SHANGHAI, March 24, 2020 /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
preliminary[1] financial results for the fourth quarter
of 2019 and the full year ended December 31,
2019.
FULL YEAR 2019 FINANCIAL HIGHLIGHTS
- Net revenues in the full year 2019
were RMB3,391.8 million (US$487.2 million), a 3.1% increase from the full
year 2018.
(RMB
millions,
except
percentages)
|
FY
2018
|
|
FY
2019
|
|
YoY Change
|
Wealth
management
|
2,306.0
|
|
2,319.3
|
|
0.6%
|
Asset
management
|
748.5
|
|
783.5
|
|
4.7%
|
Lending and other
businesses
|
235.1
|
|
289.0
|
|
22.9%
|
Total net
revenues
|
3,289.6
|
|
3,391.8
|
|
3.1%
|
- Income from operations in the full year 2019
was RMB915.0 million (US$131.4
million), a 1.2% decrease from the full year
2018.
(RMB
millions,
except
percentages)
|
FY 2018
|
|
FY 2019
|
|
YoY Change
|
Wealth
management
|
607.2
|
|
437.8
|
|
(27.9%)
|
Asset
management
|
353.2
|
|
391.3
|
|
10.8%
|
Lending and other
businesses
|
(33.9)
|
|
85.9
|
|
N.A.
|
Total income from
operations
|
926.5
|
|
915.0
|
|
(1.2%)
|
- Net income attributable to Noah shareholders in the
full year 2019 was RMB829.2 million
(US$119.1 million), a 2.2% increase
from the full year 2018.
- Non-GAAP[2] net income attributable to Noah
shareholders in the full year 2019 was RMB1,038.2 million (US$149.1 million), a 2.7% increase from the full
year 2018.
[1] As of
the date hereof, the Company is still in the process of reviewing
the financial results of the funds of funds we manage and invest in
as the general partner or manager. Any changes in the fair
value of those investments could affect the income from equity in
affiliates, net income, net income attributable to Noah
shareholders, income per ADS and the balance of investments in
affiliates in Noah's consolidated financial statements. If there
will be any fair value adjustments associated with the above, which
have not been included in these unaudited preliminary financial
results in this press release, the Company will include such
adjustments in the audited consolidated financial statements in its
Form 20-F for the fiscal year 2019 and subsequent reporting if
necessary.
|
|
[2] 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.
|
FOURTH QUARTER 2019 FINANCIAL HIGHLIGHTS
- Net revenues for the fourth quarter
of 2019 were RMB788.3
million (US$113.2 million), a
4.1% decrease from the corresponding period in 2018.
(RMB
millions,
except
percentages)
|
Q4 2018
|
|
|
Q4 2019
|
|
|
YoY Change
|
Wealth
management
|
578.5
|
|
|
527.9
|
|
|
(8.7%)
|
Asset
management
|
160.2
|
|
|
204.1
|
|
|
27.4%
|
Lending and other
businesses
|
83.4
|
|
|
56.3
|
|
|
(32.5%)
|
Total net
revenues
|
822.1
|
|
|
788.3
|
|
|
(4.1%)
|
- Income from operations for the fourth quarter of
2019 was RMB126.3 million (US$18.1
million), a 20.9% decrease from the corresponding
period in 2018.
(RMB
millions,
except
percentages)
|
Q4 2018
|
|
|
Q4 2019
|
|
|
YoY Change
|
Wealth
management
|
118.4
|
|
|
34.8
|
|
|
(70.6%)
|
Asset
management
|
41.3
|
|
|
91.0
|
|
|
120.3%
|
Lending and other
businesses
|
0.0
|
|
|
0.5
|
|
|
N.A.
|
Total income from
operations
|
159.7
|
|
|
126.3
|
|
|
(20.9%)
|
- Net income attributable to Noah shareholders for
the fourth quarter of 2019 was RMB102.8
million (US$14.8 million), a
34.0% decrease from the corresponding period in 2018.
- Non-GAAP net income attributable to Noah
shareholders for the fourth quarter of 2019 was
RMB116.5 million (US$16.7 million), a 47.8% decrease from the
corresponding period in 2018.
FOURTH QUARTER AND FULL YEAR 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
December 31, 2019 was 293,760, a
12.9% increase from December 31,
2018.
- Total number of active clients[3] during the
fourth quarter of 2019 was 4,512, a 4.3% decrease from the
corresponding period in 2018. Total number of active
clients during the full year 2019 was 14,538, a 6.7% increase
from the full year 2018.
- Aggregate value of
financial products distributed during the fourth
quarter of 2019 was RMB13.2 billion (US$1.9 billion), a 47.7% decrease
from the corresponding period in 2018, due to the fact that
the Company is adjusting its product strategy and thus no longer
offering single-counterparty credit products to clients since the
last quarter.
Product
type
|
Three months ended
December 31,
|
|
2018
|
|
2019
|
|
(RMB in billions,
except percentages)
|
Credit
products
|
20.2
|
|
80.3%
|
|
1.0
|
|
7.2%
|
Private equity
products
|
3.0
|
|
11.9%
|
|
1.8
|
|
13.8%
|
Public securities
products
|
1.5
|
|
5.7%
|
|
9.7
|
|
73.7%
|
Other
products
|
0.5
|
|
2.1%
|
|
0.7
|
|
5.3%
|
All
products
|
25.2
|
|
100.0%
|
|
13.2
|
|
100.0%
|
|
[3]
"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.
|
- Aggregate value of financial products
distributed during the full year 2019 was RMB78.5 billion (US$11.3 billion), a 28.6% decrease from the
full year 2018, due to a significant decrease of
single-counterparty credit product distributed in 2019.
Product
type
|
Twelve months
ended December 31,
|
|
2018
|
|
2019
|
|
(RMB in billions,
except percentages)
|
Credit
products
|
75.5
|
|
68.6%
|
|
34.3
|
|
43.7%
|
Private equity
products
|
18.9
|
|
17.1%
|
|
14.3
|
|
18.2%
|
Public securities
products
|
13.6
|
|
12.4%
|
|
26.4
|
|
33.6%
|
Other
products
|
2.0
|
|
1.9%
|
|
3.5
|
|
4.5%
|
All
products
|
110.0
|
|
100.0%
|
|
78.5
|
|
100.0%
|
- Average transaction value per active
client[4] for the fourth quarter of
2019 was RMB2.9 million (US$0.4 million), a 45.3% decrease from the
corresponding period in 2018. Average transaction value
per active client for the full year 2019 was
RMB5.4 million (US$0.8 million), a 33.1%
decrease from the full year 2018.
- Coverage network in mainland China included 292 service centers covering 82
cities as of December 31, 2019,
compared with 307 service centers covering 81 cities as of
September 30, 2019, and 313 service
centers covering 83 cities as of December
31, 2018. The change in service centers is primarily a
result of consolidation of duplicate service centers in order to
optimize costs and expenses.
