Noah Holdings Limited Announces Unaudited Financial Results for the Second Quarter of 2018
SECOND QUARTER 2018 FINANCIAL HIGHLIGHTS
- Net revenues for the second quarter of 2018 were
RMB797.6 million (US$120.5 million ), a 12.8% increase from the corresponding period in 2017.
(RMB millions, except percentages) |
Q2 2017 |
Q2 2018 |
YoY Change |
||||
Wealth management |
550.6 |
556.5 |
1.1% |
||||
Asset management |
130.3 |
195.5 |
50.0% |
||||
Other financial services |
26.4 |
45.6 |
72.7% |
||||
Total net revenues |
707.3 |
797.6 |
12.8% |
- Income from operations for the second quarter of 2018 was
RMB221.2 million (US$33.4 million ), a 1.4% decrease from the corresponding period in 2017.
(RMB millions, except percentages) |
Q2 2017 |
Q2 2018 |
YoY Change |
||||
Wealth management |
185.2 |
135.7 |
(26.7%) |
||||
Asset management |
69.8 |
100.7 |
44.3% |
||||
Other financial services |
(30.8) |
(15.1) |
(51.0%) |
||||
Total income from operations |
224.3 |
221.2 |
(1.4%) |
- Net income attributable to Noah shareholders for the second quarter of 2018 was
RMB179.5 million (US$27.1 million ), a 13.3% decrease from the corresponding period in 2017. - Non-GAAP[1]net income attributable to Noah shareholders for the second quarter of 2018 was
RMB252.1 million (US$38.1 million ), an 11.3% increase from the corresponding period in 2017.
SECOND QUARTER 2018 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business offers financial products and provides comprehensive financial services to high net worth clients. Noah primarily distributes onshore and offshore fixed income, private equity, secondary market equity and insurance products.
- Total number of registered clients as of
June 30, 2018 was 220,601, a 33.9% increase fromJune 30, 2017 . - Total number of active clients[2]during the second quarter of 2018 was 4,461, a 0.5% decrease from
June 30, 2017 . - Aggregate value of financial products distributed during the second quarter of 2018 was
RMB29.1 billion (US$4.4 billion ), an 11.9% decrease from the second quarter of 2017.
Product type |
Three months ended June 30, |
||||||
2017 |
2018 |
||||||
(RMB in billions, except percentages) |
|||||||
Fixed income |
23.5 |
71.3% |
19.3 |
66.3% |
|||
Private equity |
8.3 |
25.0% |
6.3 |
21.6% |
|||
Secondary market equity |
1.1 |
3.4% |
2.8 |
9.7% |
|||
Other products |
0.1 |
0.3% |
0.7 |
2.4% |
|||
All products |
33.0 |
100.0% |
29.1 |
100.0% |
- Average transaction value per active client[3] for the second quarter of 2018 was
RMB6.5 million (US$1.0 million ), an 11.4% decrease from the corresponding period in 2017. - Coverage network included 287 branches and sub-branches covering 81 cities as of
June 30, 2018 , up from 205 branches and sub-branches covering 76 cities as ofJune 30, 2017 . - Number of relationship managers was 1,495 as of
June 30, 2018 , an 18.7% increase fromJune 30, 2017 .
Asset Management Business
The Company's asset management business,
- Total assets under management as of
June 30, 2018 wereRMB161.5 billion (US$24.4 billion ), a 2.9% increase fromMarch 31, 2018 and a 16.5% increase fromJune 30, 2017 .
Investment type |
As of |
Asset |
Asset |
As of |
|||||||
(RMB billions, except percentages) |
|||||||||||
Private equity |
91.8 |
58.5% |
4.3 |
2.2 |
93.9 |
58.1% |
|||||
Credit |
42.8 |
27.3% |
8.1 |
9.6 |
41.3 |
25.6% |
|||||
Real estate |
11.9 |
7.6% |
6.5 |
0.8 |
17.6 |
10.9% |
|||||
Secondary market |
6.8 |
4.3% |
0.2 |
2.7 |
4.3 |
2.7% |
|||||
Other investments |
3.6 |
2.3% |
0.8 |
- |
4.4 |
2.7% |
|||||
All Investments |
156.9 |
100.0% |
19.9 |
15.3 |
161.5 |
100.0% |
Other Financial Services Business
The Company's other financial services business includes its lending services, online wealth management and payment technology services.
