UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2021
Commission File Number: 001-34936
Noah Holdings Limited
No. 1687 Changyang Road, Changyang Valley, Building 2
Shanghai 200090, People’s Republic of China
(86) 21 8035 9221
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Noah Holdings Limited | ||
| By: | /s/ Qing Pan | |
| Name: | Qing Pan | |
| Title: | Chief Financial Officer | |
Date: November 23, 2021
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Exhibit Index
| Exhibit No. | Description. | |
| Exhibit 99.1 | Press Release |
3
Exhibit 99.1
NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED
FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2021
SHANGHAI, November 24, 2021 — 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 (“HNW”) investors, today announced its unaudited financial results for the third quarter of 2021.
THIRD QUARTER 2021 FINANCIAL HIGHLIGHTS
| · | Net revenues for the third quarter of 2021 were RMB908.9 million (US$141.1 million), a 5.8% increase from the corresponding period in 2020, and a 1.1% increase from the second quarter of 2021. |
(RMB millions, except percentages) | Q3 2020 | Q3 2021 | YoY Change | |||||||||
| Wealth management | 627.7 | 653.6 | 4.1 | % | ||||||||
| Asset management | 222.4 | 241.3 | 8.5 | % | ||||||||
| Other businesses | 9.0 | 14.0 | 56.4 | % | ||||||||
| Total net revenues | 859.1 | 908.9 | 5.8 | % | ||||||||
| · | Income from operations for the third quarter of 2021 was RMB228.9 million (US$35.5 million), a 34.1% decrease from the corresponding period in 2020, and a 31.8% decrease from the second quarter of 2021, due to our budgeted strategic investments on compensation and marketing activities. |
(RMB millions, except percentages) | Q3 2020 | Q3 2021 | YoY Change | |||||||||
| Wealth management | 248.4 | 143.1 | (42.4 | )% | ||||||||
| Asset management | 113.7 | 117.2 | 3.0 | % | ||||||||
| Other businesses | (14.9 | ) | (31.4 | ) | 112.2 | % | ||||||
| Total income from operations | 347.2 | 228.9 | (34.1 | )% | ||||||||
| · | Net income attributable to Noah shareholders for the third quarter of 2021 was RMB273.2 million (US$42.4 million), a 4.3% decrease from the corresponding period in 2020, and a 10.6% decrease from the second quarter of 2021. |
| · | Non-GAAP1 net income attributable to Noah shareholders for the third quarter of 2021 was RMB284.2 million (US$44.1 million), a 4.2% decrease from the corresponding period in 2020, and a 15.7% decrease from the second quarter of 2021. |
THIRD QUARTER 2021 OPERATIONAL UPDATES
Wealth Management Business
We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. Noah primarily distributes private equity, private secondary, mutual funds and other products denominated in RMB and other currencies.
1 Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring share-based settlement expenses and net of relevant tax impact, if any. See “Reconciliation of GAAP to Non-GAAP Results” at the end of this press release.
1
| · | Total number of registered clients as of September 30, 2021 was 406,420, a 16.0% increase from September 30, 2020 and a 2.3% increase from June 30, 2021. |
| · | Total number of active clients2 which excluded mutual fund-only clients during the third quarter of 2021 was 5,606, a 25.5% increase from the corresponding period in 2020 and a 19.9% increase from the second quarter of 2021. Counting in mutual fund-only clients, the total number of clients who transacted with us during the third quarter of 2021 was 21,269, a 3.7% increase from the third quarter of 2020, and a 4.8% increase from the second quarter of 2021. |
| · | Aggregate value of investment products distributed during the third quarter of 2021 was RMB24.1 billion (US$3.7 billion), a 16.4% decrease from the corresponding period in 2020, due to decreased distribution in mutual fund products and private equity products. |
| Three months ended September 30, | ||||||||||||||||
| Product type | 2020 | 2021 | ||||||||||||||
| (RMB in billions, except percentages) | ||||||||||||||||
| Mutual fund products | 12.3 | 42.6 | % | 8.9 | 37.2 | % | ||||||||||
| Private secondary products | 8.6 | 29.9 | % | 10.6 | 43.8 | % | ||||||||||
| Private equity products | 7.2 | 25.1 | % | 3.8 | 15.8 | % | ||||||||||
| Other products3 | 0.7 | 2.4 | % | 0.8 | 3.2 | % | ||||||||||
| All products | 28.8 | 100.0 | % | 24.1 | 100.0 | % | ||||||||||
| · | Coverage network in mainland China covers 81 cities as of September 30, 2021, compared with 81 cities as of June 30, 2021, and 79 cities as of September 30, 2020. |
| · | Number of relationship managers was 1,322 as of September 30, 2021, a 4.3% increase from June 30, 2021, and a 9.8% increase from September 30, 2020. |
Asset Management Business
Our asset management business is conducted through Gopher Asset Management Co., Ltd. (“Gopher Asset Management”), a leading multi-asset manager in China with overseas offices in Hong Kong and the United States. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities to multi-strategy investments denominated in RMB and other currencies.
