SHANGHAI, Nov. 29, 2023 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a
leading wealth management service provider in China offering comprehensive global investment
and asset allocation advisory services primarily for high net worth
investors, today announced its unaudited financial results for the
third quarter of 2023.
THIRD QUARTER 2023 FINANCIAL HIGHLIGHTS
- Net revenues for the third quarter of
2023 were RMB750.0 million (US$102.8 million), a 9.6% increase from the
corresponding period in 2022, mainly due to increases in one-time
commissions. Net revenues decreased by 20.4% compared with the
second quarter of 2023, mainly due to a decrease in distribution of
insurance products.
(RMB
millions,
except
percentages)
|
Q3 2022
|
|
|
Q3 2023
|
|
|
YoY Change
|
Wealth
management
|
466.0
|
|
|
548.8
|
|
|
17.8 %
|
Asset
management
|
200.3
|
|
|
191.4
|
|
|
(4.4 %)
|
Other
businesses
|
18.2
|
|
|
9.8
|
|
|
(46.2 %)
|
Total net
revenues
|
684.5
|
|
|
750.0
|
|
|
9.6 %
|
- Income from operations for the third quarter of 2023
was RMB248.9 million (US$34.1 million), a 7.4% increase from the
corresponding period in 2022, due to a 9.6% increase in net
revenues; income from operations decreased by 28.8% compared with
the second quarter of 2023, due to a 50.8% decrease in one-time
commissions.
(RMB
millions,
except
percentages)
|
|
Q3 2022
|
|
|
Q3 2023
|
|
|
YoY Change
|
Wealth
management
|
|
133.2
|
|
|
154.5
|
|
|
16.0 %
|
Asset
management
|
|
117.7
|
|
|
106.5
|
|
|
(9.6 %)
|
Other
businesses
|
|
(19.1)
|
|
|
(12.1)
|
|
|
(36.6 %)
|
Total income from
operations
|
|
231.8
|
|
|
248.9
|
|
|
7.4 %
|
- Net income attributable to Noah shareholders for
the third quarter of 2023 was RMB233.3
million (US$32.0 million), a
27.9% increase from the corresponding period in 2022, mainly due to
a 158.0% increase in interest income as a result of higher interest
rate for our US dollar cash deposits. Net income attributable to
Noah shareholders decreased by 26.0% compared with the second
quarter of 2023, mainly due to a 20.4% decrease in net
revenues.
- Non-GAAP[1] net income attributable
to Noah shareholders for the third quarter of 2023 was
RMB232.4 million (US$31.9 million), a 21.8% increase from the
corresponding period in 2022, and a 25.8% decrease from the second
quarter of 2023.
THIRD QUARTER 2023 OPERATIONAL UPDATES
Wealth Management Business
We offer investment products and provide value-added services to
high net worth investors in China
and overseas for our wealth management business. Noah primarily
distributes private equity, private secondary, mutual funds and
other products denominated in RMB and other currencies.
- Total number of registered clients as of
September 30, 2023 was 452,222, a
4.4% increase from September 30,
2022, and a 1.3% increase from June
30, 2023.
- Total number of active clients[2]
who transacted with us during the
third quarter of 2023 was 9,489, a 58.1% decrease from the third
quarter of 2022, and a 17.8% decrease from the second quarter of
2023.
- Aggregate value of
investment products distributed during the third
quarter of 2023 was RMB22.3 billion
(US$3.1 billion), a 24.2%
increase from the third quarter of 2022, and a 21.2% increase from
the second quarter of 2023, mainly due to an increase in the
distribution of mutual fund products.
|
Three months ended
September 30,
|
|
2022
|
|
2023
|
Product
type
|
(RMB in billions,
except percentages)
|
Mutual fund
products
|
11.7
|
|
64.8 %
|
|
14.9
|
|
66.9 %
|
Private
secondary products
|
3.3
|
|
18.5 %
|
|
5.7
|
|
25.4 %
|
Private equity
products
|
2.5
|
|
13.9 %
|
|
0.7
|
|
3.1 %
|
Other
products[3]
|
0.5
|
|
2.8 %
|
|
1.0
|
|
4.6 %
|
All
products
|
18.0
|
|
100.0 %
|
|
22.3
|
|
100.0 %
|
- Coverage network in mainland China covered 59 cities as of September 30, 2023, compared with 76 cities as of
September 30, 2022 and 63 cities as
of June 30, 2023, as we continue to
streamline our domestic coverages and focus on strengthening
our operations in central hub cities.
