Noah Holdings Limited Announces Unaudited Preliminary Financial Results for the Fourth Quarter and Full Year 2020

Mar 15, 2021

SHANGHAI, March 15, 2021 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth and asset management service provider in China with a focus on global investment and asset allocation services for high net worth individuals and enterprises, today announced its unaudited preliminary[1] financial results for the fourth quarter of 2020 and the full year ended December 31, 2020.

FOURTH QUARTER 2020 FINANCIAL HIGHLIGHTS

  • Net revenues for the fourth quarter of 2020 were RMB953.2 million (US$146.1 million), a 20.9% increase from the corresponding period in 2019, and an 11.0% increase compared with third quarter of 2020, due to increases in both one-time commissions and performance-based income.

(RMB millions,

except percentages)

Q4 2019


Q4 2020


YoY Change

Wealth management

527.9


643.2


21.8%

Asset management

204.1


306.0


49.9%

Lending and other businesses

56.3


4.0


(92.9%)

Total net revenues

788.3


953.2


20.9%

  • Income from operations for the fourth quarter of 2020 was RMB335.5 million (US$51.4 million), a 165.7% increase from the corresponding period in 2019, and a decrease of 3.4% compared with the third quarter of 2020.

(RMB millions,

except percentages)

Q4 2019


Q4 2020


YoY Change

Wealth management

34.8


206.3


492.8%

Asset management

91.0


151.8


66.8%

Lending and other businesses

0.5


(22.6)


N.A.

Total income from operations

126.3


335.5


165.7%

 

[1] As of the date hereof, the Company is still in the process of reviewing the financial results of the funds of funds we manage and invest in as the general partner or manager.  Any changes in the fair value of those investments could affect the income from equity in affiliates, net loss, net loss attributable to Noah shareholders, loss per ADS and the balance of investments in affiliates in Noah's consolidated financial statements. If there will be any fair value adjustments associated with the above, which have not been included in these unaudited preliminary financial results in this press release, the Company will include such adjustments in the audited consolidated financial statements in its Form 20-F for the fiscal year 2020 and subsequent reporting if necessary.

  • Net Loss attributable to Noah shareholders for the fourth quarter of 2020 was RMB1,573.5 million (US$241.2 million), compared to net income attributable to Noah shareholders of RMB102.8 million from the corresponding period in 2019, due to the recognition of a one-off settlement expense related to the settlement plan for investors of certain credit funds involving Camsing announced August 25, 2020 (the "Camsing settlement") in the amount of RMB1,828.9 million (US$280.3 million).
  • Non-GAAP[2] net income attributable to Noah shareholders for the fourth quarter of 2020 was RMB262.5 million (US$40.2 million), a 121.1% increase from the corresponding period in 2019.

[2] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring 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.

FULL YEAR 2020 FINANCIAL HIGHLIGHTS

  • Net revenues in the full year 2020 were RMB3,305.8 million (US$506.6 million), a 2.5% decrease from the full year 2019, mainly due to a decrease in other service fees.

(RMB millions,

except percentages)

FY  2019


FY  2020


YoY Change

Wealth management

2,319.3


2,366.3


2.0%

Asset management

783.5


875.5


11.7%

Lending and other businesses

289.0


64.0


(77.9%)

Total net revenues

3,391.8


3,305.8


(2.5%)

  • Income from operations in the full year 2020 was RMB1,258.5 million (US$192.9 million), a 37.5% increase from the full year 2019.

(RMB millions,

except percentages)

FY  2019


FY  2020


YoY Change

Wealth management

437.8


817.5


86.8%

Asset management

391.3


459.8


17.5%

Lending and other businesses

85.9


(18.8)


N.A.

Total income from operations

915.0


1,258.5


37.5%

  • Net loss attributable to Noah shareholders in the full year 2020 was RMB745.2 million (US$114.2 million), compared to net income attributable to Noah shareholders of RMB829.2 million from the full year 2019, due to the recognition of a one-off settlement expense related to the Camsing settlement in the amount of RMB1,828.9 million (US$280.3 million).
  • Non-GAAP net income attributable to Noah shareholders in the full year 2020 was RMB1,129.7 million (US$173.1 million), a 25.3% increase from the full year 2019.

FOURTH QUARTER AND FULL YEAR 2020 OPERATIONAL UPDATES

Wealth Management Business

The Company's wealth management business offers financial products and provides value-added services to high net worth clients in China and overseas. Noah primarily distributes private equity, public securities, credit and insurance products denominated in RMB and other currencies.

  • Total number of registered clients as of December 31, 2020 was 360,637, a 22.8% increase from December 31, 2019 and a 2.9% increase compared with September 30, 2020.
  • Total number of active clients[3] which excluded mutual fund-only clients during the fourth quarter of 2020 was 5,268, a 16.8% increase from the corresponding period in 2019. Counting in mutual fund-only clients, the total number of clients who transacted with us during the fourth quarter of 2020 was 19,501, a 25.5% increase from the corresponding quarter of 2019. Total number of active clients which excluded mutual fund-only clients during the full year 2020 was 12,161, a 16.4% decrease from the full year 2019, and total number of active clients counting in mutual fund-only clients during the full year 2020 was 34,213, an 8.6% increase from the full year 2019.
  • Aggregate value of financial products distributed during the fourth quarter of 2020 was RMB21.3 billion (US$3.3 billion), a 61.9% increase from the corresponding period in 2019, due to the significant increase in the distribution of public securities products and private equity products.

Product type

Three months ended December 31,


2019


2020


(RMB in billions, except percentages)

Public securities products

9.7


73.7%


15.2


71.4%

Private equity products

1.8


13.8%


5.2


24.3%

Credit products

1.0


7.2%


0.1


0.4%

Other products

0.7


5.3%


0.8


3.9%

All products

13.2


100.0%


21.3


100.0%

  • Aggregate value of financial products distributed during the full year 2020 was RMB94.7 billion (US$14.5 billion), a 20.6% increase from the full year 2019, due to the significant increase in the distribution of public securities products.