| · | Total assets under management as of September 30, 2021 remained relatively stable at RMB156.1 billion (US$24.2 billion), as compared with June 30, 2021 and September 30, 2020. |
| Investment type | As of June 30, 2021 | Growth | Distribution/ Redemption | As of September 30, 2021 | ||||||||||||||||||||
| (RMB billions, except percentages) | ||||||||||||||||||||||||
| Private equity | 127.7 | 81.9 | % | 3.1 | 0.4 | 130.4 | 83.5 | % | ||||||||||||||||
| Public securities4 | 11.1 | 7.1 | % | 1.3 | 1.3 | 11.1 | 7.1 | % | ||||||||||||||||
| Real estate | 10.2 | 6.6 | % | 0.2 | 3.0 | 7.4 | 4.7 | % | ||||||||||||||||
| Multi-strategies | 5.5 | 3.5 | % | 0.5 | 0.2 | 5.8 | 3.8 | % | ||||||||||||||||
| Others | 1.4 | 0.9 | % | - | - | 1.4 | 0.9 | % | ||||||||||||||||
| All Investments | 155.9 | 100.0 | % | 5.1 | 4.9 | 156.1 | 100.0 | % | ||||||||||||||||
2 “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.
3 “Other products” refers to other investment products, which includes insurance products, multi-strategies products and others.
4 The asset allocation/redemption of public securities also includes market appreciation or depreciation.
2
Other Businesses
Since the fourth quarter of 2020, we have been transitioning our other businesses segment to “Noah Digital Intelligence”, with an aim to diversify distribution channels beyond our wealth management, and to provide more comprehensive services and investment products.
Ms. Jingbo Wang, co-founder and CEO of Noah, said, “It is encouraging to see continued growth in the number of diamond card and black card clients, exceeding 8,000 in total; and that our active clients also increased by 25.5% year-on-year, indicating the positive results of our upgraded Noah Triangle client service model. Net revenues rose by 5.8% year-on-year, supported by historical high recurring income as long-duration private secondary products and private equity products accumulate into our AUA, creating the snow ball effect, amid the volatile market this quarter. Since the establishment of Noah, there has been no capital pool, no implicit guarantee, no duration mismatch, no leverage allocation, and no cross-border operations of funds. Our fully compliant operations in different countries and regions where we hold local licenses ensure our lifeline and future growth. Noah stays focused on serving HNW and ultra-HNW clients, and strives to become a professional wealth management service provider with ‘one meter in width and 1,000 meters in depth’, delivering suitable products to clients based on enhanced research capabilities and deeper understanding of our clients utilizing the KYC/KYP/KYA platform.”
THIRD QUARTER 2021 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2021 were RMB908.9 million (US$141.1 million), a 5.8% increase from the corresponding period in 2020, primarily driven by increased one-time commissions, performance-based income and other service fees.
