Noah Holdings Limited Announces Unaudited Financial Results For The Fourth Quarter 2022 and Audited Financial Results For Full Year 2022

Mar 27, 2023

SHANGHAI, March 27, 2023 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), 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 fourth quarter of 2022 and the audited financial results for the full year ended December 31, 2022.

FOURTH QUARTER 2022 FINANCIAL HIGHLIGHTS

  • Net revenues for the fourth quarter of 2022 were RMB882.1 million (US$127.9 million), a 30.0% decrease from the corresponding period in 2021, mainly due to 1) decreases in one-time commissions, as less insurance products distributed compared with last year and 2) less performance based income generated from public securities products and offshore private equity products amid market volatilities. Net revenues increased by 28.9% compared with the third quarter of 2022, mainly due to an increase in distribution of insurance products and performance-based income.

(RMB millions,

except percentages)

Q4 2021

 

Q4 2022

 

YoY Change

Wealth management

969.3

 

646.9

 

(33.3 %)

Asset management

273.8

 

223.2

 

(18.5 %)

Other businesses

17.0

 

12.0

 

(29.2 %)

Total net revenues

1,260.1

 

882.1

 

(30.0 %)

  • Income from operations for the fourth quarter of 2022 was RMB219.7 million (US$31.9 million), a 66.1% increase from the corresponding period in 2021, as we recorded RMB85.6 million credit loss for our other business in the fourth quarter of 2021; income from operations decreased by 5.2% compared with the third quarter of 2022, primarily due to an increase in selling expenses and provision for credit losses.

(RMB millions,

except percentages)

Q4 2021

 

Q4 2022

 

YoY Change

Wealth management

183.6

 

179.1

 

(2.5 %)

Asset management

80.8

 

93.5

 

15.8 %

Other businesses

(132.1)

 

(52.9)

 

(60.0 %)

Total income from operations

132.3

 

219.7

 

66.1 %

  • Net income attributable to Noah shareholders for the fourth quarter of 2022 was RMB139.9 million (US$20.3 million), a 50.3% decrease from the corresponding period in 2021, due to a 30.0% decrease in net revenues and a 23.3% decrease from the third quarter of 2022, due to a provision of contingent litigation expenses related to the first-instance ruling disclosed in December 12, 2022.
  • Non-GAAP[1] net income attributable to Noah shareholders for the fourth quarter of 2022 was RMB149.2 million (US$21.6 million), a 48.5% decrease from the corresponding period in 2021, and a 21.9% decrease from the third quarter of 2022.

FULL YEAR 2022 FINANCIAL HIGHLIGHTS

  • Net revenues in the full year 2022 was RMB3,100.4 million (US$449.5 million), a 27.8% decrease from the full year 2021, mainly due to decreases in one-time commissions and performance-based income.

(RMB millions,

except percentages)

FY  2021

 

FY  2022

 

YoY Change

Wealth management

3,194.9

 

2,200.0

 

(31.1 %)

Asset management

1,041.5

 

834.5

 

(19.9 %)

Other businesses

56.7

 

65.9

 

16.2 %

Total net revenues

4,293.1

 

3,100.4

 

(27.8 %)

  • Income from operations in the full year 2022 was RMB1,088.4 million (US$157.8 million), a 9.2% decrease from the full year 2021.

(RMB millions,

except percentages)

FY  2021

 

FY  2022

 

YoY Change

Wealth management

921.5

 

741.4

 

(19.5 %)

Asset management

485.2

 

447.8

 

(7.7 %)

Other businesses

(207.8)

 

(100.8)

 

(51.5 %)

Total income from operations

1,198.9

 

1,088.4

 

(9.2 %)

  • Net income attributable to Noah shareholders in the full year 2022 was RMB976.6 million (US$141.6 million), a 25.7% decrease compared with full year 2021, due to decreases in net revenue and income from equity in affiliates amid market volatilities.
  • Non-GAAP net income attributable to Noah shareholders in the full year 2022 was RMB1,008.6 million (US$146.2 million), a 26.5% decrease from the full year 2021.

FOURTH QUARTER AND FULL YEAR 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. 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 December 31, 2022 was 437,288, a 6.1% increase from December 31, 2021 and a 0.9% increase compared with September 30, 2022.
  • Total number of active clients[2] who transacted with us during the fourth quarter of 2022 was 12,904, a 26.1% decrease from the fourth quarter of 2021, and a 43.0% decrease from the third quarter of 2022. Total number of active clients who transacted with us during the full year 2022 was 35,877, a 16.1% decrease from the full year 2021.
  • Aggregate value of investment products distributed during the fourth quarter of 2022 was RMB18.0 billion (US$2.6 billion), a 14.5% decrease from the corresponding period in 2021, mainly due to a decrease in the distribution of private secondary products due to the volatile secondary market.

Product type

Three months ended December 31,

 

2021

 

2022

 

(RMB in billions, except percentages)

Mutual fund products

10.2

 

48.5 %

 

12.2

 

67.7 %

Private secondary products

6.7

 

31.6 %

 

3.4

 

18.7 %

Private equity products

3.0

 

14.5 %

 

1.4

 

8.0 %

Other products[3]

1.1

 

5.4 %

 

1.0

 

5.6 %

All products

21.0

 

100.0 %

 

18.0

 

100.0 %

  • Aggregate value of investment products distributed during the full year 2022 was RMB70.3 billion (US$10.2 billion), a 27.7% decrease from the full year 2021, mainly due to a decrease in the distribution of private secondary products.

