SHANGHAI, Nov. 30, 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 third quarter of 2020.
THIRD QUARTER 2020 FINANCIAL HIGHLIGHTS
[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.
|
- Net revenues for the third quarter of 2020
were RMB859.1 million (US$126.5 million), a 2.0% increase from the
corresponding period in 2019, and a 14.9% increase from the second
quarter of 2020.
(RMB
millions,
except
percentages)
|
Q3 2019
|
|
|
Q3 2020
|
|
|
YoY Change
|
Wealth
management
|
542.4
|
|
|
627.7
|
|
|
15.7%
|
Asset
management
|
240.4
|
|
|
222.4
|
|
|
(7.5%)
|
Lending and other
businesses
|
59.2
|
|
|
9.0
|
|
|
(84.8%)
|
Total net
revenues
|
842.0
|
|
|
859.1
|
|
|
2.0%
|
- Income from operations for the third quarter of 2020 was
RMB347.2 million (US$51.1 million), a 48.2% increase from the
corresponding period in 2019, and an 8.7% increase from the second
quarter of 2020.
(RMB
millions,
except
percentages)
|
Q3 2019
|
|
|
Q3 2020
|
|
|
YoY Change
|
Wealth
management
|
83.5
|
|
|
248.4
|
|
|
197.1%
|
Asset
management
|
145.7
|
|
|
113.7
|
|
|
(22.0%)
|
Lending and other
businesses
|
5.1
|
|
|
(14.9)
|
|
|
N.A.
|
Total income from
operations
|
234.3
|
|
|
347.2
|
|
|
48.2%
|
- Net income attributable to Noah shareholders for the
third quarter of 2020 was RMB285.6
million (US$42.1 million), a
49.1% increase from the corresponding period in 2019, while a 4.7%
decrease from the second quarter of 2020.
- Non-GAAP[1] net income attributable to
Noah shareholders for the third quarter of 2020 was
RMB301.1 million (US$44.3 million), a 14.9% decrease from the
corresponding period in 2019, and a 2.0% decrease from the second
quarter of 2020.
THIRD 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 public securities, private
equity, credit and insurance products denominated in RMB and other
currencies.
- Total number of registered clients as of September 30, 2020 was 350,409, a 21.6% increase
from September 30, 2019 and a 5.5%
increase from June 30, 2020.
- Total number of active clients[2] which
excluded mutual fund clients during the third quarter of 2020 was
4,466, a 31.0% increase from the corresponding period in 2019 and a
32.6% increase from the second quarter of 2020. Counting in mutual
funds clients, the total number of clients who transacted with us
during the third quarter of 2020 was 20,509, a 105.9% increase from
the third quarter of 2019, and a 39.5% increase from the second
quarter of 2020.
- Aggregate value of financial products
distributed during the third quarter of 2020 was RMB28.8 billion (US$4.2
billion), a 122.2% increase from the corresponding period in
2019, due to the significant increase in the distribution of public
securities products and private equity products.
[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.
|
Product
type
|
Three months ended
September 30,
|
|
2019
|
|
2020
|
|
(RMB in billions,
except percentages)
|
Public securities
products
|
7.5
|
|
57.5%
|
|
20.9
|
|
72.4%
|
Private equity
products
|
3.5
|
|
26.8%
|
|
7.2
|
|
25.1%
|
Credit
products
|
1.5
|
|
11.7%
|
|
0.1
|
|
0.4%
|
Other
products
|
0.5
|
|
4.0%
|
|
0.6
|
|
2.1%
|
All
products
|
13.0
|
|
100.0%
|
|
28.8
|
|
100.0%
|
- Coverage network in mainland China included 266 service centers covering 79
cities as of September 30, 2020,
compared with 264 service centers covering 78 cities as of
June 30, 2020, which is stable
quarter over quarter, and compared with 307 services centers
covering 81 cities as of September 30,
2019, primarily as a result of consolidation of duplicate
service centers in order to optimize costs and expenses since
fourth quarter of 2019.
- Number of relationship managers was 1,204 as of
September 30, 2020, a 0.7% increase
from June 30, 2020. The turnover rate
of core "elite" relationship managers was 2.3%, compared with 1.4%
as of June 30, 2020.
