Noah Holdings Limited Announces Unaudited Financial Results for the First Quarter of 2019

May 16, 2019

SHANGHAI, May 16, 2019 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth and asset management service provider in China with a focus on high net worth individuals, today announced its unaudited financial results for the first quarter of 2019.

FIRST QUARTER 2019 FINANCIAL HIGHLIGHTS

  • Net revenues for the first quarter of 2019 were RMB889.9 million (US$132.6 million), a 7.1% increase from the corresponding period in 2018.

(RMB millions,

except percentages)

Q1 2018



Q1 2019



YoY Change

Wealth management

594.2



623.4



4.9%

Asset management

194.3



167.9



(13.6%)

Lending and other businesses

42.4



98.6



132.6%

Total net revenues

830.9



889.9



7.1%

 

  • Income from operations for the first quarter of 2019 was RMB302.5 million (US$45.1 million), a 10.2% increase from the corresponding period in 2018.

(RMB millions,

except percentages)

Q1 2018



Q1 2019



YoY Change

Wealth management

184.0



189.5



3.0%

Asset management

109.4



67.8



(38.1%)

Lending and other businesses

(18.9)



45.2



N.A.

Total income from operations

274.5



302.5



10.2%

 

  • Net income attributable to Noah shareholders for the first quarter of 2019 was RMB284.6 million (US$42.4 million), a 6.0% increase from the corresponding period in 2018.
  • Non-GAAP[1]net income attributable to Noah shareholders for the first quarter of 2019 was RMB304.6 million (US$45.4 million), a 19.9% increase from the corresponding period in 2018.

[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.

FIRST QUARTER 2019 OPERATIONAL UPDATES

Wealth Management Business

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

  • Total number of registered clients as of March 31, 2019 was 274,893, a 39.6% increase from March 31, 2018.
  • Total number of active clients[2]during the first quarter of 2019 was 8,117, a 49.0% increase from the first quarter of 2018.
  • Aggregate value of financial products distributed during the first quarter of 2019 was RMB28.0 billion (US$4.2 billion), a 0.8% increase from the first quarter of 2018.

Product type

Three months ended March 31,


2018


2019


(RMB in billions, except percentages)

Credit[3] products

13.2


47.6%


22.1


78.8%

Private equity products

6.3


22.6%


1.3


4.8%

Public securities[4] products

7.9


28.2%


3.2


11.4%

Other products

0.4


1.6%


1.4


5.0%

All products

27.8


100.0%


28.0


100.0%

 

  • Average transaction value per active client[5] for the first quarter of 2019 was RMB3.5 million (US$0.5 million), a 32.3% decrease from the corresponding period in 2018.
  • Coverage network in mainland China included 313 service centers covering 83 cities as of March 31, 2019, up from 263 service centers covering 81 cities as of March 31, 2018 and unchanged from December 31, 2018.
  • Number of relationship managers was 1,496 as of March 31, 2019, a 7.9% increase from March 31, 2018, but a 5.5% decrease from December 31, 2018.

 

[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.

[3] "Credit products" was previously referred to as "fixed income" products.

[4] "Public securities products" refer to the financial products that invest in publicly traded securities, including stocks and bonds.  This was previously referred to as "secondary market equity" financial products. Starting in January 2019, we included the transaction value of mutual fund products in the total transaction value.

[5] "Average transaction value per active client" refers to the average value of financial products that were purchased by active clients during the period specified.

Asset Management Business

The Company's asset management business, Gopher Asset Management, is a leading alternative multi-asset manager in China also with international offices in Hong Kong and the United States. Gopher Asset Management develops and manages private equity, real estate, public securities, credit and multi-strategy investments denominated in Renminbi and other currencies. 

  • Total assets under management as of March 31, 2019 were RMB171.1 billion (US$25.5 billion), a 1.1% increase from December 31, 2018 and a 9.1% increase from March 31, 2018.

Investment type

As of 
December 31, 
2018


Asset 
Growth


Asset 
Expiration/ 
Redemption


As of
March 31, 
2019


(RMB billions, except percentages)

Private equity

100.2


59.2%


2.1


1.2


101.1


59.1%

Credit

39.4


23.3%


6.4


7.0


38.8


22.7%

Real estate

16.7


9.9%


0.8


0.1


17.4


10.2%

Public securities[4]

6.2


3.6%


1.0


0.3[6]


6.9


4.0%

Multi-strategies[7]

6.7


4.0%


0.3


0.1


6.9


4.0%

All Investments

169.2


100.0%


10.6


8.7


171.1


100.0%


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

[7] "Multi-strategies" investments were previously referred to as "other investments".

