SHANGHAI, Nov. 20, 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 third quarter of 2017.
THIRD QUARTER 2017 FINANCIAL HIGHLIGHTS
- Net revenues for the third quarter of 2017
were RMB684.3 million (US$102.9 million), a 12.5% increase from the
corresponding period in 2016.
(RMB
millions,
except
percentages)
|
Q3 2016
|
|
|
Q3
2017
|
|
|
YoY Change
|
Wealth
management
|
474.6
|
|
|
488.9
|
|
|
3.0%
|
Asset
management
|
122.5
|
|
|
164.6
|
|
|
34.3%
|
Internet financial
services
|
11.4
|
|
|
30.9
|
|
|
172.0%
|
Total net
revenues
|
608.5
|
|
|
684.3
|
|
|
12.5%
|
- Income from operations for the third quarter of 2017 was
RMB160.3 million (US$24.1 million), a 1.3% decrease from the
corresponding period in 2016.
(RMB
millions,
except
percentages)
|
Q3 2016
|
|
|
Q3 2017
|
|
|
YoY Change
|
Wealth
management
|
143.1
|
|
|
106.8
|
|
|
(25.3%)
|
Asset
management
|
62.4
|
|
|
77.5
|
|
|
24.3%
|
Internet financial
services
|
(43.0)
|
|
|
(24.0)
|
|
|
(44.1%)
|
Total income from
operations
|
162.5
|
|
|
160.3
|
|
|
(1.3%)
|
- Net income attributable to Noah shareholders for the
third quarter of 2017 was RMB185.9
million (US$27.9 million), a
19.8% increase from the corresponding period in 2016.
- Non-GAAP[1] net income attributable to Noah
shareholders for the third quarter of 2017 was RMB215.4 million (US$32.4
million), a 19.9% increase from the corresponding period in
2016.
THIRD QUARTER 2017 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business offers financial
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 September 30, 2017 was 175,979, a 34.9% increase
from September 30, 2016.
- Total number of active clients[2] during the third
quarter of 2017 was 4,456, a 2.7% increase from September 30, 2016.
- Aggregate value of financial products
distributed during the third quarter of 2017 was RMB23.5 billion (US$3.5
billion), a 1.5% decrease from the third quarter of
2016.
Product
type
|
Three months ended
September 30,
|
|
2016
|
2017
|
|
(RMB in billions,
except percentages)
|
Fixed
income
|
17.0
|
71.2%
|
10.8
|
45.8%
|
Private
equity
|
5.4
|
22.5%
|
9.6
|
40.7%
|
Secondary market
equity
|
1.0
|
4.3%
|
3.1
|
13.2%
|
Other
products
|
0.5
|
2.0%
|
0.1
|
0.3%
|
All
products
|
23.9
|
100.0%
|
23.5
|
100.0%
|
- Average transaction value per client[3]
for the third quarter of 2017 was RMB5.3
million (US$0.8 million), a
4.1% decrease from the corresponding period in 2016.
- Number of relationship managers was 1,286 as of
September 30, 2017, a 2.1% increase
from June 30, 2017 and a 17.4%
increase from September 30,
2016.
Asset Management Business
Gopher Asset Management Co. Ltd. ("Gopher"), a wholly-owned
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 September 30, 2017 were RMB142.9 billion (US$21.5
billion), a 3.0% increase from June
30, 2017 and a 24.4% increase from September 30, 2016.
Investment
type
|
As of June 30,
2017
|
Asset
Growth
|
Asset Expiration/
Redemption
|
As of September
30, 2017
|
|
|
(RMB billions,
except percentages)
|
|
Real
estate
|
15.4
|
11.1%
|
0.8
|
4.6
|
11.6
|
8.1%
|
Private
equity
|
72.2
|
52.0%
|
9.3
|
0.2
|
81.3
|
56.9%
|
Secondary market
|
6.9
|
4.9%
|
0.1
|
1.0
|
6.0
|
4.2%
|
Credit
|
40.7
|
29.4%
|
8.9
|
9.2
|
40.4
|
28.3%
|
Other
investments
|
3.5
|
2.5%
|
0.1
|
-
|
3.6
|
2.5%
|
All
Investments
|
138.7
|
100.0%
|
19.2
|
14.9
|
142.9
|
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.
