 12,
2019 at 9:00 a.m., Hong Kong Time
|
Dial in
details:
|
|
- United States
Toll Free
|
+1-866-311-7654
|
- Mainland China
Toll Free
|
4001-201-203
|
- Hong Kong Toll
Free
|
800-905-945
|
- International
|
+1-412-317-5227
|
Conference
Title:
|
Noah
Holdings Third Quarter 2019 Earnings Call
|
Participant
Password:
|
Noah Holdings
Limited
|
A telephone replay will be available starting one hour after the
end of the conference call until November
18, 2019 at +1-877-344-7529 (US Toll Free) or
+1-412-317-0088 (International Toll). The replay access code is
10136399.
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
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 nine months of 2019, Noah distributed
RMB65.4 billion (US$9.5 billion) of financial products. Through
Gopher Asset Management, Noah had assets under management of
RMB176.5 billion (US$24.7 billion) as of September 30, 2019.
Noah's wealth management business primarily distributes private
equity, public securities, credit and insurance products
denominated in RMB and other currencies. Noah delivers customized
financial solutions to clients through a network of 1,368
relationship managers across 307 service centers in 81 cities in
mainland China, and serves the
international investment needs of its clients through offices in
Hong Kong, Taiwan, United
States, Canada,
Australia and Singapore. The Company's wealth management
business had 288,245 registered clients as of September 30, 2019. As a leading alternative
multi-asset manager in China,
Gopher Asset Management manages private equity, real estate, public
securities, credit and multi-strategy investments denominated in
Renminbi and other currencies. The Company also provides lending
services and other businesses, including online financial advisory
platform and payment technology services.
For more information, please visit Noah at
ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
third quarter of 2019 ended September 30,
2019 are stated in RMB. This announcement contains currency
conversions of certain RMB amounts into US$ 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 RMB7.1477 to US$1.00, the effective noon buying rate for
September 30, 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; investment risks
associated with financial products distributed to Noah's investors,
including the risk of default by counterparties or loss of value
due to market or business conditions or misconduct by
counterparties; uncertainty regarding the outcome of the legal
actions which are being or may be taken by the Company's affiliates
in connection with the Camsing situation, including its ability to
recoup amounts extended as financing to third parties and the risk
of potential claims by investors; 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.
Contacts:
Noah Holdings Limited
Ryan Teng
Tel: +86-21-8035-9221
ir@noahgroup.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
As of
|
|
June 30,
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2019
|
|
2019
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
2,873,740
|
|
3,669,150
|
|
513,333
|
|
|
Restricted
cash
|
2,500
|
|
2,500
|
|
350
|
|
|
Short-term
investments
|
747,710
|
|
557,130
|
|
77,945
|
|
|
Accounts
receivable
|
292,971
|
|
287,818
|
|
40,267
|
|
|
Loans receivable,
net
|
532,284
|
|
541,703
|
|
75,787
|
|
|
Amounts due from
related parties
|
799,391
|
|
666,584
|
|
93,259
|
|
|
Loans receivable from
factoring business
|
69,270
|
|
60,000
|
|
8,394
|
|
|
Other current
