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SHANGHAI, Aug. 22, 2022 /PRNewswire/ — Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors, today announced its unaudited financial results for the second quarter of 2022.
SECOND QUARTER 2022 FINANCIAL HIGHLIGHTS
(RMB millions,
except percentages)
Q2 2021
Q2 2022
YoY Change
Wealth management
625.6
508.6
(18.7 %)
Asset management
256.3
210.3
(17.9 %)
Other businesses
17.5
19.2
9.5 %
Total net revenues
899.4
738.1
(17.9 %)
(RMB millions,
except percentages)
Q2 2021
Q2 2022
YoY Change
Wealth management
176.7
193.8
9.7 %
Asset management
172.8
142.6
(17.5 %)
Other businesses
(14.1)
(13.3)
(6.3 %)
Total income from operations
335.4
323.1
(3.6 %)
[1] Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, share-based settlement expenses and net of relevant tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.
SECOND QUARTER 2022 OPERATIONAL UPDATES
Wealth Management Business
We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. Noah primarily distributes private equity, private secondary, mutual funds and other products denominated in RMB and other currencies.
Three months ended June 30,
2021
2022
Product type
(RMB in billions, except percentages)
Mutual fund products
9.4
37.5 %
12.2
63.1 %
Private secondary products
7.7
30.8 %
2.4
12.4 %
Private equity products
6.5
25.9 %
3.9
20.3 %
Other products[3]
1.4
5.8 %
0.8
4.2 %
All products
25.0
100.0 %
19.3
100.0 %
[2] "Active clients" for a given period refers to registered high net worth investors who purchase investment products distributed or provided by Noah during that given period, excluding clients who transacted only on our online mutual fund platforms.
[3] "Other products" refers to other investment products, which includes insurance products, multi-strategies products and others.
Asset Management Business
Our asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading multi-asset manager in China with overseas offices in Hong Kong and the United States. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities to multi-strategy investments denominated in RMB and other currencies.
Investment type
As of
March 31,
2022
Growth
Distribution/
Redemption
As of
June 30,
2022
(RMB billions, except percentages)
Private equity
132.7
85.0 %
3.8
4.5
132.0
84.9 %
Public securities[4]
10.4
6.6 %
0.6
0.3
10.7
6.9 %
Real estate
6.2
4.1 %
0.1
0.1
6.2
4.1 %
Multi-strategies
5.4
3.4 %
–
0.3
5.1
3.2 %
Others
1.4
0.9 %
–
–
1.4
0.9 %
All Investments
156.1
100.0 %
4.5
5.2
155.4
100.0 %
[4] The asset distribution/redemption of public securities also includes market appreciation or depreciation.
Other Businesses
Our other businesses segment mainly provides more comprehensive services and investment products to our clients.
Ms. Jingbo Wang, co-founder and CEO of Noah, said, "I am glad that Noah Holdings’ secondary listing in Hong Kong has been successfully completed, partially mitigating the ADR delisting risk. The Board has approved a motion to pursue the voluntary conversion to dual-primary listing in Hong Kong, and we hope to deliver good news on the matter in the coming quarters. The Board also approved and adopted a new dividend policy in August 2022, to share a part of our non-GAAP net income attributable to Noah shareholders every year with the shareholders, which is a commitment we will try our best to fulfill. In the second quarter of 2022, our non-GAAP net income grew 13.3% quarter-on-quarter and 5.4% year-on-year, and the transaction value of private equity and mutual funds grew 23.2% and 71.4% quarter-on-quarter respectively, representing an expected recovery from the last quarter, while we continued to see volatilities in the market pressuring the distribution of private secondary products. I am happy to see the number of our core clients, diamond and black card, continued to grow at 6.1% and 20.5% year-on-year respectively amid complicated market environment. We expect to see continued challenges from China’s prolonged COVID-19 control measures and the slower growth of economy, and reiterate the importance of our recommended asset allocation strategy "Protection over Growth", and further suggest our clients to rebalance their global assets to achieve a domestic and international ‘dual circulation’ model."
SECOND QUARTER 2022 FINANCIAL RESULTS
Net Revenues
Net revenues for the second quarter of 2022 were RMB738.1 million (US$110.2 million), a 17.9% decrease from the corresponding period in 2021, primarily driven by decreased one-time commissions and performance based income, partially offset by increased other service fees.
