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 August 2022
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: August 22, 2022
2
Exhibit Index
| Exhibit No. | Description. | |
| Exhibit 99.1 | Press Release |
3
Exhibit 99.1
NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED
FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2022
SHANGHAI, August 23, 2022 — Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors, today announced its unaudited financial results for the second quarter of 2022.
SECOND QUARTER 2022 FINANCIAL HIGHLIGHTS
| · | Net revenues for the second quarter of 2022 were RMB738.1 million (US$110.2 million), a 17.9% decrease from the corresponding period in 2021, mainly due to decreases in one-time commissions, and performance-based incomes. Net revenues decreased by 7.2% compared with the first quarter of 2022, mainly due to decreases in performance based income amid market volatilities and partially offset by more than doubled one-time commissions. |
| (RMB millions, except percentages) | Q2 2021 | Q2 2022 | YoY Change | |||||||||
| Wealth management | 625.6 | 508.6 | (18.7 | )% | ||||||||
| Asset management | 256.3 | 210.3 | (17.9 | )% | ||||||||
| Other businesses | 17.5 | 19.2 | 9.5 | % | ||||||||
| Total net revenues | 899.4 | 738.1 | (17.9 | )% | ||||||||
| · | Income from operations for the second quarter of 2022 was RMB323.1 million (US$48.2 million), a 3.6% decrease from the corresponding period in 2021, due to the decreased net revenues for the second quarter of 2022 and partially offset by a decrease in our expenses due to the COVID-19 lockdown measures in parts of China, especially Shanghai; income from operations increased by 3.0% compared with the first quarter of 2022, due to less expenses incurred and more government subsidies received in the second quarter of 2022. |
| (RMB millions, except percentages) | Q2 2021 | Q2 2022 | YoY Change | |||||||||
| Wealth management | 176.7 | 193.8 | 9.7 | % | ||||||||
| Asset management | 172.8 | 142.6 | (17.5 | )% | ||||||||
| Other businesses | (14.1 | ) | (13.3 | ) | (6.3 | )% | ||||||
| Total income from operations | 335.4 | 323.1 | (3.6 | )% | ||||||||
| · | Net income attributable to Noah shareholders for the second quarter of 2022 was RMB349.0 million (US$52.1 million), a 14.2% increase from the corresponding period in 2021, and a 14.3% increase from the first quarter of 2022. |
| · | Non-GAAP1 net income attributable to Noah shareholders for the second quarter of 2022 was RMB355.1 million (US$53.0 million), a 5.4% increase from the corresponding period in 2021, and a 13.3% increase from the first quarter of 2022. |
1 Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, 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
SECOND QUARTER 2022 OPERATIONAL UPDATES
Wealth Management Business
We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. 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 June 30, 2022 was 418,675, a 5.4% increase from June 30, 2021, and a 0.9% increase from March 31, 2022. |
| · | Total number of active clients2, which excluded mutual fund-only clients during the second quarter of 2022 was 2,272, a 51.4% decrease from the second quarter of 2021, and a 19.4% decrease from the first quarter of 2022. Counting in mutual fund-only clients, the total number of clients who transacted with us during the second quarter of 2022 was 12,866, a 36.6% decrease from the second quarter of 2021, and a 14.1% decrease from the first quarter of 2022, mainly affected by volatile market environment. |
| · | Aggregate value of investment products distributed during the second quarter of 2022 was RMB19.3 billion (US$3.0 billion), a 22.7% decrease from the second quarter of 2021, but a 28.8% increase from the first quarter of 2022, mainly due to increases in the distribution of mutual fund products and private equity products. |
| Three months ended June 30, | ||||||||||||||||
| 2021 | 2022 | |||||||||||||||
| (RMB in billions, except percentages) | ||||||||||||||||
| Product type | ||||||||||||||||
| Mutual fund products | 9.4 | 37.5 | % | 12.2 | 63.1 | % | ||||||||||
| Private secondary products | 7.7 | 30.8 | % | 2.4 | 12.4 | % | ||||||||||
| Private equity products | 6.5 | 25.9 | % | 3.9 | 20.3 | % | ||||||||||
| Other products3 | 1.4 | 5.8 | % | 0.8 | 4.2 | % | ||||||||||
| All products | 25.0 | 100.0 | % | 19.3 | 100.0 | % | ||||||||||
| · | Coverage network in mainland China covered 79 cities as of June 30, 2022, compared with 81 cities as of June 30, 2021 and 83 cities as of March 31, 2022. |
| · | Number of relationship managers was 1,255 as of June 30, 2022, a 1.0% decrease from June 30, 2021, and a 2.0% decrease from March 31, 2022. |
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 June 30, 2022 were RMB155.4 billion (US$23.2 billion), a 0.4% decrease from March 31, 2022 and a 0.3% decrease from June 30, 2021, mainly due to higher distribution of private equity assets during the second quarter of 2022. |
2 “Active clients” for a given period refers to registered high net worth investors who purchase investment products distributed or provided by Noah during that given period, excluding clients who transacted only on our online mutual fund platforms.
3 “Other products” refers to other investment products, which includes insurance products, multi-strategies products and others.
