NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2022

SHANGHAI, Aug. 23, 2022 /PRNewswire/ — Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), 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, today announced its unaudited financial results for the second quarter of 2022.

SECOND QUARTER 2022 FINANCIAL HIGHLIGHTS

  • Net revenues for the second quarter of 2022 were RMB738.1 million (US$110.2 million), a 17.9% decrease from the corresponding period in 2021, mainly due to decreases in one-time commissions, and performance-based incomes. Net revenues decreased by 7.2% compared with the first quarter of 2022, mainly due to decreases in performance based income amid market volatilities and partially offset by more than doubled one-time commissions.

(RMB millions,

except percentages)

Q2 2021

Q2 2022

YoY Change

Wealth management

625.6

508.6

(18.7 %)

Asset management

256.3

210.3

(17.9 %)

Other businesses

17.5

19.2

9.5 %

Total net revenues

899.4

738.1

(17.9 %)

  • Income from operations for the second quarter of 2022 was RMB323.1 million (US$48.2 million), a 3.6% decrease from the corresponding period in 2021, due to the decreased net revenues for the second quarter of 2022 and partially offset by a decrease in our expenses due to the COVID-19 lockdown measures in parts of China, especially Shanghai; income from operations increased by 3.0% compared with the first quarter of 2022, due to less expenses incurred and more government subsidies received in the second quarter of 2022.

(RMB millions,

except percentages)

Q2 2021

Q2 2022

YoY Change

Wealth management

176.7

193.8

9.7 %

Asset management

172.8

142.6

(17.5 %)

Other businesses

(14.1)

(13.3)

(6.3 %)

Total income from operations

335.4

323.1

(3.6 %)

  • Net income attributable to Noah shareholders for the second quarter of 2022 was RMB349.0 million (US$52.1 million), a 14.2% increase from the corresponding period in 2021, and a 14.3% increase from the first quarter of 2022.
  • Non-GAAP[1] net income attributable to Noah shareholders for the second quarter of 2022 was RMB355.1 million (US$53.0 million), a 5.4% increase from the corresponding period in 2021, and a 13.3% increase from the first quarter of 2022.

[1] Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, share-based settlement expenses and net of relevant tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

SECOND QUARTER 2022 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 June 30, 2022 was 418,675, a 5.4% increase from June 30, 2021, and a 0.9% increase from March 31, 2022.
  • Total number of active clients[2], which excluded mutual fund-only clients during the second quarter of 2022 was 2,272, a 51.4% decrease from the second quarter of 2021, and a 19.4% decrease from the first quarter of 2022. Counting in mutual fund-only clients, the total number of clients who transacted with us during the second quarter of 2022 was 12,866, a 36.6% decrease from the second quarter of 2021, and a 14.1% decrease from the first quarter of 2022, mainly affected by volatile market environment.
  • Aggregate value of investment products distributed during the second quarter of 2022 was RMB19.3 billion (US$3.0 billion), a 22.7% decrease from the second quarter of 2021, but a 28.8% increase from the first quarter of 2022, mainly due to increases in the distribution of mutual fund products and private equity products.

Three months ended June 30,

2021

2022

Product type

(RMB in billions, except percentages)

Mutual fund products

9.4

37.5 %

12.2

63.1 %

Private secondary products

7.7

30.8 %

2.4

12.4 %

Private equity products

6.5

25.9 %

3.9

20.3 %

Other products[3]

1.4

5.8 %

0.8

4.2 %

All products

25.0

100.0 %

19.3

100.0 %

  • Coverage network in mainland China covered 79 cities as of June 30, 2022, compared with 81 cities as of June 30, 2021 and 83 cities as of March 31, 2022.
  • Number of relationship managers was 1,255 as of June 30, 2022, a 1.0% decrease from June 30, 2021, and a 2.0% decrease from March 31, 2022.

[2] "Active clients" for a given period refers to registered high net worth investors who purchase investment products distributed or provided by Noah during that given period, excluding clients who transacted only on our online mutual fund platforms.

[3] "Other products" refers to other investment products, which includes insurance products, multi-strategies products and others.

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-strategy investments denominated in RMB and other currencies.

  • Total assets under management as of June 30, 2022 were RMB155.4 billion (US$23.2 billion), a 0.4% decrease from March 31, 2022 and a 0.3% decrease from June 30, 2021, mainly due to higher distribution of private equity assets during the second quarter of 2022.

