SHANGHAI, May 18, 2015 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth
management services 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 first quarter of 2015.
Starting from the fourth quarter of 2014, the Company has
presented its financial results in three business segments, (i)
wealth management, (ii) asset management and (iii) internet
finance. To facilitate comparisons with these first quarter 2015
financial results, the Company has also presented its historical
first quarter 2014 financial results in this press release
according to these three business segments.
FIRST QUARTER 2015 FINANCIAL HIGHLIGHTS
- Net revenues in the first quarter of 2015
were US$71.8 million, a 42.9%
increase from the corresponding period in 2014.
(US$ millions,
except percentages)
|
Q1
2014
|
|
Q1 2014 Segment
%
|
|
Q1
2015
|
|
Q1 2015 Segment
%
|
|
YoY
Change
|
Wealth
management
|
38.8
|
|
77.2%
|
|
54.8
|
|
76.4%
|
|
41.3%
|
Asset
management
|
11.0
|
|
22.0%
|
|
15.5
|
|
21.6%
|
|
40.5%
|
Internet
finance
|
0.4
|
|
0.8%
|
|
1.5
|
|
2.0%
|
|
249.3%
|
Total net
revenues
|
50.3
|
|
100.0%
|
|
71.8
|
|
100.0%
|
|
42.9%
|
- Income from operations in the first quarter of 2015 was
US$22.8 million, a 10.1% increase
from the corresponding period in 2014.
(US$ millions,
except percentages)
|
Q1
2014
|
|
Q1 2014 Segment
%
|
|
Q1
2015
|
|
Q1 2015 Segment
%
|
|
YoY
Change
|
Wealth
management
|
15.5
|
|
75.1%
|
|
20.7
|
|
91.1%
|
|
33.4%
|
Asset
management
|
5.7
|
|
27.5%
|
|
6.4
|
|
28.1%
|
|
12.7%
|
Internet
finance
|
(0.5)
|
|
(2.6%)
|
|
(4.4)
|
|
(19.2%)
|
|
712.7%
|
Income from
operations
|
20.7
|
|
100.0%
|
|
22.8
|
|
100.0%
|
|
10.1%
|
- Net income attributable to Noah shareholders in the
first quarter of 2015 was US$21.2
million, a 25.5% increase from the corresponding period in
2014.
- Non-GAAP[1] net income attributable to Noah shareholders
in the first quarter of 2015 was US$22.5
million, a 24.3% increase from the corresponding period in
2014.
FIRST QUARTER 2015 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business provides global wealth
investment and asset allocation services to high net worth
individuals and enterprise clients in China.
- The total number of registered clients as of
March 31, 2015 was 74,895, consisting
of 72,027 registered individual clients, 2,749 registered
enterprise clients and 119 wholesale clients that have entered into
cooperation agreements with the Company, a 34.9% increase since
March 31, 2014.
- The total number of active clients[2] during the first
quarter of 2015 was 5,275, a 61.9% increase from the corresponding
period in 2014.
- The aggregate value of wealth management products
distributed by the Company during the first quarter of 2015 was
US$3.9 billion (approximately
RMB24.6 billion), a 64.2% increase
from the corresponding period in 2014.
Product
type
|
Three months
ended
|
|
March 31,
2014
|
|
March 31,
2015
|
|
(RMB in billions,
except percentages)
|
Fixed income
products
|
11.1
|
|
74.3%
|
|
12.2
|
|
49.5%
|
Private equity
products
|
2.6
|
|
17.0%
|
|
5.4
|
|
21.9%
|
Secondary market
equity fund products
|
0.9
|
|
6.2%
|
|
6.5
|
|
26.6%
|
Other
products
|
0.4
|
|
2.5%
|
|
0.5
|
|
2.0%
|
All
products
|
15.0
|
|
100.0%
|
|
24.6
|
|
100.0%
|
- The average transaction value per client[3] in
the first quarter of 2015 was US$0.8
million (approximately RMB4.7
million), a 1.4% increase from the corresponding period in
2014, reflecting a change in product mix.
- The coverage network as of March 31, 2015 included 112 branches and
sub-branches covering 64 cities, up from 94 branches and
sub-branches covering 63 cities as of December 31, 2014.