- Number of relationship managers was 1,408 as of
September 30, 2023, a 12.0% increase
from September 30, 2022, and a 2.4%
increase from June 30, 2023. Among
which, we had 77 overseas relationship managers as of September 30, 2023, a 37.5% increase from
June 30, 2023.
Asset Management Business
Our asset management business is conducted through Gopher Asset
Management Co., Ltd. ("Gopher Asset Management"), a leading
multi-asset manager in China with
overseas offices in Hong Kong and
the United States. Gopher Asset
Management develops and manages assets ranging from private equity,
real estate, public securities to multi-strategies investments
denominated in RMB and other currencies.
- Total assets under management as of September 30, 2023 were RMB154.9 billion (US$21.2
billion), a 1.3% decrease from June
30, 2023 and a 0.9% decrease from September 30, 2022, mainly due to exits in
private equity investment products.
Investment
type
|
As of
June 30,
2023
|
|
Growth
|
|
Distribution/
Redemption
|
|
As of
September 30,
2023
|
|
(RMB billions,
except percentages)
|
Private
equity
|
132.9
|
|
84.7 %
|
|
0.2
|
|
1.4
|
|
131.7
|
|
85.0 %
|
Public
securities[4]
|
11.6
|
|
7.4 %
|
|
4.2
|
|
3.6
|
|
12.2
|
|
7.9 %
|
Real estate
|
6.6
|
|
4.2 %
|
|
0.3
|
|
0.6
|
|
6.3
|
|
4.0 %
|
Multi-strategies
|
4.4
|
|
2.8 %
|
|
-
|
|
0.2
|
|
4.2
|
|
2.8 %
|
Others
|
1.4
|
|
0.9 %
|
|
-
|
|
0.9
|
|
0.5
|
|
0.3 %
|
All
Investments
|
156.9
|
|
100.0 %
|
|
4.7
|
|
6.7
|
|
154.9
|
|
100.0 %
|
[1] Noah's
Non-GAAP financial measures are its corresponding GAAP financial
measures excluding the effects of all forms of share-based
compensation and net of relevant tax impact, if any. See
"Reconciliation of GAAP to Non-GAAP Results" at the end of this
press release.
|
[2]
"Active clients" for a given period refers to registered high
net worth investors who purchase investment products distributed or
receive services provided by us during that given
period.
|
[3]
"Other products" refers to other investment products, which
includes insurance products, multi-strategies products and
others.
|
[4]
The asset distribution/redemption of public securities also
includes market appreciation or depreciation.
|
Other Businesses
Our other businesses segment mainly provides more comprehensive
services and investment products to our clients.
Ms. Jingbo Wang, co-founder,
Chairwoman and CEO of Noah, said, "I'm pleased to report a strong
quarter with net revenues increasing 9.6% year-over-year to
RMB750.0 million, primarily driven by
one-time commissions from the distribution of insurance products.
With a robust balance sheet and nearly RMB5
billion in cash and cash equivalents, ample liquidity, and a
standardized product offering, we are well-positioned to fuel
future growth and execute on our strategic plans. Our clean Assets
Under Advisory (AUA) with no legacy private credit or residential
real estate exposure has built us a solid reputation as a trusted
advisor to mandarin-speaking HNW clients, which we are leveraging
to drive our global expansion, as demand for global asset
allocation grows. We continue to recruit Relationship Managers in
Hong Kong and Singapore; meanwhile, our client service
centre in Los Angeles is up and
running, and we are preparing to commence operations in
Dubai. We are also
offering clients sophisticated market intelligence and asset
allocation strategies through our innovative 'CCI' model (composed
of the Chief Investment Office, Client Strategy Office, and
Investment Product & Solution department) and its
solutions-driven wealth management approach. As we rapidly approach
the end of the year, we are increasingly confident in our abilities
to carefully navigate an increasingly complex macroeconomic
environment and create value for our shareholders."
THIRD QUARTER 2023 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2023 were
RMB750.0 million (US$102.8 million), a 9.6% increase from the
corresponding period in 2022, mainly due to increases in one-time
commissions.
- Wealth Management Business
- Net revenues from one-time commissions for the
third quarter of 2023 were RMB198.5
million (US$27.2 million), a
115.5% increase from the corresponding period in 2022, primarily
due to an increase in distribution of insurance products.
