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 March 2023

 

Commission file number: 001-34936

 

 

Noah Holdings Limited

 

 

Building 2, Changyang Valley, 1687 Changyang Road

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 Form 20-F or Form 40-F.

 

Form 20-F x

Form 40-F ¨

 

 

 

EXHIBIT INDEX

 

Exhibit 99.1

Press Release

 

 

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: March 28, 2023

 

 

 

Exhibit 99.1

 

NOAH HOLDINGS LIMITED ANNOUNCES

 

UNAUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER 2022

 

AND AUDITED FINANCIAL RESULTS FOR FULL YEAR 2022

 

SHANGHAI, March 28, 2023 — Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors, today announced its unaudited financial results for the fourth quarter of 2022 and the audited financial results for the full year ended December 31, 2022.

 

FOURTH QUARTER 2022 FINANCIAL HIGHLIGHTS

 

●

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

 

(RMB millions, except percentages)		Q4 2021				Q4 2022				YoY Change
Wealth management			969.3				646.9				(33.3	)%
Asset management			273.8				223.2				(18.5	)%
Other businesses			17.0				12.0				(29.2	)%
Total net revenues			1,260.1				882.1				(30.0	)%

 

●

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

 

(RMB millions, except percentages)		Q4 2021				Q4 2022				YoY Change
Wealth management			183.6				179.1				(2.5	)%
Asset management			80.8				93.5				15.8	%
Other businesses			(132.1	)			(52.9	)			(60.0	)%
Total income from operations			132.3				219.7				66.1	%

 

●

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

 

 

●

Non-GAAP1 net income attributable to Noah shareholders for the fourth quarter of 2022 was RMB149.2 million (US$21.6 million), a 48.5% decrease from the corresponding period in 2021, and a 21.9% decrease from the third quarter of 2022.

 

FULL YEAR 2022 FINANCIAL HIGHLIGHTS

 

●

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

 

(RMB millions, except percentages)		FY 2021				FY 2022				YoY Change
Wealth management			3,194.9				2,200.0				(31.1	)%
Asset management			1,041.5				834.5				(19.9	)%
Other businesses			56.7				65.9				16.2	%
Total net revenues			4,293.1				3,100.4				(27.8	)%

 

●

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

 

(RMB millions, except percentages)		FY 2021				FY 2022				YoY Change
Wealth management			921.5				741.4				(19.5	)%
Asset management			485.2				447.8				(7.7	)%
Other businesses			(207.8	)			(100.8	)			(51.5	)%
Total income from operations			1,198.9				1,088.4				(9.2	)%

 

●

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

 

●

Non-GAAP net income attributable to Noah shareholders in the full year 2022 was RMB1,008.6 million (US$146.2 million), a 26.5% decrease from the full year 2021.

 

FOURTH QUARTER AND FULL YEAR 2022 OPERATIONAL UPDATES

 

Wealth Management Business

 

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

 

●

Total number of registered clients as of December 31, 2022 was 437,288, a 6.1% increase from December 31, 2021 and a 0.9% increase compared with September 30, 2022.

 

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

 

 

●

Total number of active clients2 who transacted with us during the fourth quarter of 2022 was 12,904, a 26.1% decrease from the fourth quarter of 2021, and a 43.0% decrease from the third quarter of 2022. Total number of active clients who transacted with us during the full year 2022 was 35,877, a 16.1% decrease from the full year 2021.

 

●

Aggregate value of investment products distributed during the fourth quarter of 2022 was RMB18.0 billion (US$2.6 billion), a 14.5% decrease from the corresponding period in 2021, mainly due to a decrease in the distribution of private secondary products due to the volatile secondary market.

 

		Three months ended December 31,
Product type		2021								2022
		(RMB in billions, except percentages)
Mutual fund products			10.2				48.5	%			12.2				67.7	%
Private secondary products			6.7				31.6	%			3.4				18.7	%
Private equity products			3.0				14.5	%			1.4				8.0	%
Other products3			1.1				5.4	%			1.0				5.6	%
All products			21.0				100.0	%			18.0				100.0	%

 

●

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

 

		Twelve months ended December 31,
Product type		2021								2022
		(RMB in billions, except percentages)
Mutual fund products			37.1				38.2	%			43.1				61.4	%
Private secondary products			37.8				38.9	%			13.1				18.6	%
Private equity products			18.1				18.6	%			11.1				15.7	%
Other products			4.2				4.3	%			3.0				4.3	%
All products			97.2				100.0	%			70.3				100.0	%

 

●

Coverage network in mainland China included 75 cities as of December 31, 2022, compared with 76 cities as of September 30, 2022, and 84 cities as of December 31, 2021.

 

●

Number of relationship managers was 1,276 as of December 31, 2022, a 1.5% increase from September 30, 2022, and a 3.0% decrease from December 31, 2021.

 

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.

 

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

³ “Other products” refers to other investment products, which includes insurance products, multi-strategies products and others.