- The number of relationship managers was 834 as of
March 31, 2015, up from 604 as of
March 31, 2014 and 779 as of
December 31, 2014.
[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 the period
specified.
|
[3] "Average
transaction value per client" refers to the average value of wealth
management products distributed by Noah that are purchased by
active clients during the period specified.
|
Asset Management Business
The Company's asset management business manages and develops
financial products denominated in both Renminbi and U.S. dollars,
covering real estate funds and funds of funds, including private
equity funds, real estate funds, hedge funds and fixed income
funds.
- The total assets under management as of March 31, 2015 were US$9.4
billion (approximately RMB58.9
billion), a 53.9% increase from March
31, 2014 and an 18.5% increase from December 31, 2014.
Product
type
|
As of December
31, 2014
|
|
Asset
Growth
|
|
Asset
Expiration
|
|
As of March
31, 2015
|
|
(RMB in billions,
except percentages)
|
Real estate funds and real
estate fund of funds
|
31.0
|
|
62.4%
|
|
7.8
|
|
(3.7)
|
|
35.1
|
|
59.7%
|
Private equity
fund of
funds
|
10.4
|
|
20.9%
|
|
4.6
|
|
(0.2)
|
|
14.8
|
|
25.1%
|
Secondary market
equity fund of
funds
|
2.6
|
|
5.2%
|
|
2.4
|
|
(0.8)
|
|
4.2
|
|
7.1%
|
Other fixed
income fund of
funds
|
5.7
|
|
11.5%
|
|
0.8
|
|
(1.7)
|
|
4.8
|
|
8.1%
|
All
products
|
49.7
|
|
100.0%
|
|
15.6
|
|
(6.4)
|
|
58.9
|
|
100.0%
|
Internet Finance Business
The Company's internet finance business provides financial
products and services through a proprietary internet finance
platform to white-collar professionals in China.
- The aggregate value of financial products distributed by the
Company through its internet finance platform in the first
quarter of 2015 was US$346.7 million
(approximately RMB2.2 billion).
- The total number of enterprise clients as of
March 31, 2015 was 320, up from 205
as of December 31, 2014.
"We started 2015 strongly, with both revenues and net income in
line with our expectations. Our transformation into a
comprehensive financial services platform with both wealth and
asset management capabilities is gaining momentum." said Ms.
Jingbo Wang, Co-founder, Chairwoman
of the Board of Directors and Chief Executive Officer. "Revenues
for the quarter increased 43% year-over-year as we continued to
improve our wealth and asset management franchise and acquired a
significant number of high net worth, enterprise and family office
clients. We also continued to diversify our product mix. Our
internet finance platform has gained substantial traction since the
end of 2014, with transaction value growing beyond our expectation
and our number of enterprise clients increasing by over
56%."
Mr. Kenny Lam, Group President of
Noah, said, "Demand for international asset allocation continues to
expand tremendously, as we build our wealth and asset management
capabilities in Hong Kong. In
addition to the strategic investments for our mainland China business, we are exploring deeper
partnerships with international players for our services in
Hong Kong. During 2015, we will
improve our IT and operating systems across Noah to support our
rapid growth for the next 3 to 5 years. We are confident that these
initiatives will help cement our industry position, enhance our
market share and set a firm foundation for future growth."
FIRST QUARTER 2015 FINANCIAL RESULTS
Net Revenues
Net revenues for the first quarter of 2015 were
US$71.8 million, a 42.9% increase
from the corresponding period in 2014, primarily due to increases
in one-time commission revenues, recurring service fees and
performance-based income.
- Wealth Management Business
- Net revenues from one-time commissions for the
first quarter of 2015 were US$30.3
million, a 65.9% increase from the corresponding period in
2014, primarily due to an increase in the aggregate value of the
wealth management products distributed by the Company and a shift
towards products with higher average commission rates.
- Net revenues from recurring service fees for the first
quarter of 2015 were US$21.7 million,
an 8.2% increase from the corresponding period in 2014, mainly due
to the cumulative effect of finance products previously distributed
by the Company with chargeable recurring service fees.
- Net revenues from other service fees for the first
quarter of 2015 were US$2.8 million,
a 566.5% increase from the corresponding period in 2014, primarily
consisting of performance-based income received for secondary
equity market fund products distributed by the Company.