Mr. Kenny Lam, Group President of
Noah, said, "We delivered another quarter of solid operating and
financial performance for our shareholders. In particular, we are
quite pleased to see a higher share of equity-related products in
the overall product mix, helping us improve our earnings quality,
as evidenced by a much larger share of recurring and carry income
received in the third quarter. We continue to successfully execute
our global strategy, launching new products and overseas branches,
and providing a wider range of comprehensive financial services for
our high net worth and institutional clients alike."
THIRD QUARTER 2017 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2017 were
RMB684.3 million (US$102.9 million), a 12.5% increase from the
corresponding period in 2016, primarily driven by increased
recurring service fee revenues and performance-based income.
- Wealth Management Business
-
- Net revenues from one-time commissions for the third
quarter of 2017 were RMB211.3 million
(US$31.8 million), a 24.3% decrease
from the corresponding period in 2016, primarily due to a decline
in sales of insurance products.
- Net revenues from recurring service fees for the third
quarter of 2017 were RMB209.6 million
(US$31.5 million), a 19.9% increase
from the corresponding period in 2016. The increase was primarily
due to the cumulative effect of financial products with recurring
service fees previously distributed.
- Net revenues from performance-based income for the third
quarter of 2017 were RMB48.0 million
(US$7.2 million), compared with
RMB1.2 million in the corresponding
period of 2016, primarily due to the realization of
performance-based income from a real estate product distributed in
previous periods.
- Net revenues from other service fees for the third
quarter of 2017 were RMB19.9 million
(US$3.0 million), a 2.6% increase
from the corresponding period in 2016.
- Asset Management Business
-
- Net revenues from recurring service fees for the third
quarter of 2017 were RMB132.9 million
(US$20.0 million), a 12.0% 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 third
quarter of 2017 were RMB26.3 million
(US$4.0 million), compared with
RMB3.5 million in the corresponding
period of 2016, primarily due to the realization of
performance-based income from a real estate project.
- Internet Financial Service Business
-
- Net revenues for the third quarter of 2017 were
RMB30.9 million (US$4.6 million), a 172.0% increase from the
corresponding period in 2016. The increase was primarily due to the
growth in overall Internet financial services compared with the
corresponding period of 2016.
Operating costs and expenses
Operating costs and expenses for the third
quarter of 2017 were RMB524.0 million
(US$78.8 million), a 17.5% increase
from the corresponding period in 2016. Operating costs and expenses
for the third quarter of 2017 primarily consisted of compensation
and benefits of RMB356.2 million
(US$53.5 million), selling expenses
of RMB77.0 million (US$11.6 million), general and administrative
expenses of RMB60.7 million
(US$9.1 million) and other operating
expenses of RMB35.3 million
(US$5.3 million).
- Operating costs and expenses for the wealth
management business for the third quarter of 2017 were
RMB382.0 million (US$57.4 million), a 15.2% increase from the
corresponding period in 2016, primarily due to an increase in
relationship manager compensation, resulting from higher PE/VC
product sales volume which have relatively higher commissions.
- Operating costs and expenses for the asset management
business for the third quarter of 2017 were RMB87.0 million (US$13.1
million), a 44.8% increase from the corresponding period in
2016, primarily due to an increase in staff compensation.
- Operating costs and expenses for the Internet
financial service business for the third quarter of 2017 were
RMB54.9 million (US$8.3 million), a 1.1% increase from the
corresponding period in 2016.
Operating Margin
Operating margin for the third quarter of 2017 was 23.4%,
a decrease from 26.7% for the corresponding period in 2016. The
decrease was mainly due to decreased government subsidies.
- Operating margin for the wealth management business for
the third quarter of 2017 decreased to 21.9% from 30.1% for the
corresponding period in 2016.
- Operating margin for the asset management
business for the third quarter of 2017 was 47.1%, compared with
50.9% for the corresponding period in 2016.
- Operating loss for the Internet financial service
business for the third quarter of 2017 was RMB24.0 million (US$3.6
million), down from RMB43.0
million for the corresponding period in 2016.