Product type

Twelve months ended December 31,


2019

2020


(RMB in billions, except percentages)






Public securities products

26.4

33.6%

73.1

77.2%

Private equity products

14.3

18.2%

17.9

18.9%

Credit products

34.3

43.7%

0.6

0.6%

Other products

3.5

4.5%

3.1

3.3%

All products

78.5

100.0%

94.7

100.0%

  • Coverage network in mainland China included 80 cities as of December 31, 2020, compared with 79 cities as of September 30, 2020, and 82 cities as of December 31, 2019.
  • Number of relationship managers was 1,231 as of December 31, 2020, a 2.2% increase from September 30, 2020, and a 4.4% decrease from December 31, 2019, primarily as a result of the Company's efforts to streamline operational human resources. The turnover rate of core "elite" relationship managers was 5.1%, compared with 4.1% in the year of 2019.

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

Asset Management Business

The Company's asset management business, conducting through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), is a leading alternative multi-asset manager in China with overseas offices in Hong Kong, United States and Canada. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities, credit to multi-strategy investments denominated in Renminbi and other currencies. 

  • Total assets under management as of December 31, 2020 were RMB152.8 billion (US$23.4 billion), a 1.8% decrease from September 30, 2020 due to the distribution of certain funds in real estate products and a 10.2% decrease from December 31, 2019 due to voluntary redemption of certain credit products.

Investment type

As of
September 30,
2020


Growth


Distribution/

Redemption


As of
December 31,
2020


(RMB billions, except percentages)

Private equity

109.4


70.3%


5.6


2.0


113.0


74.0%

Real estate

16.8


10.7%


-


4.1


12.7


8.3%

Credit

11.7


7.5%


-


1.5


10.2


6.7%

Public securities

10.8


7.0%


0.6


1.6[4] 


9.8


6.4%

Multi-strategies

7.0


4.5%


0.2


0.1


7.1


4.6%

All Investments

155.7


100.0%


6.4


9.3


152.8


100.0%

 

Investment type

As of
December 31,
2019


Growth


Distribution/

Redemption


As of
December 31,
2020


(RMB billions, except percentages)

Private equity

104.9


61.6%


16.2


8.1


113.0


74.0%

Real estate

17.6


10.3%


1.5


6.4


12.7


8.3%

Credit

29.6


17.4%


0.1


19.5


10.2


6.7%

Public securities

9.3


5.5%


5.5


5.0


9.8


6.4%

Multi-strategies

8.8


5.2%


1.3


3.0


7.1


4.6%

All Investments

170.2


100.0%


24.6


42.0


152.8


100.0%

 

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

Lending and Other Businesses

The Company's lending business utilizes an advanced risk-management system to assess and facilitate short-term loans to high quality borrowers, often secured with collateral. Starting in the fourth quarter of 2020, the Company has been integrating its internal resources to launch a new consolidated platform called "Noah Digital Intelligence" to offer comprehensive services including investor education, insurance products and a turnkey asset management platform, etc., which is led by our newly-on boarded senior management Mr. Jin Chen, who was the former General Manager and co-CEO of ZhongAn Online P&C Insurance Co., Ltd. (HKEX:06060).  

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "I am pleased to report a strong rebound of performances we delivered in 2020 - total transaction value rose 20.6% to RMB94.7 billion from RMB78.5 billion in 2019. Among which, the transaction value of public securities rose 177.3% year-on-year to RMB73.1 billion, representing a successful execution of our strategy to transform our product offerings to public securities. We continue to strengthen our capability in distributing private equity products, reporting a transaction value of RMB17.9 billion, up 25.2% year-on-year. Despite that we recorded net loss of RMB745.2 million in 2020 due to one-off settlement expense related to Camsing settlement, our non-GAAP net income for the full year exceeded RMB1.1 billion, up 25.3% from 2019. We are also glad to report that the number of black card clients grew from 883 as of December 31, 2019 to 985 as of December 31, 2020. Our management team has set growth target for 2021 and we look forward to sharing the developments with investors. As we picture the future Noah, digitalization will remain a very important strategy, and we are committed to further investing into the development and improvement of our IT infrastructure and technology to enhance our know-your-clients (KYC), know-your agent (KYA) and know-your-products (KYP) and better serve our clients in a new era."

FOURTH QUARTER 2020 FINANCIAL RESULTS

Net Revenues

Net revenues for the fourth quarter of 2020 were RMB953.2 million (US$146.1 million), a 20.9% increase from the corresponding period in 2019, primarily driven by increased one-time commissions and performance-based income, and partially offset by decreased recurring service fees and other service fees.

  • Wealth Management Business
    - Net revenues from one-time commissions for the fourth quarter of 2020 were RMB235.7 million (US$36.1 million), a 48.9% increase from the corresponding period in 2019 due to an increase in financial products distributed in fourth quarter of 2020.
    - Net revenues from recurring service fees for the fourth quarter of 2020 were RMB297.3 million (US$45.6 million), a 3.0% decrease from the corresponding period in 2019. The decrease was primarily due to less service fees recognized upon liquidation of certain credit products with higher fee rates.
    - Net revenues from performance-based income for the fourth quarter of 2020 were RMB80.9 million (US$12.4 million), compared with RMB15.8 million from the corresponding period of 2019, primarily due to an increase in performance-based income from public securities products and private equity fund products.
    - Net revenues from other service fees for the fourth quarter of 2020 were RMB29.3 million (US$4.5 million), a 38.1% decrease from the corresponding period in 2019, primarily due to less value-added services Noah offers to its high net worth clients during the COVID-19 epidemic.
  • Asset Management Business
    Net revenues from recurring service fees for the fourth quarter of 2020 were RMB138.6 million (US$21.2 million), a 13.2% decrease from the corresponding period in 2019. The decrease was primarily due to a decrease in assets under management.
    - Net revenues from performance-based income for the fourth quarter of 2020 were RMB125.7 million (US$19.3 million), a 201.1% increase from the corresponding period in 2019, primarily due to an increase in performance-based income from certain real estate funds and private equity funds.
  • Lending and Other Businesses
    - Net revenues for the fourth quarter of 2020 were RMB4.0 million (US$0.6 million), a 92.9% decrease from the corresponding period in 2019. The decrease was primarily due to reduced loan origination since the second half of 2019.

