SHANGHAI, Aug. 28, 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 second quarter of 2017.
SECOND QUARTER 2017 FINANCIAL HIGHLIGHTS
- Net revenues for the second quarter of
2017 were RMB707.3 million
(US$104.3 million), an 8.5% increase
from the corresponding period in 2016.
(RMB
millions,
except
percentages)
|
Q2 2016
|
|
|
Q2
2017
|
|
|
YoY Change
|
Wealth
management
|
505.2
|
|
|
550.6
|
|
|
9.0%
|
Asset
management
|
135.2
|
|
|
130.3
|
|
|
(3.6%)
|
Internet financial
services
|
11.3
|
|
|
26.4
|
|
|
133.0%
|
Total net
revenues
|
651.7
|
|
|
707.3
|
|
|
8.5%
|
- Income from operations for the second quarter of 2017
was RMB224.3 million (US$33.1 million), a 15.5% increase from the
corresponding period in 2016.
(RMB
millions,
except
percentages)
|
Q2 2016
|
|
|
Q2 2017
|
|
|
YoY Change
|
Wealth
management
|
167.4
|
|
|
185.2
|
|
|
10.7%
|
Asset
management
|
68.8
|
|
|
69.8
|
|
|
1.4%
|
Internet financial
services
|
(42.1)
|
|
|
(30.8)
|
|
|
(26.9%)
|
Total income from
operations
|
194.1
|
|
|
224.3
|
|
|
15.5%
|
- Net income attributable to Noah shareholders for the
second quarter of 2017 was RMB207.0
million (US$30.5 million), a
13.6% increase from the corresponding period in 2016.
- Non-GAAP[1] net income attributable to
Noah shareholders for the second quarter of 2017 was
RMB226.5 million (US$33.4 million), a 14.4% increase from the
corresponding period in 2016.
SECOND 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. Through its wealth management business, Noah primarily
distributes onshore and offshore fixed income products, private
equity products, secondary market products and insurance
products.
- Total number of registered clients as of June 30, 2017 was 164,728, a 43.4% increase from
June 30, 2016.
- Total number of active clients[2] during the
second quarter of 2017 was 4,484, a 9.0% decrease from June 30, 2016.
- Aggregate value of wealth management products
distributed during the second quarter of 2017 was RMB33.0 billion (US$4.9
billion), an 18.8% increase from the second quarter of
2016.
Product
type
|
Three months ended
June 30,
|
|
2016
|
2017
|
|
(RMB in billions,
except percentages)
|
Fixed
income
|
17.0
|
61.2%
|
23.5
|
71.3%
|
Private
equity
|
7.6
|
27.3%
|
8.3
|
25.0%
|
Secondary market
equity
|
2.8
|
10.1%
|
1.1
|
3.4%
|
Other
products
|
0.4
|
1.4%
|
0.1
|
0.3%
|
All
products
|
27.7
|
100.0%
|
33.0
|
100.0%
|
- Average transaction value per
client[3] for the second quarter of 2017 was
RMB7.4 million (US$1.1 million), a 30.5% increase from the
corresponding period in 2016.
- Coverage network included 205 branches and
sub-branches covering 76 cities as of June
30, 2017, up from 199 branches and sub-branches covering 74
cities as of March 31, 2017, and 175
branches and sub-branches covering 68 cities as of June 30, 2016.
- Number of relationship managers was 1,259 as of
June 30, 2017, relatively flat from
March 31, 2017 and a 15.2% increase
from June 30, 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.
|
[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"), a subsidiary of the Company,
is a leading alternative asset manager in China. Gopher develops and manages private
equity, real estate, secondary market, credit and other investments
denominated in both Renminbi and foreign currencies.
- Total assets under management as of June 30, 2017 were RMB138.7 billion (US$20.5
billion), a 7.0% increase from March
31, 2017 and a 37.1% increase from June 30, 2016.
Investment
type
|
As of March
31,
2017
|
Asset
Growth
|
Asset
Expiration/
Redemption
|
As of June 30,
2017
|
|
(RMB billions,
except percentages)
|
|
Real
estate
|
19.8
|
15.3%
|
1.6
|
6.0
|
15.4
|
11.1%
|
Private
equity
|
66.1
|
51.0%
|
6.7
|
0.7
|
72.2
|
52.0%
|
Secondary
market
|
6.9
|
5.3%
|
0.0
|
0.1
|
6.9
|
4.9%
|
Credit
|
33.2
|
25.6%
|
14.5
|
7.0
|
40.7
|
29.4%
|
Other
investments
|
3.5
|
2.7%
|
-
|
-
|
3.5
|
2.5%
|
All
Investments
|
129.6
|
100.0%
|
22.9
|
13.8
|
138.7
|
100.0%
|
|
|
|
|
|
|
|
|
Internet Financial Service Business
The Company's Internet financial service business includes its
online wealth management platform as well as micro-lending, payment
processing and other online services.