Income Tax Expenses
Income tax expenses for the third quarter of
2017 were RMB41.8 million
(US$6.3 million), a 23.2% increase
from the corresponding period in 2016. The increase was primarily
due to higher taxable income and a higher effective tax
rate.
Income from Equity in Affiliates
Income from equity in affiliates for the third quarter of
2017 was RMB45.7 million
(US$6.9 million), compared with
RMB5.1 million in 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 third quarter of 2017 was
RMB183.4 million (US$27.6 million), a 24.3% increase from the
corresponding period in 2016.
- Net margin for the third quarter of 2017 was 26.8%, up
from 24.3% for the corresponding period in 2016.
- Net income attributable to Noah shareholders for the
third quarter of 2017 was RMB185.9
million (US$27.9 million), a
19.8% increase from the corresponding period in 2016.
- Net income attributable to Noah shareholders per basic and
diluted ADS for the third quarter of 2017 was RMB3.28 (US$0.49)
and RMB3.13 (US$0.47), respectively, up from RMB2.75 and RMB2.65
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 third quarter of 2017 was RMB215.4
million (US$32.4 million), a
19.9% increase from the corresponding period in 2016.
- Non-GAAP net margin attributable to Noah
shareholders for the third quarter of 2017 was 31.5%, up from
29.5% for the corresponding period in 2016.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the third quarter of 2017 was RMB3.62 (US$0.54),
up from RMB3.05 for the corresponding
period in 2016.
Balance Sheet and Cash Flow
As of September 30, 2017, the
Company had RMB1,987.8 million
(US$298.8 million) in cash and cash
equivalents, compared with RMB2,003.5
million as of June 30, 2017
and RMB1,756.9 million as of
September 30, 2016.
Net cash inflow from the Company's operating activities during
the third quarter of 2017 was RMB363.6
million (US$54.7 million), as
a result of a positive profit earned from normal business
operations and a decrease of receivables.
Net cash inflow from the Company's investing activities during
the third quarter of 2017 was RMB247.9, million (US$37.3
million), primarily due to the proceeds from sales of
available-for-sale securities and matured factoring arrangements
that are accounted for as secured borrowings.
Net cash outflow from the Company's financing activities was
RMB609.8 million (US$91.7million) in the third quarter of 2017,
primarily due to the decrease in mezzanine equity associated with
the redemption of Sequoia's investment in Gopher and payments of
matured factoring arrangements that are accounted for as secured
borrowings.
On July 8, 2017, 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 September 30, 2017, the Company had repurchased
no ADS under this program.
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 of 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 third 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, November 20,
2017 at 8:00 p.m., U.S. Eastern Time
Tuesday, November 21,
2017 at 9:00 a.m., Hong Kong Time
|
Dial in
details:
|
|
- United States
Toll Free
|
+1-866-311-7654
|
- Mainland China
Toll Free
|
4001-201203
|
- Hong Kong Toll
Free
|
800-905-945
|
- International
|
+1-412-317-5227
|
Conference
Title:
|
Noah Holdings Limited
Third 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 November
27, 2017 at +1-877-344-7529 (US Toll Free) or
+1-412-317-0088 (International Toll). The replay access code is
10114220.
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 nine months of 2017, Noah distributed
RMB89.2 billion (US$13.4 billion) of financial products. Through
its wholly-owned subsidiary, Gopher Asset Management, Noah had
assets under management of RMB142.9
billion (US$21.5 billion) as
of September 30, 2017.
Noah's wealth management business primarily distributes onshore
and offshore fixed income products, private equity products,
secondary market products and insurance products. Noah delivers
customized financial solutions to clients through a network of
1,286 relationship managers across 222 branches and sub-branches in
78 cities in China, and serves the
international investment needs of its clients through wholly owned
subsidiaries in Hong Kong,
Taiwan and the United States. The Company's wealth
management business had 175,979 registered clients as of
September 30, 2017. As a leading
alternative asset manager in China, Gopher Asset Management manages private
equity, real estate, secondary market, credit and other investments
denominated in both Renminbi and foreign currencies. The Company
also provides Internet financial services, including online wealth
management, micro-lending and payment processing services, etc.