| · | Wealth Management Business |
| · | Net revenues from one-time commissions for the third quarter of 2021 were RMB193.9 million (US$30.1 million), a 2.2% increase from the corresponding period in 2020 due to an increase in private secondary products distributed in third quarter of 2021. |
| · | Net revenues from recurring service fees for the third quarter of 2021 were RMB391.2 million (US$60.7 million), a 2.8% 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 third quarter of 2021 were RMB37.7 million (US$5.9 million), an 11.9% increase from the corresponding period in 2020, primarily due to an increase in performance-based income from private equity products. |
3
| · | Net revenues from other service fees for the third quarter of 2021 were RMB30.8 million (US$4.8 million), a 29.0% increase from the corresponding period in 2020, primarily due to more value-added services Noah offers to its high net worth clients. |
| · | Asset Management Business |
| · | Net revenues from recurring service fees for the third quarter of 2021 were RMB175.7 million (US$27.3 million), a 2.1% decrease from the corresponding period in 2020, primarily due to redemptions of real estate assets. |
| · | Net revenues from performance-based income for the third quarter of 2021 were RMB44.4 million (US$6.9 million), a 20.8% increase from the corresponding period in 2020, primarily due to an increase in performance-based income from offshore private equity products. |
| · | Other Businesses |
| · | Net revenues for the third quarter of 2021 were RMB14.0 million (US$2.2 million), a 56.4% increase from the corresponding period in 2020. |
Operating Costs and Expenses
Operating costs and expenses for the third quarter of 2021 were RMB680.1 million (US$105.5 million), a 32.9% increase from the corresponding period in 2020. Operating costs and expenses primarily consisted of compensation and benefits of RMB459.8 million (US$71.4 million), selling expenses of RMB114.3 million (US$17.7 million), general and administrative expenses of RMB77.1 million (US$12.0 million) and other operating expenses of RMB33.0 million (US$5.1 million).
| · | Operating costs and expenses for the wealth management business for the third quarter of 2021 were RMB510.5 million (US$79.2 million), a 34.6% increase from the corresponding period in 2020, primarily due to an increase in compensation and benefits as well as selling and general and administrative expenses. | |
| · | Operating costs and expenses for the asset management business for the third quarter of 2021 were RMB124.2 million (US$19.3 million), a 14.3% increase from the corresponding period in 2020, primarily due to an increase in compensation and benefits. | |
| · | Operating costs and expenses for other businesses for the third quarter of 2021 were RMB45.4 million (US$7.0 million), a 90.7% increase from the corresponding period in 2020, primarily due to increased depreciation expenses for our newly purchased headquarter buildings. |
Operating Margin
Operating margin for the third quarter of 2021 was 25.2%, compared with 40.4% for the corresponding period in 2020, primarily due to increased compensation and benefits as well as selling expenses.
| · | Operating margin for the wealth management business for the third quarter of 2021 was 21.9%, compared with 39.6% for the corresponding period in 2020, due to less expenses incurred in the corresponding periods of 2020 due to the COVID-19 pandemic as well as private equity products are no longer distributed through wealth management business, but rather invested in by asset management business. | |
| · | Operating margin for the asset management business for the third quarter of 2021 was 48.5%, compared with 51.1% for the corresponding period in 2020, due to an increase in compensation and benefits. | |
| · | Loss from operations for other businesses for the third quarter of 2021 was RMB31.4 million (US$4.9 million), compared with loss in the amount of RMB14.8 million in the corresponding period in 2020 due to reduced loan origination and more expenses from our purchased headquarter buildings. |
4
Investment Income
Investment income for the third quarter of 2021 was RMB24.1 million (US$3.7 million), compared with RMB0.8 million for the corresponding period in 2020, due to a gain of fair value change from our certain equity investments.
Income Tax Expenses
Income tax expenses for the third quarter of 2021 were RMB60.0 million (US$9.3 million), a 29.3% decrease from the corresponding period in 2020, primarily due to lower taxable income.
Income from Equity in Affiliates
Income from equity in affiliates for the third quarter of 2021 was RMB64.5 million (US$10.0 million), a 1,287.3% increase from the corresponding period in 2020, primarily due to net asset value increase of certain offshore funds of funds we manage and invest in as the general partner or manager.
Net Income
| · | Net Income |
| · | Net income for the third quarter of 2021 was RMB271.4 million (US$42.1 million), a 4.4% decrease compared to the corresponding period in 2020. |
| · | Net margin for the third quarter of 2021 was 29.9%, down from 33.0% for the corresponding period in 2020. |
| · | Net income attributable to Noah shareholders for the third quarter of 2021 was RMB273.2 million (US$42.4 million), a 4.3% decrease from the corresponding period in 2020. |
| · | Net margin attributable to Noah shareholders for the third quarter of 2021 was 30.1%, down from 33.2% for the corresponding period in 2020. |
| · | Net income attributable to Noah shareholders per basic and diluted ADS for the third quarter of 2021 was RMB4.06 (US$0.63) and RMB4.04 (US$0.63), respectively, compared with RMB4.63 and RMB4.60 respectively, for the corresponding period in 2020. |
| · | Non-GAAP Net Income Attributable to Noah Shareholders |
| · | Non-GAAP net income attributable to Noah shareholders for the third quarter of 2021 was RMB284.2 million (US$44.1 million), a 4.2% decrease from the corresponding period in 2020. |
| · | Non-GAAP net margin attributable to Noah shareholders for the third quarter of 2021 was 31.3%, down from 34.5% for the corresponding period in 2020. |
| · | Non-GAAP net income attributable to Noah shareholders per diluted ADS for the third quarter of 2021 was RMB4.20 (US$0.65), down from RMB4.78 for the corresponding period in 2020. |
5
Balance Sheet and Cash Flow
As of September 30, 2021, the Company had RMB2,829.5 million (US$439.1 million) in cash and cash equivalents, compared with RMB2,686.4 million as of June 30, 2021, and RMB4,597.4 million as of September 30, 2020.