Mr.
SECOND QUARTER 2018 FINANCIAL RESULTS
Net Revenues
Net revenues for the second quarter of 2018 were
- Wealth Management Business
- Net revenues from one-time commissions for the second quarter of 2018 were
- Net revenues from recurring service fees for the second quarter of 2018 were
- Net revenues from performance-based income for the second quarter of 2018 were
- Net revenues from other service fees for the second quarter of 2018 were
- Asset Management Business
- Net revenues from recurring service fees for the second quarter of 2018 were
- Net revenues from performance-based income for the second quarter of 2018 were
- Other Financial Services Business
- Net revenues for the second quarter of 2018 were
Operating Costs and Expenses
Operating costs and expenses for the second quarter of 2018 were
- Operating costs and expensesfor the wealth management business for the second quarter of 2018 were
RMB420.8 million (US$63.6 million ), a 15.2% increase from the corresponding period in 2017, primarily due to an increase in compensation and benefits and marketing expenses. - Operating costs and expensesfor the asset management business for the second quarter of 2018 were
RMB94.8 million (US$14.3 million ), a 56.6% increase from the corresponding period in 2017, primarily due to an increase in compensation and benefits. - Operating costs and expensesfor the other financial services business for the second quarter of 2018 were
RMB60.8 million (US$9.2 million ), a 6.4% increase from the corresponding period in 2017.
Operating Margin
Operating margin for the second quarter of 2018 was 27.7%, a decrease from 31.7% for the corresponding period in 2017.
- Operating margin for the wealth management business for the second quarter of 2018 was 24.4%, compared with 33.6% for the corresponding period in 2017.
- Operating marginfor the asset management business for the second quarter of 2018 was 51.5%, compared with 53.5% for the corresponding period in 2017.
- Operating lossfor the other financial services business for the second quarter of 2018 was
RMB15.1 million (US$2.3 million ), improving from a loss ofRMB30.8 million for the corresponding period in 2017.
Investment Income
Investment income for the second quarter of 2018 was
Income Tax Expenses
Income tax expenses for the second quarter of 2018 were
Net Income
- Net Income
- Net income for the second quarter of 2018 was
- Net margin for the second quarter of 2018 was 23.4%, down from 29.1% for the corresponding period in 2017.
- Net income attributable to Noah shareholders for the second quarter of 2018 was
- Net margin attributable to Noah shareholders for the second quarter of 2018 was 22.5%, down from 29.3% for the corresponding period in 2017.
- Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2018 was
- Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders for the second quarter of 2018 was
- Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2018 was 31.6%, down from 32.0% for the corresponding period in 2017.
- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2018 was
Balance Sheet and Cash Flow
As of
Net cash outflow from the Company's operating activities during the second quarter of 2018 was
Net cash inflow from the Company's investing activities during the second quarter of 2018 was
Net cash inflow from the Company's financing activities was
On
OTHER COMPANY DEVELOPMENTS
The Company also announced the promotion of Ms.
Ms. Gao has more than 13 years of experience in financial and operating management. She joined Noah in
Ms.
2018 FORECAST
The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2018 will be in the range of
CONFERENCE CALL
Senior management will host a combined English and Chinese language conference call to discuss the Company's second quarter 2018 unaudited financial results and recent business activities.