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 also with international 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 September 30, 2020 were RMB155.7 billion (US$22.9
billion), a 2.3% decrease from June
30, 2020 due to the repayments of certain credit products
and a 11.8% decrease from September 30,
2019.
Investment
type
|
As of
June 30,
2020
|
|
Growth
|
|
Distribution/
Redemption
|
|
As of
September 30,
2020
|
|
(RMB billions,
except percentages)
|
Private
equity
|
107.7
|
|
67.6%
|
|
7.6
|
|
5.9
|
|
109.4
|
|
70.3%
|
Real
estate
|
17.3
|
|
10.8%
|
|
0.1
|
|
0.6
|
|
16.8
|
|
10.7%
|
Credit
|
14.1
|
|
8.9%
|
|
0.1
|
|
2.5
|
|
11.7
|
|
7.5%
|
Public
securities[3]
|
11.8
|
|
7.4%
|
|
0.9
|
|
1.9
|
|
10.8
|
|
7.0%
|
Multi-strategies
|
8.5
|
|
5.3%
|
|
0.3
|
|
1.8
|
|
7.0
|
|
4.5%
|
All
Investments
|
159.4
|
|
100.0%
|
|
9.0
|
|
12.7
|
|
155.7
|
|
100.0%
|
[3] The
distribution/redemption of public securities also includes market
appreciation or depreciation.
|
Lending and Other Businesses
The Company's lending business utilizes an advanced
risk-management system to assess and facilitate short-term loans to
high quality borrowers, often secured with collateral. The total
amount of loans originated during the third quarter of 2020 was
RMB0.1 billion, compared with
RMB1.3 billion in the corresponding
period of 2019 as our voluntary reduction of loan origination.
Other businesses include an online financial advisory platform.
Ms. Jingbo Wang, co-founder and
CEO of Noah, said, "We are very pleased to report a really strong
quarter: our transaction value increased 122.2% from the third
quarter in 2019 to RMB28.8 billion,
driven by significantly higher portion of public securities and
private equity distribution. Public securities transaction value
grew to a record high of RMB20.9
billion. This indicates our continued success in our
transformation to standardized products while maintaining the
leading market position in private equities. We also continued to
exit from single-counterparty private credit products. The total
number of active clients grew 105.9% from the third quarter of 2019
to reach 20,509, benefiting from the onshore and offshore
paralleled mutual fund platforms, Fund Smile and iNoah, which
represents a recovery of client confidence. Noah Holdings
celebrated its 10th Listing Anniversary on the NYSE a
few weeks ago. We are grateful for the support the capital markets
provided to us and have confidence in our continued growth in the
coming decade."
THIRD QUARTER 2020 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2020 were
RMB859.1 million (US$126.5 million), a 2.0% increase from the
corresponding period in 2019, primarily driven by increased
one-time commissions, recurring service fee revenues and
performance-based income, and partially offset by decreased other
service fees.
- Wealth Management Business
- Net revenues from one-time
commissions for the third quarter of 2020 were
RMB189.6 million (US$27.9 million), a 26.8% increase from the
corresponding period in 2019 due to an increase in financial
products distributed in third quarter of 2020.
- Net revenues from recurring service fees for the
third quarter of 2020 were RMB380.5
million (US$56.0 million), a
19.3% increase from the corresponding period in 2019. The increase
was primarily due to the service fees recognized upon liquidation
of certain credit products with higher fee rates.
- Net revenues from performance-based income for the
third quarter of 2020 were RMB33.7
million (US$5.0 million), a
679.3% increase from the corresponding period of 2019, primarily
due to an increase in performance-based income from public
securities products.
- Net revenues from other service fees for the third
quarter of 2020 were RMB23.8 million
(US$3.5 million), a 65.7% decrease
from 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 third quarter of 2020 were RMB179.5 million (US$26.4
million), a 10.4% decrease from the corresponding period in
2019. The decrease was primarily due to a decrease in assets under
management.
- Net revenues from performance-based income for the third
quarter of 2020 were RMB36.8 million
(US$5.4 million), a 3.6% decrease
from the corresponding period in 2019.
- Lending and Other Businesses
- Net revenues for the
third quarter of 2020 were RMB9.0
million (US$1.3 million), an
84.8% decrease from the corresponding period in 2019. The decrease
was primarily due to reduced loan origination since the second half
of 2019 as well as the ongoing impact of COVID-19.