 

 

●

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

 

Investment type		As of September 30, 2022								Growth				Distribution/  Redemption				As of December 31, 2022
		(RMB billions, except percentages)
Private equity			132.8				85.0	%			1.4				1.1				133.1				84.7	%
Public securities4			10.2				6.5	%			1.3				0.5				11.0				7.0	%
Real estate			6.7				4.3	%			0.2				0.1				6.8				4.3	%
Multi-strategies			5.1				3.3	%			-				0.3				4.8				3.1	%
Others			1.4				0.9	%			-				-				1.4				0.9	%
All Investments			156.2				100.0	%			2.9				2.0				157.1				100.0	%

 

Investment type		As of December 31, 2021								Growth				Distribution/ Redemption				As of December 31, 2022
		(RMB billions, except percentages)
Private equity			130.9				83.9	%			11.0				8.8				133.1				84.7	%
Public securities			11.2				7.2	%			2.1				2.3				11.0				7.0	%
Real estate			6.6				4.3	%			1.4				1.2				6.8				4.3	%
Multi-strategies			5.9				3.8	%			-				1.1				4.8				3.1	%
Others			1.4				0.8	%			-				-				1.4				0.9	%
All Investments			156.0				100.0	%			14.5				13.4				157.1				100.0	%

 

Other Businesses

 

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

 

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

 

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

 

 

FOURTH QUARTER 2022 FINANCIAL RESULTS

 

Net Revenues

 

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

 

●

Wealth Management Business

 

●

Net revenues from one-time commissions for the fourth quarter of 2022 were RMB266.1 million (US$38.6 million), a 43.6% decrease from the corresponding period in 2021, due to a decrease in insurance products distributed in fourth quarter of 2022.

 

●

Net revenues from recurring service fees for the fourth quarter of 2022 were RMB318.6 million (US$46.2 million), a 23.6% decrease from the corresponding period in 2021. The decrease was primarily due to the service fees recognized upon liquidation of certain credit products with higher fee rates in the fourth quarter of 2021.

 

●

Net revenues from performance-based income for the fourth quarter of 2022 were RMB14.1 million (US$2.0 million), compared with RMB47.7 million from the corresponding period of 2021, primarily due to a decrease in performance-based income from public securities products and offshore private equity fund products.

 

●

Net revenues from other service fees for the fourth quarter of 2022 were RMB48.1 million (US$7.0 million), a 47.4% increase from the corresponding period in 2021, primarily due to more value-added services Noah offers to its high net worth clients.

 

● Asset Management Business

 

●

Net revenues from recurring service fees for the fourth quarter of 2022 were RMB153.6 million (US$22.3 million), an 8.9% increase from the corresponding period in 2021, due to an increase in the amount of private equity investments managed by Gopher.

 

●

Net revenues from performance-based income for the fourth quarter of 2022 were RMB66.3 million (US$9.6 million), a 47.1% decrease from the corresponding period in 2021, primarily due to a decrease in performance-based income from offshore private equity investments managed by Gopher.

 

●

Other Businesses

 

●

Net revenues for the fourth quarter of 2022 were RMB12.0 million (US$1.7 million), compared with RMB17.0 million in the corresponding period in 2021.

 

Operating Costs and Expenses

 

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

 

●

Operating costs and expenses for the wealth management business for the fourth quarter of 2022 were RMB467.8 million (US$67.8 million), a 40.5% decrease from the corresponding period in 2021, primarily due to a decrease in relationship manager compensation, which is in line with decreased transaction value and a decrease in general and administrative expenses due to our cost control measures implemented.

 

●

Operating costs and expenses for the asset management business for the fourth quarter of 2022 were RMB129.6 million (US$18.8 million), a 32.9% decrease from the corresponding period in 2021, primarily due to less performance fee compensation and less provision for credit losses.

 

 

●

Operating costs and expenses for other businesses for the fourth quarter of 2022 were RMB64.9 million (US$9.4 million), a 56.5% decrease from the corresponding period in 2021, due to less credit losses recorded.

 

Operating Margin

 

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

 

●

Operating margin for the wealth management business for the fourth quarter of 2022 was 27.7%, compared with 18.9% for the corresponding period in 2021, due to less general and administrative expenses incurred due to our cost control measures implemented.

 

●

Operating margin for the asset management business for the fourth quarter of 2022 was 41.9%, compared with 29.5% for the corresponding period in 2021, due to less performance fee compensation recorded in 2022.

 

●

Loss from other businesses for the fourth quarter of 2022 was RMB52.9 million (US$7.7 million), compared with RMB132.1 million in the corresponding period of 2021, primarily due to decreased provision for credit losses.

 

Investment Income

 

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

 

Income Tax Expenses

 

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

 

Income from Equity in Affiliates

 

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

 

Net Income

 

●

Net Income

 

●

Net income for the fourth quarter of 2022 was RMB140.5 million (US$20.4 million), a 48.7% decrease from the corresponding period in 2021.

