Noah Holdings Limited Announces Unaudited Preliminary Financial Results for the Fourth Quarter and Full Year 2021

Mar 14, 2022

SHANGHAI, March 14, 2022 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors, today announced its unaudited preliminary[1] financial results for the fourth quarter of 2021 and the full year ended December 31, 2021.

FOURTH QUARTER 2021 FINANCIAL HIGHLIGHTS

  • Net revenues for the fourth quarter of 2021 were RMB1,260.1 million (US$197.7 million), a 32.2% increase from the corresponding period in 2020, and a 38.6% increase compared with third quarter of 2021, mainly due to increases in one-time commissions.

(RMB millions,

except percentages)

Q4 2020

 

Q4 2021

 

YoY Change

Wealth management

643.2

 

969.3

 

50.7%

Asset management

306.0

 

273.8

 

(10.5%)

Other businesses

4.0

 

17.0

 

325.5%

Total net revenues

953.2

 

1,260.1

 

32.2%

  • Income from operations for the fourth quarter of 2021 was RMB132.3 million (US$20.8 million), a 60.6% decrease from the corresponding period in 2020, due to our budgeted continuing strategic investments on talents and client experiences in 2021 and provision for credit loss for our lending business in the fourth quarter of 2021.

(RMB millions,

except percentages)

Q4 2020

 

Q4 2021

 

YoY Change

Wealth management

206.3

 

183.6

 

(11.0%)

Asset management

151.8

 

80.8

 

(46.8%)

Other businesses

(22.6)

 

(132.1)

 

481.9%

Total income from operations

335.5

 

132.3

 

(60.6%)

  • Net income attributable to Noah shareholders for the fourth quarter of 2021 was RMB281.3 million (US$44.1 million), compared to net loss attributable to Noah shareholders of RMB1,573.5 million from the corresponding period in 2020, due to the recognition of a one-off settlement expense related to the settlement plan for investors of certain credit funds involving Camsing announced on August 25, 2020 (the "Camsing settlement") in the amount of RMB1,828.9 million in 2020, and a 3.0% increase compared with the third quarter of 2021.
  • Non-GAAP[2] net income attributable to Noah shareholders for the fourth quarter of 2021 was RMB289.6 million (US$45.4 million), a 10.3% increase from the corresponding period in 2020, and a 1.9% increase from the third quarter of 2021.

[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 income, net income attributable to Noah shareholders, income 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 2021 and subsequent reporting if necessary.

[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 2021 FINANCIAL HIGHLIGHTS

  • Net revenues in the full year 2021 were RMB4,293.1 million (US$673.7 million), a 29.9% increase from the full year 2020, mainly due to increases in one-time commissions, recurring service fees as well as performance-based income.

(RMB millions,

except percentages)

FY 2020

 

FY 2021

 

YoY Change

Wealth management

2,366.3

 

3,194.9

 

35.0%

Asset management

875.5

 

1,041.5

 

19.0%

Other businesses

64.0

 

56.7

 

(11.4%)

Total net revenues

3,305.8

 

4,293.1

 

29.9%

  • Income from operations in the full year 2021 was RMB1,198.9 million (US$188.1 million), a 4.7% decrease from the full year 2020, due to budgeted continuing strategic investments on talents and client experiences in 2021 as well as less selling and general and administrative expense incurred in 2020 due to the pandemic. We also recorded provision for credit loss for our lending business in 2021.

(RMB millions,

except percentages)

FY 2020

 

FY 2021

 

YoY Change

Wealth management

817.5

 

921.5

 

12.7%

Asset management

459.8

 

485.2

 

5.5%

Other businesses

(18.8)

 

(207.8)

 

1,004.8%

Total income from operations

1,258.5

 

1,198.9

 

(4.7%)

  • Net income attributable to Noah shareholders in the full year 2021 was RMB1,314.1 million (US$206.2 million), compared to net loss attributable to Noah shareholders of RMB745.2 million from the full year 2020, due to the recognition of a one-off settlement expense related to the Camsing settlement in the amount of RMB1,828.9 million in 2020.
  • Non-GAAP net income attributable to Noah shareholders in the full year 2021 was RMB1,372.7 million (US$215.4 million), a 21.5% increase from the full year 2020.

FOURTH QUARTER AND FULL YEAR 2021 OPERATIONAL UPDATES

Wealth Management Business

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

  • Total number of registered clients as of December 31, 2021 was 411,981, a 14.2% increase from December 31, 2020 and a 1.4% increase compared with September 30, 2021.
  • Total number of active clients[3] which excluded mutual fund-only clients during the fourth quarter of 2021 was 3,575, a 32.1% decrease from the corresponding period in 2020, affected by volatile market condition. Counting in mutual fund-only clients, the total number of clients who transacted with us during the fourth quarter of 2021 was 17,456, a 10.5% decrease from the corresponding quarter of 2020. Total number of active clients which excluded mutual fund-only clients during the full year 2021 was 12,831, a 5.5% increase from the full year 2020, and total number of active clients counting in mutual fund-only clients during the full year 2021 was 42,764, a 25.0% increase from the full year 2020.
  • Aggregate value of investment products distributed during the fourth quarter of 2021 was RMB21.0 billion (US$3.3 billion), a 1.3% decrease from the corresponding period in 2020, mainly due to a volatile market conditions in the quarter.