2
| Investment type | As of March 31, 2022 | Growth | Distribution/ Redemption | As of June 30, 2022 | ||||||||||||||||||||
| (RMB billions, except percentages) | ||||||||||||||||||||||||
| Private equity | 132.7 | 85.0 | % | 3.8 | 4.5 | 132.0 | 84.9 | % | ||||||||||||||||
| Public securities4 | 10.4 | 6.6 | % | 0.6 | 0.3 | 10.7 | 6.9 | % | ||||||||||||||||
| Real estate | 6.2 | 4.1 | % | 0.1 | 0.1 | 6.2 | 4.1 | % | ||||||||||||||||
| Multi-strategies | 5.4 | 3.4 | % | - | 0.3 | 5.1 | 3.2 | % | ||||||||||||||||
| Others | 1.4 | 0.9 | % | - | - | 1.4 | 0.9 | % | ||||||||||||||||
| All Investments | 156.1 | 100.0 | % | 4.5 | 5.2 | 155.4 | 100.0 | % | ||||||||||||||||
Other Businesses
Our other businesses segment mainly provides more comprehensive services and investment products to our clients.
Ms. Jingbo Wang, co-founder and CEO of Noah, said, “I am glad that Noah Holdings’ secondary listing in Hong Kong has been successfully completed, partially mitigating the ADR delisting risk. The Board has approved a motion to pursue the voluntary conversion to dual-primary listing in Hong Kong, and we hope to deliver good news on the matter in the coming quarters. The Board also approved and adopted a new dividend policy in August 2022, to share a part of our non-GAAP net income attributable to Noah shareholders every year with the shareholders, which is a commitment we will try our best to fulfill. In the second quarter of 2022, our non-GAAP net income grew 13.3% quarter-on-quarter and 5.4% year-on-year, and the transaction value of private equity and mutual funds grew 23.2% and 71.4% quarter-on-quarter respectively, representing an expected recovery from the last quarter, while we continued to see volatilities in the market pressuring the distribution of private secondary products. I am happy to see the number of our core clients, diamond and black card, continued to grow at 6.1% and 20.5% year-on-year respectively amid complicated market environment. We expect to see continued challenges from China’s prolonged COVID-19 control measures and the slower growth of economy, and reiterate the importance of our recommended asset allocation strategy “Protection over Growth”, and further suggest our clients to rebalance their global assets to achieve a domestic and international ‘dual circulation’ model.”
SECOND QUARTER 2022 FINANCIAL RESULTS
Net Revenues
Net revenues for the second quarter of 2022 were RMB738.1 million (US$110.2 million), a 17.9% decrease from the corresponding period in 2021, primarily driven by decreased one-time commissions and performance based income, partially offset by increased other service fees.
| · | Wealth Management Business |
| · | Net revenues from one-time commissions for the second quarter of 2022 were RMB177.8 million (US$26.5 million), a 17.4% decrease year-on-year, primarily due to decreased transaction value in relation to private secondary products as well as private equity products compared with the second quarter of 2021. |
| · | Net revenues from recurring service fees for the second quarter of 2022 were RMB290.4 million (US$43.4 million), a 14.6% decrease year-on-year. The decrease was primarily due to the service fees recognized upon liquidation of certain credit products with higher fee rates in the second quarter of 2021. |
4 The asset distribution/redemption of public securities also includes market appreciation or depreciation.
3
| · | Net revenues from performance-based income for the second quarter of 2022 were RMB13.2 million (US$2.0 million), a 76.2% decrease from the corresponding period of 2021, primarily due to less performance-based income from public securities products. |
| · | Net revenues from other service fees for the second quarter of 2022 were RMB27.2 million (US$4.1 million), an 86.7% increase from the corresponding period in 2021, primarily due to more value-added services Noah offers to its high net worth clients. |
| · | Asset Management Business |
| · | Net revenues from one-time commissions for the second quarter of 2022 was RMB29.2 million (US$4.4 million), a 7.4% decrease year-on-year due to less private equity products sold compared with the second quarter of 2021. |
| · | Net revenues from recurring service fees for the second quarter of 2022 were RMB168.5 million (US$25.2 million), a 6.3% increase from the corresponding period in 2021, due to an increase in the amount of private equity products managed by Gopher. |
| · | Net revenues from performance-based income for the second quarter of 2022 were RMB12.6 million (US$1.9 million), an 81.0% decrease year-on-year, primarily due to a decrease in performance-based income from real estate products and offshore private equity products compared with the second quarter of 2021. |
| · | Other Businesses |
| · | Net revenues for the second quarter of 2022 were RMB19.2 million (US$2.9 million), compared with RMB17.5 million for the corresponding period in 2021, due to more value added services provided. |
Operating Costs and Expenses
Operating costs and expenses for the second quarter of 2022 were RMB415.0 million (US$62.0 million), a 26.4% decrease from the corresponding period in 2021. Operating costs and expenses primarily consisted of compensation and benefits of RMB357.8 million (US$53.4 million), selling expenses of RMB70.3 million (US$10.5 million), general and administrative expenses of RMB35.6 million (US$5.3 million), reversal of credit losses of RMB5.8 million (US$0.9 million) and other operating expenses of RMB22.7 million (US$3.4 million).
