Noah Holdings Limited Announces Unaudited Financial Results for the Second Quarter of 2020
SECOND QUARTER 2020 FINANCIAL HIGHLIGHTS
- Net revenues for the second quarter of 2020 were
RMB747 .4 million (US$105.8 million ), a 0.2% increase from the first quarter of 2020, while a 14.2% decrease from the corresponding period in 2019.
(RMB millions, except percentages) |
Q2 2019 |
Q2 2020 |
YoY Change |
||||
Wealth management |
625.6 |
542.8 |
(13.2%) |
||||
Asset management |
171.1 |
181.6 |
6.1% |
||||
Lending and other businesses |
74.9 |
23.0 |
(69.3%) |
||||
Total net revenues |
871.6 |
747.4 |
(14.2%) |
- Income from operations for the second quarter of 2020 was RMB319.5 million (
US$45.2 million ), a 24.7% increase from the first quarter of 2020, and a 26.9% increase from the corresponding period in 2019.
(RMB millions, except percentages) |
Q2 2019 |
Q2 2020 |
YoY Change |
||||
Wealth management |
129.9 |
196.6 |
51.3% |
||||
Asset management |
86.8 |
100.8 |
16.1% |
||||
Lending and other businesses |
35.2 |
22.1 |
(36.9%) |
||||
Total income from operations |
251.9 |
319.5 |
26.9% |
- Net income attributable to Noah shareholders for the second quarter of 2020 was
RMB299.6 million (US$42.4 million ), a 23.3% increase from the first quarter of 2020, and a 19.8% increase from the corresponding period in 2019. - Non-GAAP[1] net income attributable to Noah shareholders for the second quarter of 2020 was
RMB307.2 million (US$43 .5 million), a 20.1% increase from the first quarter of 2020, and a 16.7% increase from the corresponding period in 2019.
SECOND QUARTER 2020 OPERATIONAL UPDATES
Wealth Management Business
The Company offers financial products and provides value-added services to high net worth clients in
- Total number of registered clients as of
June 30, 2020 was 332,157, a 17.1% increase fromJune 30, 2019 , and a 3.4% increase fromMarch 31, 2020 . - Total number of active clients[2] which excluded mutual fund clients during the second quarter of 2020 was 3,367, a 42.8% decrease from
June 30, 2019 , and a 17.4% decrease from the first quarter of 2020, as we are continuing in the transition of offering more online mutual fund products to our clients. Counting in mutual funds clients, the total number of clients who transacted with us during the second quarter of 2020 was 14,703, a 48.7% increase from the second quarter of 2019, and a 12.6% decrease from the first quarter of 2020. - Aggregate value of financial products distributed during the second quarter of 2020 was RMB21.4 billion (
US$3.0 billion ), a 12.0% decrease from the second quarter of 2019, and a 7.8% decrease from the first quarter of 2020.
Three months ended |
|||||||
2019 |
2020 |
||||||
Product type |
(RMB in billions, except percentages) |
||||||
Credit products |
9.8 |
40.0% |
0.2 |
1.1% |
|||
Private equity products |
7.7 |
31.5% |
2.5 |
11.9% |
|||
Public securities products |
6.0 |
24.7% |
18.0 |
83.8% |
|||
Other products |
0.9 |
3.8% |
0.7 |
3.2% |
|||
All products |
24.4 |
100.0% |
21.4 |
100.0% |
- Coverage network in mainland China included 264 service centers covering 78 cities as of
June 30, 2020 , compared with 306 service centers covering 83 cities as ofJune 30, 2019 and 292 service centers covering 78 cities as ofMarch 31, 2020 . The decrease in the number of service centers and cities is primarily a result of consolidation of duplicate service centers in order to optimize costs and expenses. - Number of relationship managers was 1,196 as of
June 30, 2020 , a 16.2% decrease fromJune 30, 2019 , and a 2.0% decrease fromMarch 31, 2020 , primarily as a result of the Company's efforts to streamline operational human resources. The turnover rate of core "elite" relationship managers was 1.4%, compared with 1.0% as ofMarch 31, 2020 .
Asset Management Business
The Company's asset management business is conducted through
- Total assets under management as of
June 30, 2020 wereRMB159.4 billion (US$22.6 billion ), a 1.4% decrease fromMarch 31, 2020 and an 11.8% decrease fromJune 30, 2019 .
