NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2022

May 11, 2022

SHANGHAI, May 11, 2022 /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 first quarter of 2022.

FIRST QUARTER 2022 FINANCIAL HIGHLIGHTS

  • Net revenues for the first quarter of 2022 were RMB795.7 million (US$125.5 million), a 35.0% decrease from the corresponding period in 2021, and a 36.9% decrease from the fourth quarter of 2021, mainly due to decreases in one-time commissions and performance-based incomes.

(RMB millions,

except percentages)

Q1 2021

   

Q1 2022

   

YoY Change

Wealth management

946.4

   

578.5

   

(38.9%)

Asset management

270.0

   

200.6

   

(25.7%)

Other businesses

8.3

   

16.6

   

101.1%

Total net revenues

1,224.7

   

795.7

   

(35.0%)

  • Income from operations for the first quarter of 2022 was RMB313.8 million (US$49.5 million), a 37.5% decrease from the corresponding period in 2021, due to the decreased net revenues for the first quarter of 2022, but a 137.2% increase from the fourth quarter of 2021, due to less expenses and provision of credit losses incurred, which is partially offset by a decrease in net revenues.

(RMB millions,

except percentages)

Q1 2021

   

Q1 2022

   

YoY Change

Wealth management

418.1

   

235.4

   

(43.7%)

Asset management

114.5

   

93.9

   

(18.0%)

Other businesses

(30.2)

   

(15.5)

   

(48.7%)

Total income from operations

502.4

   

313.8

   

(37.5%)

  • Net income attributable to Noah shareholders for the first quarter of 2022 was RMB305.2 million (US$48.2 million), a 32.8% decrease from the corresponding period in 2021, but an 8.5% increase from the fourth quarter of 2021.
  • Non-GAAP[1] net income attributable to Noah shareholders for the first quarter of 2022 was RMB313.5 million (US$49.5 million), a 32.1% decrease from the corresponding period in 2021, but an 8.2% increase from the fourth quarter of 2021.

[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation 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 2022 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. We primarily distribute private equity, private secondary, mutual funds and other products denominated in RMB and other currencies.

  • Total number of registered clients as of March 31, 2022 was 415,082, an 8.1% increase from March 31, 2021, and a 0.8% increase from December 31, 2021.
  • Total number of active clients[2], which excluded mutual fund-only clients during the first quarter of 2022 was 2,818, a 55.3% decrease from the first quarter of 2021, and a 21.2% decrease from the fourth quarter of 2021. Including mutual fund-only clients, the number of clients who transacted with us during the first quarter of 2022 was 14,970, a 46.2% decrease from the first quarter of 2021, and a 14.2% decrease from the fourth quarter of 2021. The decreases were mainly related to the adverse performance of secondary market in the first quarter.
  • Aggregate value of investment products distributed during the first quarter of 2022 was RMB15.0 billion (US$2.4 billion), a 44.6% decrease from the first quarter of 2021, primarily due to a 68.7%, 33.2% and 17.8% decrease of private secondary products, private equity products and mutual fund products, respectively. The aggregate value decreased by 28.7% compared with the fourth quarter of 2021, due to a 39.5% and 30.3% decrease of private secondary products and mutual fund products, respectively and partially offset by a 4.6% increase of private equity products.

Product type

Three months ended March 31,

 

2021

 

2022

 

(RMB in billions, except percentages)

Mutual fund products

8.6

 

31.9%

 

7.1

 

47.4%

Private secondary products 

12.9

 

47.5%

 

4.0

 

26.9%

Private equity products

4.8

 

17.6%

 

3.2

 

21.2%

Other products[3]

0.8

 

3.0%

 

0.7

 

4.5%

All products

27.1

 

100.0%

 

15.0

 

100.0%

  • Coverage network in mainland China covered 83 cities as of March 31, 2022, compared with 82 cities as of March 31, 2021 and 84 cities as of December 31, 2021.
  • Number of relationship managers was 1,281 as of March 31, 2022, a 2.8% increase from March 31, 2021, but a 2.7% decrease from December 31, 2021.

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

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

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, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. 