Net cash inflow from the Company’s operating activities during the third quarter of 2021 was RMB361.0 million (US$56.0 million), compared to net cash inflow of RMB360.8 million in the corresponding period in 2020.
Net cash outflow from the Company’s investing activities during the third quarter of 2021 was RMB234.3 million (US$36.4 million), compared to net cash inflow of RMB165.7 million in the corresponding period in 2020. The cash outflow was primarily due to additional investment of certain long-term investment as well as increased loan originated in this quarter.
Net cash inflow from the Company’s financing activities was RMB9.5 million (US$1.5 million) in the third quarter of 2021, compared to net cash outflow of RMB22.9 million in the corresponding period in 2020, primarily due to proceeds of cash exercise of employee options.
2021 FORECAST
The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2021 will be in the range of RMB1.2 billion to RMB1.3 billion. This 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 third quarter 2021 unaudited financial results and recent business activities.
The conference call may be accessed with the following details:
|
Conference call details | |
|
Date/Time
|
Tuesday, November 23, 2021 at 7:00 p.m., U.S. Eastern Time Wednesday, November 24, 2021 at 8:00 a.m., Hong Kong Time |
| Dial in details | |
| - United States Toll Free | 1-888-317-6003 |
| - Mainland China Toll Free | 4001-206-115 |
| - Hong Kong Toll Free | 800-963-976 |
| - International | 1-412-317-6061 |
| Conference Title | Noah Holdings 3Q21 Earnings Conference Call |
| Participant Password | 1960485 |
A telephone replay will be available starting one hour after the end of the conference call until December 1, 2021 at +1-877-344-7529 (US Toll Free) and 1-412-317-0088 (International Toll). The replay access code is 10161700.
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 OF NON-GAAP MEASURES
In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company’s earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring share-based settlement expenses and net of tax impact, if any. See “Reconciliation of GAAP to Non-GAAP Results” at the end of this press release.
The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non- GAAP financial measures used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies.
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When evaluating the Company’s operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company’s management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. In the first nine months of 2021, Noah distributed RMB76.2 billion (US$11.8 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB156.1 billion (US$24.2 billion) as of September 30, 2021.
Noah’s wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,322 relationship managers in 81 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, United States and Singapore. The Company’s wealth management business had 406,420 registered clients as of September 30, 2021. As a leading alternative multi-asset manager in China, Gopher Asset Management manages private equity, real estate, public securities, multi-strategy and other investments denominated in RMB and other currencies. The Company also provides other businesses.
For more information, please visit Noah at ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the third quarter of 2021 ended September 30, 2021 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.4434 to US$1.00, the effective noon buying rate for September 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.
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SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the outlook for 2021 and quotations from management in this announcement, as well as Noah’s strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah’s actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.
