SHANGHAI, Nov. 14, 2016 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth
and asset management services provider with a focus on global
services for high net worth individuals and enterprises in
China, today announced its
unaudited financial results for the third quarter of 2016.
Starting from the fourth quarter of 2015, the Company changed
its reporting currency from the U.S. dollar ("US$") to the Renminbi
("RMB"). The change in reporting currency is to better reflect the
Company's performance, as the majority of the Company's operations
are conducted in RMB, to align the Company's reporting currency
with its underlying operations and to reduce the impact that the
increased volatility of the RMB to US$ exchange rate will have on
the Company's reported operating results. This release contains
translations of certain RMB amounts into US$ for convenience
purposes only1. Prior period numbers have been recast
into the new reporting currency.
[1] Unless otherwise
noted, all translations from RMB to U.S. dollars are made at a rate
of RMB6.6685 to US$1.00, the effective noon buying rate for
September 30, 2016 as set forth in the H.10 statistical release of
the Federal Reserve Board.
|
THIRD QUARTER 2016 FINANCIAL HIGHLIGHTS
- Net revenues in the third quarter of 2016
were RMB608.5 million (US$91.2 million), a 16.9% increase from the
corresponding period in 2015.
(RMB
millions,
except
percentages)
|
Q3 2015
|
|
Q3 2015
Segment %
|
|
Q3
2016
|
|
Q3 2016
Segment %
|
|
YoY Change
|
Wealth
management
|
373.6
|
|
71.7%
|
|
474.6
|
|
78.0%
|
|
27.1%
|
Asset
management
|
131.3
|
|
25.2%
|
|
122.5
|
|
20.1%
|
|
(6.7%)
|
Internet
finance
|
15.9
|
|
3.0%
|
|
11.4
|
|
1.9%
|
|
(28.4%)
|
Total net
revenues
|
520.7
|
|
100.0%
|
|
608.5
|
|
100.0%
|
|
16.9%
|
- Income from operations in the third quarter of 2016 was
RMB162.5 million (US$24.4 million), a 7.8% decrease from the
corresponding period in 2015. Excluding government subsides,
operating income in the third quarter of 2016 was RMB119.3 million (US$17.9
million), a 33.8% increase from the corresponding period in
2015.
(RMB
millions,
except
percentages)
|
Q3 2015
|
|
Q3 2015
Segment %
|
|
Q3 2016
|
|
Q3 2016
Segment %
|
|
YoY Change
|
Wealth
management
|
116.5
|
|
66.1%
|
|
143.1
|
|
88.1%
|
|
22.8%
|
Asset
management
|
99.7
|
|
56.5%
|
|
62.4
|
|
38.4%
|
|
(37.4%)
|
Internet
finance
|
(39.9)
|
|
(22.6%)
|
|
(43.0)
|
|
(26.5%)
|
|
7.7%
|
Total income from
operations
|
176.3
|
|
100.0%
|
|
162.5
|
|
100.0%
|
|
(7.8%)
|
- Net income attributable to Noah shareholders in the
third quarter of 2016 was RMB155.2
million (US$23.3 million), a
2.9% increase from the corresponding period in 2015.
- Non-GAAP2 net income attributable to Noah
shareholders in the third quarter of 2016 was RMB179.7 million (US$26.9
million), an 8.7% increase from the corresponding period in
2015.
[2] 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.
|
THIRD QUARTER 2016 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
September 30, 2016 was 130,491, a
47.2% increase from September 30,
2015.
- Total number of active clients3 during the
third quarter of 2016 was 4,337, an 8.0% increase from the
corresponding period in 2015, and a 12.0% decrease from the second
quarter of 2016.
- The aggregate value of wealth management products
distributed by the Company during the third quarter of 2016 was
RMB23.9 billion (US$3.6 billion), an 8.3% decrease from the
corresponding period in 2015, and a 13.8% decrease from the second
quarter of 2016.
Product
type
|
Three months ended
September 30,
|
|
2015
|
|
2016
|
|
(RMB in billions,
except percentages)
|
Fixed income
products
|
7.6
|
|
29.0%
|
|
17.0
|
|
71.2%
|
Private equity
products
|
10.3
|
|
39.4%
|
|
5.4
|
|
22.5%
|
Secondary market
equity fund products
|
4.1
|
|
15.6%
|
|
1.0
|
|
4.3%
|
Other
products
|
4.2
|
|
16.0%
|
|
0.5
|
|
2.0%
|
All
products
|
26.1
|
|
100.0%
|
|
23.9
|
|
100.0%
|
- The average transaction value per
client4 in the third quarter of
2016 was RMB5.5 million (US$0.8 million), a 15.1% decrease from the
corresponding period in 2015, and a 2.1% decrease from the second
quarter of 2016.