The conference call may be accessed with the following details:
Conference call details |
|
Date/Time:
|
Tuesday, Aug 28, 2018 at 8:00 p.m., U.S. Eastern Time Wednesday, Aug 29, 2018 at 8:00 a.m., Hong Kong Time |
Dial in details: |
|
- United States Toll Free |
+1-866-311-7654 |
- Mainland China Toll Free |
4001-201203 |
- Hong Kong Toll Free |
800-905-945 |
- International |
+1-412-317-5227 |
Conference Title: |
Noah Holdings Limited Second Quarter 2018 Earnings Call |
Participant Password: |
Noah Holdings |
A telephone replay will be available starting one hour after the end of the conference call until
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 RECENTLY ADOPTED ACCOUNTING STANDARD AND NON-GAAP MEASURES
On
The accounting standard also includes a transition requirement on presentation that requires the amounts reported in accumulated other comprehensive income for equity securities that exist as of the date of adoption previously classified as available-for-sale to be reclassified to retained earnings.
As a result, upon adoption of this new standard, Noah recorded a cumulative effect adjustment from other comprehensive income to retained earnings of
The future impact to Noah's consolidated income statement from period to period will vary depending upon the level of volatility in the performance of the securities held in Noah's equity portfolio and the overall market. ASU 2016-01 does not affect the treatment of equity investments accounted for under the equity method or those that result in consolidation of the investee.
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 and fair value changes of equity investments (unrealized) and adjusting for sale of equity securities. 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's wealth management business primarily distributes onshore and offshore fixed income, private equity, secondary market equity and insurance products. Noah delivers customized financial solutions to clients through a network of 1,495 relationship managers across 287 branches and sub-branches in 81 cities in mainland
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 2018 ended
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 2018 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
Contacts:
Noah Holdings Limited
Tel: +86-21-8035-9221
ir@noahgroup.com
[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation and fair value changes of equity securities (unrealized) and adjusting for sale of equity securities. 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 clients who purchase financial products provided or distributed by Noah during that given period, excluding clients in Noah's other financial services segment. |
[3] "Average transaction value per active client" refers to the average value of financial products that were purchased by active clients during the period specified. |
[4] The asset expiration/redemption of secondary market equity investments also includes market appreciation or depreciation. |
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings Limited |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(unaudited) |
|||||||
As of |
|||||||
March 31, |
June 30, |
June 30, |
|||||
2018 |
2018 |
2018 |
|||||
RMB'000 |
RMB'000 |
USD'000 |
|||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
2,151,447 |
