Noah Holdings Limited Announces Unaudited Financial Results for the Second Quarter of 2021

Aug 17, 2021

SHANGHAI, Aug. 17, 2021 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors, today announced its unaudited financial results for the second quarter of 2021.

SECOND QUARTER 2021 FINANCIAL HIGHLIGHTS

  • Net revenues for the second quarter of 2021 were RMB899.4 million (US$139.3 million), a 20.3% increase from the corresponding period in 2020 due to increased one-time commissions as well as recurring service fees.

(RMB millions,

except percentages)

Q2 2020



Q2 2021



YoY Change

Wealth management

542.8



625.6



15.3%

Asset management

181.6



256.3



41.1%

Other businesses

23.0



17.5



(23.9%)

Total net revenues

747.4



899.4



20.3%

  • Income from operations for the second quarter of 2021 was RMB335.4 million (US$51.9 million), a 5.0% increase from the corresponding period in 2020.

(RMB millions,

except percentages)

Q2 2020



Q2 2021



YoY Change

Wealth management

196.6



176.7



(10.1%)

Asset management

100.8



172.8



71.4%

Other businesses

22.1



(14.1)



N.A.

Total income from operations

319.5



335.4



5.0%

  • Net income attributable to Noah shareholders for the second quarter of 2021 was RMB305.5 million (US$47.3 million), a 2.0% increase from the corresponding period in 2020.
  • Non-GAAP[1] net income attributable to Noah shareholders for the second quarter of 2021 was RMB337.0 million (US$52.2 million), a 7.5% increase from the corresponding period in 2020.

[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring share-based settlement expenses and net of relevant tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

SECOND QUARTER 2021 OPERATIONAL UPDATES

Wealth Management Business

We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. Noah primarily distributes private equity, private secondary, mutual funds and other products denominated in RMB and other currencies.

  • Total number of registered clients as of June 30, 2021 was 397,235, a 19.6% increase from June 30, 2020, and a 3.4% increase from March 31, 2021.
  • Total number of active clients[2] which excluded mutual fund-only clients during the second quarter of 2021 was 4,676, a 38.9% increase from the second quarter of 2020, and a 25.8% decrease from the first quarter of 2021. Counting in mutual fund-only clients, the total number of clients who transacted with us during the second quarter of 2021 was 20,290, a 38.0% increase from the second quarter of 2020, and a 27.1% decrease from the first quarter of 2021.
  • Aggregate value of investment products distributed during the second quarter of 2021 was RMB25.0 billion (US$3.9 billion), a 16.6% increase from the second quarter of 2020. 

[2]  "Active clients" for a given period refers to registered high net worth investors who purchase investment products distributed or provided by Noah during that given period, excluding clients who transacted only on our online mutual fund platform.

 


Three months ended June 30,


2020


2021

Product type

(RMB in billions, except percentages)

Private equity products

2.5


11.9%


6.5


25.9%

Private secondary products[3]

7.2


33.4%


7.7


30.8%

Mutual fund products

10.8


50.4%


9.4


37.5%

Other products[4]

0.9


4.3%


1.4


5.8%

All products

21.4


100.0%


25.0


100.0%


[3]  "Private secondary products" refers to privately raised investment products that invest in publicly traded securities, and
"mutual fund products" refers to publicly raised investment products that invest in publicly traded securities, and these two
were previously combined as "public securities products".

[4]  "Other products" refers to other investment products, which includes insurance products, multi-strategies products and
others.

  • Coverage network in mainland China covers 81 cities as of June 30, 2021, compared with 78 cities as of June 30, 2020 and 82 cities as of March 31, 2021.
  • Number of relationship managers was 1,268 as of June 30, 2021, a 6.0% increase from June 30, 2020, and a 1.8% increase from March 31, 2021. The turnover rate of core "elite" relationship managers was 1.7%, compared with 1.4% as of June 30, 2020.

Asset Management Business

Our asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading multi-asset manager in China with overseas offices in Hong Kong and the United States. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities to multi-strategy investments denominated in RMB and other currencies.