- Net revenues from recurring service fees for the
third quarter of 2023 were RMB279.7
million (US$38.3 million), an
8.8% decrease from the corresponding period in 2022, due to a shift
in product mix and clients' investment preferences, as well as less
recurring service fees generated from private secondary and private
equity products.
- Net revenues from performance-based income for the
third quarter of 2023 were RMB8.8
million (US$1.2 million), a
51.3% decrease from the corresponding period of 2022, primarily due
to less performance-based income from private secondary
products.
- Net revenues from other service fees for the third
quarter of 2023 were RMB61.7 million
(US$8.5 million), a 25.5% increase
from the corresponding period in 2022, primarily due to more
value-added services Noah offered to its high net worth
clients.
- Asset Management Business
- Net revenues from recurring service fees for the third
quarter of 2023 were RMB186.3 million
(US$25.5million), a 1.8% increase
from the corresponding period in 2022, due to an increase in the
amount of real estate investments managed by our Gopher New York
team.
- Net revenues from performance-based income for the third
quarter of 2023 were RMB5.1 million
(US$0.7 million), a 46.3% decrease
from the corresponding period in 2022, primarily due to a decrease
in performance-based income from private equity investments managed
by Gopher compared with the third quarter of 2022.
- Other Businesses
- Net revenues for the third quarter of 2023 were
RMB9.8 million (US$1.3 million), compared with RMB18.2 million for the corresponding period in
2022, as we continued to wind down our loan portfolio.
Operating Costs and Expenses
Operating costs and expenses for
the third quarter of 2023 were RMB501.1
million (US$68.7 million), a
10.7% increase from the corresponding period in 2022. Operating
costs and expenses primarily consisted of compensation and benefits
of RMB400.8 million (US$54.9 million), selling expenses of
RMB119.7 million (US$16.4 million), general and administrative
expenses of RMB67.4 million
(US$9.2 million), provision for
credit losses of RMB0.5 million
(US$0.1 million) and other operating
expenses of RMB19.0 million
(US$2.6 million).
- Operating costs and expenses for the wealth
management business for the third quarter of 2023 were
RMB394.2 million (US$54.0 million), a 18.5% increase from the
corresponding period in 2022, primarily due to an increase in
compensation and benefits, selling expenses and general and
administrative expenses, as less expenses incurred during the
corresponding quarter of the preceding year due to various pandemic
restrictions.
- Operating costs and expenses for the asset management
business for the third quarter of 2023 were RMB84.9 million (US$11.6
million), a 2.9% increase from the corresponding period in
2022, primarily due to increased selling expenses.
- Operating costs and expenses for other businesses
for the third quarter of 2023 were RMB21.9
million (US$3.0 million),
compared with RMB37.4 million from
the corresponding period in 2022, due to decreased other operating
expenses.
Operating Margin
Operating margin for the third quarter of 2023 was 33.2%,
compared with 33.9% for the
corresponding period in 2022.
- Operating margin for the wealth management
business for the third quarter of 2023 was 28.2%, compared
with 28.6% for the corresponding period in 2022.
- Operating margin for the asset management
business for the third quarter of 2023 was 55.6%, compared with
58.8% for the corresponding period in 2022.
- Loss from operation for other businesses for the
third quarter of 2023 was RMB12.1
million (US$1.7 million),
compared with an operating loss of RMB19.1
million for the corresponding period in 2022.
Investment Income/loss
Investment income for the third quarter of 2023 was
RMB9.6 million (US$1.3 million), compared with investment loss of
RMB7.2 million for the corresponding
period in 2022.
Income Tax Expenses
Income tax expenses for the third quarter of 2023
were RMB68.5 million (US$9.4 million), a 34.1% increase from the
corresponding period in 2022, primarily due to more taxable income
compared with the third quarter of 2022.
Loss from Equity in Affiliates
Loss from equity in affiliates for the third quarter of
2023 was RMB3.9 million (US$0.5 million), compared with loss from equity
in affiliates of RMB22.4 million for
the corresponding period in 2022, as we recorded such loss from
decrease in net income of the funds of funds that we manage and
invest in as the general partner or fund manager in 2022.
Net Income
- Net Income
- Net income for the third quarter of 2023 was
RMB232.0 million (US$31.8 million), a 30.4% increase from the
corresponding period in 2022.
- Net margin for the third quarter of 2023 was 30.9%, up
from 26.0% for the corresponding period in 2022.
- Net income attributable to Noah shareholders for the
third quarter of 2023 was RMB233.3
million (US$32.0 million), a
27.9% increase from the corresponding period in 2022.