Lending and Other Businesses

The Company's lending services business utilizes an advanced risk-management system to assess and facilitate short-term loans to high quality borrowers, often secured with collateral. The total amount of loans originated during the first quarter of 2019 was RMB2.5 billion, as compared with RMB2.1 billion for the corresponding period of 2018, representing an increase of 17.2%. Other businesses include an online financial advisory platform and payment technology services.

Mr. Yi Zhao, Group President of Noah, said, "We have been focusing on the enhancement of operating efficiency, and successfully delivered another quarter of solid financial results, especially reflected in the improvement of operating margin. We have noticed that after the recent market challenges, high net worth clients have become increasingly rational and sophisticated, and their investment appetite has been gradually recovering, which provides us with enhanced business growth opportunities."

FIRST QUARTER 2019 FINANCIAL RESULTS

Net Revenues

Net revenues for the first quarter of 2019 were RMB889.9 million (US$132.6 million), a 7.1% increase from the corresponding period in 2018, primarily driven by increased recurring service fees and other service fees, partially offset by a decrease of performance-based income.

- Wealth Management Business

  • Net revenues from one-time commissions for the first quarter of 2019 were RMB322.7 million (US$48.1 million), a 2.1% increase from the corresponding period in 2018, generally in line with the total amount of transaction value.
  • Net revenues from recurring service fees for the first quarter of 2019 were RMB256.2 million (US$38.2 million), a 5.4% increase from the corresponding period in 2018. The increase was primarily due to the cumulative effect of financial products with recurring service fees previously distributed.
  • Net revenues from performance-based income for the first quarter of 2019 were RMB1.2 million (US$0.2 million), compared with RMB20.0 million in the corresponding period of 2018. The decrease was primarily due to less performance-based income realized from public securities.
  • Net revenues from other service fees for the first quarter of 2019 were RMB43.3 million (US$6.4 million), compared with RMB14.9 million in the corresponding period in 2018, primarily due to the growth of the various value-added services Noah offers to its high net worth clients.

- Asset Management Business

  • Net revenues from recurring service fees for the first quarter of 2019 were RMB162.7 million (US$24.2 million), a 6.4% increase from the corresponding period in 2018. The increase was primarily due to the increase in assets under management.
  • Net revenues from performance-based income for the first quarter of 2019 were RMB3.6 million (US$0.5 million), compared with RMB39.4 million in the corresponding period of 2018. The decrease was primarily due to less performance-based income realized from public securities.

- Lending and Other Businesses

  • Net revenues for the first quarter of 2019 were RMB98.6 million (US$14.7 million), a 132.6% increase from the corresponding period in 2018. The increase was primarily due to the growth of loan origination and service fee income generated from loans originated in the previous periods.

Operating Costs and Expenses

Operating costs and expenses for the first quarter of 2019 were RMB587.4 million (US$87.5 million), a 5.6% increase from the corresponding period in 2018. Operating costs and expenses primarily consisted of compensation and benefits of RMB404.3 million (US$60.2 million), selling expenses of RMB90.5 million (US$13.5 million), general and administrative expenses of RMB58.6 million (US$8.7 million) and other operating expenses of RMB50.8 million (US$7.6 million).

  • Operating costs and expensesfor the wealth management business for the first quarter of 2019 were RMB433.9 million (US$64.7 million), a 5.8% increase from the corresponding period in 2018, primarily due to an increase in compensation and benefits partially offset by a decrease in marketing expenses.
  • Operating costs and expensesfor the asset management business for the first quarter of 2019 were RMB100.1 million (US$14.9 million), a 17.9% increase from the corresponding period in 2018, primarily due to an increase in compensation and benefits.
  • Operating costs and expensesfor lending and other businesses for the first quarter of 2019 were RMB53.4 million (US$8.0 million), a 12.9% decrease from the corresponding period in 2018, primarily due to a decrease in compensation and benefits as employees under non-lending businesses were restructured during the quarter.

Operating Margin

Operating margin for the first quarter of 2019 was 34.0%, an increase from 33.0% for the corresponding period in 2018.