- Number of relationship managers was 1,288 as of
December 31, 2019, a 5.8% decrease
from September 30, 2019, and an 18.6%
decrease from December 31, 2018,
primarily as a result of the Company's efforts to streamline
operational human resources. The turnover rate of core "elite"
relationship managers was 4.1%, compared with 4.6% in the year of
2018.
[4]
"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 is conducted through
Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), is a
leading alternative multi-asset manager in China with overseas offices in Hong Kong, United
States and Canada. Gopher
Asset Management develops and manages assets ranging from private
equity, real estate, public securities, credit to multi-strategy
investments denominated in Renminbi and other currencies.
- Total assets under management as of December 31, 2019 were RMB170.2 billion (US$24.5
billion), a 3.6% decrease from September 30, 2019 due to the voluntary
accelerated repayments of certain credit products and a 0.6%
increase from December 31, 2018.
Investment
type
|
As of
September 30,
2019
|
|
Growth
|
|
Distribution/
Redemption
|
|
As of
December 31,
2019
|
|
(RMB billions,
except percentages)
|
Private
equity
|
105.9
|
|
60.0%
|
|
1.7
|
|
2.7
|
|
104.9
|
|
61.6%
|
Credit
|
33.4
|
|
19.0%
|
|
-
|
|
3.8
|
|
29.6
|
|
17.4%
|
Real
estate
|
18.7
|
|
10.6%
|
|
1.9
|
|
3.0
|
|
17.6
|
|
10.3%
|
Public
securities[5]
|
9.6
|
|
5.4%
|
|
0.7
|
|
1.0
|
|
9.3
|
|
5.5%
|
Multi-strategies
|
8.9
|
|
5.0%
|
|
1.1
|
|
1.2
|
|
8.8
|
|
5.2%
|
All
Investments
|
176.5
|
|
100.0%
|
|
5.4
|
|
11.7
|
|
170.2
|
|
100.0%
|
|
[5] The
distribution/redemption of public securities also includes market
appreciation or depreciation.
|
Investment
type
|
As of
December 31,
2018
|
|
Growth
|
|
Distribution/
Redemption
|
|
As of
December 31,
2019
|
|
(RMB billions,
except percentages)
|
Private
equity
|
100.2
|
|
59.2%
|
|
10.3
|
|
5.6
|
|
104.9
|
|
61.6%
|
Credit
|
39.4
|
|
23.3%
|
|
10.2
|
|
20.0
|
|
29.6
|
|
17.4%
|
Real
estate
|
16.7
|
|
9.9%
|
|
7.2
|
|
6.3
|
|
17.6
|
|
10.3%
|
Public
securities
|
6.2
|
|
3.6%
|
|
5.5
|
|
2.4
|
|
9.3
|
|
5.5%
|
Multi-strategies
|
6.7
|
|
4.0%
|
|
3.4
|
|
1.3
|
|
8.8
|
|
5.2%
|
All
Investments
|
169.2
|
|
100.0%
|
|
36.6
|
|
35.6
|
|
170.2
|
|
100.0%
|
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 fourth quarter of 2019 was
RMB0.2 billion, compared with
RMB4.2 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, "The past year we experienced external pressures from
economic downturn, turbulent situation in Hong Kong, Sino-US trade tensions and a
changing financial regulatory landscape in China, and we have been proactively seeking
paradigm transformation to meet our client's changing demand. From
the third quarter, we ceased the offering of single-counterparty
non-standardized credit products. I am encouraged by the robust
momentum in our transition to offering more standardized products,
and the healthy growth in the volume of our public securities
transactions. We are happy to report the strong full year results,
that the Group reached our Non-GAAP net income attributable to
shareholders guidance of RMB1 billion
to RMB1.1 billion, and a Non-GAAP net
margin of 30.6%, which demonstrate our strong capability and
sustainability. Noah is well placed in China's wealth management and asset management
industry, in response to the COVID-19 outbreak. We will continue
our paradigm transformation in 2020, and further invest in our IT
infrastructure to enhance user experience in providing diversified
products and value-added services to high-net-worth clients in
China and overseas."
FOURTH QUARTER 2019 FINANCIAL RESULTS
Net Revenues
Net revenues for the fourth quarter of 2019 were
RMB788.3 million (US$113.2 million), a 4.1% decrease from the
corresponding period in 2018, primarily driven by decreased
one-time commissions and other service fees, and partially offset
by increased recurring service fees and performance-based
income.
- Wealth Management Business
- Net revenues from one-time
commissions for the fourth quarter of 2019 were
RMB158.3 million (US$22.7 million), a 34.3% decrease from the
corresponding period in 2018 due to a decrease in
single-counterparty credit products distributed in fourth quarter
of 2019.
- Net revenues from recurring
service fees for the fourth quarter of 2019 were
RMB306.4 million (US$44.0 million), a 2.9% 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 as well as more redemption of credit
products.
- Net revenues from
performance-based income for the fourth quarter of 2019
were RMB15.8 million (US$2.3 million), compared with RMB0.1 million from the corresponding period of
2018, primarily due to an increase in performance-based income from
public securities products as a result of a bullish A shares market
this quarter.
- Net revenues from other
service fees for the fourth quarter of 2019 were
RMB47.4 million (US$6.8 million), a 19.7% increase from 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 fourth quarter of 2019 were RMB159.7 million (US$22.9
million), an 8.0% 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 fourth quarter of 2019 were
RMB41.8 million (US$6.0 million), a 286.2% 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
fourth quarter of 2019 were RMB56.3
million (US$8.1 million), a
32.5% decrease from the corresponding period in 2018, due to
reduced loan origination in 2019.
Operating Costs and Expenses
Operating costs
and expenses for the fourth quarter of 2019
were RMB662.1 million (US$95.1 million), a 0.1% decrease from the
corresponding period in 2018. Operating costs and expenses
primarily consisted of compensation and benefits of RMB374.1 million (US$53.7
million), selling expenses of RMB77.7
million (US$11.2 million),
general and administrative expenses of RMB180.0 million (US$25.9
million) and other operating expenses of RMB42.1 million (US$6.0
million).
- Operating costs and expenses for the wealth
management business for the fourth quarter of 2019 were
RMB493.1 million (US$70.8 million), a 7.2% increase from the
corresponding period in 2018, primarily due to an increase in
allowance for doubtful accounts.
- Operating costs and expenses for the asset
management business for the fourth quarter of 2019 were
RMB113.1 million (US$16.3 million), a 4.8% 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 fourth quarter of 2019 were
RMB55.8 million (US$8.0 million), a 33.1% decrease from the
corresponding period in 2018, primarily due to a decrease in
compensation and benefits as employees structure under non-lending
businesses was optimized in 2019.
Operating Margin
Operating margin for the fourth quarter of 2019 was
16.0%, compared with 19.4% for the corresponding period in
2018.