- Asset Management Business
- Net revenues from recurring service fees for the first
quarter of 2015 were US$12.9 million,
a 19.0% increase from the corresponding period in 2014, primarily
due to the increase in assets under management by the
Company.
- Net revenues from other service fees for the first
quarter of 2015 were US$2.6 million,
primarily consisting of performance-based income received for
managing funds of secondary equity market funds.
- Internet Finance Business
- Net revenues for the first quarter of 2015 were
US$1.5 million. Revenue from the
internet finance business was presented as other service fees in
periods prior to the fourth quarter of 2014.
Operating costs and expenses
Operating costs and expenses includes
compensation and benefits, selling expenses, G&A expenses,
other operating expenses and government subsidies. Operating cost
and expenses for the first quarter of 2015 were US$49.0 million, a 65.8% increase from the
corresponding period in 2014.
- Wealth Management Business
Operating costs and
expenses for the first quarter of 2015 were US$34.1 million, a 46.6% increase from the
corresponding period in 2014.
- Compensation and benefits includes compensation for
relationship managers and back-office employees. Compensation and
benefits for the first quarter of 2015 were US$25.1 million, a 36.4% increase from the
corresponding period in 2014. In the first quarter of 2015,
relationship manager compensation increased by 42.3% from the
corresponding period in 2014, reflecting an increase in the
aggregate value of financial products they distributed. Other
compensation for the first quarter of 2015 increased by 28.4% from
the corresponding period in 2014 primarily due to an increase in
the number of back-office employees.
- Selling expenses for the first quarter of 2015 were
US$6.1 million, a 65.1% increase from
the corresponding period in 2014, primarily due to increased
general marketing expenses due to an increase in our marketing
efforts, as well as increased employee expenses and consulting
fees.
- G&A expenses for the first quarter of 2015 were
US$2.2 million, a 6.1% increase from
the corresponding period in 2014.
- Other operating expenses include other costs incurred
directly in relation to the Company's revenues. Other operating
expenses for the first quarter of 2015 were US$0.7 million, an increase of 55.2% from the
corresponding period in 2014. The increase was primarily due to the
growth of other businesses within the wealth management
segment.
- Government subsidies represent cash subsidies received
from local governments for general corporate purposes. The Company
received no government subsidies in the first quarter of 2015,
compared to US$1.3 million in the
corresponding period in 2014.
- Asset Management Business
Operating costs and
expenses for the first quarter of 2015 were US$9.1 million, a 69.9% increase from the
corresponding period in 2014.
- Compensation and benefits includes compensation of
managers of institutional client relationships, fund managers and
back-office employees. Compensation and benefits for the first
quarter of 2015 were US$6.4 million,
a 26.3% increase from the corresponding period in 2014, primarily
due to an increase in performance fee compensation to fund managers
corresponding to the increase in performance-based income and the
expansion of institutional business.
- Selling expenses for the first quarter of 2015 were
US$0.4 million, a 15.5% decrease from
the corresponding period in 2014.
- G&A expenses for the first quarter of 2015 were
US$2.3 million, a 67.5% increase from
the corresponding period in 2014, primarily driven by increased
consulting fees and conference fees.
- Government subsidies represent cash subsidies received
from local governments for general corporate purposes. The Company
received no government subsidies in the first quarter of 2015,
compared to US$1.5 million in the
corresponding period in 2014.
- Internet Finance Business
Operating costs and
expenses represented the Company's expenses in human resources,
marketing and internet infrastructure, as well as other expenses
incurred in promoting the Company's internet finance
business. Operating costs and expenses for the first
quarter of 2015 were US$5.8 million,
primarily consisting of compensation and benefits of US$3.8 million, selling expenses of US$0.5 million, G&A expenses of US$1.2 million and other operating expenses of
US$0.3 million.
Operating Margin
Operating margin for the first quarter of 2015 was 31.7%,
as compared to 41.2% for the corresponding period in 2014.
- Wealth Management Business
Operating margin
for the first quarter of 2015 was 37.8%, compared to 40.1% for the
corresponding period in 2014. The decrease was mainly because the
Company received no government subsidies in the first quarter of
2015, compared to government subsidies of US$1.3 million in the corresponding period in
2014.
