SHANGHAI, May 15, 2017 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth
and asset management service provider in China with a focus on global investment and
asset allocation services for high net worth individuals and
enterprises, today announced its unaudited financial results for
the first quarter of 2017.
FIRST QUARTER 2017 FINANCIAL HIGHLIGHTS
- Net revenues in the first quarter of 2017
were RMB713.2 million (US$103.6 million), a 17.5% increase from the
corresponding period in 2016.
(RMB
millions,
except
percentages)
|
Q1 2016
|
|
Q1
2017
|
|
YoY Change
|
Wealth
management
|
463.6
|
|
562.0
|
|
21.2%
|
Asset
management
|
137.7
|
|
126.4
|
|
(8.2%)
|
Internet financial
services
|
5.8
|
|
24.8
|
|
326.7%
|
Total net
revenues
|
607.2
|
|
713.2
|
|
17.5%
|
- Income from operations in the first quarter of 2017 was
RMB256.8 million (US$37.3 million), a 13.0% increase from the
corresponding period in 2016.
(RMB
millions,
except
percentages)
|
Q1 2016
|
|
Q1 2017
|
|
YoY Change
|
Wealth
management
|
133.2
|
|
209.2
|
|
57.1%
|
Asset
management
|
146.6
|
|
78.7
|
|
(46.3%)
|
Internet financial
services
|
(52.5)
|
|
(31.1)
|
|
N/A
|
Total income from
operations
|
227.3
|
|
256.8
|
|
13.0%
|
- Net income attributable to Noah shareholders in the
first quarter of 2017 was RMB217.0
million (US$31.5 million), a
9.0% increase from the corresponding period in 2016.
- Non-GAAP[1] net income attributable to
Noah shareholders in the first quarter of 2017 was RMB237.2 million (US$34.5
million), a 10.9% increase from the corresponding period in
2016.
[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.
|
FIRST QUARTER 2017 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business offers wealth
management products and provides comprehensive financial services
to high net worth individuals, enterprise and institutional clients
in China. Through our wealth
management business, we primarily distribute onshore and offshore
fixed income products, private equity products, secondary market
products and insurance products.
- The total number of registered clients as of
March 31, 2017 was 148,505, a 40.7%
increase from March 31,
2016.
- The total number of active clients[2] during
the first quarter of 2017 was 4,362, an 11.8% decrease from the
corresponding period in 2016.
- The aggregate value of wealth management products
distributed by the Company during the first quarter of 2017 was
RMB32.7 billion (US$4.8 billion), a 31.7% increase from the
corresponding period in 2016.
Product
type
|
Three months ended
March 31,
|
|
2016
|
2017
|
|
(RMB in billions,
except percentages)
|
Fixed
income products
|
16.1
|
65.1%
|
22.1
|
67.6%
|
Private equity
products
|
6.1
|
24.4%
|
9.1
|
27.8%
|
Secondary market
equity fund products
|
2.3
|
9.3%
|
1.1
|
3.4%
|
Other
products
|
0.3
|
1.2%
|
0.4
|
1.2%
|
All
products
|
24.8
|
100.0%
|
32.7
|
100.0%
|
- The average transaction value per
client[3] in the first quarter of
2017 was RMB7.5 million (US$1.1 million), a 49.4% increase from the
corresponding period in 2016.
- The coverage network included 199 branches and
sub-branches covering 74 cities as of March
31, 2017, up from 185 branches and sub-branches covering 71
cities as of December 31, 2016, and
166 branches and sub-branches covering 68 cities as of March 31, 2016.
- The number of relationship managers was 1,251 as of
March 31, 2017, up from 1,169 and
1,137 as of December 31, 2016 and
March 31, 2016, respectively.
[2]
"Active clients" refers to 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 were purchased by active clients during the period
specified.
|
Asset Management Business
Gopher Asset Management ("Gopher"), the Company's subsidiary, is
a leading alternative asset manager in China. Gopher develops and manages private
equity, real estate, secondary market and other investments
denominated in both Renminbi and foreign currencies.
- The total assets under management as of March 31, 2017 were RMB129.6 billion (US$18.8
billion), a 7.1% increase from December 31, 2016 and a 36.9% increase from
March 31, 2016.