Operating Costs and Expenses

Operating costs and expenses for the fourth quarter of 2020 were RMB617.8 million (US$94.7 million), a 6.7% decrease from the corresponding period in 2019. Operating costs and expenses primarily consisted of compensation and benefits of RMB445.8 million (US$68.3 million), selling expenses of RMB94.6 million (US$14.5 million), general and administrative expenses of RMB84.0 million (US$12.9 million) and other operating expenses of RMB22.6 million (US$3.5 million).

  • Operating costs and expenses for the wealth management business for the fourth quarter of 2020 were RMB436.9 million (US$67.0 million), an 11.4% decrease from the corresponding period in 2019 primarily due to a decrease in provision for credit loss.
  • Operating costs and expenses for the asset management business for the fourth quarter of 2020 were RMB154.2 million (US$23.6 million), a 36.3% increase from the corresponding period in 2019, primarily due to an increase in compensation and benefits.
  • Operating costs and expenses for the lending and other businesses for the fourth quarter of 2020 were RMB26.7 million (US$4.1 million), a 52.2% decrease from the corresponding period in 2019, primarily due to decreases in compensation and benefits as well as other operating expenses.

Operating Margin

Operating margin for the fourth quarter of 2020 was 35.2%, compared with 16.0% for the corresponding period in 2019.

  • Operating margin for the wealth management business for the fourth quarter of 2020 was 32.1%, compared with 6.6% for the corresponding period in 2019, due to continuously operating efficiency improvement and the decrease of provision for credit loss.
  • Operating margin for the asset management business for the fourth quarter of 2020 was 49.6%, compared with 44.6% for the corresponding period in 2019 due to increased performance-based income with higher operating margin.
  • Loss from the lending and other businesses for the fourth quarter of 2020 was RMB22.7 million (US$3.5 million), compared with income from operations in the amount of RMB0.5 million in the corresponding period of 2019 due to reduced loan origination.

Investment Loss

Investment Loss for the fourth quarter of 2020 was RMB109.4 million (US$16.8 million), compared with investment loss of RMB17.7 million for the corresponding period in 2019. The loss was primarily due to an impairment of certain long-term investment.

Settlement Expense

As previously disclosed on August 25, 2020, the Company offered a settlement plan to the investors of Camsing Products by issuing a fixed number of Company's restricted share units (the "RSU") for consecutive 10 years in exchange for the release of the Company and its subsidiaries from all forms of complaints, arbitrations or litigations in the future immediately. As of December 31, 2020, approximately 67.5% of the Camsing investors had accepted the settlement plan, representing approximately 70.6% of the total outstanding Camsing fund balances. The Company recorded RMB1,290.8 million (US$197.9 million) based on the fair value of RSUs issued to investors. The Company currently has no new settlement plan for remaining unsettled investors, but would not preclude to reaching settlements in the future with similar terms. Therefore, the Company also recognized contingent liability in the amount of RMB530.4 million (US$81.3 million) as of December 31, 2020 in relation to the potential future settlement plan.         

Income Tax Expenses

Income tax expenses for the fourth quarter of 2020 were RMB27.4 million (US$4.2 million), a 2.6% decrease from the corresponding period in 2019, primarily due to lower effective tax rate. 

Income from Equity in Affiliates

Income from equity in affiliates for the fourth quarter of 2020 was RMB39.8 million (US$6.1 million), compared with RMB14.9 million in the corresponding period in 2019. We are still reviewing the financial results of the funds of funds we manage and invest in as the general partner or manager. Although we do not anticipate material variance barring unexpected fluctuations in the portfolio companies' performance, any potential changes in fair value of those investments could affect the income from equity in affiliates.

Net Income

  • Net Income
    -
    Net loss for the fourth quarter of 2020 was RMB1,572.9 million (US$241.1 million), compared to net income of RMB117.9 million from the corresponding period in 2019.
    - Net margin for the fourth quarter of 2020 was negative, compared with 15.0% for the corresponding period in 2019.
    - Net loss attributable to Noah shareholders for the fourth quarter of 2020 was RMB1,573.5 million (US$241.2 million), compared to net income attributable to Noah shareholders of RMB102.8 million from the corresponding period in 2019.
    - Net margin attributable to Noah shareholders for the fourth quarter of 2020 was negative, compared with 13.0% for the corresponding period in 2019.
    - Net loss attributable to Noah shareholders per basic and diluted ADS for the fourth quarter of 2020 was RMB24.92 (US$3.82), compared with net income attributable to Noah shareholders per basic and diluted ADS of RMB1.67 and RMB1.66 respectively, for the corresponding period in 2019.
  • Non-GAAP Net Income Attributable to Noah Shareholders
    -
    Non-GAAP net income attributable to Noah shareholders for the fourth quarter of 2020 was RMB262.5 million (US$40.2 million), a 121.1% increase from the corresponding period in 2019.
    - Non-GAAP net margin attributable to Noah shareholders for the fourth quarter of 2020 was 27.5%, up from 15.1% for the corresponding period in 2019.
    - Non-GAAP net income attributable to Noah shareholders per diluted ADS for the fourth quarter of 2020 was RMB4.13 (US$0.63), up from RMB1.92 for the corresponding period in 2019.

FULL YEAR 2020 FINANCIAL RESULTS

Net Revenues

Net revenues for the full year 2020 were RMB3,305.8 million (US$506.6 million), a 2.5% decrease from the full year 2019, primarily due to the decrease in other service fees and partially offset by an increase in performance-based income. 

