SHANGHAI, March 16, 2015 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth
management service provider with a focus on global wealth
investment and asset allocation services for high net worth
individuals and enterprises in China, today announced its unaudited financial
results for the fourth quarter of 2014 and the full year ended
December 31, 2014.
During the past two years, the Company has gradually
transitioned from a wealth management consulting services provider
to an integrated financial group with capabilities in wealth
management, asset management and internet finance. In addition, in
order to better reflect such transition, the Company has adjusted
its internal organizational and corporate structures in the fourth
quarter of 2014. In line with current business operations and
corporate strategy, starting from the fourth quarter of 2014, the
Company will present breakdowns of its financial results into three
business segments: wealth management, asset management and internet
finance. Financial results for the corresponding periods in 2013
are also broken down according to the three business segments, in
order to provide clearer comparison against the 2014
numbers.
FOURTH QUARTER 2014 FINANCIAL HIGHLIGHTS
- Net revenues in the fourth quarter of 2014 were
US$63.3 million, a 39.2% increase
from the corresponding period in 2013.
(US$
million)
|
Q4
2013
|
|
Q4 2013
Segment %
|
|
Q4
2014
|
|
Q4 2014
Segment %
|
|
YoY
Change
|
Wealth
management
|
37.1
|
|
81.7%
|
|
50.6
|
|
80.0%
|
|
36.3%
|
Asset
management
|
8.3
|
|
18.3%
|
|
11.4
|
|
18.1%
|
|
37.7%
|
Internet
finance
|
-
|
|
-
|
|
1.2
|
|
1.9%
|
|
-
|
Total net
revenues
|
45.4
|
|
100.0%
|
|
63.3
|
|
100.0%
|
|
39.2%
|
Income from operations in the fourth quarter of 2014 was
US$17.8 million, a 34.2% increase
from the corresponding period in 2013.
(US$
million)
|
Q4
2013
|
|
Q4 2013
Segment %
|
|
Q4 2014
|
|
Q4 2014
Segment %
|
|
YoY
Change
|
Wealth
management
|
10.3
|
|
77.4%
|
|
20.5
|
|
115.2%
|
|
97.9%
|
Asset
management
|
3.0
|
|
22.6%
|
|
2.0
|
|
11.2%
|
|
(31.1%)
|
Internet
finance
|
-
|
|
-
|
|
(4.7)
|
|
(26.4%)
|
|
-
|
Total income from
operations
|
13.3
|
|
100.0%
|
|
17.8
|
|
100.0%
|
|
34.2%
|
- Net income attributable to Noah shareholders in the
fourth quarter of 2014 was US$14.8
million, a 10.2% increase from the corresponding period in
2013. Non-GAAP[1] net income attributable to Noah
shareholders in the fourth quarter of 2014 was US$15.5 million, a 6.5% increase from the
corresponding period in 2013.
FULL YEAR 2014 FINANCIAL HIGHLIGHTS
- Net revenues in the full year 2014 were US$247.9 million, a 51.3% increase from
2013.
(US$
million)
|
FY
2013
|
|
FY 2013
Segment %
|
|
FY
2014
|
|
FY 2014
Segment %
|
|
YoY
Change
|
Wealth
management
|
141.0
|
|
86.0%
|
|
185.8
|
|
75.0%
|
|
31.8%
|
Asset
management
|
22.8
|
|
14.0%
|
|
59.3
|
|
23.9%
|
|
160.2%
|
Internet
finance
|
-
|
|
-
|
|
2.7
|
|
1.1%
|
|
-
|
Total net
revenues
|
163.8
|
|
100.0%
|
|
247.9
|
|
100.0%
|
|
51.3%
|
- Income from operations in the full year 2014 was
US$89.7 million, a 48.1% increase
from 2013.
(US$
million)
|
FY
2013
|
|
FY 2013
Segment %
|
|
FY
2014
|
|
FY 2014
Segment %
|
|
YoY
Change
|
Wealth
management
|
51.7
|
|
85.3%
|
|
72.2
|
|
80.5%
|
|
39.6%
|
Asset
management
|
8.9
|
|
14.7%
|
|
27.7
|
|
30.9%
|
|
211.8%
|
Internet
finance
|
-
|
|
-
|
|
(10.2)
|
|
(11.4%)
|
|
-
|
Total income from
operations
|
60.6
|
|
100.0%
|
|
89.7
|
|
100.0%
|
|
48.1%
|
- Net income attributable to Noah shareholders in the full
year 2014 was US$72.4 million, a
40.8% increase from 2013. Non-GAAP net income attributable to
Noah shareholders in the full year 2014 was US$77.7 million, a 37.1% increase from 2013.
FOURTH QUARTER 2014 AND FULL YEAR 2014 OPERATIONAL
UPDATES
Wealth Management Business
Through its wealth management business, the Company provides
global wealth investment and asset allocation services to high net
worth individuals and enterprises in China.
- Total number of registered clients as of December 31, 2014 increased by 31.9%
year-over-year to 70,557; this figure includes 67,724 registered
individual clients, 2,714 registered enterprise clients and 119
wholesale clients that have entered into cooperation agreements
with the Company.
- Total number of active clients[2] during the fourth
quarter of 2014 was 3,529, a 20.6% increase from the corresponding
period in 2013. The aggregate value of wealth management
products distributed by the Company during the fourth quarter
of 2014 was US$1.9 billion
(approximately RMB11.8 billion)[3], a
4.0% increase from the corresponding period in 2013. Of this
aggregate value, fixed income products accounted for 63.2%, private
equity fund products accounted for 19.2%, and other products,
including mutual fund products, private securities investment
funds, equity linked products and insurance products, accounted for
17.6%. The average transaction value per client[4] in the
fourth quarter of 2014 was US$0.5
million (approximately RMB3.4
million), a 13.8% decrease from the corresponding period in
2013 due to a change of product mix.
- Total number of active clients for the full year 2014
was 9,010, a 39.8% increase from 2013. The aggregate value of
wealth management products distributed by the Company in the
full year 2014 was US$10.3 billion
(approximately RMB63.4 billion), a
42.4% increase from 2013. Of this aggregate value, fixed income
products accounted for 63.5%, private equity fund products
accounted for 18.9%, and other products, including mutual fund
products, private securities investment funds, equity linked
products and insurance products, accounted for 17.6%. The
average transaction value per client for the wealth management
business for the full year 2014 was US$1.1
million (approximately RMB7.0
million), a 2.0% increase from 2013.