Contacts:
Noah Holdings Limited
Sonia Han
Tel: +86-21-8035-8372
ir@noahgroup.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
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Noah Holdings Limited
Condensed Consolidated Balance Sheets
(unaudited)
| As of | ||||||||||||
| June 30, | September 30, | September 30, | ||||||||||
| 2021 | 2021 | 2021 | ||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 2,686,422 | 2,829,481 | 439,129 | |||||||||
| Restricted cash | 10,067 | 3,227 | 501 | |||||||||
| Short-term investments | 96,050 | 108,313 | 16,810 | |||||||||
| Accounts receivable, net | 470,265 | 504,113 | 78,237 | |||||||||
| Loans receivable, net | 515,194 | 634,774 | 98,515 | |||||||||
| Amounts due from related parties | 643,972 | 594,047 | 92,195 | |||||||||
| Other current assets | 239,997 | 209,933 | 32,581 | |||||||||
| Total current assets | 4,661,967 | 4,883,888 | 757,968 | |||||||||
| Long-term investments, net | 554,280 | 665,237 | 103,243 | |||||||||
| Investment in affiliates | 1,258,829 | 1,296,559 | 201,223 | |||||||||
| Property and equipment, net | 2,642,584 | 2,619,768 | 406,582 | |||||||||
| Operating lease right-of-use assets, net | 256,597 | 242,660 | 37,660 | |||||||||
| Deferred tax assets | 223,801 | 223,803 | 34,734 | |||||||||
| Other non-current assets | 199,232 | 171,114 | 26,556 | |||||||||
| Total Assets | 9,797,290 | 10,103,029 | 1,567,966 | |||||||||
| Liabilities and Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accrued payroll and welfare expenses | 491,716 | 514,420 | 79,837 | |||||||||
| Income tax payable | 84,675 | 105,132 | 16,316 | |||||||||
| Deferred revenues | 96,523 | 103,807 | 16,111 | |||||||||
| Contingent liabilities | 460,315 | 444,935 | 69,053 | |||||||||
| Other current liabilities | 554,383 | 529,049 | 82,107 | |||||||||
| Total current liabilities | 1,687,612 | 1,697,343 | 263,424 | |||||||||
| Operating lease liabilities, non-current | 169,167 | 155,882 | 24,193 | |||||||||
| Deferred tax liabilities | 241,084 | 239,536 | 37,175 | |||||||||
| Other non-current liabilities | 109,134 | 113,670 | 17,641 | |||||||||
| Total Liabilities | 2,206,997 | 2,206,431 | 342,433 | |||||||||
| Equity | 7,590,293 | 7,896,598 | 1,225,533 | |||||||||
| Total Liabilities and Equity | 9,797,290 | 10,103,029 | 1,567,966 | |||||||||
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Noah Holdings Limited
Condensed Consolidated Income Statements
(In RMB'000, except for USD data, per ADS data and percentages)
(unaudited)
| Three months ended | ||||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||
| 2020 | 2021 | 2021 | Change | |||||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||||||
| Revenues: | ||||||||||||||||
| Revenues from others: | ||||||||||||||||
| One-time commissions | 125,000 | 183,733 | 28,515 | 47.0 | % | |||||||||||
| Recurring service fees | 200,075 | 259,364 | 40,253 | 29.6 | % | |||||||||||
| Performance-based income | 27,217 | 26,796 | 4,159 | (1.5 | )% | |||||||||||
| Other service fees | 33,985 | 51,690 | 8,022 | 52.1 | % | |||||||||||
| Total revenues from others | 386,277 | 521,583 | 80,949 | 35.0 | % | |||||||||||
| Revenues from funds Gopher manages: | ||||||||||||||||
| One-time commissions | 71,112 | 32,113 | 4,984 | (54.8 | )% | |||||||||||
| Recurring service fees | 363,274 | 309,532 | 48,039 | (14.8 | )% | |||||||||||
| Performance-based income | 43,673 | 55,645 | 8,636 | 27.4 | % | |||||||||||
| Total revenues from funds Gopher manages | 478,059 | 397,290 | 61,659 | (16.9 | )% | |||||||||||
| Total revenues | 864,336 | 918,873 | 142,608 | 6.3 | % | |||||||||||
| Less: VAT related surcharges | (5,282 | ) | (9,958 | ) | (1,545 | ) | 88.5 | % | ||||||||