- Asset Management Business
Operating margin
decreased to 41.2% for the first quarter of 2015 from 51.4% for the
corresponding period in 2014. The decrease was primarily because
the Company received no government subsidies in the first quarter
of 2015, compared to government subsidies of US$1.5 million in the corresponding period in
2014.
- Internet Finance Business
Operating loss for
the first quarter of 2015 was US$4.4
million compared with US$0.5
million for the corresponding period of the prior year.
Income Tax Expenses
Income tax expenses for the first quarter of
2015 were US$6.1 million, a 9.5%
increase from the corresponding period in 2014. The increase was
primarily due to an increase in taxable income.
Net Income
- Net Income
- Net income attributable to Noah shareholders for the
first quarter of 2015 was US$21.2
million, a 25.5% increase from the corresponding period in
2014.
- Net margin for the first quarter of 2015 was 28.7%,
as compared to 34.8% for the corresponding period in
2014.
- Net income per basic and diluted ADS for the first
quarter of 2015 were US$0.38 and
US$0.37, respectively, as compared to
US$0.30 and US$0.30, respectively, for the corresponding
period in 2014.
- Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders
for the first quarter of 2015 was US$22.5
million, a 24.3% increase from the corresponding period in
2014.
- Non-GAAP net margin for the first quarter of 2015 was
31.3%, as compared to 36.0% for the corresponding period in
2014.
- Non-GAAP net income per diluted ADS for the first
quarter of 2015 was US$0.38, as
compared to US$0.32 for the
corresponding period in 2014.
Balance Sheet and Cash Flow
As of March 31, 2015, the Company
had US$274.7 million in cash and cash
equivalents, compared to US$160.6
million as of March 31, 2014
and US$282.1 million as of
December 31, 2014.
Cash outflow from the Company's operating activities during the
first quarter of 2015 was US$8.6
million, primarily due to the payment of annual bonuses
during the first quarter of 2015.
Cash outflow from the Company's investing activities during the
first quarter of 2015 was US$70.7
million, primarily due to an increase in investments in
affiliates and short-term investments.
Cash inflow from the Company's financing activities for the
first quarter of 2015 was US$71.7
million, primarily due to the issuance of US$80 million in aggregate principal amount of
convertible notes in February 2015,
which was partially offset by the repayment of US$8.1 million in bank loans in the first quarter
of 2015.
2015 FORECAST
The Company reiterates its 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, an increase of 15.9% to 22.3%
compared to the full year 2014. This estimate reflects management's
current business outlook and is subject to change.
CONFERENCE CALL
Senior management will host a conference call on Monday, May 18, 2015 at 8:00 pm Eastern / 5:00
pm Pacific / 8:00 am
Hong Kong, Tuesday, May 19, 2015 to discuss its first
quarter 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
|
800-905-945
|
|
Toll
|
International
|
+1-412-902-4272
|
Conference
Title
|
Noah Holdings Limited
First Quarter 2015 Earnings
|
A telephone replay will be available one hour after the call
until May 26, 2015 at +1-877-344-7529
(US Toll Free) or +1-412-317-0088 (International). The replay
access code is 10065018.
A live webcast of the conference call and replay will be
available in the investor relations section of the Company's
website at http://noahwm.investorroom.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. The Company utilized the non-GAAP
financial results to make financial results comparable period to
period and to better understand its historical business
operations.
ABOUT NOAH HOLDINGS LIMITED
Founded in 2005, Noah Holdings Limited (NYSE: NOAH) is a leading
wealth management services provider with a focus on global wealth
investment and asset allocation services for high net worth
individuals and enterprises in China. From its founding to March 31, 2015, Noah has distributed over
US$33.0 billion of wealth management
products. As of March 31, 2015, Noah
had assets under management of US$9.4
billion.
Noah distributes a wide array of wealth management products,
including fixed income products, private equity fund products,
mutual fund products and insurance products. Noah also manages
private equity funds, real estate funds, hedge funds, and other
assets through Gopher Asset Management. In addition, in the second
quarter of 2014, the Company launched a proprietary internet
finance platform to provide financial products and services to
white-collar professionals and enterprise clients in China. Noah delivers customized financial
solutions to clients through a network of 834 relationship managers
across 112 branches and sub-branches in 64 cities in China, and serves the international investment
needs of its clients through a wholly owned subsidiary in
Hong Kong. The Company's wealth
management business had 74,895 registered clients as of
March 31, 2015.