- Aggregate value of financial products distributed by the
Company's Internet wealth management platform in the second
quarter of 2017 was RMB6.2 billion
(US$0.9 billion), a 7.3% increase
from the corresponding period in 2016.
- Total number of clients through the Company's Internet
wealth management platform as of June
30, 2017 was 438,981, up from 425,708 and 324,918 as of
March 31, 2017 and June 30, 2016, respectively.
Mr. Kenny Lam, Group President of
Noah, said, "We have delivered robust earnings in the first half of
2017. We are excited by the new talents we are on-boarding to
our core team and the foundation we have built. We will
continue to focus on executing our long-term strategy as
China's leading wealth and asset
manager."
SECOND QUARTER 2017 FINANCIAL RESULTS
Net Revenues
Net revenues for the second quarter of 2017 were
RMB707.3 million (US$104.3 million), an 8.5% increase from the
corresponding period in 2016, primarily driven by increased
recurring service fee revenues.
- Wealth Management Business
-
- Net revenues from one-time commissions for the second
quarter of 2017 were RMB297.6 million
(US$43.9 million), a 2.0% increase
from the corresponding period in 2016. The increase was mainly due
to the increase in the aggregate value of wealth management
products.
- Net revenues from recurring service fees for the second
quarter of 2017 were RMB209.3 million
(US$30.9 million), a 7.5% 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.
- Net revenues from performance-based income for the
second quarter of 2017 were RMB22.0
million (US$3.2 million),
compared with RMB0.1 million in the
corresponding period of 2016, due to the realization of
performance-based income from secondary market equity products and
private equity products distributed in previous periods.
- Net revenues from other service fees for the second
quarter of 2017 were RMB21.6 million
(US$3.2 million), a 17.4% increase
from the corresponding period in 2016, primarily due to the growth
of new business within the wealth management segment.
- Asset Management Business
-
- Net revenues from recurring service fees for the second
quarter of 2017 were RMB128.3 million
(US$18.9 million), a 17.0% increase
from the corresponding period in 2016. The increase was primarily
due to the increase in assets under management.
- Net revenues from performance-based income for the
second quarter of 2017 were RMB1.5
million (US$0.2 million),
compared with RMB23.6 million in the
corresponding period of 2016.
- Internet Financial Service Business
-
- Net revenues for the second quarter of 2017 were
RMB26.4 million (US$3.9 million), a 133.0% increase from the
corresponding period in 2016. The increase was primarily due to the
growth in overall Internet financial services, including online
wealth management, micro-lending, payment processing and other
services, compared with the corresponding period of 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 second quarter of
2017 were RMB483.1 million
(US$71.3 million), a 5.6% increase
from the corresponding period in 2016. As the increase in net
revenue outpaced the increase in operating costs and expenses
year-on-year, the Company's operating margin improved in the second
quarter of 2017 as discussed below.
- Wealth Management Business
Operating costs and
expenses for the second quarter of 2017 were RMB365.4 million (US$53.9
million), an 8.2% increase from the corresponding period in
2016.
-
- Compensation and benefits for the second quarter of 2017
were RMB250.8 million (US$37.0 million), a 0.3% decrease from the
corresponding period in 2016.
- Selling expenses for the second quarter of 2017 were
RMB66.9 million (US$9.9 million), a 0.7% decrease from the
corresponding period in 2016.
- General and administrative expenses for the second
quarter of 2017 were RMB29.9 million
(US$4.4 million), a 6.2% decrease
from the corresponding period in 2016, primarily due to the reduced
loss from fixed asset disposal compared with the same period last
year.
- Other operating expenses were RMB27.5 million (US$4.1
million) for the second quarter of 2017, an increase of
30.1% from the corresponding period in 2016. The increase was
primarily due to the growth of new business within the wealth
management segment.
- Government subsidies represent cash subsidies received
from local governments for general corporate purposes. The
Company's wealth management business received RMB9.7 million (US$1.4
million) in government subsidies in the second quarter of
2017, compared with RMB34.2 million
in the corresponding period of 2016.
- Asset Management Business
Operating costs and expenses for the second quarter of 2017
were RMB60.5 million (US$8.9 million), an 8.9% decrease from the
corresponding period in 2016.