Operating Costs and Expenses
Operating costs
and expenses for the third quarter of 2020
were RMB511.8 million (US$75.4 million), a 15.8% decrease from the
corresponding period in 2019. Operating costs and expenses
primarily consisted of compensation and benefits of RMB362.5 million (US$53.4
million), selling expenses of RMB69.9
million (US$10.3 million),
general and administrative expenses of RMB61.7 million (US$9.1
million) and other operating expenses of RMB23.1 million (US$3.4
million).
- Operating costs and expenses for the wealth
management business for the third quarter of 2020 were
RMB379.3 million (US$55.9 million), a 17.3% decrease from the
corresponding period in 2019, primarily due to a decrease in
compensation and benefits as well as selling and general and
administrative expenses.
- Operating costs and expenses for the asset management
business for the third quarter of 2020 were RMB108.7 million (US$16.0
million), a 14.7% increase from the corresponding period in
2019, primarily due to an increase in compensation and
benefits.
- Operating costs and expenses for the lending and
other businesses for the third quarter of 2020 were
RMB23.8 million (US$3.5 million), a 56.0% decrease from the
corresponding period in 2019, primarily due to a decrease in
compensation and benefits as well as other operating expenses.
Operating Margin
Operating margin for the third quarter of 2020 was 40.4%,
compared with 27.8% for the corresponding period in 2019.
- Operating margin for the wealth management business for
the third quarter of 2020 was 39.6%, compared with 15.4% for the
corresponding period in 2019, due to continuously operating
efficiency improvement and less legal expenses incurred related to
Camsing case.
- Operating margin for the asset management
business for the third quarter of 2020 was 51.1%, compared with
60.6% for the corresponding period in 2019.
- Loss from operations for the lending and other
businesses for the third quarter of 2020 was RMB14.8 million (US$2.2
million), compared with income from operations in the amount
of RMB5.1 million in the
corresponding period of 2019 due to reduced loan origination.
Investment Income
Investment income for the third quarter of 2020 was
RMB0.8 million (US$0.1 million), compared with investment
loss of RMB48.4 million for the
corresponding period in 2019. There is little fair value change of
investment for the third quarter of 2020, while the loss in the
third quarter of 2019 was primarily due to changes in fair value of
equity securities and other investments.
Income Tax Expenses
Income tax expenses for the third
quarter of 2020 were RMB84.9 million
(US$12.5 million), an 89.9% increase
from the corresponding period in 2019, primarily due to higher
taxable income.
Income from Equity in Affiliates
Income from equity in affiliates for the third
quarter of 2020 was RMB4.7 million
(US$0.7 million), a 91.4% decrease
from the corresponding period in 2019, primarily due to decrease of
net income of the funds of funds we manage and invest in as the
general partner or manager.
Net Income
- Net income for the third
quarter of 2020 was RMB283.8 million
(US$41.8 million), a 39.3% increase
compared to the corresponding period in 2019.
- Net margin for the third quarter of 2020 was 33.0%, up
from 24.2% for the corresponding period in 2019.
- Net income attributable to Noah shareholders for the third
quarter of 2020 was RMB285.6 million
(US$42.1 million), a 49.1% increase
from the corresponding period in 2019.
- Net margin attributable to Noah shareholders for the third
quarter of 2020 was 33.2%, up from 22.8% for the corresponding
period in 2019.
- Net income attributable to Noah shareholders per basic and
diluted ADS for the third quarter of 2020 was RMB4.63 (US$0.68)
and RMB4.60 (US$0.68), respectively, compared with
RMB3.13 and RMB3.10 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 third quarter of 2020
was RMB301.1 million (US$44.3 million), a 14.9% decrease from the
corresponding period in 2019, due to one non-recurring gain from
sale of equity securities in the amount of RMB137.3 million in the third quarter of
2019.
- Non-GAAP net margin attributable to Noah shareholders for
the third quarter of 2020 was 35.0%, down from 42.0% for the
corresponding period in 2019.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the third quarter of 2020 was RMB4.85 (US$0.71),
down from RMB5.73 for the
corresponding period in 2019.