- Net margin attributable to Noah shareholders for the
third quarter of 2023 was 31.1%, up from 26.7% for the
corresponding period in 2022.
- Net income attributable to Noah shareholders per basic and
diluted ADS for the third quarter of 2023 was RMB3.36 (US$0.46)
and RMB3.36 (US$0.46), respectively, up from RMB2.64 and RMB2.63
respectively, for the corresponding period in 2022.
- Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders
for the third quarter of 2023 was RMB232.4
million (US$31.9 million), a
21.8% increase from the corresponding period in 2022.
- Non-GAAP net margin attributable to Noah shareholders
for the third quarter of 2023 was 31.0%, compared with 27.9% for
the corresponding period in 2022.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the third quarter of 2023 was RMB3.35 (US$0.46),
up from RMB2.76 for the corresponding
period in 2022.
Balance Sheet and Cash Flow
As of September 30, 2023, the
Company had RMB4,959.6 million
(US$679.8 million) in cash and cash
equivalents, compared with RMB4,740.4
million as of June 30, 2023
and RMB4,312.8 million as of
September 30, 2022.
Net cash inflow from the Company's operating activities during
the third quarter of 2023 was RMB404.4
million (US$55.4 million),
primarily due to operating cash inflow generated by net income and
collection of accounts receivables.
Net cash inflow from the Company's investing activities during
the third quarter of 2023 was RMB4.0
million (US$0.5 million),
primarily due to collection of loan receivables.
Net cash outflow from the Company's financing activities was
RMB196.3 million (US$26.9 million) in the third quarter of 2023,
primarily due to payment of the final dividend.
CONFERENCE CALL
The Company's senior management will host an earnings conference
call to discuss its Q3 Results and recent business activities.
Details of the conference call are as follows:
Conference
title:
|
Noah Holdings 3Q23
Earnings Conference Call
|
Date/Time:
|
Wednesday, November 29,
2023 at 8:00 p.m., U.S. Eastern Time
Thursday, November
30, 2023 at 9:00 a.m., Hong Kong
Time
|
Dial in:
|
|
|
– Hong Kong Toll
Free:
|
800-963976
|
|
– United States Toll
Free:
|
1-888-317-6003
|
|
– Mainland China Toll
Free:
|
4001-206115
|
|
– International
Toll:
|
1-412-317-6061
|
|
Participant
Password:
|
7559504
|
|
A telephone replay will be available starting approximately one
hour after the end of the conference until December 6, 2023 at 1-877-344-7529 (US Toll Free)
and 1-412-317-0088 (International Toll) with the access code
1973272.
A live and archived webcast of the conference call will be
available at the Company's investor relations website under the
"Financial Reports" section at http://ir.noahgroup.com.
DISCUSSION OF NON-GAAP MEASURES
In addition to disclosing financial results prepared in
accordance with U.S. GAAP, the Company's earnings release contains
non-GAAP financial measures excluding the effects of all forms of
share-based compensation and net of tax impact, if any. See
"Reconciliation of GAAP to Non-GAAP Results" at the end of this
press release.
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
measures 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 the foregoing non-GAAP net
income attributable to Noah shareholders and per diluted ADS and
non-GAAP net margin attributable to Noah shareholders to supplement
U.S. GAAP financial data. As such, the Company's management
believes that the presentation of the non-GAAP financial measures
provides important supplemental information to investors regarding
financial and business trends relating to its results of operations
in a manner consistent with that used by management.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH and HKEX:6686) is a leading
and pioneer wealth management service provider in China offering comprehensive one-stop advisory
services on global investment and asset allocation primarily for
high net worth investors. Noah is a Cayman Islands holding company and carries on
business in Hong Kong as Noah
Holdings Private Wealth and Asset Management Limited. In the first
nine months of 2023, Noah distributed RMB57.5 billion (US$7.9
billion) of investment products. Through Gopher Asset
Management, Noah had assets under management of RMB154.9 billion (US$21.2
billion) as of September 30,
2023.
Noah's wealth management business primarily distributes private
equity, private secondary, mutual fund and other products
denominated in RMB and other currencies. Noah's network covers
major cities in mainland China, as
well as offices in Hong Kong
(China), Taiwan (China), New
York, Silicon Valley and Singapore. A total of 1,408 relationship
managers across 59 cities provide customized financial solutions
for clients through this network, and meet their international
investment needs. The Company's wealth management business had
452,222 registered clients as of September
30, 2023. Through Gopher Asset Management, Noah manages
private equity, public securities, real estate, multi-strategy
and other investments denominated in RMB and other currencies. The
Company also provides other services.