-
- Compensation and benefits for the second quarter of 2017
were RMB44.7 million (US$6.6 million), a 1.5% increase from the
corresponding period of 2016.
- Selling expenses for the second quarter of 2017 were
RMB1.4 million (US$0.2 million), compared with RMB4.4 million in the corresponding period of
2016.
- General and administrative expenses for the second
quarter of 2017 were RMB11.2 million
(US$1.6 million), a 39.1% decrease
from the corresponding period in 2016. The decrease was mainly due
to certain expenses that were not VAT deductible in the second
quarter last year.
- Government subsidies represent cash subsidies received
from local governments for general corporate purposes. The asset
management business received RMB0.1
million in government subsidies in the second quarter of
2017, compared with RMB2.0 million in
the corresponding period of 2016.
- Internet Financial Service Business
Operating costs and expenses for the second quarter of 2017
were RMB57.1 million (US$8.4 million), a 7.0% increase from the
corresponding period in 2016. Operating costs and expenses for the
second quarter of 2017 primarily consisted of compensation and
benefits of RMB35.5 million
(US$5.2 million), selling expenses of
RMB3.0 million (US$0.4 million), general and administrative
expenses of RMB8.2 million
(US$1.2 million) and other operating
expenses of RMB10.5 million
(US$1.5 million).
Operating Margin
Operating margin for the second quarter of 2017 was
31.7%, an increase from 29.8% for the corresponding period in 2016.
The increase was mainly due to improved operating margin for the
asset management business and reduced operating loss of the
Internet financial service business.
- Operating margin for the wealth management business for
the second quarter of 2017 increased to 33.6% from 33.1% for the
corresponding period in 2016.
- Operating margin for the asset management
business for the second quarter of 2017 was 53.5%, compared
with 50.9% for the corresponding period in 2016.
- Operating loss for the Internet financial service
business for the second quarter of 2017 was RMB30.8 million (US$4.5
million), down from RMB42.1
million for the corresponding period in 2016.
Income Tax Expenses
Income tax expenses for the second quarter of
2017 were RMB60.2 million
(US$8.9 million), a 24.3% 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.
Income from Equity in Affiliates
Income from equity in affiliates for the second quarter
of 2017 was RMB23.3 million
(US$3.4 million), a 154.4% increase
from the corresponding period in 2016. The increase was mainly due
to the increased net asset value of the Company's investments in
the funds managed by Gopher as a general partner.
Net Income
- Net Income
-
- Net income for the second quarter of 2017 was
RMB205.9 million (US$30.4 million), a 16.9% increase from the
corresponding period in 2016.
- Net margin for the second quarter of 2017 was 29.1%, up
from 27.0% for the corresponding period in 2016.
- Net income attributable to Noah shareholders for the
second quarter of 2017 was RMB207.0
million (US$30.5 million), a
13.6% increase from the corresponding period in 2016.
- Net income attributable to Noah shareholders per basic and
diluted ADS for the second quarter of 2017 was RMB3.67 (US$0.54)
and RMB3.52 (US$0.52), respectively, up from RMB3.24 and RMB3.10, 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 second quarter of 2017 was RMB226.5
million (US$33.4 million), a
14.4% increase from the corresponding period in 2016.
- Non-GAAP net margin attributable to Noah shareholders
for the second quarter of 2017 was 32.0%, up from 30.4% for the
corresponding period in 2016.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the second quarter of 2017 was RMB3.84 (US$0.57),
up from RMB3.37 for the corresponding
period in 2016.
Balance Sheet and Cash Flow
As of June 30, 2017, the Company
had RMB2,003.5 million (US$295.5 million) in cash and cash equivalents,
compared with RMB2,609.2 million as
of March 31, 2017 and RMB1,398.9 million as of June 30, 2016.
Net cash inflow from the Company's operating activities during
the second quarter of 2017 was RMB72.8
million (US$10.7 million),
compared with income from operations of RMB224.3 million for the corresponding period in
2016; the difference was mainly due to temporary cash outflows
related to the Company's factoring business.
Net cash outflow from the Company's investing activities during
the second quarter of 2017 was RMB671.2
million (US$99.0 million),
primarily due to increases in short-term and long-term investments
to improve cash usage and capital management.
Net cash inflow from the Company's financing activities was
RMB4.2 million (US$0.6 million) in the second quarter of 2017,
which mainly included proceeds from issuance of ordinary shares
upon exercise of stock options.