- The coverage network included 173 branches and
sub-branches covering 71 cities as of September 30, 2016, down from 175 branches and
sub-branches covering 68 cities as of June
30, 2016, and up from 130 branches and sub-branches covering
65 cities as of September 30,
2015.
- The number of relationship managers was 1,095 as of
September 30, 2016, up from 1,038 as
of September 30, 2015, and little
changed from 1,093 as of June 30,
2016.
[3]"Active clients"
refers to registered clients who purchased wealth management
products distributed by Noah during the period
specified.
[4]"Average transaction value per client" refers to the average
value of wealth management products distributed by Noah that were
purchased by active clients during the period specified.
|
Asset Management Business
The Company's asset management business develops and manages
financial products denominated in both domestic (RMB) and foreign
currencies. These financial products include real estate funds and
real estate funds of funds, private equity funds of funds,
secondary market equity funds of funds and fixed income funds of
funds.
- The total assets under management as of September 30, 2016 were RMB114.8 billion (US$17.2
billion), a 49.2% increase from September 30, 2015 and a 13.5% increase from
June 30, 2016.
Product
type
|
As of June 30,
2016
|
|
Asset
Growth
|
|
Asset
Expiration/
Redemption
|
|
As of
September
30, 2016
|
(RMB billions,
except percentages)
|
Real estate funds and
real
estate funds of funds
|
21.6
|
|
21.40%
|
|
7.9
|
|
4.5
|
|
25
|
|
21.80%
|
Private equity funds
of funds
|
50.4
|
|
49.80%
|
|
4.9
|
|
0.6
|
|
54.7
|
|
47.60%
|
Secondary market
equity funds
of
funds
|
10.6
|
|
10.50%
|
|
0.2
|
|
0.6
|
|
10.3
|
|
9.00%
|
Other fixed income
funds of
funds
|
18.5
|
|
18.30%
|
|
7.5
|
|
1.2
|
|
24.9
|
|
21.60%
|
All
products
|
101.2
|
|
100.00%
|
|
20.6
|
|
6.9
|
|
114.8
|
|
100.00%
|
Internet Finance Business
The Company's internet finance business provides financial
products and services through a proprietary internet finance
platform targeting mass affluent individuals in China.
- The aggregate value of financial products distributed by the
Company through its internet finance platform in the third
quarter of 2016 was RMB4.8 billion
(US$725.8 million), a 114.5% increase
from the third quarter of 2015, and a 16.7% decrease from the
second quarter of 2016.
- Total number of clients as of September 30, 2016 was 346,016, up from 157,460
and 324,918 as of September 30, 2015
and June 30, 2016, respectively.
Mr. Kenny Lam, Group President of
Noah, commented, "We continue to deliver solid operational results
in the context of a structural transition in the domestic economy
and uncertain global capital markets. We are very pleased with what
we have achieved so far this year. Looking forward, we continue to
focus on longer-term value creation for our clients, employees and
shareholders. In the last three quarters, we have continued to
maintain strong business growth and build on our momentum both
domestically in China and
globally. With a new license in Jersey Island, a new team in
Silicon Valley and continued growth in our Hong Kong office, we now have a strategic
global footprint. The capabilities of our asset management
business, Gopher Asset Management, were also boosted with the
arrival of several industry veterans and the strategic support from
Sequoia."
THIRD QUARTER 2016 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2016 were
RMB608.5 million (US$91.2 million), a 16.9% increase from the
corresponding period in 2015, primarily due to increases in
one-time commissions and recurring service fees.
- Wealth Management Business
- Net revenues from one-time commissions for the third
quarter of 2016 were RMB279.3 million
(US$41.9 million), a 59.0% increase
from the corresponding period in 2015. The increase was primarily
due to the change in the product mix.
- Net revenues from recurring service fees for the third
quarter of 2016 were RMB174.8 million
(US$26.2 million), an 11.8% increase
from the corresponding period in 2015. The increase was mainly due
to the cumulative effect of financial products with recurring
service fees previously distributed by the Company.
- Net revenues from performance-based income for the third
quarter of 2016 were RMB1.2 million
(US$0.2 million), compared to
RMB33.9 million in the corresponding
period in 2015, mainly due to a decrease in performance-based
income from secondary market products compared to the corresponding
period in 2015.
- Net revenues from other service fees for the third
quarter of 2016 were RMB19.4 million
(US$2.9 million), up from
RMB7.7 million in the corresponding
period of 2015, reflecting the growth of other businesses within
the wealth management segment.
- Asset Management Business
- Net revenues from recurring service fees for the third
quarter of 2016 were RMB118.6 million
(US$17.8 million), a 16.1% increase
from the corresponding period in 2015. The increase was primarily
due to the increase in assets under management by the Company.