Balance Sheet and Cash Flow
As of September 30, 2020, the
Company had RMB4,597.4 million
(US$677.1 million) in cash and cash
equivalents, compared with RMB3,669.2
million as of September 30,
2019 and RMB4,170.7 million as
of June 30, 2020.
Net cash inflow from the Company's operating activities during
the third quarter of 2020 was RMB360.8
million (US$53.1 million),
compared to net cash inflow of RMB220.4
million in the corresponding period in 2019. The increase
was mainly due to increase in net income as well as changes in
working capital.
Net cash inflow from the Company's investing activities during
the third quarter of 2020 was RMB165.7
million (US$24.4 million),
compared to net cash inflow of RMB440.0
million in the corresponding period in 2019. The cash inflow
was primarily due to proceeds from the disposal of various
investments.
Net cash outflow from the Company's financing activities was
RMB22.9 million (US$3.4 million) in the third quarter of 2020,
compared to net cash inflow of RMB40.6
million in the corresponding period in 2019, primarily due
to the distribution to our non-controlling shareholders of a
consolidated subsidiary.
OTHER COMPANY DEVELOPMENTS
The Company also announced that Mr. Yi
Zhao, the president of the Company, has resigned from the
Company due to personal reasons, which took effect on November 30, 2020. The Company currently has no
plan to appoint a new president as his replacement and the duties
of Mr. Zhao will be redirected amongst current members of the
management team.
Ms. Jingbo Wang, co-founder and
CEO of Noah, said, "On behalf of the Board and the company, I would
like to thank Mr. Zhao for the invaluable support he has provided
to Noah during the past several years, and wish him continued
success in the future."
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
RMB900 million to RMB1.0 billion. This forecast reflects
management's current business outlook and is subject to further
change.
CONFERENCE CALL
Senior management will host a combined English and Chinese
language conference call to discuss the Company's third quarter
2020 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time:
|
Monday, November 30,
2020 at 7:00 p.m., U.S. Eastern Time
Tuesday, December 1,
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 3Q20
Earnings Conference Call
|
Participant
Password:
|
6699621
|
A telephone replay will be available starting one hour after the
end of the conference call until December
07, 2020 at +1-877-344-7529 (US Toll Free) or 1-412-317-0088
(International Toll). The replay access code is 10149103.
A live and archived webcast of the conference call will be
available at Noah's investor relations website under the News &
Events section at http://ir.noahgroup.com.
DISCUSSION OF NON-GAAP
MEASURES
In addition to disclosing financial results prepared in
accordance with U.S. GAAP, the Company's earnings release contains
non-GAAP financial measures excluding the effects of all forms of
share-based compensation, fair value changes of equity investments
(unrealized), adjustment for sale of equity securities and net of
tax impact, if any. See "Reconciliation of GAAP to Non-GAAP
Results" at the end of this press release.
The non-GAAP financial measures disclosed by the Company should
not be considered a substitute for financial measures prepared in
accordance with U.S. GAAP. The financial results reported in
accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP
results should be carefully evaluated. The non-GAAP financial
measures used by the Company may be prepared differently from and,
therefore, may not be comparable to similarly titled measures used
by other companies.
When evaluating the Company's operating performance in the
periods presented, management reviewed the foregoing non-GAAP net
income attributable to Noah shareholders and per diluted ADS and
non-GAAP net margin attributable to Noah shareholders to supplement
U.S. GAAP financial data. As such, the Company's management
believes that the presentation of the non-GAAP financial measures
provides important supplemental information to investors regarding
financial and business trends relating to its results of operations
in a manner consistent with that used by management.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH) is a leading wealth and asset
management service provider in China with a focus on high net worth
individuals. In the first nine months of 2020, Noah distributed
RMB73.4 billion (US$10.8 billion) of financial products. Through
Gopher Asset Management, Noah had assets under management of
RMB155.7 billion (US$22.9 billion) as of September 30, 2020.
Noah's wealth management business primarily distributes private
equity, public securities, credit and insurance products
denominated in RMB and other currencies. Noah delivers customized
financial solutions to clients through a network of 1,204
relationship managers across 266 service centers in 79 cities in
mainland China, and serves the
international investment needs of its clients through offices in
Hong Kong, Taiwan, United
States, Canada,
Australia and Singapore. The Company's wealth management
business had 350,409 registered clients as of September 30, 2020. As a leading alternative
multi-asset manager in China,
Gopher Asset Management manages private equity, real estate, public
securities, credit and multi-strategy investments denominated in
Renminbi and other currencies. The Company also provides lending
services and other businesses.