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 June 30, 2017, the Company had repurchased
224,775 ADSs for approximately US$5.1
million under this program, inclusive of transaction
charges, at an average effective price of US$22.76.
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 with 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 second 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, August 28,
2017 at 8:00 p.m., U.S. Eastern Time
Tuesday, August 29,
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
Second 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 September
4, 2017 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088
(International Toll). The replay access code is 10111521.
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 half of 2017, Noah distributed
RMB65.6 billion (US$9.7 billion) of wealth management products.
Through our subsidiary, Gopher Asset Management, we had assets
under management of RMB138.7 billion
(US$20.5 billion) as of June 30, 2017.
Our wealth management business primarily distributes onshore and
offshore fixed income products, private equity products, secondary
market products and insurance products. Noah delivers customized
financial solutions to clients through a network of 1,259
relationship managers across 205 branches and sub-branches in 76
cities in China, and serves the
international investment needs of its clients through wholly owned
subsidiaries in Hong Kong and
the United States. The Company's
wealth management business had 164,728 registered clients as of
June 30, 2017. As our asset
management subsidiary and a leading alternative asset manager in
China, Gopher Asset Management
manages private equity, real estate, secondary market credit and
other investments denominated in both Renminbi and foreign
currencies. We also provide internet financial services, including
online wealth management, micro-lending and payment processing
services, etc.
For more information, please visit Noah at
ir.noahwm.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
quarter ended June 30, 2017 are
stated in RMB. This announcement contains currency conversions of
certain RMB amounts into US$ 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 RMB6.7793 to US$1.00, the effective noon buying rate for
June 30, 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
|
|
|
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2017
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,609,190
|
|
2,003,529
|
|
295,536
|
|
|
Restricted
cash
|
|
1,000
|
|
-
|
|
-
|
|
|
Short-term
investments
|
|
410,237
|
|
569,513
|
|
84,008
|
|
|
Accounts receivable,
net of allowance for
doubtful accounts of nil at March 31, 2017 and
June 30, 2017
|
|
206,698
|
|
165,765
|
|
24,452
|
|
|
Loans
receivable
|
|
115,878
|
|
295,923
|
|
43,651
|
|
|
Amounts due from
related parties
|
|
599,928
|
|
723,124
|
|
106,666
|
|
|
Factoring
receivables
|
|
573,674
|
|
570,769
|
|
84,193
|
|
|
Other current
assets
|
|
305,948
|
|
78,510
|
|
11,581
|
|
|
Total current
assets
|
|
4,822,553
|
|
4,407,133
|
|
650,087
|
|
|
|
|
|
|
|
|
|
|
Long-term
investments
|
|
465,156
|
|
687,967
|
|
101,481
|
|
Investment in
affiliates
|
|
543,280
|
|
588,933
|
|
86,872
|
|
Property and
equipment, net
|
|
246,843
|
|
252,803
|
|
37,290
|
|
Non-current deferred
tax assets
|
|
52,577
|
|
52,332
|
|
7,719
|
|
Other non-current
assets
|
|
38,728
|
|
81,720
|
|
12,054
|
Total
Assets
|
|
6,169,137
|
|
6,070,888
|
|
895,503
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
|
384,235
|
|
431,467
|
|
63,645
|
|
|
Income tax
payable
|
|
81,487
|
|
52,118
|
|
7,688
|
|
|
Amounts due to
related parties
|
|
12,273
|
|
12,273
|
|
1,810
|
|
|
Deferred
revenues
|
|
183,354
|
|
177,279
|
|
26,150
|
|
|
Payable to individual
investors of factoring
receivables
|
|
579,975
|
|
328,562
|
|
48,465
|
|
|
Other current
liabilities
|
|
350,842
|
|
266,696
