Noah Holdings Limited Announces 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
- Total number of registered clients as of
March 31, 2019 was 274,893, a 39.6% increase fromMarch 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 ofMarch 31, 2019 , up from 263 service centers covering 81 cities as ofMarch 31, 2018 and unchanged fromDecember 31, 2018 . - Number of relationship managers was 1,496 as of
March 31, 2019 , a 7.9% increase fromMarch 31, 2018 , but a 5.5% decrease fromDecember 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
- Total assets under management as of March 31, 2019 were
RMB171.1 billion (US$25.5 billion ), a 1.1% increase fromDecember 31, 2018 and a 9.1% increase fromMarch 31, 2018 .
Investment type |
As of |
Asset |
Asset |
As of |
|||||||
(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
Mr.
FIRST QUARTER 2019 FINANCIAL RESULTS
Net Revenues
Net revenues for the first quarter of 2019 were
- 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 withRMB20.0 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 withRMB14.9 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 withRMB39.4 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
- 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 ofRMB18.9 million for the corresponding period in 2018.
Investment Income
Investment income for the first quarter of 2019 was
Income Tax Expenses
Income tax expenses for the first quarter of 2019 were
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) andRMB4.57 (US$0.68) , respectively, compared withRMB4.70 andRMB4.44 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 fromRMB4.21 for the corresponding period in 2018.
Balance Sheet and Cash Flow
As of
Net cash inflow from the Company's operating activities during the first quarter of 2019 was
Net cash outflow from the Company's investing activities during the first quarter of 2019 was
Net cash inflow from the Company's financing activities was
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
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
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'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
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
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
-- 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 |
450,477 |
501,646 |
74,748 |
||||
Accounts receivable, net of allowance for doubtful accounts |
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 |
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 |
|||||||||||
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 |
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 |
(158,701) |
(167,268) |
(24,924) |
5.4% |
|||||||
Performance fee |
(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 |
(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 |
(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 |
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 |
(7,639) |
3,007 |
448 |
N.A. |
|||||||
Net income attributable to Noah |
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 |
|||||||||||
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 |
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 |
1,376 |
74 |
11 |
(94.6%) |
|||||
Comprehensive income |
227,339 |
256,800 |
38,264 |
13.0% |
|||||
Less: Comprehensive (loss) income |
(7,579) |
3,217 |
479 |
N.A. |
|||||
Comprehensive income attributable to |
234,918 |
253,583 |
37,785 |
7.9% |
Noah Holdings Limited |
|||||
Supplemental Information |
|||||
(unaudited) |
|||||
As of |
|||||
March 31, |
March 31, |
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 |
81 |
83 |
2.5% |
||
Three months ended |
|||||
March 31, |
March 31, |
Change |
|||
(in millions of RMB, except number of active clients and |
|||||
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 |
Asset |
Lending |
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 |
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 Business |
Asset Business |
Lending |
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 |
|||||||
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 |
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 |
(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 |
(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 |
Asset |
Lending and |
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 |
Asset |
Lending |
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 |
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 |
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, |
4.44 |
4.57 |
2.9% |
||||
Non-GAAP net income attributable to Noah shareholders |
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. |
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
Eva Ma, Noah Holdings Limited, +86-21-8035-9221, ir@noahgroup.com