- Operating margin for the wealth management
business for the fourth quarter of 2019 was 6.6%, compared
with 20.5% for the corresponding period in 2018, due to increase of
allowance for doubtful accounts.
- Operating margin for the asset management
business for the fourth quarter of 2019 was 44.6%, compared
with 25.8% for the corresponding period in 2018 due to increased
recurring service fee as well as more effective expense
control.
- Income for the lending and other
businesses for the fourth quarter of 2019 was RMB0.5 million (US$0.1
million), compared with break-even in the corresponding
period of 2018.
Investment Income
Investment Loss for the fourth quarter of 2019 was
RMB17.7 million (US$2.5 million), compared with investment
income of RMB6.5 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 fourth
quarter of 2019 were RMB28.2 million
(US$4.0 million), a 3.5% decrease
from the corresponding period in 2018, primarily due to lower
taxable income.
Income from Equity in Affiliates
Income from equity in affiliates for the fourth
quarter of 2019 was RMB14.9 million
(US$2.1 million), compared with
RMB2.5 million in the corresponding
period in 2018. We are still reviewing the financial results of the
funds of funds we manage and invest in as the general partner or
manager. Although we do not anticipate material variance barring
unexpected fluctuations in the portfolio companies' performance,
any potential changes in fair value of those investments could
affect the income from equity in affiliates.
Net Income
- Net income for the fourth
quarter of 2019 was RMB117.9 million
(US$16.9 million), a 22.1% decrease
from the corresponding period in 2018.
- Net margin for the fourth
quarter of 2019 was 15.0%, down from 18.4% for the corresponding
period in 2018.
- Net income attributable to
Noah shareholders for the fourth quarter of 2019 was
RMB102.8 million (US$14.8 million), a 34.0% decrease from the
corresponding period in 2018.
- Net margin attributable to
Noah shareholders for the fourth quarter of 2019 was 13.0%,
down from 18.9% for the corresponding period in 2018.
- Net income attributable to
Noah shareholders per basic and diluted ADS for the fourth
quarter of 2019 was RMB1.67
(US$0.24) and RMB1.66 (US$0.24),
respectively, compared with RMB2.61
and RMB2.54 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 fourth quarter of
2019 was RMB116.5 million
(US$16.7 million), a 47.8% decrease
from the corresponding period in 2018.
- Non-GAAP net margin
attributable to Noah shareholders for the fourth quarter of
2019 was 14.8%, down from 27.1% for the corresponding period in
2018.
- Non-GAAP net income
attributable to Noah shareholders per diluted ADS for the
fourth quarter of 2019 was RMB1.88
(US$0.27), down from RMB3.64 for the corresponding period in 2018.
FULL YEAR 2019 FINANCIAL RESULTS
Net Revenues
Net revenues for the full year 2019 were
RMB3,391.8 million (US$487.2 million), a 3.1% increase from the full
year 2018, primarily due to increases in recurring service fees and
other service fees and partially offset by the decrease in one-time
commissions.
- Wealth Management Business
- Net revenues from one-time
commissions for 2019 were RMB923.8
million (US$132.7 million), a
9.3% decrease from 2018, primarily due to the product
transformations in the second half of the year that led to a drop
in single-counterparty credit products offerings.
- Net revenues from recurring
service fees for 2019 were RMB1,150.2 million (US$165.2 million), a 1.8% increase from 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 2019 were RMB23.3 million (US$3.4
million), a 47.1% decrease from 2018, primarily due to a
decrease in performance-based income from public securities
products.
- Net revenues from other
service fees for 2019 were RMB221.9
million (US$31.9 million), a
96.4% increase from 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 2019 were RMB686.5
million (US$98.6 million), a
7.6% increase from 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 2019.
- Net revenues from
performance-based income for 2019 were RMB89.2 million (US$12.8
million), a 9.8% decrease from 2018, primarily due to a
decrease in performance-based income from public securities
products.
- Lending and Other Businesses
- Net revenues for 2019
were RMB289.0 million (US$41.5 million), a 22.9% increase from 2018.
Operating costs and expenses
Operating costs
and expenses for 2019 were RMB2,476.8 million (US$355.8 million), a 4.8% increase from the full
year 2018. Operating costs and expenses for the full year 2019
primarily consisted of compensation and benefits of RMB1,610.8 million (US$231.4 million), selling expenses of
RMB331.3 million (US$47.6 million), general and administrative
expenses of RMB427.2 million
(US$61.4 million) and other operating
expenses of RMB196.8 million
(US$28.3 million).
- Operating costs and expenses for the wealth
management business for 2019 were RMB1,881.5 million (US$270.3 million), a 10.8% increase
from 2018, primarily due to an increase in compensation and
benefits as well as general and administrative expenses.
- Operating costs and expenses for the asset
management business for 2019 were RMB392.3 million (US$56.3
million), a 0.8% decrease from 2018, primarily due to a
decrease in general and administrative expenses.
- Operating costs and expenses for the lending and
other businesses for 2019 were RMB203.0 million (US$29.2
million), a 24.5% decrease from 2018, primarily due to a
decrease in compensation and benefits as employees structure under
non-lending businesses was optimized since the beginning of
2019.
Operating Margin
Operating margin for the full year 2019 was 27.0%,
compared to 28.2% for the full year 2018.
- Operating margin for the wealth management business for
2019 was 18.9%, compared to 26.3% for 2018, mainly due to increased
legal expenses related to the Camsing case as well as a greater
allowance for doubtful accounts.
- Operating margin for the asset management
business for 2019 was 49.9%, compared to 47.2% for
2018.
- Operating margin for the lending and other business for
2019 was 29.7%, compared to a loss of RMB33.9 million for 2018.
Investment Income
Investment loss for the full year 2019 was
RMB28.6 million (US$4.1 million), compared with investment
income of RMB49.1 million for the
full year 2018. The investment loss was primarily due to changes in
fair value of equity securities.
Income Tax Expenses
Income tax expenses for the full year
2019 were RMB220.0 million
(US$31.6 million), a 1.0% decrease
from the full year 2018.
Net Income
- Net income for the full
year 2019 was RMB863.8 million
(US$124.1 million), a 7.5% increase
from the corresponding period in 2018.
- Net margin for the full
year 2019 was 25.5%, up from 24.4% for the full year 2018.
- Net income attributable to
Noah shareholders for the full year 2019 was RMB829.2 million (US$119.1
million), a 2.2% increase from the full year 2018.
- Net margin attributable to
Noah shareholders for the full year 2019 was 24.4%, down from
24.7% for the full year 2018.
- Net income attributable to
Noah shareholders per basic and diluted ADS for the full
year 2019 was RMB13.56 (US$1.95) and RMB13.42 (US$1.93),
respectively, compared with RMB13.85
and RMB13.33 respectively, for the
full year 2018.