  • Operating margin for the wealth management business for the first quarter of 2019 was 30.8%, compared with 31.0% for the corresponding period in 2018.
  • Operating marginfor the asset management business for the first quarter of 2019 was 39.1%, compared with 56.3% for the corresponding period in 2018.
  • Income from operationfor the lending and other businesses for the first quarter of 2019 was RMB45.2 million (US$6.7 million), compared with an operating loss of RMB18.9 million for the corresponding period in 2018.

Investment Income

Investment income for the first quarter of 2019 was RMB25.7 million (US$3.8 million), compared with RMB42.1 million for the corresponding period in 2018. The decrease was primarily related to the fluctuation of fair value of equity securities, which contributed RMB8.7 million (US$1.3 million) of investment income in the first quarter of 2019, as compared to RMB34.8 million investment income in the corresponding period of 2018.

Income Tax Expenses

Income tax expenses for the first quarter of 2019 were RMB79.5 million (US$11.8 million), a 7.9% increase from the corresponding period in 2018. The increase was primarily due to higher taxable income. 

Net Income

- Net Income

  • Net income for the first quarter of 2019 was RMB287.6 million (US$42.9 million), a 10.3% increase from the corresponding period in 2018.
  • Net margin for the first quarter of 2019 was 32.3%, up from 31.4% for the corresponding period in 2018.
  • Net income attributable to Noah shareholders for the first quarter of 2019 was RMB284.6 million (US$42.4 million), a 6.0% increase from the corresponding period in 2018.
  • Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2019 was RMB4.70(US$0.70) and RMB4.57(US$0.68), respectively, compared with RMB4.70 and RMB4.44 respectively, for the corresponding period in 2018.

- Non-GAAP Net Income Attributable to Noah Shareholders

  • Non-GAAP net income attributable to Noah shareholders for the first quarter of 2019 was RMB304.6 million (US$45.4 million), a 19.9% increase from the corresponding period in 2018.
  • Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2019 was 34.2%, up from 30.6% for the corresponding period in 2018.
  • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2019 was RMB4.90(US$0.73), up from RMB4.21 for the corresponding period in 2018.

Balance Sheet and Cash Flow

As of March 31, 2019, the Company had RMB2,869.6 million (US$427.6 million) in cash and cash equivalents, compared with RMB2,704.1 million as of December 31, 2018 and RMB2,151.4 million as of March 31, 2018.

Net cash inflow from the Company's operating activities during the first quarter of 2019 was RMB152.7 million (US$22.8 million), driven by profit earned from normal business operations and partially offset by working capital change.

Net cash outflow from the Company's investing activities during the first quarter of 2019 was RMB67.5 million (US$10.1 million), primarily due to the increase in property and equipment and various investments and partially offset by proceeds from sales of loans.

Net cash inflow from the Company's financing activities was RMB88.6 million (US$13.2 million) in the first quarter of 2019, primarily due to the capital contribution by non-controlling shareholders of a consolidated subsidiary.

2019 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2019 will be in the range of RMB1.13 billion to RMB1.18 billion, an increase of 11.9% to 16.8% compared with the full year 2018. This estimate reflects management's current business outlook and is subject to change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's first quarter 2019 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details

Date/Time:

 

Thursday, May 16, 2019 at 8:00 p.m., U.S. Eastern Time

Friday, May 17, 2019 at 8:00 a.m., Hong Kong Time

Dial in details:


- United States Toll Free

+1-888-317-6003

- Mainland China Toll Free

4001-206-115

- Hong Kong Toll Free

800-963-976

- International

+1-412-317-6061

Conference Title:

Noah Holdings First Quarter 2019 Earnings Call

Participant Entry No.:

1098879

Participants will need to dial in 10-15 minutes early and use this Entry Number in order to join the conference.

A telephone replay will be available starting one hour after the end of the conference call until May 23, 2019 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10131248.

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

DISCUSSION OF RECENTLY ADOPTED ACCOUNTING STANDARD AND NON-GAAP MEASURES       

In the first quarter of 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. The Company also elected the package of practical expedients, which among other things, does not require reassessment of lease classification.

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation, fair value changes of equity investments (unrealized), adjustment for sale of equity securities and net of tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measures used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies.

When evaluating the Company's operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company's management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.  

