SHANGHAI, May 18, 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 financial results for the first quarter of 2020.

FIRST QUARTER 2020 FINANCIAL HIGHLIGHTS

  • Net revenues for the first quarter of 2020 were RMB746.1 million (US$105.4 million), compared with RMB889.9 million for the corresponding period in 2019, and RMB788.3 million for the fourth quarter of 2019.

(RMB millions,

except percentages)

Q1 2019



Q1 2020



YoY Change

Wealth management

623.4



552.6



(11.4%)

Asset management

167.9



165.4



(1.5%)

Lending and other businesses

98.6



28.1



(71.5%)

Total net revenues

889.9



746.1



(16.2%)

  • Income/ (loss) from operations for the first quarter of 2020 was RMB256.3 million (US$36.2 million), a 15.3% decrease from the corresponding period in 2019, and a 102.9% increase from the fourth quarter of 2019.

(RMB millions,

except percentages)

Q1 2019



Q1 2020



YoY Change

Wealth management

189.5



166.2



(12.3%)

Asset management

67.8



93.5



37.9%

Lending and other businesses

45.2



(3.4)



N.A.

Total income/(loss) from operations

302.5



256.3



(15.3%)

  • Net income attributable to Noah shareholders for the first quarter of 2020 was RMB243.0 million (US$34.3 million), a 14.6% decrease from the corresponding period in 2019, but a 136.4% increase from the fourth quarter of 2019.
  • Non-GAAP[1] net income attributable to Noah shareholders for the first quarter of 2020 was RMB255.9 million (US$36.1 million), a 16.0% decrease from the corresponding period in 2019, but a 119.6% increase from the fourth quarter of 2019.

FIRST QUARTER 2020 OPERATIONAL UPDATES

Wealth Management Business

The Company offers financial products and provides value-added services to high net worth clients in China and overseas for its wealth management business. Noah primarily distributes private equity, public securities, credit and other products denominated in RMB and other currencies.

  • Total number of registered clients as of March 31, 2020 was 321,148, a 16.8% increase from March 31, 2019, and a 9.3% increase from December 31, 2019.
  • Total number of active clients[2] during the first quarter of 2020 was 4,075, a 49.8% decrease from the first quarter of 2019, and a 9.7% decrease from the fourth quarter of 2019, as we are in the transition of offering more online mutual fund products to our clients. However, counting in mutual funds clients, the number of clients who transacted with us during the first quarter of 2020 were 16,831, a 107.4% increase from the first quarter of 2019, and a 4.0% increase from the fourth quarter.
  • Aggregate value of financial products distributed during the first quarter of 2020 was RMB23.2 billion (US$3.3 billion), a 17.3% decrease from the first quarter of 2019, primarily due to the fact that the Company is adjusting its product strategy and thus no longer offers single-counterparty private debt products to clients since the third quarter of 2019. The aggregate value increased by 76.1% compared with the fourth quarter of 2019 due to the significant growth of public securities products offered by the Company.

Product type

Three months ended March 31,


2019


2020


(RMB in billions, except percentages)

Credit products

22.1


78.8%


0.2


0.8%

Private equity products

1.3


4.8%


2.9


12.6%

Public securities products

3.2


11.4%


19.1


82.4%

Other products

1.4


5.0%


1.0


4.2%

All products

28.0


100.0%


23.2


100.0%

  • Coverage network in mainland China included 292 service centers covering 78 cities as of March 31, 2020, compared with 313 service centers covering 83 cities as of March 31, 2019 and 292 service centers covering 82 cities as of December 31, 2019. The decrease in the number of service centers and cities is primarily a result of consolidation of duplicate service centers in order to optimize costs and expenses.
  • Number of relationship managers was 1,209 as of March 31, 2020, a 19.2% decrease from March 31, 2019, and a 6.1% decrease from December 31, 2019, primarily as a result of the Company's efforts to streamline operational human resources. The turnover rate of core "elite" relationship managers was 1.0%, compared with 4.1% as of December 31, 2019.

Asset Management Business

The Company's asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading alternative multi-asset manager in China with overseas offices in Hong Kong, the 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 March 31, 2020 were RMB161.7 billion (US$22.8 billion), a 5.0% decrease from December 31, 2019 and a 5.5% decrease from March 31, 2019, primarily due to the voluntary accelerated repayments of certain credit products.