Product
type
|
As of December
31, 2016
|
Asset
Growth
|
Asset
Expiration/
Redemption
|
As of March
31,
2017
|
|
(RMB billions,
except percentages)
|
Real estate
investments
|
23.2
|
19.2%
|
9.5
|
12.9
|
19.8
|
15.3%
|
Private equity
investments
|
61.7
|
51.0%
|
8.6
|
0.6
|
69.6
|
53.8%
|
Secondary market
investments
|
8.3
|
6.9%
|
0.1
|
1.5
|
6.9
|
5.3%
|
Other
investments
|
27.8
|
23.0%
|
10.1
|
4.7
|
33.2
|
25.6%
|
All
products
|
120.9
|
100.0%
|
28.2
|
19.6
|
129.6
|
100.0%
|
Internet Financial Service Business
The Company's internet financial service business provides
financial products and services through a proprietary internet
financial service platform mainly targeting mass affluent
individuals in China.
- The aggregate value of financial products distributed by the
Company through its internet financial service platform in the
first quarter of 2017 was RMB7.1
billion (US$1.1 billion), a
273.4% increase from the first quarter of 2016.
- The total number of clients through the Company's internet
financial service platform as of March
31, 2017 was 425,708, up from 402,815 and 294,796 as of
December 31, 2016 and March 31, 2016, respectively.
Mr. Kenny Lam, Group President of
Noah, commented, "We started 2017 with a strong first quarter and
continued momentum. Our wealth management business continues
to grow rapidly with a broader range of high quality services and
products, which led to higher client loyalty. Our asset
management business is in the midst of building new capabilities
and our new businesses are beginning to deliver impactful
results. We are quite confident of a successful 2017 and will
continue to deliver on our long-term strategic objectives."
FIRST QUARTER 2017 FINANCIAL RESULTS
Net Revenues
Net revenues for the first quarter of 2017 were
RMB713.2 million (US$103.6 million), a 17.5% increase from the
corresponding period in 2016, primarily due to increases in
one-time commission and recurring service fee revenues.
- Wealth Management Business
-
- Net revenues from one-time commissions for the
first quarter of 2017 were RMB342.3
million (US$49.7 million), a
24.5% increase from the corresponding period in 2016. The increase
was primarily due to an increase in the aggregate value of the
wealth management products distributed by the Company.
- Net revenues from recurring service fees for
the first quarter of 2017 were RMB199.8
million (US$29.0 million), an
18.5% increase from the corresponding period in 2016. The increase
was primarily due to the cumulative effect of wealth management
products with recurring service fees previously distributed by the
Company.Net revenues from
performance-based income for the first quarter of 2017 were
RMB11.8 million (US$1.7 million), a 74.4% increase from the
corresponding period in 2016, primarily due to a year-over-year
increase in performance-based income from private equity products
distributed in previous periods by the Company. Net
revenues from other service fees for the first quarter of 2017
were RMB8.1 million (US$1.2 million), a 39.9% decrease from the
corresponding period in 2016,primarily due to the reclassification
of some of the other service fee income starting from the second
quarter of 2016.
- Asset Management Business
-
- Net revenues from recurring service fees for the
first quarter of 2017 were RMB125.5
million (US$18.2 million), a
1.4% decrease from the corresponding period in 2016, primarily due
to lower average management fee rates of fund-of-funds products
managed in the first quarter of 2017 than those of the direct real
estate investment products which had matured since a year
ago. Net revenues from performance-based
income for the first quarter of 2017 were RMB0.7 million (US$0.1
million), compared to RMB9.1
million in the corresponding period in 2016, primarily due
to a decrease in performance-based income from secondary market
products.
Internet Financial Service Business
- Net revenues for the first quarter of 2017 were
RMB24.8 million (US$3.6 million), a 326.7% increase from the
corresponding period in 2016, primarily due to increased volumes of
financial products distributed by the internet financial service
platform compared to the corresponding period in 2016.
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 first quarter of
2017 were RMB456.3 million
(US$66.3 million), a 20.1% increase
from the corresponding period in 2016. The increase was primarily
due to increased compensation costs and decreased government
subsidies.
- Wealth Management Business
Operating costs and
expenses for the first quarter of 2017 were RMB352.8 million (US$51.3
million), a 6.8% increase from the corresponding period in
2016.
-
- Compensation and benefits includes compensation
for relationship managers and back-office employees. Compensation
and benefits for the first quarter of 2017 were RMB265.9 million (US$38.6
million), a 12.7% increase from the corresponding period in
2016. In the first quarter of 2017, relationship manager
compensation increased by 9.9% from the corresponding period in
2016, as a result of a larger number of relationship managers.
Other compensation for the first quarter of 2017 increased by 16.4%
from the corresponding period in 2016, primarily due to an increase
in the number of back-office employees.