Product type

Twelve months ended December 31,

 

2021

 

2022

 

(RMB in billions, except percentages)

               

Mutual fund products

37.1

 

38.2 %

 

43.1

 

61.4 %

Private secondary products

37.8

 

38.9 %

 

13.1

 

18.6 %

Private equity products

18.1

 

18.6 %

 

11.1

 

15.7 %

Other products

4.2

 

4.3 %

 

3.0

 

4.3 %

All products

97.2

 

100.0 %

 

70.3

 

100.0 %

  • Coverage network in mainland China included 75 cities as of December 31, 2022, compared with 76 cities as of September 30, 2022, and 84 cities as of December 31, 2021.
  • Number of relationship managers was 1,276 as of December 31, 2022, a 1.5% increase from September 30, 2022, and a 3.0% decrease from December 31, 2021.

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

[2]  "Active clients" for a given period refers to registered investors who purchase investment products distributed or receive services provided by us during that given period.

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

  • Total assets under management as of December 31, 2022 remained relatively stable in the amount of RMB157.1 billion (US$22.8 billion), compared with RMB156.2 billion as of September 30, 2022 and RMB156.0 billion as of December 31, 2021.

Investment type

As of
September 30,
2022

 

Growth

 

Distribution/ 
Redemption

 

As of
December 31,
2022

 

(RMB billions, except percentages)

Private equity

132.8

 

85.0 %

 

1.4

 

1.1

 

133.1

 

84.7 %

Public securities[4]

10.2

 

6.5 %

 

1.3

 

0.5

 

11.0

 

7.0 %

Real estate

6.7

 

4.3 %

 

0.2

 

0.1

 

6.8

 

4.3 %

Multi-strategies

5.1

 

3.3 %

 

-

 

0.3

 

4.8

 

3.1 %

Others

1.4

 

0.9 %

 

-

 

-

 

1.4

 

0.9 %

All Investments

156.2

 

100.0 %

 

2.9

 

2.0

 

157.1

 

100.0 %

 

Investment type

As of
December 31,
2021

 

Growth

 

Distribution/ 
Redemption

 

As of
December 31,
2022

 

(RMB billions, except percentages)

Private equity

130.9

 

83.9 %

 

11.0

 

8.8

 

133.1

 

84.7 %

Public securities

11.2

 

7.2 %

 

2.1

 

2.3

 

11.0

 

7.0 %

Real estate

6.6

 

4.3 %

 

1.4

 

1.2

 

6.8

 

4.3 %

Multi-strategies

5.9

 

3.8 %

 

-

 

1.1

 

4.8

 

3.1 %

Others

1.4

 

0.8 %

 

-

 

-

 

1.4

 

0.9 %

All Investments

156.0

 

100.0 %

 

14.5

 

13.4

 

157.1

 

100.0 %

Other Businesses

Our other businesses mainly aim to provide more comprehensive services and investment products to our clients.

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "I'm happy to report that our voluntary conversion to dual-primary listing in Hong Kong has been successfully completed, fully mitigating the ADR delisting risk. In the fourth quarter of 2022, we continued to see challenges in the domestic economy brought by the Covid-19 pandemic. Nevertheless, net revenues grew 28.9% quarter-on-quarter, supported by a 169.4% increase in one-time commissions and 191.1% increase in performance based income quarter-on-quarter. Despite a challenging capital markets environment, non-GAAP net income attributable to Noah shareholders for the full year was RMB1.0 billion, in-line with our annual guidance. Furthermore, The Board has approved an annual dividend of approximately RMB176.5 million (US$25.6 million) in total, which is equivalent to around 17.5% of our unaudited annual non-GAAP net income attributable to Noah shareholders. The annual dividend payment plan will be reviewed during and announced after the Annual General Meeting, which is expected to be held in June 2023."

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

FOURTH QUARTER 2022 FINANCIAL RESULTS

Net Revenues

Net revenues for the fourth quarter of 2022 were RMB882.1 million (US$127.9 million), a 30.0% decrease from the corresponding period in 2021, primarily driven by decreased one-time commissions and performance-based income.

  • Wealth Management Business
    • Net revenues from one-time commissions for the fourth quarter of 2022 were RMB266.1 million (US$38.6 million), a 43.6% decrease from the corresponding period in 2021, due to a decrease in insurance products distributed in fourth quarter of 2022.
    • Net revenues from recurring service fees for the fourth quarter of 2022 were RMB318.6 million (US$46.2 million), a 23.6% decrease from the corresponding period in 2021. The decrease was primarily due to the service fees recognized upon liquidation of certain credit products with higher fee rates in the fourth quarter of 2021.
    • Net revenues from performance-based income for the fourth quarter of 2022 were RMB14.1 million (US$2.0 million), compared with RMB47.7 million from the corresponding period of 2021, primarily due to a decrease in performance-based income from public securities products and offshore private equity fund products.
    • Net revenues from other service fees for the fourth quarter of 2022 were RMB48.1 million (US$7.0 million), a 47.4% increase from the corresponding period in 2021, primarily due to more value-added services Noah offers to its high net worth clients.
  • Asset Management Business
    • Net revenues from recurring service fees for the fourth quarter of 2022 were RMB153.6 million (US$22.3 million), an 8.9% increase from the corresponding period in 2021, due to an increase in the amount of private equity investments managed by Gopher.
    • Net revenues from performance-based income for the fourth quarter of 2022 were RMB66.3 million (US$9.6 million), a 47.1% decrease from the corresponding period in 2021, primarily due to a decrease in performance-based income from offshore private equity investments managed by Gopher.
  • Other Businesses
    • Net revenues for the fourth quarter of 2022 were RMB12.0 million (US$1.7 million), compared with RMB17.0 million in the corresponding period in 2021.

Operating Costs and Expenses

Operating costs and expenses for the fourth quarter of 2022 were RMB662.3 million (US$96.0 million), a 41.3% decrease from the corresponding period in 2021. Operating costs and expenses primarily consisted of compensation and benefits of RMB383.1 million (US$55.6 million), selling expenses of RMB142.8 million (US$20.7 million), general and administrative expenses of RMB84.0 million (US$12.2 million), provision of credit losses of RMB19.8 million (US$2.9 million) and other operating expenses of RMB38.3 million (US$5.5 million).