Investment type

As of 
December 31, 
2019



Growth


Distribution/ 
Redemption


As of
March 31, 
2020


(RMB billions, except percentages)

Private equity

104.9


61.6%


0.9


0.1


105.7


65.4%

Credit

29.6


17.4%


-


9.7


19.9


12.3%

Real estate

17.6


10.3%


0.7


0.1


18.2


11.3%

Public securities[3]

9.3


5.5%


0.8


0.9


9.2


5.7%

Multi-strategies

8.8


5.2%


0.5


0.6


8.7


5.3%

All Investments

170.2


100.0%


2.9


11.4


161.7


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 first quarter of 2020 was RMB0.1 billion, compared with RMB2.5 billion for the corresponding period of 2019, due to the slowed down notarization process during the outbreak of COVID-19, and our voluntary reduction of loan origination. Other businesses include an online financial advisory platform.

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "In the first quarter of 2020, our transformation to distributing more standardized products showed initial success. Driven by the continuous and strong momentum of public securities products that we offer, our transaction volume grew 76.1% from the fourth quarter of 2019. It is worth noting that standardized products accounted for 82.4% of the total volume, whereas credit products were 78.8% of the total volume in the same period last year. I want to attribute this success to our clients who continue to stand by us and our employees who have been showing great resilience during this difficult time facing an unprecedented global epidemic. As encouraged as we are by the strong start of the year, we remain cautious about the fact that some of Noah's overseas businesses have been affected by the COVID-19 outbreak and the travel restrictions caused by it. We have been actively preparing for the upcoming quarters of this year while increasing the investment and development of our IT infrastructure to further improve our online service experience and product offering. "

FIRST QUARTER 2020 FINANCIAL RESULTS

Net Revenues

Net revenues for the first quarter of 2020 were RMB746.1 million (US$105.4 million), a 16.2% decrease from the corresponding period in 2019, primarily driven by the decreased one-time commissions and other service fees, partially offset by the increase in recurring service fees and performance-based income.

  • Wealth Management Business

- Net revenues from one-time commissions for the first quarter of 2020 were RMB210.7 million (US$29.8 million), a 34.7% decrease from the corresponding period in 2019, primarily due to the decrease in transaction value as well as change in product mix resulting lower commission rate of financial products that we distributed. However, it increased 33.1% from the fourth quarter of 2019, primarily due to the increased transaction volume in public securities products.
- Net revenues from recurring service fees for the first quarter of 2020 were RMB289.2 million (US$40.8 million), a 12.9% increase from the corresponding period in 2019. The increase was primarily due to the cumulative effect of financial products with recurring service fees previously distributed.
- Net revenues from performance-based income for the first quarter of 2020 were RMB15.1 million (US$2.1 million), compared with RMB1.2 million in the corresponding period of 2019. The increase was primarily due to more performance-based income realized from public securities.
- Net revenues from other service fees for the first quarter of 2020 were RMB37.6 million (US$5.3 million), compared with RMB43.3 million in the corresponding period in 2019, primarily due to less value-added services Noah offers to its high net worth clients during the COVID-19 epidemic.

  • Asset Management Business

- Net revenues from recurring service fees for the first quarter of 2020 were RMB160.4 million (US$22.7 million), a 1.4% decrease from the corresponding period in 2019. The decrease was primarily due to the decrease in assets under management.
- Net revenues from performance-based income for the first quarter of 2020 were RMB4.6 million (US$0.6 million), compared with RMB3.6 million in the corresponding period of 2019. The increase was primarily due to more performance-based income realized from public securities.

  • Lending and Other Businesses

- Net revenues for the first quarter of 2020 were RMB28.1 million (US$4.0 million), a 71.5% decrease from the corresponding period in 2019. The decrease was primarily due to reduced loan origination since the second half year of 2019.

Operating Costs and Expenses

Operating costs and expenses for the first quarter of 2020 were RMB489.9 million (US$69.2 million), a 16.6% decrease from the corresponding period in 2019. Operating costs and expenses primarily consisted of compensation and benefits of RMB364.8 million (US$51.5 million), selling expenses of RMB44.5 million (US$6.3 million), general and administrative expenses of RMB63.7 million (US$9.0 million), provision of credit losses of RMB2.8 million (US$0.4 million) and other operating expenses of RMB32.6 million (US$4.6 million).

