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 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.
|
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