- Non-GAAP Net Income Attributable to Noah
Shareholders
- Non-GAAP net income
attributable to Noah shareholders for the full year 2019 was
RMB1,038.2 million (US$149.1 million), a 2.7% increase from the full
year 2018.
- Non-GAAP net margin
attributable to Noah shareholders for the full year 2019 was
30.6%, unchanged from the full year of 2018.
- Non-GAAP net income
attributable to Noah shareholders per diluted ADS for the full
year 2019 was RMB16.80 (US$2.41), up from RMB16.58 for the full year 2018.
BALANCE SHEET AND CASH FLOW
As of December 31, 2019, the
Company had RMB4,387.3 million
(US$630.2 million) in cash and cash
equivalents, compared with RMB2,704.1
million as of December 31,
2018 and RMB3,669.2 million as
of September 30, 2019.
Net cash inflow from the Company's operating activities during
the fourth quarter of 2019 was RMB838.6
million (US$120.5 million),
compared to net cash inflow of RMB511.3
million in the corresponding period in 2018. The increase
was mainly due to changes in working capital. Net cash inflow from
the Company's operating activities during the full year 2019 was
RMB1,284.3 million (US$184.5 million), compared to RMB1,029.4 million during the full year 2018,
driven by profit earned from business operations and enhanced
collection of accounts receivables.
Net cash outflow from the Company's investing activities during
the fourth quarter of 2019 was RMB179.9
million (US$25.8 million),
compared to net cash outflow of RMB188.4
million in the corresponding period in 2018. Net cash
outflow from the Company's investing activities during the full
year 2019 was RMB178.1 million
(US$25.6 million), compared to net
cash outflow of RMB395.7 million
during the full year 2018, due to fewer investments made in
2019.
Net cash inflow from the Company's financing activities was
RMB136.3 million (US$19.6 million) in the fourth quarter of 2019,
compared to net cash inflow of RMB7.5
million in the corresponding period in 2018, primarily
due to the capital contribution by non-controlling shareholders of
a consolidated subsidiary. Net cash inflow from the Company's
financing activities during the full year 2019 was RMB543.3 million (US$78.0
million), compared to RMB109.8
million cash inflow during the full year 2018. The cash
inflow for 2019 was mainly due to the proceeds related to
contribution of non-controlling interest.
NOTE TO FINANCIAL INFORMATION
As of the date of this press release, we are still in the
process of reviewing the financial results of the funds of funds we
manage and invest in as the general partner or manager. Any
changes in the fair value of those investments could affect the
income from equity in affiliates, net income, net income
attributable to Noah shareholders, income per ADS and the
balance of investments in affiliates in our consolidated financial
statements. While not included in the unaudited preliminary fourth
quarter 2019 financial results in this press release, we will
include any such fair value adjustments in the audited consolidated
financial statements in our 2019 Form 20-F and will make a
subsequent announcement when our review conclude, as
appropriate.
2020 FORECAST
The global outbreak of a novel strain of coronavirus (COVID-19)
has notably slowed down the global economy. Despite the fact that
various travel bans in China and
cross border have put heavy constraints on the Company's
face-to-face interactions with clients, the Company is excited to
see a strong momentum in the transaction value of standardized
products being offered. Hence, the Company remains reasonably
optimistic about the recovery or even a moderate growth in its
total transaction value in 2020 compared to 2019. In the meantime,
as part of its overall transformation strategy, the Company has
decided to further increase its investment in IT infrastructure and
online platform development. This will primarily consist of the
major upgrades of the Smiling Fund APP, the construction of the
global version of Smiling Fund APP and the creation of a new SaaS
system for institutional channels. The Company expects to spend
around 3-5% of its total net revenue in such investment in 2020.
Given the above considerations, the non-GAAP net income
attributable to Noah shareholders for the full year 2020 will be in
the range of RMB800 million to
RMB900 million. 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 fourth quarter
and full year 2019 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
|
|
|
Date/Time:
|
Tuesday, March 24,
2020 at 8:00 p.m., U.S. Eastern Time
Wednesday, March 25,
2020 at 8:00 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 Fourth Quarter 2019 Earnings Call
|
Participant
Password:
|
Noah Holdings
Limited
|
A telephone replay will be available starting approximately one
hour after the end of the conference call until March 31, 2020 at +1-877-344-7529 (US Toll Free)
or +1-412-317-0088 (International Toll). The replay access code is
10139594.
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 ON 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 full year 2019, Noah distributed RMB78.5 billion (US$11.3
billion) of financial products. Through Gopher Asset
Management, Noah had assets under management of RMB170.2 billion (US$24.5
billion) as of December 31,
2019.
Noah's wealth management business primarily distributes
diversified financial products denominated in RMB and other
currencies. Noah delivers customized financial solutions to clients
through a network of 1,288 relationship managers across 292 service
centers in 82 cities in mainland China, and serves the international investment
needs of its clients through offices in Hong Kong, Taiwan, United
States, Canada,
Australia and Singapore. The Company's wealth management
business had 293,760 registered clients as of December 31, 2019. As a leading alternative
multi-asset manager in China,
Gopher Asset Management develops and manages assets ranging from
private equity, real estate, public securities, credit to
multi-strategy investments denominated in Renminbi and other
currencies. The Company also provides lending services and other
businesses.