- Net revenues from performance-based income for the third
quarter of 2016 were RMB3.5 million
(US$0.5 million), a 86.6% decrease
compared with the corresponding period in 2015, mainly due to a
decrease in performance-based income from secondary market products
compared to the corresponding period in 2015.
- Internet Finance Business
- Net revenues for the third quarter of 2016 were
RMB11.4 million (US$1.7 million), a 28.4% decrease from the
corresponding period in 2015, primarily due to the Company's
internet finance business' strategic change this year to focus more
on standardized wealth management products.
Operating costs and expenses
Operating costs and expenses include
compensation and benefits, selling expenses, general and
administrative expenses, other operating expenses and government
subsidies. Operating costs and expenses for the third quarter of
2016 were RMB446.0 million
(US$66.9 million), a 29.5% increase
from the corresponding period in 2015. The increase was mainly
driven by the decrease in government subsidies received and growth
in compensation and benefits, higher depreciation and amortization
expenses and increased marketing expenses.
- Wealth Management Business
Operating costs and expenses for the third quarter of
2016 were RMB331.5 million
(US$49.7 million), a 29.0% increase
from the corresponding period in 2015.
- Compensation and benefits includes compensation for
relationship managers and back-office employees. Compensation and
benefits for the third quarter of 2016 were RMB244.8 million (US$36.7
million), a 14.0% increase from the corresponding period in
2015. In the third quarter of 2016, relationship manager
compensation decreased modestly by 2.0% from the corresponding
period in 2015, in line with the relatively stable number of
relationship managers. Other compensation for the third quarter of
2016 increased by 39.3% from the corresponding period in 2015,
primarily driven by a year-over-year increase in compensation
expenses of back-office employees.
- Selling expenses for the third quarter of 2016 were
RMB70.1 million (US$10.5 million), a 13.6% increase from the
corresponding period in 2015, primarily due to an increase in
client marketing initiatives.
- General and administrative expenses for the third
quarter of 2016 were RMB26.7 million
(US$4.0 million), a 44.4% increase
from the corresponding period in 2015, mainly due to an increase in
depreciation expenses and consulting fees.
- Other operating expenses, which include other costs
incurred directly in relation to the Company's revenues, for the
third quarter of 2016 were RMB24.9
million (US$3.7 million), an
increase of 143.8% from the corresponding period in 2015. 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 RMB35.0 million
(US$5.2 million) in government
subsidies for the wealth management business in the third quarter
of 2016, compared to RMB48.2 million
in the corresponding period of 2015.
- Asset Management Business
Operating costs and expenses for the third quarter of
2016 were RMB60.1 million
(US$9.0 million), a 90.2% increase
from the corresponding period in 2015.
- Compensation and benefits include compensation of
investment professionals, fund operation professionals,
institutional sales, and other back-office employees. Compensation
and benefits for the third quarter of 2016 were RMB38.5 million (US$5.8
million), a 22.2% decrease from the corresponding period in
2015. The decrease was primarily due to a decrease in performance
fee compensation related to performance-based income.
- Selling expenses for the third quarter of 2016 were
RMB3.8 million (US$0.6 million), compared with RMB6.6 million in the corresponding period of
2015.
- General and administrative expenses for the third
quarter of 2016 were RMB21.2 million
(US$3.2 million), a 146.2% increase
from the corresponding period in 2015, primarily due to an increase
in depreciation of fixed assets, consulting fees and travelling
expenses.
- Government subsidies represent cash subsidies received
from local governments for general corporate purposes. The Company
received RMB8.2 million (US$1.2 million) in government subsidies for the
asset management business in the third quarter of 2016, compared to
RMB39.0 million in the corresponding
period in 2015.
- Internet Finance Business
Operating costs and expenses for the third quarter of
2016 were RMB54.3 million
(US$8.1 million), a 2.6% decrease
from the corresponding period in 2015. Operating costs and expenses
for the third quarter of 2016 primarily consisted of compensation
and benefits of RMB35.1 million
(US$5.3 million), selling expenses of
RMB3.9 million (US$0.6 million), general and administrative
expenses of RMB6.9 million
(US$1.0 million) and other operating
expenses of RMB8.4 million
(US$1.3 million).
Operating Margin
Operating margin for the third quarter of 2016 was 26.7%
compared to 33.9% for the corresponding period in 2015.
- Operating margin for the wealth management business for
the third quarter of 2016 was 30.1%, compared to 31.2% for the
corresponding period in 2015.
- Operating margin for the asset management
business for the third quarter of 2016 was 50.9%, compared to
75.9% for the corresponding period in 2015.
- Operating loss for internet finance business for
the third quarter of 2016 was RMB43.0
million (US$6.4 million)
compared to RMB39.9 million for the
corresponding period of the prior year.