| · | Operating costs and expenses for the wealth management business for the second quarter of 2022 were RMB314.8 million (US$47.0 million), a 29.9% decrease from the corresponding period in 2021, primarily due to a decrease in compensation and benefits in line with decreased transaction value and selling expenses as well as general administrative expenses due to COVID-19 lockdown measures in Shanghai. |
| · | Operating costs and expenses for the asset management business for the second quarter of 2022 were RMB67.8 million (US$10.1 million), an 18.8% decrease from the corresponding period in 2021, primarily due to decreased selling and general and administrative expenses due to COVID-19 lockdown measures in Shanghai. |
| · | Operating costs and expenses for other businesses for the second quarter of 2022 were RMB32.4 million (US$4.8 million), compared with RMB31.7 million from the corresponding period in 2021. |
4
Operating Margin
Operating margin for the second quarter of 2022 was 43.8%, increased from 37.3% for the corresponding period in 2021.
| · | Operating margin for the wealth management business for the second quarter of 2022 was 38.1%, compared with 28.2% for the corresponding period in 2021, due to less expenses incurred due to the COVID-19 lockdown measures in Shanghai. |
| · | Operating margin for the asset management business for the second quarter of 2022 was 67.8%, compared with 67.4% for the corresponding period in 2021. |
| · | Loss from operation for other businesses for the second quarter of 2022 was RMB13.3 million (US$2.0 million), compared with an operating loss of RMB14.2 million for the corresponding period in 2021. |
Investment Income
Investment income for the second quarter of 2022 was RMB5.2 million (US$0.8 million), compared with RMB3.5 million for the corresponding period in 2021.
Income Tax Expenses
Income tax expenses for the second quarter of 2022 were RMB78.2 million (US$11.7 million), a 13.7% increase year-on-year, primarily due to more taxable income compared with the second quarter of 2021.
Income from Equity in Affiliates
Income from equity in affiliates for the second quarter of 2022 was RMB69.2 million (US$10.3 million), a 29.5% increase from the corresponding period in 2021, primarily due to the increase in net income of the funds of funds that we manage and invest in as the general partner or fund manager.
Net Income
| · | Net Income |
| · | Net income for the second quarter of 2022 was RMB348.9 million (US$52.1 million), a 13.3% increase from the corresponding period in 2021. |
| · | Net margin for the second quarter of 2022 was 47.3%, up from 34.2% for the corresponding period in 2021. |
| · | Net income attributable to Noah shareholders for the second quarter of 2022 was RMB349.0 million (US$52.1 million), a 14.2% increase from the corresponding period in 2021. |
| · | Net margin attributable to Noah shareholders for the second quarter of 2022 was 47.3%, up from 34.0% for the corresponding period in 2021. |
| · | Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2022 was RMB5.19 (US$0.77) and RMB5.18 (US$0.77), respectively, up from RMB4.56 and RMB4.53 respectively, for the corresponding period in 2021. |
| · | Non-GAAP Net Income Attributable to Noah Shareholders |
| · | Non-GAAP net income attributable to Noah shareholders for the second quarter of 2022 was RMB355.1 million (US$53.0 million), a 5.4% increase from the corresponding period in 2021. |
| · | Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2022 was 48.1%, compared with 37.5% for the corresponding period in 2021. |
| · | Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2022 was RMB5.28 (US$0.79), up from RMB5.00 for the corresponding period in 2021. |
5
Balance Sheet and Cash Flow
As of June 30, 2022, the Company had RMB3,608.0 million (US$538.7 million) in cash and cash equivalents, compared with RMB3,899.9 million as of March 31, 2022 and RMB2,686.4 million as of June 30, 2021.
Net cash outflow from the Company’s operating activities during the second quarter of 2022 was RMB289.7 million (US$43.3 million), primarily due to payment of employee annual bonuses and annual tax filing.
Net cash outflow from the Company’s investing activities during the second quarter of 2022 was RMB17.1 million (US$2.5 million), primarily due to several investments made.
Net cash inflow from the Company’s financing activities was RMB0.5 million (US$0.1 million) in the second quarter of 2022, primarily related to the proceeds from issuance of ordinary shares upon exercise of stock options.
2022 FORECAST
The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2022 will be in the range of RMB1.45 billion to RMB1.55 billion. This estimate reflects management’s current business outlook and is subject to change.
CONFERENCE CALL
Senior management will host a combined English and Chinese language conference call to discuss the Company’s second quarter 2022 unaudited financial results and recent business activities.
The conference call may be accessed with the following details:
| Conference call details | |
Date/Time:
|
Monday, August 22, 2022 at 8:00 p.m., U.S. Eastern Time Tuesday, August 23, 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 2Q22 Earnings Conference Call |
| Participant Password: | 6885355 |
A telephone replay will be available starting one hour after the end of the conference call until August 29, 2022 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 9147064.
A live and archived webcast of the conference call will be available at Noah's investor relations website under the Announcements & Events section at https://ir.noahgroup.com/financial-information/quarterly-results.
6
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, 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.