Investment type |
As of |
|
|
As of |
|||||||
(RMB billions, except percentages) |
|||||||||||
Private equity |
105.7 |
65.4% |
2.1 |
0.1 |
107.7 |
67.6% |
|||||
Credit |
19.9 |
12.3% |
0.1 |
5.9 |
14.1 |
8.9% |
|||||
Real estate |
18.2 |
11.3% |
0.7 |
1.6 |
17.3 |
10.8% |
|||||
Public securities[3] |
9.2 |
5.7% |
3.2 |
0.6 |
11.8 |
7.4% |
|||||
Multi-strategies |
8.7 |
5.3% |
0.2 |
0.4 |
8.5 |
5.3% |
|||||
All Investments |
161.7 |
100.0% |
6.3 |
8.6 |
159.4 |
100.0% |
Lending and Other Businesses
The Company's lending business utilizes an advanced risk-management system to assess and facilitate short-term loans to high quality borrowers, often secured with collateral. The total amount of loans originated during the second quarter of 2020 was
Ms.
SECOND QUARTER 2020 FINANCIAL RESULTS
Net Revenues
Net revenues for the second quarter of 2020 were
- Wealth Management Business
- Net revenues from one-time commissions for the second quarter of 2020 wereRMB126.0 million (US$17.8 million ), a 57.0% decrease from the corresponding period in 2019, primarily due to the decrease of transaction value as well as the distribution of lower one-time commission rates products.
- Net revenues from recurring service fees for the second quarter of 2020 wereRMB310.3 million (US$43.9 million ), a 15.5% increase from the corresponding period in 2019, mainly due to the service fees recognized upon liquidation of certain credit products with higher fee rates.
- Net revenues from performance-based income for the second quarter of 2020 wereRMB74.5 million (US$10.5 million ), a 3,671.9% increase from the corresponding period of 2019, primarily due to a significant increase in performance-based income from public securities products as well as certain private equity products.
- Net revenues from other service fees for the second quarter of 2020 wereRMB32.0 million (US$4.5 million ), a 48.1% decrease from the corresponding period in 2019, primarily due to less value-added services Noah offers to its high net worth clients during the COVID-19 epidemic. - Asset Management Business
- Net revenues from recurring service fees for the second quarter of 2020 wereRMB164.0 million (US$23.2 million ), relatively flat compared with the corresponding period in 2019.
- Net revenues from performance-based income for the second quarter of 2020 wereRMB16.1 million (US$2.3 million ), a 184.9% increase from the corresponding period in 2019, primarily due to an increase in performance-based income from private equity products. - Lending and Other Businesses
- Net revenues for the second quarter of 2020 wereRMB23.0 million (US$3.3 million ), a 69.3% decrease from the corresponding period in 2019. The decrease was primarily due to reduced loan origination since the second half of 2019 as well as the ongoing impact of COVID-19.
Operating Costs and Expenses
Operating costs and expenses for the second quarter of 2020 were
- Operating costs and expenses for the wealth management business for the second quarter of 2020 were
RMB346.2 million (US$49.0 million ), a 30.2% decrease from the corresponding period in 2019, primarily due to a decrease in compensation and benefits and credit losses. - Operating costs and expenses for the asset management business for the second quarter of 2020 were
RMB80.9 million (US$11.4 million ), a 4.0% decrease from the corresponding period in 2019, primarily due to a decrease in compensation and benefits and credit losses. - Operating costs and expenses for the lending and other businesses for the second quarter of 2020 were
RMB0.8 million (US$0.1 million ), a 97.9% decrease from the corresponding period in 2019, primarily due to an increase in government grants in the amount ofRMB14.6 million (US$2.1 million ) .
Operating Margin
Operating margin for the second quarter of 2020 was 42.7%, increased from 28.9% for the corresponding period in 2019.
- Operating margin for the wealth management business for the second quarter of 2020 was 36.2%, compared with 20.8% for the corresponding period in 2019.
- Operating margin for the asset management business for the second quarter of 2020 was 55.5%, compared with 50.8% for the corresponding period in 2019.
- Income from operation for the lending and other businesses for the second quarter of 2020 was
RMB22.1 million (US$3.1 million ), compared with an operating income ofRMB35.2 million for the corresponding period in 2019.