2,094,773 |
316,570 |
||||
Short-term investments (including short-term |
246,740 |
224,043 |
33,858 |
||||
Accounts receivable and contract assets, net of |
228,770 |
243,098 |
36,738 |
||||
Loans receivable |
827,737 |
601,952 |
90,969 |
||||
Amounts due from related parties |
653,788 |
563,286 |
85,126 |
||||
Loans receivable from factoring business |
71,403 |
68,358 |
10,331 |
||||
Other current assets |
247,256 |
483,894 |
73,128 |
||||
Total current assets |
4,427,141 |
4,279,404 |
646,720 |
||||
Long-term investments (including long-term investments |
890,735 |
806,094 |
121,820 |
||||
Investment in affiliates |
1,049,353 |
1,176,750 |
177,835 |
||||
Property and equipment, net |
299,415 |
295,786 |
44,700 |
||||
Non-current deferred tax assets |
72,357 |
97,296 |
14,704 |
||||
Other non-current assets |
114,226 |
77,196 |
11,666 |
||||
Total Assets |
6,853,227 |
6,732,526 |
1,017,445 |
||||
Liabilities and Equity |
|||||||
Current liabilities: |
|||||||
Accrued payroll and welfare expenses |
563,715 |
479,654 |
72,487 |
||||
Income tax payable |
82,394 |
18,484 |
2,793 |
||||
Amounts due to related parties |
280 |
336 |
51 |
||||
Deferred revenues |
167,768 |
146,462 |
22,134 |
||||
Loans payable from factoring business |
302 |
35,003 |
5,290 |
||||
Other current liabilities |
581,379 |
383,256 |
57,919 |
||||
Total current liabilities |
1,395,838 |
1,063,195 |
160,674 |
||||
Non-current deferred tax liabilities |
51,810 |
50,172 |
7,582 |
||||
Convertible notes |
470,445 |
330,855 |
50,000 |
||||
Other non-current liabilities |
112,839 |
112,485 |
16,999 |
||||
Total Liabilities |
2,030,932 |
1,556,707 |
235,255 |
||||
Equity |
4,822,295 |
5,175,819 |
782,190 |
||||
Total Liabilities and Equity |
6,853,227 |
6,732,526 |
1,017,445 |
Noah Holdings Limited |
|||||||
Condensed Consolidated Income Statements |
|||||||
(In RMB'000, except for USD data, per ADS data and percentages) |
|||||||
(unaudited) |
|||||||
Three months ended |
|||||||
June 30, |
June 30, |
June 30, |
Change |
||||
2017 |
2018 |
2018 |
|||||
Revenues: |
RMB'000 |
RMB'000 |
USD'000 |
||||
Revenues from others[1]: |
|||||||
One-time commissions |
123,321 |
161,791 |
24,450 |
31.2% |
|||
Recurring service fees |
144,245 |
167,196 |
25,267 |
15.9% |
|||
Performance-based income |
16,179 |
10,082 |
1,524 |
(37.7%) |
|||
Other service fees |
48,608 |
76,883 |
11,619 |
58.2% |
|||
Total revenues from others |
332,353 |
415,952 |
62,860 |
25.2% |
|||
Revenues from funds Gopher manages[1]: |
|||||||
One-time commissions |
177,333 |
72,805 |
11,003 |
(58.9%) |
|||
Recurring service fees |
195,891 |
284,389 |
42,978 |
45.2% |
|||
Performance-based income |
7,570 |
29,213 |
4,415 |
285.9% |
|||
Total revenues from funds |
380,794 |
386,407 |
58,396 |
1.5% |
|||
Total revenues |
713,147 |
802,359 |
121,256 |
12.5% |
|||
Less: business taxes and |
(5,836) |
(4,757) |
(718) |
(18.5%) |
|||
Net revenues |
707,311 |
797,602 |
120,538 |
12.8% |
|||
Operating costs and |
|||||||
Compensation and benefits |
|||||||
Relationship manager |
(140,078) |
(168,429) |
(25,454) |
20.2% |
|||
Performance fee |
- |
(5,200) |
(786) |
N.A. |
|||
Other compensations |
(190,895) |
(216,635) |
(32,739) |
13.5% |
|||
Total compensation and |
(330,973) |
(390,264) |
(58,979) |
17.9% |
|||
Selling expenses |
(71,376) |
(120,472) |
(18,206) |