ABOUT NOAH HOLDINGS LIMITED

Noah Holdings Limited (NYSE: NOAH) is a leading wealth and asset management service provider in China with a focus on high net worth individuals. In the first quarter of 2019, Noah distributed RMB28.0 billion (US$4.2 billion) of financial products. Through Gopher Asset Management, Noah had assets under management of RMB171.1 billion (US$25.5 billion) as of March 31, 2019.

Noah's wealth management business primarily distributes credit, private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,496 relationship managers across 313 service centers in 83 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 274,893 registered clients as of March 31, 2019. 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 services including an online financial advisory platform and payment technology services.

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

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the first quarter of 2019 ended March 31, 2019 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 RMB6.7112 to US$1.00, the effective noon buying rate for March 29, 2019 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 2019 and quotations from management in this announcement, as well as Noah's strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited 

Condensed Consolidated Balance Sheets

(unaudited)


As of


December 31,


March 31, 


March 31, 


2018


2019


2019


RMB'000


RMB'000


USD'000

Assets







Current assets:








Cash and cash equivalents

2,704,091


2,869,638


427,589



Restricted cash

2,500


2,500


373



Short-term investments (including short-term investments
     measured at fair value of RMB438,077 thousands and
     RMB469,205 thousands, as of December 31, 2018 and
     March 31, 2019, respectively)

450,477


501,646


 

 

 

74,748



Accounts receivable, net of allowance for doubtful accounts
     of nil as of December 31, 2018 and March 31, 2019

282,431


330,770


 

49,286



Loans receivable, net

620,219


507,650


75,642



Amounts due from related parties

572,201


664,305


98,985



Loans receivable from factoring business

18,893


14,010


2,088



Other current assets 

453,269


476,160


70,950



Total current assets 

5,104,081


5,366,679


799,661


Long-term investments (including long-term investments
     measured at fair value of RMB609,151 thousands and
     RMB687,159 thousands, as of December 31, 2018 and
     March 31, 2019, respectively)

1,025,065


1,056,387


 

 

 

157,407


Investment in affiliates

1,375,110


1,401,542


208,836


Property and equipment, net

346,653


332,570


49,554


Operating lease right-of-use assets, net

-


290,062


43,220


Non-current deferred tax assets

113,384


113,383


16,895


Other non-current assets 

49,971


67,577


10,068

Total Assets

8,014,264


8,628,200


1,285,641







Liabilities and Equity







Current liabilities:








Accrued payroll and welfare expenses 

671,200


727,796


108,445



Income tax payable

54,296


106,337


15,845



Deferred revenues

142,925


154,723


23,054



Other current liabilities

722,652


540,184


80,490



Total current liabilities

1,591,073


1,529,040


227,834


Operating lease liabilities, non-current

-


311,650


46,437


Non-current deferred tax liabilities

67,092


66,992


9,982


Convertible notes

145,004


-


-


Other non-current liabilities

35,718


28,638


4,267


Total Liabilities 

1,838,887


1,936,320


288,520


Equity

6,175,377


6,691,880


997,121

Total Liabilities and Equity

8,014,264


8,628,200


1,285,641

          

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)


Three months ended 


March 31,


March 31,


March 31,


Change


2018


2019


2019



Revenues:

RMB'000


RMB'000


USD'000



Revenues from others:








One-time commissions

219,541


216,643


32,281


(1.3%)

Recurring service fees

143,932


132,476


19,740


(8.0%)

Performance-based income

20,657


1,094


163


(94.7%)

Other service fees

59,989


145,377


21,662


142.3%

Total revenues from others

444,119


495,590


73,846


11.6%

Revenues from funds Gopher
manages:








One-time commissions

98,384


107,908


16,079


9.7%

Recurring service fees

254,067


288,156


42,937


13.4%

Performance-based income

39,048


3,758


560


(90.4%)

Total revenues from funds Gopher
manages

391,499


399,822


59,576


2.1%

Total revenues

835,618


895,412


133,422


7.2%

Less: VAT related surcharges 

(4,699)


(5,528)


(824)


17.6%

Net revenues

830,919


889,884


132,598


7.1%

Operating costs and expenses:








Compensation and benefits








Relationship manager
compensation

(158,701)


 

(167,268)


 

(24,924)


 

5.4%

Performance fee
compensation

(6,200)


 