  • Operating costs and expenses for the wealth management business for the first quarter of 2020 were RMB386.4 million (US$54.6 million), a 10.9% decrease from the corresponding period in 2019, primarily due to various cost control measurements that we took in the first quarter of 2020, including a decrease in compensation and benefits and selling expenses partially offset by an increase in general administrative expenses.
  • Operating costs and expenses for the asset management business for the first quarter of 2020 were RMB71.9 million (US$10.2 million), a 28.1% decrease from the corresponding period in 2019, primarily due to a decrease in compensation and benefits, selling expenses and general administrative expenses.
  • Operating costs and expenses for lending and other businesses for the first quarter of 2020 were RMB31.5 million (US$4.5 million), a 40.9% decrease from the corresponding period in 2019, primarily due to a decrease in compensation and benefits and selling expenses.

Operating Margin

Operating margin for the first quarter of 2020 was 34.3%, compared with 34.0% for the corresponding period in 2019.

  • Operating margin for the wealth management business for the first quarter of 2020 was 30.1%, compared with 30.4% for the corresponding period in 2019.
  • Operating margin for the asset management business for the first quarter of 2020 was 56.5%, compared with 40.4% for the corresponding period in 2019.
  • Loss from operation for the lending and other businesses for the first quarter of 2020 was RMB3.5 million (US$0.5 million), compared with an operating income of RMB45.2 million for the corresponding period in 2019.

Investment Income

Investment income for the first quarter of 2020 was RMB17.6 million (US$2.5 million), compared with RMB25.7 million for the corresponding period in 2019. The decrease was primarily related to the fluctuation of fair value of equity securities.

Income Tax Expenses

Income tax expenses for the first quarter of 2020 were RMB68.3 million (US$9.6 million), a 14.1% decrease from the corresponding period in 2019. The decrease was primarily due to lower taxable income. 

Net Income

  • Net Income

- Net income for the first quarter of 2020 was RMB243.7 million (US$34.4 million), a 15.3% decrease from the corresponding period in 2019.
- Net margin for the first quarter of 2020 was 32.7%, up from 32.3% for the corresponding period in 2019.
- Net income attributable to Noah shareholders for the first quarter of 2020 was RMB243.0 million (US$34.3 million), a 14.6% decrease from the corresponding period in 2019, but a 136.4% increase from the fourth quarter of 2019.
- Net margin attributable to Noah shareholders for the first quarter of 2020 was 32.6%, up from 32.0% for the corresponding period in 2019.
- Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2020 was RMB3.94 (US$0.56) and RMB3.92 (US$0.55), respectively, compared with RMB4.70 and RMB4.57 respectively, for the corresponding period in 2019.

  • Non-GAAP Net Income Attributable to Noah Shareholders

- Non-GAAP net income attributable to Noah shareholders for the first quarter of 2020 was RMB255.9 million (US$36.1 million), a 16.0% decrease from the corresponding period in 2019, but a 119.6% increase from the fourth quarter of 2019.
- Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2020 was 34.3%, up from 34.2% for the corresponding period in 2019.
- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2020 was RMB4.13 (US$0.58), down from RMB4.90 for the corresponding period in 2019.

Balance Sheet and Cash Flow

As of March 31, 2020, the Company had RMB4,045.8 million (US$571.4 million) in cash and cash equivalents, compared with RMB4,387.3 million as of December 31, 2019 and RMB2,869.6 million as of March 31, 2019.

Net cash outflow from the Company's operating activities during the first quarter of 2020 was RMB123.1 million (US$17.4 million), primarily due to the payment of other current liabilities in relation to our trust service and partially offset by cash inflow generated from operating profit.

Net cash outflow from the Company's investing activities during the first quarter of 2020 was RMB133.4 million (US$18.8 million), primarily due to the purchase of held-to-maturity investments.

Net cash outflow from the Company's financing activities was RMB95.4 million (US$13.5 million) in the first quarter of 2020, primarily due to the capital divestment of non-controlling interest of one consolidated fund.

[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.

[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, excluding clients who transacted on our online mutual fund platform.

[3] The asset distribution/redemption of public securities also includes market appreciation or depreciation.