  • Operating costs and expenses for the wealth management business for the fourth quarter of 2022 were RMB467.8 million (US$67.8 million), a 40.5% decrease from the corresponding period in 2021, primarily due to a decrease in relationship manager compensation, which is in line with decreased transaction value and a decrease in general and administrative expenses due to our cost control measures implemented.
  • Operating costs and expenses for the asset management business for the fourth quarter of 2022 were RMB129.6 million (US$18.8 million), a 32.9% decrease from the corresponding period in 2021, primarily due to less performance fee compensation and less provision for credit losses.
  • Operating costs and expenses for other businesses for the fourth quarter of 2022 were RMB64.9 million (US$9.4 million), a 56.5% decrease from the corresponding period in 2021, due to less credit losses recorded.

Operating Margin

Operating margin for the fourth quarter of 2022 was 24.9%, compared with 10.5% for the corresponding period in 2021.

  • Operating margin for the wealth management business for the fourth quarter of 2022 was 27.7%, compared with 18.9% for the corresponding period in 2021, due to less general and administrative expenses incurred due to our cost control measures implemented. 
  • Operating margin for the asset management business for the fourth quarter of 2022 was 41.9%, compared with 29.5% for the corresponding period in 2021, due to less performance fee compensation recorded in 2022.
  • Loss from other businesses for the fourth quarter of 2022 was RMB52.9 million (US$7.7 million), compared with RMB132.1 million in the corresponding period of 2021, primarily due to decreased provision for credit losses.

Investment Income

Investment income for the fourth quarter of 2022 was RMB62.2 million (US$9.0 million), compared with investment income of RMB3.5 million for the corresponding period in 2021, primarily due to unrealized gains of fair value changes from our certain equity investments.

Income Tax Expenses

Income tax expenses for the fourth quarter of 2022 were RMB60.5 million (US$8.8 million), a 71.3% increase from the corresponding period in 2021, primarily due to higher taxable income as well as dividend tax accrued in the fourth quarter of 2022.

Income from Equity in Affiliates

Income from equity in affiliates for the fourth quarter of 2022 was RMB12.3 million (US$1.8 million), compared with RMB160.5 million for the corresponding period in 2021, primarily due to the decrease in net income of the funds of funds that we manage and invest in as the general partner or fund manager.

Net Income

  • Net Income
    • Net income for the fourth quarter of 2022 was RMB140.5 million (US$20.4 million), a 48.7% decrease from the corresponding period in 2021.
    • Net margin for the fourth quarter of 2022 was 15.9%, down from 21.7% for the corresponding period in 2021, due to less income from equity affiliates recorded compared with corresponding period in 2021.
    • Net income attributable to Noah shareholders for the fourth quarter of 2022 was RMB139.9 million (US$20.3 million), a 50.3% decrease from the corresponding period in 2021.
    • Net margin attributable to Noah shareholders for the fourth quarter of 2022 was 15.9%, down from 22.3% for the corresponding period in 2021.
    • Net income attributable to Noah shareholders per basic and diluted ADS for the fourth quarter of 2022 was RMB2.01 (US$0.29) and RMB2.01 (US$0.29), respectively, down from RMB4.18 and RMB4.16 respectively, for the corresponding period in 2021.
  • Non-GAAP Net Income Attributable to Noah Shareholders
    • Non-GAAP net income attributable to Noah shareholders for the fourth quarter of 2022 was RMB149.2 million (US$21.6 million), a 48.5% decrease from the corresponding period in 2021.
    • Non-GAAP net margin attributable to Noah shareholders for the fourth quarter of 2022 was 16.9%, down from 23.0% for the corresponding period in 2021
    • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the fourth quarter of 2022 was RMB2.14 (US$0.31), down from RMB4.28 for the corresponding period in 2021.

FULL YEAR 2022 FINANCIAL RESULTS

Net Revenues

Net revenues for the full year 2022 were RMB3,100.4 million (US$449.5 million), a 27.8% decrease from the full year 2021, primarily due to a decrease in one-time commissions and performance-based income. 

  • Wealth Management Business
    • Net revenues from one-time commissions for 2022 were RMB628.6 million (US$91.1 million), a 46.5% decrease from 2021, primarily due to less insurance products distributed.
    • Net revenues from recurring service fees for 2022 were RMB1,226.5 million (US$177.8 million), a 16.1% decrease from 2021. The decrease was primarily due to the service fees recognized upon liquidation of certain credit products with higher fee rates for the full year 2021.
    • Net revenues from performance-based income for 2022 were RMB201.5 million (US$29.2 million), a 56.8% decrease from 2021, primarily due to a decrease in performance-based income from public securities products and private equity fund products.
    • Net revenues from other service fees for 2022 were RMB143.4 million (US$20.8 million), a 56.1% increase from 2021, primarily due to more value-added services Noah offers to its high net worth clients.
  • Asset Management Business
    • Net revenues from recurring service fees for 2022 were RMB678.3 million (US$98.4 million), a 6.6% increase from 2021.
    • Net revenues from performance-based income for 2022 were RMB106.5 million (US$15.4 million), a 66.0% decrease from 2021, primarily due to a decrease in performance-based income from private equity fund products.
  • Other Businesses
    • Net revenues for 2022 were RMB65.9 million (US$9.6 million), a 16.2% increase from 2021.

Operating costs and expenses

Operating costs and expenses for 2022 were RMB2,011.9 million (US$291.7 million), a 35.0% decrease from the full year 2021. Operating costs and expenses for the full year 2022 primarily consisted of compensation and benefits of RMB1,441.9 million (US$209.1 million), selling expenses of RMB349.0 million (US$50.6 million), general and administrative expenses of RMB235.3 million (US$34.1 million), reversal of credit losses of RMB0.4 million (US$0.1 million) and other operating expenses of RMB115.7 million (US$16.8 million).