– Wealth Management Business
– Asset Management Business
– Other Businesses
Operating Costs and Expenses
Operating costs and expenses for the second quarter of 2022 were RMB415.0 million (US$62.0 million), a 26.4% decrease from the corresponding period in 2021. Operating costs and expenses primarily consisted of compensation and benefits of RMB357.8 million (US$53.4 million), selling expenses of RMB70.3 million (US$10.5 million), general and administrative expenses of RMB35.6 million (US$5.3 million), reversal of credit losses of RMB5.8 million (US$0.9 million) and other operating expenses of RMB22.7 million (US$3.4 million).
Operating Margin
Operating margin for the second quarter of 2022 was 43.8%, increased from 37.3% for the corresponding period in 2021.
Investment Income
Investment income for the second quarter of 2022 was RMB5.2 million (US$0.8 million), compared with RMB3.5 million for the corresponding period in 2021.
Income Tax Expenses
Income tax expenses for the second quarter of 2022 were RMB78.2 million (US$11.7 million), a 13.7% increase year-on-year, primarily due to more taxable income compared with the second quarter of 2021.
Income from Equity in Affiliates
Income from equity in affiliates for the second quarter of 2022 was RMB69.2 million (US$10.3 million), a 29.5% increase from the corresponding period in 2021, primarily due to the increase in net income of the funds of funds that we manage and invest in as the general partner or fund manager.
Net Income
– Net Income
– Non-GAAP Net Income Attributable to Noah Shareholders
Balance Sheet and Cash Flow
As of June 30, 2022, the Company had RMB3,608.0 million (US$538.7 million) in cash and cash equivalents, compared with RMB3,899.9 million as of March 31, 2022 and RMB2,686.4 million as of June 30, 2021.
Net cash outflow from the Company’s operating activities during the second quarter of 2022 was RMB289.7 million (US$43.3 million), primarily due to payment of employee annual bonuses and annual tax filing.
Net cash outflow from the Company’s investing activities during the second quarter of 2022 was RMB17.1 million (US$2.5 million), primarily due to several investments made.
Net cash inflow from the Company’s financing activities was RMB0.5 million (US$0.1 million) in the second quarter of 2022, primarily related to the proceeds from issuance of ordinary shares upon exercise of stock options.
2022 FORECAST
The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2022 will be in the range of RMB1.45 billion to RMB1.55 billion. 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 second quarter 2022 unaudited financial results and recent business activities.
The conference call may be accessed with the following details:
Conference call details
Date/Time:
Monday, August 22, 2022 at 8:00 p.m., U.S. Eastern Time
Tuesday, August 23, 2022 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 2Q22 Earnings Conference Call
Participant Password:
6885355
A telephone replay will be available starting one hour after the end of the conference call until August 29, 2022 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 9147064.
A live and archived webcast of the conference call will be available at Noah’s investor relations website under the Announcements & Events section at https://ir.noahgroup.com/financial-information/quarterly-results.
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, share-based settlement expenses 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 and HKEX:6686) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. Noah is a Cayman Islands holding company and carries on business in Hong Kong as Noah Holdings Private Wealth and Asset Management Limited. In the first half of 2022, Noah distributed RMB34.3 billion (US$5.4 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB155.4 billion (US$23.2 billion) as of June 30, 2022.
Noah’s wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah’s network covers 79 cities in mainland China, as well as offices in Hong Kong, Taiwan, New York, Silicon Valley and Singapore. A total of 1,255 relationship managers provide customized financial solutions for clients through this network, and meet their international investment needs. The Company’s wealth management business had 418,675 registered clients as of June 30, 2022. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. The Company also provides other businesses.