 

●

Net margin for the fourth quarter of 2022 was 15.9%, down from 21.7% for the corresponding period in 2021, due to less income from equity affiliates recorded compared with corresponding period in 2021.

 

●

Net income attributable to Noah shareholders for the fourth quarter of 2022 was RMB139.9 million (US$20.3 million), a 50.3% decrease from the corresponding period in 2021.

 

●

Net margin attributable to Noah shareholders for the fourth quarter of 2022 was 15.9%, down from 22.3% for the corresponding period in 2021.

 

 

●

Net income attributable to Noah shareholders per basic and diluted ADS for the fourth quarter of 2022 was RMB2.01 (US$0.29) and RMB2.01 (US$0.29), respectively, down from RMB4.18 and RMB4.16 respectively, for the corresponding period in 2021.

 

●

Non-GAAP Net Income Attributable to Noah Shareholders

 

●

Non-GAAP net income attributable to Noah shareholders for the fourth quarter of 2022 was RMB149.2 million (US$21.6 million), a 48.5% decrease from the corresponding period in 2021.

 

●

Non-GAAP net margin attributable to Noah shareholders for the fourth quarter of 2022 was 16.9%, down from 23.0% for the corresponding period in 2021

 

●

Non-GAAP net income attributable to Noah shareholders per diluted ADS for the fourth quarter of 2022 was RMB2.14 (US$0.31), down from RMB4.28 for the corresponding period in 2021.

 

FULL YEAR 2022 FINANCIAL RESULTS

 

Net Revenues

 

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

 

●

Wealth Management Business

 

●

Net revenues from one-time commissions for 2022 were RMB628.6 million (US$91.1 million), a 46.5% decrease from 2021, primarily due to less insurance products distributed.

 

●

Net revenues from recurring service fees for 2022 were RMB1,226.5 million (US$177.8 million), a 16.1% decrease from 2021. The decrease was primarily due to the service fees recognized upon liquidation of certain credit products with higher fee rates for the full year 2021.

 

●

Net revenues from performance-based income for 2022 were RMB201.5 million (US$29.2 million), a 56.8% decrease from 2021, primarily due to a decrease in performance-based income from public securities products and private equity fund products.

 

●

Net revenues from other service fees for 2022 were RMB143.4 million (US$20.8 million), a 56.1% increase from 2021, primarily due to more value-added services Noah offers to its high net worth clients.

 

●

Asset Management Business

 

●

Net revenues from recurring service fees for 2022 were RMB678.3 million (US$98.4 million), a 6.6% increase from 2021.

 

●

Net revenues from performance-based income for 2022 were RMB106.5 million (US$15.4 million), a 66.0% decrease from 2021, primarily due to a decrease in performance-based income from private equity fund products.

 

●

Other Businesses

 

●

Net revenues for 2022 were RMB65.9 million (US$9.6 million), a 16.2% increase from 2021.

 

Operating costs and expenses

 

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

 

 

●

Operating costs and expenses for the wealth management business for 2022 were RMB1,458.5 million (US$211.5 million), a 35.8% decrease from 2021, primarily due to a decrease in compensation and benefits, as well as general and administrative expenses.

 

●

Operating costs and expenses for the asset management business for 2022 were RMB386.6 million (US$56.1 million), a 30.5% decrease from 2021, primarily due to a decrease in compensation and benefits, as well as general and administrative expenses.

 

●

Operating costs and expenses for other businesses for 2022 were RMB166.8 million (US$24.2million), a 37.0% decrease from 2021, primarily due to a decrease in provision for credit losses.

 

Operating Margin

 

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

 

●

Operating margin for the wealth management business for 2022 was 33.7%, compared to 28.8% for 2021, mainly due to cost control measures implemented.

 

●

Operating margin for the asset management business for 2022 was 53.7%, compared to 46.6% for 2021, mainly due to cost control measures implemented.

 

●

Loss from other businesses for 2022 was RMB100.8 million (US$14.6 million), compared with RMB207.8 million for 2021, due to decreased provision of credit losses.

 

Investment Income

 

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

 

Income Tax Expenses

 

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

 

Income from Equity in Affiliates

 

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

 

Net Income

 

●

Net Income

 

●

Net income for the full year 2022 was RMB971.6 million (US$140.9 million), a 25.6% decrease from the full year 2021.

 

●

Net margin for the full year 2022 was 31.3%, up from 30.4% for the corresponding period in 2021.

 

●

Net income attributable to Noah shareholders for the full year 2022 was RMB976.6 million (US$141.6 million), a 25.7% decrease from the full year 2021.

 

●

Net margin attributable to Noah shareholders for the full year 2022 was 31.5%, up from 30.6% for the full year 2021.

 

 

●

Net income attributable to Noah shareholders per basic and diluted ADS for the full year 2022 was RMB14.29 (US$2.07) and RMB14.28 (US$2.07), respectively, down from RMB19.56 and RMB19.45, respectively, for the corresponding period in 2021.

