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 May 2023
Commission file number: 001-34936
Noah Holdings Limited
1226 South Shenbin Road
Shanghai 201107
People’s Republic of China
+86 (21) 8035-8292
(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: May 30, 2023
Exhibit 99.1
NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED
FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2023
SHANGHAI, May 31, 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 first quarter of 2023.
FIRST QUARTER 2023 FINANCIAL HIGHLIGHTS
| · | Net revenues for the first quarter of 2023 were RMB803.5 million (US$117.0 million), a 1.0% increase from the corresponding period in 2022, primarily due to a 72.8% increase in one-time commissions, generating from more distribution of insurance products, partially offset by a 52.1% decrease in performance-based income relating to our private secondary products. Net revenues decreased by 8.9% from the fourth quarter of 2022, mainly due to decreases in one-time commissions. |
| (RMB millions, except percentages) | Q1 2022 | Q1 2023 | YoY Change | |||||||||
| Wealth management | 578.5 | 586.9 | 1.5 | % | ||||||||
| Asset management | 200.6 | 205.2 | 2.3 | % | ||||||||
| Other businesses | 16.6 | 11.4 | (31.4 | )% | ||||||||
| Total net revenues | 795.7 | 803.5 | 1.0 | % | ||||||||
| · | Income from operations for the first quarter of 2023 was RMB278.9 million (US$40.6 million), an 11.1% decrease from the corresponding period in 2022, primarily due to a 61.4% increase in selling expenses, as we launched several offshore client events in the first quarter of 2023. Income from operations increased by 26.9% from the fourth quarter of 2022, primarily due to less expenses incurred compared with fourth quarter as normally we incurred more selling and general expenses in the fourth quarter. |
| (RMB millions, except percentages) | Q1 2022 | Q1 2023 | YoY Change | |||||||||
| Wealth management | 235.4 | 204.5 | (13.1 | )% | ||||||||
| Asset management | 93.9 | 103.8 | 10.5 | % | ||||||||
| Other businesses | (15.5 | ) | (29.4 | ) | 89.7 | % | ||||||
| Total income from operations | 313.8 | 278.9 | (11.1 | )% | ||||||||
| · | Net income attributable to Noah shareholders for the first quarter of 2023 was RMB244.2 million (US$35.6 million), a 20.0% decrease from the corresponding period in 2022, mainly due to 1) an 11.1% decrease in income from operations and 2) less investment income and income from equity in affiliates. Net income attributable to Noah shareholders increased by 74.5% from the fourth quarter of 2022, primarily due to 1) a 26.9% increase in income from operations, 2) a 172.1% increase in interest income and 3) a non-recurring contingent litigation expenses in the amount of RMB99.0 million recorded in the fourth quarter of 2022. |
| · | Non-GAAP1 net income attributable to Noah shareholders for the first quarter of 2023 was RMB239.5 million (US$34.9 million), a 23.6% decrease from the corresponding period in 2022, but a 60.6% increase from the fourth 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 and net of relevant tax impact, if any. See “Reconciliation of GAAP to Non-GAAP Results” at the end of this press release.
1
FIRST QUARTER 2023 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. We primarily distribute private equity, private secondary, mutual funds and other products denominated in RMB and other currencies.