- Coverage network as of December
31, 2014 included 94 branches and sub-branches covering 63
cities, up from 91 branches and sub-branch offices covering 60
cities as of September 30, 2014.
The number of relationship managers was 779 as of
December 31, 2014, up from 569 as of
December 31, 2013 and 775 as of
September 30, 2014.
Asset Management Business
The Company's asset management business focuses on managing and
developing financial products, mainly including fund of funds in
private equity, real estate, hedge funds, credit products and
family office business denominated in both Renminbi and U.S.
dollars.
- Total assets under management as of December 31, 2014 were US$8.1 billion (approximately RMB49.7 billion), a 62% increase from the end of
2013. Of this aggregate value, real estate funds and real estate
fund of funds accounted for 62% compared to 77% as of the end of
2013, private equity fund of funds accounted for 21% compared to
13% as of the end of 2013, and secondary market equity fund of
funds and other fixed income fund of funds accounted for 17%
compared to 10% as of the end of 2013.
Internet Finance Business
Through its internet finance business, the Company provides
financial product and services to white-collar professionals in
China through a self-developed
internet financial platform.
- The aggregate value of wealth management products
distributed by the Company through its internet platform for
the full year 2014 was US$227.7
million (approximately RMB1.4
billion). Total number of enterprise clients as of
December 31, 2014 was 205.
"We are pleased to deliver robust growth in the fourth quarter
and exceed our guidance with non-GAAP net income of US$77.7 million for the full year," said Ms.
Jingbo Wang, Co-founder, Chairwoman
of the Board of Directors and Chief Executive Officer. "In 2014, we
continued to diversify our offerings in three core business lines
and across asset classes. We also remained committed to developing
proprietary products and services to meet our clients' evolving
needs as we expanded into overseas asset management and internet
finance. With our leading network of relationship managers,
diversified product portfolio, and loyal and rapidly growing client
base, we are confident that Noah is well-positioned to benefit from
the huge potential of the wealth and asset management sectors in
China," Ms. Wang added.
Mr. Kenny Lam, President of Noah,
said, "Looking to 2015, with the continued strength from our
established wealth management and asset management businesses as
well as rapid growth from our internet finance business, we are
establishing a world class platform to provide our clients with
integrated financial products and services. We believe our
strategic focus on enhancing our operational efficiency and
capabilities, developing new growth drivers and strengthening our
talent pool and brand positioning will support our sustainable
development over the long term."
FOURTH QUARTER 2014 FINANCIAL RESULTS
Net Revenues
Net revenues for the fourth quarter of 2014 were
US$63.3 million, a 39.2% increase
from the corresponding period in 2013, due to increases in both
one-time commission revenues and recurring service fees for the
fourth quarter of 2014.
- For the wealth management business, net revenues from
one-time commissions for the fourth quarter of 2014 were
US$26.3 million, a 45.9% increase
from the corresponding period in 2013, primarily due to an increase
in transaction value and average commission rate. Net revenues
from recurring service fees for the fourth quarter of 2014 were
US$22.4 million, a 28.5% increase
from the corresponding period in 2013, mainly due to the cumulative
effect of private equity funds previously distributed by the
Company.
- For the asset management business, net revenues from
one-time commissions for the fourth quarter of 2014 were nil
compare to US$0.6 million in the
corresponding period in 2013. Net revenues from recurring
service fees for the fourth quarter of 2014 were US$11.0 million, a 38.1% increase from the
corresponding period in 2013, mainly due to the increase in assets
under management by the Company since the second half of 2012.
Net revenues from other service fees for the fourth quarter
of 2014 were US$0.5 million, which
mainly include performance-based income. We received and recognized
performance-based income for the first time in 2014.
- Net revenues from the internet finance business for the
fourth quarter of 2014 were US$1.2
million, presented as other service fees.
Operating cost and expenses
Operating cost and expenses for the fourth quarter of
2014, including compensation and benefits, selling expenses,
G&A expenses, other operating expenses and government
subsidies, were US$45.4 million, a
41.3% increase from the corresponding period in 2013.
- Operating cost and expenses of the wealth management
business for the fourth quarter of 2014 were US$30.2 million, a 12.5% increase from the
corresponding period in 2013. As part of the new segmentation,
compensation and benefits are reclassified from each line items of
operating cost and expenses to be presented as a separate line
item. Comparable data of prior periods have also been adjusted
accordingly. For the wealth management business:
- Compensation and benefits, which mainly include
compensation of relationship managers and back-office employees,
were US$23.7 million, a 45.5%
increase from the corresponding period in 2013. In the fourth
quarter of 2014, relationship manager compensation increased by
49.3% year-over-year, which is in line with the net increase in
one-time commission income compared with the same period in the
prior year. The increase in other compensation was mainly due to
the expansion of the Company's back-office departments.
- Selling expenses for the fourth quarter of 2014 were
US$7.8 million, a 47.4% increase from
the corresponding period in 2013, primarily due to increased
expenses in general marketing activities and professional
consulting fees.
- G&A expenses for the fourth quarter of 2014 were
US$4.5 million, an 11.5% decrease
from the corresponding period in 2013, resulting from decreases in
consulting fees related to the wealth management business.
- Other operating expenses mainly included costs incurred
directly in relation to our revenues. Other operating expenses for
the fourth quarter of 2014 were US$1.4
million, representing an increase of US$1.3 million year-over-year. The increase was
mainly due to the expansion of our other businesses including
insurance and education, as well as the increase in bank charges in
connection with the increased transaction volume through our mutual
fund distribution channel.
- Government subsidies represent cash subsidies received
in the PRC from local governments for general corporate purposes.
Government subsidies for the fourth quarter of 2014 were
US$7.2 million, a significant
increase from the corresponding period in 2013.
- Operating cost and expenses of the asset management
business for the fourth quarter of 2014 were US$9.4 million, a 75.6% increase from the
corresponding period in 2013. For the asset management
business:
- Compensation and benefits mainly include compensation of
fund managers and back-office employees. Compensation and benefits
for the fourth quarter of 2014 were US$4.9
million, a 66.7% increase from the corresponding period in
2013, in line with the increase in headcount to manage an increased
volume of funds.
- Selling expenses for the fourth quarter of 2014 were
US$0.5 million, US$0.3 million less compared with the
corresponding period in 2013.