  • Total assets under management as of June 30, 2021 were RMB155.9 billion (US$24.1 billion), a 1.2% increase from March 31, 2021 and a 2.2% decrease from June 30, 2020.

Investment type

As of 
March 31
2021



Growth



Distribution/ 
Redemption


As of
June 30
2021


(RMB billions, except percentages)

Private equity

121.9


79.1%


5.8


-


127.7


81.9%

Public securities[5]

10.5


6.8%


1.5


0.9


11.1


7.1%

Real estate

10.7


7.0%


-


0.5


10.2


6.6%

Multi-strategies

5.9


3.8%


0.1


0.5


5.5


3.5%

Others

5.1


3.3%


-


3.7


1.4


0.9%

All Investments

154.1


100.0%


7.4


5.6


155.9


100.0%


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

Other Businesses

Since the fourth quarter of 2020, our other businesses segment has been transitioning to "Noah Digital Intelligence", aiming to diversify distribution channels beyond our wealth management, and to provide more comprehensive services and investment products.

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "It has been two years since we started the paradigm transformation in the third quarter of 2019. We are happy to report continued strong growth year-over-year in diamond and black card client numbers and all major revenue streams in the second quarter of 2021. Our net revenues grew 20.3% year-on-year to RMB899.4 million, and non-GAAP net income grew 7.5% year-on-year to RMB337.0 million in this quarter, supported by that fact that one-time commissions, recurring service fees and performance-based income were up 94.7%, 5.2% and 34.7% year-on-year respectively. A significant milestone we achieved in this quarter is that we have completed the redemption and distribution of all single counter-party private credit products, except for partial Camsing and Huishan products. Another encouraging signal is that the number of black card clients increased by 11.3% to 1,104 as of June 30, 2021, indicating the fastest growth of our ultra-high-net-worth clients since the transformation. In addition, by strategically investing in iCapital Network, we hope to continue improving our competitiveness overseas." 

SECOND QUARTER 2021 FINANCIAL RESULTS

Net Revenues

Net revenues for the second quarter of 2021 were RMB899.4 million (US$139.3 million), a 20.3% increase from the corresponding period in 2020, primarily driven by increased one-time commissions as well as recurring service fees, partially offset by decreased other service fees.

  • Wealth Management Business
    • Net revenues from one-time commissions for the second quarter of 2021 were RMB215.3 million (US$33.4 million), a 70.9% increase from the corresponding period in 2020, primarily due to increased transaction value as well as the distribution of higher one-time commission rates products.
    • Net revenues from recurring service fees for the second quarter of 2021 were RMB340.0 million (US$52.7 million), a 9.6% increase from the corresponding period in 2020, mainly due to cumulative effect of investment products with recurring service fees previously distributed.
    • Net revenues from performance-based income for the second quarter of 2021 were RMB55.6 million (US$8.6 million), a 25.3% decrease from the corresponding period of 2020, primarily due to less performance-based income from public securities products.
    • Net revenues from other service fees for the second quarter of 2021 were RMB14.6 million (US$2.3 million), a 54.5% decrease from the corresponding period in 2020, 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 2021 were RMB158.5 million (US$24.5 million), a 3.4% decrease from the corresponding period in 2020.
    • Net revenues from performance-based income for the second quarter of 2021 were RMB66.3 million (US$10.3 million), a 311.8% increase from the corresponding period in 2020, primarily due to an increase in performance-based income from real estate products and offshore private equity products.
  • Other Businesses
    • Net revenues for the second quarter of 2021 were RMB17.5 million (US$2.7 million), a 23.9% decrease from the corresponding period in 2020. The decrease was primarily due to reduced loan origination since the second half of 2020 as well as the ongoing impact of COVID-19.

Operating Costs and Expenses

Operating costs and expenses for the second quarter of 2021 were RMB564.0 million (US$87.4 million), a 31.8% increase from the corresponding period in 2020. Operating costs and expenses primarily consisted of compensation and benefits of RMB395.8 million (US$61.3 million), selling expenses of RMB99.5 million (US$15.4 million), general and administrative expenses of RMB77.9 million (US$12.1 million), provision of credit losses of RMB2.1 million (US$0.3 million) and other operating expenses of RMB28.1 million (US$4.3 million).