| Net revenues | 859,054 | 908,915 | 141,063 | 5.8 | % | |||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship managers | (144,977 | ) | (178,589 | ) | (27,717 | ) | 23.2 | % | ||||||||
| Others | (217,549 | ) | (281,220 | ) | (43,645 | ) | 29.3 | % | ||||||||
| Total compensation and benefits | (362,526 | ) | (459,809 | ) | (71,362 | ) | 26.8 | % | ||||||||
| Selling expenses | (69,882 | ) | (114,307 | ) | (17,740 | ) | 63.6 | % | ||||||||
| General and administrative expenses | (61,656 | ) | (77,129 | ) | (11,970 | ) | 25.1 | % | ||||||||
| Provision for credit losses | (5,166 | ) | (6,582 | ) | (1,022 | ) | 27.4 | % | ||||||||
| Other operating expenses | (23,129 | ) | (33,030 | ) | (5,126 | ) | 42.8 | % | ||||||||
| Government grants | 10,552 | 10,804 | 1,677 | 2.4 | % | |||||||||||
| Total operating costs and expenses | (511,807 | ) | (680,053 | ) | (105,543 | ) | 32.9 | % | ||||||||
| Income from operations | 347,247 | 228,862 | 35,520 | (34.1 | )% | |||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 12,080 | 16,156 | 2,507 | 33.7 | % | |||||||||||
| Investment income | 751 | 24,109 | 3,742 | 3,110.3 | % | |||||||||||
| Settlement expenses | - | (1,437 | ) | (223 | ) | N.A. | ||||||||||
| Other income (expense) | 4,041 | (824 | ) | (128 | ) | N.A. | ||||||||||
| Total other income | 16,872 | 38,004 | 5,898 | 125.2 | % | |||||||||||
| Income before taxes and income from equity in affiliates | 364,119 | 266,866 | 41,418 | (26.7 | )% | |||||||||||
| Income tax expense | (84,944 | ) | (60,045 | ) | (9,319 | ) | (29.3 | )% | ||||||||
| Income from equity in affiliates | 4,652 | 64,536 | 10,016 | 1,287.3 | % | |||||||||||
| Net income | 283,827 | 271,357 | 42,115 | (4.4 | )% | |||||||||||
| Less: net loss attributable to non-controlling interests | (1,789 | ) | (1,843 | ) | (286 | ) | 3.0 | % | ||||||||
| Net income attributable to Noah shareholders | 285,616 | 273,200 | 42,401 | (4.3 | )% | |||||||||||
| Income per ADS, basic | 4.63 | 4.06 | 0.63 | (12.3 | )% | |||||||||||
| Income per ADS, diluted | 4.60 | 4.04 | 0.63 | (12.2 | )% | |||||||||||
| Margin analysis: | ||||||||||||||||
| Operating margin | 40.4 | % | 25.2 | % | 25.2 | % | ||||||||||
| Net margin | 33.0 | % | 29.9 | % | 29.9 | % | ||||||||||
| Weighted average ADS equivalent[1]: | ||||||||||||||||
| Basic | 61,723,592 | 67,253,930 | 67,253,930 | |||||||||||||
| Diluted | 62,075,224 | 67,641,457 | 67,641,457 | |||||||||||||
| ADS equivalent outstanding at end of period | 61,752,197 | 60,132,192 | 60,132,192 | |||||||||||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs.
10
Noah Holdings Limited
Condensed Comprehensive Income Statements
(unaudited)
| Three months ended | ||||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||
| 2020 | 2021 | 2021 | Change | |||||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||||||
| Net income | 283,827 | 271,357 | 42,115 | (4.4 | )% | |||||||||||
| Other comprehensive income, net of tax: | ||||||||||||||||
| Foreign currency translation adjustments | (108,684 | ) | (32,357 | ) | (5,022 | ) | (70.2 | )% | ||||||||
| Fair value fluctuation of available for sale Investment (after tax) | - | 109 | 17 | N.A. | ||||||||||||
| Comprehensive income | 175,143 | 239,109 | 37,110 | 36.5 | % | |||||||||||
| Less: Comprehensive loss attributable to non-controlling interests | (1,694 | ) | (1,845 | ) | (286 | ) | 8.9 | % | ||||||||
| Comprehensive income attributable to Noah shareholders | 176,837 | 240,954 | 37,396 | 36.3 | % | |||||||||||
11
Noah Holdings Limited Supplemental Information | ||||||||||||
| (unaudited) | ||||||||||||
| As of | ||||||||||||
| September 30, 2020 | September 30, 2021 | Change | ||||||||||
| Number of registered clients | 350,409 | 406,420 | 16.0 | % | ||||||||