 

●

Non-GAAP Net Income Attributable to Noah Shareholders

 

●

Non-GAAP net income attributable to Noah shareholders for the full year 2022 was RMB1,008.6 million (US$146.2 million), a 26.5% decrease from the full year 2021.

 

●

Non-GAAP net margin attributable to Noah shareholders for the full year 2022 was 32.5%, up from 32.0% for the full year 2021.

 

●

Non-GAAP net income attributable to Noah shareholders per diluted ADS for the full year 2022 was RMB14.75 (US$2.14), down from RMB20.32 for the full year 2021.

 

BALANCE SHEET AND CASH FLOW

 

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

 

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

 

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

 

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

 

RECENT DEVELOPMENT

 

Silicon Valley Bank (“SVB”) Receivership

 

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

 

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

 

 

Resignation of Senior Management Member

 

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

 

CONFERENCE CALL

 

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

 

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

 

Zoom webinar details
Conference title	Noah Holdings 4Q22 Earnings Conference Call
Date/Time	Monday, March 27, 2023 at 8:00 p.m., U.S. Eastern Time Tuesday, March 28, 2023 at 8:00 a.m., Hong Kong Time
Meeting ID:	910 2002 0524
Meeting Passcode:	Noah4Q22
Dial in
- New York:	+1 929 205 6099
- Hong Kong:	+852 3709 4942
- London:	+44 207 660 2677
- Singapore:	+65 6347 5852

 

A replay will be available on the same day of the conference call until April 18, 2023 at the Company's investor relations website under the Quarterly Results section at http://ir.noahgroup.com.

 

DISCUSSION ON NON-GAAP MEASURES

 

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company’s earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation, non-cash settlement expense and net of tax impact, if any. See “Reconciliation of GAAP to Non-GAAP Results” at the end of this press release.

 

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measures used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies.

 

When evaluating the Company’s operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company’s management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.

 

 

ABOUT NOAH HOLDINGS LIMITED

 

Noah Holdings Limited (NYSE: NOAH and HKEX:6686) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. In the full year 2022, Noah distributed RMB70.3 billion (US$10.2 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB157.1 billion (US$22.8 billion) as of December 31, 2022.

 

Noah’s wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah’s network covers 75 cities in mainland China, as well as Hong Kong (China), Taiwan (China), New York, Silicon Valley and Singapore. A total of 1,276 relationship managers provide customized financial solutions for clients through this network, and meet their international investment needs. The Company’s wealth management business had 437,288 registered clients as of December 31, 2022. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in Renminbi and other currencies. The Company also provides other businesses.

 

For more information, please visit Noah at ir.noahgroup.com.

 

FOREIGN CURRENCY TRANSLATION

 

In this announcement, the unaudited financial results for the fourth quarter of 2022 and audited financial results for the full year ended December 31, 2022 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.8972 to US$1.00, the effective noon buying rate for December 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

 

SAFE HARBOR STATEMENT

 

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

 

Contacts:

 

Noah Holdings Limited

Melo Xi

Tel: +86-21-8035-8372

ir@noahgroup.com

 

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

 

 

Noah Holdings Limited
Condensed Consolidated Balance Sheets
		As of
		September 30, 2022				December 31, 2022				December 31, 2022
		(Unaudited)				(Audited)				(Audited)
		RMB'000				RMB'000				USD'000
Assets
Current assets:
Cash and cash equivalents			4,312,827				4,403,915				638,508
Restricted cash			10,311				23,203				3,364
Short-term investments			98,770				315,979				45,813
Accounts receivable, net			426,900				498,106				72,219
Loans receivable, net			566,933				465,780				67,532
Amounts due from related parties			424,821				443,424				64,290
Other current assets			184,506				166,739				24,175
Total current assets			6,025,068				6,317,146				915,901
Long-term investments, net			723,902				774,095				112,232
Investment in affiliates			1,516,292				1,491,820				216,293
Property and equipment, net			2,497,558				2,486,317				360,482
Operating lease right-of-use assets, net			189,906				168,192				24,386
Deferred tax assets			333,522				436,441				63,278
Other non-current assets			160,059				124,124				17,996
Total Assets			11,446,307				11,798,135				1,710,568
Liabilities and Equity
Current liabilities:
Accrued payroll and welfare expenses			543,435				668,953				96,989
Income tax payable			69,214				126,848				18,391
Deferred revenues			81,602				67,967				9,854
Contingent liabilities			483,727				568,018				82,355
Other current liabilities			458,079				473,175				68,604
Total current liabilities			1,636,057				1,904,961				276,193
Operating lease liabilities, non-current			101,110				83,171				12,059
Deferred tax liabilities			231,589				249,768				36,213
Other non-current liabilities			76,330				59,760				8,664
Total Liabilities			2,045,086				2,297,660				333,129
Equity			9,401,221				9,500,475				1,377,439
Total Liabilities and Equity			11,446,307				11,798,135				1,710,568