68.8% |
|||
General and administrative |
(49,231) |
(68,510) |
(10,353) |
39.2% |
|||
Other operating expenses |
(41,268) |
(28,589) |
(4,320) |
(30.7%) |
|||
Government grants |
9,791 |
31,432 |
4,750 |
221.0% |
|||
Total operating costs and |
(483,057) |
(576,403) |
(87,108) |
19.3% |
|||
Income from operations |
224,254 |
221,199 |
33,430 |
(1.4%) |
|||
Other income: |
|||||||
Interest income |
10,440 |
18,633 |
2,816 |
78.5% |
|||
Interest expenses |
(4,894) |
(3,313) |
(501) |
(32.3%) |
|||
Investment income |
10,943 |
16,754 |
2,532 |
53.1% |
|||
Other (expense) income |
2,055 |
(21,357) |
(3,228) |
(1139.3%) |
|||
Total other income |
18,544 |
10,717 |
1,619 |
(42.2%) |
|||
Income before taxes and |
242,798 |
231,916 |
35,049 |
(4.5%) |
|||
Income tax expense |
(60,244) |
(57,651) |
(8,712) |
(4.3%) |
|||
Income from equity in affiliates |
23,308 |
12,087 |
1,827 |
(48.1%) |
|||
Net income |
205,862 |
186,352 |
28,164 |
(9.5%) |
|||
Less: net loss attributable |
(4,070) |
6,867 |
1,038 |
(268.7%) |
|||
Less: Loss attributable to |
2,891 |
- |
- |
(100.0%) |
|||
Net income attributable to |
207,041 |
179,485 |
27,126 |
(13.3%) |
|||
Income per ADS, basic |
3.67 |
3.13 |
0.47 |
(14.7%) |
|||
Income per ADS, diluted |
3.52 |
3.00 |
0.45 |
(14.8%) |
|||
Margin analysis: |
|||||||
Operating margin |
31.7% |
27.7% |
27.7% |
||||
Net margin |
29.1% |
23.4% |
23.4% |
||||
Weighted average ADS equivalent[2]: |
|||||||
Basic |
56,461,612 |
57,295,516 |
57,295,516 |
||||
Diluted |
60,205,429 |
60,747,298 |
60,747,298 |
||||
ADS equivalent outstanding |
56,547,380 |
58,498,187 |
58,498,187 |
||||
[1] Starting from the first quarter of 2018, we report revenue streams in two categories - revenues from |
|||||||
[2] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two |
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 |
||||
2017 |
2018 |
2018 |
|||||
Revenues: |
RMB'000 |
RMB'000 |
USD'000 |
||||
Revenues from others[1]: |
|||||||
One-time commissions |
323,108 |
381,332 |
57,628 |
18.0% |
|||
Recurring service fees |
289,274 |
311,128 |
47,019 |
7.6% |
|||
Performance-based |
28,729 |
30,739 |
4,645 |
7.0% |
|||
Other service fees |
81,849 |
136,872 |
20,685 |
67.2% |
|||
Total revenues from others |
722,960 |
860,071 |
129,977 |
19.0% |
|||
Revenues from funds |
|||||||
One-time commissions |
321,889 |
171,189 |
25,871 |
(46.8%) |
|||
Recurring service fees |
377,781 |
538,456 |
81,373 |
42.5% |
|||
Performance-based |
7,649 |
68,261 |
10,316 |
792.4% |
|||
Total revenues from funds |
707,319 |
777,906 |
117,560 |
10.0% |
|||
Total revenues |
1,430,279 |
1,637,977 |
247,537 |
14.5% |
|||
Less: business taxes and |
(9,798) |
(9,456) |
(1,429) |
(3.5%) |
|||
Net revenues |
1,420,481 |
1,628,521 |
246,108 |
14.6% |
|||
Operating costs and expenses: |
|||||||
Compensation and |
|||||||
Relationship manager |
(290,391) |
(327,130) |
(49,437) |
12.7% |
|||
Performance fee |
- |
(11,400) |
(1,723) |
N.A. |
|||
Other compensations |
(381,164) |
(412,447) |
(62,330) |
8.2% |
|||
Total compensation and |
(671,555) |
(750,977) |
(113,490) |
11.8% |
|||
Selling expenses |
(131,979) |
(226,731) |
(34,264) |
71.8% |
|||
General and administrative |
(108,869) |
(124,439) |
(18,806) |
14.3% |
|||
Other operating expenses |
(70,714) |
(66,552) |
(10,058) |
(5.9%) |
|||
Government grants |