Investment type

As of 
March 31, 
2022


Growth


Distribution/ 
Redemption

As of
June 30, 
2022

(RMB billions, except percentages)

Private equity

132.7

85.0 %

3.8

4.5

132.0

84.9 %

Public securities[4]

10.4

6.6 %

0.6

0.3

10.7

6.9 %

Real estate

6.2

4.1 %

0.1

0.1

6.2

4.1 %

Multi-strategies

5.4

3.4 %

0.3

5.1

3.2 %

Others

1.4

0.9 %

1.4

0.9 %

All Investments

156.1

100.0 %

4.5

5.2

155.4

100.0 %

[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 and CEO of Noah, said, "I am glad that Noah Holdings’ secondary listing in Hong Kong has been successfully completed, partially mitigating the ADR delisting risk. The Board has approved a motion to pursue the voluntary conversion to dual-primary listing in Hong Kong, and we hope to deliver good news on the matter in the coming quarters. The Board also approved and adopted a new dividend policy in August 2022, to share a part of our non-GAAP net income attributable to Noah shareholders every year with the shareholders, which is a commitment we will try our best to fulfill. In the second quarter of 2022, our non-GAAP net income grew 13.3% quarter-on-quarter and 5.4% year-on-year, and the transaction value of private equity and mutual funds grew 23.2% and 71.4% quarter-on-quarter respectively, representing an expected recovery from the last quarter, while we continued to see volatilities in the market pressuring the distribution of private secondary products. I am happy to see the number of our core clients, diamond and black card, continued to grow at 6.1% and 20.5% year-on-year respectively amid complicated market environment. We expect to see continued challenges from China’s prolonged COVID-19 control measures and the slower growth of economy, and reiterate the importance of our recommended asset allocation strategy "Protection over Growth", and further suggest our clients to rebalance their global assets to achieve a domestic and international ‘dual circulation’ model." 

SECOND QUARTER 2022 FINANCIAL RESULTS

Net Revenues

Net revenues for the second quarter of 2022 were RMB738.1 million (US$110.2 million), a 17.9% decrease from the corresponding period in 2021, primarily driven by decreased one-time commissions and performance based income, partially offset by increased other service fees.

Wealth Management Business

  • Net revenues from one-time commissions for the second quarter of 2022 were RMB177.8 million (US$26.5 million), a 17.4% decrease year-on-year, primarily due to decreased transaction value in relation to private secondary products as well as private equity products compared with the second quarter of 2021.
  • Net revenues from recurring service fees for the second quarter of 2022 were RMB290.4 million (US$43.4 million), a 14.6% decrease year-on-year. The decrease was primarily due to the service fees recognized upon liquidation of certain credit products with higher fee rates in the second quarter of 2021.
  • Net revenues from performance-based income for the second quarter of 2022 were RMB13.2 million (US$2.0 million), a 76.2% decrease from the corresponding period of 2021, primarily due to less performance-based income from public securities products.
  • Net revenues from other service fees for the second quarter of 2022 were RMB27.2 million (US$4.1 million), an 86.7% increase from the corresponding period in 2021, primarily due to more value-added services Noah offers to its high net worth clients.

Asset Management Business

  • Net revenues from one-time commissions for the second quarter of 2022 was RMB29.2 million (US$4.4 million), a 7.4% decrease year-on-year due to less private equity products sold compared with the second quarter of 2021.
  • Net revenues from recurring service fees for the second quarter of 2022 were RMB168.5 million (US$25.2 million), a 6.3% increase from the corresponding period in 2021, due to an increase in the amount of private equity products managed by Gopher.
  • Net revenues from performance-based income for the second quarter of 2022 were RMB12.6 million (US$1.9 million), an 81.0% decrease year-on-year, primarily due to a decrease in performance-based income from real estate products and offshore private equity products compared with the second quarter of 2021.

Other Businesses

  • Net revenues for the second quarter of 2022 were RMB19.2 million (US$2.9 million), compared with RMB17.5 million for the corresponding period in 2021, due to more value added services provided.

Operating Costs and Expenses

Operating costs and expenses for the second quarter of 2022 were RMB415.0 million (US$62.0 million), a 26.4% decrease from the corresponding period in 2021. Operating costs and expenses primarily consisted of compensation and benefits of RMB357.8 million (US$53.4 million), selling expenses of RMB70.3 million (US$10.5 million), general and administrative expenses of RMB35.6 million (US$5.3 million), reversal of credit losses of RMB5.8 million (US$0.9 million) and other operating expenses of RMB22.7 million (US$3.4 million).

  • Operating costs and expenses for the wealth management business for the second quarter of 2022 were RMB314.8 million (US$47.0 million), a 29.9% decrease from the corresponding period in 2021, primarily due to a decrease in compensation and benefits in line with decreased transaction value and selling expenses as well as general administrative expenses due to COVID-19 lockdown measures in Shanghai.
  • Operating costs and expenses for the asset management business for the second quarter of 2022 were RMB67.8 million (US$10.1 million), an 18.8% decrease from the corresponding period in 2021, primarily due to decreased selling and general and administrative expenses due to COVID-19 lockdown measures in Shanghai.
  • Operating costs and expenses for other businesses for the second quarter of 2022 were RMB32.4 million (US$4.8 million), compared with RMB31.7 million from the corresponding period in 2021.