  • Wealth Management Business
    -
    Net revenues from one-time commissions for 2020 were RMB762.0 million (US$116.8 million), a 17.5% decrease from 2019, primarily due to less insurance products that we distributed due to COVID-19 epidemic.
    - Net revenues from recurring service fees for 2020 were RMB1,277.4 million (US$195.8 million), an 11.1% increase from 2019. The increase was primarily due to the cumulative effect of financial products with recurring service fees previously distributed.
    - Net revenues from performance-based income for 2020 were RMB204.2 million (US$31.3 million), a 775.4% increase from 2019, primarily due to an increase in performance-based income from public securities products and private equity fund products.
    - Net revenues from other service fees for 2020 were RMB122.8 million (US$18.8 million), a 44.7% decrease from 2019, primarily due to less value-added services Noah offers to its high net worth clients during the COVID-19 epidemic.
  • Asset Management Business
    -
    Net revenues from recurring service fees for 2020 were RMB642.4 million (US$98.5 million), a 6.4% decrease from 2019. The decrease was primarily due to a decrease in assets under management in credit products.
    - Net revenues from performance-based income for 2020 were RMB183.3 million (US$28.1 million), a 105.5% increase from 2019, primarily due to an increase in performance-based income from private equity fund products.
  • Lending and Other Businesses
    -
    Net revenues for 2020 were RMB64.0 million (US$9.8 million), a 77.9% decrease from 2019.

Operating costs and expenses

Operating costs and expenses for 2020 were RMB2,047.4 million (US$313.8 million), a 17.3% decrease from the full year 2019. Operating costs and expenses for the full year 2020 primarily consisted of compensation and benefits of RMB1,504.0 million (US$230.5 million), selling expenses of RMB271.7 million (US$41.6 million), general and administrative expenses of RMB277.9 million (US$42.6 million) and other operating expenses of RMB99.0 million (US$15.2 million).

  • Operating costs and expenses for the wealth management business for 2020 were RMB1,548.9 million (US$237.4 million), a 17.7% decrease from 2019, primarily due to the decrease in compensation and benefits and provision for credit losses.
  • Operating costs and expenses for the asset management business for 2020 were RMB415.7 million (US$63.7 million), a 6.0% increase from 2019, primarily due to an increase in performance fee compensation related to performance-based income.
  • Operating costs and expenses for the lending and other businesses for 2020 were RMB82.8 million (US$12.7 million), a 59.2% decrease from 2019, primarily due to a decrease in compensation and benefits as well as other operating expenses.

Operating Margin

Operating margin for the full year 2020 was 38.1%, compared to 27.0% for the full year 2019.

  • Operating margin for the wealth management business for 2020 was 34.5%, compared to 18.9% for 2019, mainly due to continuously operating efficiency improvement and the decrease of provision for credit losses.
  • Operating margin for the asset management business for 2020 was 52.5%, compared to 49.9% for 2019.
  • Loss from the lending and other businesses for 2020 was RMB18.8 million (US$2.9 million), compared with income from operations in the amount of RMB85.9 million for 2019 due to reduced loan origination

Investment Loss

Investment loss for the full year 2020 was RMB86.4 million (US$13.2 million), compared with investment loss of RMB28.6 million for the full year 2019. The investment loss was primarily due to an impairment of certain long-term investment.

Income Tax Expenses

Income tax expenses for the full year 2020 were RMB258.5 million (US$39.6 million), a 17.5% increase from the full year 2019 due to higher taxable income (excluding one-off settlement expense).

Net Income

  • Net Income
    - Net loss for the full year 2020 was RMB743.5 million (US$113.9 million), compared to net income of RMB863.8 million from the full year 2019.
    - Net margin for the full year 2020 was negative, compared with 25.5% for the full year 2019.
    - Net loss attributable to Noah shareholders for the full year 2020 was RMB745.2 million (US$114.2 million), compared to net income attributable to Noah shareholders of RMB829.2 million for the full year 2019.
    - Net margin attributable to Noah shareholders for the full year 2020 was negative, compared with 24.4% for the full year 2019.
    - Net loss attributable to Noah shareholders per basic and diluted ADS for the full year 2020 was RMB12.01 (US$1.84), compared with net income attributable to Noah shareholders per basic and diluted ADS of RMB13.56 and RMB13.42 respectively, for the full year 2019.
  • Non-GAAP Net Income Attributable to Noah Shareholders
    Non-GAAP net income attributable to Noah shareholders for the full year 2020 was RMB1,129.7 million (US$173.1 million), a 25.3% increase from the full year 2019.
    - Non-GAAP net margin attributable to Noah shareholders for the full year 2020 was 34.2%, up from 26.6% for the full year 2019.
    - Non-GAAP net income attributable to Noah shareholders per diluted ADS for the full year 2020 was RMB18.12 (US$2.78), up from RMB14.59 for the full year 2019.

BALANCE SHEET AND CASH FLOW

As of December 31, 2020, the Company had RMB5,005.2 million (US$767.1 million) in cash and cash equivalents, compared with RMB4,387.3 million as of December 31, 2019 and RMB4,597.4 million as of September 30, 2020.

Net cash inflow from the Company's operating activities during the fourth quarter of 2020 was RMB568.3 million (US$87.1 million), compared to net cash inflow of RMB842.5 million in the corresponding period in 2019. The decrease was mainly due to changes in working capital. Net cash inflow from the Company's operating activities during the full year 2020 was RMB796.3 million (US$122.0 million), compared to RMB1,288.2 million during the full year 2019, the variance was mainly due to changes in working capital.

Net cash inflow from the Company's investing activities during the fourth quarter of 2020 was RMB189.5 million (US$29.0 million), compared to net cash outflow of RMB183.9 million in the corresponding period in 2019. Net cash inflow from the Company's investing activities during the full year 2020 was RMB352.6 million (US$54.0 million), compared to net cash outflow of RMB182.0 million during the full year 2019, due to less loan origination as well as more investments collection made in 2020.

Net cash outflow from the Company's financing activities was RMB255.4 million (US$39.1 million) in the fourth quarter of 2020, compared to net cash inflow of RMB136.3 million in the corresponding period in 2019, primarily due to share repurchase since December 2020. Net cash outflow from the Company's financing activities during the full year 2020 was RMB371.4 million (US$56.9 million), compared to RMB543.3 million cash inflow during the full year 2019. The cash outflow for 2020 was mainly due to share repurchase since December 2020.