Product type

Three months ended December 31,

 

2020

 

2021

 

(RMB in billions, except percentages)

Mutual fund products

7.2

 

34.0%

 

10.2

 

48.5%

Private secondary products

8.0

 

37.4%

 

6.7

 

31.6%

Private equity products

5.2

 

24.3%

 

3.0

 

14.5%

Other products[4]

0.9

 

4.3%

 

1.1

 

5.4%

All products

21.3

 

100.0%

 

21.0

 

100.0%

  • Aggregate value of investment products distributed during the full year 2021 was RMB97.2 billion (US$15.3 billion), a 2.6% increase from the full year 2020, due to an increase in the distribution of private secondary products.

Product type

Twelve months ended December 31,

 

2020

2021

 

(RMB in billions, except percentages)

         

Mutual fund products

38.0

40.1%

37.1

38.2%

Private secondary products

35.2

37.1%

37.8

38.9%

Private equity products

17.9

18.9%

18.1

18.6%

Other products

3.6

3.9%

4.2

4.3%

All products

94.7

100.0%

97.2

100.0%

  • Coverage network in mainland China included 84 cities as of December 31, 2021, compared with 81 cities as of September 30, 2021, and 80 cities as of December 31, 2020.
  • Number of relationship managers was 1,316 as of December 31, 2021, a 0.5% decrease from September 30, 2021, and a 6.9% increase from December 31, 2020.

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

[4] "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, 2021 remained relatively stable in the amount of RMB156.0 billion (US$24.5 billion), compared with September 30, 2021 and grew 2.1% from December 31, 2020.

Investment type

As of
September 30,
2021

 

Growth

 

Allocation/

Redemption

 

As of
December 31,
2021

 

(RMB billions, except percentages)

Private equity

130.4

 

83.5%

 

2.3

 

1.8

 

130.9

 

83.9%

Public securities[5]

11.1

 

7.1%

 

1.2

 

1.1

 

11.2

 

7.2%

Real estate

7.4

 

4.7%

 

0.1

 

0.9

 

6.6

 

4.3%

Multi-strategies

5.8

 

3.8%

 

0.2

 

0.1

 

5.9

 

3.8%

Others

1.4

 

0.9%

 

-

 

-

 

1.4

 

0.8%

All Investments

156.1

 

100.0%

 

3.8

 

3.9

 

156.0

 

100.0%

 
 

Investment type

As of
December 31,
2020

 

Growth

 

Allocation/

Redemption

 

As of
December 31,
2021

 

(RMB billions, except percentages)

Private equity

117.7

 

77.0%

 

15.3

 

2.1

 

130.9

 

83.9%

Public securities

9.8

 

6.4%

 

5.4

 

4.0

 

11.2

 

7.2%

Real estate

12.7

 

8.3%

 

0.3

 

6.4

 

6.6

 

4.3%

Multi-strategies

7.1

 

4.6%

 

1.0

 

2.2

 

5.9

 

3.8%

Others[6]

5.5

 

3.7%

 

-

 

4.1

 

1.4

 

0.8%

All Investments

152.8

 

100.0%

 

22.0

 

18.8

 

156.0

 

100.0%

 

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

[6] Since the first quarter of 2021, we reclassified all remaining mezzanine financing products linked to corporate merger and acquisitions and buy outs from credit to private equity in the amount of RMB4.7 billion, considering its nature is more akin to equity than credit. We have also revised the comparative period presentation to conform to current period presentation.

Other Businesses

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

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "Despite the market volatilities we experienced, Noah delivered record high net revenues in the fourth quarter of 2021. Total net revenues rose by 29.9% year-on-year, supported by higher one-time commissions, recurring service fees and performance based income. Our internal strategic investments into digitalization, talent acquisition and client services were all in line with the budget, and helped the Group to report a non-GAAP net income of RMB1.4 billion for the full year, exceeding the higher end of the guidance we had expected. Our clients remained active, with the number of total active clients increased by 25.0% year-on-year in 2021, and I am very happy to see the number of diamond card and black card clients grew 18.2% in 2021, indicating the positive results of our upgraded Noah Triangle client service model and our "client-centric" reform. I remain confident in Noah's capabilities and that our reform will help to gain more market share and core clients, as well as set a solid structural foundation for long-term growth."

FOURTH QUARTER 2021 FINANCIAL RESULTS

Net Revenues

Net revenues for the fourth quarter of 2021 were RMB1,260.1 million (US$197.7 million), a 32.2% increase from the corresponding period in 2020, primarily driven by increased one-time commissions, recurring service fees and other service fees, and partially offset by decreased performance-based income.