| · | Total number of registered clients as of March 31, 2023 was 440,664, a 6.2% increase from March 31, 2022, and a 0.8% increase from December 31, 2022. |
| · | Total number of active clients2 who transacted with us during the first quarter of 2023 was 11,236, a 24.9% decrease from the first quarter of 2022, and a 12.9% decrease from the fourth quarter of 2022. |
| · | Aggregate value of investment products distributed during the first quarter of 2023 was RMB16.8 billion (US$2.4 billion), a 12.0% increase from the first quarter of 2022, primarily due to a 40.3% and 6.5% increase of mutual fund products and private secondary products, respectively. The aggregate value of investment products distributed decreased by 6.7% compared with the fourth quarter of 2022, due to an 18.1% and 10.3% decrease of mutual fund products and private equity products, respectively, and partially offset by a 27.5% increase of private secondary products. |
Product type
| Three months ended March 31, | ||||||||||||||||
| 2022 | 2023 | |||||||||||||||
| (RMB in billions, except percentages) | ||||||||||||||||
| Mutual fund products | 7.1 | 47.4 | % | 10.0 | 59.4 | % | ||||||||||
| Private secondary products | 4.0 | 26.9 | % | 4.3 | 25.5 | % | ||||||||||
| Private equity products | 3.2 | 21.2 | % | 1.3 | 7.8 | % | ||||||||||
| Other products3 | 0.7 | 4.5 | % | 1.2 | 7.3 | % | ||||||||||
| All products | 15.0 | 100.0 | % | 16.8 | 100.0 | % | ||||||||||
| · | Coverage network in mainland China covered 68 cities as of March 31, 2023, compared with 83 cities as of March 31, 2022 and 75 cities as of December 31, 2022, as we continue to streamline our domestic coverages. |
| · | Number of relationship managers was 1,327 as of March 31, 2023, a 3.6% increase from March 31, 2022, and a 4.0% increase from December 31, 2022. Among which, we had 28 overseas relationship managers as of March 31, 2023, a 64.7% increase from December 31, 2022. |
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.
2
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, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies.
| · | Total assets under management as of March 31, 2023 remained relatively stable in the amount of RMB157.6 billion (US$22.9 billion), a 1.3% increase from March 31, 2022. |
| Investment type | As of December 31, 2022 | Growth | Allocation/ Redemption | As of March 31, 2023 | ||||||||||||||||||||
| (RMB billions, except percentages) | ||||||||||||||||||||||||
| Private equity | 133.1 | 84.7 | % | 0.7 | 0.5 | 133.3 | 84.6 | % | ||||||||||||||||
| Public securities4 | 11.0 | 7.0 | % | 1.8 | 1.5 | 11.3 | 7.2 | % | ||||||||||||||||
| Real estate | 6.8 | 4.3 | % | 0.1 | - | 6.9 | 4.3 | % | ||||||||||||||||
| Multi-strategies | 4.8 | 3.1 | % | - | 0.1 | 4.7 | 3.0 | % | ||||||||||||||||
| Others | 1.4 | 0.9 | % | - | - | 1.4 | 0.9 | % | ||||||||||||||||
| All Investments | 157.1 | 100.0 | % | 2.6 | 2.1 | 157.6 | 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, “For the first quarter of 2023, I am happy to see a 12.0% year-on-year increase in transaction value, driven by growth in NAV-based mutual fund product and private secondary product distributions. During the quarter, we were glad to see the gradual lift of the prolonged COVID-control measures across China followed by a full-scale reopening, and I’m confident that the Chinese economy is back on its growth mode. However, we are mindful of the global macroeconomic challenges, therefore we continue to advise our clients to adopt a “Preservation before Growth” asset allocation strategy that we advocated last year. As high net worth investors’ growing demands for wealth management services are becoming more sophisticated, I’m confident that Noah will continue to win clients’ trust by leveraging our robust wealth management and asset management capabilities with a client centric mindset.”
FIRST QUARTER 2023 FINANCIAL RESULTS
Net Revenues
Net revenues for the first quarter of 2023 were RMB803.5 million (US$117.0 million), a 1.0% increase from the corresponding period in 2022, primarily due to a 72.8% increases in one-time commissions and partially offset by decreases in performance-based income.
| · | Wealth Management Business |
| · | Net revenues from one-time commissions for the first quarter of 2023 were RMB173.5 million (US$25.3 million), an 87.4% increase from the corresponding period in 2022, primarily due to increases in insurance products distributed in first quarter of 2023. |
| · | Net revenues from recurring service fees for the first quarter of 2023 were RMB299.4 million (US$43.6 million), a 3.7% decrease from the corresponding period in 2022. |