Investment Income
Investment income for the second quarter of 2020 was
Income Tax Expenses
Income tax expenses for the second quarter of 2020 were
Income from Equity in Affiliates
Income from equity in affiliates for the second quarter of 2020 was
Net Income
- Net Income
- Net income for the second quarter of 2020 wasRMB301.9 million (US$42.7 million ), an 18.7% increase from the corresponding period in 2019.
- Net margin for the second quarter of 2020 was 40.4%, up from 29.2% for the corresponding period in 2019.
- Net income attributable to Noah shareholders for the second quarter of 2020 wasRMB299.6 million (US$42.4 million ), a 19.8% increase from the corresponding period in 2019.
- Net margin attributable to Noah shareholders for the second quarter of 2020 was 40.1%, up from 28.7% for the corresponding period in 2019.
- Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2020 wasRMB4.86 (US$0.69 ) andRMB4.84 (US$0.69 ), respectively, up fromRMB4.09 andRMB4.04 respectively, for the corresponding period in 2019. - Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders for the second quarter of 2020 wasRMB307.2 million (US$43.5 million ), a 16.7% increase from the corresponding period in 2019.
- Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2020 was 41.1%, compared with 30.2% for the corresponding period in 2019.
- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2020 wasRMB4.96 (US$0.70 ), up fromRMB4.25 for the corresponding period in 2019.
Balance Sheet and Cash Flow
As of
Net cash outflow from the Company's operating activities during the second quarter of 2020 was
Net cash inflow from the Company's investing activities during the second quarter of 2020 was
Net cash inflow from the Company's financing activities was
UPDATE ON CREDIT FUNDS
As the Company previously disclosed on
Furthermore, in order to share the growth of the Company with the Investors, to prevent distraction or diversion of its management resources from existing or potential claims, as well as to protect the best interests of its shareholders, the Company has decided to propose a settlement offer to the Investors.
Under the settlement plan, each Investor will be granted a certain number of restricted share units ("RSUs") of the Company, typically over a period of up to ten years, the vesting of which is subject to certain conditions and a schedule not exceeding fifteen years. An investor accepting the offer shall agree to give up all his or her outstanding legal rights associated with Camsing Products and irrevocably release the Company and all its affiliated entities and individuals from any and all claims, known or unknown, that relate to the Camsing Products. Upon vesting of the RSUs, the Investor will receive Class A ordinary shares of the Company. On
As of the date hereof, there are only claims initiated in
[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. |
2020 FORECAST
The Company revises its non-GAAP net income attributable to Noah shareholders for the full year 2020 from the range of
CONFERENCE CALL
Senior management will host a combined English and Chinese language conference call to discuss the Company's second quarter 2020 unaudited financial results and recent business activities.
The conference call may be accessed with the following details:
Conference call details |
|
Date/Time:
|
|
Dial in details: |
|
- United States Toll Free |
+1-866-311-7654 |
- Mainland |
4001-201-203 |
- Hong Kong Toll Free |
800-905-945 |
- Hong Kong Local Toll |
+852-301-84992 |
- International |
+1-412-317-5227 |
Conference Title: |
Noah Holdings 2Q20 Earnings Conference Call |
Participant Password: |