When evaluating the Company’s operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company’s management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH and HKEX:6686) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. Noah is a Cayman Islands holding company and carries on business in Hong Kong as Noah Holdings Private Wealth and Asset Management Limited. In the first half of 2022, Noah distributed RMB34.3 billion (US$5.4 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB155.4 billion (US$23.2 billion) as of June 30, 2022.
Noah’s wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah's network covers 79 cities in mainland China, as well as offices in Hong Kong, Taiwan, New York, Silicon Valley and Singapore. A total of 1,255 relationship managers provide customized financial solutions for clients through this network, and meet their international investment needs. The Company’s wealth management business had 418,675 registered clients as of June 30, 2022. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. The Company also provides other businesses.
For more information, please visit Noah at ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the second quarter of 2022 ended June 30, 2022 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.6981 to US$1.00, the effective noon buying rate for June 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.
7
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 and other filings with the SEC and the prospectus registered in Hong Kong. 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 --
8
Noah Holdings Limited
Condensed Consolidated Balance Sheets
(unaudited)
| As of | ||||||||||||
| March 31, | June 30, | June 30, | ||||||||||
| 2022 | 2022 | 2022 | ||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 3,899,892 | 3,608,044 | 538,667 | |||||||||
| Restricted cash | 512 | 2,689 | 401 | |||||||||
| Short-term investments | 64,347 | 85,889 | 12,823 | |||||||||
| Accounts receivable, net | 396,485 | 515,361 | 76,941 | |||||||||
| Loans receivable, net | 578,355 | 607,586 | 90,710 | |||||||||
| Amounts due from related parties | 532,533 | 562,755 | 84,017 | |||||||||
| Other current assets | 170,813 | 210,623 | 31,445 | |||||||||
| Total current assets | 5,642,937 | 5,592,947 | 835,004 | |||||||||
| Long-term investments, net | 699,174 | 711,839 | 106,275 | |||||||||
| Investment in affiliates | 1,430,346 | 1,510,503 | 225,512 | |||||||||
| Property and equipment, net | 2,544,521 | 2,506,121 | 374,154 | |||||||||
| Operating lease right-of-use assets, net | 212,993 | 197,934 | 29,551 | |||||||||
| Deferred tax assets | 335,911 | 335,845 | 50,140 | |||||||||
| Other non-current assets | 162,206 | 159,859 | 23,866 | |||||||||
| Total Assets | 11,028,088 | 11,015,048 | 1,644,502 | |||||||||
| Liabilities and Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accrued payroll and welfare expenses | 880,353 | 618,933 | 92,404 | |||||||||
| Income tax payable | 236,915 | 51,317 | 7,661 | |||||||||
| Deferred revenues | 79,970 | 64,242 | 9,591 | |||||||||
| Other current liabilities | 518,214 | 531,344 | 79,328 | |||||||||
| Contingent liabilities | 431,080 | 455,479 | 68,001 | |||||||||
| Total current liabilities | 2,146,532 | 1,721,315 | 256,985 | |||||||||
| Operating lease liabilities, non-current | 120,790 | 95,995 | 14,332 | |||||||||
| Deferred tax liabilities | 232,848 | 232,332 | 34,686 | |||||||||
| Other non-current liabilities | 83,931 | 87,243 | 13,025 | |||||||||
| Total Liabilities | 2,584,101 | 2,136,885 | 319,028 | |||||||||
| Equity | 8,443,987 | 8,878,163 | 1,325,474 | |||||||||
| Total Liabilities and Equity | 11,028,088 | 11,015,048 | 1,644,502 | |||||||||
9
Noah Holdings Limited
Condensed Consolidated Income Statements
(In RMB'000, except for ADS data, per ADS data and percentages)
(unaudited)
| Three months ended | ||||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||||
| 2021 | 2022 | 2022 | Change | |||||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||||||
| Revenues: | ||||||||||||||||
| Revenues from others: | ||||||||||||||||
| One-time commissions | 195,891 | 177,339 | 26,476 | (9.5 | )% | |||||||||||
| Recurring service fees | 218,988 | 184,300 | 27,515 | (15.8 | )% | |||||||||||
| Performance-based income | 46,468 | 9,481 | 1,415 | (79.6 | )% | |||||||||||
| Other service fees | 32,283 | 52,521 | 7,841 | 62.7 | % | |||||||||||