For more information, please visit Noah at
ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
third quarter of 2023 ended September 29,
2023 are stated in RMB. This announcement contains currency
conversions of certain RMB amounts into US$ 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 RMB7.296 to US$1.00, the effective noon buying rate for
September 29, 2023 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. 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 announcements, circulars or
other publications made on the website of The Stock Exchange of
Hong Kong Limited (the "Hong Kong Stock Exchange"), 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. These statements include, but are not limited to,
estimates regarding the sufficiency of Noah's cash and cash
equivalents and liquidity risk. 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 and asset management
market in China and
internationally; its expectations regarding demand for and market
acceptance of the products it distributes; investment risks
associated with investment products distributed to Noah's
investors, including the risk of default by counterparties or loss
of value due to market or business conditions or misconduct by
counterparties; its expectations regarding keeping and
strengthening its relationships with key clients; relevant
government policies and regulations relating to its industries; 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 industries 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 and the Hong Kong Stock
Exchange. 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
Melo Xi
Tel: +86-21-8035-8292
ir@noahgroup.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
As of
|
|
June 30,
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2023
|
|
2023
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
4,740,434
|
|
4,959,550
|
|
679,763
|
|
|
Restricted
cash
|
143,255
|
|
153,908
|
|
21,095
|
|
|
Short-term
investments
|
445,485
|
|
407,872
|
|
55,904
|
|
|
Accounts receivable,
net
|
534,885
|
|
445,386
|
|
61,045
|
|
|
Loans receivable,
net
|
341,083
|
|
315,785
|
|
43,282
|
|
|
Amounts due from
related parties
|
429,202
|
|
406,764
|
|
55,752
|
|
|
Other current
assets
|
200,588
|
|
189,473
|
|
25,969
|
|
|
Total current
assets
|
6,834,932
|
|
6,878,738
|
|
942,810
|
|
Long-term investments,
net
|
980,257
|
|
995,746
|
|
136,478
|
|
Investment in
affiliates
|
1,464,702
|
|
1,491,173
|
|
204,382
|
|
Property and equipment,
net
|
2,525,732
|
|
2,510,839
|
|
344,139
|
|
Operating lease
right-of-use assets, net
|
152,040
|
|
145,410
|
|
19,930
|
|
Deferred tax
assets
|
436,240
|
|
435,632
|
|
59,708
|
|
Other non-current
assets
|
169,454
|
|
171,083
|
|
23,449
|
Total
Assets
|
12,563,357
|
|
12,628,621
|
|
1,730,896
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
562,029
|
|
545,240
|
|
74,731
|
|
|
Income tax
payable
|
141,693
|
|
166,959
|
|
22,884
|
|
|
Deferred
revenues
|
71,440
|
|
88,377
|
|
12,113
|
|
|
Dividend
payable
|
177,502
|
|
49
|
|
7
|
|
|
Other current
liabilities
|
584,384
|
|
578,296
|
|
79,262
|
|
|
Contingent
liabilities
|
592,097
|
|
595,137
|
|
81,570
|
|
Total current
liabilities
|
2,129,145
|
|
1,974,058
|
|
270,567
|
|
Operating lease
liabilities, non-current
|
79,267
|
|
77,418
|
|
10,611
|
|
Deferred tax
liabilities
|
230,797
|
|
229,003
|
|
31,387
|
|
Other non-current
liabilities
|
54,495
|
|