(1,276)


 

(190)


 

(79.4%)

Other compensations

(195,812)


(235,761)


(35,129)


20.4%

Total compensation and benefits

(360,713)


(404,305)


(60,243)


12.1%

Selling expenses

(106,259)


(90,456)


(13,478)


(14.9%)

General and administrative
expenses 

(55,929)


 

(58,550)


 

(8,724)


 

4.7%

Other operating expenses 

(37,963)


(50,828)


(7,574)


33.9%

Government subsidies 

4,488


16,780


2,500


273.9%

Total operating costs and
expenses 

(556,376)


(587,359)


(87,519)


5.6%

Income from operations 

274,543


302,525


45,079


10.2%

Other income:








Interest income 

22,867


23,123


3,445


1.1%

Interest expenses

(6,869)


(430)


(64)


(93.7%)

Investment income 

42,132


25,663


3,824


(39.1%)

Other income (expense)

1,163


(1,928)


(287)


(265.8%)

Total other income

59,293


46,428


6,918


(21.7%)

Income before taxes and income
from equity in affiliates

333,836


348,953


51,997


4.5%

Income tax expense

(73,662)


(79,492)


(11,845)


7.9%

Income from equity in affiliates

652


18,123


2,700


2,679.6%

Net income

260,826


287,584


42,852


10.3%

Less: net (loss) income
attributable to non-controlling
interests

(7,639)


3,007


448


N.A.

Net income attributable to Noah
shareholders 

268,465


284,577


42,404


6.0%









Income per ADS, basic

4.70


4.70


0.70


-

Income per ADS, diluted

4.44


4.57


0.68


2.9%

 

Margin analysis:








Operating margin

33.0%


34.0%


34.0%



Net margin

31.4%


32.3%


32.3%



 

Weighted average ADS
equivalent[1]:








Basic

57,166,048


60,570,704


60,570,704



Diluted

61,384,898


62,355,964


62,355,964



ADS equivalent outstanding at end
of period

57,225,760


 

61,180,845


 

61,180,845












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


   

 

Noah Holdings Limited 

Condensed Comprehensive Income Statements 

(unaudited)


Three months ended 




March 31,


March 31,


March 31,


Change


2018


2019


2019




RMB'000


RMB'000


USD'000



Net income

260,826


287,584


42,851


10.3%

Other comprehensive income, net of tax:








Foreign currency translation adjustments

(34,863)


(30,858)


(4,598)


(11.5%)

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

1,376


 

74


11


(94.6%)

Comprehensive income

227,339


256,800


38,264


13.0%

Less: Comprehensive (loss) income
attributable to non-controlling interests

(7,579)


3,217


479


N.A.

Comprehensive income attributable to
Noah
shareholders

234,918


253,583


37,785


7.9%

 

 

Noah Holdings Limited

Supplemental Information 

(unaudited) 


As of 




March 31, 
2018


March 31, 
2019


Change







Number of registered clients 

196,927


274,893


39.6%

Number of relationship managers 

1,386


1,496


7.9%

Number of cities under coverage in mainland
China

81


83


2.5%




Three months ended 




March 31,
2018


March 31, 
2019


Change


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

Number of active clients 

5,449


8,117


49.0%

Transaction value: 






Credit products 

13,247


22,101


66.8%

Private equity products 

6,279


1,333


(78.8%)

Public securities products

7,854


3,205


(59.2%)

Other products

433


1,401


223.5%

Total transaction value

27,813


28,040


0.8%

Average transaction value per active client 

5.10


3.45


(32.3%)

 

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 



Three months ended March 31, 2019


Wealth 
Management
Business


Asset 
Management
Business


Lending 
and Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others:








One-time commissions

216,180


463


-


216,643

Recurring service fees

131,618


858


-


132,476

Performance-based income

1,094


-


-


1,094

Other service fees

43,445


1,166


100,766


145,377

Total revenues from others

392,337


2,487


100,766


495,590

Revenues from funds Gopher manages:








One-time commissions

107,908


-


-


107,908

Recurring service fees

125,751


162,405


-


288,156

Performance-based income

97


3,661


-


3,758

Total revenues from funds Gopher
manages

233,756


166,066


-


399,822

Total revenues

626,093


168,553


100,766


895,412

Less: VAT related surcharges 

(2,730)


(628)


(2,170)