For more information, please visit Noah at
ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
fourth quarter of 2019 and full year ended December 31, 2019 are stated in RMB. This
announcement contains currency conversions of certain RMB amounts
into US$ 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 RMB6.9618 to
US$1.00, the effective noon buying
rate for December 31, 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 2020 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; 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
Sonia Han
Tel: +86-21-8035-9221
ir@noahgroup.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
As of
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2019
|
|
2019
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
3,669,150
|
|
4,387,345
|
|
630,203
|
|
|
Restricted
cash
|
2,500
|
|
6,589
|
|
946
|
|
|
Short-term
investments
|
557,130
|
|
671,259
|
|
96,420
|
|
|
Accounts receivable,
net
|
287,818
|
|
219,566
|
|
31,539
|
|
|
Loans receivable,
net
|
541,703
|
|
688,970
|
|
98,964
|
|
|
Amounts due from
related parties
|
666,584
|
|
548,704
|
|
78,816
|
|
|
Loans receivable from
factoring business, net
|
60,000
|
|
-
|
|
-
|
|
|
Other current
assets
|
298,403
|
|
243,701
|
|
35,004
|
|
|
Total current
assets
|
6,083,288
|
|
6,766,134
|
|
971,892
|
|
|
|
|
|
|
|
|
Long-term
investments, net
|
930,055
|
|
881,091
|
|
126,561
|
|
Investment in
affiliates
|
1,289,296
|
|
1,272,261
|
|
182,749
|
|
Property and
equipment, net
|
307,680
|
|
296,320
|
|
42,564
|
|
Operating lease
right-of-use assets, net
|
367,873
|
|
352,186
|
|
50,588
|
|
Deferred tax
assets
|
126,914
|
|
167,430
|
|
24,050
|
|
Other non-current
assets
|
79,654
|
|
67,182
|
|
9,651
|
Total
Assets
|
9,184,760
|
|
9,802,604
|
|
1,408,055
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
432,800
|
|
555,719
|
|
79,824
|
|
|
Income tax
payable
|
96,668
|
|
126,743
|
|
18,205
|
|
|
Deferred
revenues
|
192,614
|
|
100,693
|
|
14,464
|
|
|
Other current
liabilities
|
333,132
|
|
721,898
|
|
103,694
|
|
|
Total current
liabilities
|
1,055,214
|
|
1,505,053
|
|
216,187
|
|
Operating lease
liabilities, non-current
|
370,845
|
|
362,757
|
|
52,107
|
|
Deferred tax
liabilities
|
65,314
|
|
56,401
|
|
8,101
|
|
Other non-current
liabilities
|
11,952
|
|
3,433
|
|
493
|
|
Total
Liabilities
|
1,503,325
|
|
1,927,644
|
|
276,888
|
|
Equity
|
7,681,435
|
|
7,874,960
|
|
1,131,167
|
Total Liabilities
and Equity
|
9,184,760
|
|
9,802,604
|
|
1,408,055
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
Three months
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2018
|
|
2019
|
|
2019
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
173,814
|
|
150,494
|
|
21,617
|
|
(13.4%)
|
Recurring service
fees
|
142,435
|
|
125,851
|
|
18,077
|
|
(11.6%)
|
Performance-based
income
|
147
|
|
15,909
|
|
2,285
|
|
10,722.4%
|
Other service
fees
|
126,212
|
|
105,691
|
|
15,182
|
|
(16.3%)
|
Total revenues from
others
|
442,608
|
|
397,945
|
|
57,161
|
|
(10.1%)
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
69,098
|
|
10,659
|
|
1,531
|
|
(84.6%)
|
Recurring service
fees
|
305,937
|
|
342,658
|
|
49,220
|
|
12.0%
|
Performance-based
income
|
10,861
|
|
41,981
|
|
6,030
|
|
286.5%
|
Total revenues from
funds Gopher
manages
|
385,896
|
|
395,298
|
|
56,781
|
|
2.4%
|
Total
revenues
|
828,504
|
|
793,243
|
|
113,942
|
|
(4.3%)
|
Less: VAT related
surcharges
|
(6,401)
|
|
(4,900)
|
|
(704)
|
|
(23.4%)
|
Net
revenues
|
822,103
|
|
788,343
|
|
113,238
|
|
(4.1%)
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(162,638)
|
|
(133,306)
|
|
(19,148)
|
|
(18.0%)
|
Others
|
(265,477)
|
|
(240,808)
|
|
(34,590)
|
|
(9.3%)
|
Total compensation
and
benefits
|
(428,115)
|
|
(374,114)
|
|
(53,738)
|
|
(12.6%)
|
Selling
expenses
|
(104,765)
|
|
(77,741)
|
|
(11,167)
|
|
(25.8%)
|
General and
administrative
expenses
|
(94,938)
|
|
(180,012)
|
|
(25,857)
|
|
89.6%
|
Other operating
expenses
|
(51,710)
|
|
(42,064)
|
|
(6,042)
|
|
(18.7%)
|
Government
grants
|
17,145
|
|
11,862
|
|
1,704
|
|
(30.8%)
|
Total operating costs
and
expenses
|
(662,383)
|
|
(662,069)
|
|
(95,100)
|
|
(0.1%)
|
Income from
operations
|
159,720
|
|
126,274
|
|
18,138
|
|
(20.9%)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
14,104
|
|
22,977
|
|
3,300
|
|
62.9%
|
Interest
expenses
|
(1,002)
|
|
-
|
|
-
|
|
N.A.
|
Investment income
(loss)
|
6,547
|
|
(17,725)
|
|
(2,546)
|
|
N.A.
|
Other
expense
|
(1,326)
|
|
(308)
|
|
(44)
|
|
(76.8%)
|
Total other income
(expense)
|
18,323
|
|
4,944
|
|
710
|
|
(73.0%)
|
Income before taxes
and
income from equity in
affiliates
|
178,043
|
|
131,218
|
|
18,848
|
|
(26.3%)
|
Income tax
expense
|
(29,203)
|
|
(28,174)
|
|
(4,047)
|
|
(3.5%)
|
Income from equity in
affiliates
|
2,526
|
|
14,883
|
|
2,138
|
|
489.2%
|
Net
income
|
151,366
|
|
117,927
|
|
16,939
|
|
(22.1%)
|
Less: net (loss)
income
attributable to non-controlling
interests
|
(4,273)
|
|
15,134
|
|
2,174
|
|
N.A.
|
Net income
attributable to
Noah shareholders
|
155,639
|
|
102,793
|
|
14,765
|
|
(34.0%)
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
2.61
|
|
1.67
|
|
0.24
|
|
(36.0%)
|
Income per ADS,
diluted
|
2.54
|
|
1.66
|
|
0.24
|
|
(34.6%)
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
19.4%
|
|
16.0%
|
|
16.0%
|
|
|
Net margin
|
18.4%
|
|
15.0%
|
|
15.0%
|
|
|
Weighted average
ADS
equivalent[1]:
|
|
|
|
|
|
|
|
Basic
|
59,676,698
|
|
61,532,722
|
|
61,532,722
|
|
|
Diluted
|
61,590,911
|
|
61,900,487
|
|
61,900,487
|
|
|
ADS equivalent
outstanding at
end of period
|
60,129,547
|
|
61,599,313
|
|
61,599,313
|
|
|
|
|
|
|
|
|
|
|
|
[1]
Assumes all outstanding ordinary shares are represented by ADSs.
Each ordinary share represents two ADSs.