  • Operating costs and expenses for the wealth management business for the second quarter of 2021 were RMB448.9 million (US$69.5 million), a 29.7% increase from the corresponding period in 2020, primarily due to an increase in compensation and benefits in line with increased transaction value and selling expenses.
  • Operating costs and expenses for the asset management business for the second quarter of 2021 were RMB83.4 million (US$12.9 million), a 3.2% increase from the corresponding period in 2020, primarily due to increased compensation and benefits as well as expenses and offset by more government grants received.
  • Operating costs and expenses for other businesses for the second quarter of 2021 were RMB31.7 million (US$4.9 million), compared with RMB0.8 million from the corresponding period in 2020, primarily due to increased depreciation expenses for our newly purchased headquarter buildings as well as less government grants received compared with corresponding period in 2020.

Operating Margin

Operating margin for the second quarter of 2021 was 37.3%, decreased from 42.7% for the corresponding period in 2020.

  • Operating margin for the wealth management business for the second quarter of 2021 was 28.2%, compared with 36.2% for the corresponding period in 2020, due to less expenses incurred in the first half year of 2020 due to the COVID-19 pandemic as well as private equity products distribution business transferred to asset management business.
  • Operating margin for the asset management business for the second quarter of 2021 was 67.4%, compared with 55.5% for the corresponding period in 2020, due to revenue recognition of private equity products transferred from wealth management business to asset management business since the fourth quarter of 2020 as well as more performance-based income in this quarter.
  • Loss from operation for other businesses for the second quarter of 2021 was RMB14.1 million (US$2.2 million), compared with an operating income of RMB22.1 million for the corresponding period in 2020.

Investment Income

Investment income for the second quarter of 2021 was RMB3.5 million (US$0.5 million), compared with RMB4.7 million for the corresponding period in 2020.

Income Tax Expenses

Income tax expenses for the second quarter of 2021 were RMB68.7 million (US$10.6 million), an 11.7% decrease from the corresponding period in 2020, primarily due to less taxable income. 

Income from Equity in Affiliates

Income from equity in affiliates for the second quarter of 2021 was RMB53.4 million (US$8.3 million), a 31.3% increase from the corresponding period in 2020, primarily due to the increase of net income of the funds of funds we manage and invest in as the general partner or manager.

Net Income

  • Net Income
    • Net income for the second quarter of 2021 was RMB308.0 million (US$47.7 million), a 2.0% increase from the corresponding period in 2020.
    • Net margin for the second quarter of 2021 was 34.2%, down from 40.4% for the corresponding period in 2020.
    • Net income attributable to Noah shareholders for the second quarter of 2021 was RMB305.5 million (US$47.3 million), a 2.0% increase from the corresponding period in 2020.
    • Net margin attributable to Noah shareholders for the second quarter of 2021 was 34.0%, down from 40.1% for the corresponding period in 2020.
    • Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2021 was RMB4.56 (US$0.71) and RMB4.53 (US$0.70), respectively, down from RMB4.86 and RMB4.84 respectively, for the corresponding period in 2020.
  • Non-GAAP Net Income Attributable to Noah Shareholders
    • Non-GAAP net income attributable to Noah shareholders for the second quarter of 2021 was RMB337.0 million (US$52.2 million), a 7.5% increase from the corresponding period in 2020.
    • Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2021 was 37.5%, compared with 42.0% for the corresponding period in 2020.
    • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2021 was RMB5.00 (US$0.77), down from RMB5.06 for the corresponding period in 2020.

Balance Sheet and Cash Flow

As of June 30, 2021, the Company had RMB2,686.4 million (US$416.1 million) in cash and cash equivalents, compared with RMB4,904.3 million as of March 31, 2021 and RMB4,170.7 million as of June 30, 2020.

Net cash inflow from the Company's operating activities during the second quarter of 2021 was RMB5.7 million (US$0.9 million), primarily due to cash inflow generated from operating profit and partially offset by annual payment of employee annual bonuses and annual tax filing in the second quarter.