  • Operating costs and expenses for the wealth management business for 2022 were RMB1,458.5 million (US$211.5 million), a 35.8% decrease from 2021, primarily due to a decrease in compensation and benefits, as well as general and administrative expenses.
  • Operating costs and expenses for the asset management business for 2022 were RMB386.6 million (US$56.1 million), a 30.5% decrease from 2021, primarily due to a decrease in compensation and benefits, as well as general and administrative expenses.
  • Operating costs and expenses for other businesses for 2022 were RMB166.8 million (US$24.2million), a 37.0% decrease from 2021, primarily due to a decrease in provision for credit losses.

Operating Margin

Operating margin for the full year 2022 was 35.1%, compared to 27.9% for the full year 2021.

  • Operating margin for the wealth management business for 2022 was 33.7%, compared to 28.8% for 2021, mainly due to cost control measures implemented.
  • Operating margin for the asset management business for 2022 was 53.7%, compared to 46.6% for 2021, mainly due to cost control measures implemented.
  • Loss from other businesses for 2022 was RMB100.8 million (US$14.6 million), compared with RMB207.8 million for 2021, due to decreased provision of credit losses. 

Investment Income

Investment income for the full year 2022 was RMB85.6 million (US$12.4 million), a 30.8% increase from the full year 2021, primarily due to unrealized gains of fair value changes from our certain equity investments.

Income Tax Expenses

Income tax expenses for the full year 2022 were RMB267.1 million (US$38.7 million), a 9.1% decrease from the full year 2021, primarily due to less taxable income.

Income from Equity in Affiliates

Income from equity in affiliates for the full year 2022 was RMB89.1 million (US$12.9 million), compared with RMB302.0 million in the corresponding period in 2021, primarily due to less income recognized from the funds of funds that we manage and invest in as the general partner or fund manager.  

Net Income

  • Net Income
    • Net income for the full year 2022 was RMB971.6 million (US$140.9 million), a 25.6% decrease from the full year 2021.
    • Net margin for the full year 2022 was 31.3%, up from 30.4% for the corresponding period in 2021.
    • Net income attributable to Noah shareholders for the full year 2022 was RMB976.6 million (US$141.6 million), a 25.7% decrease from the full year 2021.
    • Net margin attributable to Noah shareholders for the full year 2022 was 31.5%, up from 30.6% for the full year 2021.
    • Net income attributable to Noah shareholders per basic and diluted ADS for the full year 2022 was RMB14.29 (US$2.07) and RMB14.28 (US$2.07), respectively, down from RMB19.56 and RMB19.45, respectively, for the corresponding period in 2021.
  • Non-GAAP Net Income Attributable to Noah Shareholders
    • Non-GAAP net income attributable to Noah shareholders for the full year 2022 was RMB1,008.6 million (US$146.2 million), a 26.5% decrease from the full year 2021.
    • Non-GAAP net margin attributable to Noah shareholders for the full year 2022 was 32.5%, up from 32.0% for the full year 2021.
    • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the full year 2022 was RMB14.75 (US$2.14), down from RMB20.32 for the full year 2021.

BALANCE SHEET AND CASH FLOW

As of December 31, 2022, the Company had RMB4,403.9 million (US$638.5 million) in cash and cash equivalents, compared with RMB3,404.6 million as of December 31, 2021 and RMB4,312.8 million as of September 30, 2022.

Net cash inflow from the Company's operating activities during the fourth quarter of 2022 was RMB33.0 million (US$4.8 million), compared to RMB659.2 million in the corresponding period in 2021, primarily due to the reclassification of trading debt products from cash and cash equivalents to short term investments in the fourth quarter of 2022. Net cash inflow from the Company's operating activities during the full year 2022 was RMB632.9 million (US$91.8 million), compared to RMB1,521.8 million during the full year 2021, the variance was mainly due to a decrease in net income.

Net cash inflow from the Company's investing activities during the fourth quarter of 2022 was RMB58.3 million (US$8.5 million), compared to net cash outflow of RMB67.4 million in the corresponding period in 2021. Net cash inflow from the Company's investing activities during the full year 2022 was RMB74.3 million (US$10.8 million), compared to net cash outflow of RMB2,572.1 million during the full year 2021, the cash outflow in 2021 was mainly due to cash payment for the acquisition of our new headquarter.

Net cash inflow from the Company's financing activities was RMB8.0 million (US$1.2 million) in the fourth quarter of 2022, compared to net cash inflow of RMB20.9 million in the corresponding period in 2021. Net cash inflow from the Company's financing activities during the full year 2022 was RMB233.8 million (US$33.9 million), compared to net cash outflow of RMB513.1 million during the full year 2021. The cash inflow for 2022 was mainly due to net proceeds from our initial public offering and listing in Hong Kong, and the cash outflow in 2021 was mainly due to the share repurchase program.

RECENT DEVELOPMENT

Silicon Valley Bank ("SVB") Receivership

As disclosed in the Form 6-K furnished with the SEC on March 13, 2023 (the "Press Release"), Noah informed its investors that its exposure to any liquidity concern as a result of the SVB's Receivership (as defined in the Press Release) is immaterial and that it has taken necessary measures to protect against or minimize the potential impact of the SVB's Receivership on the investment funds for which Noah acts as general partner or fund manager.

As of the date of this press release, Noah has transferred out all its cash and cash equivalents previously deposited with SVB. In addition, as general partner or fund manager, Noah has also transferred out all funds cash balances from SVB to their designated accounts. As a result, Noah has no remaining exposure to the SVB Receivership.

Resignation of Senior Management Member

Mr. Jin Chen resigned from his position as the chief executive officer of Noah Digital International, effective on March 15, 2023, due to personal reasons. Mr. Chen will assist the Company in achieving a smooth transition of his job responsibilities. His resignation was not a result of any disagreements with the Company.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's fourth quarter unaudited financial results and full year 2022 audited financial results and recent business activities.