assets
|
314,624
|
|
298,403
|
|
41,748
|
|
|
Total current
assets
|
5,632,490
|
|
6,083,288
|
|
851,083
|
|
|
|
|
|
|
|
|
Long-term
investments
|
1,141,506
|
|
930,055
|
|
130,119
|
|
Investment in
affiliates
|
1,411,072
|
|
1,289,296
|
|
180,379
|
|
Property and
equipment, net
|
315,788
|
|
307,680
|
|
43,046
|
|
Operating lease
right-of-use assets, net
|
373,784
|
|
367,873
|
|
51,467
|
|
Non-current deferred
tax assets
|
116,306
|
|
126,914
|
|
17,756
|
|
Other non-current
assets
|
75,869
|
|
79,654
|
|
11,144
|
Total
Assets
|
9,066,815
|
|
9,184,760
|
|
1,284,994
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
461,099
|
|
432,800
|
|
60,551
|
|
|
Income tax
payable
|
59,743
|
|
96,668
|
|
13,524
|
|
|
Deferred
revenues
|
144,378
|
|
192,614
|
|
26,948
|
|
|
Other current
liabilities
|
628,158
|
|
333,132
|
|
46,607
|
|
|
Total current
liabilities
|
1,293,378
|
|
1,055,214
|
|
147,630
|
|
Operating lease
liabilities, non-current
|
380,862
|
|
370,845
|
|
51,883
|
|
Non-current deferred
tax liabilities
|
66,741
|
|
65,314
|
|
9,138
|
|
Other non-current
liabilities
|
21,832
|
|
11,952
|
|
1,672
|
|
Total
Liabilities
|
1,762,813
|
|
1,503,325
|
|
210,323
|
|
Equity
|
7,304,002
|
|
7,681,435
|
|
1,074,671
|
Total Liabilities
and Equity
|
9,066,815
|
|
9,184,760
|
|
1,284,994
|
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
|
|
2018
|
|
2019
|
|
2019
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
177,863
|
|
129,786
|
|
18,158
|
|
(27.0%)
|
Recurring service
fees
|
140,293
|
|
135,201
|
|
18,915
|
|
(3.6%)
|
Performance-based
income
|
12,215
|
|
4,383
|
|
613
|
|
(64.1%)
|
Other service
fees
|
98,802
|
|
131,950
|
|
18,460
|
|
33.5%
|
Total revenues from
others
|
429,173
|
|
401,320
|
|
56,146
|
|
(6.5%)
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
54,697
|
|
21,137
|
|
2,957
|
|
(61.4%)
|
Recurring service
fees
|
338,300
|
|
386,381
|
|
54,057
|
|
14.2%
|
Performance-based
income
|
21,411
|
|
38,299
|
|
5,358
|
|
78.9%
|
Total revenues from
funds
Gopher manages
|
414,408
|
|
445,817
|
|
62,372
|
|
7.6%
|
Total
revenues
|
843,581
|
|
847,137
|
|
118,518
|
|
0.4%
|
Less: VAT related
surcharges
|
(4,597)
|
|
(5,150)
|
|
(721)
|
|
12.0%
|
Net
revenues
|
838,984
|
|
841,987
|
|
117,797
|
|
0.4%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(143,831)
|
|
(148,572)
|
|
(20,786)
|
|
3.3%
|
Others
|
(241,269)
|
|
(246,277)
|
|
(34,456)
|
|
2.1%
|
Total compensation
and
benefits
|
(385,100)
|
|
(394,849)
|
|
(55,242)
|
|
2.5%
|
Selling
expenses
|
(81,224)
|
|
(83,592)
|
|
(11,695)
|
|
2.9%
|
General and
administrative
expenses
|
(60,010)
|
|
(104,450)
|
|
(14,613)
|
|
74.1%
|
Other operating
expenses
|
(51,106)
|
|
(52,838)
|
|
(7,392)
|
|
3.4%
|
Government
grants
|
9,518
|
|
28,049
|
|
3,924
|
|
194.7%
|
Total operating costs
and
expenses
|
(567,922)
|
|
(607,680)
|
|
(85,018)
|
|
7.0%
|
Income from
operations
|
271,062
|
|
234,307
|
|
32,779
|
|
(13.6%)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
14,237
|
|
13,774
|
|
1,927
|
|
(3.3%)
|
Interest
expenses
|
1,156
|
|
-
|
|
-
|
|
N.A.
|
Investment
loss
|
(16,817)
|
|
(48,405)
|
|
(6,772)
|
|
187.8%
|
Other
expense
|
(1,836)
|
|
(5,114)
|
|
(715)
|
|
178.5%
|
Total other
expense
|
(3,260)
|
|
(39,745)
|
|
(5,560)
|
|
1,119.2%
|
Income before taxes
and
income from equity in
affiliates
|
267,802
|
|
194,562
|
|
27,219
|
|
(27.3%)
|
Income tax
expense
|
(61,804)
|
|
(44,737)
|
|
(6,259)
|
|
(27.6%)
|
Income (loss) from
equity in
affiliates
|
(796)
|
|
53,974
|
|
7,551
|
|
N.A.