  • Total assets under management as of March 31, 2022 remained relatively stable in the amount of RMB156.1 billion (US$24.6 billion), a 1.3% increase from March 31, 2021.

Investment type

As of 
December 31
2021

 


Growth

 

Allocation/ 
Redemption

 

As of
March 31
2022

 

(RMB billions, except percentages)

Private equity

130.9

 

83.9%

 

4.8

 

3.0

 

132.7

 

85.0%

Public securities[4]

11.2

 

7.2%

 

0.1

 

0.9

 

10.4

 

6.6%

Real estate

6.6

 

4.3%

 

0.6

 

1.0

 

6.2

 

4.1%

Multi-strategies

5.9

 

3.8%

 

-

 

0.5

 

5.4

 

3.4%

Others

1.4

 

0.8%

 

-

 

-

 

1.4

 

0.9%

All Investments

156.0

 

100.0%

 

5.5

 

5.4

 

156.1

 

100.0%

 

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

Other Businesses

Our other businesses segment has been transitioned to "Noah Digital International", and to provide more comprehensive services and investment products to our clients.

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "In the first quarter of 2022, I am happy to see the number of our core clients, diamond and black card, continued to grow at 7.3% and 30.6% year-on-year respectively amid volatile market environment, showing the effectiveness of our client-centric reform. Despite weaker transaction value in mutual funds and private secondary products, which is in line with the market trend, and thanks to the sophistication of our clients and our investor education efforts, we allocated 4.6% more long-duration private equity products in the quarter compared with the fourth quarter of 2021. With the successful implementation of our new compensation scheme in 2021, as well as strict cost control and strategic investment, our operating margin restored to nearly 40% in the first quarter. We are mindful of the global macro outlook and the impact of the recent COVID-19 lockdowns in China, and recommend our clients to adopt a Protection before Growth strategy in 2022, by reevaluating and proactively rebalancing the asset allocation to construct a well-positioned portfolio that is safe and effective. We remain confident in the resilience of Chinese economy, the growth of the wealth management and asset management industries here, as well as the support from our clients, and hope to meet the full-year non-GAAP net income guidance that we published in the last earnings release."

FIRST QUARTER 2022 FINANCIAL RESULTS

Net Revenues

Net revenues for the first quarter of 2022 were RMB795.7 million (US$125.5 million), a 35.0% decrease from the corresponding period in 2021, primarily due to decreases in one-time commissions and performance-based income, partially offset by increases in recurring service fees and other service fees.

- Wealth Management Business

  • Net revenues from one-time commissions for the first quarter of 2022 were RMB92.6 million (US$14.6 million), a 68.4% decrease from the corresponding period in 2021, primarily due to a 68.7% decrease in transaction value of private secondary products that we distributed.
  • Net revenues from recurring service fees for the first quarter of 2022 were RMB310.8 million (US$49.0 million), a 0.9% decrease from the corresponding period in 2021.
  • Net revenues from performance-based income for the first quarter of 2022 were RMB156.0 million (US$24.6 million), compared with RMB325.6 million in the corresponding period of 2021. The decrease was primarily due to less performance-based income that were shared from private secondary products providers.
  • Net revenues from other service fees for the first quarter of 2022 were RMB19.0 million (US$3.0 million), compared with RMB13.9 million in the corresponding period in 2021, primarily due to more value-added services we offered to our high net worth clients.

- Asset Management Business

  • Net revenues from one-time commissions for the first quarter of 2022 was RMB9.2 million (US$1.5 million), a 69.1% decrease from the corresponding period in 2021 due to less private equity products sold.
  • Net revenues from recurring service fees for the first quarter of 2022 were RMB173.3 million (US$27.3 million), a 7.5% increase from the corresponding period in 2021 due to increase in assets under management.
  • Net revenues from performance-based income for the first quarter of 2022 were RMB18.1 million (US$2.9 million), compared with RMB77.5 million in the corresponding period of 2021. The decrease was primarily due to less performance-based income realized from private equity products.

- Other Businesses

  • Net revenues for the first quarter of 2022 were RMB16.6 million (US$2.6 million), compared with RMB8.3 million from the corresponding period in 2021.