| Number of relationship managers | 1,204 | 1,322 | 9.8 | % | ||||||||
| Number of cities in mainland China under coverage | 79 | 81 | 2.5 | % | ||||||||
| Three months ended | ||||||||||||
| September 30, 2020 | September 30, 2021 | Change | ||||||||||
| (in millions of RMB, except number of active clients and percentages) | ||||||||||||
| Number of active clients | 4,466 | 5,606 | 25.5 | % | ||||||||
| Number of active clients including mutual fund-only clients | 20,509 | 21,269 | 3.7 | % | ||||||||
| Transaction value: | ||||||||||||
| Private equity products | 7,222 | 3,793 | (47.5 | )% | ||||||||
| Private secondary products | 8,598 | 10,545 | 22.6 | % | ||||||||
| Mutual fund products | 12,246 | 8,942 | (27.0 | )% | ||||||||
| Other products | 714 | 787 | 10.2 | % | ||||||||
| Total transaction value | 28,780 | 24,067 | (16.4 | )% | ||||||||
13
Noah Holdings Limited | ||||||||||||||||
| Segment Condensed Income Statements | ||||||||||||||||
(unaudited)
| ||||||||||||||||
| Three months ended September 30, 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 | 183,733 | - | - | 183,733 | ||||||||||||
| Recurring service fees | 259,364 | - | - | 259,364 | ||||||||||||
| Performance-based income | 26,796 | - | - | 26,796 | ||||||||||||
| Other service fees | 30,856 | - | 20,834 | 51,690 | ||||||||||||
| Total revenues from others | 500,749 | - | 20,834 | 521,583 | ||||||||||||
| Revenues from funds Gopher manages | ||||||||||||||||
| One-time commissions | 10,784 | 21,329 | - | 32,113 | ||||||||||||
| Recurring service fees | 133,173 | 176,359 | - | 309,532 | ||||||||||||
| Performance-based income | 11,080 | 44,565 | - | 55,645 | ||||||||||||
| Total revenues from funds Gopher manages | 155,037 | 242,253 | - | 397,290 | ||||||||||||
| Total revenues | 655,786 | 242,253 | 20,834 | 918,873 | ||||||||||||
| Less: VAT related surcharges | (2,215 | ) | (899 | ) | (6,844 | ) | (9,958 | ) | ||||||||
| Net revenues | 653,571 | 241,354 | 13,990 | 908,915 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship managers | (172,469 | ) | (6,120 | ) | - | (178,589 | ) | |||||||||
| Others | (179,230 | ) | (89,733 | ) | (12,257 | ) | (281,220 | ) | ||||||||
| Total compensation and benefits | (351,699 | ) | (95,853 | ) | (12,257 | ) | (459,809 | ) | ||||||||
| Selling expenses | (92,288 | ) | (13,584 | ) | (8,435 | ) | (114,307 | ) | ||||||||
| General and administrative expenses | (57,096 | ) | (13,669 | ) | (6,364 | ) | (77,129 | ) | ||||||||
| Provision for credit losses | (3,799 | ) | (701 | ) | (2,082 | ) | (6,582 | ) | ||||||||
| Other operating expenses | (16,268 | ) | (431 | ) | (16,331 | ) | (33,030 | ) | ||||||||
| Government grants | 10,674 | 30 | 100 | 10,804 | ||||||||||||
| Total operating costs and expenses | (510,476 | ) | (124,208 | ) | (45,369 | ) | (680,053 | ) | ||||||||
| Income (loss) from operations | 143,095 | 117,146 | (31,379 | ) | 228,862 | |||||||||||
14
| Noah Holdings Limited | ||||||||||||||||
| Segment Condensed Income Statements | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three months ended September 30, 2020 | ||||||||||||||||
| Wealth Management Business | Asset Management Business | Other Businesses | Total | |||||||||||||
| RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||||||||||||
| Revenues: | ||||||||||||||||
| Revenues from others | ||||||||||||||||
| One-time commissions | 124,645 | 355 | - | 125,000 | ||||||||||||
| Recurring service fees | 199,423 | 652 | - | 200,075 | ||||||||||||
| Performance-based income | 27,210 | 7 | - | 27,217 | ||||||||||||
| Other service fees | 23,992 | 886 | 9,107 | 33,985 | ||||||||||||
| Total revenues from others | 375,270 | 1,900 | 9,107 | 386,277 | ||||||||||||
| Revenues from funds Gopher manages | ||||||||||||||||