4 The asset allocation/redemption of public securities also includes market appreciation or depreciation.
3
| · | Net revenues from performance-based income for the first quarter of 2023 were RMB55.7 million (US$8.1 million), compared with RMB156.0 million in the corresponding period of 2022, primarily due to a decrease in performance-based income from private secondary products. |
| · | Net revenues from other service fees for the first quarter of 2023 were RMB58.3 million (US$8.5 million), compared with RMB19.0 million in the corresponding period in 2022, primarily due to more value-added services we offered to our high net worth clients. |
| · | Asset Management Business |
| · | Net revenues from recurring service fees for the first quarter of 2023 were RMB175.1 million (US$25.5 million), a 1.0% increase from the corresponding period in 2022 due to increase in assets under management. |
| · | Net revenues from performance-based income for the first quarter of 2023 were RMB27.7 million (US$4.0 million), compared with RMB18.1 million in the corresponding period of 2022. The increase was primarily due to more performance-based income realized from private equity products. |
| · | Other Businesses |
| · | Net revenues for the first quarter of 2023 were RMB11.4 million (US$1.7 million), compared with RMB16.6 million from the corresponding period in 2022. |
Operating Costs and Expenses
Operating costs and expenses for the first quarter of 2023 were RMB524.6 million (US$76.4 million), an 8.9% increase from the corresponding period in 2022. Operating costs and expenses primarily consisted of compensation and benefits of RMB370.1 million (US$53.9 million), selling expenses of RMB96.7 million (US$14.1 million), general and administrative expenses of RMB45.7million (US$6.7 million), reversal of credit losses of RMB5.7 million (US$0.8 million) and other operating expenses of RMB30.8 million (US$4.5 million).
| · | Operating costs and expenses for the wealth management business for the first quarter of 2023 were RMB382.4 million (US$55.7 million), an 11.5% increase from the corresponding period in 2022, primarily due to an increase in relationship manager compensation, which is in line with increased one-time commissions. |
| · | Operating costs and expenses for the asset management business for the first quarter of 2023 were RMB101.4 million (US$14.8 million), a 4.9% decrease from the corresponding period in 2022, primarily due to less compensation and benefits. |
| · | Operating costs and expenses for other businesses for the first quarter of 2023 were RMB40.8 million (US$5.9 million), a 27.0% increase from the corresponding period in 2022, primarily due to less reversal of credit losses. |
Operating Margin
Operating margin for the first quarter of 2023 was 34.7%, compared with 39.4% for the corresponding period in 2022.
| · | Operating margin for the wealth management business for the first quarter of 2023 was 34.8%, compared with 40.7% for the corresponding period in 2022. |
| · | Operating margin for the asset management business for the first quarter of 2023 was 50.6%, compared with 46.8% for the corresponding period in 2022. |
| · | Loss from operation for the other businesses for the first quarter of 2023 was RMB29.4 million (US$4.3 million), compared with an operating loss of RMB15.5 million for the corresponding period in 2022. |
4
Investment Income
Investment loss for the first quarter of 2023 was RMB13.6 million (US$2.0 million), compared with investment income RMB25.4 million for the corresponding period in 2022.
Income Tax Expenses
Income tax expenses for the first quarter of 2023 were RMB69.6 million (US$10.1 million), a 10.0% decrease from the corresponding period in 2022. The decrease was primarily due to less taxable income.
Net Income
| · | Net Income |
| · | Net income for the first quarter of 2023 was RMB243.3 million (US$35.4 million), a 20.0% decrease from the corresponding period in 2022. |
| · | Net margin for the first quarter of 2023 was 30.3%, down from 38.2% for the corresponding period in 2022, as more selling expenses incurred this quarter. |
| · | Net income attributable to Noah shareholders for the first quarter of 2023 was RMB244.2 million (US$35.6 million), a 20.0% decrease from the corresponding period in 2022. |
| · | Net margin attributable to Noah shareholders for the first quarter of 2023 was 30.4%, down from 38.4% for the corresponding period in 2022. |
| · | Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2023 was RMB3.52 (US$0.51) and RMB3.51 (US$0.51), respectively, compared with RMB4.54 and RMB4.52 for the corresponding period in 2022, respectively. |
| · | Non-GAAP Net Income Attributable to Noah Shareholders |
| · | Non-GAAP net income attributable to Noah shareholders for the first quarter of 2023 was RMB239.5 million (US$34.9 million), a 23.6% decrease from the corresponding period in 2022, but a 60.6% increase from the fourth quarter of 2022. |
| · | Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2023 was 29.8%, down from 39.4% for the corresponding period in 2022. |
| · | Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2023 was RMB3.45 (US$0.50), down from RMB4.65 for the corresponding period in 2022. |
Balance Sheet and Cash Flow
As of March 31, 2023, the Company had RMB4,713.2 million (US$686.3 million) in cash and cash equivalents, compared with RMB4,403.9 million as of December 31, 2022 and RMB3,899.9 million as of March 31, 2022, respectively.