Operating Costs and Expenses

Operating costs and expenses for the first quarter of 2022 were RMB481.9 million (US$76.0 million), a 33.3% decrease from the corresponding period in 2021. Operating costs and expenses primarily consisted of compensation and benefits of RMB357.9 million (US$56.5 million), selling expenses of RMB59.9 million (US$9.5 million), general and administrative expenses of RMB58.2 million (US$9.2 million), reversal of provision of credit losses of RMB9.2 million (US$1.5 million) and other operating expenses of RMB29.6 million (US$4.7 million).

  • Operating costs and expenses for the wealth management business for the first quarter of 2022 were RMB343.1 million (US$54.1 million), a 35.1% decrease from the corresponding period in 2021, primarily due to less relationship manager compensation relating to transaction value of investment products distributed and less selling, general and administrative expenses incurred.
  • Operating costs and expenses for the asset management business for the first quarter of 2022 were RMB106.7 million (US$16.8 million), a 31.4% decrease from the corresponding period in 2021, primarily due to less performance fee compensation as well as less selling, general and administrative expenses incurred.
  • Operating costs and expenses for other businesses for the first quarter of 2022 were RMB32.1 million (US$5.1 million), a 16.6% decrease from the corresponding period in 2021, primarily due to less compensation and benefits.

Operating Margin

Operating margin for the first quarter of 2022 was 39.4%, compared with 41.0% for the corresponding period in 2021.

  • Operating margin for the wealth management business for the first quarter of 2022 was 40.7%, compared with 44.2% for the corresponding period in 2021.
  • Operating margin for the asset management business for the first quarter of 2022 was 46.8%, compared with 42.4% for the corresponding period in 2021.
  • Loss from operation for the other businesses for the first quarter of 2022 was RMB15.5 million (US$2.4 million), compared with an operating loss of RMB30.2 million for the corresponding period in 2021, due to more revenues generated in the first quarter of 2022.

Investment Income

Investment income for the first quarter of 2022 was RMB25.4 million (US$4.0 million), compared with RMB34.4 million for the corresponding period in 2021.

Income Tax Expenses

Income tax expenses for the first quarter of 2022 were RMB77.3 million (US$12.2 million), a 40.4% decrease from the corresponding period in 2021. The decrease was primarily due to less taxable income. 

Net Income

- Net Income

  • Net income for the first quarter of 2022 was RMB304.2 million (US$48.0 million), a 32.8% decrease from the corresponding period in 2021.
  • Net margin for the first quarter of 2022 was 38.2%, up from 37.0% for the corresponding period in 2021.
  • Net income attributable to Noah shareholders for the first quarter of 2022 was RMB305.2 million (US$48.2 million), a 32.8% decrease from the corresponding period in 2021.
  • Net margin attributable to Noah shareholders for the first quarter of 2022 was 38.4%, up from 37.1% for the corresponding period in 2021.
  • Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2022 was RMB4.54 (US$0.72) and RMB4.52 (US$0.71), respectively, compared with RMB6.77 and RMB6.72 for the corresponding period in 2021, respectively.

- Non-GAAP Net Income Attributable to Noah Shareholders

  • Non-GAAP net income attributable to Noah shareholders for the first quarter of 2022 was RMB313.5 million (US$49.5 million), a 32.1% decrease from the corresponding period in 2021, but an 8.6% increase from the fourth quarter of 2021.
  • Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2022 was 39.4%, up from 37.7% for the corresponding period in 2021.
  • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2022 was RMB4.65 (US$0.73), down from RMB6.84 for the corresponding period in 2021.

Balance Sheet and Cash Flow

As of March 31, 2022, the Company had RMB3,899.9 million (US$615.2 million) in cash and cash equivalents, compared with RMB3,404.6 million as of December 31, 2021 and RMB4,904.3 million as of March 31, 2021, respectively.

Net cash inflow from the Company's operating activities during the first quarter of 2022 was RMB501.2 million (US$79.1 million), primarily due to operating cash inflow generated by net income and collection of accounts receivables.

Net cash inflow from the Company's investing activities during the first quarter of 2022 was RMB9.3 million (US$1.5 million), primarily due to the collection of loans originated.