- G&A expenses for the fourth quarter of 2014 were
US$4.6 million, a 177.0% increase
from the corresponding period in 2013, mainly driven by increased
consultant expenses incurred in relation to the corporate strategy
of segmentation and costs associated with the newly rented office
building for our asset management business.
- Operating cost and expenses of the internet finance
business for the fourth quarter of 2014 were US$5.9 million, which mainly included
compensation and benefits of US$3.9
million, selling expenses of US$0.3
million, G&A expenses of US$1.2
million and other operating expenses of US$0.4 million. These represent our expenses in
human resources, marketing, internet infrastructures and other
expenses incurred in promoting our internet finance business.
Operating Margin
Operating margin for the fourth quarter of 2014 was
28.2%, as compared to 29.2% for the corresponding period in
2013.
- Operating margin of the wealth management business for
the fourth quarter of 2014 was 40.4%, compared to 27.8% for the
corresponding period in 2013. The increase was mainly due to higher
level of government subsidies the Company received in the fourth
quarter of 2014 compared with the corresponding period in
2013.
- Operating margin of the asset management business
for the fourth quarter of 2014 was 17.8%, compared to 35.5% for the
corresponding period in 2013. The decrease in operating margin
year-over-year for the fourth quarter of 2014 was mainly
attributable to increased consultant expenses incurred in relation
to the corporate strategy of segmentation and the costs associated
with the newly rented office building for our asset management
business.
- Operating loss of the internet finance business
for the fourth quarter of 2014 was US$4.5
million. The Company began to operate its internet finance
business in the second quarter of 2014.
Income Tax Expenses
Income tax expenses for the fourth quarter of 2014 were
US$5.4 million, a 169.8% increase
from the corresponding period in 2013. The year-over-year increase
for the fourth quarter of 2014 was primarily attributable to the
lower income tax expenses in the fourth quarter of 2013 due to the
utilization of net operating loss carried over from prior
years.
Net Income
Net income attributable to Noah shareholders for the
fourth quarter of 2014 was US$14.8
million, a 10.2% increase from the corresponding period in
2013. Net margin for the fourth quarter of 2014 was 23.6%,
as compared to 30.7% for the corresponding period in 2013. Net
income per basic and diluted ADS for the fourth quarter of 2014
were both US$0.26, as compared to
US$0.24 for the corresponding period
in 2013.
Non-GAAP net income attributable to Noah shareholders for
the fourth quarter of 2014 was US$15.5
million, a 6.5% increase from the corresponding period in
2013. Non-GAAP net margin for the fourth quarter of 2014 was
24.5%, as compared to 32.0% for the corresponding period in 2013.
Non-GAAP net income per diluted ADS for the fourth quarter
of 2014 was US$0.27, as compared to
US$0.26 for the corresponding period
in 2013.
FULL YEAR 2014 FINANCIAL RESULTS
Net Revenues
Net revenues for the full year 2014 were US$247.9 million, a 51.3% increase from 2013, due
to increases in both one-time commission revenues and recurring
service fees for the full year 2014.
- For the wealth management business, net revenues from
one-time commissions for the full year 2014 were US$92.8 million, a 25.4% increase from 2013,
primarily due to an increase in transaction value and average
commission rate. Net revenues from recurring service fees
for the full year 2014 were US$89.7
million, a 44.0% increase from 2013, mainly due to
the cumulative effect of private equity funds previously
distributed by the Company.
- For the asset management business, net revenues from
one-time commissions for the full year 2014 were nil compare to
US$0.6 million in 2013. Net
revenues from recurring service fees for the full year 2014
were US$45.3 million, a 112.7%
increase from 2013. The year-over-year increase for the full year
2014 was mainly due to the increase in assets under management by
the Company since the second half of 2012. Net revenues from
other service fees for the full year 2014 were US$14.0 million, which mainly include
performance-based income. We received and recognized
performance-based income for the first time in 2014.
- Net revenues from the internet finance business for the
full year 2014 were US$2.7 million
compared with nil in 2013, as the Company launched its internet
finance business in the second quarter of 2014.
Operating cost and expenses for the full year 2014 were
US$158.2 million, a 53.3% increase
from 2013.
- Operating cost and expenses of the wealth management
business for the full year 2014 were US$113.7 million, a 27.3% increase from 2013.
For the wealth management business:
- Compensation and benefits in the full year 2014 were
US$86.7 million, including
compensation of relationship managers of US$51.8 million and compensation of back-office
employees of US$34.9 million. Total
compensation and benefits increased by 34.5% year-over-year, which
is in line with the increase in revenues from the wealth management
business.
- Selling expenses for the full year 2014 were
US$22.0 million, a 45.2% increase
from 2013, primarily due to increased expenses in general marketing
activities, rental expenses and client related service fees.
- G&A expenses for the full year 2014 were
US$12.1million, a 13.7% decrease from
the corresponding period in 2013, resulting from decreases in
consulting fees related to the wealth management business.
- Other operating expenses for the full year 2014 were
US$3.8 million, representing an
increase of US$3.1 million
year-over-year. The significant increase was mainly due to the
expansion of our other businesses, including insurance and
education, as well as the increase in bank charges in connection
with the increased transaction volume through our mutual fund
distribution channel.
- Government subsidies for the full year 2014 were
US$10.9 million, a 119.0% increase
from 2013, due to the subsidies received from certain local
governments in the PRC in relation to the increased amount of
investments the Company made and taxable income it generated in
certain local districts.
- Operating cost and expenses of the asset management
business for the full year 2014 were US$31.6 million, a 127.4% increase from 2013.
For the asset management business:
- Compensation and benefits for the full year 2014 were
US$23.9 million, a 177.3% increase
from the corresponding period in 2013, driven by the increased
volume of funds under management.
- Selling expenses for the full year 2014 were
US$1.6 million, a 2.7% increase from
2013.
- G&A expenses for the full year 2014 were
US$9.8 million, a 140.9% increase
from 2013, mainly driven by increased expenses incurred to build
back-office departments, consultant expenses incurred related the
corporate strategy of segmentation and costs of the newly rented
office building for our asset management business.
- Operating cost and expenses of the internet finance
business for the full year 2014 were US$12.9 million, which mainly include
compensation and benefits of US$9.1
million, selling expenses of US$0.4
million, G&A expenses of US$2.7
million and other operating expenses of US$0.8 million.
Operating Margin
Operating margin for the full year 2014 was 36.2%, as
compared to 37.0% for 2013. The year-over-year decreases for the
fourth quarter of 2014 and the full year 2014 were mainly
attributable to our continuing investment in our internet finance
business.