Selling expenses for the first quarter of 2017
were RMB54.6 million (US$7.9 million), a 7.1% decrease from the
corresponding period in 2016, primarily due to lower expenses for
general marketing. General and administrative
expenses for the first quarter of 2017 were RMB35.3 million (US$5.1
million), an 43.2% increase from the corresponding period in
2016, primarily due to higher expenses related to promotion
conferences held during the first quarter.
Other operating expenses, which include other
costs incurred directly in relation to the wealth management
business' revenues, were RMB12.4
million (US$1.8 million) for
the first quarter of 2017, an increase of 11.9% from the
corresponding period in 2016. Government
subsidies represent cash subsidies received from local
governments for general corporate purposes. Our wealth management
business received RMB15.4 million
(US$2.2 million) in government
subsidies in the first quarter of 2017, compared to RMB0.1 million in the corresponding period of
2016
- Asset Management Business
Operating costs and
expenses for the first quarter of 2017 were RMB47.6 million (US$6.9million), excluding government subsidies,
compared to RMB60.0 million in the
corresponding period of 2016, an increase of 10.4%.
-
- Compensation and benefits include compensation of
investment professionals, fund operation staff, institutional
sales, and other back-office employees. Compensation and benefits
for the first quarter of 2017 were RMB39.8
million (US$5.8 million), an
8.4% decrease from the corresponding period in 2016. The decrease
was primarily due to less performance-based compensation paid to
fund managers as lower performance-based income was recognized in
the first quarter of 2017 compared with the corresponding period in
2016. Selling expenses for the first
quarter of 2017 were RMB2.1 million
(US$0.3 million), compared with
RMB1.9 million in the corresponding
period of 2016, an increase of 9.0%, primarily due to an increase
in expenses related to external consulting services.
General and administrative expenses for the
first quarter of 2017 were RMB15.3
million (US$2.2 million), a
23.5% increase from the corresponding period in 2016, primarily due
to an increase in expenses related to conferencing services
incurred for during the quarter. Government
subsidies represent cash subsidies received from local
governments for general corporate purposes. The asset management
business received RMB18.5 million
(US$2.7 million) in government
subsidies in the first quarter of 2017, compared to RMB68.9 million in the corresponding period in
2016
- Internet Financial Service Business
Operating
costs and expenses for the first quarter of 2017 were
RMB55.9 million (US$8.1 million), a 4.1% decrease from the
corresponding period in 2016. Operating costs and expenses for the
first quarter of 2017 primarily consisted of compensation and
benefits of RMB35.0 million
(US$5.1 million), selling expenses of
RMB4.0 million (US$0.6 million), general and administrative
expenses of RMB9.1 million
(US$1.3 million) and other operating
expenses of RMB7.9 million
(US$1.2 million).
Operating Margin
Operating margin for the first quarter of 2017 was 36.0%,
relatively stable compared with 37.4% for the corresponding period
in 2016.
- Operating margin for the wealth management business for
the first quarter of 2017 increased to 36.7% from 28.7% for the
corresponding period in 2016.
- Operating margin for the asset management
business for the first quarter of 2017 was 62.3%, compared to
106.5% for the corresponding period in 2016. The decrease was
primarily due to the RMB18.5 million
(US$2.7 million) in government
subsidies received in the first quarter of 2017, down from
RMB68.9 million in the first quarter
of 2016.
- Operating loss for internet financial service
business for the first quarter of 2017 was RMB31.1 million (US$4.5
million), down from RMB52.5
million for the corresponding period of the prior
year.
Income Tax Expenses
Income tax expenses for the first quarter of
2017 were RMB61.9 million
(US$9.0 million), a 16.0% increase
from the corresponding period in 2016. The increase was primarily
due to the combined impact of higher taxable income and a higher
effective tax rate.
Net Income
- Net Income
-
- Net income for the first quarter of 2017 was
RMB215.7 million (US$31.3 million), a 12.0% increase from the
corresponding period in 2016. Net margin
for the first quarter of 2017 was 30.2%, compared to 31.7% for the
corresponding period in 2016. Net
income attributable to Noah shareholders for the first quarter
of 2017 was RMB217.0 million
(US$31.5 million), a 9.0% increase
from the corresponding period in 2016. Net
margin attributable to Noah shareholders for the first
quarter of 2017 was 30.4%, compared to 32.8% for the corresponding
period in 2016. Net income
attributable to Noah shareholders per basic and diluted ADS for
the first quarter of 2017 was RMB3.85
(US$0.56) and RMB3.69 (US$0.54),
respectively, compared to RMB3.54 and
RMB3.38, respectively, for the
corresponding period in
2016
- Non-GAAP Net Income Attributable to Noah
Shareholders
-
- Non-GAAP net income attributable to Noah
shareholders for the first quarter of 2017 was RMB237.2 million (US$34.5
million), a 10.9% increase from the corresponding period in
2016. Non-GAAP net margin attributable
to Noah shareholders for the first quarter of 2017 was 33.3%,
compared to 35.2% for the corresponding period in 2016.