Net cash outflow from the Company's financing activities was RMB12.1 million (US$1.9 million) in the first quarter of 2022, primarily due to payment of assumed liability resulting from certain asset acquisition.

2022 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2022 will be in the range of RMB1.45 billion to RMB1.55 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 first quarter of 2022 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

 

Conference call details

Date/Time

 

Wednesday, May 11, 2022 at 8:00 p.m., U.S. Eastern Time

Thursday, May 12, 2022 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 1Q22 Earnings Conference Call

Participant Password

8316018

A telephone replay will be available starting one hour after the end of the conference call until May 18, 2022 at +1-877-344-7529 (US Toll Free) or 1-412-317-0088 (International Toll). The replay access code is 9378127.

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

DISCUSSION ON 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 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 quarter of 2022, Noah distributed RMB15.0 billion (US$2.4 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB156.1 billion (US$24.6 billion) as of March 31, 2022.

Noah's wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,281 relationship managers across 83 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, New York, Silicon Valley and Singapore. The Company's wealth management business had 415,082 registered clients as of March 31, 2022. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in Renminbi and other currencies. Noah 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 first quarter of 2022 ended March 31, 2022 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 RMB6.3393 to US$1.00, the effective noon buying rate for March 31, 2022 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 2022 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; investment risks associated with investment products distributed to Noah's investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

____________________________________

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

 

 

Noah Holdings Limited 

Condensed Consolidated Balance Sheets

(unaudited)

 
 

As of

 

December 31,

 

March 31

 

March 31

 

2021

 

2022

 

2022

 

RMB'000

 

RMB'000

 

USD'000

Assets

         
 

Current assets:

         
   

Cash and cash equivalents

3,404,603

 

3,899,892

 

615,193

   

Restricted cash

510

 

512

 

81

   

Short-term investments

92,803

 

64,347

 

10,150

   

Accounts receivable, net

808,029

 

396,485

 

62,544

   

Loans receivable, net

595,766

 

578,355

 

91,233

   

Amounts due from related parties

451,389

 

532,533

 

84,005

   

Other current assets 

163,710

 

170,813

 

26,945

   

Total current assets 

5,516,810

 

5,642,937

 

890,151

 

Long-term investments, net

668,572

 

699,174

 

110,292

 

Investment in affiliates

1,402,083

 

1,430,346

 

225,632

 

Property and equipment, net

2,580,935

 

2,544,521

 

401,388

 

Operating lease right-of-use assets, net

223,652

 

212,993

 

33,599

 

Deferred tax assets

335,905

 

335,911

 

52,989

 

Other non-current assets 

161,832

 

162,206

 

25,587

Total Assets

10,889,789

 

11,028,088

 

1,739,638

           

Liabilities and Equity

         
 

Current liabilities:

         
   

Accrued payroll and welfare expenses 

946,547

 

880,353

 

138,872

   

Income tax payable

190,260

 

236,915

 

37,372

   

Deferred revenues

63,631

 

79,970

 

12,615

   

Other current liabilities

649,255

 

518,214

 

81,746

   

Contingent liabilities

433,345

 

431,080

 

68,001

   

Total current liabilities

2,283,038

 

2,146,532

 

338,606

 

Operating lease liabilities, non-current

130,956

 

120,790

 

19,054

 

Deferred tax liabilities

234,134

 

232,848

 

36,731

 

Other non-current liabilities

100,020

 

83,931

 

13,240

 

Total Liabilities 

2,748,148

 

2,584,101

 

407,631

 

Equity

8,141,641

 

8,443,987

 

1,332,007

Total Liabilities and Equity

10,889,789

 

11,028,088

 

1,739,638

 

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)

 
 

Three months ended 

 

March 31,

 

March 31,

 

March 31,

 

Change

 

2021

 

2022

 

2022

   

Revenues:

RMB'000

 

RMB'000

 

USD'000

   

Revenues from others:

             

One-time commissions

278,704

 

81,154

 

12,802

 

(70.9%)

Recurring service fees

220,513

 

193,379

 

30,505

 

(12.3%)