Net cash outflow from the Company's investing activities during the second quarter of 2021 was RMB2,201.5 million (US$341.0 million), primarily due to cash payment for the acquisition of our new headquarter in the second quarter.

Net cash outflow from the Company's financing activities was RMB9.9 million (US$1.5 million) in the second quarter of 2021, primarily due to certain capital divestment and dividend distribution to certain of non-controlling interest shareholders.

2021 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2021 will be in the range of RMB1.2 billion to RMB1.3 billion. This estimate reflects management's current business outlook and is subject to change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's second quarter 2021 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details

Date/Time:

 

Tuesday, August 17, 2021 at 8:00 p.m., U.S. Eastern Time

Wednesday, August 18, 2021 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 2Q21 Earnings Conference Call

Participant Password:

7553238

A telephone replay will be available starting one hour after the end of the conference call until August 24, 2021 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10159207.

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

DISCUSSION OF NON-GAAP MEASURES 

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring share-based settlement expenses and net of tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

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

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

ABOUT NOAH HOLDINGS LIMITED

Noah Holdings Limited (NYSE: NOAH) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. In the first half of 2021, Noah distributed RMB52.1 billion (US$8.1 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB155.9 billion (US$24.1 billion) as of June 30, 2021.

Noah's wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,268 relationship managers in 81 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, United States and Singapore. The Company's wealth management business had 397,235 registered clients as of June 30, 2021. As a leading multi-asset manager in China, Gopher Asset Management manages private equity, real estate, public securities, multi-strategy and other investments denominated in RMB and other currencies. The Company also provides other businesses.

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

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the second quarter of 2021 ended June 30, 2021 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 RMB6.4566 to US$1.00, the effective noon buying rate for June 30, 2021 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 2021 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.

Contacts:

Noah Holdings Limited
Sonia Han, Melo Xi, Ryan Teng
Tel: +86-21-8035-8294
ir@noahgroup.com

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited 

Condensed Consolidated Balance Sheets

(unaudited)


As of


March 31,


June 30


June 30


2021


2021


2021


RMB'000


RMB'000


USD'000

Assets







Current assets:








Cash and cash equivalents

4,904,316


2,686,422


416,074



Restricted cash

9,995


10,067


1,559



Short-term investments

143,140


96,050


14,876



Accounts receivable, net

444,421


470,265


72,835



Loans receivable, net

407,595


515,194


79,793



Amounts due from related parties

715,396


643,972


99,739



Other current assets 

203,938


239,997


37,171



Total current assets 

6,828,801


4,661,967


722,047


Long-term investments, net

556,166


554,280


85,847


Investment in affiliates

1,268,909


1,258,829


194,968


Property and equipment, net

235,974


2,642,584


409,284


Operating lease right-of-use assets, net

268,395


256,597


39,742


Deferred tax assets

223,783


223,801


34,662


Other non-current assets 

214,807


199,232


30,858

Total Assets

9,596,835


9,797,290


1,517,408

Liabilities and Equity







Current liabilities:








Accrued payroll and welfare expenses 

844,021


491,716


76,157



Income tax payable

244,518


84,675


13,114



Deferred revenues

85,143


96,523


14,950



Contingent liabilities

532,612


460,315


71,294



Other current liabilities

448,127


554,383


85,863


Total current liabilities

2,154,421


1,687,612


261,378


Operating lease liabilities, non-current

180,308


169,167


26,201


Deferred tax liabilities

46,139


241,084


37,339


Other non-current liabilities

844


109,134


16,903


Total Liabilities 

2,381,712


2,206,997


341,821


Equity

7,215,123


7,590,293


1,175,587

Total Liabilities and Equity

9,596,835


9,797,290


1,517,408

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)


Three months ended 


June 30,


June 30,


June 30,


Change


2020


2021


2021



Revenues:

RMB'000


RMB'000


USD'000



Revenues from others:








One-time commissions

117,085


195,891


30,340


67.3%

Recurring service fees

152,253


218,988


33,917


43.8%

Performance-based income

57,206


46,468


7,197


(18.8%)

Other service fees

56,197


32,283


5,000


(42.6%)

Total revenues from others

382,741


493,630


76,454


29.0%

Revenues from funds Gopher
      manages:








One-time commissions

10,431


52,377


8,112


402.1%

Recurring service fees

324,174


282,333


43,728


(12.9%)

Performance-based income

33,766


76,101


11,787


125.4%

Total revenues from funds Gopher
     manages

368,371


410,811


63,627


11.5%

Total revenues

751,112


904,441


140,081


20.4%

Less: VAT related surcharges 

(3,674)


(5,052)


(782)


37.5%

Net revenues

747,438


899,389


139,299


20.3%

Operating costs and expenses:








Compensation and benefits








Relationship managers

(113,044)


(153,275)


(23,739)


35.6%

Others

(217,805)


(242,507)


(37,560)


11.3%

Total compensation and benefits

(330,849)


(395,782)


(61,299)


19.6%

Selling expenses

(62,622)


(99,463)


(15,405)


58.8%

General and administrative expenses

(68,502)


(77,892)


(12,064)


13.7%

Provision for credit losses

(1,897)


(2,112)


(327)


11.3%

Other operating expenses 

(20,715)


(28,082)


(4,349)


35.6%

Government grants 

56,651


39,300


6,087


(30.6%)

Total operating costs and expenses 

(427,934)


(564,031)


(87,357)


31.8%

Income from operations 

319,504


335,358


51,942


5.0%

Other income:








Interest income 

10,530


18,212


2,821


73.0%

Investment income 

4,711


3,487


540


(26.0%)

Settlement expenses

-


(19,190)


(2,972)


N.A.

Other income (expenses) 

4,298


(14,617)


(2,264)


N.A.

Total other income (expenses)

19,539


(12,108)


(1,875)


N.A.

Income before taxes and income from
     equity in affiliates

339,043


323,250


50,067


(4.7%)

Income tax expense

(77,810)


(68,720)


(10,643)


(11.7%)

Income from equity in affiliates

40,693


53,420


8,274


31.3%

Net income

301,926


307,950


47,698


2.0%

Less: net income attributable to non-
     controlling interests

2,285


2,424


375


6.1%

Net income attributable to Noah
      shareholders 

299,641


305,526


47,323


2.0%









Income per ADS, basic

4.86


4.56


0.71


(6.2%)

Income per ADS, diluted

4.84


4.53


0.70


(6.4%)

 

Margin analysis:








Operating margin

42.7%


37.3%


37.3%



Net margin

40.4%


34.2%


34.2%



 

Weighted average ADS equivalent[1]:








Basic

61,661,522


66,993,114


66,993,114



Diluted

61,921,913


67,449,200


67,449,200



ADS equivalent outstanding at end of
period

61,698,055


60,080,070


60,080,070




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

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)


Six months ended 


June 30,


June 30,


June 30,


Change


2020


2021


2021



Revenues:

RMB'000


RMB'000


USD'000



Revenues from others:








One-time commissions

324,270


474,595


73,505


46.4%

Recurring service fees

300,710


439,501


68,070


46.2%

Performance-based income

71,824


322,992


50,025


349.7%

Other service fees

122,805


55,996


8,673


(54.4%)

Total revenues from others

819,609


1,293,084


200,273


57.8%

Revenues from funds Gopher
      manages:








One-time commissions

15,180


98,523


15,259


549.0%

Recurring service fees

627,624


539,030


83,485


(14.1%)

Performance-based income

38,941


204,657


31,697


425.6%

Total revenues from funds
      Gopher manages

681,745


842,210


130,441


23.5%

Total revenues

1,501,354


2,135,294


330,714


42.2%

Less: VAT related surcharges 

(7,799)


(11,169)


(1,730)


43.2%

Net revenues

1,493,555


2,124,125


328,984


42.2%

Operating costs and expenses:








Compensation and benefits








Relationship managers

(283,096)


(360,147)


(55,780)


27.2%

Others

(412,592)


(617,760)


(95,679)


49.7%

Total compensation and
     benefits

(695,688)


(977,907)


(151,459)


40.6%

Selling expenses

(107,162)


(182,918)


(28,330)


70.7%

General and administrative
     expenses 

(132,187)


(158,177)


(24,498)


19.7%

Provision for credit losses

(4,706)


(5,519)


(855)


17.3%

Other operating expenses 

(53,332)


(55,170)


(8,545)


3.4%

Government grants 

75,286


93,314


14,452


23.9%

Total operating costs and
     expenses 

(917,789)


(1,286,377)


(199,235)


40.2%

Income from operations 

575,766


837,748


129,749


45.5%

Other income:








Interest income 

32,700


41,139


6,372


25.8%

Investment income 

22,277


37,848


5,862


69.9%

Settlement expenses

-


(19,190)


(2,972)


N.A.