Non-GAAP net income attributable to Noah
shareholders per diluted ADS for the first quarter of 2017 was
RMB4.03 (US$0.59), as compared to RMB3.63 for the corresponding period in
2016.
Balance Sheet and Cash Flow
As of March 31, 2017, the Company
had RMB2,609.2 million (US$379.1 million) in cash and cash equivalents,
compared to RMB2,982.5 million as of
December 31, 2016 and RMB2,480.3 million as of March 31, 2016.
Cash inflow from the Company's operating activities during the
first quarter of 2017 was RMB24.6
million (US$3.6 million),
compared to income from operations of RMB227.3 million, mainly due to the payout of the
annual bonus and a temporary increase in other current assets.
Cash outflow from the Company's investing activities during the
first quarter of 2017 was RMB363.9
million (US$52.9 million),
primarily due to increases in short-term and long-term investments
to improve cash usage and capital management.
Cash outflow from the Company's financing activities was
RMB25.7 million (US$3.7 million) in the first quarter of 2017,
during which the Company's shares were bought back under an
authorized share repurchase plan.
On July 8, 2016, the Company's
board of directors authorized a share repurchase program of up to
US$50 million worth of its issued and
outstanding ADSs over the course of one year. As of March 31, 2017, the Company had repurchased
223,250 ADSs for approximately US$5.1
million under this program, inclusive of transaction
charges, at an average effective price of US$22.74.
2017 FORECAST
The Company estimates that non-GAAP net income attributable to
Noah shareholders for the full year 2017 will be in the range of
RMB825 million to RMB860 million, an
increase of 14.1% to 18.9% compared to the full year 2016. 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 first quarter
2017 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time
|
Monday, May 15, 2017
at 8:00 p.m., U.S. Eastern Time
Tuesday, May 16, 2017
at 8:00 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
First Quarter 2017 Earnings Call
|
Participant
Password
|
Noah
Holdings
|
A telephone replay will be available starting one hour after the
end of the conference call until May 22,
2017 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088
(International Toll). The replay access code is 10106560.
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
attributable to Noah shareholders 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 attributable to Noah shareholders
per diluted ADS and non-GAAP net margin attributable to Noah
shareholders 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 service provider in China with a focus on global investment and
asset allocation services for high net worth individuals and
enterprises. In the first quarter of 2017, Noah distributed
RMB32.7 billion (US$4.8 billion) of wealth management products.
Through our subsidiary, Gopher Asset Management, we had assets
under management of RMB129.6 billion
(US$18.8 billion) as of March 31, 2017.
Our wealth management business primarily distributes onshore and
offshore fixed income products, private equity products, secondary
market products and insurance products. Noah delivers customized
financial solutions to clients through a network of 1,251
relationship managers across 199 branches and sub-branches in 74
cities in China, and serves the
international investment needs of its clients through wholly owned
subsidiaries in Hong Kong and
the United States. The Company's
wealth management business had 148,505 registered clients as of
March 31, 2017. Gopher Asset
Management is a leading alternative asset manager in China, and manages private equity, real
estate, secondary market and other investments denominated in both
Renminbi and foreign currencies. We also provide internet financial
services through a proprietary internet financial service platform
targeting mass affluent individuals in China.
For more information, please visit Noah at
ir.noahwm.com .