NOTE TO FINANCIAL INFORMATION

As of the date of this press release, we are still in the process of reviewing the financial results of the funds of funds we manage and invest in as the general partner or manager.  Any changes in the fair value of those investments could affect the income from equity in affiliates, net income, net income attributable to Noah shareholders, income per ADS and the balance of investments in affiliates in our consolidated financial statements. While not included in the unaudited preliminary fourth quarter 2020 financial results in this press release, we will include any such fair value adjustments in the audited consolidated financial statements in our 2020 Form 20-F and will make a subsequent announcement when our review conclude, as appropriate.

Update on Share Repurchase

On December 1, 2020, the Company announced that its board of directors authorized a share repurchase program (the "Share Repurchase Program") under which the company may repurchase up to US$100 million worth of its ADSs over the following two years. On February 25, 2021, the Company completed the Share Repurchase Program, with approximately 2,233,769 ADSs representing 1,116,885 ordinary shares repurchased at an average price of US$44.77 per ADS.

2021 FORECAST

Even though the ongoing global spread of a novel strain of coronavirus (COVID-19) still have notably slowed down the global economy recovery especially for various travel bans set in Hong Kong which puts severe restrictions on distribution of our offshore insurance products to our clients, the Company is excited to see a strong momentum in the transaction value of standardized products being offered in 2020 and remains reasonably optimistic about the moderate growth in its total transaction value, net revenue as well as its key client base in 2021. In the meantime, with the all-round expansion strategy in sight as well as the commitment to further advance its technology and digitalization, the Company has decided to further increase its investment in talents, IT infrastructure and online platform development as well as client experience, and expects to spend around 4-6% of its total net revenue in such investment in 2021. Given the above considerations, the 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 forecast reflects management's current business outlook and is subject to further change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's fourth quarter and full year 2020 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details




Date/Time:

 

Monday, March 15, 2021 at 8:00 p.m., U.S. Eastern Time

Tuesday, March 16, 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

800-963976

- International

+1-412-317-6061

Conference Title:

Noah Holdings Fourth Quarter 2020 Earnings Call

Participant Password:

9945089

A telephone replay will be available starting approximately one hour after the end of the conference call until March 22, 2021 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10152670.

A live and archived webcast of the conference call will be available at Noah's investor relations website under the News & Events 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-recurring 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) is a leading wealth and asset management service provider in China with a focus on high net worth individuals. In the full year 2020, Noah distributed RMB94.7 billion (US$14.5 billion) of financial products. Through Gopher Asset Management, Noah had assets under management of RMB152.8 billion (US$23.4 billion) as of December 31, 2020.

Noah's wealth management business primarily distributes diversified financial products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,231 relationship managers across 80 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, United States, Canada, Australia and Singapore. The Company's wealth management business had 360,637 registered clients as of December 31, 2020. As a leading alternative multi-asset manager in China, Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities, credit to multi-strategy investments denominated in Renminbi and other currencies. The Company also provides lending services and 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 2020 and full year ended December 31, 2020 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 RMB6.5250 to US$1.00, the effective noon buying rate for December 31, 2020 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; investment risks associated with financial 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


September
30,


December 31,


December
31,


2020


2020


2020


RMB'000


RMB'000


USD'000

Assets







Current assets:








Cash and cash equivalents

4,597,443


5,005,211


767,082



Restricted cash

727


9,993


1,531



Short-term investments

55,382


114,928


17,613



Accounts receivable, net

360,189


434,458


66,584



Loans receivable, net

476,730


418,947


64,206



Amounts due from related parties

696,806


520,178


79,721



Other current assets

194,464


199,447


30,567



Total current assets

6,381,741


6,703,162


1,027,304


Long-term investments, net

824,562


536,384


82,205


Investment in affiliates

1,252,054


1,264,685


193,821


Property and equipment, net

250,106


248,669


38,110


Operating lease right-of-use assets, net

291,694


274,154


42,016


Deferred tax assets

178,358


224,240


34,366


Other non-current assets

165,559


148,292


22,726

Total Assets

9,344,074


9,399,586


1,440,548







Liabilities and Equity







Current liabilities:








Accrued payroll and welfare expenses

510,043


705,622


108,141



Income tax payable

136,582


140,777


21,575



Deferred revenues

125,092


71,613


10,975



Other current liabilities

318,964


354,822


54,379



Contingent liability

-


530,433


81,292



Total current liabilities

1,090,681


1,803,267


276,362


Operating lease liabilities, non-current

289,076


272,212


41,718


Deferred tax liabilities

53,891


45,881


7,032


Other non-current liabilities

867


855


131


Total Liabilities 

1,434,515


2,122,215


325,243


Equity

7,909,559


7,277,371


1,115,305

Total Liabilities and Equity

9,344,074


9,399,586


1,440,548

 

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(unaudited)


Three months ended 


December 31,


December 31,


December 31,


Change


2019


2020


2020



Revenues:

RMB'000


RMB'000


USD'000



Revenues from others:








   One-time commissions

150,494


229,744


35,210


52.7%

   Recurring service fees

125,851


199,372


30,555


58.4%

   Performance-based income

15,909


81,488


12,489


412.2%

   Other service fees

105,691


39,361


6,032


(62.8%)

Total revenues from others

397,945


549,965


84,286


38.2%

Revenues from funds Gopher
  manages:








   One-time commissions

10,659


43,531


6,671


308.4%

   Recurring service fees

342,658


239,144


36,650


(30.2%)

   Performance-based income

41,981


126,382


19,369


201.0%

Total revenues from funds
  Gopher manages

395,298


409,057


62,690


3.5%

Total revenues

793,243


959,022


146,976


20.9%

Less: VAT related surcharges 

(4,900)


(5,805)


(890)


18.5%

Net revenues

788,343


953,217


146,086


20.9%

Operating costs and expenses:








  Compensation and benefits








   Relationship manager 
   compensation








(133,306)

(185,926)

(28,494)

39.5%

   Others

(240,808)


(259,872)


(39,827)


7.9%

Total compensation and
   benefits








(374,114)

(445,798)

(68,321)

19.2%

Selling expenses

(77,741)


(94,648)


(14,505)


21.7%

General and administrative
   expenses 








(101,294)

(84,036)

(12,879)

(7.0%)

  Provision for credit losses

(78,718)


1,789


274


N.A.