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(unaudited)

 

		Three months ended
		December 31,				December 31,				December 31,
		2021				2022				2022				Change
			RMB'000				RMB'000				USD'000
Revenues:
Revenues from others:
One-time commissions			472,566				266,592				38,652				(43.6	)%
Recurring service fees			214,835				195,872				28,399				(8.8	)%
Performance-based income			42,115				13,998				2,030				(66.8	)%
Other service fees			54,296				60,870				8,825				12.1	%
Total revenues from others			783,812				537,332				77,906				(31.4	)%
Revenues from funds Gopher manages:
One-time commissions			9,886				3,915				568				(60.4	)%
Recurring service fees			346,747				278,376				40,361				(19.7	)%
Performance-based income			131,988				66,819				9,688				(49.4	)%
Total revenues from funds Gopher manages			488,621				349,110				50,617				(28.6	)%
Total revenues			1,272,433				886,442				128,523				(30.3	)%
Less: VAT related surcharges			(12,379	)			(4,372	)			(634	)			(64.7	)%
Net revenues			1,260,054				882,070				127,889				(30.0	)%
Operating costs and expenses:
Compensation and benefits
Relationship manager compensation			(382,160	)			(146,662	)			(21,264	)			(61.6	)%
Others			(349,004	)			(236,484	)			(34,287	)			(32.2	)%
Total compensation and benefits			(731,164	)			(383,146	)			(55,551	)			(47.6	)%
Selling expenses			(139,906	)			(142,806	)			(20,705	)			2.1	%
General and administrative expenses			(148,015	)			(83,952	)			(12,172	)			(43.3	)%
Provision for credit losses			(100,858	)			(19,836	)			(2,876	)			(80.3	)%
Other operating expenses			(19,644	)			(38,257	)			(5,547	)			94.8	%
Government grants			11,821				5,665				821				(52.1	)%
Total operating costs and expenses			(1,127,766	)			(662,332	)			(96,030	)			(41.3	)%
Income from operations			132,288				219,738				31,859				66.1	%
Other income (expense):
Interest income			14,571				14,251				2,066				(2.2	)%
Investment income			3,469				62,240				9,024				1,694.2	%
Settlement reversal			719				-				-				N.A.
Contingent litigation expenses			-				(99,000	)			(14,354	)			N.A.
Other expense			(2,313	)			(8,507	)			(1,233	)			267.8	%
Total other income (expense)			16,446				(31,016	)			(4,497	)			N.A.
Income before taxes and income from equity in affiliates			148,734				188,722				27,362				26.9	%
Income tax expense			(35,329	)			(60,530	)			(8,776	)			71.3	%
Income from equity in affiliates			160,510				12,331				1,788				(92.3	)%
Net income			273,915				140,523				20,374				(48.7	)%
Less: net (loss) income attributable to non-controlling interests			(7,397	)			614				89				N.A.
Net income attributable to Noah shareholders			281,312				139,909				20,285				(50.3	)%
Income per ADS, basic			4.18				2.01				0.29				(51.9	)%
Income per ADS, diluted			4.16				2.01				0.29				(51.7	)%
Margin analysis:
Operating margin			10.5	%			24.9	%			24.9	%
Net margin			21.7	%			15.9	%			15.9	%
Weighted average ADS equivalent[1]:
Basic			67,348,790				69,593,068				69,593,068
Diluted			67,700,437				69,611,652				69,611,652
ADS equivalent outstanding at end of period			60,338,054				62,603,864				62,603,864

 

 

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

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(Audited)

 