For more information, please visit Noah at ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the second quarter of 2022 ended June 30, 2022 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ 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 RMB6.6981 to US$1.00, the effective noon buying rate for June 30, 2022 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 2022 and quotations from management in this announcement, as well as Noah’s strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah’s actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with investment products distributed to Noah’s investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F and other filings with the SEC and the prospectus registered in Hong Kong. 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
March 31,
June 30,
June 30,
2022
2022
2022
RMB’000
RMB’000
USD’000
Assets
Current assets:
Cash and cash equivalents
3,899,892
3,608,044
538,667
Restricted cash
512
2,689
401
Short-term investments
64,347
85,889
12,823
Accounts receivable, net
396,485
515,361
76,941
Loans receivable, net
578,355
607,586
90,710
Amounts due from related parties
532,533
562,755
84,017
Other current assets
170,813
210,623
31,445
Total current assets
5,642,937
5,592,947
835,004
Long-term investments, net
699,174
711,839
106,275
Investment in affiliates
1,430,346
1,510,503
225,512
Property and equipment, net
2,544,521
2,506,121
374,154
Operating lease right-of-use assets, net
212,993
197,934
29,551
Deferred tax assets
335,911
335,845
50,140
Other non-current assets
162,206
159,859
23,866
Total Assets
11,028,088
11,015,048
1,644,502
Liabilities and Equity
Current liabilities:
Accrued payroll and welfare expenses
880,353
618,933
92,404
Income tax payable
236,915
51,317
7,661
Deferred revenues
79,970
64,242
9,591
Other current liabilities
518,214
531,344
79,328
Contingent liabilities
431,080
455,479
68,001
Total current liabilities
2,146,532
1,721,315
256,985
Operating lease liabilities, non-current
120,790
95,995
14,332
Deferred tax liabilities
232,848
232,332
34,686
Other non-current liabilities
83,931
87,243
13,025
Total Liabilities
2,584,101
2,136,885
319,028
Equity
8,443,987
8,878,163
1,325,474
Total Liabilities and Equity
11,028,088
11,015,048
1,644,502
Noah Holdings Limited
Condensed Consolidated Income Statements
(In RMB’000, except for ADS data, per ADS data and percentages)
(unaudited)
Three months ended
June 30,
June 30,
June 30,
Change
2021
2022
2022
Revenues:
RMB’000
RMB’000
USD’000
Revenues from others:
One-time commissions
195,891
177,339
26,476
(9.5 %)
Recurring service fees
218,988
184,300
27,515
(15.8 %)
Performance-based income
46,468
9,481
1,415
(79.6 %)
Other service fees
32,283
52,521
7,841
62.7 %
Total revenues from others
493,630
423,641
63,247
(14.2 %)
Revenues from funds Gopher manages:
One-time commissions
52,377
30,893
4,612
(41.0 %)
Recurring service fees
282,333
277,359
41,409
(1.8 %)
Performance-based income
76,101
16,533
2,468
(78.3 %)
Total revenues from funds Gopher
manages
410,811
324,785
48,489
(20.9 %)
Total revenues
904,441
748,426
111,736
(17.2 %)
Less: VAT related surcharges
(5,052)
(10,284)
(1,535)
103.6 %
Net revenues
899,389
738,142
110,201
(17.9 %)
Operating costs and expenses:
Compensation and benefits
Relationship managers
(153,275)
(131,519)
(19,635)
(14.2 %)
Others
(242,507)
(226,286)
(33,784)
(6.7 %)
Total compensation and benefits
(395,782)
(357,805)
(53,419)
(9.6 %)
Selling expenses
(99,463)
(70,307)
(10,497)
(29.3 %)
General and administrative expenses
(77,892)
(35,649)
(5,322)
(54.2 %)
(Provision)/reversal for credit losses
(2,112)
5,788
864
N.A.
Other operating expenses
(28,082)
(22,677)
(3,386)
(19.2 %)
Government subsidies
39,300
65,653
9,802
67.1 %
Total operating costs and expenses
(564,031)
(414,997)
(61,958)
(26.4 %)
Income from operations
335,358
323,145
48,243
(3.6 %)
Other income:
Interest income
18,212
17,681
2,640
(2.9 %)
Investment income
3,487
5,174
772
48.4 %
Settlement expenses
(19,190)
–
–
N.A.
Other (expenses) income
(14,617)
11,849
1,769
N.A.
Total other (expenses) income
(12,108)
34,704
5,181
N.A.