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
quarter ended March 31, 2017 are
stated in RMB. This announcement contains currency conversions of
certain RMB amounts into US$ at specified rates solely for the
convenience of the reader. Unless otherwise noted, all translations
from RMB to US$ are made at a rate of RMB6.8832 to US$1.00, the effective noon buying rate for
March 31, 2017 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 2017 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
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
|
(unaudited)
|
|
|
|
|
As of
|
|
|
|
|
December
31,
2016
|
|
March 31,
2017
|
|
March 31,
2017
|
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,982,509,565
|
|
2,609,189,604
|
|
379,066,365
|
|
|
Restricted
cash
|
|
1,000,000
|
|
1,000,000
|
|
145,281
|
|
|
Short-term
investments
|
|
299,174,435
|
|
410,236,781
|
|
59,599,718
|
|
|
Accounts receivable,
net of allowance for
doubtful accounts of nil at December 31,
2016 and March 31, 2017
|
|
204,131,815
|
|
206,698,310
|
|
30,029,392
|
|
|
Loans
receivable
|
|
113,919,956
|
|
115,878,152
|
|
16,834,924
|
|
|
Amounts due from
related parties
|
|
438,839,542
|
|
599,928,166
|
|
87,158,323
|
|
|
Factoring
receivables
|
|
604,176,000
|
|
573,674,100
|
|
83,344,099
|
|
|
Other current
assets
|
|
88,778,883
|
|
305,948,259
|
|
44,448,550
|
|
|
Total current
assets
|
|
4,732,530,196
|
|
4,822,553,372
|
|
700,626,652
|
|
|
|
|
|
|
|
|
|
|
Long-term
investments
|
|
346,920,327
|
|
465,155,852
|
|
67,578,430
|
|
Investment in
affiliates
|
|
539,176,511
|
|
543,279,802
|
|
78,928,377
|
|
Property and
equipment, net
|
|
243,489,512
|
|
246,843,188
|
|
35,861,690
|
|
Non-current deferred
tax assets
|
|
55,726,799
|
|
52,577,197
|
|
7,638,482
|
|
Other non-current
assets
|
|
38,646,355
|
|
38,727,876
|
|
5,626,435
|
Total
Assets
|
|
5,956,489,700
|
|
6,169,137,287
|
|
896,260,066
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
|
555,228,116
|
|
384,234,867
|
|
55,822,127
|
|
|
Income tax
payable
|
|
23,161,986
|
|
81,487,108
|
|
11,838,550
|
|
|
Amounts due to
related parties
|
|
12,273,000
|
|
12,273,000
|
|
1,783,037
|
|
|
Deferred
revenues
|
|
93,252,362
|
|
183,354,440
|
|
26,637,965
|
|
|
Payable to individual
investors of
factoring receivables
|
|
569,374,828
|
|
579,975,393
|
|
84,259,558
|
|
|
Other current
liabilities
|
|
322,421,476
|
|
350,841,194
|
|
50,970,652
|
|
|
Convertible notes
(current)[4]
|
|
-
|
|
550,656,000
|
|
80,000,000
|
|
|
Total current
liabilities
|
|
1,575,711,768
|
|
2,142,822,002
|
|
311,311,890
|
|
|
|
|
|
|
|
|
|
|
Non-current uncertain
tax position liabilities
|
|
4,456,335
|
|
4,449,328
|
|
646,404
|
|
Other non-current
liabilities
|
|
98,945,858
|
|
92,314,427
|
|
13,411,557
|
|
Convertible
notes
|
|
555,440,000
|
|
-
|
|
-
|
|
Total
Liabilities
|
|
2,234,553,961
|
|
2,239,585,757
|
|
325,369,851
|
|
|
|
|
|
|
|
|
|
|
Mezzanine Equity -
Redeemable non-
controlling Interest of Subsidiary
|
|
330,664,322
|
|
334,589,580
|
|
48,609,597
|
Equity
|
|
3,391,271,417
|
|
3,594,961,950
|
|
522,280,618
|
Total Liabilities
and Equity
|
|
5,956,489,700
|
|
6,169,137,287
|
|
896,260,066
|
|
[4]
Convertible bonds classified as current liabilities represent
convertible senior notes which may be redeemed within one year. The
holders will have the right, at the holders' option, to require
Noah to repurchase for cash on February 3, 2018 or on the maturity
date. Thus, it is classified in current liability as of March 31,
2017.