|
|
39,341
|
|
|
Convertible
notes
|
|
550,656
|
|
542,344
|
|
80,000
|
|
|
Total current
liabilities
|
|
2,142,822
|
|
1,810,739
|
|
267,099
|
|
|
|
|
|
|
|
|
|
|
Non-current uncertain
tax position liabilities
|
|
4,449
|
|
4,437
|
|
654
|
|
Other non-current
liabilities
|
|
92,314
|
|
100,322
|
|
14,798
|
|
Total
Liabilities
|
|
2,239,585
|
|
1,915,498
|
|
282,551
|
|
Mezzanine Equity -
Redeemable non-
controlling Interest of Subsidiary
|
|
334,590
|
|
337,481
|
|
49,781
|
|
Equity
|
|
3,594,962
|
|
3,817,909
|
|
563,172
|
Total Liabilities
and Equity
|
|
6,169,137
|
|
6,070,888
|
|
895,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
Three months
ended
|
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
209,490
|
|
123,321
|
|
18,191
|
|
(41.1%)
|
Recurring service fees
|
127,815
|
|
130,923
|
|
19,312
|
|
2.4%
|
Performance-based
income
|
817
|
|
16,179
|
|
2,387
|
|
1880.3%
|
Other
service fees
|
29,682
|
|
42,046
|
|
6,202
|
|
41.7%
|
Total third-party
revenues
|
367,804
|
|
312,469
|
|
46,092
|
|
(15.0%)
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
89,971
|
|
177,333
|
|
26,158
|
|
97.1%
|
Recurring service fees
|
182,166
|
|
209,213
|
|
30,861
|
|
14.8%
|
Performance-based income
|
23,317
|
|
7,570
|
|
1,117
|
|
(67.5%)
|
Other
service fees
|
745
|
|
6,562
|
|
968
|
|
780.8%
|
Total related party
revenues
|
296,199
|
|
400,678
|
|
59,104
|
|
35.3%
|
Total
revenues
|
664,003
|
|
713,147
|
|
105,196
|
|
7.4%
|
Less:
business taxes and related
surcharges
|
(12,277)
|
|
(5,836)
|
|
(861)
|
|
(52.5%)
|
Net
revenues
|
651,726
|
|
707,311
|
|
104,335
|
|
8.5%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(147,103)
|
|
(140,078)
|
|
(20,663)
|
|
(4.8%)
|
Performance fee compensation
|
(4,799)
|
|
-
|
|
-
|
|
(100.0%)
|
Other Compensations
|
(176,245)
|
|
(190,895)
|
|
(28,159)
|
|
8.3%
|
Total compensation
and benefits
|
(328,147)
|
|
(330,973)
|
|
(48,822)
|
|
0.9%
|
Selling
expenses
|
(78,248)
|
|
(71,376)
|
|
(10,529)
|
|
(8.8%)
|
General
and administrative expenses
|
(58,251)
|
|
(49,231)
|
|
(7,262)
|
|
(15.5%)
|
Other
operating expenses
|
(29,158)
|
|
(41,268)
|
|
(6,087)
|
|
41.5%
|
Government subsidies
|
36,183
|
|
9,791
|
|
1,444
|
|
(72.9%)
|
Total operating costs
and expenses
|
(457,621)
|
|
(483,057)
|
|
(71,256)
|
|
5.6%
|
Income from
operations
|
194,105
|
|
224,254
|
|
33,079
|
|
15.5%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
11,094
|
|
10,440
|
|
1,540
|
|
(5.9%)
|
Interest
expenses
|
(4,862)
|
|
(4,894)
|
|
(722)
|
|
0.7%
|
Investment income
|
17,074
|
|
10,943
|
|
1,614
|
|
(35.9%)
|
Other
(expense) income
|
(2,067)
|
|
2,056
|
|
303
|
|
(199.5%)
|
Total other
income
|
21,239
|
|
18,545
|
|
2,735
|
|
(12.7%)
|
Income before taxes
and income from
equity in affiliates
|
215,344
|
|
242,799
|
|
35,814
|
|
12.7%
|
Income tax
expense
|
(48,471)
|
|
(60,244)
|
|
(8,886)
|
|
24.3%
|
Income from equity in
affiliates
|
9,161
|
|
23,308
|
|
3,438
|
|
154.4%
|
Net
income
|
176,034
|
|
205,863
|
|
30,366
|
|
16.9%
|
Less: net loss
attributable to non-
controlling Interests
|
(6,222)
|
|
(4,070)
|
|
(600)
|
|
(34.6%)
|
Less: Gain
attributable to redeemable
non-controlling interest of Subsidiary
|
-
|
|
2,891
|
|
426
|
|
-
|
Net income
attributable to Noah
Shareholders
|
182,256
|
|
207,042
|
|
30,540
|
|
13.6%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
3.24
|
|
3.67
|
|
0.54
|
|
13.3%
|
Income per ADS,
diluted
|
3.10
|
|
3.52
|
|
0.52
|
|
13.5%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
29.8%
|
|
31.7%
|
|
31.7%
|
|
|
Net margin
|
27.0%
|
|
29.1%
|
|
29.1%
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
|
|
Basic
|
56,271,504
|
|
56,461,612
|
|
56,461,612
|
|
|
Diluted
|
60,174,258
|
|
60,205,429
|
|
60,205,429
|
|
|
ADS equivalent
outstanding at end of
period
|
56,346,740
|
|
56,547,380
|
|
56,547,380
|
|
|
|
[1]
Assumes all outstanding ordinary shares are represented by ADSs.