Other income (expense)

5,156


(15,103)


(2,339)


N.A.

Total other income

60,133


44,694


6,923


(25.7%)

Income before taxes and
     income from equity in affiliates

635,899


882,442


136,672


38.8%

Income tax expense

(146,086)


(198,566)


(30,754)


35.9%

Income from equity in affiliates

55,769


76,933


11,915


37.9%

Net income

545,582


760,809


117,833


39.4%

Less: net income attributable to
     non-controlling interests

2,916


1,190


184


(59.2%)

Net income attributable to
     Noah shareholders 

542,666


759,619


117,649


40.0%









Income per ADS, basic

8.80


11.33


1.75


28.8%

Income per ADS, diluted

8.76


11.25


1.74


28.4%

 

Margin analysis:








Operating margin

38.6%


39.4%


39.4%



Net margin

36.5%


35.8%


35.8%



 

Weighted average ADS
     equivalent[1]:








Basic

61,640,688


67,042,174


67,042,174



Diluted

61,949,755


67,497,514


67,497,514



ADS equivalent outstanding at
     end of period

61,698,055


 

60,080,070


 

60,080,070




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

 

 

Noah Holdings Limited 

Condensed Comprehensive Income Statements 

(unaudited)


Three months ended 




June 30,


June 30,


June 30,


Change


2020


2021


2021




RMB'000


RMB'000


USD'000



Net income

301,926


307,950


47,698


2.0%

Other comprehensive income, net of tax:








Foreign currency translation adjustments

(7,160)


(22,809)


(3,533)


218.6%

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

775


134


21


(82.7%)

Comprehensive income

295,541


285,275


44,186


(3.5%)

Less: Comprehensive income attributable
to non-controlling interests

2,326


2,411


373


3.7%

Comprehensive income attributable to
     Noah
shareholders

293,215


282,864


43,813


(3.5%)



Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)


Six months ended 




June 30,


June 30,


June 30,


Change


2020


2021


2021




RMB'000


RMB'000


USD'000



Net income

545,582


760,809


117,833


39.4%

Other comprehensive income, net of tax:








Foreign currency translation adjustments

30,159


(14,400)


(2,230)


N.A.

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

771


134


21


(82.6%)

Comprehensive income

576,512


746,543


115,624


29.5%

Less: Comprehensive income attributable
to non-controlling interests

2,952


1,210


187


(59.0%)

Comprehensive income attributable to
     Noah
shareholders

573,560


745,333


115,437


29.9%

 

 

Noah Holdings Limited

Supplemental Information 

(unaudited) 


As of 




June 30
2020


June 30
2021


Change







Number of registered clients 

332,157


397,235


19.6%

Number of relationship managers 

1,196


1,268


6.0%

Number of cities in mainland China under coverage 

78


81


3.8%








Three months ended 




June 30,
2020


June 30
2021


Change


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

Number of active clients

3,367


4,676


38.9%

Number of active clients including mutual fund clients

14,703


20,290


38.0%

Transaction value: 






Private equity products 

2,551


6,472


153.7%

Private secondary products

7,162


7,708


7.6%

Mutual fund products 

10,809


9,375


(13.3%)

Other products

921


1,446


57.0%

Total transaction value

21,443


25,001


16.6%

 