|
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 NON-GAAP MEASURES
In addition to disclosing financial results prepared in accordance with
The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with
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
ABOUT
Noah's wealth management business primarily distributes private equity, public securities, credit and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,196 relationship managers across 264 service centers in 78 cities in mainland China, and serves the international investment needs of its clients through offices in
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 2020 ended
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(unaudited) |
|||||||
As of |
|||||||
|
|
|
|||||
2020 |
2020 |
2020 |
|||||
RMB'000 |
RMB'000 |
USD'000 |
|||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
4,045,796 |
4,170,704 |
590,325 |
||||
Restricted cash |
6,583 |
4,098 |
580 |
||||
Short-term investments |
97,863 |
61,151 |
8,655 |
||||
Accounts receivable, net |
297,493 |
334,411 |
47,333 |
||||
Loans receivable, net |
620,905 |
619,811 |
87,729 |
||||
Amounts due from related parties |
757,278 |
766,189 |
108,447 |
||||
Other current assets |
196,857 |
199,908 |
28,295 |
||||
Total current assets |
6,022,775 |
6,156,272 |
871,364 |
||||
Long-term investments, net |
837,449 |
836,442 |
118,391 |
||||
Investment in affiliates |
1,325,649 |
1,291,255 |
182,765 |
||||
Property and equipment, net |
271,574 |
262,648 |
37,175 |
||||
Operating lease right-of-use assets, net |
337,405 |
343,925 |
48,679 |
||||
Deferred tax assets |
167,254 |
164,749 |
23,319 |
||||
Other non-current assets |
126,369 |
148,590 |
21,029 |
||||
Total Assets |
9,088,475 |
9,203,881 |
1,302,722 |
||||
Liabilities and Equity |
|||||||
Current liabilities: |
|||||||
Accrued payroll and welfare expenses |
644,420 |
461,530 |
65,325 |
||||
Income tax payable |
101,630 |
77,381 |
10,953 |
||||
Deferred revenues |
141,228 |
163,608 |
23,157 |
||||
Other current liabilities |
369,847 |
351,690 |
49,778 |
||||
Total current liabilities |
1,257,125 |
1,054,209 |
149,213 |
||||
Operating lease liabilities, non-current |
344,078 |
346,241 |
49,007 |
||||
Deferred tax liabilities |
56,804 |
56,480 |
7,994 |
||||
Other non-current liabilities |
2,787 |
3,526 |
499 |
||||
Total Liabilities |
1,660,794 |
1,460,456 |
206,713 |
||||
Equity |
7,427,681 |
7,743,425 |
1,096,009 |
||||
Total Liabilities and Equity |
9,088,475 |
9,203,881 |
1,302,722 |
|
||||||||
Condensed Consolidated Income Statements |
||||||||
(In RMB'000, except for USD data, per ADS data and percentages) |
||||||||
(unaudited) |
||||||||
Three months ended |
||||||||
|
|
|
Change |
|||||
2019 |
2020 |
2020 |
||||||
Revenues: |
RMB'000 |
RMB'000 |
USD'000 |
|||||
Revenues from others: |
||||||||
One-time commissions |
193,937 |
117,085 |
16,572 |
(39.6%) |
||||
Recurring service fees |
131,164 |
152,253 |
21,550 |
16.10% |
||||
Performance-based income |
2,051 |
57,206 |
8,097 |
2689.20% |
||||
Other service fees |
139,940 |
56,197 |
7,954 |
(59.8%) |
||||
Total revenues from others |
467,092 |
382,741 |
54,173 |
(18.1%) |
||||
Revenues from funds Gopher |
||||||||
One-time commissions |
101,104 |
10,431 |
1,476 |
(89.7%) |
||||
Recurring service fees |
303,578 |
324,174 |
45,884 |
6.80% |
||||
Performance-based income |
5,610 |
33,766 |
4,779 |
501.90% |
||||
Total revenues from funds Gopher |
410,292 |
368,371 |
52,139 |
(10.2%) |
||||
Total revenues |
877,384 |
751,112 |
106,312 |
(14.4%) |
||||
Less: VAT related surcharges |
(5,786) |
(3,674) |
(520) |
(36.5%) |
||||
Net revenues |