Each ordinary share represents two ADSs.
|
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
|
Six months
ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
Change
|
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
|
One-time
commissions
|
437,582
|
|
323,107
|
|
47,661
|
|
(26.2%)
|
|
Recurring service fees
|
234,847
|
|
266,472
|
|
39,307
|
|
13.5%
|
|
Performance-based
income
|
10,469
|
|
28,728
|
|
4,238
|
|
174.4%
|
|
Other
service fees
|
49,712
|
|
68,411
|
|
10,091
|
|
37.6%
|
|
Total third-party
revenues
|
732,610
|
|
686,718
|
|
101,297
|
|
(6.3%)
|
|
Related party
revenues
|
|
|
|
|
|
|
|
|
One-time
commissions
|
150,550
|
|
321,889
|
|
47,481
|
|
113.8%
|
|
Recurring service fees
|
384,432
|
|
400,583
|
|
59,089
|
|
4.2%
|
|
Performance-based income
|
30,315
|
|
7,649
|
|
1,128
|
|
(74.8%)
|
|
Other
service fees
|
1,364
|
|
13,438
|
|
1,982
|
|
885.2%
|
|
Total related party
revenues
|
566,661
|
|
743,559
|
|
109,680
|
|
31.2%
|
|
Total
revenues
|
1,299,271
|
|
1,430,277
|
|
210,977
|
|
10.1%
|
|
Less:
business taxes and related
surcharges
|
(40,388)
|
|
(9,799)
|
|
(1,445)
|
|
(75.7%)
|
|
Net
revenues
|
1,258,883
|
|
1,420,478
|
|
209,532
|
|
12.8%
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(282,698)
|
|
(290,391)
|
|
(42,835)
|
|
2.7%
|
|
Performance fee compensation
|
(8,145)
|
|
-
|
|
-
|
|
(100.0%)
|
|
Other Compensations
|
(350,650)
|
|
(381,164)
|
|
(56,225)
|
|
8.7%
|
|
Total compensation
and benefits
|
(641,493)
|
|
(671,555)
|
|
(99,060)
|
|
4.7%
|
|
Selling
expenses
|
(146,150)
|
|
(131,979)
|
|
(19,468)
|
|
(9.7%)
|
|
General
and administrative expenses
|
(108,464)
|
|
(108,869)
|
|
(16,059)
|
|
0.4%
|
|
Other
operating expenses
|
(46,456)
|
|
(70,714)
|
|
(10,431)
|
|
52.2%
|
|
Government subsidies
|
105,125
|
|
43,723
|
|
6,449
|
|
(58.4%)
|
|
Total operating costs
and expenses
|
(837,438)
|
|
(939,394)
|
|
(138,569)
|
|
12.2%
|
|
Income from
operations
|
421,445
|
|
481,084
|
|
70,963
|
|
14.2%
|
|
Other
income:
|
|
|
|
|
|
|
|
|
Interest
income
|
19,771
|
|
19,147
|
|
2,824
|
|
(3.2%)
|
|
Interest
expenses
|
(9,527)
|
|
(9,806)
|
|
(1,446)
|
|
2.9%
|
|
Investment income
|
25,142
|
|
21,089
|
|
3,111
|
|
(16.1%)
|
|
Other
(expense) income
|
(1,421)
|
|
3,193
|
|
471
|
|
(324.7%)
|
|
Total other
income
|
33,965
|
|
33,623
|
|
4,960
|
|
(1.0%)
|
|
Income before taxes
and income from
equity in affiliates
|
455,410
|
|
514,707
|
|
75,923
|
|
13.0%
|
|
Income tax
expense
|
(101,866)
|
|
(122,160)
|
|
(18,020)
|
|
19.9%
|
|
Income from equity in
affiliates
|
15,064
|
|
29,034
|
|
4,283
|
|
92.7%
|
|
Net
income
|
368,608
|
|
421,581
|
|
62,186
|
|
14.4%
|
|
Less: net loss
attributable to non-
controlling Interests
|
(12,646)
|
|
(9,270)
|
|
(1,367)
|
|
(26.7%)
|
|
Less: Gain
attributable to redeemable
non-controlling interest of Subsidiary
|
-
|
|
6,817
|
|
1,006
|
|
-
|
|
Net income
attributable to Noah
Shareholders
|
381,254
|
|
424,034
|
|
62,547
|
|
11.2%
|
|
|
|
|
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
|
Three months
ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
176,034
|
|
205,863
|
|
30,366
|
|
16.9%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustments
|
7,072
|
|
(6,321)
|
|
(932)
|
|
(189.4%)
|
Fair value fluctuation of
available for
sale investment (after tax)
|
(5,556)
|
|
2,606
|
|
384
|
|
(146.9%)