  Other operating expenses 

(42,064)


(22,579)


(3,460)


(46.3%)

  Government grants 

11,862


27,518


4,217


132.0%

Total operating costs and
  expenses 








(662,069)

(617,754)

(94,674)

(6.7%)

Income from operations 

126,274


335,463


51,412


165.7%

Other income (expense):








  Interest income 

22,977


22,537


3,454


(1.9%)

  Investment loss

(17,725)


(109,397)


(16,766)


517.2%.

  Settlement expense

-


(1,828,907)


(280,292)


N.A.

  Other expense

(308)


(5,033)


(771)


1534.1%

Total other income (expense)

4,944


(1,920,800)


(294,375)


N.A.

Income (loss) before taxes and
  income from equity in
  affiliates

131,218


(1,585,337)


(242,963)


N.A.

Income tax expense

(28,174)


(27,430)


(4,204)


(2.6%)

Income from equity in affiliates

14,883


39,836


6,105


167.7%

Net income (loss)

117,927


(1,572,931)


(241,062)


N.A.

Less: net income attributable to
  non-controlling interests








15,134

576

88

(96.2%)

Net income (loss) attributable
  to Noah shareholders 

102,793


(1,573,507)


(241,150)


N.A.









Income (loss) per ADS, basic

1.67


(24.92)


(3.82)


N.A.

Income (loss) per ADS, diluted

1.66


(24.92)


(3.82)


N.A.









Margin analysis:


Operating margin

16.0%


35.2%


35.2%



Net margin

15.0%


(165.0%)


(165.0%)











Weighted average ADS
  equivalent[1]:

Basic

61,532,722


63,149,844


63,149,844



Diluted

61,900,487


63,149,844


63,149,844



ADS equivalent outstanding at
  end of period








61,599,313

61,088,680

61,088,680










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

 

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(unaudited)


Twelve months ended 


December 31,


December 31,


December 31,


Change


2019


2020


2020



Revenues:

RMB'000


RMB'000


USD'000



Revenues from others:








One-time commissions

690,860


679,014


104,063


(1.7%)

Recurring service fees

524,692


700,157


107,304


33.4%

Performance-based income

23,437


180,529


27,667


670.3%

Other service fees

522,958


196,151


30,061


(62.5%)

Total revenues from others

1,761,947


1,755,851


269,095


(0.3%)

Revenues from funds Gopher
  manages:








One-time commissions

240,808


129,823


19,896


(46.1%)

Recurring service fees

1,320,773


1,230,042


188,512


(6.9%)

Performance-based income

89,648


208,996


32,030


133.1%

Total revenues from funds
  Gopher manages

1,651,229


1,568,861


240,438


(5.0%)

Total revenues

3,413,176


3,324,712


509,533


(2.6%)

Less: VAT related surcharges 

(21,364)


(18,886)


(2,894)


(11.6%)

Net revenues

3,391,812


3,305,826


506,639


(2.5%)

Operating costs and expenses:








  Compensation and benefits








Relationship manager
compensation








(625,044)

(613,999)

(94,099)

(1.8%)

Others

(985,726)


(890,013)


(136,400)


(9.7%)

  Total compensation and
    benefits








(1,610,770)

(1,504,012)

(230,499)

(6.6%)

  Selling expenses

(331,346)


(271,692)


(41,639)


(18.0%)

  General and administrative
    expenses 

(296,492)


(277,879)


(42,587)


(6.3%)

  Provision for credit losses

(130,723)


(8,083)


(1,239)


(93.8%)

  Other operating expenses 

(196,793)


(99,040)


(15,179)


(49.7%)

  Government grants 

89,278


113,356


17,373


27.0%

Total operating costs and
  expenses 








(2,476,846)

(2,047,350)

(313,770)

(17.3%)

Income from operations 

914,966


1,258,476


192,869


37.5%

Other income (expense):








  Interest income 

89,099


67,317


10,317


(24.4%)

  Interest expenses

(430)


-


-


N.A.

  Investment loss

(28,620)


(86,369)


(13,237)


201.8%.

  Settlement expenses

--


(1,828,907)


(280,292)


N.A.

  Other income (expense)

(7,040)


4,164


638


N.A.

Total other income (expense)

53,009


(1,843,795)


(282,574)


N.A.

Income (loss) before taxes and
  income from equity in
  affiliates

967,975


(585,319)


(89,705)


N.A.

Income tax expense

(220,025)


(258,460)


(39,611)


17.5%

Income from equity in affiliates

115,809


100,257


15,365


(13.4%)

Net income (loss)

863,759


(743,522)


(113,951)


N.A.

Less: net income attributable to
  non-controlling interests








34,608

1,703

261

(95.1%)

Net income (loss) attributable
  to Noah shareholders 

829,151


(745,225)


(114,212)


N.A.









Income (loss) per ADS, basic

13.56


(12.01)


(1.84)


N.A.

Income (loss) per ADS, diluted

13.42


(12.01)


(1.84)


N.A.









Margin analysis:

Operating margin

27.0%


38.1%


38.1%



Net margin

25.5%


(22.5%)


(22.5%)











Weighted average ADS
  equivalent[1]:

Basic

61,160,362


62,040,878


62,040,878



Diluted

61,848,191


62,040,878


62,040,878



ADS equivalent outstanding at
  end of period








61,599,313

61,088,680

61,088,680










[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


2019


2020


2020




RMB'000


RMB'000


USD'000



Net income (loss)

117,927


(1,572,931)


(241,062)


N.A.

Other comprehensive income, net of tax:








Foreign currency translation adjustments

(81,693)


(98,385)


(15,078)


20.4%

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

7


-


-


N.A.

Comprehensive income (loss)

36,241


(1,671,316)


(256,140)


N.A.

Less: Comprehensive income attributable
to non-controlling interests

15,090


469


72


(96.9%)

Comprehensive income (loss)
attributable to Noah
shareholders

21,151


(1,671,785)


(256,212)


N.A.