- Operating margin of the wealth management business for
the full year 2014 was 38.8%, as compared to 36.7% for 2013.
- Operating margin of the asset management business for
the full year 2014 was 46.7%, as compared to 38.9% for 2013.
- Operating loss of the internet finance business
for the full year 2014 was US$10.2
million.
Income Tax Expenses
Income tax expenses for the full year 2014 were
US$24.5 million, a 50.8% increase
from US$16.3 million in 2013,
primarily due to an increase in taxable income.
Net Income
Net income attributable to Noah shareholders for the year
2014 was US$72.4 million, a 40.8%
increase from 2013. Net margin for the year 2014 was 30.3%,
as compared to 32.4% for 2013. Net income per basic and diluted
ADS for the year 2014 were US$1.30 and US$1.28, respectively, as compared to
US$0.94 and US$0.92 for 2013.
Non-GAAP net income attributable to Noah shareholders for
the year 2014 was US$77.7 million, a
37.1% increase from 2013. Non-GAAP net margin for the year
2014 was 31.3%, as compared to 34.6% for 2013. Non-GAAP net
income per diluted ADS for the year 2014 was US$1.38, as compared to US$1.01 for 2013.
Balance Sheet and Cash Flow
As of December 31, 2014, the
Company had US$282.1 million in cash
and cash equivalents, an increase of US$23.6
million from US$258.5 million
as of September 30, 2014, and an
increase of US$86.0 million from
US$196.1 million as of December 31, 2013. In the fourth quarter of 2014,
the Company generated US$39.8 million
from its operating activities and used a net US$14.6 million in investing activities, mostly
related to investment in affiliates. The Company generated
US$95.1 million from its operating
activities, used a net US$14.8
million in its investing activities, and generated a net
US$9.7 million from its financing
activities for the full year 2014.
2015 FORECAST
The Company estimates that non-GAAP net income attributable to
Noah shareholders for the full year 2015 is expected to be in the
range of US$90.0 million to US$95.0
million, representing a year-over-year increase in the range
of 15.9% to 22.3%. This estimate reflects management's current
business outlook and is subject to change.
CONFERENCE CALL
Senior management will host a conference call on Monday, March 16, 2015 at 8:00 pm (Eastern) / 5:00
pm (Pacific) / 8:00 am
(Hong Kong, Tuesday, March 17, 2015) to discuss its fourth
quarter and full year 2014 unaudited financial results and recent
business activities. The conference call may be accessed by calling
the following numbers:
|
Toll Free
|
United
States
|
+1-888-346-8982
|
China
|
4001-201203
|
Hong Kong
|
800-90-5945
|
|
Toll
|
International
|
+1-412-902-4272
|
Conference ID
#
|
Noah Holdings Limited
Call
|
A telephone replay will be available one hour after the call
until March 23, 2015 at
+1-877-344-7529 (US Local Toll) or +1-412-317-0088 (International).
Conference ID # 10061711.
A live webcast of the conference call and replay will be
available in the investor relations section of the Company's
website at http://ir.noahwm.com.
DISCUSSION OF NON-GAAP FINANCIAL MEASURES:
In addition to disclosing financial results prepared in
accordance with U.S. GAAP, the Company's earnings release contains
non-GAAP financial measures that exclude the effects of all forms
of share-based compensation. The reconciliation of these non-GAAP
financial measures to the nearest GAAP measures is set forth in the
table captioned "Reconciliation of GAAP to Non-GAAP Results"
below.
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
measure 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 non-GAAP net income results
reflecting adjustments to exclude the impacts of share-based
compensation to supplement U.S. GAAP financial data. As such, the
Company believes that the presentation of the non-GAAP net income,
non-GAAP income per diluted ADS and non-GAAP net margin provides
important supplemental information to investors regarding financial
and business trends relating to the Company's financial condition
and results of operations in a manner consistent with that used by
management. Pursuant to U.S. GAAP, the Company recognized
significant amounts of expenses for the restricted shares and share
options in the periods presented. To make financial results
comparable period by period, the Company utilized the non-GAAP
financial results to better understand its historical business
operations.
ABOUT NOAH HOLDINGS LIMITED
Founded in 2005, Noah Holdings Limited (NYSE: NOAH) is a leading
wealth management service provider with a focus on global wealth
investment and asset allocation services for high net worth
individuals and enterprises in China. Noah distributed US$10.3 billion of wealth management products in
2014 and had a total of US$8.1
billion of assets under management as of December 31, 2014.
Noah distributes a wide array of wealth management products
including fixed income products, private equity funds, mutual funds
and insurance products. Noah also manages private equity funds,
real estate funds, hedge funds, and other assets through Gopher
Asset Management. In addition, in the second quarter of 2014, the
Company launched a self-developed internet finance platform to
provide financial products and services to white-collar
professionals in China. Noah
delivers customized financial solutions to clients through a
network of 779 relationship managers across 94 branches and
sub-branches in 63 cities in China, and serves the international investment
needs of its clients through a wholly-owned subsidiary in
Hong Kong. The Company's wealth
management business had 70,557 registered clients as of
December 31, 2014 and 9,010 active
clients in 2014.
Noah has won numerous awards including Hurun Report's Popular
Independent Wealth Management Institution award in 2013 and 2014,
Forbes' Best Potential Business in China award in 2015, Deloitte's Technology
Fast 500 Asia Pacific award in 2013, and STCN's Best Third Party
Wealth Management Company award in 2014.
For more information please visit Noah 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 2015 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 reports on Form 20-F. All
information provided in this press release and in the attachments
is as of the date of this press release, and Noah does not
undertake any obligation to update any such information, including
forward-looking statement, as a result of new information, future
events or otherwise, except as required under applicable law.