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 










Three months ended June 30, 2021


Wealth 


Asset 






Management


Management


Other




Business


Business


Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








     Revenues from others








     One-time commissions

195,891


-


-


195,891

     Recurring service fees

218,988


-


-


218,988

     Performance-based income

46,468


-


-


46,468

     Other service fees

14,665


-


17,618


32,283

     Total revenues from others

476,012


-


17,618


493,630

Revenues from funds Gopher
       manages








One-time commissions

20,705


31,672


-


52,377

Recurring service fees

123,031


159,302


-


282,333

Performance-based income

9,507


66,594


-


76,101

Total revenues from funds
       Gopher manages

153,243


257,568


-


410,811

Total revenues

629,255


257,568


17,618


904,441

Less: VAT related surcharges 

(3,665)


(1,299)


(88)


(5,052)

Net revenues

625,590


256,269


17,530


899,389

Operating costs and expenses:








     Compensation and benefits








         Relationship managers

(149,874)


(3,401)


-


(153,275)

         Others

(154,463)


(74,017)


(14,027)


(242,507)

         Total compensation and
            benefits

(304,337)


(77,418)


(14,027)


(395,782)

         Selling expenses

(82,726)


(10,496)


(6,241)


(99,463)

         General and administrative
            expenses 

(54,091)


(16,676)


(7,125)


(77,892)

         Provision for credit losses

-


-


(2,112)


(2,112)

         Other operating expenses

(12,758)


(1,424)


(13,900)


(28,082)

         Government grants 

4,997


22,579


11,724


39,300

Total operating costs and
           expenses 

(448,915)


(83,435)


(31,681)


 

(564,031)

Income (loss) from operations

176,675


172,834


(14,151)


335,358

 

 

Noah Holdings Limited

Segment Condensed Income Statements

 (unaudited)

         Three months ended June 30, 2020


Wealth
Management

 Business


Asset
Management

Business


Other
Businesses


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 manages








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 Gopher
        manages 

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 benefits

(242,282)


(70,395)


(18,172)


(330,849)

Selling expenses

(49,302)


(8,407)


(4,913)


(62,622)

General and administrative
   expenses

(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 expenses

(346,247)


(80,861)


(826)


(427,934)

Income from operations

196,563


100,781


22,160


319,504

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)



Three months ended June 30, 2021


Wealth 
Management
Business


Asset 
Management
Business


Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

450,226


209,183


17,618


677,027

Hong Kong

143,309


38,942


-


182,251

Others

35,720


9,443


-


45,163

Total revenues

629,255


257,568


17,618


904,441






Three months ended June 30, 2020


Wealth 
Management
Business


Asset 
Management
Business


Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

392,284


150,489


23,407


566,180

Hong Kong

121,176


28,052


-


149,228

Others

31,910


3,794


-


35,704

Total revenues

545,370


182,335


23,407


751,112

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

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

(unaudited) 



Three months ended 





June 30


June 30


Change 



2020


2021





RMB'000


RMB'000











Net income attributable to Noah shareholders

299,641


305,526


2.0%


Adjustment for share-based compensation

18,106


16,034


(11.4%)


Add: settlement expense

-


19,190


N.A.


Less: tax effect of adjustments

4,193


3,720


(11.3%)


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

313,554


337,030


7.5%









Net margin attributable to Noah shareholders

40.1%


34.0%




Non-GAAP net margin attributable to Noah shareholders

42.0%


37.5%











Net income attributable to Noah shareholders per ADS,
     diluted

4.84


4.53


(6.4%)


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

5.06


5.00


(1.2%)




Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

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

(unaudited) 



Six months ended 





June 30


June 30


Change 



2020


2021





RMB'000


RMB'000











Net income attributable to Noah shareholders

542,666


759,619


40.0%


Adjustment for share-based compensation

36,397


26,178


(28.1%)


Add: settlement expense

-


19,190


N.A.


Less: tax effect of adjustments

8,428


6,074


(27.9%)


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

570,635


798,913


40.0%









Net margin attributable to Noah shareholders

36.3%


35.8%




Non-GAAP net margin attributable to Noah shareholders

38.2%


37.6%











Net income attributable to Noah shareholders per ADS,
     diluted

8.76


11.25


28.4%


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

9.21


11.84


28.6%


 

Cision View original content:https://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-second-quarter-of-2021-301356627.html

SOURCE Noah Holdings Limited


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