For more information, please visit Noah at
ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
third quarter of 2020 ended September 30,
2020 are stated in RMB. This announcement contains currency
conversions of certain RMB amounts into US$ 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 RMB6.7896 to US$1.00, the effective noon buying rate for
September 30, 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
|
|
June 30,
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2020
|
|
2020
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
4,170,704
|
|
4,597,443
|
|
677,130
|
|
|
Restricted
cash
|
4,098
|
|
727
|
|
107
|
|
|
Short-term
investments
|
61,151
|
|
55,382
|
|
8,157
|
|
|
Accounts receivable,
net
|
334,411
|
|
360,189
|
|
53,050
|
|
|
Loans receivable,
net
|
619,811
|
|
476,730
|
|
70,215
|
|
|
Amounts due from
related parties
|
766,189
|
|
696,806
|
|
102,628
|
|
|
Other current
assets
|
199,908
|
|
194,464
|
|
28,641
|
|
|
Total current
assets
|
6,156,272
|
|
6,381,741
|
|
939,928
|
|
Long-term
investments, net
|
836,442
|
|
824,562
|
|
121,445
|
|
Investment in
affiliates
|
1,291,255
|
|
1,252,054
|
|
184,408
|
|
Property and
equipment, net
|
262,648
|
|
250,106
|
|
36,837
|
|
Operating lease
right-of-use assets, net
|
343,925
|
|
291,694
|
|
42,962
|
|
Deferred tax
assets
|
164,749
|
|
178,358
|
|
26,269
|
|
Other non-current
assets
|
148,590
|
|
165,559
|
|
24,382
|
Total
Assets
|
9,203,881
|
|
9,344,074
|
|
1,376,231
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
461,530
|
|
510,043
|
|
75,121
|
|
|
Income tax
payable
|
77,381
|
|
136,582
|
|
20,116
|
|
|
Deferred
revenues
|
163,608
|
|
125,092
|
|
18,424
|
|
|
Other current
liabilities
|
351,690
|
|
318,964
|
|
46,978
|
|
|
Total current
liabilities
|
1,054,209
|
|
1,090,681
|
|
160,639
|
|
Operating lease
liabilities, non-current
|
346,241
|
|
289,076
|
|
42,576
|
|
Deferred tax
liabilities
|
56,480
|
|
53,891
|
|
7,937
|
|
Other non-current
liabilities
|
3,526
|
|
867
|
|
128
|
|
Total
Liabilities
|
1,460,456
|
|
1,434,515
|
|
211,280
|
|
Equity
|
7,743,425
|
|
7,909,559
|
|
1,164,951
|
Total Liabilities
and Equity
|
9,203,881
|
|
9,344,074
|
|
1,376,231
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2019
|
|
2020
|
|
2020
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
129,786
|
|
125,000
|
|
18,411
|
|
(3.7%)
|
Recurring service
fees
|
135,201
|
|
200,075
|
|
29,468
|
|
48.0%
|
Performance-based
income
|
4,383
|
|
27,217
|
|
4,009
|
|
521.0%
|
Other service
fees
|
131,950
|
|
33,985
|
|
5,005
|
|
(74.2%)
|
Total revenues from
others
|
401,320
|
|
386,277
|
|
56,893
|
|
(3.7%)
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
21,137
|
|
71,112
|
|
10,474
|
|
236.4%
|
Recurring service
fees
|
386,381
|
|
363,274
|
|
53,504
|
|
(6.0%)
|
Performance-based
income
|
38,299
|
|
43,673
|
|
6,432
|
|
14.0%
|
Total revenues from
funds
Gopher manages
|
445,817
|
|
478,059
|
|
70,410
|
|
7.2%
|
Total