Noah has won numerous awards, including Hurun Report's Popular
Independent Wealth Management Institution award in 2013 and 2014,
Forbes' Best Potential Business in China award in 2015, Deloitte's Technology
Fast 500 Asia Pacific award in 2013, and STCN's Best Third Party
Wealth Management Company award in 2014.
For more information please visit Noah at www.noahwm.com.
Foreign Currency Translation
This release contains translations of certain Renminbi ("RMB")
amounts into U.S. dollar ("US$"). Assets and liabilities are
translated at the exchange rate set forth in the H.10 statistical
release of the Federal Reserve Board on March 31, 2015, which was US$1.00 to RMB6.1990. Equity accounts are
translated at historical exchange rates. Revenues, expenses, gains
and losses are translated using the average of the exchange rates
set forth in the H.10 statistical release of the Federal Reserve
Board for the three months ended March 31,
2015, which was US$1.00 to
RMB6.2360. Translation adjustments are reported as
cumulative translation adjustments and are a separate component of
other comprehensive income. No representation is intended to imply
that the RMB amounts could have been, or could be, converted,
realized, or settled into US$ at that rate or any other rate.
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 U.S. 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 statements, as a result of new information, future
events or otherwise, except as required under applicable law.
Contacts:
Noah
Holdings Limited
Kevin Yang, Director of Investor Relations
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
|
|
|
|
|
December
31,
2014
|
|
March 31,
2015
|
|
|
|
|
$
|
|
$
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
282,081,829
|
|
274,749,812
|
|
|
Restricted
cash
|
|
161,171
|
|
161,316
|
|
|
Short-term
investments
|
|
22,182,012
|
|
74,421,069
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of nil at December 31, 2014
and March 31, 2015
|
|
10,970,775
|
|
21,301,387
|
|
|
Loans
receivable
|
|
6,932,469
|
|
7,290,450
|
|
|
Deferred tax
assets
|
|
3,522,054
|
|
3,379,741
|
|
|
Amounts due from
related parties
|
|
31,085,548
|
|
33,465,479
|
|
|
Other current
assets
|
|
9,430,135
|
|
12,561,226
|
|
|
Total current
assets
|
|
366,365,993
|
|
427,330,480
|
|
|
|
|
|
|
|
|
Long-term
investments
|
|
9,870,939
|
|
29,881,073
|
|
Investment in
affiliates
|
|
35,817,261
|
|
38,095,239
|
|
Property and
equipment, net
|
|
14,852,566
|
|
15,495,178
|
|
Non-current deferred
tax assets
|
|
2,262,489
|
|
2,206,652
|
|
Other non-current
assets
|
|
1,930,814
|
|
2,324,841
|
Total
Assets
|
|
431,100,062
|
|
515,333,463
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
|
51,649,188
|
|
34,090,116
|
|
|
Income tax
payable
|
|
8,936,390
|
|
12,269,189
|
|
|
Amounts due to
related parties
|
|
125,459
|
|
236
|
|
|
Deferred
revenues
|
|
15,747,984
|
|
15,598,399
|
|
|
Short-term bank
loans
|
|
8,058,537
|
|
-
|
|
|
Other current
liabilities
|
|
27,134,180
|
|
30,556,280
|
|
|
Total current
liabilities
|
|
111,651,738
|
|
92,514,220
|
|
|
|
|
|
|
|
|
Non-current uncertain
tax position liabilities
|
|
1,793,459
|
|
1,794,380
|
|
Convertible
notes
|
|
-
|
|
80,000,000
|
|
Other non-current
liabilities
|
|
5,004,281
|
|
5,791,812
|
|
Total
Liabilities
|
|
118,449,478
|
|
180,100,412
|
|
|
|
|
|
|
|
|
Equity
|
|
312,650,584
|
|
335,233,051
|
Total Liabilities
and Equity
|
|
431,100,062
|
|
515,333,463
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In U.S.