Income before taxes and income from
equity in affiliates
323,250
357,849
53,424
10.7 %
Income tax expense
(68,720)
(78,164)
(11,670)
13.7 %
Income from equity in affiliates
53,420
69,203
10,332
29.5 %
Net income
307,950
348,888
52,086
13.3 %
Less: net income (loss) attributable to
non-controlling interests
2,424
(117)
(17)
N.A.
Net income attributable to Noah
shareholders
305,526
349,005
52,103
14.2 %
Income per ADS, basic
4.56
5.19
0.77
13.8 %
Income per ADS, diluted
4.53
5.18
0.77
14.3 %
Margin analysis:
Operating margin
37.3 %
43.8 %
43.8 %
Net margin
34.2 %
47.3 %
47.3 %
Weighted average ADS equivalent[1]:
Basic
66,993,114
67,245,724
67,245,724
Diluted
67,449,200
67,310,698
67,310,698
ADS equivalent outstanding at end of
period
60,080,070
60,222,116
60,222,116
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents
two ADSs.
Noah Holdings Limited
Condensed Consolidated Income Statements
(In RMB’000, except for USD data, per ADS data and percentages)
(unaudited)
Six months ended
June 30,
June 30,
June 30,
Change
2021
2022
2022
Revenues:
RMB’000
RMB’000
USD’000
Revenues from others:
One-time commissions
474,595
258,493
38,592
(45.5 %)
Recurring service fees
439,501
377,679
56,386
(14.1 %)
Performance-based income
322,992
152,392
22,752
(52.8 %)
Other service fees
55,996
91,281
13,628
63.0 %
Total revenues from others
1,293,084
879,845
131,358
(32.0 %)
Revenues from funds Gopher
manages:
One-time commissions
98,523
52,048
7,771
(47.2 %)
Recurring service fees
539,030
570,411
85,160
5.8 %
Performance-based income
204,657
48,600
7,256
(76.3 %)
Total revenues from funds
Gopher manages
842,210
671,059
100,187
(20.3 %)
Total revenues
2,135,294
1,550,904
231,545
(27.4 %)
Less: VAT related surcharges
(11,169)
(17,070)
(2,548)
52.8 %
Net revenues
2,124,125
1,533,834
228,997
(27.8 %)
Operating costs and expenses:
Compensation and benefits
Relationship managers
(360,147)
(241,514)
(36,057)
(32.9 %)
Others
(617,760)
(474,196)
(70,796)
(23.2 %)
Total compensation and
benefits
(977,907)
(715,710)
(106,853)
(26.8 %)
Selling expenses
(182,918)
(130,213)
(19,440)
(28.8 %)
General and administrative
expenses
(158,177)
(93,856)
(14,012)
(40.7 %)
(Provision)/reversal for credit
losses
(5,519)
14,986
2,237
N.A.
Other operating expenses
(55,170)
(52,312)
(7,810)
(5.2 %)
Government subsidies
93,314
80,211
11,975
(14.0 %)
Total operating costs and
expenses
(1,286,377)
(896,894)
(133,903)
(30.3 %)
Income from operations
837,748
636,940
95,094
(24.0 %)
Other income:
Interest income
41,139
30,318
4,526
(26.3 %)
Investment income
37,848
30,547
4,561
(19.3 %)
Settlement expenses
(19,190)
–
–
N.A.
Other income (expense)
(15,103)
11,571
1,728
N.A.
Total other income
44,694
72,436
10,815
62.1 %
Income before taxes and
income from equity in affiliates
882,442
709,376
105,909
(19.6 %)
Income tax expense
(198,566)
(155,500)
(23,216)
(21.7 %)
Income from equity in affiliates
76,933
99,223
14,814
29.0 %
Net income
760,809
653,099
97,507
(14.2 %)
Less: net income (loss)
attributable to non-controlling
interests
1,190
(1,148)
(171)
N.A.