revenues
|
847,137
|
|
864,336
|
|
127,303
|
|
2.0%
|
Less: VAT related
surcharges
|
(5,150)
|
|
(5,282)
|
|
(778)
|
|
2.6%
|
Net
revenues
|
841,987
|
|
859,054
|
|
126,525
|
|
2.0%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(148,572)
|
|
(144,977)
|
|
(21,353)
|
|
(2.4%)
|
Others
|
(246,277)
|
|
(217,549)
|
|
(32,042)
|
|
(11.7%)
|
Total compensation
and
benefits
|
(394,849)
|
|
(362,526)
|
|
(53,395)
|
|
(8.2%)
|
Selling
expenses
|
(83,592)
|
|
(69,882)
|
|
(10,293)
|
|
(16.4%)
|
General and
administrative
expenses
|
(88,455)
|
|
(61,656)
|
|
(9,081)
|
|
(30.3%)
|
Provision for credit
losses
|
(15,995)
|
|
(5,166)
|
|
(761)
|
|
(67.7%)
|
Other operating
expenses
|
(52,838)
|
|
(23,129)
|
|
(3,407)
|
|
(56.2%)
|
Government
grants
|
28,049
|
|
10,552
|
|
1,554
|
|
(62.4%)
|
Total operating costs
and
expenses
|
(607,680)
|
|
(511,807)
|
|
(75,383)
|
|
(15.8%)
|
Income from
operations
|
234,307
|
|
347,247
|
|
51,142
|
|
48.2%
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
13,774
|
|
12,080
|
|
1,779
|
|
(12.3%)
|
Investment (loss)
income
|
(48,405)
|
|
751
|
|
111
|
|
N.A.
|
Other (expense)
income
|
(5,114)
|
|
4,041
|
|
595
|
|
N.A.
|
Total other (expense)
income
|
(39,745)
|
|
16,872
|
|
2,485
|
|
N.A.
|
Income before taxes
and
income from equity in
affiliates
|
194,562
|
|
364,119
|
|
53,627
|
|
87.1%
|
Income tax
expense
|
(44,737)
|
|
(84,944)
|
|
(12,511)
|
|
89.9%
|
Income from equity in
affiliates
|
53,974
|
|
4,652
|
|
685
|
|
(91.4%)
|
Net
income
|
203,799
|
|
283,827
|
|
41,801
|
|
39.3%
|
Less: net income
(loss)
attributable to non-controlling
interests
|
12,201
|
|
(1,789)
|
|
(263)
|
|
N.A.
|
Net income
attributable to
Noah shareholders
|
191,598
|
|
285,616
|
|
42,064
|
|
49.1%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
3.13
|
|
4.63
|
|
0.68
|
|
47.9%
|
Income per ADS,
diluted
|
3.10
|
|
4.60
|
|
0.68
|
|
48.4%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
27.8%
|
|
40.4%
|
|
40.4%
|
|
|
Net margin
|
24.2%
|
|
33.0%
|
|
33.0%
|
|
|
Weighted average
ADS
equivalent[1]:
|
|
|
|
|
|
|
|
Basic
|
61,308,638
|
|
61,723,592
|
|
61,723,592
|
|
|
Diluted
|
61,759,161
|
|
62,075,224
|
|
62,075,224
|
|
|
ADS equivalent
outstanding at
end of period
|
61,480,292
|
|
61,752,197
|
|
61,752,197
|
|
|
|
|
|
|
|
|
|
|
|
[1]
Assumes all outstanding ordinary shares are represented by ADSs.
Each ordinary share represents two
ADSs.
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2019
|
|
2020
|
|
2020
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
203,799
|
|
283,827
|
|
41,801
|
|
39.3%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
119,641
|
|
(108,684)
|
|
(16,007)
|
|
N.A.
|
Fair value fluctuation
of available for sale
Investment (after tax)
|
(3,191)
|
|
-
|
|
-
|
|
N.A.
|
Comprehensive
income
|
320,249
|
|
175,143
|
|
25,794
|
|
(45.3%)
|
Less: Comprehensive
income (loss)
attributable to non-controlling interests
|
12,052
|
|
(1,694)
|
|
(249)
|
|
N.A.