| Total revenues from others | 493,630 | 423,641 | 63,247 | (14.2 | )% | |||||||||||
| Revenues from funds Gopher manages: | ||||||||||||||||
| One-time commissions | 52,377 | 30,893 | 4,612 | (41.0 | )% | |||||||||||
| Recurring service fees | 282,333 | 277,359 | 41,409 | (1.8 | )% | |||||||||||
| Performance-based income | 76,101 | 16,533 | 2,468 | (78.3 | )% | |||||||||||
| Total revenues from funds Gopher manages | 410,811 | 324,785 | 48,489 | (20.9 | )% | |||||||||||
| Total revenues | 904,441 | 748,426 | 111,736 | (17.2 | )% | |||||||||||
| Less: VAT related surcharges | (5,052 | ) | (10,284 | ) | (1,535 | ) | 103.6 | % | ||||||||
| Net revenues | 899,389 | 738,142 | 110,201 | (17.9 | )% | |||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship managers | (153,275 | ) | (131,519 | ) | (19,635 | ) | (14.2 | )% | ||||||||
| Others | (242,507 | ) | (226,286 | ) | (33,784 | ) | (6.7 | )% | ||||||||
| Total compensation and benefits | (395,782 | ) | (357,805 | ) | (53,419 | ) | (9.6 | )% | ||||||||
| Selling expenses | (99,463 | ) | (70,307 | ) | (10,497 | ) | (29.3 | )% | ||||||||
| General and administrative expenses | (77,892 | ) | (35,649 | ) | (5,322 | ) | (54.2 | )% | ||||||||
| (Provision)/reversal for credit losses | (2,112 | ) | 5,788 | 864 | N.A. | |||||||||||
| Other operating expenses | (28,082 | ) | (22,677 | ) | (3,386 | ) | (19.2 | )% | ||||||||
| Government subsidies | 39,300 | 65,653 | 9,802 | 67.1 | % | |||||||||||
| Total operating costs and expenses | (564,031 | ) | (414,997 | ) | (61,958 | ) | (26.4 | )% | ||||||||
| Income from operations | 335,358 | 323,145 | 48,243 | (3.6 | )% | |||||||||||
| Other income: | ||||||||||||||||
| Interest income | 18,212 | 17,681 | 2,640 | (2.9 | )% | |||||||||||
| Investment income | 3,487 | 5,174 | 772 | 48.4 | % | |||||||||||
| Settlement expenses | (19,190 | ) | - | - | N.A. | |||||||||||
| Other (expenses) income | (14,617 | ) | 11,849 | 1,769 | N.A. | |||||||||||
| Total other (expenses) income | (12,108 | ) | 34,704 | 5,181 | N.A. | |||||||||||
| Income before taxes and income from equity in affiliates | 323,250 | 357,849 | 53,424 | 10.7 | % | |||||||||||
| Income tax expense | (68,720 | ) | (78,164 | ) | (11,670 | ) | 13.7 | % | ||||||||
| Income from equity in affiliates | 53,420 | 69,203 | 10,332 | 29.5 | % | |||||||||||
| Net income | 307,950 | 348,888 | 52,086 | 13.3 | % | |||||||||||
| Less: net income (loss) attributable to non-controlling interests | 2,424 | (117 | ) | (17 | ) | N.A. | ||||||||||
| Net income attributable to Noah shareholders | 305,526 | 349,005 | 52,103 | 14.2 | % | |||||||||||
| Income per ADS, basic | 4.56 | 5.19 | 0.77 | 13.8 | % | |||||||||||
| Income per ADS, diluted | 4.53 | 5.18 | 0.77 | 14.3 | % | |||||||||||
| Margin analysis: | ||||||||||||||||
| Operating margin | 37.3 | % | 43.8 | % | 43.8 | % | ||||||||||
| Net margin | 34.2 | % | 47.3 | % | 47.3 | % | ||||||||||
| Weighted average ADS equivalent[1]: | ||||||||||||||||
| Basic | 66,993,114 | 67,245,724 | 67,245,724 | |||||||||||||
| Diluted | 67,449,200 | 67,310,698 | 67,310,698 | |||||||||||||
| ADS equivalent outstanding at end of period | 60,080,070 | 60,222,116 | 60,222,116 | |||||||||||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs.
10
Noah Holdings Limited
Condensed Consolidated Income Statements
(In RMB'000, except for USD data, per ADS data and percentages)
(unaudited)
| Six months ended | ||||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||||
| 2021 | 2022 | 2022 | Change | |||||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||||||
| Revenues: | ||||||||||||||||
| Revenues from others: | ||||||||||||||||
| One-time commissions | 474,595 | 258,493 | 38,592 | (45.5 | )% | |||||||||||
| Recurring service fees | 439,501 | 377,679 | 56,386 | (14.1 | )% | |||||||||||
| Performance-based income | 322,992 | 152,392 | 22,752 | (52.8 | )% | |||||||||||
| Other service fees | 55,996 | 91,281 | 13,628 | 63.0 | % | |||||||||||
| Total revenues from others | 1,293,084 | 879,845 | 131,358 | (32.0 | )% | |||||||||||
| Revenues from funds Gopher manages: | ||||||||||||||||
| One-time commissions | 98,523 | 52,048 | 7,771 | (47.2 | )% | |||||||||||
| Recurring service fees | 539,030 | 570,411 | 85,160 | 5.8 | % | |||||||||||
| Performance-based income | 204,657 | 48,600 | 7,256 | (76.3 | )% | |||||||||||