		Twelve months ended
		December 31,				December 31,				December 31,
		2021				2022				2022				Change
			RMB'000				RMB'000				USD'000
Revenues:
Revenues from others:
One-time commissions			1,130,894				617,636				89,549				(45.4	)%
Recurring service fees			913,700				768,980				111,492				(15.8	)%
Performance-based income			391,903				184,048				26,684				(53.0	)%
Other service fees			161,982				223,441				32,396				37.9	%
Total revenues from others			2,598,479				1,794,105				260,121				(31.0	)%
Revenues from funds Gopher manages:
One-time commissions			140,522				63,809				9,251				(54.6	)%
Recurring service fees			1,195,309				1,145,435				166,072				(4.2	)%
Performance-based income			392,290				125,528				18,200				(68.0	)%
Total revenues from funds Gopher manages			1,728,121				1,334,772				193,523				(22.8	)%
Total revenues			4,326,600				3,128,877				453,644				(27.7	)%
Less: VAT related surcharges			(33,506	)			(28,505	)			(4,133	)			(14.9	)%
Net revenues			4,293,094				3,100,372				449,511				(27.8	)%
Operating costs and expenses:
Compensation and benefits
Relationship manager compensation			(920,896	)			(497,147	)			(72,080	)			(46.0	)%
Others			(1,247,984	)			(944,735	)			(136,974	)			(24.3	)%
Total compensation and benefits			(2,168,880	)			(1,441,882	)			(209,054	)			(33.5	)%
Selling expenses			(437,131	)			(349,014	)			(50,602	)			(20.2	)%
General and administrative expenses			(383,321	)			(235,319	)			(34,118	)			(38.6	)%
(Reversal of) Provision for credit losses			(112,959	)			424				61				N.A.
Other operating expenses			(107,844	)			(115,653	)			(16,768	)			7.2	%
Government grants			115,939				129,521				18,779				11.7	%
Total operating costs and expenses			(3,094,196	)			(2,011,923	)			(291,702	)			(35.0	)%
Income from operations			1,198,898				1,088,449				157,809				(9.2	)%
Other income (expense):
Interest income			71,866				61,416				8,904				(14.5	)%
Investment income			65,426				85,554				12,404				30.8	%
Settlement expenses			(19,908	)			-				-				N.A.
Contingent litigation expenses			-				(99,000	)			(14,354	)			N.A.
Other (expense) income			(18,240	)			13,130				1,904				N.A.
Total other income			99,144				61,100				8,858				(38.4	)%
Income before taxes and income from equity in affiliates			1,298,042				1,149,549				166,667				(11.4	)%
Income tax expense			(293,940	)			(267,108	)			(38,727	)			(9.1	)%
Income from equity in affiliates			301,979				89,148				12,925				(70.5	)%
Net income			1,306,081				971,589				140,865				(25.6	)%
Less: net loss attributable to non-controlling interests			(8,050	)			(4,982	)			(722	)			(38.1	)%
Net income attributable to Noah shareholders			1,314,131				976,571				141,587				(25.7	)%
Income per ADS, basic			19.56				14.29				2.07				(26.9	)%
Income per ADS, diluted			19.45				14.28				2.07				(26.6	)%
Margin analysis:
Operating margin			27.9	%			35.1	%			35.1	%
Net margin			30.4	%			31.3	%			31.3	%
Weighted average ADS equivalent[1]:
Basic			67,171,636				68,332,032				68,332,032
Diluted			67,563,546				68,396,142				68,396,142
ADS equivalent outstanding at end of period			60,338,054				62,603,864				62,603,864

 

 

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

 

 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

 

		Three months ended
		December 31,				December 31,				December 31,
		2021				2022				2022				Change
		RMB'000				RMB'000				USD'000
Net income
			273,915				140,523				20,374				(48.7	)%
Other comprehensive income, net of tax:
Foreign currency translation adjustments			(14,094	)			(36,494	)			(5,291	)			159.1	%
Fair value fluctuation of available for sale Investment (after tax)			(243	)			-				-				N.A.
Comprehensive income			259,578				104,029				15,083				(59.9	)%
Less: Comprehensive loss attributable to non-controlling interests			(7,366	)			598				87				N.A.
Comprehensive income attributable to Noah shareholders			266,944				103,431				14,996				(61.3	)%

 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(Audited)

 

		Twelve months ended
		December 31,				December 31,				December 31,
		2021				2022				2022				Change
		RMB'000				RMB'000				USD'000
Net income
			1,306,081				971,589				140,865				(25.6	)%
Other comprehensive income, net of tax:
Foreign currency translation adjustments			(60,851	)			137,555				19,944				N.A.
Comprehensive income			1,245,230				1,109,144				160,809				(10.9	)%
Less: Comprehensive loss attributable to non-controlling interests			(8,001	)			(4,895	)			(710	)			(38.8	)%
Comprehensive income attributable to Noah shareholders			1,253,231				1,114,039				161,519				(11.1	)%

 

 

Noah Holdings Limited

Supplemental Information

(unaudited)

 

		As of
		December 31, 2021				December 31, 2022				Change
Number of registered clients			411,981				437,288				6.1	%
Number of relationship managers			1,316				1,276				(3.0	)%
Number of cities in mainland China under coverage			84				75				(10.7	)%

 

		Three months ended
		December 31,  2021				December 31, 2022				Change
		(in millions of RMB, except number of active clients and percentages)
Number of active clients			17,456				12,904				(26.1	)%
Transaction value:
Private equity products			3,041				1,452				(52.3	)%
Private secondary products			6,659				3,362				(49.5	)%
Mutual fund products			10,207				12,183				19.4	%
Other products			1,136				1,003				(11.7	)%
Total transaction value			21,043				18,000				(14.5	)%

 

		Twelve months ended
		December 31,  2021				December 31, 2022				Change
		(in millions of RMB, except number of active clients and percentages)
Number of active clients			42,764				35,877				(16.1	)%
Transaction value:
Private equity products			18,069				11,037				(38.9	)%
Private secondary products			37,776				13,109				(65.3	)%
Mutual fund products			37,169				43,133				16.0	%
Other products			4,189				3,002				(28.3	)%
Total transaction value			97,203				70,281				(27.7	)%

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

 