|
Net
income
|
205,202
|
|
203,799
|
|
28,511
|
|
(0.7%)
|
Less: net (loss)
income
attributable to non-controlling
interests
|
(2,506)
|
|
12,201
|
|
1,707
|
|
N.A.
|
Net income
attributable to
Noah shareholders
|
207,708
|
|
191,598
|
|
26,804
|
|
(7.8%)
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
3.51
|
|
3.13
|
|
0.44
|
|
(10.8%)
|
Income per ADS,
diluted
|
3.41
|
|
3.10
|
|
0.43
|
|
(9.1%)
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
32.3%
|
|
27.8%
|
|
27.8%
|
|
|
Net margin
|
24.5%
|
|
24.2%
|
|
24.2%
|
|
|
Weighted average
ADS
equivalent[1]:
|
|
|
|
|
|
|
|
Basic
|
59,172,524
|
|
61,308,638
|
|
61,308,638
|
|
|
Diluted
|
61,615,856
|
|
61,759,161
|
|
61,759,161
|
|
|
ADS equivalent
outstanding at
end of period
|
59,430,433
|
|
61,480,292
|
|
61,480,292
|
|
|
|
|
|
|
|
|
|
|
|
[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
|
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2018
|
|
2019
|
|
2019
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
205,202
|
|
203,799
|
|
28,513
|
|
(0.7%)
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
50,719
|
|
119,641
|
|
16,738
|
|
135.9%
|
Fair value fluctuation
of available for sale
Investment (after tax)
|
(289)
|
|
(3,191)
|
|
(446)
|
|
1,004.2%
|
Comprehensive
income
|
255,632
|
|
320,249
|
|
44,805
|
|
25.3%
|
Less: Comprehensive
income (loss) attributable to
non-controlling interests
|
(2,634)
|
|
12,052
|
|
1,686
|
|
N.A.
|
Comprehensive
income attributable to
Noah shareholders
|
258,266
|
|
308,197
|
|
43,119
|
|
19.3%
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
As of
|
|
|
|
September 30,
2018
|
|
September 30,
2019
|
|
Change
|
|
|
|
|
|
|
Number of registered
clients
|
236,906
|
|
288,245
|
|
21.7%
|
Number of
relationship managers
|
1,559
|
|
1,368
|
|
(12.3%)
|
Number of cities in
mainland China under
coverage
|
83
|
|
81
|
|
(2.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
September 30,
2018
|
|
September 30,
2019
|
|
Change
|
|
(in millions of RMB,
except number of active clients and
percentages)
|
Number of active
clients
|
4,108
|
|
3,409
|
|
(17.0%)
|
Transaction
value:
|
|
|
|
|
|
Credit
products
|
22,775
|
|
1,517
|
|
(93.3%)
|
Private equity
products
|
3,300
|
|
3,477
|
|
5.4%
|
Public securities
products
|
1,490
|
|
7,444
|
|
399.6%
|
Other
products
|
430
|
|
513
|
|
19.3%
|
Total transaction
value
|
27,995
|
|
12,951
|
|
(53.7%)
|
Average transaction
value per active client
|
6.81
|
|
3.80
|
|
(44.3%)
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Three months ended
September 30, 2019
|
|
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
|
129,099
|
|
687
|
|
-
|
|
129,786
|
Recurring service
fees
|
133,825
|
|
1,376
|
|
-
|
|
135,201
|
Performance-based
income
|
4,346
|
|
37
|
|
-
|
|
4,383
|
Other service
fees
|
69,841
|
|
1,197
|
|
60,912
|
|
131,950
|
Total revenues from
others
|
337,111
|
|
3,297
|
|
60,912
|
|
401,320
|
Revenues from funds
Gopher manages
|
|
|
|
|
|
|
|
One-time
commissions