For more information, please visit Noah at
ir.noahwm.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
quarter ended September 30, 2017 are
stated in RMB. This announcement contains currency conversions of
certain RMB amounts into US$ 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 RMB6.6533 to US$1.00, the effective noon buying rate for
September 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
|
|
|
|
|
|
June 30,
2017
|
|
September
30,
2017
|
|
September
30,
2017
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,003,529
|
|
1,987,798
|
|
298,769
|
|
|
Restricted
cash
|
|
-
|
|
-
|
|
-
|
|
|
Short-term
investments (including short-term
investments measured at fair value of
RMB414,513 thousands and
RMB363,692 thousands, as of
June 30, 2017 and September 30, 2017,
respectively)
|
|
569,513
|
|
424,692
|
|
63,832
|
|
|
Accounts receivable,
net of allowance for
doubtful accounts of nil at June 30, 2017
and September 30, 2017
|
|
165,765
|
|
144,724
|
|
21,752
|
|
|
Loans
receivable
|
|
295,923
|
|
401,229
|
|
60,305
|
|
|
Amounts due from
related parties
|
|
723,124
|
|
701,756
|
|
105,475
|
|
|
Loans receivable from
factoring business
|
|
570,769
|
|
440,794
|
|
66,252
|
|
|
Other current
assets
|
|
78,510
|
|
238,830
|
|
35,896
|
|
|
Total current
assets
|
|
4,407,133
|
|
4,339,823
|
|
652,281
|
|
|
|
|
|
|
|
|
|
|
Long-term investments
(including long-term
investments measured at fair value of
RMB113,559 thousands and
RMB116,975 thousands, as of
June 30, 2017 and
September 30, 2017, respectively)
|
|
687,967
|
|
690,747
|
|
103,820
|
|
Investment in
affiliates
|
|
588,933
|
|
640,820
|
|
96,316
|
|
Property and
equipment, net
|
|
252,803
|
|
248,090
|
|
37,288
|
|
Non-current deferred
tax assets
|
|
52,332
|
|
52,083
|
|
7,828
|
|
Other non-current
assets
|
|
81,720
|
|
104,438
|
|
15,700
|
Total
Assets
|
|
6,070,888
|
|
6,076,001
|
|
913,233
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
|
431,467
|
|
491,929
|
|
73,938
|
|
|
Income tax
payable
|
|
52,118
|
|
70,051
|
|
10,529
|
|
|
Amounts due to
related parties
|
|
12,273
|
|
273
|
|
41
|
|
|
Deferred
revenues
|
|
177,279
|
|
211,861
|
|
31,843
|
|
|
Loans payable from
factoring business
|
|
328,562
|
|
303,866
|
|
45,671
|
|
|
Other current
liabilities
|
|
266,696
|
|
366,450
|
|
55,079
|
|
|
Convertible
notes
|
|
542,344
|
|
498,998
|
|
75,000
|
|
|
Total current
liabilities
|
|
1,810,739
|
|
1,943,428
|
|
292,101
|
|
|
|
|
|
|
|
|
|
|
Non-current uncertain
tax position liabilities
|
|
4,437
|
|
4,424
|
|
665
|
|
Other non-current
liabilities
|
|
100,322
|
|
71,807
|
|
10,793
|
|
Total
Liabilities
|
|
1,915,498
|
|
2,019,659
|
|
303,559
|
|
Mezzanine Equity -
Redeemable non-controlling Interest of Subsidiary
|
|
337,481
|
|
-
|
|
-
|
|
Equity
|
|
3,817,909
|
|
4,056,342
|
|
609,674
|
Total Liabilities
and Equity
|
|
6,070,888
|
|
6,076,001
|
|
913,233
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from third
party
|
|
|
|
|
|
|
|
One-time
commissions
|
208,917
|
|
87,455
|
|
13,145
|
|
(58.1%)
|
Recurring service fees