		Three months ended December 31, 2022
		Wealth Management Business				Asset Management Business				Other Businesses				Total
		RMB’000				RMB’000				RMB’000				RMB’000
Revenues:
Revenues from others
One-time commissions			266,592				-				-				266,592
Recurring service fees			195,872				-				-				195,872
Performance-based income			13,998				-				-				13,998
Other service fees			48,245				-				12,625				60,870
Total revenues from others			524,707				-				12,625				537,332
Revenues from funds Gopher manages
One-time commissions			576				3,339				-				3,915
Recurring service fees			124,040				154,336				-				278,376
Performance-based income			187				66,632				-				66,819
Total revenues from funds Gopher manages			124,803				224,307				-				349,110
Total revenues			649,510				224,307				12,625				886,442
Less: VAT related surcharges			(2,563	)			(1,139	)			(670	)			(4,372	)
Net revenues			646,947				223,168				11,955				882,070
Operating costs and expenses:
Compensation and benefits
Relationship managers			(137,016	)			(9,646	)			-				(146,662	)
Others			(152,971	)			(73,585	)			(9,928	)			(236,484	)
Total compensation and benefits			(289,987	)			(83,231	)			(9,928	)			(383,146	)
Selling expenses			(121,259	)			(20,611	)			(936	)			(142,806	)
General and administrative expenses			(52,723	)			(22,609	)			(8,620	)			(83,952	)
Reversal of (Provision for) credit losses			249				1,068				(21,153	)			(19,836	)
Other operating expenses			(9,344	)			(4,629	)			(24,284	)			(38,257	)
Government grants			5,224				408				33				5,665
Total operating costs and expenses			(467,840	)			(129,604	)			(64,888	)			(662,332	)
Income (loss) from operations			179,107				93,564				(52,933	)			219,738

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

 

		Three months ended December 31, 2021
		Wealth Management Business				Asset Management Business				Other Businesses				Total
			RMB'000				RMB'000				RMB'000				RMB'000
Revenues:
Revenues from others
One-time commissions			472,566				-				-				472,566
Recurring service fees			214,835				-				-				214,835
Performance-based income			42,115				-				-				42,115
Other service fees			32,814				-				21,482				54,296
Total revenues from others			762,330				-				21,482				783,812
Revenues from funds Gopher manages
One-time commissions			2,488				7,398				-				9,886
Recurring service fees			204,919				141,828				-				346,747
Performance-based income			5,905				126,083				-				131,988
Total revenues from funds Gopher manages			213,312				275,309				-				488,621
Total revenues			975,642				275,309				21,482				1,272,433
Less: VAT related surcharges			(6,358	)			(1,496	)			(4,525	)			(12,379	)
Net revenues			969,284				273,813				16,957				1,260,054
Operating costs and expenses:
Compensation and benefits
Relationship managers			(371,788	)			(10,372	)			-				(382,160	)
Others			(204,386	)			(127,455	)			(17,163	)			(349,004	)
Total compensation and benefits			(576,174	)			(137,827	)			(17,163	)			(731,164	)
Selling expenses			(112,287	)			(19,709	)			(7,910	)			(139,906	)
General and administrative expenses			(103,142	)			(22,247	)			(22,626	)			(148,015	)
Provision for credit losses			(2,691	)			(12,574	)			(85,593	)			(100,858	)
Other operating expenses			(2,507	)			(687	)			(16,450	)			(19,644	)
Government grants			11,101				13				707				11,821
Total operating costs and expenses			(785,700	)			(193,031	)			(149,035	)			(1,127,766	)
Income (loss) from operations			183,584				80,782				(132,078	)			132,288

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(Audited)

 

		Twelve months ended December 31, 2022
		Wealth Management Business				Asset Management Business				Other Businesses				Total
		RMB'000				RMB'000				RMB'000				RMB'000
Revenues:
Revenues from others
One-time commissions			617,636				-				-				617,636
Recurring service fees			768,980				-				-				768,980
Performance-based income			184,048				-				-				184,048
Other service fees			144,101				-				79,340				223,441
Total revenues from others			1,714,765				-				79,340				1,794,105
Revenues from funds Gopher manages
One-time commissions			13,953				49,856				-				63,809
Recurring service fees			463,314				682,121				-				1,145,435
Performance-based income			18,407				107,121				-				125,528
Total revenues from funds Gopher manages			495,674				839,098				-				1,334,772
Total revenues			2,210,439				839,098				79,340				3,128,877
Less: VAT related surcharges			(10,462	)			(4,630	)			(13,413	)			(28,505	)
Net revenues			2,199,977				834,468				65,927				3,100,372
Operating costs and expenses:
Compensation and benefits
Relationship managers			(460,237	)			(36,910	)			-				(497,147	)
Others			(619,397	)			(285,101	)			(40,237	)			(944,735	)
Total compensation and benefits			(1,079,634	)			(322,011	)			(40,237	)			(1,441,882	)
Selling expenses			(299,769	)			(41,885	)			(7,360	)			(349,014	)
General and administrative expenses			(153,643	)			(55,872	)			(25,804	)			(235,319	)
Reversal of (provision for) credit losses			718				386				(680	)			424
Other operating expenses			(15,412	)			(6,369	)			(93,872	)			(115,653	)
Government grants			89,223				39,120				1,178				129,521
Total operating costs and expenses			(1,458,517	)			(386,631	)			(166,775	)			(2,011,923	)
Income (loss) from operations			741,460				447,837				(100,848	)			1,088,449