Performance-based income

276,524

 

142,911

 

22,544

 

(48.3%)

Other service fees

23,713

 

38,760

 

6,114

 

63.5%

Total revenues from others

799,454

 

456,204

 

71,965

 

(42.9%)

Revenues from funds Gopher
manages:

             

One-time commissions

46,146

 

21,155

 

3,337

 

(54.2%)

Recurring service fees

256,697

 

293,052

 

46,228

 

14.2%

Performance-based income

128,556

 

32,067

 

5,058

 

(75.1%)

Total revenues from funds Gopher
manages

431,399

 

346,274

 

54,623

 

(19.7%)

Total revenues

1,230,853

 

802,478

 

126,588

 

(34.8%)

Less: VAT related surcharges 

(6,117)

 

(6,786)

 

(1,070)

 

10.9%

Net revenues

1,224,736

 

795,692

 

125,518

 

(35.0%)

Operating costs and expenses:

             

Compensation and benefits

             

Relationship manager
compensation

(206,872)

 

(109,995)

 

(17,351)

 

(46.8%)

Others

(375,253)

 

(247,910)

 

(39,107)

 

(33.9%)

Total compensation and benefits

(582,125)

 

(357,905)

 

(56,458)

 

(38.5%)

Selling expenses

(83,455)

 

(59,906)

 

(9,450)

 

(28.2%)

General and administrative
   expenses 

(80,285)

 

(58,207)

 

(9,182)

 

(27.5%)

(Provision for) reversal of credit
    losses

(3,407)

 

9,198

 

1,451

 

N.A.

Other operating expenses 

(27,088)

 

(29,635)

 

(4,675)

 

9.4%

Government subsidies 

54,014

 

14,558

 

2,296

 

(73.0%)

Total operating costs and
   expenses 

(722,346)

 

(481,897)

 

(76,018)

 

(33.3%)

Income from operations 

502,390

 

313,795

 

49,500

 

(37.5%)

Other income:

             

Interest income 

22,927

 

12,637

 

1,993

 

(44.9%)

Investment income 

34,361

 

25,373

 

4,002

 

(26.2%)

Other expense

(486)

 

(278)

 

(44)

 

(42.8%)

Total other income

56,802

 

37,732

 

5,951

 

(33.6%)

Income before taxes and income
   from equity in affiliates

559,192

 

351,527

 

55,451

 

(37.1%)

Income tax expense

(129,846)

 

(77,336)

 

(12,199)

 

(40.4%)

Income from equity in affiliates

23,513

 

30,020

 

4,736

 

27.7%

Net income

452,859

 

304,211

 

47,988

 

(32.8%)

Less: net loss attributable to non-
   controlling interests

(1,234)

 

 

(1,031)

 

 

(163)

 

 

(16.5%)

Net income attributable to Noah
   shareholders 

454,093

 

305,242

 

48,151

 

(32.8%)

               

Income per ADS, basic

6.77

 

4.54

 

0.72

 

(32.9%)

Income per ADS, diluted

6.72

 

4.52

 

0.71

 

(32.7%)

               

Margin analysis:

             

Operating margin

41.0%

 

39.4%

 

39.4%

   

Net margin

37.0%

 

38.2%

 

38.2%

   

Weighted average ADS
equivalent[1]:

             

Basic

67,091,780

 

67,235,270

 

67,235,270

   

Diluted

67,572,038

 

67,480,826

 

67,480,826

   

ADS equivalent outstanding at
   end of period

 

59,976,690

 

 

60,173,494

 

 

60,173,494

   
               
 

 

[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,
2021

 

March 31,
2022

 

March 31,
2022

 

Change

 

RMB'000

 

RMB'000

 

USD'000

   

Net income

452,859

 

304,211

 

47,988

 

(32.8%)

Other comprehensive income, net of tax:

             

Foreign currency translation
adjustments

8,409

 

(9,148)

 

(1,443)

 

N.A.