Income Tax Expenses
Income tax expenses for the third quarter of
2016 were RMB34.0 million
(US$5.1 million), a 12.4% decrease
from the corresponding period in 2015, primarily as a result of a
lower effective tax rate.
Net Income
- Net Income
- Net income attributable to Noah shareholders for the
third quarter of 2016 was RMB155.2
million (US$23.3 million), a
2.9% increase from the corresponding period in 2015.
- Net margin for the third quarter of 2016 was 24.3%,
compared to 29.2% for the corresponding period in 2015.
- Net income per basic and diluted ADS for the third
quarter of 2016 was RMB2.75
(US$0.41) and RMB2.65 (US$0.40),
respectively, compared to RMB2.68 and
RMB2.58, respectively, for the
corresponding period in 2015.
- Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders
for the third quarter of 2016 was RMB179.7
million (US$26.9 million), an
8.7% increase from the corresponding period in 2015.
- Non-GAAP net margin for the third quarter of 2016 was
28.3%, compared to 32.0% for the corresponding period in 2015.
- Non-GAAP net income per diluted ADS for the third
quarter of 2016 was RMB3.05
(US$0.46), compared to RMB2.82 for the corresponding period in
2015.
Balance Sheet and Cash Flow
As of September 30, 2016, the
Company had RMB1,756.9 million
(US$263.5 million) in cash and cash
equivalents, compared to RMB1,788.5
million as of September 30,
2015 and RMB1,398.9 million as
of June 30, 2016.
Cash inflow from the Company's operating activities during the
third quarter of 2016 was RMB92.2
million (US$13.8 million), as
a result of positive net income and a decrease in other current
liabilities.
Cash inflow from the Company's investing activities during the
third quarter of 2016 was RMB256.1
million (US$38.4 million),
primarily due to an increase in proceeds from net sales of
held-to-maturity securities.
Cash inflow from the Company's financing activities for the
third quarter of 2016 was RMB8.6
million (US$1.3 million).
2016 FORECAST
The Company estimates that non-GAAP net income attributable to
Noah shareholders for the full year 2016 will be in the range of
RMB690 million to RMB720 million, an
increase of 14.4% to 19.4% compared to the full year 2015. This
estimate reflects management's current business outlook and is
subject to change.
CONFERENCE CALL
Senior management will host a combined English and Chinese
language conference call to discuss the Company's third quarter
2016 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time
|
Monday, November 14,
2016 at 8:00 p.m., U.S. Eastern Time
Tuesday, November 15,
2016 at 9:00 a.m., Hong Kong Time
|
Dial in
details
|
|
- United States
Toll Free
|
+1-888-346-8982
|
- Mainland China
Toll Free
|
4001-201203
|
- Hong Kong Toll
Free
|
800-905-945
|
- International
|
+1-412-902-4272
|
Conference
Title
|
Noah Holdings Limited
Third Quarter 2016 Earnings Call
|
Participant
Password
|
Noah
Holdings
|
A telephone replay will be available starting one hour after the
end of the conference call until November
21, 2016 at +1-877-344-7529 (US Toll Free) or
+1-412-317-0088 (International Toll). The replay access code is
10095944.
A live and archived webcast of the conference call will be
available at Noah's investor relations website under the News &
Events section 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 impact 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
attributable to Noah shareholders, non-GAAP net 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 and asset management services provider with a focus on
global services for high net worth individuals and enterprises in
China. In the third quarter of
2016, Noah distributed over RMB23.9
billion (US$3.6 billion) of
wealth management products. As of September
30, 2016, Noah had assets under management of RMB114.8 billion (US$17.2
billion).
Noah distributes a wide array of wealth management products,
including fixed income products, private equity fund products,
mutual fund products and insurance products. Noah also develops and
manages financial products denominated in both domestic (RMB) and
foreign currencies, including real estate funds and real estate
funds of funds, private equity funds of funds, secondary market
equity funds of funds and fixed income funds of funds through
Gopher Asset Management. In addition, in June 2014, the Company launched a proprietary
internet finance platform to provide financial products and
services to aspiring high net worth individuals in China. Noah delivers customized financial
solutions to clients through a network of 1,095 relationship
managers across 173 branches and sub-branches in 71 cities in
China, and serves the
international investment needs of its clients through a wholly
owned subsidiary in Hong Kong. The
Company's wealth management business had 130,491 registered clients
as of September 30, 2016.
For more information please visit Noah at
ir.noahwm.com.