Net cash inflow from the Company’s operating activities during the first quarter of 2023 was RMB585.0 million (US$85.2 million), primarily due to operating cash inflow generated by net income and collection of accounts receivables.
Net cash outflow from the Company’s investing activities during the first quarter of 2023 was RMB148.7 million (US$21.6 million), primarily due to various purchase of long-term investments.
Net cash inflow from the Company’s financing activities was RMB3.4 million (US$0.5 million) in the first quarter of 2023, compared to net cash outflow of RMB12.1 million in the corresponding period in 2022.
5
CONFERENCE CALL
Senior management will host a combined English and Chinese language conference call to discuss the Company’s first quarter of 2023 unaudited 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 1Q23 Earnings Conference Call |
|
Date/Time
|
Tuesday, May 30, 2023 at 8:00 p.m., U.S. Eastern Time Wednesday, May 31, 2023 at 8:00 a.m., Hong Kong Time |
| Webinar ID: | 917-0088-0901 |
| Meeting Passcode: | 173954 |
| Dial in details | |
| - New York: | +1 929 205 6099 |
| - London: | +44 330 088 5830 |
| - Singapore: | +65 3165 1065 |
A replay will be available on the same day of the conference call until June 7, 2023 at the Company's investor relations website under the “Announcements & Events” section at http://ir.noahgroup.com.
A live and archived webcast of the conference call will be available at the Company’s investor relations website under the “Financial Reports” 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 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.
6
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. In the first quarter of 2023, Noah distributed RMB16.8 billion (US$2.4 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB157.6 billion (US$22.9 billion) as of March 31, 2023.
Noah’s wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,327 relationship managers across 68 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong (China), Taiwan (China), New York, Silicon Valley and Singapore. The Company’s wealth management business had 440,664 registered clients as of March 31, 2023. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in Renminbi and other currencies. Noah also provides other businesses.
For more information, please visit Noah at ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the first quarter of 2023 ended March 31, 2023 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ 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 RMB6.8676 to US$1.00, the effective noon buying rate for March 31, 2023 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. 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: +86-21-8035-9221
ir@noahgroup.com
____________________________________
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
8
Noah Holdings Limited
Condensed Consolidated Balance Sheets
(unaudited)
| As of | ||||||||||||
| December 31, | March 31, | March 31, | ||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 4,403,915 | 4,713,215 | 686,297 | |||||||||
| Restricted cash | 23,203 | 136,074 | 19,814 | |||||||||
| Short-term investments | 315,979 | 316,178 | 46,039 | |||||||||
| Accounts receivable, net | 498,106 | 363,890 | 52,986 | |||||||||
| Loans receivable, net | 465,780 | 381,449 | 55,543 | |||||||||
| Amounts due from related parties | 443,424 | 499,220 | 72,692 | |||||||||