Net income attributable to
Noah shareholders
759,619
654,247
97,678
(13.9 %)
Income per ADS, basic
11.33
9.73
1.45
(14.1 %)
Income per ADS, diluted
11.25
9.70
1.45
(13.8 %)
Margin analysis:
Operating margin
39.4 %
41.5 %
41.5 %
Net margin
35.8 %
42.6 %
42.6 %
Weighted average ADS
equivalent[1]:
Basic
67,042,174
67,240,800
67,240,800
Diluted
67,497,514
67,428,368
67,428,368
ADS equivalent outstanding at
end of period
60,080,070
60,222,116
60,222,116
[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
June 30,
June 30,
June 30,
Change
2021
2022
2022
RMB’000
RMB’000
USD’000
Net income
307,950
348,888
52,086
13.3 %
Other comprehensive income, net of tax:
Foreign currency translation adjustments
(22,809)
75,557
11,280
N.A.
Fair value fluctuation of available for sale
Investment (after tax)
134
–
–
N.A.
Comprehensive income
285,275
424,445
63,366
48.8 %
Less: Comprehensive income/(loss)
attributable to non-controlling interests
2,411
(183)
(27)
N.A.
Comprehensive income attributable to
Noah shareholders
282,864
424,628
63,393
50.1 %
Noah Holdings Limited
Condensed Comprehensive Income Statements
(unaudited)
Six months ended
June 30,
June 30,
June 30,
Change
2021
2022
2022
RMB’000
RMB’000
USD’000
Net income
760,809
653,099
97,507
(14.2 %)
Other comprehensive income, net of tax:
Foreign currency translation adjustments
(14,400)
140,097
20,916
N.A.
Fair value fluctuation of available for sale
Investment (after tax)
134
–
–
N.A.
Comprehensive income
746,543
793,196
118,423
6.2 %
Less: Comprehensive income attributable
to non-controlling interests
1,210
(1,065)
(159)
N.A.
Comprehensive income attributable to
Noah shareholders
745,333
794,261
118,582
6.6 %
Noah Holdings Limited
Supplemental Information
(unaudited)
As of
June 30,
2021
June 30,
2022
Change
Number of registered clients
397,235
418,675
5.4 %
Number of relationship managers
1,268
1,255
(1.0 %)
Number of cities in mainland China under coverage
81
79
(2.5 %)
Three months ended
June 30,
2021
June 30,
2022
Change
(in millions of RMB, except number of active clients and
percentages)
Number of active clients
4,676
2,272
(51.4 %)
Number of active clients including mutual fund clients
20,290
12,866
(36.6 %)
Transaction value:
Private equity products
6,472
3,918
(39.5 %)
Private secondary products
7,708
2,394
(68.9 %)
Mutual fund products
9,375
12,190
30.0 %
Other products
1,446
814
(43.7 %)
Total transaction value
25,001
19,316
(22.7 %)
Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
Three months ended June 30, 2022
Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total
RMB’000
RMB’000
RMB’000
RMB’000
Revenues:
Revenues from others
One-time commissions
177,339
–
–
177,339
Recurring service fees
184,300
–
–
184,300
Performance-based income
9,481
–
–
9,481
Other service fees
27,375
–
25,146
52,521
Total revenues from others
398,495
–
25,146
423,641
Revenues from funds Gopher
manages
One-time commissions
1,518
29,375
–
30,893
Recurring service fees
107,767
169,592
–
277,359
Performance-based income
3,837
12,696
–
16,533
Total revenues from funds Gopher
manages
113,122
211,663
–
324,785
Total revenues
511,617
211,663
25,146
748,426
Less: VAT related surcharges
(2,976)
(1,313)
(5,995)
(10,284)
Net revenues
508,641
210,350
19,151
738,142
Operating costs and expenses:
Compensation and benefits
Relationship managers
(120,258)
(11,261)
–
(131,519)
Others
(153,046)
(63,241)
(9,999)
(226,286)
Total compensation and benefits
(273,304)
(74,502)
(9,999)
(357,805)
Selling expenses
(60,479)
(8,244)
(1,584)
(70,307)
General and administrative
expenses
(18,821)
(12,287)
(4,541)
(35,649)
Provision for credit losses
141
(441)
6,088
5,788
Other operating expenses
915
(113)
(23,479)
(22,677)
Government subsidies
36,750
27,822
1,081
65,653
Total operating costs and expenses
(314,798)
(67,765)
(32,434)
(414,997)
Income (loss) from operations