| Total revenues from funds Gopher manages | 842,210 | 671,059 | 100,187 | (20.3 | )% | |||||||||||
| Total revenues | 2,135,294 | 1,550,904 | 231,545 | (27.4 | )% | |||||||||||
| Less: VAT related surcharges | (11,169 | ) | (17,070 | ) | (2,548 | ) | 52.8 | % | ||||||||
| Net revenues | 2,124,125 | 1,533,834 | 228,997 | (27.8 | )% | |||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship managers | (360,147 | ) | (241,514 | ) | (36,057 | ) | (32.9 | )% | ||||||||
| Others | (617,760 | ) | (474,196 | ) | (70,796 | ) | (23.2 | )% | ||||||||
| Total compensation and benefits | (977,907 | ) | (715,710 | ) | (106,853 | ) | (26.8 | )% | ||||||||
| Selling expenses | (182,918 | ) | (130,213 | ) | (19,440 | ) | (28.8 | )% | ||||||||
| General and administrative expenses | (158,177 | ) | (93,856 | ) | (14,012 | ) | (40.7 | )% | ||||||||
| (Provision)/reversal for credit losses | (5,519 | ) | 14,986 | 2,237 | N.A. | |||||||||||
| Other operating expenses | (55,170 | ) | (52,312 | ) | (7,810 | ) | (5.2 | )% | ||||||||
| Government subsidies | 93,314 | 80,211 | 11,975 | (14.0 | )% | |||||||||||
| Total operating costs and expenses | (1,286,377 | ) | (896,894 | ) | (133,903 | ) | (30.3 | )% | ||||||||
| Income from operations | 837,748 | 636,940 | 95,094 | (24.0 | )% | |||||||||||
| Other income: | ||||||||||||||||
| Interest income | 41,139 | 30,318 | 4,526 | (26.3 | )% | |||||||||||
| Investment income | 37,848 | 30,547 | 4,561 | (19.3 | )% | |||||||||||
| Settlement expenses | (19,190 | ) | - | - | N.A. | |||||||||||
| Other income (expense) | (15,103 | ) | 11,571 | 1,728 | N.A. | |||||||||||
| Total other income | 44,694 | 72,436 | 10,815 | 62.1 | % | |||||||||||
| Income before taxes and income from equity in affiliates | 882,442 | 709,376 | 105,909 | (19.6 | )% | |||||||||||
| Income tax expense | (198,566 | ) | (155,500 | ) | (23,216 | ) | (21.7 | )% | ||||||||
| Income from equity in affiliates | 76,933 | 99,223 | 14,814 | 29.0 | % | |||||||||||
| Net income | 760,809 | 653,099 | 97,507 | (14.2 | )% | |||||||||||
| Less: net income (loss) attributable to non-controlling interests | 1,190 | (1,148 | ) | (171 | ) | N.A. | ||||||||||
| Net income attributable to Noah shareholders | 759,619 | 654,247 | 97,678 | (13.9 | )% | |||||||||||
| Income per ADS, basic | 11.33 | 9.73 | 1.45 | (14.1 | )% | |||||||||||
| Income per ADS, diluted | 11.25 | 9.70 | 1.45 | (13.8 | )% | |||||||||||
| Margin analysis: | ||||||||||||||||
| Operating margin | 39.4 | % | 41.5 | % | 41.5 | % | ||||||||||
| Net margin | 35.8 | % | 42.6 | % | 42.6 | % | ||||||||||
| Weighted average ADS equivalent[1]: | ||||||||||||||||
| Basic | 67,042,174 | 67,240,800 | 67,240,800 | |||||||||||||
| Diluted | 67,497,514 | 67,428,368 | 67,428,368 | |||||||||||||
| ADS equivalent outstanding at end of period | 60,080,070 | 60,222,116 | 60,222,116 | |||||||||||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs.
11
Noah Holdings Limited
Condensed Comprehensive Income Statements
(unaudited)
| Three months ended | ||||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||||
| 2021 | 2022 | 2022 | Change | |||||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||||||
| Net income | 307,950 | 348,888 | 52,086 | 13.3 | % | |||||||||||
| Other comprehensive income, net of tax: | ||||||||||||||||
| Foreign currency translation adjustments | (22,809 | ) | 75,557 | 11,280 | N.A. | |||||||||||
| Fair value fluctuation of available for sale Investment (after tax) | 134 | - | - | N.A. | ||||||||||||
| Comprehensive income | 285,275 | 424,445 | 63,366 | 48.8 | % | |||||||||||
| Less: Comprehensive income/(loss) attributable to non-controlling interests | 2,411 | (183 | ) | (27 | ) | N.A. | ||||||||||
| Comprehensive income attributable to Noah shareholders | 282,864 | 424,628 | 63,393 | 50.1 | % | |||||||||||
Noah Holdings Limited
Condensed Comprehensive Income Statements
(unaudited)
| Six months ended | ||||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||||
| 2021 | 2022 | 2022 | Change | |||||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||||||
| Net income | 760,809 | 653,099 | 97,507 | (14.2 | )% | |||||||||||
| Other comprehensive income, net of tax: | ||||||||||||||||
| Foreign currency translation adjustments | (14,400 | ) | 140,097 | 20,916 | N.A. | |||||||||||
| Fair value fluctuation of available for sale Investment (after tax) | 134 | - | - | N.A. | ||||||||||||