[1]
|
Noah's Non-GAAP
financial measures are its corresponding GAAP financial measures as
adjusted by excluding the effects of all forms of share-based
compensation.
|
[2]
|
"Active clients"
refers to those registered clients who purchased wealth management
products distributed by Noah during any given period.
|
[3]
|
The amount in RMB was
translated into U.S. dollars using the average rate for the fourth
quarter of 2014 as set forth in the H.10 statistical release of the
Federal Reserve Board.
|
[4]
|
"Average transaction
value per client" refers to the average value of wealth management
products distributed by Noah that are purchased by active clients
during a given period.
|
Contacts:
Noah Holdings Limited
Ke-Li
Cheng, Officer of IR
Tel: +86 21 2510 0889
ir@noahwm.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
Condensed Consolidated Balance Sheets
(In U.S. dollars)
(unaudited)
|
|
|
|
|
|
As of
|
|
|
|
|
|
September
30,
2014
|
|
December
31,
2014
|
|
|
|
|
|
$
|
|
$
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
258,459,924
|
|
282,081,829
|
|
|
|
Restricted
cash
|
|
162,920
|
|
161,171
|
|
|
|
Short-term
investments
|
|
26,037,694
|
|
22,182,012
|
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of nil at September 30, 2014
and December 31, 2014
|
|
22,840,267
|
|
10,970,775
|
|
|
|
Loans
receivable
|
|
8,577,462
|
|
6,932,469
|
|
|
|
Deferred tax
assets
|
|
789,145
|
|
3,522,054
|
|
|
|
Amounts due from
related parties
|
|
24,446,914
|
|
31,085,548
|
|
|
|
Other current
assets
|
|
7,119,402
|
|
9,430,135
|
|
|
|
Total current
assets
|
|
348,433,728
|
|
366,365,993
|
|
|
|
|
|
|
|
|
|
|
Long-term
investments
|
|
11,789,800
|
|
9,870,939
|
|
|
Investment in
affiliates
|
|
19,867,059
|
|
35,817,261
|
|
|
Property and
equipment, net
|
|
12,970,238
|
|
14,852,566
|
|
|
Non-current deferred
tax assets
|
|
1,571,197
|
|
2,262,489
|
|
|
Other non-current
assets
|
|
1,985,605
|
|
1,930,814
|
|
Total
Assets
|
|
396,617,627
|
|
431,100,062
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
|
41,517,860
|
|
51,649,188
|
|
|
|
Income tax
payable
|
|
4,902,151
|
|
8,936,390
|
|
|
|
Amounts due to
related parties
|
|
36,334
|
|
125,459
|
|
|
|
Deferred
revenues
|
|
19,784,572
|
|
15,747,984
|
|
|
|
Short-term bank
loans
|
|
8,145,976
|
|
8,058,537
|
|
|
|
Other current
liabilities
|
|
17,761,287
|
|
27,134,180
|
|
|
|
Total current
liabilities
|
|
92,148,180
|
|
111,651,738
|
|
|
|
|
|
|
|
|
|
|
Non-current uncertain
tax position liabilities
|
|
1,762,402
|
|
1,793,459
|
|
|
Other non-current
liabilities
|
|
3,401,455
|
|
5,004,281
|
|
|
Total
Liabilities
|
|
97,312,037
|
|
118,449,478
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
299,305,590
|
|
312,650,584
|
|
Total Liabilities
and Equity
|
|
396,617,627
|
|
431,100,062
|
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
Revenues:
|
|
$
|
|
$
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
15,504,040
|
|
22,303,654
|
|
43.9%
|
Recurring service fees
|
|
9,361,186
|
|
14,146,916
|
|
51.1%
|
Other service fees
|
|
1,883,178
|
|
3,759,172
|
|
99.6%
|
Total third-party
revenues
|
|
26,748,404
|
|
40,209,742
|
|
50.3%
|
Related party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
4,153,964
|
|
5,616,654
|
|
35.2%
|
Recurring service fees
|
|
17,486,442
|
|
21,226,647
|
|
21.4%
|
Other service fees
|
|
(319,574)
|
|
30,213
|
|
(109.5%)
|
Total Related party
revenues
|
|
21,320,832
|
|
26,873,514
|
|
26.0%
|
Total
revenues
|
|
48,069,236
|
|
67,083,256
|
|
39.6%
|
Less: business taxes and related surcharges
|
|
(2,624,299)
|
|
(3,810,240)
|
|
45.2%
|
Net
revenues
|
|
45,444,937
|
|
63,273,016
|
|
39.2%
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
Relationship Manager Compensation
|
|
(9,851,614)
|
|
(15,054,081)
|
|
52.8%
|
Other
Compensations
|
|
(9,388,745)
|
|
(17,503,361)
|
|
86.4%
|
Total compensation and
benefits
|
|
(19,240,359)
|
|
(32,557,442)
|
|
69.2%
|
Selling expenses
|
|
(6,040,860)
|
|
(8,510,245)
|
|
40.9%
|
General and administrative expenses
|
|
(6,710,277)
|
|
(10,276,744)
|
|
53.1%
|
Other operating expenses
|
|
(181,678)
|
|
(2,020,560)
|
|
1012.2%
|
Government subsidies
|
|
16,686
|
|
7,925,517
|
|
47398.0%
|
Total operating cost
and expenses
|
|
(32,156,488)
|
|
(45,439,474)
|
|
41.3%
|
Income from
operations
|
|
13,288,449
|
|
17,833,542
|
|
34.2%
|
Other
income:
|
|
|
|
|
|
|
Interest income
|
|
1,134,154
|
|
1,513,146
|
|
33.4%
|
Investment income
|
|
890,285
|
|
814,270
|
|
(8.5%)
|
Other income
|
|
202,683
|
|
133,775
|
|
(34.0%)
|
Total other
income
|
|
2,227,122
|
|
2,461,191
|
|
10.5%
|