  • Wealth Management Business
    • Net revenues from one-time commissions for the fourth quarter of 2021 were RMB472.0 million (US$74.1 million), a 100.2% increase from the corresponding period in 2020 due to an increase in insurance products distributed in fourth quarter of 2021.
    • Net revenues from recurring service fees for the fourth quarter of 2021 were RMB417.0 million (US$65.4 million), a 40.3% increase from the corresponding period in 2020. The increase was primarily due to accumulated effect of investment products previously distributed.
    • Net revenues from performance-based income for the fourth quarter of 2021 were RMB47.7 million (US$7.5 million), compared with RMB80.9 million from the corresponding period of 2020, primarily due to a decrease in performance-based income from public securities products.
    • Net revenues from other service fees for the fourth quarter of 2021 were RMB32.6 million (US$5.1 million), a 11.2% increase from the corresponding period in 2020.
  • Asset Management Business
    • Net revenues from recurring service fees for the fourth quarter of 2021 were RMB141.1 million (US$22.1 million), a 1.7% increase from the corresponding period in 2020. The increase was primarily due to an increase in assets under management.
    • Net revenues from performance-based income for the fourth quarter of 2021 were RMB125.4 million (US$19.7 million), remained relatively stable compared with the corresponding period in 2020, primarily generated from offshore private equity funds.
  • Other Businesses
    • Net revenues for the fourth quarter of 2021 were RMB17.0 million (US$2.7 million), compared with RMB4.0 million in the corresponding period in 2020.

Operating Costs and Expenses

Operating costs and expenses for the fourth quarter of 2021 were RMB1,127.8 million (US$177.0 million), a 82.6% increase from the corresponding period in 2020. Operating costs and expenses primarily consisted of compensation and benefits of RMB731.2 million (US$114.7 million), selling expenses of RMB139.9 million (US$22.0 million), general and administrative expenses of RMB148.0 million (US$23.2 million), provision of credit losses of RMB100.9 million (US$15.8 million) and other operating expenses of RMB19.6 million (US$3.1 million).

  • Operating costs and expenses for the wealth management business for the fourth quarter of 2021 were RMB785.7 million (US$123.3 million), a 79.8% increase from the corresponding period in 2020 primarily due to an increase in compensation and benefits, selling expenses and general and administrative expenses.
  • Operating costs and expenses for the asset management business for the fourth quarter of 2021 were RMB193.0 million (US$30.3 million), a 25.2% increase from the corresponding period in 2020, primarily due to an increase in selling expenses and provision for credit losses.
  • Operating costs and expenses for other businesses for the fourth quarter of 2021 were RMB149.0 million (US$23.4 million), a 458.9% increase from the corresponding period in 2020, primarily due to a provision of credit loss of RMB85.6 million for loan receivables.

Operating Margin

Operating margin for the fourth quarter of 2021 was 10.5%, compared with 35.2% for the corresponding period in 2020.

  • Operating margin for the wealth management business for the fourth quarter of 2021 was 18.9%, compared with 32.1% for the corresponding period in 2020, due to continuously budgeted investments into the acquisition and retaining of talents, as well as the upgrade of client experiences and multiple systems.
  • Operating margin for the asset management business for the fourth quarter of 2021 was 29.5%, compared with 49.6% for the corresponding period in 2020 due to continuously budgeted investments in client events activity and talents.
  • Loss from other businesses for the fourth quarter of 2021 was RMB132.1 million (US$20.7 million), compared with RMB22.7 million in the corresponding period of 2020 due to increased provision for credit losses.

Investment Income

Investment Income for the fourth quarter of 2021 was RMB3.5 million (US$0.5 million), compared with investment loss of RMB109.4 million for the corresponding period in 2020. The loss in 2020 was primarily due to an impairment of certain long-term investment.

Income Tax Expenses

Income tax expenses for the fourth quarter of 2021 were RMB35.3 million (US$5.5 million), a 28.8% increase from the corresponding period in 2020, primarily due to higher taxable income. 

Income from Equity in Affiliates

Income from equity in affiliates for the fourth quarter of 2021 was RMB160.5 million (US$25.2 million), compared with RMB39.8 million in the corresponding period in 2020. The increase was primarily due to fair value increase of the underling investments of the funds that we manage. 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 income for the fourth quarter of 2021 was RMB273.9 million (US$43.0 million), compared to net loss of RMB1,572.9 million from the corresponding period in 2020.
    • Net margin for the fourth quarter of 2021 was 21.7%, compared with negative net margin for the corresponding period in 2020.
    • Net income attributable to Noah shareholders for the fourth quarter of 2021 was RMB281.3 million (US$44.1 million), compared to net loss attributable to Noah shareholders of RMB1,573.5 million from the corresponding period in 2020.
    • Net margin attributable to Noah shareholders for the fourth quarter of 2021 was 22.3%, compared with negative for the corresponding period in 2020.
    • Net income attributable to Noah shareholders per basic and diluted ADS for the fourth quarter of 2021 was RMB4.18 (US$0.66) and RMB4.16 (US$0.65), respectively, compared with net loss attributable to Noah shareholders per basic and diluted ADS of RMB24.92, for the corresponding period in 2020.
  • Non-GAAP Net Income Attributable to Noah Shareholders
    • Non-GAAP net income attributable to Noah shareholders for the fourth quarter of 2021 was RMB289.6 million (US$45.4 million), a 10.3% increase from the corresponding period in 2020.
    • Non-GAAP net margin attributable to Noah shareholders for the fourth quarter of 2021 was 23.0%, down from 27.5% for the corresponding period in 2020.
    • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the fourth quarter of 2021 was RMB4.28 (US$0.67), up from RMB4.13 for the corresponding period in 2020.