| Other current assets | 166,739 | 199,429 | 29,042 | |||||||||
| Total current assets | 6,317,146 | 6,609,455 | 962,413 | |||||||||
| Long-term investments, net | 774,095 | 851,649 | 124,009 | |||||||||
| Investment in affiliates | 1,491,820 | 1,474,736 | 214,738 | |||||||||
| Property and equipment, net | 2,486,317 | 2,487,886 | 362,264 | |||||||||
| Operating lease right-of-use assets, net | 168,192 | 175,992 | 25,626 | |||||||||
| Deferred tax assets | 436,441 | 436,446 | 63,551 | |||||||||
| Other non-current assets | 124,124 | 145,022 | 21,117 | |||||||||
| Total Assets | 11,798,135 | 12,181,186 | 1,773,718 | |||||||||
| Liabilities and Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accrued payroll and welfare expenses | 668,953 | 740,811 | 107,870 | |||||||||
| Income tax payable | 126,848 | 153,799 | 22,395 | |||||||||
| Deferred revenues | 67,967 | 79,235 | 11,538 | |||||||||
| Other current liabilities | 473,175 | 546,497 | 79,576 | |||||||||
| Contingent liabilities | 568,018 | 566,005 | 82,417 | |||||||||
| Total current liabilities | 1,904,961 | 2,086,347 | 303,796 | |||||||||
| Operating lease liabilities, non-current | 83,171 | 94,178 | 13,713 | |||||||||
| Deferred tax liabilities | 249,768 | 228,271 | 33,239 | |||||||||
| Other non-current liabilities | 59,760 | 51,184 | 7,453 | |||||||||
| Total Liabilities | 2,297,660 | 2,459,980 | 358,201 | |||||||||
| Equity | 9,500,475 | 9,721,206 | 1,415,517 | |||||||||
| Total Liabilities and Equity | 11,798,135 | 12,181,186 | 1,773,718 | |||||||||
9
Noah Holdings Limited
Condensed Consolidated Income Statements
(In RMB'000, except for ADS data, per ADS data and percentages)
(unaudited)
| Three months ended | ||||||||||||||||
| March 31, | March 31, | March 31, | ||||||||||||||
| 2022 | 2023 | 2023 | Change | |||||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||||||
| Revenues: | ||||||||||||||||
| Revenues from others: | ||||||||||||||||
| One-time commissions | 81,154 | 170,571 | 24,837 | 110.2 | % | |||||||||||
| Recurring service fees | 193,379 | 192,708 | 28,060 | (0.3 | )% | |||||||||||
| Performance-based income | 142,911 | 3,430 | 499 | (97.6 | )% | |||||||||||
| Other service fees | 38,760 | 72,866 | 10,610 | 88.0 | % | |||||||||||
| Total revenues from others | 456,204 | 439,575 | 64,006 | (3.6 | )% | |||||||||||
| Revenues from funds Gopher manages: | ||||||||||||||||
| One-time commissions | 21,155 | 5,896 | 859 | (72.1 | )% | |||||||||||
| Recurring service fees | 293,052 | 283,472 | 41,277 | (3.3 | )% | |||||||||||
| Performance-based income | 32,067 | 80,325 | 11,696 | 150.5 | % | |||||||||||
| Total revenues from funds Gopher manages | 346,274 | 369,693 | 53,832 | 6.8 | % | |||||||||||
| Total revenues | 802,478 | 809,268 | 117,838 | 0.8 | % | |||||||||||
| Less: VAT related surcharges | (6,786 | ) | (5,795 | ) | (844 | ) | (14.6 | )% | ||||||||
| Net revenues | 795,692 | 803,473 | 116,994 | 1.0 | % | |||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship manager compensation | (109,995 | ) | (148,735 | ) | (21,657 | ) | 35.2 | % | ||||||||
| Others | (247,910 | ) | (221,371 | ) | (32,234 | ) | (10.7 | )% | ||||||||
| Total compensation and benefits | (357,905 | ) | (370,106 | ) | (53,891 | ) | 3.4 | % | ||||||||
| Selling expenses | (59,906 | ) | (96,669 | ) | (14,076 | ) | 61.4 | % | ||||||||
| General and administrative expenses | (58,207 | ) | (45,700 | ) | (6,654 | ) | (21.5 | )% | ||||||||