Income before taxes
and loss from equity in
|
|
15,515,571
|
|
20,294,733
|
|
30.8%
|
Affiliates
|
|
|
|
|
|
|
Income tax
expense
|
|
(1,995,926)
|
|
(5,385,677)
|
|
169.8%
|
Income from equity in
affiliates
|
|
444,244
|
|
16,203
|
|
(96.4%)
|
Net
income
|
|
13,963,889
|
|
14,925,259
|
|
6.9%
|
Less: net income
attributable to non-controlling
|
|
571,011
|
|
170,783
|
|
(70.1%)
|
Interests
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders
|
|
13,392,878
|
|
14,754,476
|
|
10.2%
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
|
0.24
|
|
0.26
|
|
8.3%
|
Income per ADS,
diluted
|
|
0.24
|
|
0.26
|
|
8.3%
|
Margin
analysis:
|
|
|
|
|
|
|
Operating
margin
|
|
29.2%
|
|
28.2%
|
|
|
Net margin
|
|
30.7%
|
|
23.6%
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
|
Basic
|
|
55,187,820
|
|
56,018,144
|
|
|
Diluted
|
|
56,456,470
|
|
56,573,597
|
|
|
ADS equivalent
outstanding at end of period
|
|
55,296,131
|
|
56,110,604
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and percentages)
|
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
|
|
(audited)
|
|
(unaudited)
|
|
|
|
|
$
|
|
$
|
|
|
Revenues:
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
57,972,609
|
|
68,698,354
|
|
18.5%
|
Recurring service fees
|
|
32,951,345
|
|
51,892,138
|
|
57.5%
|
Other service fees
|
|
5,065,113
|
|
8,864,477
|
|
75.0%
|
Total third-party
revenues
|
|
95,989,067
|
|
129,454,969
|
|
34.9%
|
Related party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
20,841,594
|
|
29,322,581
|
|
40.7%
|
Recurring service fees
|
|
55,508,435
|
|
90,885,669
|
|
63.7%
|
Other service fees
|
|
979,839
|
|
12,585,342
|
|
1184.4%
|
Total Related party
revenues
|
|
77,329,868
|
|
132,793,592
|
|
71.7%
|
Total
revenues
|
|
173,318,935
|
|
262,248,561
|
|
51.3%
|
Less: business taxes and related surcharges
|
|
(9,547,102)
|
|
(14,380,469)
|
|
50.6%
|
Net
revenues
|
|
163,771,833
|
|
247,868,092
|
|
51.3%
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
Relationship Manager
Compensation
|
|
(33,436,866)
|
|
(52,246,943)
|
|
56.3%
|
Performance Fee Compensation
|
|
-
|
|
(3,536,240)
|
|
-
|
Other Compensations
|
|
(39,606,754)
|
|
(63,826,889)
|
|
61.2%
|
Total compensation
and benefits
|
|
(73,043,620)
|
|
(119,610,072)
|
|
63.8%
|
Selling expenses
|
|
(16,660,044)
|
|
(23,896,620)
|
|
43.4%
|
General and administrative expenses
|
|
(18,087,184)
|
|
(24,611,880)
|
|
36.1%
|
Other operating expenses
|
|
(734,300)
|
|
(4,861,700)
|
|
562.1%
|
Government subsidies
|
|
5,323,670
|
|
14,792,142
|
|
177.9%
|
Total operating cost
and expenses
|
|
(103,201,478)
|
|
(158,188,130)
|
|
53.3%
|
|
|
|
|
|
|
|
Income from
operations
|
|
60,570,355
|
|
89,679,962
|
|
48.1%
|
|
|
|
|
|
|
|
Other
income(expenses):
|
|
|
|
|
|
|
Interest income
|
|
3,302,545
|
|
6,312,498
|
|
91.1%
|
Investment income
|
|
3,924,457
|
|
3,821,469
|
|
(2.6%)
|
Other income (expense) income
|
|
312,140
|
|
(2,270,347)
|
|
(827.3%)
|
Total other
income
|
|
7,539,142
|
|
7,863,620
|
|
4.3%
|
Income before taxes
and loss from equity in affiliates
|
|
68,109,497
|
|
97,543,582
|
|
43.2%
|
Income tax
expenses
|
|
(16,263,292)
|
|
(24,531,504)
|
|
50.8%
|
Income from equity in
affiliates
|
|
1,191,833
|
|
2,200,504
|
|
84.6%
|
Net income
|
|
53,038,038
|
|
75,212,582
|
|
41.8%
|
Less: net income
attributable to non-controlling interests
|
|
1,602,867
|
|
2,806,078
|
|
75.1%
|
Net income
attributable to Noah Shareholders
|
|
51,435,171
|
|
72,406,504
|
|
40.8%
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
|
0.94
|
|
1.30
|
|
38.3%
|
Income per ADS,
diluted
|
|
0.92
|
|
1.28
|
|
39.1%
|
Margin
analysis:
|
|
|
|
|
|
|
Operating
margin
|
|
37.0%
|
|
36.2%
|
|
|
Net margin
|
|
32.4%
|
|
30.3%
|
|
|
Weighted average ADS
equivalent: [2]
|
|
|
|
|
|
|
Basic
|
|
54,960,300
|
|
55,747,002
|
|
|
Diluted
|
|
56,016,772
|
|
56,455,646
|
|
|
[2] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(In U.S.
dollars)
|
(unaudited)
|
|
|
Three months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
Net
income
|
|
13,963,889
|
|
14,925,259
|
|
6.9%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
1,972,903
|
|
(3,356,467)
|
|
(270.1%)
|
Fair value fluctuation of available for sale
|
|
|
|
|
|
|
Investment (after tax)
|
|
-
|
|
17,074
|
|
-
|
Comprehensive
income
|
|
15,936,792
|
|
11,585,876
|
|
(27.3%)
|
Less: Comprehensive
income (loss) attributable to non-controlling interests
|
|
680,006
|
|
(231,576)
|
|
(134.1%)
|
Comprehensive
income attributable to Noah Shareholders
|
|
15,256,786
|
|
11,817,452
|
|
(22.5%)
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(In U.S.