|
Comprehensive
income attributable to
Noah shareholders
|
308,197
|
|
176,837
|
|
26,043
|
|
(42.6%)
|
Noah Holdings
Limited
Supplemental
Information
|
(unaudited)
|
|
|
As of
|
|
|
|
September 30,
2019
|
|
September 30,
2020
|
|
Change
|
|
|
|
|
|
|
Number of registered
clients
|
288,245
|
|
350,409
|
|
21.6%
|
Number of
relationship managers
|
1,368
|
|
1,204
|
|
(12.0%)
|
Number of cities in
mainland China under
coverage
|
81
|
|
79
|
|
(2.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
September 30,
2019
|
|
September 30,
2020
|
|
Change
|
|
(in millions of RMB,
except number of active clients and
percentages)
|
Number of active
clients[4]
|
3,409
|
|
4,466
|
|
31.0%
|
Number of active
clients including mutual fund
clients
|
9,961
|
|
20,509
|
|
105.9%
|
Transaction
value:
|
|
|
|
|
|
Public securities
products
|
7,444
|
|
20,844
|
|
180.0%
|
Private equity
products
|
3,477
|
|
7,222
|
|
107.7%
|
Credit
products
|
1,517
|
|
112
|
|
(92.6%)
|
Other
products
|
513
|
|
602
|
|
17.3%
|
Total transaction
value
|
12,951
|
|
28,780
|
|
122.2%
|
|
[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 September 30, 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
|
124,645
|
|
355
|
|
-
|
|
125,000
|
Recurring service
fees
|
199,423
|
|
652
|
|
-
|
|
200,075
|
Performance-based
income
|
27,210
|
|
7
|
|
-
|
|
27,217
|
Other service
fees
|
23,992
|
|
886
|
|
9,107
|
|
33,985
|
Total revenues from
others
|
375,270
|
|
1,900
|
|
9,107
|
|
386,277
|
Revenues from funds
Gopher manages
|
|
|
|
|
|
|
|
One-time
commissions
|
66,201
|
|
4,911
|
|
-
|
|
71,112
|
Recurring service
fees
|
183,594
|
|
179,680
|
|
-
|
|
363,274
|
Performance-based
income
|
6,751
|
|
36,922
|
|
-
|
|
43,673
|
Total revenues from
funds Gopher
manages
|
256,546
|
|
221,513
|
|
-
|
|
478,059
|
Total
revenues
|
631,816
|
|
223,413
|
|
9,107
|
|
864,336
|
Less: VAT related
surcharges
|
(4,123)
|
|
(1,003)
|
|
(156)
|
|
(5,282)
|
Net
revenues
|
627,693
|
|
222,410
|
|
8,951
|
|
859,054
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(144,534)
|
|
-
|
|
(443)
|
|
(144,977)
|
Others
|
(118,854)
|
|
(83,269)
|
|
(15,426)
|
|
(217,549)
|
Total compensation and
benefits
|
(263,388)
|
|
(83,269)
|
|
(15,869)
|
|
(362,526)
|
Selling
expenses
|
(58,836)
|
|
(8,759)
|
|
(2,287)
|
|
(69,882)
|
General and
administrative
expenses
|
(39,357)
|
|
(17,425)
|
|
(4,874)
|
|
(61,656)
|
Provision for credit
losses
|
(6,898)
|
|
-
|
|
1,732
|
|
(5,166)
|
Other operating
expenses
|
(17,298)
|
|
(1,848)
|
|
(3,983)
|
|
(23,129)
|
Government
grants
|
6,471
|
|
2,597
|
|
1,484
|
|
10,552
|
Total operating costs
and expenses
|
(379,306)
|
|
(108,704)
|
|
(23,797)
|
|
(511,807)
|
Income (loss) from
operations
|
248,387
|
|
113,706
|
|
(14,846)
|
|
347,247
|
Noah Holdings
Limited
|
|
Segment Condensed
Income Statements
|
|
(unaudited)
|
|
|
|
|
Three months ended
September 30, 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
|
129,099
|
|
687
|
|
-
|
|
129,786
|
Recurring service
fees
|
133,825
|
|
1,376
|
|
-
|
|
135,201
|
Performance-based
income
|
4,346
|
|
37
|
|
-
|
|
4,383
|
Other service
fees
|
69,841
|
|
1,197
|
|
60,912
|
|
131,950
|
Total revenues from
others
|
337,111
|
|
3,297
|
|
60,912
|
|
401,320
|
Revenues from funds
Gopher
manages
|
|
|
|
|
|
|
|
One-time
commissions
|
21,053
|
|
84
|
|
-
|
|
21,137
|
Recurring service