Comprehensive income

461,268

 

295,063

 

46,545

 

(36.0%)

Less: Comprehensive loss attributable
          to non-controlling interests

(1,201)

 

(882)

 

(139)

 

(26.6%)

Comprehensive income attributable to
          Noah shareholders

462,469

 

295,945

 

46,684

 

 

(36.0%)

               

 

 

 

Noah Holdings Limited

Supplemental Information 

(unaudited) 

 
 

As of 

   
 

March 31
2021

 

March 31
2022

 

Change

           

Number of registered clients 

384,021

 

415,082

 

8.1%

Number of relationship managers 

1,246

 

1,281

 

2.8%

Number of cities under coverage in
    mainland China

82

 

83

 

1.2%

           
           
           
           
           
 

Three months ended 

   
 

March 31,
2021

 

March 31
2022

 

Change

 

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

Number of active clients 

6,299

 

2,818

 

(55.3%)

Number of active clients including mutual
   fund-only clients

27,846

 

14,970

 

(46.2%)

Transaction value: 

         

Private equity products 

4,763

 

3,180

 

(33.2%)

Private secondary products

12,864

 

4,027

 

(68.7%)

Mutual fund products 

8,645

 

7,110

 

(17.8%)

Other products

820

 

679

 

(17.2%)

Total transaction value

27,092

 

14,996

 

(44.6%)

 

 

 

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 

 
 

Three months ended March 31, 2022

 

Wealth 
Management
Business

 

Asset 
Management
Business

 

Other
Businesses

 

Total

 

RMB'000

 

RMB'000

 

RMB'000

 

RMB'000

               

Revenues:

             

Revenues from others:

             

One-time commissions

81,154

 

-

 

-

 

81,154

Recurring service fees

193,379

 

-

 

-

 

193,379

Performance-based income

142,911

 

-

 

-

 

142,911

Other service fees

19,113

 

-

 

19,647

 

38,760

Total revenues from others

436,557

 

-

 

19,647

 

456,204

Revenues from funds Gopher
manages:

             

One-time commissions

11,859

 

9,296

 

-

 

21,155

Recurring service fees

118,871

 

174,181

 

-

 

293,052

Performance-based income

13,868

 

18,199

 

-

 

32,067

Total revenues from funds Gopher
    manages

 

144,598

 

 

201,676

 

-

 

 

346,274

Total revenues

581,155

 

201,676

 

19,647

 

802,478

Less: VAT related surcharges 

(2,711)

 

(1,039)

 

(3,036)

 

(6,786)

Net revenues

578,444

 

200,637

 

16,611

 

795,692

Operating costs and expenses:

             

Compensation and benefits

             

Relationship manager
compensation

 

(99,688)

 

 

(10,307)

 

 

-

 

 

(109,995)

Other compensations

(148,135)

 

(89,517)

 

(10,258)

 

(247,910)

Total compensation and benefits

(247,823)

 

(99,824)

 

(10,258)

 

(357,905)

Selling expenses

(52,043)

 

(4,234)

 

(3,629)

 

(59,906)

General and administrative
    expenses 

 

(42,754)

 

 

(10,029)

 

 

(5,424)

 

 

(58,207)

(Provision for) reversal of credit
    losses

 

(603)

 

 

(227)

 

 

10,028

 

 

9,198

Other operating expenses

(5,516)

 

(1,270)

 

(22,849)

 

(29,635)

Government subsidies 

5,639

 

8,885

 

34

 

14,558

Total operating costs and expenses 

(343,100)

 

(106,699)

 

(32,098)

 

(481,897)

Income (loss) from operations

235,344

 

93,938

 

(15,487)

 

313,795

 

 

 

Noah Holdings Limited

Segment Condensed Income Statements

 (unaudited)

 

         Three months ended March 31, 2021

 

Wealth Management

 Business

 

Asset Management

Business

 

Other Businesses

 

Total

 

RMB'000

 

RMB'000

 

RMB'000

 

RMB'000

               

Revenues:

             

Revenues from others:

             

One-time commissions

278,463

 

241

 

-

 

278,704

Recurring service fees

219,319

 

1,194

 

-

 

220,513

Performance-based income

276,524

 

-

 

-

 

276,524

Other service fees

14,017

 

1,390

 

8,306

 

23,713

Total revenues from others

788,323

 

2,825

 