dollars)
|
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
Net
income
|
|
53,038,038
|
|
75,212,582
|
|
41.8%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
4,508,372
|
|
(5,163,862)
|
|
(214.5%)
|
Fair value fluctuation of available for sale
|
|
|
|
|
|
|
Investment (after tax)
|
|
-
|
|
422,324
|
|
-
|
Comprehensive
income
|
|
57,546,410
|
|
70,471,044
|
|
22.5%
|
Less: Comprehensive
income attributable to non-controlling interests
|
|
1,880,168
|
|
2,227,448
|
|
18.5%
|
Comprehensive
income attributable to Noah Shareholders
|
|
55,666,242
|
|
68,243,596
|
|
22.6%
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
|
As of
|
|
Change
|
|
|
December 31,
2013
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
Number of registered
clients
|
|
53,501
|
|
70,557
|
|
31.9%
|
Number of
relationship managers
|
|
569
|
|
779
|
|
36.9%
|
Number of branch
offices
|
|
57
|
|
63
|
|
10.5%
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
December 31,
2013
|
|
December 31,
2014
|
|
Change
|
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of active
clients
|
|
2,927
|
|
3,529
|
|
20.6%
|
Transaction
value:
|
|
|
|
|
|
|
Fixed income products
|
|
9,502
|
|
7,479
|
|
(21.3%)
|
Private equity fund products
|
|
1,315
|
|
2,276
|
|
73.1%
|
Other products, including mutual fund products, private securities
investment funds and insurance products
|
560
|
|
2,076
|
|
270.7%
|
Total transaction
value
|
|
11,377
|
|
11,831
|
|
4.0%
|
Average transaction
value per client
|
|
3.89
|
|
3.35
|
|
(13.9%)
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
|
|
December 31,
2013
|
|
December 31,
2014
|
|
Change
|
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of active
clients
|
|
6,445
|
|
9,010
|
|
39.6%
|
Transaction
value:
|
|
|
|
|
|
|
Fixed income products
|
|
35,709
|
|
40,212
|
|
12.6%
|
Private equity fund products
|
|
6,426
|
|
11,971
|
|
86.3%
|
Other products, including mutual fund products, private securities
investment funds and insurance products
|
2,352
|
|
11,187
|
|
375.6%
|
Total transaction
value
|
|
44,487
|
|
63,371
|
|
42.4%
|
Average transaction
value per client
|
|
6.90
|
|
7.03
|
|
1.9%
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
Wealth Management
Business
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
15,291,714
|
|
22,303,654
|
|
45.9%
|
Recurring service fees
|
|
7,094,015
|
|
11,396,107
|
|
60.6%
|
Other service fees
|
|
1,798,306
|
|
2,053,333
|
|
14.2%
|
Total third-party
revenues
|
|
24,184,035
|
|
35,753,094
|
|
47.8%
|
Related party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
3,761,205
|
|
5,616,654
|
|
49.3%
|
Recurring service fees
|
|
11,380,798
|
|
12,460,492
|
|
9.5%
|
Total Related party
revenues
|
|
15,142,003
|
|
18,077,146
|
|
19.4%
|
Total
revenues
|
|
39,326,038
|
|
53,830,240
|
|
36.9%
|
Less: business taxes and related surcharges
|
|
(2,176,246)
|
|
(3,208,737)
|
|
47.4%
|
Net
revenues
|
|
37,149,792
|
|
50,621,503
|
|
36.3%
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
Relationship Manager Compensation
|
|
(9,836,241)
|
|
(14,688,971)
|
|
49.3%
|
Other
Compensations
|
|
(6,479,638)
|
|
(9,043,014)
|
|
39.6%
|
Total compensation and
benefits
|
|
(16,315,879)
|
|
(23,731,985)
|
|
45.5%
|
Selling expenses
|
|
(5,275,677)
|
|
(7,777,688)
|
|
47.4%
|
General and administrative expenses
|
|
(5,066,970)
|
|
(4,482,375)
|
|
(11.5%)
|
Other operating expenses
|
|
(166,416)
|
|
(1,417,939)
|
|
752.0%
|
Government subsidies
|
|
16,686
|
|
7,249,500
|
|
43346.6%
|
Total operating cost
and expenses
|
|
(26,808,256)
|
|
(30,160,487)
|
|
12.5%
|
Income from
operations
|
|
10,341,536
|
|
20,461,016
|
|
97.9%
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
Wealth Management
Business
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
57,813,505
|
|
68,973,857
|
|
19.3%
|
Recurring service fees
|
|
28,434,140
|
|
39,462,923
|
|
38.8%
|
Other service fees
|
|
4,891,288
|
|
3,216,364
|
|
(34.2%)
|
Total third-party
revenues
|
|
91,138,933
|
|
111,653,144
|
|
22.5%
|
Related party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
20,551,396
|
|
29,396,691
|
|
43.0%
|
Recurring service fees
|
|
37,492,722
|
|
55,589,582
|
|
48.3%
|
Other service fees
|
|
44,199
|
|
333,455
|
|
654.4%
|
Total Related party
revenues
|
|
58,088,317
|
|
85,319,728
|
|
46.9%
|
Total
revenues
|
|
149,227,250
|
|
196,972,872
|
|
32.1%
|
Less: business taxes and related surcharges
|
|
(8,237,942)
|
|
(11,129,939)
|
|
35.1%
|
Net
revenues
|
|
140,989,308
|
|
185,842,933
|
|
31.8%
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
Relationship Manager
Compensation
|
|
(33,362,053)
|
|
(51,843,586)
|
|
55.4%
|
Other Compensations
|
|
(31,077,968)
|
|
(34,851,930)
|
|
12.1%
|
Total compensation
and benefits
|
|
(64,440,021)
|
|
(86,695,516)
|
|
34.5%
|
|
|
|
|
|
|
|
Selling expenses
|
|
(15,117,644)
|
|
(21,951,311)
|
|
45.2%
|
General and administrative expenses
|
|
(14,037,239)
|
|
(12,117,434)
|
|
(13.7%)
|
Other operating expenses
|
|
(694,460)
|
|
(3,836,816)
|
|
452.5%
|
Government subsidies
|
|
4,997,145
|
|
10,943,240
|
|
119.0%
|
Total operating cost
and expenses
|
|
(89,292,219)
|
|
(113,657,837)
|
|
27.3%
|
Income from
operations
|
|
51,697,089
|
|
72,185,096
|
|
39.6%
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
Asset Management
Business
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
212,326
|
|
-
|
|
(100.0%)
|
Recurring service fees
|
|
2,267,171
|
|
2,750,809
|
|
21.3%
|
Other service fees
|
|
84,872
|
|
473,935
|
|
458.4%
|
Total third-party
revenues
|
|
2,564,369
|
|
3,224,744
|
|
25.8%
|
Related party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
436,911
|
|
-
|
|
(100.0%)
|
Recurring service fees
|
|
6,105,644
|
|
8,766,155
|
|
43.6%
|
Other service fees
|
|
(363,726)
|
|
-
|
|
(100.0%)
|
Total Related party
revenues
|
|
6,178,829
|
|
8,766,155