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(Audited)

 

		Twelve months ended December 31, 2021
		Wealth Management Business				Asset Management Business				Other Businesses				Total
		RMB'000				RMB'000				RMB'000				RMB'000
Revenues:
Revenues from others
One-time commissions			1,130,653				241				-				1,130,894
Recurring service fees			912,506				1,194				-				913,700
Performance-based income			391,903				-				-				391,903
Other service fees			92,352				1,390				68,240				161,982
Total revenues from others			2,527,414				2,825				68,240				2,598,479
Revenues from funds Gopher manages
One-time commissions			50,247				90,275				-				140,522
Recurring service fees			557,094				638,215				-				1,195,309
Performance-based income			77,218				315,072				-				392,290
Total revenues from funds Gopher manages			684,559				1,043,562				-				1,728,121
Total revenues			3,211,973				1,046,387				68,240				4,326,600
Less: VAT related surcharges			(17,076	)			(4,923	)			(11,507	)			(33,506	)
Net revenues			3,194,897				1,041,464				56,733				4,293,094
Operating costs and expenses:
Compensation and benefits
Relationship managers			(900,921	)			(19,975	)			-				(920,896	)
Others			(753,368	)			(430,059	)			(64,557	)			(1,247,984	)
Total compensation and benefits			(1,654,289	)			(450,034	)			(64,557	)			(2,168,880	)
Selling expenses			(354,128	)			(55,790	)			(27,213	)			(437,131	)
General and administrative expenses			(270,253	)			(70,686	)			(42,382	)			(383,321	)
Provision for credit losses			(6,490	)			(13,275	)			(93,194	)			(112,959	)
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

Supplement Revenue Information by Geography

(unaudited)

 

		Three months ended December 31, 2022
		Wealth Management Business				Asset Management Business				Other Businesses				Total
		RMB’000				RMB’000				RMB’000				RMB’000
Revenues:
Mainland China			442,208				147,301				12,625				602,134
Hong Kong			182,111				54,976				-				237,087
Others			25,191				22,030				-				47,221
Total revenues			649,510				224,307				12,625				886,442

 

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

(Audited)

 

		Twelve months ended December 31, 2022
		Wealth Management Business				Asset Management Business				Other Businesses				Total
		RMB’000				RMB’000				RMB’000				RMB’000
Revenues:
Mainland China			1,548,395				672,785				79,340				2,300,520
Hong Kong			508,907				83,029				-				591,936
Others			153,137				83,284				-				236,421
Total revenues			2,210,439				839,098				79,340				3,128,877

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(Audited)

 

		Twelve months ended December 31, 2021
		Wealth Management Business				Asset Management Business				Other Businesses				Total
		RMB’000				RMB’000				RMB’000				RMB’000
Revenues:
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

 

 

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,
		2021				2022				Change
		RMB'000				RMB'000
Net income attributable to Noah shareholders			281,312				139,909				(50.3	)%
Adjustment for share-based compensation			12,435				12,316				(1.0	)%
Add: settlement expense reversal			(719	)			-				N.A.
Less: tax effect of adjustments			3,421				3,066				(10.4	)%
Adjusted net income attributable to Noah shareholders (non-GAAP)			289,607				149,159				(48.5	)%
Net margin attributable to Noah shareholders			22.3	%			15.9	%
Non-GAAP net margin attributable to Noah shareholders			23.0	%			16.9	%
Net income attributable to Noah shareholders per ADS, diluted			4.16				2.01				(51.7	)%
Non-GAAP net income attributable to Noah shareholders per ADS, diluted			4.28				2.14				(50.0	)%

 

 

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
		2021				2022				Change
		RMB'000				RMB'000
Net income attributable to Noah shareholders			1,314,131				976,571				(25.7	)%
Adjustment for share-based compensation			51,036				42,300				(17.1	)%
Add: settlement expense			19,908				-				N.A.
Less: tax effect of adjustments			12,374				10,279				(16.9	)%
Adjusted net income attributable to Noah shareholders (non-GAAP)			1,372,701				1,008,592				(26.5	)%
Net margin attributable to Noah shareholders			30.6	%			31.5	%
Non-GAAP net margin attributable to Noah shareholders			32.0	%			32.5	%
Net income attributable to Noah shareholders per ADS, diluted			19.45				14.28				(26.6	)%
Non-GAAP net income attributable to Noah shareholders per ADS, diluted			20.32				14.75				(27.4	)%