FULL YEAR 2021 FINANCIAL RESULTS

Net Revenues

Net revenues for the full year 2021 were RMB4,293.1 million (US$673.7 million), a 29.9% increase from the full year 2020, primarily due to an increase in one-time commissions, recurring service fees and performance-based income, and partially offset by a decrease in other service fees. 

  • Wealth Management Business
    • Net revenues from one-time commissions for 2021 were RMB1,174.6 million (US$184.3 million), a 54.1% increase from 2020, primarily due to more insurance products that we distributed.
    • Net revenues from recurring service fees for 2021 were RMB1,461.8 million (US$229.4 million), a 14.4% increase from 2020. The increase was primarily due to the cumulative effect of investment products with recurring service fees previously distributed.
    • Net revenues from performance-based income for 2021 were RMB466.6 million (US$73.2 million), a 128.5% increase from 2020, primarily due to an increase in performance-based income from public securities products.
    • Net revenues from other service fees for 2021 were RMB91.9 million (US$14.4 million), a 25.2% decrease from 2020, primarily due to less service fees recorded from lending business since we significantly reduced this business since the second half year of 2019.
  • Asset Management Business
    • Net revenues from recurring service fees for 2021 were RMB636.4 million (US$99.9 million), a 0.9% decrease from 2020.
    • Net revenues from performance-based income for 2021 were RMB313.6 million (US$49.2 million), a 71.1% increase from 2020, primarily due to an increase in performance-based income from private equity fund products.
  • Other Businesses
    • Net revenues for 2021 were RMB56.7 million (US$8.9 million), a 11.4% decrease from 2020.

Operating costs and expenses

Operating costs and expenses for 2021 were RMB3,094.2 million (US$485.5 million), a 51.1% increase from the full year 2020. Operating costs and expenses for the full year 2021 primarily consisted of compensation and benefits of RMB2,168.9 million (US$340.3 million), selling expenses of RMB437.1 million (US$68.6 million), general and administrative expenses of RMB383.3 million (US$60.2 million), provision for credit losses of RMB113.0 million (US$17.7 million) and other operating expenses of RMB107.8 million (US$16.9 million).

  • Operating costs and expenses for the wealth management business for 2021 were RMB2,273.4 million (US$356.7 million), a 46.8% increase from 2020, primarily due to an increase in compensation and benefits, as well as selling expenses.
  • Operating costs and expenses for the asset management business for 2021 were RMB556.2 million (US$87.3 million), a 33.8% increase from 2020, primarily due to an increase in compensation and benefits, as well as selling expenses.
  • Operating costs and expenses for other businesses for 2021 were RMB264.6 million (US$41.5 million), a 219.5% increase from 2020, primarily due to an increase in provision for credit losses.

Operating Margin

Operating margin for the full year 2021 was 27.9%, compared to 38.1% for the full year 2020.

  • Operating margin for the wealth management business for 2021 was 28.8%, compared to 34.5% for 2020, mainly due to continuously budgeted investments in our talents and client experiences as well as less expenses incurred in 2020 due to the COVID-19 pandemic.
  • Operating margin for the asset management business for 2021 was 46.6%, compared to 52.5% for 2020, due to less expenses incurred in 2020 due to the COVID-19 pandemic.
  • Loss from other businesses for 2021 was RMB207.8 million (US$32.6 million), compared with RMB18.8 million for 2020 due to increased provision of credit losses.

Investment Income

Investment income for the full year 2021 was RMB65.4 million (US$10.3 million), compared with investment loss of RMB86.4 million for the full year 2020. The investment loss was primarily due to an impairment of certain long-term investment.

Income Tax Expenses

Income tax expenses for the full year 2021 were RMB293.9 million (US$46.1 million), a 13.7% increase from the full year 2020 due to higher taxable income.

Income from Equity in Affiliates

Income from equity in affiliates for the full year 2021 was RMB302.0 million (US$47.4 million), compared with RMB100.3 million in the corresponding period in 2020. The increase was primarily due to fair value increase of the underling investments of the funds that we manage. 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 income for the full year 2021 was RMB1,306.1 million (US$205.0 million), compared with net loss of RMB743.5 million from the full year 2020.
    • Net margin for the full year 2021 was 30.4%, compared with negative net margin for the full year 2020.
    • Net income attributable to Noah shareholders for the full year 2021 was RMB1,314.1 million (US$206.2 million), compared to net loss attributable to Noah shareholders of RMB745.2 million for the full year 2020.
    • Net margin attributable to Noah shareholders for the full year 2021 was 30.6%, compared with negative for the full year 2020.
    • Net income attributable to Noah shareholders per basic and diluted ADS for the full year 2021 was RMB19.56 (US$3.07) and RMB19.45 (US$3.05), respectively, compared with net loss attributable to Noah shareholders per basic and diluted ADS of RMB12.01, for the full year 2020.
  • Non-GAAP Net Income Attributable to Noah Shareholders
    • Non-GAAP net income attributable to Noah shareholders for the full year 2021 was RMB1,372.7 million (US$215.4 million), a 21.5% increase from the full year 2020.
    • Non-GAAP net margin attributable to Noah shareholders for the full year 2021 was 32.0%, down from 34.2% for the full year 2020.
    • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the full year 2021 was RMB20.32 (US$3.19), up from RMB18.12 for the full year 2020.