2020 FORECAST

The Company estimates that 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 estimate reflects management's current business outlook and is subject to change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's first quarter 2020 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

 

Conference call details

Date/Time

 

Monday, May 18, 2020 at 8:00 p.m., U.S. Eastern Time

Tuesday, May 19, 2020 at 8:00 a.m., Hong Kong Time

Dial in details


- United States Toll Free

+1-888-317-6003

- Mainland China Toll Free

4001-206-115

- Hong Kong Toll Free

800-963-976

- International

+1-412-317-6061

Conference Title

Noah Holdings First Quarter 2020 Earnings Call

Participant Elite Entry Number

6168003

Participants will need to dial in 10-15 minutes early and use the above Elite Entry Number in order to join the conference. A telephone replay will be available starting one hour after the end of the conference call until May 25, 2020 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10143551.

A live and archived webcast of the conference call will be available at Noah's investor relations website under the News & Events section at ir.noahgroup.com.

DISCUSSION OF 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 quarter of 2020, Noah distributed RMB23.2 billion (US$3.3 billion) of financial products. Through Gopher Asset Management, Noah had assets under management of RMB161.7 billion (US$22.8 billion) as of March 31, 2020.

Noah's wealth management business primarily distributes credit, private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,209 relationship managers across 292 service centers in 78 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 321,148 registered clients as of March 31, 2020. 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.

For more information, please visit Noah at ir.noahgroup.com.

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the first quarter of 2020 ended March 31, 2020 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 RMB7.0808 to US$1.00, the effective noon buying rate for March 31, 2020 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; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

 

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

 

 

Noah Holdings Limited 

Condensed Consolidated Balance Sheets

(unaudited)



As of


December 31,


March 31, 


March 31, 


2019


2020


2020


RMB'000


RMB'000


USD'000

Assets







Current assets:








Cash and cash equivalents

4,387,345


4,045,796


571,376



Restricted cash

6,589


6,583


930



Short-term investments

671,259


97,863


13,821



Accounts receivable, net

219,566


297,493


42,014



Loans receivable, net

654,060


620,905


87,689



Amounts due from related parties

548,704


757,278


106,948



Other current assets 

243,701


196,857


27,802



Total current assets 

6,731,224


6,022,775


850,580


Long-term investments, net

881,091


837,449


118,270


Investment in affiliates

1,272,261


1,325,649


187,217


Property and equipment, net

296,320


271,574


38,354


Operating lease right-of-use assets, net

352,186


337,405


47,651


Deferred tax assets

167,430


167,254


23,621


Other non-current assets 

102,092


126,369


17,844

Total Assets

9,802,604


9,088,475


1,283,537







Liabilities and Equity







Current liabilities:








Accrued payroll and welfare expenses 

555,719


644,420


91,009



Income tax payable

126,743


101,630


14,353



Deferred revenues

100,693


141,228


19,945



Other current liabilities

721,898


369,847


52,232



Total current liabilities

1,505,053


1,257,125


177,539


Operating lease liabilities, non-current

362,757


344,078


48,593


Deferred tax liabilities

56,401


56,804


8,022


Other non-current liabilities

3,433


2,787


394


Total Liabilities 

1,927,644


1,660,794


234,548


Equity

7,874,960


7,427,681


1,048,989

Total Liabilities and Equity

9,802,604


9,088,475


1,283,537

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(In RMB'000, except for USD data, per ADS data and percentages)

(unaudited)




Three months ended 


March 31,


March 31,


March 31,


Change


2019


2020


2020



Revenues:

RMB'000


RMB'000


USD'000



Revenues from others:








     One-time commissions

216,643


207,185


29,260


(4.4%)

     Recurring service fees

132,476


148,457


20,966


12.1%

     Performance-based income

1,094


14,618


2,064


1,236.2%

     Other service fees

145,377


66,608


9,407


(54.2%)

Total revenues from others

495,590


436,868


61,697


(11.8%)

Revenues from funds Gopher
manages:








     One-time commissions

107,908


4,749


671


(95.6%)

     Recurring service fees

288,156


303,450


42,855


5.3%

     Performance-based income

3,758


5,175


731


37.7%

Total revenues from funds Gopher
     manages

399,822


313,374


44,257


(21.6%)

Total revenues

895,412


750,242


105,954


(16.2%)

Less: VAT related surcharges 

(5,528)


(4,125)


(583)


(25.4%)

Net revenues

889,884


746,117


105,371


(16.2%)

Operating costs and expenses:








   Compensation and benefits








       Relationship manager    








       compensation

(167,268)


(170,052)


(24,016)


1.7%

      Others

(237,037)


(194,787)


(27,509)


(17.8%)

Total compensation and benefits

(404,305)


(364,839)


(51,525)


(9.8%)

Selling expenses

(90,456)


(44,540)


(6,290)


(50.8%)

General and administrative








    expenses 

(59,001)


(63,685)


(8,994)


7.9%

  Provision for credit losses

451


(2,809)


(397)


N.A.