(5,528)

Net revenues

623,363


167,925


98,596


889,884

Operating costs and expenses:








Compensation and benefits








Relationship manager compensation

(167,125)


-


(143)


(167,268)

Performance fee compensation

-


(1,276)


-


(1,276)

Other compensations

(146,458)


(63,936)


(25,367)


(235,761)

Total compensation and benefits

(313,583)


(65,212)


(25,510)


(404,305)

Selling expenses

(83,114)


(3,903)


(3,439)


(90,456)

General and administrative expenses 

(37,336)


(15,261)


(5,953)


(58,550)

Other operating expenses

(15,086)


(17,266)


(18,476)


(50,828)

Government subsidies 

15,218


1,562


-


16,780

Total operating costs and expenses 

(433,901)


(100,080)


(53,378)


(587,359)

Income from operations

189,462


67,845


45,218


302,525










 

 

Noah Holdings Limited

Segment Condensed Income Statements

 (unaudited)



Three months ended March 31, 2018




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

219,283


258


-


219,541

Recurring service fees

141,329


2,603


-


143,932

Performance-based income

20,126


531


-


20,657

Other service fees

14,993


1,791


43,205


59,989

Total revenues from others

395,731


5,183


43,205


444,119

Revenues from funds Gopher
manages:








One-time commissions

98,318


66


-


98,384

Recurring service fees

103,069


150,998


-


254,067

Performance-based income

-


39,048


-


39,048

Total revenues from funds Gopher
manages 

201,387


190,112


-


391,499

Total revenues

597,118


195,295


43,205


835,618

Less: VAT related surcharges

(2,936)


(944)


(819)


(4,699)

Net revenues

594,182


194,351


42,386


830,919

Operating costs and expenses:








Compensation and benefits








Relationship manager
compensation

(157,926)


-


(775)


(158,701)

Performance fee compensation

-


(6,200)


-


(6,200)

Other compensations

(118,761)


(45,143)


(31,908)


(195,812)

Total compensation and benefits

(276,687)


(51,343)


(32,683)


(360,713)

Selling expenses

(91,314)


(5,814)


(9,131)


(106,259)

General and administrative
expenses

(36,716)


(13,754)


(5,459)


(55,929)

Other operating expenses

(8,295)


(14,605)


(15,063)


(37,963)

Government subsidies

2,808


640


1,040


4,488

Total operating costs and expenses

(410,204)


(84,876)


(61,296)


(556,376)

Income (loss) from operations

183,978


109,475


(18,910)


274,543

 

 

Noah Holdings Limited

Supplement Revenue Information for Segment

(unaudited)



Three months ended March 31, 2019


Wealth 
Management
Business


Asset 
Management
Business


Lending and
Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

401,523


145,608


100,766


647,897

Hong Kong

180,596


20,943


-


201,539

Others

43,974


2,002


-


45,976

Total revenues

626,093


168,553


100,766


895,412




Three months ended March 31, 2018


Wealth 
Management
Business


Asset 
Management
Business


Lending 
and Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

463,431


150,429


43,205


657,065

Hong Kong

133,687


44,866


-


178,553

Total revenues

597,118


195,295


43,205


835,618

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

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

(unaudited)[8]


Three months ended 





March 31, 


March 31, 


Change 



2018


2019





RMB'000


RMB'000











Net income attributable to Noah shareholders

268,465


284,577


6.0%


Adjustment for share-based compensation related to:







Share options

12,210


13,413


9.9%


Restricted shares

10,491


16,203


54.4%


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

34,788


8,742


(74.9%)


Add: gains from sales of equity securities (realized)

-


4,885


N.A.


Less: Tax effect of adjustments

2,283


5,714


150.3%


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

254,095


304,622


19.9%









Net margin attributable to Noah shareholders

32.3%


32.0%




Non-GAAP net margin attributable to Noah shareholders

30.6%


34.2%











Net income attributable to Noah shareholders per ADS,
diluted

4.44


4.57


2.9%


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

4.21


4.90


16.4%


 

[8] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, fair value changes of equity securities (unrealized), adjustment for sale of equity securities and net of tax impact, if any.

 

Cision View original content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-first-quarter-of-2019-300851668.html

SOURCE Noah Holdings Limited

Eva Ma, Noah Holdings Limited, +86-21-8035-9221, ir@noahgroup.com


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