BALANCE SHEET AND CASH FLOW

As of December 31, 2021, the Company had RMB3,404.6 million (US$534.2 million) in cash and cash equivalents, compared with RMB5,005.2 million as of December 31, 2020 and RMB2,829.5 million as of September 30, 2021.

Net cash inflow from the Company's operating activities during the fourth quarter of 2021 was RMB659.2 million (US$103.4 million), compared to RMB568.3 million in the corresponding period in 2020. Net cash inflow from the Company's operating activities during the full year 2021 was RMB1,521.8 million (US$238.8 million), compared to RMB796.3 million during the full year 2020, the variance was mainly due to an increase in net income.

Net cash outflow from the Company's investing activities during the fourth quarter of 2021 was RMB67.4 million (US$10.6 million), compared to net cash inflow of RMB189.5 million in the corresponding period in 2020. Net cash outflow from the Company's investing activities during the full year 2021 was RMB2,572.1 million (US$403.6 million), compared to net cash inflow of RMB352.6 million during the full year 2020, due to cash payment for the acquisition of our new headquarter in 2021.

Net cash inflow from the Company's financing activities was RMB20.9 million (US$3.3 million) in the fourth quarter of 2021, compared to net cash outflow of RMB255.4 million in the corresponding period in 2020, primarily due to the share repurchase program that started in December 2020. Net cash outflow from the Company's financing activities during the full year 2021 was RMB513.1 million (US$80.5 million), compared to RMB371.4 million cash outflow during the full year 2020. The cash outflow for both 2020 and 2021 was mainly due to the share repurchase program that lasted from December 2020 till February 2021.

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 2021 financial results in this press release, we will include any such fair value adjustments in the audited consolidated financial statements in our 2021 Form 20-F and will make a subsequent announcement when our review concludes, as appropriate.

2022 FORECAST

Although the pandemic continued to impact the distribution of offshore insurance products and the market remain volatile, the Company is happy to see a growing demand in domestic insurance products, a higher performance based income from PE/VC products we previously distributed, a stabilized AUM after a successful standardization transformation, as well as an increase in diamond and black card clients. Therefore, we are reasonably optimistic about the growth in the number of core clients, net revenues as well as take rate in 2022. Meanwhile, we remain committed to our investments in technology, investment research capabilities and talents to realize growth potentials and capture market opportunities. Given the above considerations, the non-GAAP net income attributable to Noah shareholders for the full year 2021 will be in the range of RMB1.45 billion to RMB1.55 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 2021 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details

   

Date/Time:

 

Monday, March 14, 2022 at 8:00 p.m., U.S. Eastern Time

Tuesday, March 15, 2022 at 8:00 a.m., Hong Kong Time

Dial in details:

 

- United States Toll Free

+1 888-317-6003

- Mainland China Toll Free

4001-206-115

- Hong Kong Toll Free

800-963-976

- International

+1-412-317-6061

Conference Title:

Noah Holdings 4Q21 Earnings Conference Call

Participant Password:

6337898

A telephone replay will be available starting approximately one hour after the end of the conference call until March 22, 2022 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 1095282.

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

DISCUSSION 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 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 2021, Noah distributed RMB97.2 billion (US$15.3 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB156.0 billion (US$24.5 billion) as of December 31, 2021.

Noah's wealth management business primarily distributes diversified investment products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,316 relationship managers across 84 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, New York, Silicon Valley and Singapore. As a leading alternative multi-asset manager in China, Gopher Asset Management develops and manages assets ranging from private equity, public securities, real estate, multi-strategy to 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 2021 and full year ended December 31, 2021 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.3726 to US$1.00, the effective noon buying rate for December 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the outlook for 2022 and quotations from management in this announcement, as well as Noah's strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with investment products distributed to Noah's investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

Contacts:

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

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)

 

As of

 

September 30,

 

December 31,

 

December 31,

 

2021

 

2021

 

2021

 

RMB'000

 

RMB'000

 

USD'000

Assets

         
 

Current assets:

         
   

Cash and cash equivalents

2,829,481

 

3,404,603

 

534,257

   

Restricted cash

3,227

 

510

 

80

   

Short-term investments

108,313

 

92,803

 

14,563

   

Accounts receivable, net

504,113

 

808,029

 

126,797

   

Loans receivable, net

634,774

 

595,766

 

93,489

   

Amounts due from related parties

594,047

 

451,389

 

70,833

   

Other current assets

209,933

 

163,710

 

25,690

   

Total current assets

4,883,888

 

5,516,810

 

865,709

 

Long-term investments, net

665,237

 

668,572

 

104,914

 

Investment in affiliates

1,296,559

 

1,402,083

 

220,017

 

Property and equipment, net

2,619,768

 

2,580,935

 