|
Comprehensive
income
|
177,550
|
|
202,148
|
|
29,818
|
|
13.9%
|
Less: Comprehensive
loss attributable to
non-controlling interests
|
(6,250)
|
|
(4,029)
|
|
(594)
|
|
(35.5%)
|
Less: Gain
attributable to redeemable
non-controlling interest of Subsidiary
|
-
|
|
2,891
|
|
426
|
|
-
|
Comprehensive
income attributable to
Noah Shareholders
|
183,800
|
|
203,286
|
|
29,986
|
|
10.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
368,608
|
|
421,581
|
|
62,187
|
|
14.4%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustments
|
5,526
|
|
(10,459)
|
|
(1,543)
|
|
(289.3%)
|
Fair value fluctuation of
available for
sale investment (after tax)
|
(849)
|
|
4,121
|
|
608
|
|
(585.4%)
|
Comprehensive
income
|
373,285
|
|
415,243
|
|
61,252
|
|
11.2%
|
Less: Comprehensive
loss attributable to
non-controlling interests
|
(12,687)
|
|
(9,345)
|
|
(1,378)
|
|
(26.3%)
|
Less: Gain
attributable to redeemable
non-controlling interest of Subsidiary
|
-
|
|
6,817
|
|
1,006
|
|
-
|
Comprehensive
income attributable to
Noah Shareholders
|
385,972
|
|
417,771
|
|
61,624
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
As
of
|
|
Change
|
|
June 30,
2016
|
|
June 30,
2017
|
|
|
|
|
|
|
|
Number of
registered clients
|
114,870
|
|
164,728
|
|
43.4%
|
Number of
relationship managers
|
1,093
|
|
1,259
|
|
15.2%
|
Number of
cities under coverage
|
68
|
|
76
|
|
11.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Change
|
|
June 30,
2016
|
|
June 30,
2017
|
|
|
(in millions of RMB,
except number of active clients and
percentages)
|
Number of
active clients
|
4,927
|
|
4,484
|
|
(9.0%)
|
Transaction
value:
|
|
|
|
|
|
Fixed
income products
|
16,987
|
|
23,505
|
|
38.4%
|
Private
equity products
|
7,571
|
|
8,252
|
|
9.0%
|
Secondary
market equity products
|
2,810
|
|
1,111
|
|
(60.5%)
|
Other
products
|
379
|
|
94
|
|
(75.3%)
|
Total
transaction value
|
27,747
|
|
32,962
|
|
18.8%
|
Average
transaction value per client
|
5.63
|
|
7.35
|
|
30.5%
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
Three months ended June 30, 2017
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Financial
Service
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
122,956
|
|
366
|
|
-
|
|
123,321
|
Recurring service
fees
|
122,860
|
|
8,063
|
|
-
|
|
130,923
|
Performance-based
income
|
15,015
|
|
1,164
|
|
-
|
|
16,179
|
Other service
fees
|
21,841
|
|
94
|
|
20,110
|
|
42,046
|
Total third-party
revenues
|
282,672
|
|
9,687
|
|
20,110
|
|
312,469
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
177,333
|
|
-
|
|
-
|
|
177,333
|
Recurring service
fees
|
88,366
|
|
120,846
|
|
-
|
|
209,213
|
Performance-based
income
|
7,194
|
|
376
|
|
-
|
|
7,570
|
Other service
fees
|
-
|
|
-
|
|
6,562
|
|
6,562
|
Total related party
revenues
|
272,893
|
|
121,222
|
|
6,562
|
|
400,678
|
Total
revenues
|
555,565
|
|
130,909
|
|
26,672
|
|
713,147
|
Less: business taxes
and related
surcharges
|
(4,964)
|
|
(580)
|
|
(293)
|
|
(5,836)
|
Net
revenues
|
550,601
|
|
130,329
|
|
26,379
|
|
707,311
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(138,330)
|
|
(1)
|
|
(1,747)
|
|
(140,078)
|
Other
compensation
|
(112,455)
|
|
(44,687)
|
|
(33,754)
|
|
(190,895)
|
Total compensation and
benefits
|
(250,785)
|
|
(44,688)
|
|
(35,501)
|
|
(330,973)
|
Selling
expenses
|
(66,619)
|
|
(1,432)
|
|
(3,025)
|
|
(71,376)