| Comprehensive income | 746,543 | 793,196 | 118,423 | 6.2 | % | |||||||||||
| Less: Comprehensive income attributable to non-controlling interests | 1,210 | (1,065 | ) | (159 | ) | N.A. | ||||||||||
| Comprehensive income attributable to Noah shareholders | 745,333 | 794,261 | 118,582 | 6.6 | % | |||||||||||
12
Noah Holdings Limited
Supplemental Information
(unaudited)
| As of | ||||||||||||
| June 30, 2021 | June 30, 2022 | Change | ||||||||||
| Number of registered clients | 397,235 | 418,675 | 5.4 | % | ||||||||
| Number of relationship managers | 1,268 | 1,255 | (1.0 | )% | ||||||||
| Number of cities in mainland China under coverage | 81 | 79 | (2.5 | )% | ||||||||
| Three months ended | ||||||||||||
| June 30, 2021 | June 30, 2022 | Change | ||||||||||
| (in millions of RMB, except number of active clients and percentages) | ||||||||||||
| Number of active clients | 4,676 | 2,272 | (51.4 | )% | ||||||||
| Number of active clients including mutual fund clients | 20,290 | 12,866 | (36.6 | )% | ||||||||
| Transaction value: | ||||||||||||
| Private equity products | 6,472 | 3,918 | (39.5 | )% | ||||||||
| Private secondary products | 7,708 | 2,394 | (68.9 | )% | ||||||||
| Mutual fund products | 9,375 | 12,190 | 30.0 | % | ||||||||
| Other products | 1,446 | 814 | (43.7 | )% | ||||||||
| Total transaction value | 25,001 | 19,316 | (22.7 | )% | ||||||||
13
Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
| Three months ended June 30, 2022 | ||||||||||||||||
| Wealth Management Business | Asset Management Business | Other Businesses | Total | |||||||||||||
| RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||||||||||||
| Revenues: | ||||||||||||||||
| Revenues from others | ||||||||||||||||
| One-time commissions | 177,339 | - | - | 177,339 | ||||||||||||
| Recurring service fees | 184,300 | - | - | 184,300 | ||||||||||||
| Performance-based income | 9,481 | - | - | 9,481 | ||||||||||||
| Other service fees | 27,375 | - | 25,146 | 52,521 | ||||||||||||
| Total revenues from others | 398,495 | - | 25,146 | 423,641 | ||||||||||||
| Revenues from funds Gopher manages | ||||||||||||||||
| One-time commissions | 1,518 | 29,375 | - | 30,893 | ||||||||||||
| Recurring service fees | 107,767 | 169,592 | - | 277,359 | ||||||||||||
| Performance-based income | 3,837 | 12,696 | - | 16,533 | ||||||||||||
| Total revenues from funds Gopher manages | 113,122 | 211,663 | - | 324,785 | ||||||||||||
| Total revenues | 511,617 | 211,663 | 25,146 | 748,426 | ||||||||||||
| Less: VAT related surcharges | (2,976 | ) | (1,313 | ) | (5,995 | ) | (10,284 | ) | ||||||||
| Net revenues | 508,641 | 210,350 | 19,151 | 738,142 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship managers | (120,258 | ) | (11,261 | ) | - | (131,519 | ) | |||||||||
| Others | (153,046 | ) | (63,241 | ) | (9,999 | ) | (226,286 | ) | ||||||||
| Total compensation and benefits | (273,304 | ) | (74,502 | ) | (9,999 | ) | (357,805 | ) | ||||||||
| Selling expenses | (60,479 | ) | (8,244 | ) | (1,584 | ) | (70,307 | ) | ||||||||
| General and administrative expenses | (18,821 | ) | (12,287 | ) | (4,541 | ) | (35,649 | ) | ||||||||
| Provision for credit losses | 141 | (441 | ) | 6,088 | 5,788 | |||||||||||
| Other operating expenses | 915 | (113 | ) | (23,479 | ) | (22,677 | ) | |||||||||
| Government subsidies | 36,750 | 27,822 | 1,081 | 65,653 | ||||||||||||
| Total operating costs and expenses | (314,798 | ) | (67,765 | ) | (32,434 | ) | (414,997 | ) | ||||||||
| Income (loss) from operations | 193,843 | 142,585 | (13,283 | ) | 323,145 | |||||||||||
14
Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
| Three months ended June 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 | 195,891 | - | - | 195,891 | ||||||||||||
| Recurring service fees | 218,988 | - | - | 218,988 | ||||||||||||
| Performance-based income | 46,468 | - | - | 46,468 | ||||||||||||
| Other service fees | 14,665 | - | 17,618 | 32,283 | ||||||||||||
| Total revenues from others | 476,012 | - | 17,618 | 493,630 | ||||||||||||
| Revenues from funds Gopher manages | ||||||||||||||||
| One-time commissions | 20,705 | 31,672 | - | 52,377 | ||||||||||||
| Recurring service fees | 123,031 | 159,302 | - | 282,333 | ||||||||||||
| Performance-based income | 9,507 | 66,594 | - | 76,101 | ||||||||||||
| Total revenues from funds Gopher manages | 153,243 | 257,568 | - | 410,811 | ||||||||||||