405,005

 

Operating lease right-of-use assets, net

242,660

 

223,652

 

35,096

 

Deferred tax assets

223,803

 

335,905

 

52,711

 

Other non-current assets

171,114

 

161,832

 

25,395

Total Assets

10,103,029

 

10,889,789

 

1,708,847

           

Liabilities and Equity

         
 

Current liabilities:

         
   

Accrued payroll and welfare expenses

514,420

 

946,547

 

148,534

   

Income tax payable

105,132

 

190,260

 

29,856

   

Deferred revenues

103,807

 

63,631

 

9,985

   

Contingent liabilities

444,935

 

433,345

 

68,001

   

Other current liabilities

529,049

 

649,255

 

101,882

   

Total current liabilities

1,697,343

 

2,283,038

 

358,258

 

Operating lease liabilities, non-current

155,882

 

130,956

 

20,550

 

Deferred tax liabilities

239,536

 

234,134

 

36,741

 

Other non-current liabilities

113,670

 

100,020

 

15,695

 

Total Liabilities 

2,206,431

 

2,748,148

 

431,244

 

Equity

7,896,598

 

8,141,641

 

1,277,603

Total Liabilities and Equity

10,103,029

 

10,889,789

 

1,708,847

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(unaudited)

 

Three months ended 

 

December 31,

 

December 31,

 

December 31,

 

Change

 

2020

 

2021

 

2021

   

Revenues:

RMB'000

 

RMB'000

 

USD'000

   

Revenues from others:

             

One-time commissions

229,744

 

472,566

 

74,156

 

105.7%

Recurring service fees

199,372

 

214,835

 

33,712

 

7.8%

Performance-based income

81,488

 

42,115

 

6,609

 

(48.3%)

Other service fees

39,361

 

54,296

 

8,520

 

37.9%

Total revenues from others

549,965

 

783,812

 

122,997

 

42.5%

Revenues from funds Gopher manages:

             

One-time commissions

43,531

 

9,886

 

1,551

 

(77.3%)

Recurring service fees

239,144

 

346,747

 

54,412

 

45.0%

Performance-based income

126,382

 

131,988

 

20,712

 

4.4%

Total revenues from funds
   Gopher manages

409,057

 

488,621

       

76,675

19.5%

Total revenues

959,022

 

1,272,433

 

199,672

 

32.7%

Less: VAT related surcharges 

(5,805)

 

(12,379)

 

(1,943)

 

113.2%

Net revenues

953,217

 

1,260,054

 

197,729

 

32.2%

Operating costs and expenses:

             

Compensation and benefits

             

Relationship manager
compensation

             

(185,926)

(382,160)

(59,969)

105.5%

Others

(259,872)

 

(349,004)

 

(54,766)

 

34.3%

Total compensation and
   benefits

             

(445,798)

(731,164)

(114,735)

64.0%

Selling expenses

(94,648)

 

(139,906)

 

(21,954)

 

47.8%

General and administrative
   expenses 

             

(84,036)

(148,015)

(23,227)

76.1%

Reversal (Provision) for credit
   losses

             

1,789

(100,858)

(15,827)

N.A.

Other operating expenses 

(22,579)

 

(19,644)

 

(3,083)

 

(13.0%)

Government grants 

27,518

 

11,821

 

1,855

 

(57.0%)

Total operating costs and
   expenses 

             

(617,754)

(1,127,766)

(176,971)

82.6%

Income from operations 

335,463

 

132,288

 

20,758

 

(60.6%)

Other income (expense):

             

Interest income 

22,537

 

14,571

 

2,287

 

(35.3%)

Investment (loss) income 

(109,397)

 

3,469

 

544

 

N.A.

Settlement (expense) reversal

(1,828,907)

 

719

 

113

 

N.A.

Other expense

(5,033)

 

(2,313)

 

(363)

 

(54.0%)

Total other (expense) income 

(1,920,800)

 

16,446

 

2,581

 

N.A.

(Loss) income before taxes and
   income from equity in
   affiliates

(1,585,337)

         

N.A.

   
   

148,734

23,339

Income tax expense

(27,430)

 

(35,329)

 

(5,544)

 

28.8%

Income from equity in affiliates

39,836

 

160,510

 

25,188

 

302.9%

Net (loss) income 

(1,572,931)

 

273,915

 

42,983

 

N.A.

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

             
       

576

(7,397)

(1,161)

N.A.

Net (loss) income attributable
   to Noah shareholders 

(1,573,507)

         

N.A.

   

281,312

44,144

               

(Loss) income  per ADS, basic

(24.92)

 

4.18

 

0.66

 

N.A.

(Loss) Income per ADS, diluted

(24.92)

 

4.16

 

0.65

 

N.A.