|
General and
administrative expenses
|
(29,912)
|
|
(11,168)
|
|
(8,152)
|
|
(49,231)
|
Other operating expenses
|
(27,495)
|
|
(3,314)
|
|
(10,460)
|
|
(41,268)
|
Government
subsidies
|
9,731
|
|
60
|
|
-
|
|
9,791
|
Total operating costs
and expenses
|
(365,380)
|
|
(60,542)
|
|
(57,138)
|
|
(483,057)
|
Income (loss) from
operations
|
185,221
|
|
69,787
|
|
(30,759)
|
|
224,254
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
Three months ended June 30, 2016
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Financial
Service
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
209,149
|
|
341
|
|
-
|
|
209,490
|
Recurring service
fees
|
110,292
|
|
17,523
|
|
-
|
|
127,815
|
Performance-based
income
|
142
|
|
676
|
|
-
|
|
817
|
Other service
fees
|
18,717
|
|
-
|
|
10,964
|
|
29,682
|
Total third-party
revenues
|
338,300
|
|
18,540
|
|
10,964
|
|
367,804
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
88,307
|
|
1,664
|
|
-
|
|
89,971
|
Recurring service
fees
|
88,177
|
|
93,989
|
|
-
|
|
182,166
|
Performance-based
income
|
-
|
|
23,317
|
|
-
|
|
23,317
|
Other service
fees
|
76
|
|
-
|
|
669
|
|
745
|
Total related party
revenues
|
176,560
|
|
118,970
|
|
669
|
|
296,199
|
Total
revenues
|
514,860
|
|
137,510
|
|
11,633
|
|
664,003
|
Less: business taxes
and related
surcharges
|
(9,688)
|
|
(2,278)
|
|
(312)
|
|
(12,277)
|
Net
revenues
|
505,172
|
|
135,232
|
|
11,321
|
|
651,726
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(144,951)
|
|
(1,095)
|
|
(1,057)
|
|
(147,103)
|
Performance fee
compensation
|
-
|
|
(4,799)
|
|
-
|
|
(4,799)
|
Other
compensation
|
(106,630)
|
|
(38,114)
|
|
(31,501)
|
|
(176,245)
|
Total compensation and
benefits
|
(251,581)
|
|
(44,008)
|
|
(32,558)
|
|
(328,147)
|
Selling
expenses
|
(67,372)
|
|
(4,425)
|
|
(6,451)
|
|
(78,248)
|
General and
administrative expenses
|
(31,885)
|
|
(18,352)
|
|
(8,013)
|
|
(58,251)
|
Other operating
expenses
|
(21,127)
|
|
(1,665)
|
|
(6,366)
|
|
(29,158)
|
Government
subsidies
|
34,167
|
|
2,016
|
|
-
|
|
36,183
|
Total operating costs
and expenses
|
(337,798)
|
|
(66,434)
|
|
(53,388)
|
|
(457,621)
|
Income (loss) from
operations
|
167,374
|
|
68,798
|
|
(42,067)
|
|
194,105
|
Noah Holdings
Limited
|
Reconciliation of GAAP to Non-GAAP
Results
|
(In RMB,
except for per ADS data and percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
|
June
30,
|
|
June 30,
|
|
Change
|
|
2016
|
|
2017
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah
Shareholders
|
182,256
|
|
207,042
|
|
13.6%
|
Adjustment for
share-based
compensation related
to:
|
|
|
|
|
|
Share options
|
9,379
|
|
12,622
|
|
34.6%
|
Restricted shares
|
6,306
|
|
6,849
|
|
8.6%
|
Adjusted net
income
attributable to Noah
Shareholders (non-
GAAP)*
|
197,941
|
|
226,513
|
|
14.4%
|
|
|
|
|
|
|
Net margin
|
27.0%
|
|
29.1%
|
|
|
Adjusted net margin
(non-GAAP)*
|
29.4%
|
|
31.9%
|
|
|
Net income
attributable to
Noah Shareholders per ADS,
diluted
|
3.10
|
|
3.52
|
|
13.5%
|
Adjusted net
income
attributable to Noah
Shareholders per ADS,
diluted (non-GAAP)*
|
3.37
|
|
3.84
|
|
13.9%
|
|
|
|
|
|
|
|
*The non-GAAP
adjustments do not take into consideration the impact of taxes on
such adjustments.
|
View original
content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-second-quarter-of-2017-300510058.html
SOURCE Noah Holdings Limited