| One-time commissions | 66,201 | 4,911 | - | 71,112 | ||||||||||||
| Recurring service fees | 183,594 | 179,680 | - | 363,274 | ||||||||||||
| Performance-based income | 6,751 | 36,922 | - | 43,673 | ||||||||||||
| Total revenues from funds Gopher manages | 256,546 | 221,513 | - | 478,059 | ||||||||||||
| Total revenues | 631,816 | 223,413 | 9,107 | 864,336 | ||||||||||||
| Less: VAT related surcharges | (4,123 | ) | (1,003 | ) | (156 | ) | (5,282 | ) | ||||||||
| Net revenues | 627,693 | 222,410 | 8,951 | 859,054 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship managers | (144,534 | ) | - | (443 | ) | (144,977 | ) | |||||||||
| Others | (118,854 | ) | (83,269 | ) | (15,426 | ) | (217,549 | ) | ||||||||
| Total compensation and benefits | (263,388 | ) | (83,269 | ) | (15,869 | ) | (362,526 | ) | ||||||||
| Selling expenses | (58,836 | ) | (8,759 | ) | (2,287 | ) | (69,882 | ) | ||||||||
| General and administrative expenses | (39,357 | ) | (17,425 | ) | (4,874 | ) | (61,656 | ) | ||||||||
| Provision for credit losses | (6,898 | ) | - | 1,732 | (5,166 | ) | ||||||||||
| Other operating expenses | (17,298 | ) | (1,848 | ) | (3,983 | ) | (23,129 | ) | ||||||||
| Government grants | 6,471 | 2,597 | 1,484 | 10,552 | ||||||||||||
| Total operating costs and expenses | (379,306 | ) | (108,704 | ) | (23,797 | ) | (511,807 | ) | ||||||||
| Income (loss) from operations | 248,387 | 113,706 | (14,846 | ) | 347,247 | |||||||||||
15
| Noah Holdings Limited | ||||||||||||||||
| Supplement Revenue Information by Geography | ||||||||||||||||
(unaudited)
| ||||||||||||||||
| Three months ended September 30, 2021 | ||||||||||||||||
| Wealth Management Business | Asset Management Business | Other Businesses | Total | |||||||||||||
| RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||
| Revenues: | ||||||||||||||||
| Mainland China | 482,033 | 165,602 | 20,834 | 668,469 | ||||||||||||
| Hong Kong | 139,503 | 67,426 | - | 206,929 | ||||||||||||
| Others | 34,250 | 9,225 | - | 43,475 | ||||||||||||
| Total revenues | 655,786 | 242,253 | 20,834 | 918,873 | ||||||||||||
| Three months ended September 30, 2020 | ||||||||||||||||
| Wealth Management Business | Asset Management Business | Other Businesses | Total | |||||||||||||
| RMB’000 | RMB’000 | RMB’000 | RMB’000 | |||||||||||||
| Revenues: | ||||||||||||||||
| Mainland China | 512,820 | 184,449 | 9,107 | 706,376 | ||||||||||||
| Hong Kong | 76,584 | 27,276 | - | 103,860 | ||||||||||||
| Others | 42,412 | 11,688 | - | 54,100 | ||||||||||||
| Total revenues | 631,816 | 223,413 | 9,107 | 864,336 | ||||||||||||
16
| Noah Holdings Limited | ||||||||||||
| Reconciliation of GAAP to Non-GAAP Results | ||||||||||||
| (In RMB, except for per ADS data and percentages) | ||||||||||||
| (unaudited) | ||||||||||||
| Three months ended | ||||||||||||
| September 30, | September 30, | |||||||||||
| 2020 | 2021 | Change | ||||||||||
| RMB'000 | RMB'000 | |||||||||||
| Net income attributable to Noah shareholders | 285,616 | 273,200 | (4.3 | )% | ||||||||
| Adjustment for share-based compensation | 14,351 | 12,423 | (13.4 | )% | ||||||||
| Add: settlement expenses | - | 1,437 | N.A. | |||||||||
| Less: tax effect of adjustments | 3,408 | 2,879 | (15.5 | )% | ||||||||
| Adjusted net income attributable to Noah shareholders (non-GAAP) | 296,559 | 284,181 | (4.2 | )% | ||||||||
| Net margin attributable to Noah shareholders | 33.2 | % | 30.1 | % | ||||||||
| Non-GAAP net margin attributable to Noah shareholders | 34.5 | % | 31.3 | % | ||||||||
| Net income attributable to Noah shareholders per ADS, diluted | 4.60 | 4.04 | (12.2 | )% | ||||||||
| Non-GAAP net income attributable to Noah shareholders per ADS, diluted | 4.78 | 4.20 | (12.1 | )% | ||||||||
17