43,723 |
35,920 |
5,428 |
(17.8%) |
|||
Total operating costs and |
(939,394) |
(1,132,779) |
(171,190) |
20.6% |
|||
Income from operations |
481,087 |
495,742 |
74,918 |
3.0% |
|||
Other income: |
|||||||
Interest income |
19,148 |
41,500 |
6,272 |
116.7% |
|||
Interest expenses |
(9,807) |
(10,182) |
(1,539) |
3.8% |
|||
Investment income |
21,089 |
58,886 |
8,899 |
179.2% |
|||
Other (expense) income |
3,192 |
(20,194) |
(3,052) |
(732.6%) |
|||
Total other income |
33,622 |
70,010 |
10,580 |
108.2% |
|||
Income before taxes and |
514,709 |
565,752 |
85,498 |
9.9% |
|||
Income tax expense |
(122,159) |
(131,313) |
(19,844) |
7.5% |
|||
Income from equity in |
29,034 |
12,739 |
1,925 |
(56.1%) |
|||
Net income |
421,584 |
447,178 |
67,579 |
6.1% |
|||
Less: net loss attributable |
(9,270) |
(772) |
(117) |
(91.7%) |
|||
Less: Loss attributable to |
6,816 |
- |
- |
(100.0%) |
|||
Net income attributable to |
424,038 |
447,950 |
67,696 |
5.6% |
|||
Income per ADS, basic |
7.51 |
7.82 |
1.18 |
4.1% |
|||
Income per ADS, diluted |
7.04 |
7.37 |
1.11 |
4.7% |
|||
Margin analysis: |
|||||||
Operating margin |
33.9% |
30.4% |
30.4% |
||||
Net margin |
29.7% |
27.5% |
27.5% |
||||
Weighted average ADS equivalent[2]: |
|||||||
Basic |
56,461,612 |
57,295,516 |
57,295,516 |
||||
Diluted |
60,205,429 |
60,747,298 |
60,747,298 |
||||
ADS equivalent outstanding |
56,547,380 |
58,498,187 |
58,498,187 |
||||
[1] Starting from the first quarter of 2018, we report revenue streams in two categories - revenues from |
|||||||
[2] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two |
Noah Holdings Limited |
|||||||||
Condensed Comprehensive Income Statements |
|||||||||
(unaudited) |
|||||||||
Three months ended |
|||||||||
June 30, |
June 30, |
June 30, |
Change |
||||||
2017 |
2018 |
2018 |
|||||||
RMB'000 |
RMB'000 |
USD'000 |
|||||||
Net income |
205,862 |
186,352 |
28,164 |
(9.5%) |
|||||
Other comprehensive income, net of tax: |
|||||||||
Foreign currency translation adjustments |
(6,321) |
52,539 |
7,940 |
(931.2%) |
|||||
Fair value fluctuation of available for sale |
2,606 |
(2,469) |
(373) |
(194.7%) |
|||||
Comprehensive income |
202,147 |
236,422 |
35,731 |
17.0% |
|||||
Less: Comprehensive income (loss) |
(4,029) |
6,835 |
1,033 |
(269.6%) |
|||||
Less: Loss attributable to redeemable |
2,891 |
- |
- |
(100.0%) |
|||||
Comprehensive income attributable to |
203,285 |
229,587 |
34,698 |
12.9% |
Noah Holdings Limited |
|||||||||
Condensed Comprehensive Income Statements |
|||||||||
(unaudited) |
|||||||||
Six months ended |
|||||||||
June 30, |
June 30, |
June 30, |
Change |
||||||
2017 |
2018 |
2018 |
|||||||
RMB'000 |
RMB'000 |
USD'000 |
|||||||
Net income |
421,584 |
447,178 |
67,579 |
6.1% |
|||||
Other comprehensive income, net of tax: |
|||||||||
Foreign currency translation adjustments |
(10,466) |
17,676 |
2,671 |
(268.9%) |
|||||
Fair value fluctuation of available for sale |
4,121 |
(1,093) |
(165) |
(126.5%) |
|||||
Comprehensive income |
415,239 |
463,761 |
70,085 |
11.7% |
|||||
Less: Comprehensive loss attributable to |
(9,345) |
(744) |
(112) |
(92.0%) |
|||||
Less: Loss attributable to redeemable |
6,816 |
- |
- |
(100.0%) |
|||||
Comprehensive income attributable to |
417,768 |
464,505 |
70,197 |
11.2% |
|||||
Noah Holdings Limited |
|||||
Supplemental Information |