|
21,053
|
|
84
|
|
-
|
|
21,137
|
Recurring service
fees
|
186,251
|
|
200,130
|
|
-
|
|
386,381
|
Performance-based
income
|
-
|
|
38,299
|
|
-
|
|
38,299
|
Total revenues from
funds Gopher
manages
|
207,304
|
|
238,513
|
|
-
|
|
445,817
|
Total
revenues
|
544,415
|
|
241,810
|
|
60,912
|
|
847,137
|
Less: business taxes
and related
surcharges
|
(2,067)
|
|
(1,368)
|
|
(1,715)
|
|
(5,150)
|
Net
revenues
|
542,348
|
|
240,442
|
|
59,197
|
|
841,987
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(148,572)
|
|
-
|
|
-
|
|
(148,572)
|
Others
|
(155,102)
|
|
(66,914)
|
|
(24,261)
|
|
(246,277)
|
Total compensation and
benefits
|
(303,674)
|
|
(66,914)
|
|
(24,261)
|
|
(394,849)
|
Selling
expenses
|
(69,563)
|
|
(9,315)
|
|
(4,714)
|
|
(83,592)
|
General and
administrative
expenses
|
(77,370)
|
|
(17,916)
|
|
(9,164)
|
|
(104,450)
|
Other operating
expenses
|
(33,905)
|
|
(2,947)
|
|
(15,986)
|
|
(52,838)
|
Government
grants
|
25,740
|
|
2,302
|
|
7
|
|
28,049
|
Total operating costs
and expenses
|
(458,772)
|
|
(94,790)
|
|
(54,118)
|
|
(607,680)
|
Income from
operations
|
83,576
|
|
145,652
|
|
5,079
|
|
234,307
|
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
|
Supplement Revenue
Information by Geography
|
(unaudited)
|
Three months ended
September 30, 2019
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Financial
Services
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
347,744
|
|
212,137
|
|
60,912
|
|
620,793
|
Hong Kong
|
139,406
|
|
26,829
|
|
-
|
|
166,235
|
Others
|
57,265
|
|
2,844
|
|
-
|
|
60,109
|
Total
revenues
|
544,415
|
|
241,810
|
|
60,912
|
|
847,137
|
|
|
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:
|
|
|
|
|
|
|
|
Mainland
China
|
445,416
|
|
150,119
|
|
64,998
|
|
660,533
|
Hong Kong
|
133,347
|
|
48,982
|
|
-
|
|
182,329
|
Others
|
719
|
|
-
|
|
-
|
|
719
|
Total
revenues
|
579,482
|
|
199,101
|
|
64,998
|
|
843,581
|
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
|
|
|
2018
|
|
2019
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
|
207,708
|
|
191,598
|
|
(7.8%)
|
|
Adjustment for
share-based compensation
|
35,647
|
|
21,310
|
|
(40.2%)
|
|
Less: loss from fair
value changes of equity securities
(unrealized)
|
(20,686)
|
|
(6,047)
|
|
(70.8%)
|
|
Add: gains from sales
of equity securities
|
29,891
|
|
139,816
|
|
367.8%
|
|
Less: tax effect of
adjustments
|
7,961
|
|
5,059
|
|
(36.5%)
|
|
Adjusted net income
attributable to Noah shareholders
(non-GAAP)
|
285,971
|
|
353,712
|
|
23.7%
|
|
|
|
|
|
|
|
|
Net margin
attributable to Noah shareholders
|
24.8%
|
|
22.8%
|
|
|
|
Non-GAAP net margin
attributable to Noah shareholders
|
34.1%
|
|
42.0%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders per ADS,
diluted
|
3.41
|
|
3.10
|
|
(9.1%)
|
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted
|
4.68
|
|
5.73
|
|
22.4%
|
|
|
[5] 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-third-quarter-of-2019-300955403.html
SOURCE Noah Holdings Limited