FOREIGN CURRENCY TRANSLATION
Effective October 1, 2015, the
Company changed its reporting currency from U.S. dollars ("US$") to
Chinese Renminbi ("RMB"). The change in reporting currency is to
better reflect the Company's performance, as the majority of the
Company's operations are conducted in RMB, to align the Company's
reporting currency with its underlying operations and to reduce the
impact that the increased volatility of the RMB to US$ exchange
rate will have on the Company's reported operating results. Prior
to October 1, 2015, the Company
reported its annual and quarterly consolidated balance sheets and
consolidated statements of income and comprehensive income and
shareholder's equity and cash flows in US$. In this announcement,
the unaudited financial results for the quarter ended September 30, 2016 are stated in RMB. The related
financial statements prior to October 1,
2015 have been recast to reflect RMB as the reporting
currency for comparison to the financial results for the quarter
ended September 30, 2016.
This announcement contains currency conversions of certain RMB
amounts into US$ at specified rates solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB to
US$ are made at a rate of RMB6.6685
to US$1.00, the effective noon buying
rate for September 30, 2016 as set
forth in the H.10 statistical release of the Federal Reserve
Board.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the outlook for 2016 and quotations from management
in this announcement (including regarding the development of Noah's
strategic global footprint, and Gopher's asset management
business), 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
Noah's actual results to differ materially from those contained in
any forward-looking statement, including but not limited to the
following: its goals and strategies; its future business
development, financial condition and results of operations; the
expected growth of the wealth management 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 qualified employees; its ability to stay abreast of
market trends and technological advances; its plans to invest in
research and development to enhance its product choices and service
offerings; competition in its industry in China and internationally; general economic
and business conditions in China;
and its ability to effectively protect its intellectual property
rights and not to infringe on the intellectual property rights of
others. Further information regarding these and other risks is
included in Noah's filings with the U.S. Securities and Exchange
Commission, 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 the applicable
law.
Contacts:
Noah Holdings
Limited
Steve Zeng
Noah Holdings Limited
Tel: +86-21-8035-9221
ir@noahwm.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(In
RMB)
|
(unaudited)
|
|
|
|
|
|
|
As of
|
|
|
|
|
June 30,
2016
|
|
September
30,
2016
|
|
September
30,
2016
|
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,398,912,715
|
|
1,756,854,969
|
|
263,455,795
|
|
|
Restricted
cash
|
|
1,000,000
|
|
1,000,000
|
|
149,959
|
|
|
Short-term
investments
|
|
619,235,058
|
|
494,312,947
|
|
74,126,557
|
|
|
Accounts receivable,
net of allowance for
doubtful accounts of nil at June 30, 2016
and September 30, 2016
|
|
177,944,949
|
|
225,246,430
|
|
33,777,676
|
|
|
Loans
receivable
|
|
135,277,584
|
|
119,965,144
|
|
17,989,824
|
|
|
Amounts due from
related parties
|
|
625,554,748
|
|
504,291,995
|
|
75,623,003
|
|
|
Other current
assets
|
|
823,292,955
|
|
669,257,766
|
|
100,361,066
|
|
|
Total current
assets
|
|
3,781,218,009
|
|
3,770,929,251
|
|
565,483,880
|
|
|
|
|
|
|
|
|
|
|
Long-term
investments
|
|
300,365,549
|
|
322,657,930
|
|
48,385,384
|
|
Investment in
affiliates
|
|
479,367,925
|
|
458,513,861
|
|
68,758,171
|
|
Property and
equipment, net
|
|
214,012,805
|
|
219,148,582
|
|
32,863,250
|
|
Non-current deferred
tax assets
|
|
43,693,665
|
|
43,574,044
|
|
6,534,310
|
|
Other non-current
assets
|
|
38,001,361
|
|
36,645,231
|
|
5,495,273
|
Total
Assets
|
|
4,856,659,314
|
|
4,851,468,899
|
|
727,520,267
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
|
411,009,653
|
|
422,789,431
|
|
63,400,979
|
|
|
Income tax
payable
|
|
54,410,981
|
|
29,871,285
|
|
4,479,461
|
|
|
Amounts due to
related parties
|
|
1,060
|
|
1,060
|
|
159
|
|
|
Deferred
revenues
|
|
68,069,246
|
|
82,739,667
|
|
12,407,538
|
|
|
Deferred tax
liabilities
|
|
1,696,765
|
|
1,699,213
|
|
254,812
|
|
|
Other current