45,058
|
|
6,176
|
|
Total
Liabilities
|
2,493,704
|
|
2,325,537
|
|
318,741
|
|
Equity
|
10,069,653
|
|
10,303,084
|
|
1,412,155
|
Total Liabilities
and Equity
|
12,563,357
|
|
12,628,621
|
|
1,730,896
|
Noah Holdings
Limited
|
|
|
Condensed
Consolidated Income Statements
|
|
|
(In RMB'000, except
for ADS data, per ADS data and percentages)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
|
2022
|
|
2023
|
|
2023
|
|
|
Revenues:
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
|
One-time
commissions
|
|
92,551
|
|
199,286
|
|
27,314
|
|
115.3 %
|
Recurring service
fees
|
|
195,429
|
|
171,408
|
|
23,493
|
|
(12.3 %)
|
Performance-based
income
|
|
17,658
|
|
8,440
|
|
1,157
|
|
(52.2 %)
|
Other service
fees
|
|
71,290
|
|
74,355
|
|
10,191
|
|
4.3 %
|
Total revenues from
others
|
|
376,928
|
|
453,489
|
|
62,155
|
|
20.3 %
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
|
One-time
commissions
|
|
7,846
|
|
32
|
|
4
|
|
(99.6 %)
|
Recurring service
fees
|
|
296,648
|
|
295,982
|
|
40,568
|
|
(0.2 %)
|
Performance-based
income
|
|
10,109
|
|
5,543
|
|
760
|
|
(45.2 %)
|
Total revenues from
funds
Gopher manages
|
|
314,603
|
|
301,557
|
|
41,332
|
|
(4.1 %)
|
Total
revenues
|
|
691,531
|
|
755,046
|
|
103,487
|
|
9.2 %
|
Less: VAT related
surcharges
|
|
(7,063)
|
|
(5,088)
|
|
(697)
|
|
(28.0 %)
|
Net
revenues
|
|
684,468
|
|
749,958
|
|
102,790
|
|
9.6 %
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
|
Relationship
managers
|
|
(108,971)
|
|
(185,748)
|
|
(25,459)
|
|
70.5 %
|
Others
|
|
(234,055)
|
|
(215,047)
|
|
(29,475)
|
|
(8.1 %)
|
Total compensation
and
benefits
|
|
(343,026)
|
|
(400,795)
|
|
(54,934)
|
|
16.8 %
|
Selling
expenses
|
|
(75,995)
|
|
(119,707)
|
|
(16,407)
|
|
57.5 %
|
General and
administrative
expenses
|
|
(57,511)
|
|
(67,407)
|
|
(9,239)
|
|
17.2 %
|
Reversal of credit
losses
|
|
5,274
|
|
525
|
|
72
|
|
(90.0 %)
|
Other operating
expenses
|
|
(25,084)
|
|
(18,982)
|
|
(2,602)
|
|
(24.3 %)
|
Government
subsidies
|
|
43,645
|
|
105,297
|
|
14,432
|
|
141.3 %
|
Total operating costs
and
expenses
|
|
(452,697)
|
|
(501,069)
|
|
(68,678)
|
|
10.7 %
|
Income from
operations
|
|
231,771
|
|
248,889
|
|
34,112
|
|
7.4 %
|
Other
income:
|
|
|
|
|
|
|
|
|
Interest
income
|
|
16,847
|
|
43,465
|
|
5,957
|
|
158.0 %
|
Investment (loss)
income
|
|
(7,233)
|
|
9,640
|
|
1,321
|
|
N.A.
|
Other
income
|
|
10,066
|
|
2,446
|
|
335
|
|
(75.7 %)
|
Total other
income
|
|
19,680
|
|
55,551
|
|
7,613
|
|
182.3 %
|
Income before taxes
and
income from equity in affiliates
|
|
251,451
|
|
304,440
|
|
41,725
|
|
21.1 %
|
Income tax
expense
|
|
(51,078)
|
|
(68,499)
|
|
(9,389)
|
|
34.1 %
|
Loss from equity in
affiliates
|
|
(22,406)
|
|
(3,897)
|
|
(534)
|
|
(82.6 %)
|
Net
income
|
|
177,967
|
|
232,044
|
|
31,802
|
|
30.4 %
|
Less: net loss
attributable to
non-controlling interests
|
|
(4,448)
|
|
(1,282)
|
|
(176)
|
|
(71.2 %)
|
Net income
attributable to
Noah shareholders
|
|
182,415
|
|
233,326
|
|
31,978
|
|
27.9 %
|
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
|
2.64
|
|
3.36
|
|
0.46
|
|
27.3 %
|
Income per ADS,
diluted
|
|
2.63
|
|
3.36
|
|
0.46
|
|
27.8 %
|
Margin
analysis:
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
33.9 %
|
|
33.2 %
|
|
33.2 %
|
|
|
Net margin
|
|
26.0 %
|
|
30.9 %
|
|
30.9 %
|
|
|
Weighted average
ADS
equivalent[1]:
|
|
|
|
|
|
|
|
|
Basic
|
|
69,212,818
|
|
69,472,282
|
|