| Reversal of credit losses | 9,198 | 5,698 | 830 | (38.1 | )% | |||||||||||
| Other operating expenses | (29,635 | ) | (30,797 | ) | (4,484 | ) | 3.9 | % | ||||||||
| Government subsidies | 14,558 | 12,984 | 1,891 | (10.8 | )% | |||||||||||
| Total operating costs and expenses | (481,897 | ) | (524,590 | ) | (76,384 | ) | 8.9 | % | ||||||||
| Income from operations | 313,795 | 278,883 | 40,610 | (11.1 | )% | |||||||||||
| Other income: | ||||||||||||||||
| Interest income | 12,637 | 34,388 | 5,007 | 172.1 | % | |||||||||||
| Investment income (loss) | 25,373 | (13,583 | ) | (1,978 | ) | N.A. | ||||||||||
| Other (expense) income | (278 | ) | 9,558 | 1,392 | N.A. | |||||||||||
| Total other income | 37,732 | 30,363 | 4,421 | (19.5 | )% | |||||||||||
| Income before taxes and income from equity in affiliates | 351,527 | 309,246 | 45,031 | (12.0 | )% | |||||||||||
| Income tax expense | (77,336 | ) | (69,580 | ) | (10,132 | ) | (10.0 | )% | ||||||||
| Income from equity in affiliates | 30,020 | 3,669 | 534 | (87.8 | )% | |||||||||||
| Net income | 304,211 | 243,335 | 35,433 | (20.0 | )% | |||||||||||
| Less: net loss attributable to non-controlling interests | (1,031 | ) | (875 | ) | (127 | ) | (15.1 | )% | ||||||||
| Net income attributable to Noah shareholders | 305,242 | 244,210 | 35,560 | (20.0 | )% | |||||||||||
| Income per ADS, basic | 4.54 | 3.52 | 0.51 | (22.5 | )% | |||||||||||
| Income per ADS, diluted | 4.52 | 3.51 | 0.51 | (22.3 | )% | |||||||||||
| Margin analysis: | ||||||||||||||||
| Operating margin | 39.4 | % | 34.7 | % | 34.7 | % | ||||||||||
| Net margin | 38.2 | % | 30.3 | % | 30.3 | % | ||||||||||
| Weighted average ADS equivalent[1]: | ||||||||||||||||
| Basic | 67,235,270 | 69,466,932 | 69,466,932 | |||||||||||||
| Diluted | 67,480,826 | 69,517,068 | 69,517,068 | |||||||||||||
| ADS equivalent outstanding at end of period | 60,173,494 | 62,606,724 | 62,606,724 | |||||||||||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs.
10
Noah Holdings Limited
Condensed Comprehensive Income Statements
(unaudited)
| Three months ended | ||||||||||||||||
| March 31, 2022 | March 31, 2023 | March 31, 2023 | Change | |||||||||||||
| RMB'000 | RMB'000 | USD'000 | ||||||||||||||
| Net income | 304,211 | 243,335 | 35,433 | (20.0 | )% | |||||||||||
| Other comprehensive income, net of tax: | ||||||||||||||||
| Foreign currency translation adjustments | (9,148 | ) | (16,834 | ) | (2,451 | ) | 84.0 | % | ||||||||
| Comprehensive income | 295,063 | 226,501 | 32,982 | (23.2 | )% | |||||||||||
| Less: Comprehensive loss attributable to non-controlling interests | (882 | ) | (926 | ) | (135 | ) | 5.0 | % | ||||||||
| Comprehensive income attributable to Noah shareholders | 295,945 | 227,427 | 33,117 | (23.2 | )% | |||||||||||
11
Noah Holdings Limited
Supplemental Information
(unaudited)
| As of | ||||||||||||
| March 31, 2022 | March 31, 2023 | Change | ||||||||||
| Number of registered clients | 415,082 | 440,664 | 6.2 | % | ||||||||
| Number of relationship managers | 1,281 | 1,327 | 3.6 | % | ||||||||
| Number of cities under coverage in mainland China | 83 | 68 | (18.1 | )% | ||||||||
| Three months ended | ||||||||||||
| March 31, 2022 | March 31, 2023 | Change | ||||||||||
| (in millions of RMB, except number of active clients and percentages) | ||||||||||||
| Number of active clients | 14,970 | 11,236 | (24.9 | )% | ||||||||