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
Twelve months
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2018
|
|
2019
|
|
2019
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
733,009
|
|
690,860
|
|
99,236
|
|
(5.8%)
|
Recurring service
fees
|
593,856
|
|
524,692
|
|
75,367
|
|
(11.6%)
|
Performance-based
income
|
43,101
|
|
23,437
|
|
3,367
|
|
(45.6%)
|
Other service
fees
|
361,886
|
|
522,958
|
|
75,118
|
|
44.5%
|
Total revenues from
others
|
1,731,852
|
|
1,761,947
|
|
253,088
|
|
1.7%
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
294,984
|
|
240,808
|
|
34,590
|
|
(18.4%)
|
Recurring service
fees
|
1,182,693
|
|
1,320,773
|
|
189,717
|
|
11.7%
|
Performance-based
income
|
100,533
|
|
89,648
|
|
12,877
|
|
(10.8%)
|
Total revenues from
funds
Gopher manages
|
1,578,210
|
|
1,651,229
|
|
237,184
|
|
4.6%
|
Total
revenues
|
3,310,062
|
|
3,413,176
|
|
490,272
|
|
3.1%
|
Less: VAT related
surcharges
|
(20,454)
|
|
(21,364)
|
|
(3,069)
|
|
4.4%
|
Net
revenues
|
3,289,608
|
|
3,391,812
|
|
487,203
|
|
3.1%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(633,599)
|
|
(625,044)
|
|
(89,782)
|
|
(1.4%)
|
Others
|
(930,593)
|
|
(985,726)
|
|
(141,591)
|
|
5.9%
|
Total compensation
and
benefits
|
(1,564,192)
|
|
(1,610,770)
|
|
(231,373)
|
|
3.0%
|
Selling
expenses
|
(412,720)
|
|
(331,346)
|
|
(47,595)
|
|
(19.7%)
|
General and
administrative
expenses
|
(279,387)
|
|
(427,215)
|
|
(61,366)
|
|
52.9%
|
Other operating
expenses
|
(169,368)
|
|
(196,793)
|
|
(28,268)
|
|
16.2%
|
Government
grants
|
62,583
|
|
89,278
|
|
12,824
|
|
42.7%
|
Total operating costs
and
expenses
|
(2,363,084)
|
|
(2,476,846)
|
|
(355,778)
|
|
4.8%
|
Income from
operations
|
926,524
|
|
914,966
|
|
131,425
|
|
(1.2%)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
69,841
|
|
89,099
|
|
12,798
|
|
27.6%
|
Interest
expenses
|
(10,028)
|
|
(430)
|
|
(62)
|
|
(95.7%)
|
Investment income
(loss)
|
48,616
|
|
(28,620)
|
|
(4,111)
|
|
N.A.
|
Other
expense
|
(23,356)
|
|
(7,040)
|
|
(1,011)
|
|
(69.9%)
|
Total other income
(expense)
|
85,073
|
|
53,009
|
|
7,614
|
|
(37.7%)
|
Income before taxes
and
income from equity in
affiliates
|
1,011,597
|
|
967,975
|
|
139,039
|
|
(4.3%)
|
Income tax
expense
|
(222,320)
|
|
(220,025)
|
|
(31,605)
|
|
(1.0%)
|
Income from equity in
affiliates
|
14,469
|
|
115,809
|
|
16,635
|
|
700.4%
|
Net
income
|
803,746
|
|
863,759
|
|
124,069
|
|
7.5%
|
Less: net (loss)
income
attributable to non-controlling
interests
|
(7,551)
|
|
34,608
|
|
4,971
|
|
N.A.
|
Net income
attributable to
Noah shareholders
|
811,297
|
|
829,151
|
|
119,098
|
|
2.2%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
13.85
|
|
13.56
|
|
1.95
|
|
(2.1%)
|
Income per ADS,
diluted
|
13.33
|
|
13.42
|
|
1.93
|
|
0.7%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
28.2%
|
|
27.0%
|
|
27.0%
|
|
|
Net margin
|
24.4%
|
|
25.5%
|
|
25.5%
|
|
|
Weighted average
ADS
equivalent[1]:
|
|
|
|
|
|
|
|
Basic
|
58,576,802
|
|
61,160,362
|
|
61,160,362
|
|
|
Diluted
|
61,421,080
|
|
61,848,191
|
|
61,848,191
|
|
|
ADS equivalent
outstanding at
end of period
|
60,129,547
|
|
61,599,313
|
|
61,599,313
|
|
|
|
|
|
|
|
|
|
|
|
[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
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2018
|
|
2019
|
|
2019
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
151,366
|
|
117,927
|
|
16,939
|
|
(22.1%)
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
7,357
|
|
(81,693)
|
|
(11,734)
|
|
N.A.
|
Fair value fluctuation
of available for sale
Investment (after tax)
|
(47)
|
|
7
|
|
1
|
|
N.A.
|
Comprehensive
income
|
158,676
|
|
36,241
|
|
5,206
|
|
(77.2%)
|
Less: Comprehensive
income (loss)
attributable to non-controlling interests
|
(4,260)
|
|
15,090
|
|
2,168
|
|
N.A.
|
Comprehensive
income attributable to
Noah shareholders
|
162,936
|
|
21,151
|
|
3,038
|
|
(87.0%)
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2018
|
|
2019
|
|
2019
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
803,746
|
|
863,759
|
|
124,069
|
|
7.5%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
75,752
|
|
61,601
|
|
8,848
|
|
(18.7%)
|
Fair value fluctuation
of available for sale
Investment (after tax)
|
(1,429)
|
|
(797)
|
|
(114)
|
|
(44.2%)
|
Comprehensive
income
|
878,069
|
|
924,563
|
|
132,803
|
|
5.3%
|
Less: Comprehensive
income (loss)
attributable to non-controlling interests
|
(7,638)
|
|
34,558
|
|
4,964
|
|
N.A.