liabilities
|
|
756,454,329
|
|
544,277,187
|
|
81,619,133
|
|
|
Total current
liabilities
|
|
1,291,642,034
|
|
1,081,377,843
|
|
162,162,082
|
|
|
|
|
|
|
|
|
|
|
Convertible
notes
|
|
531,672,000
|
|
533,480,000
|
|
80,000,000
|
|
Other non-current
liabilities
|
|
97,410,830
|
|
110,310,153
|
|
16,541,974
|
|
Total
Liabilities
|
|
1,920,724,864
|
|
1,725,167,996
|
|
258,704,056
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
2,935,934,450
|
|
3,126,300,903
|
|
468,816,211
|
Total Liabilities
and Equity
|
|
4,856,659,314
|
|
4,851,468,899
|
|
727,520,267
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB, except
for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2015
|
|
2016
|
|
2016
|
|
|
Revenues:
|
RMB
|
|
RMB
|
|
USD
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions [5]
|
56,763,084
|
|
208,917,217
|
|
31,328,967
|
|
268.1%
|
Recurring service fees
|
105,074,484
|
|
113,230,422
|
|
16,979,894
|
|
7.8%
|
Performance-based
income
|
42,148,542
|
|
3,257,890
|
|
488,549
|
|
(92.3%)
|
Other
service fees
|
24,359,088
|
|
30,903,043
|
|
4,634,182
|
|
26.9%
|
Total third-party
revenues
|
228,345,198
|
|
356,308,572
|
|
53,431,592
|
|
56.0%
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions [5]
|
132,757,255
|
|
72,276,175
|
|
10,838,446
|
|
(45.6%)
|
Recurring service fees
|
168,210,332
|
|
181,689,408
|
|
27,245,919
|
|
8.0%
|
Performance-based income
|
21,387,456
|
|
1,466,592
|
|
219,928
|
|
(93.1%)
|
Other
service fees
|
-
|
|
32,201
|
|
4,829
|
|
0.0%
|
Total related party
revenues
|
322,355,043
|
|
255,464,376
|
|
38,309,121
|
|
(20.8%)
|
Total
revenues
|
550,700,241
|
|
611,772,948
|
|
91,740,714
|
|
11.1%
|
Less:
business taxes and related surcharges
|
(30,023,085)
|
|
(3,313,607)
|
|
(496,904)
|
|
(89.0%)
|
Net
revenues
|
520,677,156
|
|
608,459,341
|
|
91,243,809
|
|
16.9%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(135,354,098)
|
|
(130,888,784)
|
|
(19,627,920)
|
|
(3.3%)
|
Performance fee compensation
|
(9,743,166)
|
|
-
|
|
-
|
|
(100.0%)
|
Other Compensations
|
(151,559,147)
|
|
(187,513,854)
|
|
(28,119,345)
|
|
23.7%
|
Total compensation
and benefits
|
(296,656,411)
|
|
(318,402,638)
|
|
(47,747,265)
|
|
7.3%
|
Selling
expenses
|
(75,232,257)
|
|
(77,845,036)
|
|
(11,673,545)
|
|
3.5%
|
General
and administrative expenses
|
(39,316,255)
|
|
(54,879,165)
|
|
(8,229,612)
|
|
39.6%
|
Other
operating expenses
|
(20,333,149)
|
|
(38,039,746)
|
|
(5,704,393)
|
|
87.1%
|
Government subsidies
|
87,150,120
|
|
43,171,770
|
|
6,473,985
|
|
(50.5%)
|
Total operating costs
and expenses
|
(344,387,952)
|
|
(445,994,815)
|
|
(66,880,830)
|
|
29.5%
|
Income from
operations
|
176,289,204
|
|
162,464,526
|
|
24,362,979
|
|
(7.8%)
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
10,165,850
|
|
11,835,729
|
|
1,774,871
|
|
16.4%
|
Interest
expenses
|
(4,452,782)
|
|
(4,890,660)
|
|
(733,397)
|
|
9.8%
|
Investment income
|
6,160,886
|
|
4,503,068
|
|
675,274
|
|
(26.9%)
|
Other
income (expense)
|
(1,860,839)
|
|
2,494,937
|
|
374,138
|
|
(234.1%)
|
Total other
income
|
10,013,115
|
|
13,943,074
|
|
2,090,886
|
|
39.2%
|
Income before taxes
and loss from equity in affiliates
|
186,302,319
|
|
176,407,600
|
|
26,453,865
|
|
(5.3%)
|
Income tax
expense
|
(38,773,732)
|
|
(33,973,826)
|
|
(5,094,673)
|
|
(12.4%)
|
Income from equity in
affiliates
|
4,537,438
|
|
5,134,220
|
|
769,921
|
|
13.2%
|
Net
income
|
152,066,025
|
|
147,567,994
|
|
22,129,114
|
|
(3.0%)
|
Less: net income(
loss) attributable to non-controlling Interests
|
1,208,613
|
|
(7,643,005)
|
|
(1,146,136)
|
|
(732.4%)
|
Net income
attributable to Noah Shareholders
|
150,857,412
|
|
155,210,999
|
|
23,275,249
|
|
2.9%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
2.68
|
|
2.75
|
|
0.41
|
|
2.6%
|
Income per ADS,
diluted
|
2.58
|
|
2.65
|
|
0.40
|
|
2.7%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
33.9%
|
|
26.7%
|
|
26.7%
|
|
|
Net margin
|
29.2%
|
|
24.3%
|
|
24.3%
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
|
|
Basic
|
56,230,450
|
|
56,382,358
|
|
56,382,358
|
|
|
Diluted
|
60,193,378
|
|
60,444,632
|
|
60,444,632
|
|
|
ADS equivalent
outstanding at end of period
|
56,021,823
|
|
56,432,189
|
|
56,432,189
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs
[5]To realign the
Company's services provided under different business segments,
starting from the first quarter of 2016,
the Company reclassifies some of the revenues under "other service
fees" to "one-time commissions".