| Transaction value: | ||||||||||||
| Private equity products | 3,180 | 1,302 | (59.1 | )% | ||||||||
| Private secondary products | 4,027 | 4,288 | 6.5 | % | ||||||||
| Mutual fund products | 7,110 | 9,975 | 40.3 | % | ||||||||
| Other products | 679 | 1,233 | 81.7 | % | ||||||||
| Total transaction value | 14,996 | 16,798 | 12.0 | % | ||||||||
12
Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
| Three months ended March 31, 2023 | ||||||||||||||||
| Wealth Management Business | Asset Management Business | Other Businesses | Total | |||||||||||||
| RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||||||||||||
| Revenues: | ||||||||||||||||
| Revenues from others: | ||||||||||||||||
| One-time commissions | 170,571 | - | - | 170,571 | ||||||||||||
| Recurring service fees | 192,708 | - | - | 192,708 | ||||||||||||
| Performance-based income | 3,430 | - | - | 3,430 | ||||||||||||
| Other service fees | 58,480 | - | 14,386 | 72,866 | ||||||||||||
| Total revenues from others | 425,189 | - | 14,386 | 439,575 | ||||||||||||
| Revenues from funds Gopher manages: | ||||||||||||||||
| One-time commissions | 3,462 | 2,434 | - | 5,896 | ||||||||||||
| Recurring service fees | 107,545 | 175,927 | - | 283,472 | ||||||||||||
| Performance-based income | 52,457 | 27,868 | - | 80,325 | ||||||||||||
| Total revenues from funds Gopher manages | 163,464 | 206,229 | - | 369,693 | ||||||||||||
| Total revenues | 588,653 | 206,229 | 14,386 | 809,268 | ||||||||||||
| Less: VAT related surcharges | (1,758 | ) | (1,023 | ) | (3,014 | ) | (5,795 | ) | ||||||||
| Net revenues | 586,895 | 205,206 | 11,372 | 803,473 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship manager compensation | (143,116 | ) | (5,619 | ) | - | (148,735 | ) | |||||||||
| Other compensations | (139,903 | ) | (71,535 | ) | (9,933 | ) | (221,371 | ) | ||||||||
| Total compensation and benefits | (283,019 | ) | (77,154 | ) | (9,933 | ) | (370,106 | ) | ||||||||
| Selling expenses | (71,999 | ) | (21,291 | ) | (3,379 | ) | (96,669 | ) | ||||||||
| General and administrative expenses | (28,789 | ) | (11,371 | ) | (5,540 | ) | (45,700 | ) | ||||||||
| Reversal of credit losses | 3,175 | 834 | 1,689 | 5,698 | ||||||||||||
| Other operating expenses | (6,938 | ) | (258 | ) | (23,601 | ) | (30,797 | ) | ||||||||
| Government subsidies | 5,168 | 7,812 | 4 | 12,984 | ||||||||||||
| Total operating costs and expenses | (382,402 | ) | (101,428 | ) | (40,760 | ) | (524,590 | ) | ||||||||
| Income (loss) from operations | 204,493 | 103,778 | (29,388 | ) | 278,883 | |||||||||||
13
Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
| Three months ended March 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 | 81,154 | - | - | 81,154 | ||||||||||||
| Recurring service fees | 193,379 | - | - | 193,379 | ||||||||||||
| Performance-based income | 142,911 | - | - | 142,911 | ||||||||||||
| Other service fees | 19,113 | - | 19,647 | 38,760 | ||||||||||||
| Total revenues from others | 436,557 | - | 19,647 | 456,204 | ||||||||||||
| Revenues from funds Gopher manages: | ||||||||||||||||
| One-time commissions | 11,859 | 9,296 | - | 21,155 | ||||||||||||
| Recurring service fees | 118,871 | 174,181 | - | 293,052 | ||||||||||||
| Performance-based income | 13,868 | 18,199 | - | 32,067 | ||||||||||||
| Total revenues from funds Gopher manages | 144,598 | 201,676 | - | 346,274 | ||||||||||||