| Total revenues | 629,255 | 257,568 | 17,618 | 904,441 | ||||||||||||
| Less: VAT related surcharges | (3,665 | ) | (1,299 | ) | (88 | ) | (5,052 | ) | ||||||||
| Net revenues | 625,590 | 256,269 | 17,530 | 899,389 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship managers | (149,874 | ) | (3,401 | ) | - | (153,275 | ) | |||||||||
| Others | (154,463 | ) | (74,017 | ) | (14,027 | ) | (242,507 | ) | ||||||||
| Total compensation and benefits | (304,337 | ) | (77,418 | ) | (14,027 | ) | (395,782 | ) | ||||||||
| Selling expenses | (82,726 | ) | (10,496 | ) | (6,241 | ) | (99,463 | ) | ||||||||
| General and administrative expenses | (54,091 | ) | (16,676 | ) | (7,125 | ) | (77,892 | ) | ||||||||
| Provision for credit losses | - | - | (2,112 | ) | (2,112 | ) | ||||||||||
| Other operating expenses | (12,758 | ) | (1,424 | ) | (13,900 | ) | (28,082 | ) | ||||||||
| Government subsidies | 4,997 | 22,579 | 11,724 | 39,300 | ||||||||||||
| Total operating costs and expenses | (448,915 | ) | (83,435 | ) | (31,681 | ) | (564,031 | ) | ||||||||
| Income (loss) from operations | 176,675 | 172,834 | (14,151 | ) | 335,358 | |||||||||||
15
Noah Holdings Limited
Supplement Revenue Information by Geography
(unaudited)
| Three months ended June 30, 2022 | ||||||||||||||||
| Wealth Management Business | Asset Management Business | Other Businesses | Total | |||||||||||||
| RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||||||||||||
| Revenues: | ||||||||||||||||
| Mainland China | 378,862 | 184,939 | 25,146 | 588,947 | ||||||||||||
| Hong Kong | 111,125 | 9,117 | - | 120,242 | ||||||||||||
| Others | 21,630 | 17,607 | - | 39,237 | ||||||||||||
| Total revenues | 511,617 | 211,663 | 25,146 | 748,426 | ||||||||||||
| Three months ended June 30, 2021 | ||||||||||||||||
| Wealth Management Business | Asset Management Business | Other Businesses | Total | |||||||||||||
| RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||||||||||||
| Revenues: | ||||||||||||||||
| Mainland China | 450,226 | 209,183 | 17,618 | 677,027 | ||||||||||||
| Hong Kong | 143,309 | 38,942 | - | 182,251 | ||||||||||||
| Others | 35,720 | 9,443 | - | 45,163 | ||||||||||||
| Total revenues | 629,255 | 257,568 | 17,618 | 904,441 | ||||||||||||
16
Noah Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In RMB, except for per ADS data and percentages)
(unaudited)
| Three months ended | ||||||||||||
| June 30, | June 30, | |||||||||||
| 2021 | 2022 | Change | ||||||||||
| RMB'000 | RMB'000 | |||||||||||
| Net income attributable to Noah shareholders | 305,526 | 349,005 | 14.2 | % | ||||||||
| Adjustment for share-based compensation | 16,034 | 7,990 | (50.2 | )% | ||||||||
| Add: settlement expense | 19,190 | - | N.A. | |||||||||
| Less: tax effect of adjustments | 3,720 | 1,922 | (48.3 | )% | ||||||||
| Adjusted net income attributable to Noah shareholders (non-GAAP) | 337,030 | 355,073 | 5.4 | % | ||||||||
| Net margin attributable to Noah shareholders | 34.0 | % | 47.3 | % | ||||||||
| Non-GAAP net margin attributable to Noah shareholders | 37.5 | % | 48.1 | % | ||||||||
| Net income attributable to Noah shareholders per ADS, diluted | 4.53 | 5.18 | 14.3 | % | ||||||||
| Non-GAAP net income attributable to Noah shareholders per ADS, diluted | 5.00 | 5.28 | 5.6 | % | ||||||||
17
Noah Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In RMB, except for per ADS data and percentages)
(unaudited)
| Six months ended | ||||||||||||
| June 30, | June 30, | |||||||||||
| 2021 | 2022 | Change | ||||||||||
| RMB'000 | RMB'000 | |||||||||||
| Net income attributable to Noah shareholders | 759,619 | 654,247 | (13.9 | )% | ||||||||
| Adjustment for share-based compensation | 26,178 | 18,836 | (28.0 | )% | ||||||||
| Add: settlement expense | 19,190 | - | N.A. | |||||||||
| Less: tax effect of adjustments | 6,074 | 4,529 | (25.4 | )% | ||||||||
| Adjusted net income attributable to Noah shareholders (non-GAAP) | 798,913 | 668,554 | (16.3 | )% | ||||||||
| Net margin attributable to Noah shareholders | 35.8 | % | 42.7 | % | ||||||||
| Non-GAAP net margin attributable to Noah shareholders | 37.6 | % | 43.6 | % | ||||||||
| Net income attributable to Noah shareholders per ADS, diluted | 11.25 | 9.70 | (13.8 | )% | ||||||||
| Non-GAAP net income attributable to Noah shareholders per ADS, diluted | 11.84 | 9.92 | (16.2 | )% | ||||||||
18