SHANGHAI, Aug. 21, 2014 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth
management service provider focusing on distributing wealth
management products to the high net worth population in
China, today clarifies status of
the asset management plan of Wanjia Win-Win Jingtai Fund Phase I to
Phase IV in response to certain inaccurate reports regarding
relevant topics in Chinese media.
From June 13, 2014 to June 18, 2014, Wanjia Win-Win Assets Management
Co. Ltd ("Wanjia Win-Win"), a joint venture that Gopher Asset
Management Co., Ltd. ("Gopher Assets"), the Company's consolidated
affiliate entity, holds 35% equity interest, established the asset
management plan of Wanjia Win-Win Jingtai Fund Phase I to Phase IV
(the "asset management plan") with Shenzhen Jingtai Fund Management
Co., Ltd. ("Jingtai Management"). The term of the plan is one
year. Noble Equity Investment Fund (Shanghai) Management Co. Ltd ("Noble"), a
subsidiary of the Company, is the investment advisor of the
asset management plan.
Shortly after the establishment of the plan, on June 20, 2014, Wanjia Win-Win and Noble
discovered that Jingtai Management violated the term and agreed
investment strategy of the asset management plan by using funds
under the plan for other investment projects. Wanjia Win-Win
and Noble took immediate and proactive measures, including
reporting Jingtai Management's potential fraudulent actions to the
relevant local public security bureau, and quickly controlled and
preserved funds under the plan as well as additional assets pledged
by concerned counterparties sufficient to cover repayment of
principal and returns of the asset management plan. To the
Company's knowledge, the asset management plan will repay upon
maturity or before date of maturity the expected returns and
principals to its investors according to the existing investment
contracts subject to completion of the criminal investigation and
legal proceedings relating to Jingtai Management's potential fraud.
As investment advisor, Noble, together with Wanjia Win-Win, detected mis-use of the
funds by Jingtai Management at first instance and took immediate
actions, which played a crucial role in safeguarding investors'
interests. The Company has promptly contacted each client who
has purchased this product through the Company's distribution
channels about the status and the repayment plan proposed by the
asset management plan. The Company does not currently expect that
this incident will have any material adverse effect on its business
operations or financial results.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited is a leading wealth management service
provider focusing on distributing wealth management products to the
high net worth population in China. Noah distributes wealth management
products, including primarily fixed income products, private equity
funds, private securities investment funds, insurance products and
mutual funds. Noah is also equipped with asset management services
capability, managing its own fund of funds and real estate fund
products. With over 600 relationship managers in 57 branch offices
as of June 30, 2014, Noah's total
coverage network encompasses China's most economically developed regions
where the high net worth population is concentrated. Through this
extensive coverage network, product sophistication, and client
knowledge, the Company caters to the wealth management needs of
China's high net worth population.
For more information please visit the Company's website at
http://www.noahwm.com.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the outlook for the full year 2014 and
quotations from management in this announcement, as well as Noah's
strategic and operational plans, contain forward-looking
statements. Noah may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about Noah's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause 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 market in China
and internationally; its expectations regarding demand for and
market acceptance of the products it distributes; its expectations
regarding keeping and strengthening its relationships with key
clients; relevant government policies and regulations relating to
its industry; its ability to attract and retain quality 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 industry in China and
internationally; general economic and business conditions in
China; and its ability to
effectively protect its intellectual property rights and not
infringe on the intellectual property rights of others. Further
information regarding these and other risks is included in Noah's
filings with the Securities and Exchange Commission, including its
annual report on Form 20-F. Noah does not undertake any obligation
to update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
applicable law. All information provided in this press release and
in the attachments is as of the date of this press release, and
Noah undertakes no duty to update such information, except as
required under applicable law.
Contacts:
Noah Holdings Limited
Jing
Ou-Yang, Director of IR
Tel: +86 21 3860 2388
ir@noahwm.com
SOURCE Noah Holdings Limited