193,843
142,585
(13,283)
323,145
Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
Three months ended June 30, 2021
Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total
RMB’000
RMB’000
RMB’000
RMB’000
Revenues:
Revenues from others
One-time commissions
195,891
–
–
195,891
Recurring service fees
218,988
–
–
218,988
Performance-based income
46,468
–
–
46,468
Other service fees
14,665
–
17,618
32,283
Total revenues from others
476,012
–
17,618
493,630
Revenues from funds Gopher manages
One-time commissions
20,705
31,672
–
52,377
Recurring service fees
123,031
159,302
–
282,333
Performance-based income
9,507
66,594
–
76,101
Total revenues from funds Gopher
manages
153,243
257,568
–
410,811
Total revenues
629,255
257,568
17,618
904,441
Less: VAT related surcharges
(3,665)
(1,299)
(88)
(5,052)
Net revenues
625,590
256,269
17,530
899,389
Operating costs and expenses:
Compensation and benefits
Relationship managers
(149,874)
(3,401)
–
(153,275)
Others
(154,463)
(74,017)
(14,027)
(242,507)
Total compensation and benefits
(304,337)
(77,418)
(14,027)
(395,782)
Selling expenses
(82,726)
(10,496)
(6,241)
(99,463)
General and administrative
expenses
(54,091)
(16,676)
(7,125)
(77,892)
Provision for credit losses
–
–
(2,112)
(2,112)
Other operating expenses
(12,758)
(1,424)
(13,900)
(28,082)
Government subsidies
4,997
22,579
11,724
39,300
Total operating costs and expenses
(448,915)
(83,435)
(31,681)
(564,031)
Income (loss) from operations
176,675
172,834
(14,151)
335,358
Noah Holdings Limited
Supplement Revenue Information by Geography
(unaudited)
Three months ended June 30, 2022
Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total
RMB’000
RMB’000
RMB’000
RMB’000
Revenues:
Mainland China
378,862
184,939
25,146
588,947
Hong Kong
111,125
9,117
–
120,242
Others
21,630
17,607
–
39,237
Total revenues
511,617
211,663
25,146
748,426
Three months ended June 30, 2021
Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total
RMB’000
RMB’000
RMB’000
RMB’000
Revenues:
Mainland China
450,226
209,183
17,618
677,027
Hong Kong
143,309
38,942
–
182,251
Others
35,720
9,443
–
45,163
Total revenues
629,255
257,568
17,618
904,441
Noah Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In RMB, except for per ADS data and percentages)
(unaudited)
Three months ended
June 30,
June 30,
Change
2021
2022
RMB’000
RMB’000
Net income attributable to Noah shareholders
305,526
349,005
14.2 %
Adjustment for share-based compensation
16,034
7,990
(50.2 %)
Add: settlement expense
19,190
–
N.A.
Less: tax effect of adjustments
3,720
1,922
(48.3 %)
Adjusted net income attributable to Noah shareholders
(non-GAAP)
337,030
355,073
5.4 %
Net margin attributable to Noah shareholders
34.0 %
47.3 %
Non-GAAP net margin attributable to Noah shareholders
37.5 %
48.1 %
Net income attributable to Noah shareholders per ADS,
diluted
4.53
5.18
14.3 %
Non-GAAP net income attributable to Noah shareholders
per ADS, diluted
5.00
5.28
5.6 %
Noah Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In RMB, except for per ADS data and percentages)
(unaudited)
Six months ended
June 30,
June 30,
Change
2021
2022
RMB’000
RMB’000
Net income attributable to Noah shareholders
759,619
654,247
(13.9 %)
Adjustment for share-based compensation
26,178
18,836
(28.0 %)
Add: settlement expense
19,190
–
N.A.
Less: tax effect of adjustments
6,074
4,529
(25.4 %)
Adjusted net income attributable to Noah shareholders
(non-GAAP)
798,913
668,554
(16.3 %)
Net margin attributable to Noah shareholders
35.8 %
42.7 %
Non-GAAP net margin attributable to Noah shareholders
37.6 %
43.6 %
Net income attributable to Noah shareholders per ADS,
diluted
11.25
9.70
(13.8 %)
Non-GAAP net income attributable to Noah shareholders
per ADS, diluted
11.84
9.92
(16.2 %)
SOURCE Noah Holdings Limited
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