|||||
(unaudited) |
|||||
As of |
|||||
June 30, |
June 30, |
Change |
|||
Number of registered clients |
164,728 |
220,601 |
33.9% |
||
Number of relationship managers |
1,259 |
1,495 |
18.7% |
||
Number of cities under coverage |
76 |
81 |
6.6% |
||
Three months ended |
|||||
June 30, |
June 30, |
Change |
|||
(in millions of RMB, except number of active clients and percentages) |
|||||
Number of active clients |
4,484 |
4,461 |
(0.5%) |
||
Transaction value: |
|||||
Fixed income products |
23,505 |
19,252 |
(18.1%) |
||
Private equity products |
8,252 |
6,287 |
(23.8%) |
||
Secondary market equity products |
1,111 |
2,835 |
155.2% |
||
Other products |
94 |
678 |
621.3% |
||
Total transaction value |
32,962 |
29,052 |
(11.9%) |
||
Average transaction value per active client |
7.35 |
6.51 |
(11.4%) |
Noah Holdings Limited |
|||||||
Segment Condensed Income Statements |
|||||||
(unaudited) |
|||||||
Three months ended June 30, 2018 |
|||||||
Wealth |
Asset |
Other |
Total |
||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||
Revenues: |
|||||||
Revenues from others |
|||||||
One-time commissions |
161,421 |
370 |
- |
161,791 |
|||
Recurring service fees |
158,469 |
8,727 |
- |
167,196 |
|||
Performance-based income |
10,082 |
- |
- |
10,082 |
|||
Other service fees |
27,613 |
2,735 |
46,535 |
76,883 |
|||
Total revenues from others |
357,585 |
11,832 |
46,535 |
415,952 |
|||
Revenues from funds Gopher manages |
|||||||
One-time commissions |
72,805 |
- |
- |
72,805 |
|||
Recurring service fees |
127,264 |
157,125 |
- |
284,389 |
|||
Performance-based income |
1,739 |
27,474 |
- |
29,213 |
|||
Total revenues from funds Gopher manages |
201,808 |
184,599 |
- |
386,407 |
|||
Total revenues |
559,393 |
196,431 |
46,535 |
802,359 |
|||
Less: business taxes and related surcharges |
(2,932) |
(924) |
(901) |
(4,757) |
|||
Net revenues |
556,461 |
195,507 |
45,634 |
797,602 |
|||
Operating costs and expenses: |
|||||||
Compensation and benefits |
|||||||
Relationship manager compensation |
(167,533) |
- |
(896) |
(168,429) |
|||
Performance fee compensation |
- |
(5,200) |
- |
(5,200) |
|||
Other compensations |
(121,290) |
(63,723) |
(31,622) |
(216,635) |
|||
Total compensation and benefits |
(288,823) |
(68,923) |
(32,518) |
(390,264) |
|||
Selling expenses |
(110,686) |
(5,361) |
(4,425) |
(120,472) |
|||
General and administrative expenses |
(41,550) |
(19,235) |
(7,725) |
(68,510) |
|||
Other operating expenses |
(7,745) |
(4,725) |
(16,119) |
(28,589) |
|||
Government grants |
27,994 |
3,418 |
20 |
31,432 |
|||
Total operating costs and expenses |
(420,810) |
(94,826) |
(60,767) |
(576,403) |
|||
Income (loss) from operations |
135,651 |
100,681 |
(15,133) |
221,199 |
Noah Holdings Limited |
|||||||
Segment Condensed Income Statements |
|||||||
(unaudited) |
|||||||
Three months ended June 30, 2017 |
|||||||
Wealth Business |
Asset Business |
Other |
Total |
||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||
Revenues: |
|||||||
Revenues from others |
|||||||
One-time commissions |
122,955 |
366 |
- |
123,321 |
|||
Recurring service fees |
136,182 |
8,063 |
- |
144,245 |
|||
Performance-based income |
15,015 |
1,164 |
- |
16,179 |
|||
Other service fees |
21,842 |
94 |
26,672 |
48,608 |
|||
Total revenues from others |
295,994 |
9,687 |
26,672 |
332,353 |
|||