The conference call will be accessed via Zoom webinar with the following details:

Zoom webinar details

Conference title

Noah Holdings 4Q22 Earnings Conference Call

Date/Time

 

Monday, March 27, 2023 at 8:00 p.m., U.S. Eastern Time

Tuesday, March 28, 2023 at 8:00 a.m., Hong Kong Time

Meeting ID:

910 2002 0524

Meeting Passcode:

Noah4Q22

Dial in

 

- New York:

+1 929 205 6099

- Hong Kong:

+852 3709 4942

- London:

+44 207 660 2677

- Singapore:

+65 6347 5852

A replay will be available on the same day of the conference call until April 18, 2023 at the Company's investor relations website under the Quarterly Results section at http://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, non-cash settlement expense 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 and HKEX:6686) 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 full year 2022, Noah distributed RMB70.3 billion (US$10.2 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB157.1 billion (US$22.8 billion) as of December 31, 2022.

Noah's wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah's network covers 75 cities in mainland China, as well as Hong Kong (China), Taiwan (China), New York, Silicon Valley and Singapore. A total of 1,276 relationship managers provide customized financial solutions for clients through this network, and meet their international investment needs. The Company's wealth management business had 437,288 registered clients as of December 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. 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 fourth quarter of 2022 and audited financial results for the full year ended December 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 RMB6.8972 to US$1.00, the effective noon buying rate for December 30, 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. 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 announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), 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. These statements include, but are not limited to, estimates regarding the sufficiency of Noah's cash and cash equivalents and liquidity risk. 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 and the Hong Kong Stock Exchange. 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

 
 

As of

 

September
30, 2022

 

December
31, 2022

 

December
31, 2022

 

(Unaudited)

 

(Audited)

 

(Audited)

 

RMB'000

 

RMB'000

 

USD'000

Assets

         
 

Current assets:

         
   

     Cash and cash equivalents

4,312,827

 

4,403,915

 

638,508

   

     Restricted cash

10,311

 

23,203

 

3,364

   

     Short-term investments

98,770

 

315,979

 

45,813

   

     Accounts receivable, net

426,900

 

498,106

 

72,219

   

     Loans receivable, net

566,933

 

465,780

 

67,532

   

     Amounts due from related parties

424,821

 

443,424

 

64,290

   

     Other current assets

184,506

 

166,739

 

24,175

   

     Total current assets

6,025,068

 

6,317,146

 

915,901

 

Long-term investments, net

723,902

 

774,095

 

112,232

 

Investment in affiliates

1,516,292

 

1,491,820

 

216,293

 

Property and equipment, net

2,497,558

 

2,486,317

 

360,482

 

Operating lease right-of-use assets, net

189,906

 

168,192

 

24,386

 

Deferred tax assets

333,522

 

436,441

 

63,278

 

Other non-current assets

160,059

 

124,124

 

17,996

Total Assets

11,446,307

 

11,798,135

 

1,710,568

           

Liabilities and Equity

         
 

Current liabilities:

         
   

     Accrued payroll and welfare expenses

543,435

 

668,953

 

96,989

   

     Income tax payable

69,214

 

126,848

 

18,391

   

     Deferred revenues

81,602

 

67,967

 

9,854

   

     Contingent liabilities

483,727

 

568,018

 

82,355

   

     Other current liabilities

458,079

 

473,175

 

68,604

   

     Total current liabilities

1,636,057

 

1,904,961

 

276,193

 

Operating lease liabilities, non-current

101,110

 

83,171

 

12,059

 

Deferred tax liabilities

231,589

 

249,768

 

36,213

 

Other non-current liabilities

76,330

 

59,760

 

8,664

 

Total Liabilities 

2,045,086

 

2,297,660

 

333,129

 

Equity

9,401,221

 

9,500,475

 

1,377,439

Total Liabilities and Equity

11,446,307

 

11,798,135

 

1,710,568

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(unaudited)

 
 

Three months ended

   
 

December 31,

 

December 31,

 

December 31,

 

Change

 

2021

 

2022

 

2022

   

Revenues:

RMB'000

 

RMB'000

 

USD'000

   

Revenues from others:

             

One-time commissions

472,566

 

266,592

 

38,652

 

(43.6 %)

Recurring service fees

214,835

 

195,872

 

28,399

 

(8.8 %)

Performance-based income

42,115

 

13,998

 

2,030

 

(66.8 %)

Other service fees

54,296

 

60,870

 

8,825

 

12.1 %

Total revenues from others

783,812

 

537,332

 

77,906

 

(31.4 %)

Revenues from funds Gopher
manages:

             

One-time commissions

9,886

 

3,915

 

568

 

(60.4 %)

Recurring service fees

346,747

 

278,376

 

40,361

 

(19.7 %)

Performance-based income

131,988

 

66,819

 

9,688

 

(49.4 %)

Total revenues from funds
Gopher
manages

488,621

 

349,110

 

 

50,617

 

 

(28.6 %)

Total revenues

1,272,433

 

886,442

 

128,523

 

(30.3 %)

Less: VAT related surcharges 

(12,379)

 

(4,372)

 

(634)

 

(64.7 %)

Net revenues

1,260,054

 

882,070

 

127,889

 

(30.0 %)

Operating costs and expenses:

             

Compensation and benefits

             

Relationship manager
compensation

 

(382,160)

 

 

(146,662)

 

 

(21,264)

 

 

(61.6 %)

Others

(349,004)

 

(236,484)

 

(34,287)

 

(32.2 %)

Total compensation and
benefits

 

(731,164)

 

 

(383,146)

 

 

(55,551)

 

 

(47.6 %)

Selling expenses

(139,906)

 

(142,806)

 

(20,705)

 

2.1 %

General and administrative
expenses 

 

(148,015)

 

 

(83,952)

 

 

(12,172)

 

 

(43.3 %)

Provision for credit losses

 

(100,858)

 

 

(19,836)

 

 

(2,876)

 

 

(80.3 %)

Other operating expenses 

(19,644)

 

(38,257)

 

(5,547)

 

94.8 %

Government grants 

11,821

 

5,665

 

821

 

(52.1 %)

Total operating costs and expenses 

 

(1,127,766)

 

 

(662,332)

 

 

(96,030)

 

 

(41.3 %)

Income from operations 

132,288

 

219,738

 

31,859

 

66.1 %

Other income (expense):

             

Interest income 

14,571

 

14,251

 

2,066

 

(2.2 %)

Investment income

3,469

 

62,240

 

9,024

 

1,694.2 %

Settlement reversal

719

 

-

 

-

 

N.A.