871,598 |
747,438 |
105,792 |
(14.2%) |
||||
Operating costs and expenses: |
||||||||
Compensation and benefits |
||||||||
Relationship managers |
(175,898) |
(113,044) |
(16,000) |
(35.7%) |
||||
Others |
(261,604) |
(217,805) |
(30,828) |
(16.7%) |
||||
Total compensation and benefits |
(437,502) |
(330,849) |
(46,828) |
(24.4%) |
||||
Selling expenses |
(79,557) |
(62,622) |
(8,864) |
(21.3%) |
||||
General and administrative expenses |
(47,742) |
(68,502) |
(9,696) |
43.5% |
||||
Provision for credit losses |
(36,461) |
(1,897) |
(269) |
(94.8%) |
||||
Other operating expenses |
(51,063) |
(20,715) |
(2,932) |
(59.4%) |
||||
Government grants |
32,587 |
56,651 |
8,018 |
73.8% |
||||
Total operating costs and expenses |
(619,738) |
(427,934) |
(60,571) |
(30.9%) |
||||
Income from operations |
251,860 |
319,504 |
45,221 |
26.9% |
||||
Other income: |
||||||||
Interest income |
29,225 |
10,530 |
1,490 |
(64.0%) |
||||
Investment income |
11,847 |
4,711 |
667 |
(60.2%) |
||||
Other income |
310 |
4,298 |
608 |
1286.5% |
||||
Total other income |
41,382 |
19,539 |
2,765 |
(52.8%) |
||||
Income before taxes and income from |
293,242 |
339,043 |
47,986 |
15.6% |
||||
Income tax expense |
(67,622) |
(77,810) |
(11,013) |
15.1% |
||||
Income from equity in affiliates |
28,829 |
40,693 |
5,760 |
41.2% |
||||
Net income |
254,449 |
301,926 |
42,733 |
18.7% |
||||
Less: net income attributable to non- |
||||||||
4,266 |
2,285 |
323 |
(46.4%) |
|||||
Net income attributable to Noah |
250,183 |
299,641 |
42,410 |
19.8% |
||||
Income per ADS, basic |
4.09 |
4.86 |
0.69 |
18.8% |
||||
Income per ADS, diluted |
4.04 |
4.84 |
0.69 |
19.8% |
||||
Margin analysis: |
||||||||
Operating margin |
28.9% |
42.7% |
42.7% |
|||||
Net margin |
29.2% |
40.4% |
40.4% |
|||||
Weighted average ADS equivalent[1]: |
||||||||
Basic |
61,211,098 |
61,661,522 |
61,661,522 |
|||||
Diluted |
61,966,245 |
61,921,913 |
61,921,913 |
|||||
ADS equivalent outstanding at end of |
61,259,417 |
61,698,055 |
61,698,055 |
|||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs. |
|
||||||||||
Condensed Consolidated Income Statements |
||||||||||
(In RMB'000, except for USD data, per ADS data and percentages) |
||||||||||
(unaudited) |
||||||||||
Six months ended |
||||||||||
|
|
|
Change |
|||||||
2019 |
2020 |
2020 |
||||||||
Revenues: |
RMB'000 |
RMB'000 |
USD'000 |
|||||||
Revenues from others: |
||||||||||
One-time commissions |
410,580 |
324,270 |
45,897 |
(21.0%) |
||||||
Recurring service fees |
263,640 |
300,710 |
42,563 |
14.1% |
||||||
Performance-based income |
3,145 |
71,824 |
10,166 |
2,183.8% |
||||||
Other service fees |
285,317 |
122,805 |
17,382 |
(57.0%) |
||||||
Total revenues from others |
962,682 |
819,609 |
116,008 |
(14.9%) |
||||||
Revenues from funds Gopher |
||||||||||
One-time commissions |
209,012 |
15,180 |
2,149 |
(92.7%) |
||||||
Recurring service fees |
591,734 |
627,624 |
88,834 |
6.1% |
||||||
Performance-based income |
9,368 |
38,941 |
5,512 |
315.7% |
||||||
Total revenues from funds |
810,114 |
681,745 |
96,495 |
(15.8%) |
||||||
Total revenues |
1,772,796 |
1,501,354 |
212,503 |
(15.3%) |
||||||
Less: VAT related surcharges |
(11,314) |
(7,799) |
(1,104) |
(31.1%) |
||||||
Net revenues |
1,761,482 |
1,493,555 |
211,399 |
(15.2%) |
||||||
Operating costs and expenses: |
||||||||||
Compensation and benefits |
||||||||||
Relationship managers |
(343,166) |
(283,096) |
(40,070) |
(17.5%) |
||||||
Others |
(498,641) |
(412,592) |
(58,399) |
(17.3%) |
||||||
Total compensation and |
(841,807) |
(695,688) |
(98,469) |
(17.4%) |
||||||
Selling expenses |
(170,013) |
(107,162) |
(15,168) |