|
113,230
|
|
125,702
|
|
18,893
|
|
11.0%
|
Performance-based
income
|
3,258
|
|
48,759
|
|
7,329
|
|
1396.6%
|
Other service
fees
|
30,903
|
|
50,866
|
|
7,645
|
|
64.6%
|
Total third-party
revenues
|
356,308
|
|
312,782
|
|
47,012
|
|
(12.2%)
|
Revenues from related
party
|
|
|
|
|
|
|
|
One-time
commissions
|
72,276
|
|
125,598
|
|
18,878
|
|
73.8%
|
Recurring service fees
|
181,689
|
|
218,684
|
|
32,869
|
|
20.4%
|
Performance-based income
|
1,467
|
|
26,020
|
|
3,911
|
|
1673.7%
|
Other
service fees
|
32
|
|
5,335
|
|
802
|
|
16571.9%
|
Total related party
revenues
|
255,464
|
|
375,637
|
|
56,460
|
|
47.0%
|
Total
revenues
|
611,772
|
|
688,419
|
|
103,470
|
|
12.5%
|
Less:
business taxes and related surcharges
|
(3,314)
|
|
(4,106)
|
|
(617)
|
|
23.9%
|
Net
revenues
|
608,458
|
|
684,313
|
|
102,855
|
|
12.5%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(130,889)
|
|
(158,310)
|
|
(23,794)
|
|
20.9%
|
Other Compensations
|
(187,514)
|
|
(197,871)
|
|
(29,740)
|
|
5.5%
|
Total compensation
and benefits
|
(318,403)
|
|
(356,181)
|
|
(53,534)
|
|
11.9%
|
Selling
expenses
|
(77,845)
|
|
(76,967)
|
|
(11,568)
|
|
(1.1%)
|
General
and administrative expenses
|
(54,879)
|
|
(60,738)
|
|
(9,129)
|
|
10.7%
|
Other
operating expenses
|
(38,040)
|
|
(35,330)
|
|
(5,310)
|
|
(7.1%)
|
Government subsidies
|
43,172
|
|
5,234
|
|
787
|
|
(87.9%)
|
Total operating costs
and expenses
|
(445,995)
|
|
(523,982)
|
|
(78,754)
|
|
17.5%
|
Income from
operations
|
162,463
|
|
160,331
|
|
24,101
|
|
(1.3%)
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
11,836
|
|
12,962
|
|
1,948
|
|
9.5%
|
Interest
expenses
|
(4,891)
|
|
(4,728)
|
|
(711)
|
|
(3.3%)
|
Investment income
|
4,503
|
|
11,271
|
|
1,694
|
|
150.3%
|
Other
(expense) income
|
2,495
|
|
(290)
|
|
(44)
|
|
(111.6%)
|
Total other
income
|
13,943
|
|
19,215
|
|
2,887
|
|
37.8%
|
Income before taxes
and income from equity in affiliates
|
176,406
|
|
179,546
|
|
26,988
|
|
1.8%
|
Income tax
expense
|
(33,974)
|
|
(41,845)
|
|
(6,289)
|
|
23.2%
|
Income from equity in
affiliates
|
5,134
|
|
45,712
|
|
6,871
|
|
790.4%
|
Net
income
|
147,566
|
|
183,413
|
|
27,570
|
|
24.3%
|
Less: net loss
attributable to non-controlling Interests
|
(7,643)
|
|
(2,136)
|
|
(321)
|
|
(72.1%)
|
Less: Loss
attributable to redeemable non-controlling interest of
Subsidiary
|
-
|
|
(333)
|
|
(50)
|
|
-
|
Net income
attributable to Noah Shareholders
|
155,209
|
|
185,882
|
|
27,941
|
|
19.8%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
2.75
|
|
3.28
|
|
0.49
|
|
19.3%
|
Income per ADS,
diluted
|
2.65
|
|
3.13
|
|
0.47
|
|
18.1%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
26.7%
|
|
23.4%
|
|
23.4%
|
|
|
Net margin
|
24.3%
|
|
26.8%
|
|
26.8%
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
|
|
Basic
|
56,382,358
|
|
56,594,562
|
|
56,594,562
|
|
|
Diluted
|
60,444,632
|
|
60,749,462
|
|
60,749,462
|
|
|
ADS equivalent
outstanding at end of period
|
56,432,189
|
|
56,704,721
|
|
56,704,721
|
|
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs.