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB, except
for USD data, per ADS data and percentages)
|
(unaudited)
|
|
|
|
Three months
ended
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
Revenues:
|
RMB
|
|
RMB
|
|
USD
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
228,091,653
|
|
199,785,900
|
|
29,025,148
|
|
(12.4%)
|
Recurring service fees
|
107,031,782
|
|
135,549,199
|
|
19,692,759
|
|
26.6%
|
Performance-based
income
|
9,651,835
|
|
12,549,633
|
|
1,823,227
|
|
30.0%
|
Other
service fees
|
20,030,783
|
|
26,364,626
|
|
3,830,286
|
|
31.6%
|
Total third-party
revenues
|
364,806,053
|
|
374,249,358
|
|
54,371,420
|
|
2.6%
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
60,579,007
|
|
144,556,591
|
|
21,001,364
|
|
138.6%
|
Recurring service fees
|
202,265,842
|
|
191,370,305
|
|
27,802,520
|
|
(5.4%)
|
Performance-based income
|
6,997,951
|
|
79,265
|
|
11,516
|
|
(98.9%)
|
Other
service fees
|
619,353
|
|
6,876,383
|
|
999,010
|
|
1010.3%
|
Total related party
revenues
|
270,462,153
|
|
342,882,544
|
|
49,814,410
|
|
26.8%
|
Total
revenues
|
635,268,206
|
|
717,131,902
|
|
104,185,830
|
|
12.9%
|
Less:
business taxes and related
surcharges
|
(28,110,614)
|
|
(3,962,204)
|
|
(575,634)
|
|
(85.9%)
|
Net
revenues
|
607,157,592
|
|
713,169,698
|
|
103,610,196
|
|
17.5%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(135,594,705)
|
|
(150,313,036)
|
|
(21,837,668)
|
|
10.9%
|
Performance fee compensation
|
(3,346,509)
|
|
-
|
|
-
|
|
(100.0%)
|
Other Compensations
|
(174,404,709)
|
|
(190,268,992)
|
|
(27,642,520)
|
|
9.1%
|
Total compensation
and benefits
|
(313,345,923)
|
|
(340,582,028)
|
|
(49,480,188)
|
|
8.7%
|
Selling
expenses
|
(67,902,033)
|
|
(60,603,173)
|
|
(8,804,506)
|
|
(10.7%)
|
General
and administrative expenses
|
(50,213,661)
|
|
(59,638,162)
|
|
(8,664,308)
|
|
18.8%
|
Other
operating expenses
|
(17,298,096)
|
|
(29,445,892)
|
|
(4,277,936)
|
|
70.2%
|
Government subsidies
|
68,941,562
|
|
33,932,025
|
|
4,929,688
|
|
(50.8%)
|
Total operating costs
and expenses
|
(379,818,151)
|
|
(456,337,230)
|
|
(66,297,250)
|
|
20.1%
|
Income from
operations
|
227,339,441
|
|
256,832,468
|
|
37,312,946
|
|
13.0%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
8,677,696
|
|
8,707,539
|
|
1,265,042
|
|
0.3%
|
Interest
expenses
|
(4,664,889)
|
|
(4,912,616)
|
|
(713,711)
|
|
5.3%
|
Investment income
|
8,067,380
|
|
10,145,532
|
|
1,473,955
|
|
25.8%
|
Other
income
|
646,557
|
|
1,136,828
|
|
165,160
|
|
75.8%
|
Total other
income
|
12,726,744
|
|
15,077,283
|
|
2,190,447
|
|
18.5%
|
Income before taxes
and loss from equity
in affiliates
|
240,066,185
|
|
271,909,751
|
|
39,503,392
|
|
13.3%
|
Income tax
expense
|
(53,394,844)
|
|
(61,915,237)
|
|
(8,995,124)
|
|
16.0%
|
Income from equity in
affiliates
|
5,903,283
|
|
5,726,356
|
|
831,932
|
|
(3.0%)
|
Net
income
|
192,574,624
|
|
215,720,870
|
|
31,340,201
|
|
12.0%
|
Less: net loss
attributable to non-
controlling Interests
|
(6,424,676)
|
|
(5,199,594)
|
|
(755,404)
|
|
(19.1%)
|
Gain attributable to
redeemable non-
controlling interest of Subsidiary
|
-
|
|
3,925,258
|
|
570,266
|
|
-
|
Net income
attributable to Noah
Shareholders
|
198,999,300
|
|
216,995,206
|
|
31,525,338
|
|
9.0%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
3.54
|
|
3.85
|
|
0.56
|
|
8.8%
|
Income per ADS,
diluted
|
3.38
|
|
3.69
|
|
0.54
|
|
9.2%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
37.4%
|
|
36.0%
|
|
36.0%
|
|
|
Net margin
|
31.7%
|
|
30.2%
|
|
30.2%
|
|
|
Weighted average ADS
equivalent:[1]
|
|
|
|
|
|
|
|
Basic
|
56,176,502
|
|
56,364,758
|
|
56,364,758
|
|
|
Diluted
|
60,251,430
|
|
60,108,286
|
|
60,108,286
|
|
|
ADS equivalent
outstanding at end of
period
|
56,214,768
|
|
56,415,307
|
|
56,415,307
|
|
|
|
|
|
[1]
Assumes all outstanding ordinary shares are represented by ADSs.