Contingent litigation expenses

-

 

(99,000)

 

(14,354)

 

N.A.

Other expense

(2,313)

 

(8,507)

 

(1,233)

 

267.8 %

Total other income (expense)

16,446

 

(31,016)

 

(4,497)

 

N.A.

Income before taxes and
income from equity in
affiliates

 

 

 

148,734

 

 

 

 

188,722

 

 

 

 

27,362

 

26.9 %

Income tax expense

(35,329)

 

(60,530)

 

(8,776)

 

71.3 %

Income from equity in affiliates

 

160,510

 

 

12,331

 

 

1,788

 

 

(92.3 %)

Net income

273,915

 

140,523

 

20,374

 

(48.7 %)

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

 

 

(7,397)

 

 

 

614

 

 

 

89

 

 

 

N.A.

Net income attributable to
Noah shareholders 

 

 

281,312

 

 

 

139,909

 

 

 

20,285

 

(50.3 %)

               

Income  per ADS, basic

4.18

 

2.01

 

0.29

 

(51.9 %)

Income per ADS, diluted

4.16

 

2.01

 

0.29

 

(51.7 %)

 

Margin analysis:

             

Operating margin

10.5 %

 

24.9 %

 

24.9 %

   

Net margin

21.7 %

 

15.9 %

 

15.9 %

   

 

Weighted average ADS
equivalent[1]:

             

Basic

67,348,790

 

69,593,068

 

69,593,068

   

Diluted

67,700,437

 

69,611,652

 

69,611,652

   

ADS equivalent outstanding at
end of period

 

60,338,054

 

 

62,603,864

 

 

62,603,864

   
               
 

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

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(Audited)

 
 

Twelve months ended 

   
 

December 31,

 

December 31,

 

December 31,

 

Change

 

2021

 

2022

 

2022

   

Revenues:

RMB'000

 

RMB'000

 

USD'000

   

Revenues from others:

             

One-time commissions

1,130,894

 

617,636

 

89,549

 

(45.4 %)

Recurring service fees

913,700

 

768,980

 

111,492

 

(15.8 %)

Performance-based income

391,903

 

184,048

 

26,684

 

(53.0 %)

Other service fees

161,982

 

223,441

 

32,396

 

37.9 %

Total revenues from others

2,598,479

 

1,794,105

 

260,121

 

(31.0 %)

Revenues from funds Gopher
manages:

             

One-time commissions

140,522

 

63,809

 

9,251

 

(54.6 %)

Recurring service fees

1,195,309

 

1,145,435

 

166,072

 

(4.2 %)

Performance-based income

392,290

 

125,528

 

18,200

 

(68.0 %)

Total revenues from funds
Gopher manages

 

1,728,121

 

 

1,334,772

 

 

193,523

 

 

(22.8 %)

Total revenues

4,326,600

 

3,128,877

 

453,644

 

(27.7 %)

Less: VAT related surcharges 

(33,506)

 

(28,505)

 

(4,133)

 

(14.9 %)

Net revenues

4,293,094

 

3,100,372

 

449,511

 

(27.8 %)

Operating costs and expenses:

             

Compensation and benefits

             

Relationship manager
compensation

 

(920,896)

 

(497,147)

 

 

(72,080)

 

(46.0 %)

Others

(1,247,984)

 

(944,735)

 

(136,974)

 

(24.3 %)

Total compensation and
benefits

 

(2,168,880)

 

(1,441,882)

 

 

(209,054)

 

(33.5 %)

Selling expenses

(437,131)

 

(349,014)

 

(50,602)

 

(20.2 %)

General and administrative
expenses 

 

(383,321)

 

(235,319)

 

 

(34,118)

 

(38.6 %)

(Reversal of) Provision for
credit losses

 

(112,959)

 

424

 

 

61

 

N.A.

Other operating expenses 

(107,844)

 

(115,653)

 

(16,768)

 

7.2 %

Government grants 

115,939

 

129,521

 

18,779

 

11.7 %

Total operating costs and
expenses 

 

(3,094,196)

 

(2,011,923)

 

 

(291,702)

 

(35.0 %)

Income from operations 

1,198,898

 

1,088,449

 

157,809

 

(9.2 %)

Other income (expense):

             

Interest income 

71,866

 

61,416

 

8,904

 

(14.5 %)

Investment income

65,426

 

85,554

 

12,404

 

30.8 %

Settlement expenses

(19,908)

 

-

 

-

 

N.A.

Contingent litigation expenses

-

 

(99,000)

 

(14,354)

 

N.A.

Other (expense) income

(18,240)

 

13,130

 

1,904

 

N.A.