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
|
|
|
Three months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
147,566
|
|
183,413
|
|
27,570
|
|
24.3%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(627)
|
|
(10,362)
|
|
(1,557)
|
|
1552.6%
|
Fair value
fluctuation of available for sale investment (after tax)
|
10,327
|
|
4,930
|
|
741
|
|
(52.3%)
|
Comprehensive
income
|
157,266
|
|
177,981
|
|
26,754
|
|
13.2%
|
Less: Comprehensive
loss attributable to non-controlling interests
|
(7,683)
|
|
(2,089)
|
|
(314)
|
|
(72.8%)
|
Less: Loss
attributable to redeemable non-controlling interest of
Subsidiary
|
-
|
|
(333)
|
|
(50)
|
|
-
|
Comprehensive
income attributable to Noah Shareholders
|
164,949
|
|
180,403
|
|
27,118
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
As
of
|
|
Change
|
|
September 30,
2016
|
|
September 30,
2017
|
|
|
|
|
|
|
|
Number of
registered clients
|
130,491
|
|
175,979
|
|
34.9%
|
Number of
relationship managers
|
1,095
|
|
1,286
|
|
17.4%
|
Number of
cities under coverage
|
71
|
|
78
|
|
9.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Change
|
|
September 30,
2016
|
|
September 30,
2017
|
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of
active clients
|
4,337
|
|
4,456
|
|
2.7%
|
Transaction
value:
|
|
|
|
|
|
Fixed
income products
|
17,027
|
|
10,785
|
|
(36.7%)
|
Private
equity products
|
5,390
|
|
9,578
|
|
77.7%
|
Secondary
market equity products
|
1,018
|
|
3,105
|
|
204.8%
|
Other
products
|
470
|
|
79
|
|
(83.1%)
|
Total
transaction value
|
23,904
|
|
23,546
|
|
(1.5%)
|
Average
transaction value per client
|
5.51
|
|
5.28
|
|
(4.1%)
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
Three months ended September 30, 2017
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet Financial
Service Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from third
party
|
|
|
|
|
|
|
|
One-time
commissions
|
87,139
|
|
316
|
|
-
|
|
87,455
|
Recurring service
fees
|
119,193
|
|
6,509
|
|
-
|
|
125,702
|
Performance-based
income
|
48,349
|
|
410
|
|
-
|
|
48,759
|
Other service
fees
|
19,991
|
|
4,974
|
|
25,901
|
|
50,866
|
Total third-party
revenues
|
274,672
|
|
12,209
|
|
25,901
|
|
312,782
|
Revenues from related
party
|
|
|
|
|
|
|
|
One-time
commissions
|
125,517
|
|
81
|
|
-
|
|
125,598
|
Recurring service
fees
|
91,733
|
|
126,951
|
|
-
|
|
218,684
|
Performance-based
income
|
-
|
|
26,020
|
|
-
|
|
26,020
|
Other service
fees
|
-
|
|
-
|
|
5,335
|
|
5,335
|
Total related party
revenues
|
217,250
|
|
153,052
|
|
5,335
|
|
375,637
|
Total
revenues
|
491,922
|
|
165,261
|
|
31,236
|
|
688,419
|
Less: business taxes
and related surcharges
|
(3,059)
|
|
(709)
|
|
(338)
|
|
(4,106)
|
Net
revenues
|
488,863
|
|
164,552
|
|
30,898
|
|
684,313
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(157,561)
|
|
-
|
|
(749)
|
|
(158,310)
|
Other
compensation
|
(116,828)
|
|
(52,178)
|
|
(28,865)
|
|
(197,871)
|
Total compensation and
benefits
|
(274,389)
|
|
(52,178)
|
|
(29,614)
|
|
(356,181)
|
Selling
expenses
|
(69,769)
|
|
(3,801)
|
|
(3,397)
|
|
(76,967)
|
General and
administrative expenses
|
(26,216)
|
|
(21,803)
|
|
(12,719)
|
|
(60,738)
|
Other operating expenses
|
(14,749)
|
|
(11,403)
|
|
(9,178)
|
|
(35,330)
|
Government
subsidies
|
3,097
|
|
2,137
|
|
-
|
|
5,234
|
Total operating costs
and expenses
|
(382,026)
|
|
(87,048)