               

Margin analysis:

Operating margin

35.2%

 

10.5%

 

10.5%

   

Net margin

(165.0%)

 

21.7%

 

21.7%

   
               

Weighted average ADS
   equivalent[1]:

Basic

63,149,844

 

67,348,790

 

67,348,790

   

Diluted

63,149,844

 

67,700,437

 

67,700,437

   

ADS equivalent outstanding at
   end of period

             

61,088,680

60,338,054

60,338,054

               
 

[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

 

2020

 

2021

 

2021

   

Revenues:

RMB'000

 

RMB'000

 

USD'000

   

Revenues from others:

             

One-time commissions

679,014

 

1,130,894

 

177,462

 

66.5%

Recurring service fees

700,157

 

913,700

 

143,379

 

30.5%

Performance-based income

180,529

 

391,903

 

61,498

 

117.1%

Other service fees

196,151

 

161,982

 

25,419

 

(17.4%)

Total revenues from others

1,755,851

 

2,598,479

 

407,758

 

48.0%

Revenues from funds Gopher
  manages:

             

One-time commissions

129,823

 

140,522

 

22,051

 

8.2%

Recurring service fees

1,230,042

 

1,195,309

 

187,570

 

(2.8%)

Performance-based income

208,996

 

392,290

 

61,559

 

87.7%

Total revenues from funds
   Gopher manages

1,568,861

           

1,728,121

271,180

10.2%

Total revenues

3,324,712

 

4,326,600

 

678,938

 

30.1%

Less: VAT related surcharges 

(18,886)

 

(33,506)

 

(5,258)

 

77.4%

Net revenues

3,305,826

 

4,293,094

 

673,680

 

29.9%

Operating costs and expenses:

             

Compensation and benefits

             

Relationship manager
compensation

             

(613,999)

(920,896)

(144,509)

50.0%

Others

(890,013)

 

(1,247,984)

 

(195,836)

 

40.2%

Total compensation and
   benefits

             

(1,504,012)

(2,168,880)

(340,345)

44.2%

Selling expenses

(271,692)

 

(437,131)

 

(68,595)

 

60.9%

General and administrative
   expenses 

             

(277,879)

(383,321)

(60,151)

37.9%

Provision for credit losses

(8,083)

 

(112,959)

 

(17,726)

 

1,297.5%

Other operating expenses 

(99,040)

 

(107,844)

 

(16,923)

 

8.9%

Government grants 

113,356

 

115,939

 

18,193

 

2.3%

Total operating costs and
   expenses 

             

(2,047,350)

(3,094,196)

(485,547)

51.1%

Income from operations 

1,258,476

 

1,198,898

 

188,133

 

(4.7%)

Other income (expense):

             

Interest income 

67,317

 

71,866

 

11,277

 

6.8%

Investment (loss) income 

(86,369)

 

65,426

 

10,267

 

N.A.

Settlement expenses

(1,828,907)

 

(19,908)

 

(3,124)

 

(98.9%)

Other income (expense)

4,164

 

(18,240)

 

(2,862)

 

N.A.

Total other (expense) income 

(1,843,795)

 

99,144

 

15,558

 

N.A.

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

(585,319)

         

N.A.

   
   

1,298,042

203,691

Income tax expense

(258,460)

 

(293,940)

 

(46,126)

 

13.7%

Income from equity in affiliates

100,257

 

301,979

 

47,387

 

201.2%

Net (loss) income 

(743,522)

 

1,306,081

 

204,952

 

N.A.

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

             
       

1,703

(8,050)

(1,263)

N.A.

Net (loss) income attributable
   to Noah shareholders 

(745,225)

         

N.A.

1,314,131

206,215

               

(Loss) income per ADS, basic

(12.01)

 

19.56

 

3.07

 

N.A.

(Loss) income per ADS, diluted

(12.01)

 

19.45

 

3.05

 

N.A.

               

Margin analysis:

Operating margin

38.1%

 

27.9%

 

27.9%

   

Net margin

(22.5%)

 

30.4%

 

30.4%

   
               

Weighted average ADS equivalent[1]:

Basic

62,040,878

 

67,171,636

 

67,171,636

   

Diluted

62,040,878

 

67,563,546

 

67,563,546

   

ADS equivalent outstanding at
   end of period

             

61,088,680

60,338,054

60,338,054

               
 

[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

 

2020

 

2021

 

2021

   
 

RMB'000

 

RMB'000

 

USD'000

   

Net (loss) income

(1,572,931)

 

273,915

 

42,983

 

N.A.

Other comprehensive income, net of tax:

             

Foreign currency translation adjustments

(98,385)

 

(14,094)

 

(2,212)

 

(85.7%)

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

-

 

 

(243)

 

 

(38)

 

N.A.

Comprehensive (loss) income

(1,671,316)

 

259,578

 

40,733

 

N.A.

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

469

 

 

(7,366)

 

 

(1,156)

 

N.A.

Comprehensive (loss) income
attributable to Noah
shareholders

(1,671,785)

 

 

266,944

 

 

41,889

 

N.A.

                   
                   

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

 

Twelve months ended 

   
 

December 31,

 

December 31,

 

December 31,

 

Change

 

2020

 

2021

 

2021

   
 

RMB'000

 

RMB'000

 

USD'000

   

Net (loss) income

(743,522)

 

1,306,081

 

204,952

 

N.A.

Other comprehensive income, net of tax:

             

Foreign currency translation adjustments

(176,910)

 

(60,851)

 

(9,549)

 

(65.6%)

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

771

 

 

-

 

 

-

 

N.A.