fees
|
186,251
|
|
200,130
|
|
-
|
|
386,381
|
Performance-based
income
|
-
|
|
38,299
|
|
-
|
|
38,299
|
Total revenues from
funds Gopher
manages
|
207,304
|
|
238,513
|
|
-
|
|
445,817
|
Total
revenues
|
544,415
|
|
241,810
|
|
60,912
|
|
847,137
|
Less: VAT related
surcharges
|
(2,067)
|
|
(1,368)
|
|
(1,715)
|
|
(5,150)
|
Net
revenues
|
542,348
|
|
240,442
|
|
59,197
|
|
841,987
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(148,572)
|
|
-
|
|
-
|
|
(148,572)
|
Others
|
(155,102)
|
|
(66,914)
|
|
(24,261)
|
|
(246,277)
|
Total compensation and
benefits
|
(303,674)
|
|
(66,914)
|
|
(24,261)
|
|
(394,849)
|
Selling
expenses
|
(69,563)
|
|
(9,315)
|
|
(4,714)
|
|
(83,592)
|
General and
administrative
expenses
|
(61,363)
|
|
(17,916)
|
|
(9,176)
|
|
(88,455)
|
Provision for credit
losses
|
(16,007)
|
|
-
|
|
12
|
|
(15,995)
|
Other operating
expenses
|
(33,905)
|
|
(2,947)
|
|
(15,986)
|
|
(52,838)
|
Government
grants
|
25,740
|
|
2,302
|
|
7
|
|
28,049
|
Total operating costs
and expenses
|
(458,772)
|
|
(94,790)
|
|
(54,118)
|
|
(607,680)
|
Income from
operations
|
83,576
|
|
145,652
|
|
5,079
|
|
234,307
|
Noah Holdings
Limited
|
Supplement Revenue
Information by Geography
|
(unaudited)
|
Three months ended September 30, 2020
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending and
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
512,820
|
|
184,449
|
|
9,107
|
|
706,376
|
Hong Kong
|
76,584
|
|
27,276
|
|
-
|
|
103,860
|
Others
|
42,412
|
|
11,688
|
|
-
|
|
54,100
|
Total
revenues
|
631,816
|
|
223,413
|
|
9,107
|
|
864,336
|
Three months ended September 30, 2019
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Lending and
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
347,744
|
|
212,137
|
|
60,912
|
|
620,793
|
Hong Kong
|
139,406
|
|
26,829
|
|
-
|
|
166,235
|
Others
|
57,265
|
|
2,844
|
|
-
|
|
60,109
|
Total
revenues
|
544,415
|
|
241,810
|
|
60,912
|
|
847,137
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited)[5]
|
|
Three months
ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
|
2019
|
|
2020
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
|
191,598
|
|
285,616
|
|
49.1%
|
|
Adjustment for
share-based compensation
|
21,310
|
|
14,351
|
|
(32.7%)
|
|
Less: loss from fair
value changes of equity securities
(unrealized)
|
(6,047)
|
|
(968)
|
|
(84.0%)
|
|
Add: gains from sales
of equity securities
|
139,816
|
|
3,523
|
|
(97.5%)
|
|
Less: tax effect of
adjustments
|
5,059
|
|
3,384
|
|
(33.1%)
|
|
Adjusted net income
attributable to Noah shareholders
(non-GAAP)
|
353,712
|
|
301,074
|
|
(14.9%)
|
|
|
|
|
|
|
|
|
Net margin
attributable to Noah shareholders
|
22.8%
|
|
33.2%
|
|
|
|
Non-GAAP net margin
attributable to Noah shareholders
|
42.0%
|
|
35.0%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders per ADS,
diluted
|
3.10
|
|
4.60
|
|
48.4%
|
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted
|
5.73
|
|
4.85
|
|
(15.4%)
|
|
|
[5] Noah's
Non-GAAP financial measures are its corresponding GAAP financial
measures excluding the
effects of all forms of share-based compensation, fair value
changes of equity securities (unrealized),
adjustment for sale of equity securities and net of tax impact, if
any.
|
View original
content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2020-301181516.html
SOURCE Noah Holdings Limited