|
Comprehensive
income attributable to
Noah shareholders
|
885,707
|
|
890,005
|
|
127,839
|
|
0.5%
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
|
As of
|
|
|
|
December 31,
2018
|
|
December 31,
2019
|
|
Change
|
|
|
|
|
|
|
Number of registered
clients
|
260,285
|
|
293,760
|
|
12.9%
|
Number of
relationship managers
|
1,583
|
|
1,288
|
|
(18.6%)
|
Number of cities in
mainland China
under coverage
|
83
|
|
82
|
|
(1.2%)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
December 31,
2018
|
|
December 31,
2019
|
|
Change
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of active
clients
|
4,717
|
|
4,512
|
|
(4.3%)
|
Transaction
value:
|
|
|
|
|
|
Credit
products
|
20,224
|
|
948
|
|
(95.3%)
|
Private equity
products
|
2,999
|
|
1,811
|
|
(39.6%)
|
Public securities
products
|
1,426
|
|
9,708
|
|
580.8%
|
Other
products
|
521
|
|
703
|
|
34.9%
|
Total transaction
value
|
25,170
|
|
13,170
|
|
(47.7%)
|
Average transaction
value per active client
|
5.34
|
|
2.92
|
|
(45.3%)
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
|
December 31,
2018
|
|
December 31,
2019
|
|
Change
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of active
clients
|
13,628
|
|
14,538
|
|
6.7%
|
Transaction
value:
|
|
|
|
|
|
Credit
products
|
75,498
|
|
34,316
|
|
(54.5%)
|
Private equity
products
|
18,864
|
|
14,279
|
|
(24.3%)
|
Public securities
products
|
13,605
|
|
26,378
|
|
93.9%
|
Other
products
|
2,062
|
|
3,551
|
|
72.2%
|
Total transaction
value
|
110,029
|
|
78,524
|
|
(28.6%)
|
Average transaction
value per active client
|
8.07
|
|
5.40
|
|
(33.1%)
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Three months ended December 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
|
149,806
|
|
688
|
|
-
|
|
150,494
|
Recurring service
fees
|
124,872
|
|
979
|
|
-
|
|
125,851
|
Performance-based
income
|
15,909
|
|
-
|
|
-
|
|
15,909
|
Other service
fees
|
47,594
|
|
718
|
|
57,379
|
|
105,691
|
Total revenues from
others
|
338,181
|
|
2,385
|
|
57,379
|
|
397,945
|
Revenues from funds
Gopher manages
|
|
|
|
|
|
|
|
One-time
commissions
|
9,344
|
|
1,315
|
|
-
|
|
10,659
|
Recurring service
fees
|
183,119
|
|
159,539
|
|
-
|
|
342,658
|
Performance-based
income
|
-
|
|
41,981
|
|
-
|
|
41,981
|
Total revenues from
funds Gopher
manages
|
192,463
|
|
202,835
|
|
-
|
|
395,298
|
Total
revenues
|
530,644
|
|
205,220
|
|
57,379
|
|
793,243
|
Less: VAT related
surcharges
|
(2,707)
|
|
(1,098)
|
|
(1,095)
|
|
(4,900)
|
Net
revenues
|
527,937
|
|
204,122
|
|
56,284
|
|
788,343
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(133,306)
|
|
-
|
|
-
|
|
(133,306)
|
Others
|
(143,475)
|
|
(75,072)
|
|
(22,261)
|
|
(240,808)
|
Total compensation and
benefits
|
(276,781)
|
|
(75,072)
|
|
(22,261)
|
|
(374,114)
|
Selling
expenses
|
(64,026)
|
|
(9,099)
|
|
(4,616)
|
|
(77,741)
|
General and
administrative
expenses
|
(138,538)
|
|
(28,650)
|
|
(12,824)
|
|
(180,012)
|
Other operating
expenses
|
(22,676)
|
|
(3,190)
|
|
(16,198)
|
|
(42,064)
|
Government
grants
|
8,925
|
|
2,870
|
|
67
|
|
11,862
|
Total operating costs
and expenses
|
(493,096)
|
|
(113,141)
|
|
(55,832)
|
|
(662,069)
|
Income from
operations
|
34,841
|
|
90,981
|
|
452
|
|
126,274
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
|
Three months ended
December 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
|
173,415
|
|
399
|
|
-
|
|
173,814
|
Recurring service
fees
|
139,996
|
|
2,439
|
|
-
|
|
142,435
|
Performance-based
income
|
147
|
|
-
|
|
-
|
|
147
|
Other service
fees
|
39,831
|
|
1,028
|
|
85,353
|
|
126,212
|
Total revenues from
others
|
353,389
|
|
3,866
|
|
85,353
|
|
442,608
|
Revenues from funds
Gopher
manages
|
|
|
|
|
|
|
|
One-time
commissions
|
69,018
|
|
80
|
|
-
|
|
69,098
|
Recurring service
fees
|
159,812
|
|
146,125
|
|
-
|
|
305,937
|
Performance-based
income
|
-
|
|
10,861
|
|
-
|
|
10,861
|
Total revenues from
funds Gopher
manages
|
228,830
|
|
157,066
|
|
-
|
|
385,896
|
Total
revenues
|
582,219
|
|
160,932
|
|
85,353
|
|
828,504
|
Less: VAT related
surcharges
|
(3,751)
|
|
(730)
|
|
(1,920)
|
|
(6,401)
|
Net
revenues
|
578,468
|
|
160,202
|
|
83,433
|
|
822,103
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship managers
|
(162,215)
|
|
-
|
|
(423)
|
|
(162,638)
|
Others
|
(152,045)
|
|
(84,132)
|
|
(29,300)
|
|
(265,477)
|
Total compensation and
benefits
|
(314,260)
|
|
(84,132)
|
|
(29,723)
|
|
(428,115)
|
Selling expenses
|
(91,429)
|
|
(7,278)
|
|
(6,058)
|
|
(104,765)
|
General and
administrative
expenses
|
(52,444)
|
|
(27,838)
|
|
(14,656)
|
|
(94,938)
|
Other operating
expenses
|
(15,241)
|
|
(1,722)
|
|
(34,747)
|
|
(51,710)
|
Government
grants
|
13,300
|
|
2,090
|
|
1,755
|
|
17,145
|
Total operating costs
and expenses
|
(460,074)
|
|
(118,880)
|
|
(83,429)
|
|
(662,383)
|
Income from
operations
|
118,394
|
|
41,322
|
|
4
|
|
159,720
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Twelve months ended December 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
|
688,652
|
|
2,208
|
|
-
|
|
690,860
|
Recurring service
fees
|
520,013
|
|
4,679
|
|
-
|
|
524,692
|
Performance-based
income
|
23,333
|
|
104
|
|
-
|
|
23,437
|
Other service
fees
|
222,912
|
|
4,274
|
|
295,772
|
|
522,958
|
Total revenues from
others
|
1,454,910
|
|
11,265
|
|
295,772
|
|
1,761,947
|
Revenues from funds
Gopher manages
|
|
|
|
|
|
|
|
One-time
commissions
|
239,409
|
|
1,399
|
|
-
|
|
240,808
|
Recurring service
fees
|
635,437
|
|
685,336
|
|
-
|
|
1,320,773
|
Performance-based
income
|
97
|
|
89,551
|
|
-
|
|
89,648
|
Total revenues from
funds Gopher
manages
|
874,943
|
|
776,286
|
|
-
|
|
1,651,229
|
Total
revenues
|
2,329,853
|
|
787,551
|
|
295,772
|
|
3,413,176
|
Less: VAT related
surcharges
|
(10,574)
|
|
(3,971)
|
|
(6,819)
|
|
(21,364)
|
Net
revenues
|
2,319,279
|
|
783,580
|
|
288,953
|
|
3,391,812
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(625,044)
|
|
-
|
|
-
|
|
(625,044)
|
Others
|
(607,336)
|
|
(279,895)
|
|
(98,495)
|
|
(985,726)
|
Total compensation and
benefits
|
(1,232,380)
|
|
(279,895)
|
|
(98,495)
|
|
(1,610,770)
|
Selling