Each ordinary share represents two ADSs.
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
March
31,
|
|
March 31,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Net
income
|
192,574,624
|
|
215,720,870
|
|
31,340,201
|
|
12.0%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustments
|
(1,546,586)
|
|
(4,137,561)
|
|
(601,110)
|
|
167.5%
|
Fair value fluctuation of
available for
sale Investment (after tax)
|
4,707,100
|
|
1,514,491
|
|
220,027
|
|
(67.8%)
|
Comprehensive
income
|
195,735,138
|
|
213,097,800
|
|
30,959,118
|
|
8.9%
|
Less: Comprehensive
loss attributable to
non-controlling interests
|
(6,436,694)
|
|
(5,315,600)
|
|
(772,257)
|
|
(17.4%)
|
Gain attributable to
redeemable non-
controlling interest of Subsidiary
|
-
|
|
3,925,258
|
|
570,266
|
|
-
|
Comprehensive
income attributable to
Noah Shareholders
|
202,171,832
|
|
214,488,142
|
|
31,161,108
|
|
6.1%
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
|
As
of
|
|
Change
|
|
March 31,
2016
|
|
March 31,
2017
|
|
|
|
|
|
|
|
Number of
registered clients
|
105,557
|
|
148,505
|
|
40.7%
|
Number of
relationship managers
|
1,137
|
|
1,251
|
|
10.0%
|
Number of
cities under coverage
|
68
|
|
74
|
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Change
|
|
March 31,
2016
|
|
March 31,
2017
|
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of
active clients
|
4,948
|
|
4,362
|
|
(11.8%)
|
Transaction
value:
|
|
|
|
|
|
Fixed
income products
|
16,144
|
|
22,102
|
|
36.9%
|
Private
equity fund products
|
6,066
|
|
9,070
|
|
49.5%
|
Secondary
market equity fund
products
|
2,317
|
|
1,126
|
|
(51.4%)
|
Other
products
|
287
|
|
377
|
|
31.3%
|
Total
transaction value
|
24,813
|
|
32,675
|
|
31.7%
|
Average
transaction value per client
|
5.01
|
|
7.49
|
|
49.4%
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Three months ended March 31, 2017
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Financial
Service
Business
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
199,653,023
|
|
132,877
|
|
-
|
|
199,785,900
|
Recurring service
fees
|
128,155,389
|
|
7,393,810
|
|
-
|
|
135,549,199
|
Performance-based
income
|
11,886,301
|
|
663,332
|
|
-
|
|
12,549,633
|
Other service
fees
|
8,161,044
|
|
-
|
|
18,203,582
|
|
26,364,626
|
Total third-party
revenues
|
347,855,757
|
|
8,190,019
|
|
18,203,582
|
|
374,249,358
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
144,542,049
|
|
14,542
|
|
-
|
|
144,556,591
|
Recurring service
fees
|
72,785,242
|
|
118,585,063
|
|
-
|
|
191,370,305
|
Performance-based
income
|
-
|
|
79,265
|
|
-
|
|
79,265
|
Other service
fees
|
-
|
|
-
|
|
6,876,383
|
|
6,876,383
|
Total related party
revenues
|
217,327,291
|
|
118,678,870
|
|
6,876,383
|
|
342,882,544
|
Total
revenues
|
565,183,048
|
|
126,868,889
|
|
25,079,965
|
|
717,131,902
|
Less: business taxes
and related
surcharges
|
(3,194,542)
|
|
(470,579)
|
|
(297,083)
|
|
(3,962,204)
|
Net
revenues
|
561,988,506
|
|
126,398,310
|
|
24,782,882
|
|
713,169,698
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(148,960,020)
|
|
(3,000)
|
|
(1,350,016)
|
|
(150,313,036)
|
Other
compensation
|
(116,901,365)
|
|
(39,762,494)
|
|
(33,605,133)
|
|
(190,268,992)
|
Total compensation and
benefits
|
(265,861,385)
|
|
(39,765,494)
|
|
(34,955,149)
|
|
(340,582,028)
|
Selling
expenses
|
(54,571,915)
|
|
(2,072,478)
|
|
(3,958,780)
|
|
(60,603,173)
|
General and
administrative
expenses
|
(35,300,244)
|
|
(15,266,650)
|
|
(9,071,268)
|
|