(37.0%) |
||||||
General and administrative |
(106,743) |
(132,187) |
(18,710) |
23.8% |
||||||
Provision for credit losses |
(36,010) |
(4,706) |
(666) |
(86.9%) |
||||||
Other operating expenses |
(101,891) |
(53,332) |
(7,549) |
(47.7%) |
||||||
Government grants |
49,367 |
75,286 |
10,656 |
52.5% |
||||||
Total operating costs and |
(1,207,097) |
(917,789) |
(129,906) |
(24.0%) |
||||||
Income from operations |
554,385 |
575,766 |
81,493 |
3.9% |
||||||
Other income: |
||||||||||
Interest income |
52,348 |
32,700 |
4,628 |
(37.5%) |
||||||
Interest expenses |
(430) |
- |
- |
N.A. |
||||||
Investment income |
37,510 |
22,277 |
3,153 |
(40.6%) |
||||||
Other expense (income) |
(1,618) |
5,156 |
730 |
N.A. |
||||||
Total other income |
87,810 |
60,133 |
8,511 |
(31.5%) |
||||||
Income before taxes and |
642,195 |
635,899 |
90,004 |
(1.0%) |
||||||
Income tax expense |
(147,114) |
(146,086) |
(20,677) |
(0.7%) |
||||||
Income from equity in affiliates |
46,952 |
55,769 |
7,894 |
18.8% |
||||||
Net income |
542,033 |
545,582 |
77,221 |
0.7% |
||||||
Less: net income attributable to |
7,273 |
2,916 |
413 |
(59.9%) |
||||||
Net income attributable to |
534,760 |
542,666 |
76,808 |
1.5% |
||||||
Income per ADS, basic |
8.78 |
8.80 |
1.25 |
0.2% |
||||||
Income per ADS, diluted |
8.65 |
8.76 |
1.24 |
1.3% |
||||||
Margin analysis: |
||||||||||
Operating margin |
31.5% |
38.6% |
38.6% |
|||||||
Net margin |
30.8% |
36.5% |
36.5% |
|||||||
Weighted average ADS |
||||||||||
Basic |
60,892,670 |
61,640,688 |
61,640,688 |
|||||||
Diluted |
61,933,765 |
61,949,755 |
61,949,755 |
|||||||
ADS equivalent outstanding at |
61,259,417 |
61,698,055 |
61,698,055 |
|||||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs. |
|
|||||||||
Condensed Comprehensive Income Statements |
|||||||||
(unaudited) |
|||||||||
Three months ended |
|||||||||
|
|
|
Change |
||||||
2019 |
2020 |
2020 |
|||||||
RMB'000 |
RMB'000 |
USD'000 |
|||||||
Net income |
254,449 |
301,926 |
42,733 |
18.7% |
|||||
Other comprehensive income, net of tax: |
|||||||||
Foreign currency translation adjustments |
54,495 |
(7,160) |
(1,013) |
N.A. |
|||||
Fair value fluctuation of available for sale |
2,339 |
110 |
(66.9%) |
||||||
775 |
|||||||||
Comprehensive income |
311,283 |
295,541 |
41,830 |
(5.1%) |
|||||
Less: Comprehensive income attributable |
4,199 |
2,326 |
329 |
(44.6%) |
|||||
Comprehensive income attributable to |
307,084 |
293,215 |
41,501 |
(4.5%) |
|
|||||||||
Condensed Comprehensive Income Statements |
|||||||||
(unaudited) |
|||||||||
Six months ended |
|||||||||
|
|
|
Change |
||||||
2019 |
2020 |
2020 |
|||||||
RMB'000 |
RMB'000 |
USD'000 |
|||||||
Net income |
542,033 |
545,582 |
77,221 |
0.7% |
|||||
Other comprehensive income, net of tax: |
|||||||||
Foreign currency translation adjustments |
23,637 |
30,159 |
4,269 |
27.6% |
|||||
Fair value fluctuation of available for sale |
2,387 |
771 |
109 |
(67.7%) |
|||||
Comprehensive income |
568,057 |
576,512 |
81,599 |
1.5% |
|||||
Less: Comprehensive income attributable |
7,416 |
2,952 |
418 |
(60.2%) |
|||||
Comprehensive income attributable to |
560,641 |
573,560 |
81,181 |
2.3% |
|||||
|
|||||
Supplemental Information |
|||||
(unaudited) |
|||||
As of |
|||||
|
|
Change |
|||
2019 |
2020 |
||||
Number of registered clients |
283,655 |
332,157 |
17.1% |
||
Number of relationship managers |
1,428 |
1,196 |
(16.2%) |
||
Number of cities in mainland China under coverage |
83 |
78 |
(6.0%) |
||
Three months ended |
|||||
|
|
Change |
|||
2019 |
2020 |
||||
(in millions of RMB, except number of active clients and |
|||||
Number of active clients[4] |
5,882 |
3,367 |