  Other operating expenses 

(50,828)


(32,617)


(4,606)


(35.8%)

  Government subsidies 

16,780


18,635


2,632


11.1%

Total operating costs and 
   expenses 

(587,359)


(489,855)


(69,180)


(16.6%)

Income from operations 

302,525


256,262


36,191


(15.3%)

Other income:








   Interest income 

23,123


22,170


3,131


(4.1%)

   Interest expenses

(430)


-


-


N.A.

   Investment income 

25,663


17,566


2,481


(31.6%)

   Other (expense) income

(1,928)


858


121


N.A.

Total other income

46,428


40,594


5,733


(12.6%)

Income before taxes and income
   from equity in affiliates

348,953


296,856


41,924


(14.9%)

Income tax expense

(79,492)


(68,276)


(9,642)


(14.1%)

Income from equity in affiliates

18,123


15,076


2,129


(16.8%)

Net income

287,584


243,656


34,411


(15.3%)

Less: net income attributable to
   non-controlling interests

3,007


631


89


(79.0%)

Net income attributable to Noah
    shareholders 

284,577


243,025


34,322


(14.6%)









Income per ADS, basic

4.7


3.94


0.56


(16.2%)

Income per ADS, diluted

4.57


3.92


0.55


(14.2%)









Margin analysis:








Operating margin

34.0%


34.3%


34.3%



Net margin

32.3%


32.7%


32.7%











Weighted average ADS equivalent[1]:








Basic

60,570,704


61,619,852


61,619,852



Diluted

62,355,964


61,991,117


61,991,117



ADS equivalent outstanding at end
   of period









61,180,845


61,635,280


61,635,280



























[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two
ADSs.








 

 

Noah Holdings Limited 

Condensed Comprehensive Income Statements 

(unaudited)



Three months ended 


March 31,


March 31,


March 31,


Change


2019


2020


2020




RMB'000


RMB'000


USD'000



Net income

287,584


243,656


34,411


(15.3%)

Other comprehensive income, net of tax:








Foreign currency translation adjustments

(30,858)


37,319


5,270


N.A.

Fair value fluctuation of available for sale
Investment (after tax)

 

74


 

(4)


(1)


N.A.

Comprehensive income

256,800


280,971


39,680


9.4%

Less: Comprehensive income attributable
to non-controlling interests

3,217


626


88


(80.5%)

Comprehensive income attributable to Noah
    shareholders

253,583


280,345


39,592


10.6%

 

 

Noah Holdings Limited

Supplemental Information 

(unaudited) 



As of 




March 31, 
2019


March 31, 
2020


Change







Number of registered clients 

274,893


321,148


16.8%

Number of relationship managers 

1,496


1,209


(19.2%)

Number of cities under coverage in mainland
    China

83


78


(6.0%)
































Three months ended 




March 31,
2019


March 31, 
2020


Change


(in millions of RMB, except number of active clients and
percentages)

Number of active clients[4] 

8,117


4,075


(49.8%)

Transaction value: 






Credit products 

22,101


183


(99.2%)

Private equity products 

1,333


2,931


119.9%

Public securities products

3,205


19,111


496.3%

Other products

1,401


969


(30.8%)

Total transaction value

28,040


23,194


(17.3%)


[4]  "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, excluding clients who transacted on our online
mutual fund platform.


 

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 



Three months ended March 31, 2020



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

206,944


241


-


207,185

Recurring service fees

147,763


694


-


148,457

Performance-based income

14,618


-


-


14,618

Other service fees

37,819


134


28,655


66,608

Total revenues from others

407,144


1,069


28,655


436,868

Revenues from funds Gopher manages:








One-time commissions

4,749


-


-


4,749

Recurring service fees

142,860


160,590


-


303,450

Performance-based income

556


4,619


-


5,175

Total revenues from funds Gopher manages

148,165


165,209


-


313,374

Total revenues

555,309


166,278


28,655


750,242

Less: VAT related surcharges 

(2,670)


(868)


(587)


(4,125)

Net revenues

552,639


165,410


28,068


746,117

Operating costs and expenses:








Compensation and benefits








Relationship manager compensation

(170,052)


-


-


(170,052)

Other compensations

(118,227)


(61,313)


(15,247)


(194,787)

Total compensation and benefits

(288,279)


(61,313)


(15,247)


(364,839)

Selling expenses

(36,555)


(7,314)


(671)


(44,540)

General and administrative expenses 

(47,582)


(10,730)


(5,373)


(63,685)

Provision for credit losses

-


-


(2,809)


(2,809)

Other operating expenses

(23,602)


(1,546)


(7,469)


(32,617)

Government subsidies 

9,607


8,981


47


18,635

Total operating costs and expenses 

(386,411)


(71,922)


(31,522)


(489,855)

Income (loss) from operations

166,228


93,488


(3,454)


256,262

 

 

Noah Holdings Limited

Segment Condensed Income Statements

 (unaudited)


         Three months ended March 31, 2019




Wealth Management

 Business


Asset Management

Business


Lending 
and Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others:








One-time commissions

216,180


463


-


216,643

Recurring service fees

131,618


858


-


132,476

Performance-based income

1,094


-


-


1,094

Other service fees

43,445


1,166


100,766


145,377

Total revenues from others

392,337


2,487


100,766


495,590

Revenues from funds Gopher
   manages:








One-time commissions

107,908


-


-


107,908

Recurring service fees

125,751


162,405


-


288,156

Performance-based income

97


3,661


-


3,758

Total revenues from funds Gopher
   manages

233,756


166,066


-


399,822

Total revenues

626,093


168,553


100,766


895,412

Less: VAT related surcharges

(2,730)


(628)


(2,170)


(5,528)

Net revenues

623,363


167,925


98,596


889,884

Operating costs and expenses:








Compensation and benefits








Relationship manager
compensation

 

(167,125)


-


 

(143)


 

(167,268)

Other compensations

(146,458)


(65,212)


(25,367)


(237,037)

Total compensation and benefits

(313,583)


(65,212)


(25,510)


(404,305)

Selling expenses

(83,114)


(3,903)


(3,439)


(90,456)

General and administrative
  expenses

 

(37,336)


 

(15,261)


 

(6,404)


 

(59,001)

Provision for credit losses

-


-


451


451

Other operating expenses

(15,086)


(17,266)


(18,476)


(50,828)

Government subsidies

15,218


1,562


-


16,780

Total operating costs and expenses

(433,901)


(100,080)


(53,378)


(587,359)

Income from operations

189,462


67,845


45,218


302,525


 

 

Noah Holdings Limited

Supplement Revenue Information for Segment

(unaudited)



Three months ended March 31, 2020


Wealth 
Management
Business


Asset 
Management
Business


Lending 
and Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

368,817


145,086


28,655


542,558

Hong Kong

140,765


16,567


-


157,332

Others

45,727


4,625


-


50,352

Total revenues

555,309


166,278


28,655


750,242


 


Three months ended March 31, 2019


Wealth 
Management
Business


Asset 
Management
Business


Lending 
and Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

401,523


145,608


100,766


647,897

Hong Kong

180,596


20,943


-


201,539

Others

43,974


2,002


-


45,976

Total revenues

626,093


168,553


100,766


895,412

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

(In RMB, except for per ADS data and percentages) 

(unaudited) [5]



Three months ended 





March 31, 


March 31, 


Change 



2019


2020





RMB'000


RMB'000











Net income attributable to Noah shareholders

284,577


243,025


(14.6%)


Adjustment for share-based compensation

29,616


18,291


(38.2%)


Less: gains from fair value changes of equity securities
    (unrealized)

8,742


6,083


(30.4%)


Add: gains from sales of equity securities (realized)

4,885


-


N.A.


Less: Tax effect of adjustments

5,714


(652)


N.A.


Adjusted net income attributable to Noah shareholders
    (non-GAAP)

304,622


255,885


(16.0%)









 

Net margin attributable to Noah shareholders

32.0%


32.6%




Non-GAAP net margin attributable to Noah shareholders

34.2%


34.3%











Net income attributable to Noah shareholders per ADS,
   diluted

4.57


3.92


 

(14.2%)


Non-GAAP net income attributable to Noah shareholders
   per ADS, diluted

4.90


4.13


(15.7%)









[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.


 

 

Cision View original content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-first-quarter-of-2020-301060849.html

SOURCE Noah Holdings Limited

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