(59,638,162)
|
Other operating expenses
|
(12,447,000)
|
|
(9,064,259)
|
|
(7,934,633)
|
|
(29,445,892)
|
Government
subsidies
|
15,412,025
|
|
18,520,000
|
|
-
|
|
33,932,025
|
Total operating costs
and expenses
|
(352,768,519)
|
|
(47,648,881)
|
|
(55,919,830)
|
|
(456,337,230)
|
Income(loss) from
operations
|
209,219,987
|
|
78,749,429
|
|
(31,136,948)
|
|
256,832,468
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Three months ended March 31, 2016
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Financial
Service
Business
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
227,814,903
|
|
276,750
|
|
-
|
|
228,091,653
|
Recurring service
fees
|
93,597,180
|
|
13,434,602
|
|
-
|
|
107,031,782
|
Performance-based
income
|
7,084,942
|
|
2,566,893
|
|
-
|
|
9,651,835
|
Other service
fees
|
13,507,742
|
|
-
|
|
6,523,041
|
|
20,030,783
|
Total third-party
revenues
|
342,004,767
|
|
16,278,245
|
|
6,523,041
|
|
364,806,053
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
59,505,300
|
|
1,073,707
|
|
-
|
|
60,579,007
|
Recurring service
fees
|
82,646,476
|
|
119,619,366
|
|
-
|
|
202,265,842
|
Performance-based
income
|
-
|
|
6,997,951
|
|
-
|
|
6,997,951
|
Other service
fees
|
614,194
|
|
-
|
|
5,159
|
|
619,353
|
Total related party
revenues
|
142,765,970
|
|
127,691,024
|
|
5,159
|
|
270,462,153
|
Total
revenues
|
484,770,737
|
|
143,969,269
|
|
6,528,200
|
|
635,268,206
|
Less: business taxes
and related
surcharges
|
(21,128,796)
|
|
(6,261,747)
|
|
(720,071)
|
|
(28,110,614)
|
Net
revenues
|
463,641,941
|
|
137,707,522
|
|
5,808,129
|
|
607,157,592
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(135,564,480)
|
|
(29,308)
|
|
(917)
|
|
(135,594,705)
|
Performance fee
compensation
|
-
|
|
(3,346,509)
|
|
-
|
|
(3,346,509)
|
Other
compensation
|
(100,410,596)
|
|
(40,050,216)
|
|
(33,943,897)
|
|
(174,404,709)
|
Total compensation and
benefits
|
(235,975,076)
|
|
(43,426,033)
|
|
(33,944,814)
|
|
(313,345,923)
|
Selling
expenses
|
(58,757,267)
|
|
(1,900,708)
|
|
(7,244,058)
|
|
(67,902,033)
|
General and
administrative expenses
|
(24,644,143)
|
|
(12,360,500)
|
|
(13,209,018)
|
|
(50,213,661)
|
Other operating
expenses
|
(11,124,898)
|
|
(2,270,719)
|
|
(3,902,479)
|
|
(17,298,096)
|
Government
subsidies
|
64,000
|
|
68,877,562
|
|
-
|
|
68,941,562
|
Total operating costs
and expenses
|
(330,437,384)
|
|
8,919,602
|
|
(58,300,369)
|
|
(379,818,151)
|
Income(loss) from
operations
|
133,204,557
|
|
146,627,124
|
|
(52,492,240)
|
|
227,339,441
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited)
|
|
|
Three months ended
|
|
March
31,
|
|
March 31,
|
|
Change
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Net income
attributable to
Noah Shareholders
|
198,999,300
|
|
216,995,206
|
|
9.0%
|
Adjustment for
share-based
compensation related to:
|
|
|
|
|
|
Share options
|
12,366,451
|
|
12,531,277
|
|
1.3%
|
Restricted shares
|
2,597,654
|
|
7,710,520
|
|
196.8%
|
Adjusted net
income
attributable to Noah
Shareholders (non-GAAP)*
|
213,963,404
|
|
237,237,003
|
|
10.9%
|
|
|
|
|
|
|
Net margin
|
31.7%
|
|
30.2%
|
|
|
Adjusted net margin
(non-
GAAP)*
|
34.2%
|
|
33.1%
|
|
|
Net income
attributable to
Noah Shareholders per ADS,
diluted
|
3.38
|
|
3.69
|
|
9.2%
|
Adjusted net
income
attributable to Noah
Shareholders per ADS,
diluted (non-GAAP)*
|
3.63
|
|
4.03
|
|
11.0%
|
|
|
|
|
|
|
*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-2017-300457388.html
SOURCE Noah Holdings Limited