Total other income

99,144

 

61,100

 

8,858

 

(38.4 %)

Income before taxes and
income from equity in affiliates

 

 

1,298,042

 

 

 

1,149,549

 

 

 

166,667

 

(11.4 %)

Income tax expense

(293,940)

 

(267,108)

 

(38,727)

 

(9.1 %)

Income from equity in affiliates

301,979

 

89,148

 

12,925

 

(70.5 %)

Net income

1,306,081

 

971,589

 

140,865

 

(25.6 %)

Less: net loss attributable to
non-controlling interests

 

(8,050)

 

 

(4,982)

 

 

(722)

 

 

(38.1 %)

Net income attributable to
Noah shareholders 

 

1,314,131

 

 

976,571

 

 

141,587

 

(25.7 %)

               

Income per ADS, basic

19.56

 

14.29

 

2.07

 

(26.9 %)

Income per ADS, diluted

19.45

 

14.28

 

2.07

 

(26.6 %)

 

Margin analysis:

             

Operating margin

27.9 %

 

35.1 %

 

35.1 %

   

Net margin

30.4 %

 

31.3 %

 

31.3 %

   

 

Weighted average ADS
equivalent[1]:

             

Basic

67,171,636

 

68,332,032

 

68,332,032

   

Diluted

67,563,546

 

68,396,142

 

68,396,142

   

ADS equivalent outstanding at
end of period

 

60,338,054

 

 

62,603,864

 

 

62,603,864

   
               
 

[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

 
 

December
31
,

 

December
31
,

 

December
31
,

 

Change

 

2021

 

2022

 

2022

   
 

RMB'000

 

RMB'000

 

USD'000

   

Net income

273,915

 

140,523

 

20,374

 

(48.7 %)

Other comprehensive income, net of tax:

             

Foreign currency translation adjustments

(14,094)

 

(36,494)

 

(5,291)

 

159.1 %

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

 

(243)

 

 

-

 

 

-

 

N.A.

Comprehensive income

259,578

 

104,029

 

15,083

 

(59.9 %)

Less: Comprehensive loss attributable to
non-controlling interests

 

(7,366)

 

 

598

 

 

87

 

N.A.

Comprehensive income attributable to
Noah
shareholders

  

266,944

 

  

103,431

 

 

14,996

 

(61.3 %)

 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(Audited)

 
 

Twelve months ended

 
 

December
31
,

 

December
31
,

 

December
31
,

 

Change

 

2021

 

2022

 

2022

   
 

RMB'000

 

RMB'000

 

USD'000

   

Net income

1,306,081

 

971,589

 

140,865

 

(25.6 %)

Other comprehensive income, net of tax:

             

Foreign currency translation adjustments

(60,851)

 

137,555

 

19,944

 

N.A.

Comprehensive income

1,245,230

 

1,109,144

 

160,809

 

(10.9 %)

Less: Comprehensive loss attributable to
non-controlling interests

 

(8,001)

 

 

(4,895)

 

 

(710)

 

(38.8 %)

Comprehensive income attributable to
Noah
shareholders

 

1,253,231

 

 

1,114,039

 

 

161,519

 

(11.1 %)

 

Noah Holdings Limited

Supplemental Information

(unaudited)

 
 

As of

   
 

December 31,
2021

 

December 31,
2022

 

Change

           

Number of registered clients 

411,981

 

437,288

 

6.1 %

Number of relationship managers 

1,316

 

1,276

 

(3.0 %)

Number of cities in mainland China under
coverage

84

 

75

 

(10.7 %)

           
 

Three months ended

   
 

December 31,
2021

 

December 31,
2022

 

Change

 

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

Number of active clients

17,456

 

12,904

 

(26.1 %)

Transaction value:

         

Private equity products

3,041

 

1,452

 

(52.3 %)

Private secondary products

6,659

 

3,362

 

(49.5 %)

Mutual fund products

10,207

 

12,183

 

19.4 %

Other products

1,136

 

1,003

 

(11.7 %)

Total transaction value

21,043

 

18,000

 

(14.5 %)

           
 

Twelve months ended

   
 

December 31,
2021

 

December 31,
2022

 

Change

 

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

Number of active clients

42,764

 

35,877

 

(16.1 %)

Transaction value:

         

Private equity products

18,069

 

11,037

 

(38.9 %)

Private secondary products

37,776

 

13,109

 

(65.3 %)

Mutual fund products

37,169

 

43,133

 

16.0 %

Other products

4,189

 

3,002

 

(28.3 %)

Total transaction value

97,203

 

70,281

 

(27.7 %)

 

Noah Holdings Limited

Segment Condensed Income Statements

 (unaudited)

 
 

Three months ended December 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

266,592

 

-

 

-

 

266,592

Recurring service fees

195,872

 

-

 

-

 

195,872

Performance-based income

13,998

 

-

 

-

 

13,998

Other service fees

48,245

 

-

 

12,625

 

60,870

Total revenues from others

524,707

 

-

 

12,625

 

537,332

Revenues from funds Gopher manages

             

One-time commissions

576

 

3,339

 

-

 

3,915

Recurring service fees

124,040

 

154,336

 

-

 

278,376

Performance-based income

187

 

66,632

 

-

 

66,819

Total revenues from funds Gopher manages 

 

124,803

 

 

224,307

 

-

 

 

349,110

Total revenues

649,510

 

224,307

 

12,625

 

886,442

Less: VAT related surcharges

(2,563)

 

(1,139)

 

(670)

 

(4,372)

Net revenues

646,947

 

223,168

 

11,955

 

882,070

Operating costs and expenses:

             

Compensation and benefits

             

Relationship managers

(137,016)

 

(9,646)

 

-

 

(146,662)

Others

(152,971)

 

(73,585)

 

(9,928)

 

(236,484)

Total compensation and benefits

(289,987)

 

(83,231)

 

(9,928)

 

(383,146)

Selling expenses

(121,259)

 

(20,611)

 

(936)

 

(142,806)

General and administrative expenses

 

(52,723)

 

 

(22,609)

 

 

(8,620)

 

 

(83,952)

Reversal of (Provision for) credit losses

 

249

 

 

1,068

 

 

(21,153)

 

 

(19,836)

Other operating expenses

(9,344)

 

(4,629)

 

(24,284)

 

(38,257)

Government grants

5,224

 

408

 

33

 

5,665

Total operating costs and expenses

(467,840)

 

(129,604)

 

(64,888)

 

(662,332)