expenses
|
(287,541)
|
|
(26,661)
|
|
(17,144)
|
|
(331,346)
|
General and
administrative
expenses
|
(316,480)
|
|
(75,605)
|
|
(35,130)
|
|
(427,215)
|
Other operating
expenses
|
(103,846)
|
|
(25,978)
|
|
(66,969)
|
|
(196,793)
|
Government
grants
|
58,704
|
|
15,878
|
|
14,696
|
|
89,278
|
Total operating costs
and expenses
|
(1,881,543)
|
|
(392,261)
|
|
(203,042)
|
|
(2,476,846)
|
Income from
operations
|
437,736
|
|
391,319
|
|
85,911
|
|
914,966
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
|
Twelve months ended
December 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
|
731,424
|
|
1,585
|
|
-
|
|
733,009
|
Recurring service
fees
|
571,782
|
|
22,074
|
|
-
|
|
593,856
|
Performance-based
income
|
42,570
|
|
531
|
|
-
|
|
43,101
|
Other service
fees
|
113,570
|
|
8,225
|
|
240,091
|
|
361,886
|
Total revenues from
others
|
1,459,346
|
|
32,415
|
|
240,091
|
|
1,731,852
|
Revenues from funds
Gopher
manages
|
|
|
|
|
|
|
|
One-time
commissions
|
292,899
|
|
2,085
|
|
-
|
|
294,984
|
Recurring service
fees
|
564,228
|
|
618,465
|
|
-
|
|
1,182,693
|
Performance-based
income
|
1,739
|
|
98,794
|
|
-
|
|
100,533
|
Total revenues from
funds Gopher
manages
|
858,866
|
|
719,344
|
|
-
|
|
1,578,210
|
Total
revenues
|
2,318,212
|
|
751,759
|
|
240,091
|
|
3,310,062
|
Less: VAT related
surcharges
|
(12,206)
|
|
(3,228)
|
|
(5,020)
|
|
(20,454)
|
Net
revenues
|
2,306,006
|
|
748,531
|
|
235,071
|
|
3,289,608
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship managers
|
(631,234)
|
|
-
|
|
(2,365)
|
|
(633,599)
|
Others
|
(534,516)
|
|
(273,098)
|
|
(122,979)
|
|
(930,593)
|
Total compensation and
benefits
|
(1,165,750)
|
|
(273,098)
|
|
(125,344)
|
|
(1,564,192)
|
Selling
expenses
|
(367,589)
|
|
(22,200)
|
|
(22,931)
|
|
(412,720)
|
General and
administrative
expenses
|
(164,802)
|
|
(80,873)
|
|
(33,712)
|
|
(279,387)
|
Other operating
expenses
|
(54,291)
|
|
(25,310)
|
|
(89,767)
|
|
(169,368)
|
Government
grants
|
53,620
|
|
6,148
|
|
2,815
|
|
62,583
|
Total operating costs
and expenses
|
(1,698,812)
|
|
(395,333)
|
|
(268,939)
|
|
(2,363,084)
|
Income (loss) from
operations
|
607,194
|
|
353,198
|
|
(33,868)
|
|
926,524
|
Noah Holdings
Limited
|
Supplement Revenue
Information by Geography
|
(unaudited)
|
|
Three months ended
December 31, 2019
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending and
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
324,935
|
|
173,100
|
|
57,379
|
|
555,414
|
Hong Kong
|
135,164
|
|
28,480
|
|
-
|
|
163,644
|
Others
|
70,545
|
|
3,640
|
|
-
|
|
74,185
|
Total
revenues
|
530,644
|
|
205,220
|
|
57,379
|
|
793,243
|
|
Three months ended
December 31, 2018
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending and
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
400,499
|
|
118,267
|
|
85,353
|
|
604,119
|
Hong Kong
|
180,042
|
|
42,033
|
|
-
|
|
222,075
|
Others
|
1,678
|
|
632
|
|
-
|
|
2,310
|
Total
revenues
|
582,219
|
|
160,932
|
|
85,353
|
|
828,504
|
Noah Holdings
Limited
|
Supplement Revenue
Information by Geography
|
(unaudited)
|
|
Twelve months ended
December 31, 2019
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending and
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
1,494,742
|
|
676,837
|
|
295,772
|
|
2,467,351
|
Hong Kong
|
633,168
|
|
99,957
|
|
-
|
|
733,125
|
Others
|
201,943
|
|
10,757
|
|
-
|
|
212,700
|
Total
revenues
|
2,329,853
|
|
787,551
|
|
295,772
|
|
3,413,176
|
|
Twelve months ended
December 31, 2018
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending and
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
1,750,754
|
|
565,137
|
|
240,091
|
|
2,555,982
|
Hong Kong
|
565,061
|
|
185,990
|
|
-
|
|
751,051
|
Others
|
2,397
|
|
632
|
|
-
|
|
3,029
|
Total
revenues
|
2,318,212
|
|
751,759
|
|
240,091
|
|
3,310,062
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited)[6]
|
|
Three months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2018
|
|
2019
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
|
155,639
|
|
102,793
|
|
(34.0%)
|
|
Adjustment for
share-based compensation
|
34,174
|
|
20,977
|
|
(38.6%)
|
|
Less: gains (loss)
from fair value changes of equity
securities (unrealized)
|
(4,596)
|
|
2,158
|
|
N.A.
|
|
Add: gains from sales
of equity securities
|
12,011
|
|
-
|
|
N.A.
|
|
Less: tax effect of
adjustments
|
(16,730)
|
|
5,095
|
|
N.A.
|
|
Adjusted net income
attributable to Noah shareholders
(non-GAAP)
|
223,150
|
|
116,517
|
|
(47.8%)
|
|
|
|
|
|
|
|
|
Net margin
attributable to Noah shareholders
|
18.9%
|
|
13.0%
|
|
|
|
Non-GAAP net margin
attributable to Noah shareholders
|
27.1%
|
|
14.8%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders per ADS,
diluted
|
2.54
|
|
1.66
|
|
(34.6%)
|
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted
|
3.64
|
|
1.88
|
|
(48.4%)
|
|
|
|
|
|
|
|
|
[6] 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.
|
|
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited)
|
|
Twelve months
ended
|
|
|
|
|
December
31
|
|
December
31
|
|
Change
|
|
|
2018
|
|
2019
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
|
811,297
|
|
829,151
|
|
2.2%
|
|
Adjustment for
share-based compensation
|
112,763
|
|
94,897
|
|
(15.8%)
|
|
Less: (gains) loss
from fair value changes of equity
securities (unrealized)
|
(39,557)
|
|
15,628
|
|
N.A.
|
|
Add: gains from sales
of equity securities
|
45,240
|
|
149,652
|
|
230.8%
|
|
Less: tax effect of
adjustments
|
(1,966)
|
|
19,845
|
|
N.A.
|
|
Adjusted net income
attributable to Noah shareholders
(non-GAAP)
|
1,010,823
|
|
1,038,227
|
|
2.7%
|
|
|
|
|
|
|
|
|
Net margin
attributable to Noah shareholders
|
24.7%
|
|
24.4%
|
|
|
|
Non-GAAP net margin
attributable to Noah shareholders
|
30.7%
|
|
30.6%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders per ADS,
diluted
|
13.33
|
|
13.42
|
|
0.7%
|
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted
|
16.58
|
|
16.80
|
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-preliminary-financial-results-for-the-fourth-quarter-and-full-year-2019-301029056.html
SOURCE Noah Holdings Limited