Revenues from funds Gopher manages |
|||||||
One-time commissions |
177,333 |
- |
- |
177,333 |
|||
Recurring service fees |
75,045 |
120,846 |
- |
195,891 |
|||
Performance-based income |
7,194 |
376 |
- |
7,570 |
|||
Total revenues from funds Gopher |
259,572 |
121,222 |
- |
380,794 |
|||
Total revenues |
555,566 |
130,909 |
26,672 |
713,147 |
|||
Less: business taxes and related surcharges |
(4,963) |
(580) |
(293) |
(5,836) |
|||
Net revenues |
550,603 |
130,329 |
26,379 |
707,311 |
|||
Operating costs and expenses: |
|||||||
Compensation and benefits |
|||||||
Relationship manager |
(138,330) |
(1) |
(1,747) |
(140,078) |
|||
Other compensations |
(112,454) |
(44,687) |
(33,754) |
(190,895) |
|||
Total compensation and benefits |
(250,784) |
(44,688) |
(35,501) |
(330,973) |
|||
Selling expenses |
(66,919) |
(1,432) |
(3,025) |
(71,376) |
|||
General and administrative |
(29,911) |
(11,168) |
(8,152) |
(49,231) |
|||
Other operating expenses |
(27,494) |
(3,314) |
(10,460) |
(41,268) |
|||
Government grants |
9,731 |
60 |
- |
9,791 |
|||
Total operating costs and expenses |
(365,377) |
(60,542) |
(57,138) |
(483,057) |
|||
Income (loss) from operations |
185,226 |
69,787 |
(30,759) |
224,254 |
Noah Holdings Limited |
|||||
Reconciliation of GAAP to Non-GAAP Results |
|||||
(In RMB, except for per ADS data and percentages) |
|||||
(unaudited) [5] |
|||||
Three months ended |
|||||
June 30, |
June 30, |
Change |
|||
2017 |
2018 |
||||
RMB'000 |
RMB'000 |
||||
Net income attributable to Noah shareholders |
207,041 |
179,485 |
(13.3%) |
||
Adjustment for share-based compensation related to: |
|||||
Share options |
12,622 |
9,724 |
(23.0%) |
||
Restricted shares |
6,849 |
10,517 |
53.6% |
||
Less: Gains (loss) from fair value changes of equity |
- |
(49,063) |
N.A |
||
Add: Gains (loss) from sales of equity securities |
- |
3,338 |
N.A |
||
Non-GAAP net income attributable to Noah |
226,512 |
252,127 |
11.3% |
||
Net margin attributable to Noah shareholders |
29.3% |
22.5% |
|||
Non-GAAP net margin attributable to Noah |
32.0% |
31.6% |
|||
Net income attributable to Noah shareholders per ADS, |
3.52 |
3.00 |
(14.8%) |
||
Non-GAAP net income attributable to Noah shareholders |
3.84 |
4.20 |
9.4% |
||
* The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments. |
|||||
[5] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the |
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 |
|||
2017 |
2018 |
||||
RMB'000 |
RMB'000 |
||||
Net income attributable to Noah shareholders |
424,038 |
447,950 |
5.6% |
||
Adjustment for share-based compensation related to: |
|||||
Share options |
25,153 |
21,934 |
(12.8%) |
||
Restricted shares |
14,560 |
21,008 |
44.3% |
||
Less: Gains (loss) from fair value changes of equity |
- |
(14,275) |
N.A |
||
Add: Gains (loss) from sales of equity securities |
- |
3,338 |
N.A |
||
Non-GAAP net income attributable to Noah |
463,751 |
508,505 |
9.7% |
||
Net margin attributable to Noah shareholders |
29.9% |
27.5% |
|||
Non-GAAP net margin attributable to Noah |
32.6% |
31.2% |
|||
Net income attributable to Noah shareholders per ADS, |
7.04 |
7.37 |
4.7% |
||
Non-GAAP net income attributable to Noah shareholders |
7.70 |
8.37 |
8.7% |
||
* The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments. |
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