Income (loss) from operations

179,107

 

93,564

 

(52,933)

 

219,738

 

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

 
 

Three months ended December 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

472,566

 

-

 

-

 

472,566

Recurring service fees

214,835

 

-

 

-

 

214,835

Performance-based income

42,115

 

-

 

-

 

42,115

Other service fees

32,814

 

-

 

21,482

 

54,296

Total revenues from others

762,330

 

-

 

21,482

 

783,812

Revenues from funds Gopher
manages

             

One-time commissions

2,488

 

7,398

 

-

 

9,886

Recurring service fees

204,919

 

141,828

 

-

 

346,747

Performance-based income

5,905

 

126,083

 

-

 

131,988

Total revenues from funds Gopher
manages

 

213,312

 

 

275,309

 

-

 

 

488,621

Total revenues

975,642

 

275,309

 

21,482

 

1,272,433

Less: VAT related surcharges 

(6,358)

 

(1,496)

 

(4,525)

 

(12,379)

Net revenues

969,284

 

273,813

 

16,957

 

1,260,054

Operating costs and expenses:

             

Compensation and benefits

             

Relationship managers

(371,788)

 

(10,372)

 

-

 

(382,160)

Others

(204,386)

 

(127,455)

 

(17,163)

 

(349,004)

Total compensation and benefits

(576,174)

 

(137,827)

 

(17,163)

 

(731,164)

Selling expenses

(112,287)

 

(19,709)

 

(7,910)

 

(139,906)

General and administrative
expenses 

 

(103,142)

 

 

(22,247)

 

 

(22,626)

 

 

(148,015)

Provision for credit losses

(2,691)

 

(12,574)

 

(85,593)

 

(100,858)

Other operating expenses

(2,507)

 

(687)

 

(16,450)

 

(19,644)

Government grants 

11,101

 

13

 

707

 

11,821

Total operating costs and expenses 

(785,700)

 

(193,031)

 

(149,035)

 

(1,127,766)

Income (loss) from operations

183,584

 

80,782

 

(132,078)

 

132,288

 

Noah Holdings Limited

Segment Condensed Income Statements

(Audited)

 
 

Twelve months ended December 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

617,636

 

-

 

-

 

617,636

Recurring service fees

768,980

 

-

 

-

 

768,980

Performance-based income

184,048

 

-

 

-

 

184,048

Other service fees

144,101

 

-

 

79,340

 

223,441

Total revenues from others

1,714,765

 

-

 

79,340

 

1,794,105

Revenues from funds Gopher
manages

             

One-time commissions

13,953

 

49,856

 

-

 

63,809

Recurring service fees

463,314

 

682,121

 

-

 

1,145,435

  Performance-based income

18,407

 

107,121

 

-

 

125,528

Total revenues from funds Gopher
manages

495,674

 

 

839,098

 

-

 

 

1,334,772

Total revenues

2,210,439

 

839,098

 

79,340

 

3,128,877

Less: VAT related surcharges 

(10,462)

 

(4,630)

 

(13,413)

 

(28,505)

Net revenues

2,199,977

 

834,468

 

65,927

 

3,100,372

Operating costs and expenses:

             

Compensation and benefits

             

Relationship managers

(460,237)

 

(36,910)

 

-

 

(497,147)

Others

(619,397)

 

(285,101)

 

(40,237)

 

(944,735)

Total compensation and benefits

(1,079,634)

 

(322,011)

 

(40,237)

 

(1,441,882)

Selling expenses

(299,769)

 

(41,885)

 

(7,360)

 

(349,014)

General and administrative
expenses 

(153,643)

 

 

(55,872)

 

 

(25,804)

 

 

(235,319)

Reversal of (provision for)  credit
losses

718

 

 

386

 

 

(680)

 

  

424

Other operating expenses

(15,412)

 

(6,369)

 

(93,872)

 

(115,653)

Government grants 

89,223

 

39,120

 

1,178

 

129,521

Total operating costs and
expenses 

(1,458,517)

 

 

(386,631)

 

 

(166,775)

 

 

(2,011,923)

Income (loss) from operations

741,460

 

 

447,837

 

 

(100,848)

 

 

1,088,449

 

Noah Holdings Limited

Segment Condensed Income Statements

(Audited)

 
 

Twelve months ended December 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

1,130,653

 

241

 

-

 

1,130,894

Recurring service fees

912,506

 

1,194

 

-

 

913,700

Performance-based income

391,903

 

-

 

-

 

391,903

Other service fees

92,352

 

1,390

 

68,240

 

161,982

Total revenues from others

2,527,414

 

2,825

 

68,240

 

2,598,479

Revenues from funds Gopher
manages

             

One-time commissions

50,247

 

90,275

 

-

 

140,522

Recurring service fees

557,094

 

638,215

 

-

 

1,195,309

Performance-based income

77,218

 

315,072

 

-

 

392,290

Total revenues from funds Gopher
manages

 

684,559

 

 

1,043,562

 

-

 

 

1,728,121

Total revenues

3,211,973

 

1,046,387

 

68,240

 

4,326,600

Less: VAT related surcharges 

(17,076)

 

(4,923)

 

(11,507)

 

(33,506)

Net revenues

3,194,897

 

1,041,464

 

56,733

 

4,293,094

Operating costs and expenses:

             

Compensation and benefits

             

Relationship managers

(900,921)

 

(19,975)

 

-

 

(920,896)

Others

(753,368)

 

(430,059)

 

(64,557)

 

(1,247,984)

Total compensation and benefits

(1,654,289)

 

(450,034)

 

(64,557)

 

(2,168,880)

Selling expenses

(354,128)

 

(55,790)

 

(27,213)

 

(437,131)

General and administrative expenses 

 

(270,253)

 

 

(70,686)

 

 

(42,382)

 

 

(383,321)

Provision for credit losses

(6,490)

 

(13,275)

 

(93,194)

 

(112,959)