Presentation of prior periods has been reclassified to reflect the
same criteria.
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(In
RMB)
(unaudited)
|
|
|
|
|
Three months
ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2015
|
|
2016
|
|
2016
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Net
income
|
152,066,025
|
|
147,567,994
|
|
22,129,114
|
|
(3.0%)
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign
currency translation
adjustments
|
2,783,528
|
|
(627,030)
|
|
(94,029)
|
|
(122.5%)
|
Fair value fluctuation of
available for
sale Investment (after tax)
|
1,369,127
|
|
10,326,846
|
|
1,548,601
|
|
654.3%
|
Comprehensive
income
|
156,218,680
|
|
157,267,810
|
|
23,583,686
|
|
0.7%
|
Less: Comprehensive
income (loss)
attributable to non-controlling interests
|
1,220,454
|
|
(7,682,579)
|
|
(1,152,070)
|
|
(729.5%)
|
Comprehensive
income attributable to
Noah Shareholders
|
154,998,226
|
|
164,950,389
|
|
24,735,756
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
|
As
of
|
|
Change
|
|
September 30,
2015
|
|
September 30,
2016
|
|
|
|
|
|
|
|
Number of
registered clients
|
88,663
|
|
130,491
|
|
47.2%
|
Number of
relationship managers
|
1,038
|
|
1,095
|
|
5.5%
|
Number of
cities under coverage
|
65
|
|
71
|
|
9.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Change
|
|
September 30,
2015
|
|
September 30,
2016
|
|
|
(in millions of RMB,
except number of active clients and
percentages)
|
Number of
active clients
|
4,014
|
|
4,337
|
|
8.0%
|
Transaction
value:
|
|
|
|
|
|
Fixed
income products
|
7,553
|
|
17,027
|
|
125.4%
|
Private
equity fund products
|
10,257
|
|
5,390
|
|
(47.5%)
|
Secondary
market equity fund
products
|
4,076
|
|
1,018
|
|
(75.0%)
|
Other
products
|
4,173
|
|
470
|
|
(88.7%)
|
Total
transaction value
|
26,058
|
|
23,904
|
|
(8.3%)
|
Average
transaction value per client
|
6.49
|
|
5.51
|
|
(15.1%)
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In RMB,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
Three months ended
September 30, 2016
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Finance
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
208,687,264
|
|
229,953
|
|
-
|
|
208,917,217
|
Recurring service
fees
|
99,738,342
|
|
13,492,080
|
|
-
|
|
113,230,422
|
Performance-based
income
|
1,145,820
|
|
2,112,070
|
|
-
|
|
3,257,890
|
Other service
fees
|
19,437,383
|
|
-
|
|
11,465,660
|
|
30,903,043
|
Total third-party
revenues
|
329,008,809
|
|
15,834,103
|
|
11,465,660
|
|
356,308,572
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
72,150,822
|
|
125,353
|
|
-
|
|
72,276,175
|
Recurring service
fees
|
76,047,258
|
|
105,642,150
|
|
-
|
|
181,689,408
|
Performance-based
income
|
56,626
|
|
1,409,966
|
|
-
|
|
1,466,592
|
Other service
fees
|
32,201
|
|
-
|
|
-
|
|
32,201
|
Total related party
revenues
|
148,286,907
|
|
107,177,469
|
|
-
|
|
255,464,376
|
Total
revenues
|
477,295,716
|
|
123,011,572
|
|
11,465,660
|
|
611,772,948
|
Less: business taxes
and related surcharges
|
(2,691,437)
|
|
(514,122)
|
|
(108,048)
|
|
(3,313,607)
|
Net
revenues
|
474,604,279
|
|
122,497,450
|
|
11,357,612
|
|
608,459,341
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(128,869,385)
|
|
(2,865)
|
|
(2,016,534)
|
|
(130,888,784)
|
Other
compensation
|
(115,907,543)
|
|
(38,530,153)
|
|
(33,076,158)
|
|
(187,513,854)
|
Total compensation and
benefits
|
(244,776,928)
|
|
(38,533,018)
|
|
(35,092,692)
|
|
(318,402,638)
|
Selling
expenses
|
(70,124,234)
|
|
(3,834,303)
|
|
(3,886,499)
|
|
(77,845,036)
|
General and
administrative expenses
|
(26,742,443)
|
|