|
|
41.9%
|
Total
revenues
|
|
8,743,198
|
|
11,990,899
|
|
37.1%
|
Less: business taxes and related surcharges
|
|
(448,053)
|
|
(567,021)
|
|
26.6%
|
Net
revenues
|
|
8,295,145
|
|
11,423,878
|
|
37.7%
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
Relationship Manager
Compensation
|
|
(15,373)
|
|
-
|
|
(100.0%)
|
Other Compensations
|
|
(2,909,107)
|
|
(4,875,580)
|
|
67.6%
|
Total compensation
and benefits
|
|
(2,924,480)
|
|
(4,875,580)
|
|
66.7%
|
Selling expenses
|
|
(765,183)
|
|
(454,331)
|
|
(40.6%)
|
General and administrative expenses
|
|
(1,643,307)
|
|
(4,551,221)
|
|
177.0%
|
Other operating expenses
|
|
(15,262)
|
|
(188,548)
|
|
1135.4%
|
Government subsidies
|
|
-
|
|
676,017
|
|
-
|
Total operating cost
and expenses
|
|
(5,348,232)
|
|
(9,393,663)
|
|
75.6%
|
Income from
operations
|
|
2,946,913
|
|
2,030,215
|
|
(31.1%)
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
Asset Management
Business
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
212,326
|
|
-
|
|
(100.0%)
|
Recurring service fees
|
|
4,517,205
|
|
12,429,215
|
|
175.2%
|
Other service fees
|
|
120,603
|
|
2,655,721
|
|
2102.0%
|
Total third-party
revenues
|
|
4,850,134
|
|
15,084,936
|
|
211.0%
|
Related party
revenues
|
|
|
|
|
|
|
One-time commissions
|
|
436,911
|
|
-
|
|
(100.0%)
|
Recurring service fees
|
|
18,015,713
|
|
35,291,220
|
|
95.9%
|
Other service fees
|
|
788,927
|
|
12,038,725
|
|
1426.0%
|
Total Related party
revenues
|
|
19,241,551
|
|
47,329,945
|
|
146.0%
|
Total
revenues
|
|
24,091,685
|
|
62,414,881
|
|
159.1%
|
Less: business taxes and related surcharges
|
|
(1,309,160)
|
|
(3,127,877)
|
|
138.9%
|
Net
revenues
|
|
22,782,525
|
|
59,287,004
|
|
160.2%
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
Relationship Manager
Compensation
|
|
(74,813)
|
|
(38,246)
|
|
(48.9%)
|
Performance Fee
Compensation
|
|
-
|
|
(3,536,240)
|
|
-
|
Other Compensations
|
|
(8,528,786)
|
|
(20,282,224)
|
|
137.8%
|
Total compensation and benefits
|
|
(8,603,599)
|
|
(23,856,710)
|
|
177.3%
|
Selling expenses
|
|
(1,542,400)
|
|
(1,583,422)
|
|
2.7%
|
General and administrative expenses
|
|
(4,049,945)
|
|
(9,755,093)
|
|
140.9%
|
Other operating expenses
|
|
(39,840)
|
|
(272,047)
|
|
582.8%
|
Government subsidies
|
|
326,525
|
|
3,844,512
|
|
1077.4%
|
Total operating cost
and expenses
|
|
(13,909,259)
|
|
(31,622,760)
|
|
127.4%
|
Income from
operations
|
|
8,873,266
|
|
27,664,244
|
|
211.8%
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2014
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
Internet Finance
Business
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
Other service fees
|
|
1,231,904
|
|
2,716,889
|
|
|
Total third-party
revenues
|
|
1,231,904
|
|
2,716,889
|
|
|
Related party
revenues
|
|
|
|
|
|
|
Recurring service fees
|
|
|
|
4,867
|
|
|
Other service fees
|
|
30,213
|
|
139,052
|
|
|
Total Related party
revenues
|
|
30,213
|
|
143,919
|
|
|
Total
revenues
|
|
1,262,117
|
|
2,860,808
|
|
|
Less: business taxes and related surcharges
|
|
(34,482)
|
|
(122,653)
|
|
|
Net
revenues
|
|
1,227,635
|
|
2,738,155
|
|
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
Relationship Manager
Compensation
|
|
(365,110)
|
|
(365,110)
|
|
|
Other Compensations
|
|
(3,584,767)
|
|
(8,692,736)
|
|
|
Total compensation
and benefits
|
|
(3,949,877)
|
|
(9,057,846)
|
|
|
Selling expenses
|
|
(278,226)
|
|
(361,887)
|
|
|
General and administrative expenses
|
|
(1,243,148)
|
|
(2,739,353)
|
|
|
Other operating expenses
|
|
(414,073)
|
|
(752,837)
|
|
|
Government subsidies
|
|
-
|
|
4,390
|
|
|
Total operating cost
and expenses
|
|
(5,885,324)
|
|
(12,907,533)
|
|
|
Income from
operations
|
|
(4,657,689)
|
|
(10,169,378)
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In U.S. dollars,
except for ADS data and percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Net margin
|
|
30.7%
|
|
23.6%
|
|
|
Adjusted net margin
(non-GAAP)*
|
|
33.3%
|
|
24.8%
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders
|
|
13,392,878
|
|
14,754,476
|
|
10.2%
|
Adjustment for
share-based compensation related to:
|
|
|
|
|
|
|
Share options
|
|
37,989
|
|
327,336
|
|
761.7%
|
Restricted shares
|
|
1,127,234
|
|
424,136
|
|
(62.4%)
|
Adjusted net income
attributable to Noah Shareholders (non-GAAP)*
|
|
14,558,101
|
|
15,505,948
|
|
6.5%
|
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders per ADS, diluted
|
|
0.24
|
|
0.26
|
|
8.3%
|
Adjusted net income
attributable to Noah Shareholders per ADS, diluted
(non-GAAP)*
|
0.26
|
|
0.27
|
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*The non-GAAP
adjustments do not take into consideration the impact of taxes on
such adjustments.
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In U.S. dollars,
except for ADS data and percentages)
|
(unaudited)
|
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Net margin
|
|
32.4%
|
|
30.3%
|
|
|
Adjusted net margin
(non-GAAP)*
|
|
35.6%
|
|
32.5%
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders
|
|
51,435,171
|
|
72,406,504
|
|
40.8%
|
Adjustment for
share-based compensation related to:
|
|
|
|
|
|
|
Share options
|
|
205,699
|
|
1,464,233
|
|
611.8%
|
Restricted shares
|
|
5,040,248
|
|
3,834,496
|
|
(23.9%)
|
Adjusted net income
attributable to Noah Shareholders (non-GAAP)*
|
|
56,681,118
|
|
77,705,233
|
|
37.1%
|
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders per ADS, diluted
|
|
0.92
|
|
1.28
|
|
39.1%
|
Adjusted net income
attributable to Noah Shareholders per ADS, diluted
(non-GAAP)*
|
1.01
|
|
1.38
|
|
36.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*The non-GAAP
adjustments do not take into consideration the impact of taxes on
such adjustments.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-fourth-quarter-and-full-year-2014-300051061.html
SOURCE Noah Holdings Limited