dollars, except for ADS data, per ADS data and
percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
Change
|
|
March 31,
|
|
March
31,
|
|
|
2014
|
|
2015
|
|
|
Revenues:
|
$
|
|
$
|
|
|
Third-party
revenues
|
|
|
|
|
|
One-time
commissions
|
12,147,348
|
|
19,533,896
|
|
60.8%
|
Recurring service
fees
|
10,559,291
|
|
12,679,666
|
|
20.1%
|
Other service
fees
|
967,963
|
|
7,060,223
|
|
629.4%
|
Total third-party
revenues
|
23,674,602
|
|
39,273,785
|
|
65.9%
|
Related party
revenues
|
|
|
|
|
|
One-time
commissions
|
7,210,338
|
|
12,402,293
|
|
72.0%
|
Recurring service
fees
|
22,141,193
|
|
23,759,761
|
|
7.3%
|
Other service
fees
|
107,889
|
|
22,576
|
|
(79.1%)
|
Total related party
revenues
|
29,459,420
|
|
36,184,630
|
|
22.8%
|
Total
revenues
|
53,134,022
|
|
75,458,415
|
|
42.0%
|
Less: business taxes
and related surcharges
|
(2,875,503)
|
|
(3,659,404)
|
|
27.3%
|
Net
revenues
|
50,258,519
|
|
71,799,011
|
|
42.9%
|
Operating costs and
expenses:
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
Relationship manager
compensation
|
(10,656,902)
|
|
(16,014,587)
|
|
50.3%
|
Performance fee
compensation
|
-
|
|
(860,682)
|
|
0.0%
|
Other
compensation
|
(13,413,956)
|
|
(18,410,072)
|
|
37.2%
|
Total compensation and
benefits
|
(24,070,858)
|
|
(35,285,341)
|
|
46.6%
|
Selling
expenses
|
(4,152,915)
|
|
(6,985,360)
|
|
68.2%
|
General and
administrative expenses
|
(3,705,818)
|
|
(5,675,151)
|
|
53.1%
|
Other operating
expenses
|
(477,320)
|
|
(1,074,384)
|
|
125.1%
|
Government
subsidies
|
2,832,420
|
|
-
|
|
(100.0%)
|
Total operating costs
and expenses
|
(29,574,491)
|
|
(49,020,236)
|
|
65.8%
|
Income from
operations
|
20,684,028
|
|
22,778,775
|
|
10.1%
|
Other
income:
|
|
|
|
|
|
Interest
income
|
1,377,528
|
|
1,409,645
|
|
2.3%
|
Interest
expenses
|
-
|
|
(490,536)
|
|
0.0%
|
Investment
income
|
1,174,875
|
|
1,383,995
|
|
17.8%
|
Other
income
|
(544,240)
|
|
124,654
|
|
(122.9%)
|
Total other
income
|
2,008,163
|
|
2,427,758
|
|
20.9%
|
Income before taxes
and loss from equity in affiliates
|
22,692,191
|
|
25,206,533
|
|
11.1%
|
Income tax
expense
|
(5,574,108)
|
|
(6,102,929)
|
|
9.5%
|
Income from equity in
affiliates
|
374,732
|
|
1,486,751
|
|
296.8%
|
Net
income
|
17,492,815
|
|
20,590,355
|
|
17.7%
|
Less: net income
(loss) attributable to non-controlling Interests
|
617,382
|
|
(593,848)
|
|
(196.2%)
|
Net income
attributable to Noah shareholders
|
16,875,433
|
|
21,184,203
|
|
25.5%
|
|
|
|
|
|
|
Income per ADS,
basic
|
0. 30
|
|
0.38
|
|
26.7%
|
Income per ADS,
diluted
|
0. 30
|
|
0.37
|
|
23.3%
|
Margin
analysis:
|
|
|
|
|
|
Operating
margin
|
41.2%
|
|
31.7%
|
|
|
Net margin
|
34.8%
|
|
28.7%
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
Basic
|
55,469,460
|
|
56,158,164
|
|
|
Diluted
|
56,373,757
|
|
58,816,048
|
|
|
ADS equivalent
outstanding at end of period
|
55,608,001
|
|
56,201,776
|
|
|
[1] 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
|
|
Change
|
|
March
31,
|
|
March
31,
|
|
|
2014
|
|
2015
|
|
|
|
$
|
|
$
|
|
|
Net
income
|
17,492,815
|
|
20,590,355
|
|
17.7%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(5,362,331)
|
|