(21,190,793)
|
|
(6,945,929)
|
|
(54,879,165)
|
Other operating
expenses
|
(24,889,315)
|
|
(4,743,474)
|
|
(8,406,957)
|
|
(38,039,746)
|
Government
subsidies
|
34,991,770
|
|
8,180,000
|
|
-
|
|
43,171,770
|
Total operating costs
and expenses
|
(331,541,150)
|
|
(60,121,588)
|
|
(54,332,077)
|
|
(445,994,815)
|
Income from
operations
|
143,063,129
|
|
62,375,862
|
|
(42,974,465)
|
|
162,464,526
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In RMB, except
for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
Three months ended
September 30, 2015
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Finance
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
56,585,584
|
|
177,500
|
|
-
|
|
56,763,084
|
Recurring service
fees
|
83,687,581
|
|
21,386,903
|
|
-
|
|
105,074,484
|
Performance-based
income
|
36,020,649
|
|
6,127,893
|
|
-
|
|
42,148,542
|
Other service
fees
|
8,157,707
|
|
-
|
|
16,201,381
|
|
24,359,088
|
Total third-party
revenues
|
184,451,521
|
|
27,692,296
|
|
16,201,381
|
|
228,345,198
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
129,946,983
|
|
2,810,272
|
|
-
|
|
132,757,255
|
Recurring service
fees
|
82,459,674
|
|
85,750,658
|
|
-
|
|
168,210,332
|
Performance-based
income
|
-
|
|
21,387,456
|
|
-
|
|
21,387,456
|
Total related party
revenues
|
212,406,657
|
|
109,948,386
|
|
-
|
|
322,355,043
|
Total
revenues
|
396,858,178
|
|
137,640,682
|
|
16,201,381
|
|
550,700,241
|
Less: business taxes
and related surcharges
|
(23,307,579)
|
|
(6,373,443)
|
|
(342,063)
|
|
(30,023,085)
|
Net
revenues
|
373,550,599
|
|
131,267,239
|
|
15,859,318
|
|
520,677,156
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(131,546,632)
|
|
(1,425,329)
|
|
(2,382,137)
|
|
(135,354,098)
|
Performance Fee
Compensation
|
-
|
|
(9,743,166)
|
|
-
|
|
(9,743,166)
|
Other
compensation
|
(83,202,184)
|
|
(38,328,776)
|
|
(30,028,187)
|
|
(151,559,147)
|
Total compensation and
benefits
|
(214,748,816)
|
|
(49,497,271)
|
|
(32,410,324)
|
|
(296,656,411)
|
Selling
expenses
|
(61,703,498)
|
|
(6,556,330)
|
|
(6,972,429)
|
|
(75,232,257)
|
General and
administrative expenses
|
(18,522,118)
|
|
(8,606,916)
|
|
(12,187,221)
|
|
(39,316,255)
|
Other operating
expenses
|
(10,209,111)
|
|
(5,927,349)
|
|
(4,196,689)
|
|
(20,333,149)
|
Government
subsidies
|
48,165,002
|
|
38,985,118
|
|
-
|
|
87,150,120
|
Total operating costs
and expenses
|
(257,018,541)
|
|
(31,602,748)
|
|
(55,766,663)
|
|
(344,387,952)
|
Income from
operations
|
116,532,058
|
|
99,664,491
|
|
(39,907,345)
|
|
176,289,204
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for ADS data and percentages)
|
(unaudited)
|
|
Three months ended
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2015
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Net margin
|
29.2%
|
|
24.3%
|
|
|
Adjusted net margin
(non-
GAAP)*
|
32.0%
|
|
28.3%
|
|
|
|
|
|
|
|
|
Net income
attributable to
Noah Shareholders
|
150,857,412
|
|
155,210,999
|
|
2.9%
|
Adjustment for
share-based
compensation related to:
|
|
|
|
|
|
Share options
|
6,272,232
|
|
5,409,717
|
|
(13.8%)
|
Restricted shares
|
8,247,953
|
|
19,081,691
|
|
131.4%
|
Adjusted net
income
attributable to Noah
Shareholders (non-GAAP)*
|
165,377,597
|
|
179,702,407
|
|
8.7%
|
|
|
|
|
|
|
Net income
attributable to
Noah Shareholders per ADS,
diluted
|
2.58
|
|
2.65
|
|
2.7%
|
Adjusted net
income
attributable to Noah
Shareholders per ADS,
diluted (non-GAAP)*
|
2.82
|
|
3.05
|
|
8.2%
|
|
|
|
|
|
|
*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-third-quarter-of-2016-300362088.html
SOURCE Noah Holdings Limited