Comprehensive (loss) income

(919,661)

 

1,245,230

 

195,403

 

N.A.

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

1,727

 

 

(8,001)

 

 

(1,256)

 

N.A.

Comprehensive (loss) income
attributable to Noah
shareholders

(921,388)

 

 

1,253,231

 

 

196,659

 

N.A.

                   

 

 

Noah Holdings Limited

Supplemental Information

(unaudited)

 

As of

   
 

December 31,
2020

 

December 31,
2021

 

Change

           

Number of registered clients 

360,637

 

411,981

 

14.2%

Number of relationship managers 

1,231

 

1,316

 

6.9%

Number of cities in mainland China under 
   coverage

80

 

84

 

5.0%

           
 

Three months ended

   
 

December 31,
2020

 

December 31,
2021

 

Change

 

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

Number of active clients

5,268

 

3,575

 

(32.1%)

Number of active clients including mutual
  
fund-only clients

19,501

 

17,456

 

(10.5%)

Transaction value:

         

Private equity products

5,172

 

3,041

 

(41.2%)

Private secondary products

7,977

 

6,659

 

(16.5%)

Mutual fund products

7,240

 

10,207

 

41.0%

Other products

930

 

1,136

 

22.2%

Total transaction value

21,319

 

21,043

 

(1.3%)

           
 

Twelve months ended

   
 

December 31,
2020

 

December 31,
2021

 

Change

 

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

Number of active clients

12,161

 

12,831

 

5.5%

Number of active clients including mutual
  
fund-only clients

34,213

 

42,764

 

25.0%

Transaction value:

         

Private equity products

17,876

 

18,069

 

1.1%

Private secondary products

35,162

 

37,776

 

7.4%

Mutual fund products

37,981

 

37,169

 

(2.1%)

Other products

3,717

 

4,189

 

12.7%

Total transaction value

94,736

 

97,203

 

2.6%

 

 

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

 

(unaudited)

 
   
 

Three months ended December 31, 2020

 
 

Wealth
Management
Business

 

Asset
Management
Business

 

Other
Businesses

 

Total

 

RMB'000

 

RMB'000

 

RMB'000

 

RMB'000

               

Revenues:

             

Revenues from others

             

One-time commissions

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 doubtful credit looses

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)

 
   
 

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)

Other operating expenses

(53,616)

 

(4,347)

 

(49,881)

 

(107,844)

Government grants 

65,368

 

37,905

 

12,666

 

115,939

Total operating costs and expenses 

(2,273,408)

 

(556,227)

 

(264,561)

 

(3,094,196)

Income (loss) from operations

921,489

 

485,237

 

(207,828)

 

1,198,898

                 
 

 

 

Noah Holdings Limited

 

Segment Condensed Income Statements

 

(unaudited)

 
   
 

Twelve months ended December 31, 2020

 
 

Wealth
Management
Business

 

Asset
Management
Business

 

Other
Businesses

 

Total

 

RMB'000

 

RMB'000

 

RMB'000

 

RMB'000

               

Revenues:

             

Revenues from others

             

One-time commissions

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

Supplement Revenue Information by Geography

 (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:

             

Mainland China

849,846

 

205,797

 

21,482

 

1,077,125

Hong Kong

116,154

 

57,337

 

-

 

173,491

Others

9,642

 

12,175

 

-

 

21,817

Total revenues

975,642

 

275,309

 

21,482

 

1,272,433

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

 (unaudited)

 
 

Three months ended December 31, 2020

 

Wealth
Management

 Business

 

Asset
Management

Business

 

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)

 
 

Twelve months ended December 31, 2021

 

Wealth
Management

 Business

 

Asset
Management

Business

 

Other
Businesses

 

Total

 

RMB'000

 

RMB'000

 

RMB'000

 

RMB'000

               

Revenues:

             

Mainland China

2,479,576

 

768,203

 

68,240

 

3,316,019

Hong Kong

629,587

 

240,136

 

-

 

869,723

Others

102,810

 

38,048

 

-

 

140,858

Total revenues

3,211,973

 

1,046,387

 

68,240

 

4,326,600

 

 

 

Twelve months ended December 31, 2020

 

Wealth
Management

 Business

 

Asset
Management

Business

 

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

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)

 

Three months ended

     
 

December 31,

 

December 31,

 

Change

 
 

2020

 

2021

     
 

RMB'000

 

RMB'000

     
             

Net (loss) income attributable to Noah shareholders

(1,573,507)

 

281,312

 

N.A.

 

Adjustment for share-based compensation

9,041

 

12,435

 

37.5%

 

Add: settlement expense (reversal)

1,828,907

 

(719)

 

N.A.

 

Less: tax effect of adjustments

1,985

 

3,421

 

72.3%

 

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

262,456

 

 

289,607

 

10.3%

 
             

Net margin attributable to Noah shareholders

(165.1%)

 

22.3%

     

Non-GAAP net margin attributable to Noah shareholders

27.5%

 

23.0%

     
             

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

(24.92)

 

4.16

 

N.A.

 

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

4.13

 

4.28

 

3.6%

 
             

 

 

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

 
 

2020

 

2021