(42.8%) |
||
Number of active clients including mutual fund clients |
9,888 |
14,703 |
48.7% |
||
Transaction value: |
|||||
Credit products |
9,750 |
232 |
(97.6%) |
||
Private equity products |
7,658 |
2,551 |
(66.7%) |
||
Public securities products |
6,021 |
17,971 |
198.5% |
||
Other products |
934 |
689 |
(26.2%) |
||
Total transaction value |
24,363 |
21,443 |
(12.0%) |
||
[4] "Active clients" for a given period refers to registered high net worth clients who purchase financial products |
Noah Holdings Limited |
||||||||
Segment Condensed Income Statements |
||||||||
(unaudited) |
||||||||
Three months ended |
||||||||
Wealth |
Asset |
Lending and Other |
Total |
|||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|||||
Revenues: |
||||||||
Revenues from others |
||||||||
One-time commissions |
116,719 |
366 |
- |
117,085 |
||||
Recurring service fees |
151,607 |
646 |
- |
152,253 |
||||
Performance-based income |
57,206 |
- |
- |
57,206 |
||||
Other service fees |
32,163 |
627 |
23,407 |
56,197 |
||||
Total revenues from others |
357,695 |
1,639 |
23,407 |
382,741 |
||||
Revenues from funds Gopher |
||||||||
One-time commissions |
9,860 |
571 |
- |
10,431 |
||||
Recurring service fees |
160,202 |
163,972 |
- |
324,174 |
||||
Performance-based income |
17,613 |
16,153 |
- |
33,766 |
||||
Total revenues from funds |
187,675 |
180,696 |
- |
368,371 |
||||
Total revenues |
545,370 |
182,335 |
23,407 |
751,112 |
||||
Less: VAT related surcharges |
(2,560) |
(693) |
(421) |
(3,674) |
||||
Net revenues |
542,810 |
181,642 |
22,986 |
747,438 |
||||
Operating costs and expenses: |
||||||||
Compensation and benefits |
||||||||
Relationship managers |
(113,044) |
- |
- |
(113,044) |
||||
Others |
(129,238) |
(70,395) |
(18,172) |
(217,805) |
||||
Total compensation and |
(242,282) |
(70,395) |
(18,172) |
(330,849) |
||||
Selling expenses |
(49,302) |
(8,407) |
(4,913) |
(62,622) |
||||
General and administrative |
(51,735) |
(12,994) |
(3,773) |
(68,502) |
||||
Provision for credit losses |
- |
- |
(1,897) |
(1,897) |
||||
Other operating expenses |
(17,796) |
(1,614) |
(1,305) |
(20,715) |
||||
Government grants |
14,868 |
12,549 |
29,234 |
56,651 |
||||
Total operating costs and |
(346,247) |
(80,861) |
(826) |
(427,934) |
||||
Income from operations |
196,563 |
100,781 |
22,160 |
319,504 |
|
|||||||
Segment Condensed Income Statements |
|||||||
(unaudited) |
|||||||
Three months ended |
|||||||
Wealth Business |
Asset Business |
Lending and |
Total |
||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||
Revenues: |
|||||||
Revenues from others |
|||||||
One-time commissions |
193,567 |
370 |
- |
193,937 |
|||
Recurring service fees |
129,698 |
1,466 |
- |
131,164 |
|||
Performance-based income |
1,984 |
67 |
- |
2,051 |
|||
Other service fees |
62,032 |
1,193 |
76,715 |
139,940 |
|||
Total revenues from others |
387,281 |
3,096 |
76,715 |
467,092 |
|||
Revenues from funds Gopher manages |
|||||||
One-time commissions |
101,104 |
- |
- |
101,104 |
|||
Recurring service fees |
140,316 |
163,262 |
- |
303,578 |
|||
Performance-based income |
- |
5,610 |
- |
5,610 |
|||
Total revenues from funds Gopher |
241,420 |
168,872 |
- |
410,292 |
|||
Total revenues |
628,701 |
171,968 |
76,715 |
877,384 |
|||
Less: VAT related surcharges |
(3,070) |
(877) |
(1,839) |
(5,786) |
|||
Net revenues |
625,631 |
171,091 |
74,876 |
871,598 |
|||
Operating costs and expenses: |
|||||||
Compensation and benefits |
|||||||
Relationship managers |
(175,851) |
- |
(47) |
(175,898) |
|||
Others |
(162,491) |
(72,697) |
(26,416) |
(261,604) |
|||
Total compensation and benefits |
(338,342) |