69,472,282
|
|
|
Diluted
|
|
69,255,667
|
|
69,485,287
|
|
69,485,287
|
|
|
ADS equivalent
outstanding at
end of period
|
|
62,558,122
|
|
63,154,215
|
|
63,154,215
|
|
|
|
|
|
|
|
|
|
|
|
[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
|
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
Change
|
|
2022
|
|
2023
|
|
2023
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
177,967
|
|
232,044
|
|
31,802
|
|
30.4 %
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments
|
107,640
|
|
21,405
|
|
2,934
|
|
(80.1 %)
|
Comprehensive
income
|
285,607
|
|
253,449
|
|
34,736
|
|
(11.3 %)
|
Less:
Comprehensive loss attributable
to non-controlling interests
|
(4,428)
|
|
(1,169)
|
|
(160)
|
|
73.6 %
|
Comprehensive income
attributable to
Noah shareholders
|
290,035
|
|
254,618
|
|
34,896
|
|
(12.2 %)
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
|
As of
|
|
|
|
September
30,
2022
|
|
September
30,
2023
|
|
Change
|
|
|
|
|
|
|
Number of registered
clients
|
433,250
|
|
452,222
|
|
4.4 %
|
Number of relationship
managers
|
1,257
|
|
1,408
|
|
12.0 %
|
Number of cities in
mainland China under
coverage
|
76
|
|
59
|
|
(22.4 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
September
30,
2022
|
|
September
30,
2023
|
|
Change
|
|
(in millions of RMB,
except number of active clients and
percentages)
|
Number of active
clients
|
22,641
|
|
9,489
|
|
(58.1 %)
|
Transaction
value:
|
|
|
|
|
|
Private equity
products
|
2,487
|
|
693
|
|
(72.1 %)
|
Private secondary
products
|
3,326
|
|
5,670
|
|
70.5 %
|
Mutual fund
products
|
11,650
|
|
14,929
|
|
28.1 %
|
Other
products
|
507
|
|
1,024
|
|
102.1 %
|
Total transaction
value
|
17,970
|
|
22,316
|
|
24.2 %
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
|
|
Three months
ended September
30, 2023
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others
|
|
|
|
|
|
|
|
One-time
commissions
|
199,286
|
|
-
|
|
-
|
|
199,286
|
Recurring service
fees
|
171,408
|
|
-
|
|
-
|
|
171,408
|
Performance-based
income
|
8,440
|
|
-
|
|
-
|
|
8,440
|
Other service
fees
|
61,915
|
|
-
|
|
12,440
|
|
74,355
|
Total revenues from
others
|
441,049
|
|
-
|
|
12,440
|
|
453,489
|
Revenues from funds
Gopher
manages
|
|
|
|
|
|
|
|
One-time
commissions
|
-
|
|
32
|
|
-
|
|
32
|
Recurring service
fees
|
109,368
|
|
186,614
|
|
-
|
|
295,982
|
Performance-based
income
|
405
|
|
5,138
|
|
-
|
|
5,543
|
Total revenues from
funds Gopher
manages
|
109,773
|
|
191,784
|
|
-
|
|
301,557
|
Total
revenues
|
550,822
|
|
191,784
|
|
12,440
|
|
755,046
|
Less: VAT related
surcharges
|
(2,074)
|
|
(389)
|
|
(2,625)
|
|
(5,088)
|
Net
revenues
|
548,748
|
|
191,395
|
|
9,815
|
|
749,958
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(179,854)
|
|
(5,894)
|
|
-
|
|
(185,748)
|
Others
|
(144,256)
|
|
(64,041)
|
|
(6,750)
|
|
(215,047)
|
Total compensation and
benefits
|
(324,110)
|
|
(69,935)
|
|
(6,750)
|
|
(400,795)
|
Selling
expenses
|
(94,088)
|
|
(18,723)
|
|
(6,896)
|
|
(119,707)
|
General and
administrative
expenses
|
(53,401)
|
|
(9,217)
|
|
(4,789)
|
|
(67,407)
|
(Provision for)
reversal of credit
losses
|
(894)
|
|
(400)
|
|
1,819
|
|
525
|
Other operating
expenses
|
(11,677)
|
|
(298)
|
|
(7,007)
|
|
(18,982)
|
Government
subsidies
|
89,925
|
|
13,656
|
|
1,716
|
|
105,297
|
Total operating costs
and expenses
|
(394,245)
|
|
(84,917)
|
|
(21,907)
|
|
(501,069)
|
Income (loss) from
operations
|
154,503
|
|