338,801
|
|
(106.3%)
|
Fair value fluctuation
of available for sale
investment (after tax)
|
-
|
|
29,729
|
|
-
|
Comprehensive
income
|
12,130,484
|
|
20,958,885
|
|
72.8%
|
Less: Comprehensive
income (loss) attributable to
non-controlling interests
|
315,664
|
|
(526,912)
|
|
(266.9%)
|
Comprehensive
income attributable to Noah
shareholders
|
11,814,820
|
|
21,485,797
|
|
81.9%
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
As
of
|
|
Change
|
|
March 31,
2014
|
|
March 31,
2015
|
|
|
|
|
|
|
|
Number of
registered clients
|
55,519
|
|
74,895
|
|
34.9%
|
Number of
relationship managers
|
604
|
|
834
|
|
38.1%
|
Number of
cities
|
56
|
|
64
|
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Change
|
|
March 31,
2014
|
|
March 31,
2015
|
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of
active clients
|
3,258
|
|
5,275
|
|
61.9%
|
Transaction
value:
|
|
|
|
|
|
Fixed income
products
|
11,120
|
|
12,158
|
|
9.3%
|
Private equity fund
products
|
2,550
|
|
5,380
|
|
111.0%
|
Secondary market
equity fund products
|
928
|
|
6,546
|
|
605.4%
|
Other products,
including mutual fund products, and insurance products
|
372
|
|
502
|
|
35.1%
|
Total transaction
value
|
14,970
|
|
24,586
|
|
64.2%
|
Average transaction
value per client
|
4.59
|
|
4.66
|
|
1.4%
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and
percentages)
|
(unaudited)
|
|
Three months ended
March 31,2014
|
|
Wealth
Management
|
|
Asset
Management
|
|
Internet
|
|
|
|
Business
|
|
Business
|
|
Finance
|
|
Total
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time commissions
|
12,147,348
|
|
-
|
|
-
|
|
12,147,348
|
Recurring service fees
|
7,652,232
|
|
2,907,059
|
|
-
|
|
10,559,291
|
Other service fees
|
413,401
|
|
112,045
|
|
442,517
|
|
967,963
|
Total third-party
revenues
|
20,212,981
|
|
3,019,104
|
|
442,517
|
|
23,674,602
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time commissions
|
7,210,338
|
|
-
|
|
-
|
|
7,210,338
|
Recurring service fees
|
13,614,131
|
|
8,527,062
|
|
-
|
|
22,141,193
|
Other service fees
|
23,441
|
|
84,448
|
|
-
|
|
107,889
|
Total related party
revenues
|
20,847,910
|
|
8,611,510
|
|
-
|
|
29,459,420
|
Total
revenues
|
41,060,891
|
|
11,630,614
|
|
442,517
|
|
53,134,022
|
Less: business taxes and related surcharges
|
(2,266,600)
|
|
(584,122)
|
|
(24,781)
|
|
(2,875,503)
|
Net
revenues
|
38,794,291
|
|
11,046,492
|
|
417,736
|
|
50,258,519
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
Relationship
manager compensation
|
(10,656,902)
|
|
-
|
|
-
|
|
(10,656,902)
|
Other
compensation
|
(7,736,210)
|
|
(5,038,574)
|
|
(639,172)
|
|
(13,413,956)
|
Total compensation and benefits
|
(18,393,112)
|
|
(5,038,574)
|
|
(639,172)
|
|
(24,070,858)
|
Selling expenses
|
(3,697,176)
|
|
(433,935)
|
|
(21,804)
|
|
(4,152,915)
|
General and administrative expenses
|
(2,048,102)
|
|
(1,365,095)
|
|
(292,621)
|
|
(3,705,818)
|
Other operating expenses
|
(459,829)
|
|
(17,417)
|
|
(74)
|
|
(477,320)
|
Government subsidies
|
1,345,468
|
|
1,486,952
|
|
-
|
|
2,832,420
|
Total operating costs
and expenses
|
(23,252,751)
|
|
(5,368,069)
|
|
(953,671)
|
|
(29,574,491)
|
Income from