8,306

 

799,454

Revenues from funds Gopher
   manages:

             

One-time commissions

16,270

 

29,876

 

-

 

46,146

Recurring service fees

95,971

 

160,726

 

-

 

256,697

Performance-based income

50,726

 

77,830

 

-

 

128,556

Total revenues from funds Gopher
    manages

162,967

 

268,432

 

-

 

431,399

Total revenues

951,290

 

271,257

 

8,306

 

1,230,853

Less: VAT related surcharges

(4,838)

 

(1,229)

 

(50)

 

(6,117)

Net revenues

946,452

 

270,028

 

8,256

 

1,224,736

Operating costs and expenses:

             

Compensation and benefits

             

Relationship manager
compensation

 

(206,790)

 

 

(82)

 

 

-

 

 

(206,872)

Other compensations

(215,289)

 

(138,854)

 

(21,110)

 

(375,253)

Total compensation and benefits

(422,079)

 

(138,936)

 

(21,110)

 

(582,125)

Selling expenses

(66,827)

 

(12,001)

 

(4,627)

 

(83,455)

General and administrative expenses

 

(55,924)

 

 

(18,094)

 

 

(6,267)

 

 

(80,285)

Provision for credit losses

-

 

-

 

(3,407)

 

(3,407)

Other operating expenses

(22,083)

 

(1,805)

 

(3,200)

 

(27,088)

Government subsidies

38,596

 

15,283

 

135

 

54,014

Total operating costs and expenses

(528,317)

 

(155,553)

 

(38,476)

 

(722,346)

Income (loss) from operations

418,135

 

114,475

 

(30,220)

 

502,390

 

 

 

 

Noah Holdings Limited

Supplement Revenue Information for Segment

(unaudited)

   
 

Three months ended March 31, 2022

 

Wealth 
Management
Business

 

Asset 
Management
Business

 

Other
Businesses

 

Total

 

RMB'000

 

RMB'000

 

RMB'000

 

RMB'000

               

Revenues:

             

Mainland China

425,237

 

166,774

 

19,647

 

611,658

Hong Kong

90,431

 

11,991

 

-

 

102,422

Others

65,487

 

22,911

 

-

 

88,398

Total revenues

581,155

 

201,676

 

19,647

 

802,478

   
   
 

Three months ended March 31, 2021

 

Wealth 
Management
Business

 

Asset 
Management
Business

 

Other
Businesses

 

Total

 

RMB'000

 

RMB'000

 

RMB'000

 

RMB'000

               

Revenues:

             

Mainland China

697,471

 

187,621

 

8,306

 

893,398

Hong Kong

230,621

 

76,431

 

-

 

307,052

Others

23,198

 

7,205

 

-

 

30,403

Total revenues

951,290

 

271,257

 

8,306

 

1,230,853

 

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

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

(unaudited) [5]

 
 

Three months ended 

     
 

March 31

 

March 31

 

Change 

 
 

2021

 

2022

     
 

RMB'000

 

RMB'000

     
             

Net income attributable to Noah shareholders

454,093

 

305,242

 

(32.8%)

 

Adjustment for share-based compensation

10,144

 

10,846

 

6.9%

 

Less: Tax effect of adjustments

2,354

 

2,607

 

10.7%

 

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

461,883

 

313,481

 

(32.1%)

 
             

Net margin attributable to Noah shareholders

37.1%

 

38.4%

     

Non-GAAP net margin attributable to Noah
   shareholders

37.7%

 

 

39.4%

     
             

Net income attributable to Noah shareholders per
   ADS, diluted

6.72

 

 

4.52

 

 

(32.7%)

 

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

6.84

 

 

4.65

 

 

(32.0%)

 
             
 

[5]   Noah's Non-GAAP financial measures reflect the respective most directly comparable GAAP financial measures excluding the effects of all forms of share-based compensation and net of relevant tax impact, if any.

 

Cision View original content:https://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-first-quarter-of-2022-301544807.html

SOURCE Noah Holdings Limited

CONTACTS: Noah Holdings Limited, Sonia Han, Tel: +86-21-8035-9221, ir@noahgroup.com


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