 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)


Twelve months ended 




December
31,


December
31,


December
31,


Change


2019


2020


2020




RMB'000


RMB'000


USD'000



Net income (loss)

863,759


(743,522)


(113,951)


N.A.

Other comprehensive income, net of tax:








Foreign currency translation adjustments

61,601


(176,910)


(27,113)


N.A.

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

(797)


771


118


N.A.

Comprehensive income (loss)

924,563


(919,661)


(140,946)


N.A.

Less: Comprehensive income attributable
to non-controlling interests

34,558


1,727


265


(95.0%)

Comprehensive income (loss)
attributable to Noah
shareholders

890,005


(921,388)


(141,211)


N.A.

 

 

Noah Holdings Limited

Supplemental Information

(unaudited)


As of




December 31,
2019


December 31,
2020


Change







Number of registered clients 

293,760


360,637


22.8%

Number of relationship managers 

1,288


1,231


(4.4%)

Number of cities in mainland China under
   coverage

82


80


(2.4%)








Three months ended




December 31,
2019


December 31,
2020


Change


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

Number of active clients[5]

4,512


5,268


16.8%

Number of active clients including mutual fund
clients

15,535


19,501


25.5%

Transaction value:






Public securities products

9,708


15,217


56.7%

Private equity products

1,811


5,172


185.6%

Credit products

948


89


(90.6%)

Other products

703


841


19.6%

Total transaction value

13,170


21,319


61.9%








Twelve months ended




December 31,
2019


December 31,
2020


Change


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

Number of active clients

14,538


12,161


(16.4%)

Number of active clients including mutual fund
clients

31,495


34,213


8.6%

Transaction value:






Public securities products

26,378


73,143


177.3%

Private equity products

14,279


17,876


25.2%

Credit products

34,316


616


(98.2%)

Other products

3,551


3,101


(12.7%)

Total transaction value

78,524


94,736


20.6%













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

 

 

 

Noah Holdings Limited

Segment Condensed Income Statements

 (unaudited)


Three months ended December 31, 2020


Wealth
Management

 Business


Asset
Management

Business


Lending and
other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others








One-time commissions

229,418


326


-


229,744

Recurring service fees

198,347


1,025


-


199,372

Performance-based income

81,351


137


-


81,488

Other service fees

29,484


5,804


4,073


39,361

Total revenues from others

538,600


7,292


4,073


549,965

Revenues from funds Gopher manages








One-time commissions

7,710


35,821


-


43,531

Recurring service fees

100,651


138,493


-


239,144

Performance-based income

-


126,382


-


126,382

Total revenues from funds Gopher
     manages

108,361


300,696


-


409,057

Total revenues

646,961


307,988


4,073


959,022

Less: VAT related surcharges

(3,770)


(1,957)


(78)


(5,805)

Net revenues

643,191


306,031


3,995


953,217

Operating costs and expenses:








Compensation and benefits








Relationship managers

(185,471)


-


(455)


(185,926)

Others

(120,349)


(124,714)


(14,809)


(259,872)

Total compensation and benefits

(305,820)


(124,714)


(15,264)


(445,798)

Selling expenses

(84,160)


(9,822)


(666)


(94,648)

General and administrative
  expenses

(58,837)


(18,291)


(6,908)


(84,036)

Provision for credit losses

3,113


(251)


(1,073)


1,789

Other operating expenses

(18,287)


(1,435)


(2,857)


(22,579)

Government grants

27,100


316


102


27,518

Total operating costs and expenses

(436,891)


(154,197)


(26,666)


(617,754)

Income (loss) from operations

206,300


151,834


(22,671)


335,463

 

 

Noah Holdings Limited


Segment Condensed Income Statements


(unaudited)





Three months ended December 31, 2019



Wealth
Management
Business


Asset
Management
Business


Lending and
other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others








One-time commissions

149,806


688


-


150,494

Recurring service fees

124,872


979


-


125,851

Performance-based income

15,909


-


-


15,909

Other service fees

47,594


718


57,379


105,691

Total revenues from others

338,181


2,385


57,379


397,945

Revenues from funds Gopher
  manages








One-time commissions

9,344


1,315


-


10,659

Recurring service fees

183,119


159,539


-


342,658

Performance-based income

-


41,981


-


41,981

Total revenues from funds Gopher
  manages

192,463


202,835


-


395,298

Total revenues

530,644


205,220


57,379


793,243

Less: VAT related surcharges 

(2,707)


(1,098)


(1,095)


(4,900)

Net revenues

527,937


204,122


56,284


788,343

Operating costs and expenses:








Compensation and benefits








Relationship managers

(133,306)


-


-


(133,306)

Others

(143,475)


(75,072)


(22,261)


(240,808)

Total compensation and benefits

(276,781)


(75,072)


(22,261)


(374,114)

Selling expenses

(64,026)


(9,099)


(4,616)


(77,741)

General and administrative
  expenses 

 

(64,375)


(27,485)


(9,434)


(101,294)

Provision for doubtful credit looses

(74,163)


(1,165)


(3,390)


(78,718)

Other operating expenses

(22,676)


(3,190)


(16,198)


(42,064)

Government grants 

8,925


2,870


67


11,862

Total operating costs and expenses 

(493,096)


(113,141)


(55,832)


(662,069)

Income from operations

34,841


90,981


452


126,274

 

 

 

Noah Holdings Limited


Segment Condensed Income Statements


(unaudited)





Twelve months ended December 31, 2020



Wealth
Management
Business


Asset
Management
Business


Lending and
other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others








One-time commissions

677,726


1,288


-


679,014

Recurring service fees

697,140


3,017


-


700,157

Performance-based income

180,385


144


-


180,529

Other service fees

123,458


7,451


65,242


196,151

Total revenues from others

1,678,709


11,900


65,242


1,755,851

Revenues from funds Gopher
  manages








One-time commissions

88,520


41,303


-


129,823

Recurring service fees

587,307


642,735


-


1,230,042

Performance-based income

24,920


184,076


-


208,996

Total revenues from funds Gopher
  manages

700,747


868,114


-


1,568,861

Total revenues

2,379,456


880,014


65,242


3,324,712

Less: VAT related surcharges 

(13,123)