operations
|
15,541,540
|
|
5,678,423
|
|
(535,935)
|
|
20,684,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and
percentages)
|
(unaudited)
|
|
Three months ended
March 31,2015
|
|
Wealth
Management
|
|
Asset
Management
|
|
Internet
|
|
|
|
Business
|
|
Business
|
|
Finance
|
|
Total
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time commissions
|
19,533,896
|
|
-
|
|
-
|
|
19,533,896
|
Recurring service fees
|
10,297,290
|
|
2,382,376
|
|
-
|
|
12,679,666
|
Other service fees
|
2,895,761
|
|
2,722,289
|
|
1,442,173
|
|
7,060,223
|
Total third-party
revenues
|
32,726,947
|
|
5,104,665
|
|
1,442,173
|
|
39,273,785
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time commissions
|
12,402,293
|
|
-
|
|
-
|
|
12,402,293
|
Recurring service fees
|
12,580,895
|
|
11,178,866
|
|
-
|
|
23,759,761
|
Other service fees
|
-
|
|
-
|
|
22,576
|
|
22,576
|
Total related party
revenues
|
24,983,188
|
|
11,178,866
|
|
22,576
|
|
36,184,630
|
Total
revenues
|
57,710,135
|
|
16,283,531
|
|
1,464,749
|
|
75,458,415
|
Less: business taxes and related surcharges
|
(2,892,158)
|
|
(761,696)
|
|
(5,550)
|
|
(3,659,404)
|
Net
revenues
|
54,817,977
|
|
15,521,835
|
|
1,459,199
|
|
71,799,011
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
|
|
|
Relationship
manager compensation
|
(15,160,193)
|
|
(496,287)
|
|
(358,107)
|
|
(16,014,587)
|
Performance
fee compensation
|
-
|
|
(860,682)
|
|
-
|
|
(860,682)
|
Other
compensation
|
(9,933,935)
|
|
(5,006,543)
|
|
(3,469,594)
|
|
(18,410,072)
|
Total compensation and benefits
|
(25,094,128)
|
|
(6,363,512)
|
|
(3,827,701)
|
|
(35,285,341)
|
Selling expenses
|
(6,105,085)
|
|
(366,767)
|
|
(513,508)
|
|
(6,985,360)
|
General and administrative expenses
|
(2,172,912)
|
|
(2,286,942)
|
|
(1,215,297)
|
|
(5,675,151)
|
Other operating expenses
|
(713,806)
|
|
(102,291)
|
|
(258,287)
|
|
(1,074,384)
|
Total operating costs
and expenses
|
(34,085,931)
|
|
(9,119,512)
|
|
(5,814,793)
|
|
(49,020,236)
|
Income from
operations
|
20,732,046
|
|
6,402,323
|
|
(4,355,594)
|
|
22,778,775
|
Noah Holdings
Limited
|
Reconciliation of GAAP to Non-GAAP
Results
|
(In U.S.
dollars, except for ADS data and percentages)
|
(unaudited)
|
|
Three months ended
|
|
|
|
March
31,
|
|
March
31,
|
|
Change
|
|
|
2014
|
|
2015
|
|
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
|
Net margin
|
34.8%
|
|
28.7%
|
|
|
|
Adjusted net margin
(non-GAAP)*
|
37.2%
|
|
30.5%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
|
16,875,433
|
|
21,184,203
|
|
25.5%
|
|
Adjustment for
share-based compensation
related to:
|
|
|
|
|
|
|
Share options
|
138,524
|
|
455,576
|
|
228.9%
|
|
Restricted shares
|
1,076,917
|
|
846,862
|
|
(21.4%)
|
|
Adjusted net income
attributable to Noah Shareholders (non-GAAP)*
|
18,090,874
|
|
22,486,641
|
|
24.3%
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah shareholders
per ADS,
diluted
|
0.30
|
|
0.37
|
|
23.3%
|
|
Adjusted net income
attributable to Noah
shareholders per ADS, diluted (non-
GAAP)*
|
0.32
|
|
0.38
|
|
18.8%
|
|
*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-first-quarter-of-2015-300084885.html
SOURCE Noah Holdings Limited