|
|
(54,908)
|
|
(523,982)
|
Income (loss) from
operations
|
106,837
|
|
77,504
|
|
(24,010)
|
|
160,331
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
Three months ended September 30, 2016
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet Financial
Service Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from third
party
|
|
|
|
|
|
|
|
One-time
commissions
|
208,687
|
|
230
|
|
-
|
|
208,917
|
Recurring service
fees
|
99,738
|
|
13,492
|
|
-
|
|
113,230
|
Performance-based
income
|
1,146
|
|
2,112
|
|
-
|
|
3,258
|
Other service
fees
|
19,437
|
|
-
|
|
11,466
|
|
30,903
|
Third party
revenues
|
329,008
|
|
15,834
|
|
11,466
|
|
356,308
|
Revenues from related
party
|
|
|
|
|
|
|
|
One-time
commissions
|
72,151
|
|
125
|
|
-
|
|
72,276
|
Recurring service
fees
|
76,047
|
|
105,642
|
|
-
|
|
181,689
|
Performance-based
income
|
57
|
|
1,410
|
|
-
|
|
1,467
|
Other service
fees
|
32
|
|
-
|
|
-
|
|
32
|
Related party
revenues
|
148,287
|
|
107,177
|
|
-
|
|
255,464
|
Total
revenues
|
477,295
|
|
123,011
|
|
11,466
|
|
611,772
|
Less: business taxes
and related surcharges
|
(2,691)
|
|
(514)
|
|
(109)
|
|
(3,314)
|
Net
revenues
|
474,604
|
|
122,497
|
|
11,357
|
|
608,458
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(128,869)
|
|
(3)
|
|
(2,017)
|
|
(130,889)
|
Other
compensation
|
(115,908)
|
|
(38,530)
|
|
(33,076)
|
|
(187,514)
|
Total compensation and
benefits
|
(244,777)
|
|
(38,533)
|
|
(35,093)
|
|
(318,403)
|
Selling
expenses
|
(70,124)
|
|
(3,834)
|
|
(3,887)
|
|
(77,845)
|
General and
administrative expenses
|
(26,742)
|
|
(21,191)
|
|
(6,946)
|
|
(54,879)
|
Other operating
expenses
|
(24,889)
|
|
(4,743)
|
|
(8,408)
|
|
(38,040)
|
Government
subsidies
|
34,992
|
|
8,180
|
|
-
|
|
43,172
|
Total operating costs
and expenses
|
(331,540)
|
|
(60,121)
|
|
(54,334)
|
|
(445,995)
|
Income (loss) from
operations
|
143,064
|
|
62,376
|
|
(42,977)
|
|
162,463
|
Noah Holdings
Limited
|
Reconciliation of GAAP to Non-GAAP
Results
|
(In RMB,
except for per ADS data and percentages)
|
(unaudited)
|
|
Three months ended
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2016
|
|
2017
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah Shareholders
|
155,209
|
|
185,882
|
|
19.8%
|
Adjustment for
share-based compensation related to:
|
|
|
|
|
|
Share options
|
5,410
|
|
15,105
|
|
179.2%
|
Restricted shares
|
19,082
|
|
14,396
|
|
(24.6%)
|
Adjusted net income
attributable to Noah Shareholders (non-GAAP)*
|
179,701
|
|
215,383
|
|
19.9%
|
|
|
|
|
|
|
Net margin
|
24.3%
|
|
26.8%
|
|
|
Adjusted net margin
(non-GAAP)*
|
28.3%
|
|
31.1%
|
|
|
Net income
attributable to Noah Shareholders per ADS, diluted
|
2.65
|
|
3.13
|
|
18.1%
|
Adjusted net income
attributable to Noah Shareholders per ADS, diluted
(non-GAAP)*
|
3.05
|
|
3.62
|
|
18.7%
|
|
|
|
|
|
|
*The non-GAAP
adjustments do not take into consideration the impact of taxes on
such adjustments.
|
|
[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 financial products
distributed by Noah during the period specified.
|
[3] "Average
transaction value per client" refers to the average value of
financial products distributed by Noah that were purchased by
active clients during the period specified.
|
View original
content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2017-300559285.html
SOURCE Noah Holdings Limited