(4,521)


(1,242)


(18,886)

Net revenues

2,366,333


875,493


64,000


3,305,826

Operating costs and expenses:








Compensation and benefits








Relationship managers

(613,101)


-


(898)


(613,999)

Others

(486,668)


(339,691)


(63,654)


(890,013)

Total compensation and benefits

(1,099,769)


(339,691)


(64,552)


(1,504,012)

Selling expenses

(228,853)


(34,302)


(8,537)


(271,692)

General and administrative
  expenses 

(197,511)


(59,440)


(20,928)


(277,879)

Provision for credit losses

(3,785)


(251)


(4,047)


(8,083)

Other operating expenses

(76,983)


(6,443)


(15,614)


(99,040)

Government grants 

58,046


24,443


30,867


113,356

Total operating costs and expenses 

(1,548,855)


(415,684)


(82,811)


(2,047,350)

Income (loss) from operations

817,478


459,809


(18,811)


1,258,476

 

 

 

Noah Holdings Limited


Segment Condensed Income Statements


(unaudited)





Twelve months ended December 31, 2019



Wealth
Management
Business


Asset
Management
Business


Lending and
other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others








One-time commissions

688,652


2,208


-


690,860

Recurring service fees

520,013


4,679


-


524,692

Performance-based income

23,333


104


-


23,437

Other service fees

222,912


4,274


295,772


522,958

Total revenues from others

1,454,910


11,265


295,772


1,761,947

Revenues from funds Gopher
  manages








One-time commissions

239,409


1,399


-


240,808

Recurring service fees

635,437


685,336


-


1,320,773

Performance-based income

97


89,551


-


89,648

Total revenues from funds Gopher
  manages

874,943


776,286


-


1,651,229

Total revenues

2,329,853


787,551


295,772


3,413,176

Less: VAT related surcharges 

(10,574)


(3,971)


(6,819)


(21,364)

Net revenues

2,319,279


783,580


288,953


3,391,812

Operating costs and expenses:








Compensation and benefits








Relationship managers

(625,044)


-


-


(625,044)

Others

(607,336)


(279,895)


(98,495)


(985,726)

Total compensation and benefits

(1,232,380)


(279,895)


(98,495)


(1,610,770)

Selling expenses

(287,541)


(26,661)


(17,144)


(331,346)

General and administrative
  expenses 

(194,908)


 

(71,805)


 

(29,779)


 

(296,492)

Provision for credit losses

(121,572)


(3,800)


(5,351)


(130,723)

Other operating expenses

(103,846)


(25,978)


(66,969)


(196,793)

Government grants 

58,704


15,878


14,696


89,278

Total operating costs and expenses 

(1,881,543)


(392,261)


(203,042)


(2,476,846)

Income from operations

437,736


391,319


85,911


914,966

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

 (unaudited)


Three months ended December 31, 2020


Wealth
Management

 Business


Asset
Management

Business


Lending and
Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

513,690


262,719


4,073


780,482

Hong Kong

114,285


39,536


-


153,821

Others

18,986


5,733


-


24,719

Total revenues

646,961


307,988


4,073


959,022

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

 (unaudited)


Three months ended December 31, 2019


Wealth
Management

 Business


Asset
Management

Business


Lending and
Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

324,935


173,100


57,379


555,414

Hong Kong

135,164


28,480


-


163,644

Others

70,545


3,640


-


74,185

Total revenues

530,644


205,220


57,379


793,243

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

 (unaudited)


Twelve months ended December 31, 2020


Wealth
Management

 Business


Asset
Management

Business


Lending and
Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

1,787,611


742,743


65,242


2,595,596

Hong Kong

452,810


111,431


-


564,241

Others

139,035


25,840


-


164,875

Total revenues

2,379,456


880,014


65,242


3,324,712




Twelve months ended December 31, 2019


Wealth
Management

 Business


Asset
Management

Business


Lending and
Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

1,494,742


676,837


295,772


2,467,351

Hong Kong

633,168


99,957


-


733,125

Others

201,943


10,757


-


212,700

Total revenues

2,329,853


787,551


295,772


3,413,176

 

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)[6]


Three months ended





December 31,


December 31,


Change



2019


2020





RMB'000


RMB'000











Net income (loss) attributable to Noah shareholders

102,793


(1,573,507)


N.A.


Adjustment for share-based compensation

20,977


9,041


(56.9%)


Add: settlement expense

-


1,828,907


N.A.


Less: tax effect of adjustments

5,039


1,985


(60.6%).


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

118,731


262,456


121.1%









Net margin attributable to Noah shareholders

13.0%


(165.1%)




Non-GAAP net margin attributable to Noah shareholders

15.1%


27.5%











Net income (loss) attributable to Noah shareholders per
   ADS, diluted

1.66


(24.92)


N.A.


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

1.92


4.13


115.1%












 

[6]   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, non-recurring settlement expense and net of relevant tax impact, if any. Starting from this quarter, we have excluded the Non-GAAP adjustment related to fair value changes of equity securities (unrealized) and adjustment for sale of equity securities and their related tax impact because the impact of adopting ASU 2016-01 has been reflected in all periods presented. We have also revised the comparative period presentation to conform to current period measurement.

 

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)


Twelve months ended





December 31


December 31


Change



2019


2020





RMB'000


RMB'000











Net income (loss) attributable to Noah shareholders

829,151


(745,225)


N.A.


Adjustment for share-based compensation

94,897


59,789


(37.0%)


Add: settlement expense

-


1,828,907


N.A.


Less: tax effect of adjustments

22,346


13,821


(38.2%).


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

901,702


1,129,650


 

25.3%

 









Net margin attributable to Noah shareholders

24.4%


(22.5%)




Non-GAAP net margin attributable to Noah shareholders

26.6%


34.2%











Net income (loss) attributable to Noah shareholders per
  ADS, diluted

 

13.42


 

(12.01)


N.A.


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

 

14.59


 

18.12


24.2%












 

Cision View original content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-preliminary-financial-results-for-the-fourth-quarter-and-full-year-2020-301247615.html

SOURCE Noah Holdings Limited

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


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