106,478
|
|
(12,092)
|
|
248,889
|
Noah Holdings
Limited
|
|
Segment Condensed
Income Statements
|
|
(unaudited)
|
|
|
|
|
Three months
ended September
30, 2022
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others
|
|
|
|
|
|
|
|
One-time
commissions
|
92,551
|
|
-
|
|
-
|
|
92,551
|
Recurring service
fees
|
195,429
|
|
-
|
|
-
|
|
195,429
|
Performance-based
income
|
17,658
|
|
-
|
|
-
|
|
17,658
|
Other service
fees
|
49,368
|
|
-
|
|
21,922
|
|
71,290
|
Total revenues from
others
|
355,006
|
|
-
|
|
21,922
|
|
376,928
|
Revenues from funds
Gopher
manages
|
|
|
|
|
|
|
|
One-time
commissions
|
-
|
|
7,846
|
|
-
|
|
7,846
|
Recurring service
fees
|
112,636
|
|
184,012
|
|
-
|
|
296,648
|
Performance-based
income
|
515
|
|
9,594
|
|
-
|
|
10,109
|
Total revenues from
funds Gopher
manages
|
113,151
|
|
201,452
|
|
-
|
|
314,603
|
Total
revenues
|
468,157
|
|
201,452
|
|
21,922
|
|
691,531
|
Less: VAT related
surcharges
|
(2,212)
|
|
(1,139)
|
|
(3,712)
|
|
(7,063)
|
Net
revenues
|
465,945
|
|
200,313
|
|
18,210
|
|
684,468
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(103,275)
|
|
(5,696)
|
|
-
|
|
(108,971)
|
Others
|
(165,245)
|
|
(58,758)
|
|
(10,052)
|
|
(234,055)
|
Total compensation and
benefits
|
(268,520)
|
|
(64,454)
|
|
(10,052)
|
|
(343,026)
|
Selling
expenses
|
(65,988)
|
|
(8,796)
|
|
(1,211)
|
|
(75,995)
|
General and
administrative
expenses
|
(39,345)
|
|
(10,947)
|
|
(7,219)
|
|
(57,511)
|
Reversal of (provision
for) credit
losses
|
931
|
|
(14)
|
|
4,357
|
|
5,274
|
Other operating
expenses
|
(1467)
|
|
(357)
|
|
(23,260)
|
|
(25,084)
|
Government
subsidies
|
41,610
|
|
2,005
|
|
30
|
|
43,645
|
Total operating costs
and expenses
|
(332,779)
|
|
(82,563)
|
|
(37,355)
|
|
(452,697)
|
Income (loss) from
operations
|
133,166
|
|
117,750
|
|
(19,145)
|
|
231,771
|
Noah Holdings
Limited
|
Supplement Revenue
Information by Geography
|
(unaudited)
|
|
|
|
Three months ended
September 30, 2023
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
333,911
|
|
116,355
|
|
12,440
|
|
462,706
|
Hong Kong
|
165,361
|
|
42,668
|
|
-
|
|
208,029
|
Others
|
51,550
|
|
32,761
|
|
-
|
|
84,311
|
Total
revenues
|
550,822
|
|
191,784
|
|
12,440
|
|
755,046
|
|
Three months ended
September 30, 2022
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
302,088
|
|
173,771
|
|
21,922
|
|
497,781
|
Hong Kong
|
125,240
|
|
6,945
|
|
-
|
|
132,185
|
Others
|
40,829
|
|
20,736
|
|
-
|
|
61,565
|
Total
revenues
|
468,157
|
|
201,452
|
|
21,922
|
|
691,531
|
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
|
|
2022
|
|
2023
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income attributable
to Noah shareholders
|
182,415
|
|
233,326
|
|
27.9 %
|
Adjustment for
share-based compensation
|
11,148
|
|
(1,161)
|
|
N.A.
|
Less: tax effect of
adjustments
|
2,684
|
|
(281)
|
|
N.A.
|
Adjusted net income
attributable to Noah shareholders
(non-GAAP)
|
190,879
|
|
232,446
|
|
21.8 %
|
Net
margin attributable to Noah shareholders
|
26.7 %
|
|
31.1 %
|
|
|
Non-GAAP net margin
attributable to Noah shareholders
|
27.9 %
|
|
31.0 %
|
|
|
|
|
|
|
|
|
Net income attributable
to Noah shareholders per ADS,
diluted
|
2.63
|
|
3.36
|
|
27.8 %
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted
|
2.76
|
|
3.35
|
|
21.4 %
|
View original
content:https://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2023-302000666.html
SOURCE Noah Holdings Limited