(72,697) |
(26,463) |
(437,502) |
|||
Selling expenses |
(70,838) |
(4,344) |
(4,375) |
(79,557) |
|||
General and administrative |
(31,834) |
(11,143) |
(4,765) |
(47,742) |
|||
Provision for credit losses |
(31,402) |
(2,635) |
(2,424) |
(36,461) |
|||
Other operating expenses |
(32,179) |
(2,575) |
(16,309) |
(51,063) |
|||
Government grants |
8,821 |
9,144 |
14,622 |
32,587 |
|||
Total operating costs and expenses |
(495,774) |
(84,250) |
(39,714) |
(619,738) |
|||
Income from operations |
129,857 |
86,841 |
35,162 |
251,860 |
|
|||||||
Supplement Revenue Information by Geography |
|||||||
(unaudited) |
|||||||
Three months ended |
|||||||
Wealth |
Asset |
Lending |
Total |
||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||
Revenues: |
|||||||
Mainland China |
392,284 |
150,489 |
23,407 |
566,180 |
|||
|
121,176 |
28,052 |
- |
149,228 |
|||
Others |
31,910 |
3,794 |
- |
35,704 |
|||
Total revenues |
545,370 |
182,335 |
23,407 |
751,112 |
Three months ended |
|||||||
Wealth |
Asset |
Lending |
Total |
||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||
Revenues: |
|||||||
Mainland China |
420,540 |
145,992 |
76,715 |
643,247 |
|||
|
178,002 |
23,705 |
- |
201,707 |
|||
Others |
30,159 |
2,271 |
- |
32,430 |
|||
Total revenues |
628,701 |
171,968 |
76,715 |
877,384 |
|
|||||||
Reconciliation of GAAP to Non-GAAP Results |
|||||||
(In RMB, except for per ADS data and percentages) |
|||||||
(unaudited) [5] |
|||||||
Three months ended |
|||||||
|
|
Change |
|||||
2019 |
2020 |
||||||
RMB'000 |
RMB'000 |
||||||
Net income attributable to Noah shareholders |
250,183 |
299,641 |
19.8% |
||||
Adjustment for share-based compensation |
22,994 |
18,106 |
(21.3%) |
||||
Less: gains from fair value changes of equity securities |
10,775 |
2,316 |
(78.5%) |
||||
Add: gains from sales of equity securities (realized) |
4,951 |
- |
N.A. |
||||
Less: tax effect of adjustments |
3,977 |
8,200 |
106.2% |
||||
Adjusted net income attributable to Noah shareholders |
263,376 |
307,231 |
16.7% |
||||
Net margin attributable to Noah shareholders |
28.7% |
40.1% |
|||||
Non-GAAP net margin attributable to Noah shareholders |
30.2% |
41.1% |
|||||
Net income attributable to Noah shareholders per ADS, |
4.04 |
4.84 |
19.8% |
||||
Non-GAAP net income attributable to Noah shareholders |
4.25 |
4.96 |
16.7% |
||||
[5] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the |
|
|||||||
Reconciliation of GAAP to Non-GAAP Results |
|||||||
(In RMB, except for per ADS data and percentages) |
|||||||
(unaudited) |
|||||||
Six months ended |
|||||||
|
|
Change |
|||||
2019 |
2020 |
||||||
RMB'000 |
RMB'000 |
||||||
Net income attributable to Noah shareholders |
534,760 |
542,666 |
1.5% |
||||
Adjustment for share-based compensation |
52,610 |
36,397 |
(30.8%) |
||||
Less: gains from fair value changes of equity securities |
19,517 |
8,399 |
(57.0%) |
||||
Add: gains from sales of equity securities (realized) |
9,836 |
- |
N.A. |
||||
Less: tax effect of adjustments |
9,691 |
7,548 |
(22.1%) |
||||
Adjusted net income attributable to Noah shareholders |
567,998 |
563,116 |
(0.9%) |
||||
Net margin attributable to Noah shareholders |
30.4% |
36.3% |
|||||
Non-GAAP net margin attributable to Noah shareholders |
32.2% |
37.7% |
|||||
Net income attributable to Noah shareholders per ADS, |
8.65 |
8.76 |
1.3% |
||||
Non-GAAP net income attributable to Noah shareholders |
9.18 |
9.09 |
(1.0%) |
View original content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-second-quarter-of-2020-301117041.html
SOURCE
Noah Holdings Limited, Sonia Han, Ryan Teng, Terry Huang, Tel: +86-21-8035-8294, ir@noahgroup.com