| Total revenues | 581,155 | 201,676 | 19,647 | 802,478 | ||||||||||||
| Less: VAT related surcharges | (2,711 | ) | (1,039 | ) | (3,036 | ) | (6,786 | ) | ||||||||
| Net revenues | 578,444 | 200,637 | 16,611 | 795,692 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Compensation and benefits | ||||||||||||||||
| Relationship manager compensation | (99,688 | ) | (10,307 | ) | - | (109,995 | ) | |||||||||
| Other compensations | (148,135 | ) | (89,517 | ) | (10,258 | ) | (247,910 | ) | ||||||||
| Total compensation and benefits | (247,823 | ) | (99,824 | ) | (10,258 | ) | (357,905 | ) | ||||||||
| Selling expenses | (52,043 | ) | (4,234 | ) | (3,629 | ) | (59,906 | ) | ||||||||
| General and administrative expenses | (42,754 | ) | (10,029 | ) | (5,424 | ) | (58,207 | ) | ||||||||
| (Provision for) reversal of credit losses | (603 | ) | (227 | ) | 10,028 | 9,198 | ||||||||||
| Other operating expenses | (5,516 | ) | (1,270 | ) | (22,849 | ) | (29,635 | ) | ||||||||
| Government subsidies | 5,639 | 8,885 | 34 | 14,558 | ||||||||||||
| Total operating costs and expenses | (343,100 | ) | (106,699 | ) | (32,098 | ) | (481,897 | ) | ||||||||
| Income (loss) from operations | 235,344 | 93,938 | (15,487 | ) | 313,795 | |||||||||||
14
Noah Holdings Limited
Supplement Revenue Information for Segment
(unaudited)
| Three months ended March 31, 2023 | ||||||||||||||||
| Wealth Management Business | Asset Management Business | Other Businesses | Total | |||||||||||||
| RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||||||||||||
| Revenues: | ||||||||||||||||
| Mainland China | 350,632 | 122,891 | 14,386 | 487,909 | ||||||||||||
| Hong Kong | 183,064 | 61,469 | - | 244,533 | ||||||||||||
| Others | 54,957 | 21,869 | - | 76,826 | ||||||||||||
| Total revenues | 588,653 | 206,229 | 14,386 | 809,268 | ||||||||||||
| Three months ended March 31, 2022 | ||||||||||||||||
| Wealth Management Business | Asset Management Business | Other Businesses | Total | |||||||||||||
| RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||||||||||||
| Revenues: | ||||||||||||||||
| Mainland China | 425,237 | 166,774 | 19,647 | 611,658 | ||||||||||||
| Hong Kong | 90,431 | 11,991 | - | 102,422 | ||||||||||||
| Others | 65,487 | 22,911 | - | 88,398 | ||||||||||||
| Total revenues | 581,155 | 201,676 | 19,647 | 802,478 | ||||||||||||
15
Noah Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In RMB, except for per ADS data and percentages)
(unaudited) 5
| Three months ended | ||||||||||||
| March 31, | March 31, | |||||||||||
| 2022 | 2023 | Change | ||||||||||
| RMB'000 | RMB'000 | |||||||||||
| Net income attributable to Noah shareholders | 305,242 | 244,210 | (20.0 | )% | ||||||||
| Adjustment for share-based compensation | 10,846 | (6,189 | ) | N.A. | ||||||||
| Less: Tax effect of adjustments | 2,607 | (1,499 | ) | N.A. | ||||||||
| Adjusted net income attributable to Noah shareholders (non-GAAP) | 313,481 | 239,520 | (23.6 | )% | ||||||||
| Net margin attributable to Noah shareholders | 38.4 | % | 30.4 | % | ||||||||
| Non-GAAP net margin attributable to Noah shareholders | 39.4 | % | 29.8 | % | ||||||||
| Net income attributable to Noah shareholders per ADS, diluted | 4.52 | 3.51 | (22.3 | )% | ||||||||
5 Noah’s Non-GAAP financial measures reflect the respective most directly comparable GAAP financial measures excluding the effects of all forms of share-based compensation and net of relevant tax impact, if any.
16