Operating Margin

Operating margin for the second quarter of 2022 was 43.8%, increased from 37.3% for the corresponding period in 2021.

  • Operating margin for the wealth management business for the second quarter of 2022 was 38.1%, compared with 28.2% for the corresponding period in 2021, due to less expenses incurred due to the COVID-19 lockdown measures in Shanghai.
  • Operating margin for the asset management business for the second quarter of 2022 was 67.8%, compared with 67.4% for the corresponding period in 2021.
  • Loss from operation for other businesses for the second quarter of 2022 was RMB13.3 million (US$2.0 million), compared with an operating loss of RMB14.2 million for the corresponding period in 2021.

Investment Income

Investment income for the second quarter of 2022 was RMB5.2 million (US$0.8 million), compared with RMB3.5 million for the corresponding period in 2021.

Income Tax Expenses

Income tax expenses for the second quarter of 2022 were RMB78.2 million (US$11.7 million), a 13.7% increase year-on-year, primarily due to more taxable income compared with the second quarter of 2021. 

Income from Equity in Affiliates

Income from equity in affiliates for the second quarter of 2022 was RMB69.2 million (US$10.3 million), a 29.5% increase from the corresponding period in 2021, primarily due to the increase in net income of the funds of funds that we manage and invest in as the general partner or fund manager.

Net Income

Net Income

  • Net income for the second quarter of 2022 was RMB348.9 million (US$52.1 million), a 13.3% increase from the corresponding period in 2021.
  • Net margin for the second quarter of 2022 was 47.3%, up from 34.2% for the corresponding period in 2021.
  • Net income attributable to Noah shareholders for the second quarter of 2022 was RMB349.0 million (US$52.1 million), a 14.2% increase from the corresponding period in 2021.
  • Net margin attributable to Noah shareholders for the second quarter of 2022 was 47.3%, up from 34.0% for the corresponding period in 2021.
  • Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2022 was RMB5.19 (US$0.77) and RMB5.18 (US$0.77), respectively, up from RMB4.56 and RMB4.53 respectively, for the corresponding period in 2021.

Non-GAAP Net Income Attributable to Noah Shareholders

  • Non-GAAP net income attributable to Noah shareholders for the second quarter of 2022 was RMB355.1 million (US$53.0 million), a 5.4% increase from the corresponding period in 2021.
  • Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2022 was 48.1%, compared with 37.5% for the corresponding period in 2021.
  • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2022 was RMB5.28 (US$0.79), up from RMB5.00 for the corresponding period in 2021.

Balance Sheet and Cash Flow

As of June 30, 2022, the Company had RMB3,608.0 million (US$538.7 million) in cash and cash equivalents, compared with RMB3,899.9 million as of March 31, 2022 and RMB2,686.4 million as of June 30, 2021.

Net cash outflow from the Company’s operating activities during the second quarter of 2022 was RMB289.7 million (US$43.3 million), primarily due to payment of employee annual bonuses and annual tax filing.

Net cash outflow from the Company’s investing activities during the second quarter of 2022 was RMB17.1 million (US$2.5 million), primarily due to several investments made.

Net cash inflow from the Company’s financing activities was RMB0.5 million (US$0.1 million) in the second quarter of 2022, primarily related to the proceeds from issuance of ordinary shares upon exercise of stock options.

2022 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2022 will be in the range of RMB1.45 billion to RMB1.55 billion. 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 2022 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details

Date/Time:

 

Monday, August 22, 2022 at 8:00 p.m., U.S. Eastern Time

Tuesday, August 23, 2022 at 8:00 a.m., Hong Kong Time

Dial in details:

– United States Toll Free

+1-888-317-6003

– Mainland China Toll Free

4001-206-115

– Hong Kong Toll Free

800-963-976

– International

+1-412-317-6061

Conference Title:

Noah Holdings 2Q22 Earnings Conference Call

Participant Password:

6885355

A telephone replay will be available starting one hour after the end of the conference call until August 29, 2022 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 9147064.

A live and archived webcast of the conference call will be available at Noah’s investor relations website under the Announcements & Events section at https://ir.noahgroup.com/financial-information/quarterly-results.

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, share-based settlement expenses 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 half of 2022, Noah distributed RMB34.3 billion (US$5.4 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB155.4 billion (US$23.2 billion) as of June 30, 2022.

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 79 cities in mainland China, as well as offices in Hong Kong, Taiwan, New York, Silicon Valley and Singapore. A total of 1,255 relationship managers provide customized financial solutions for clients through this network, and meet their international investment needs. The Company’s wealth management business had 418,675 registered clients as of June 30, 2022. 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 businesses.

For more information, please visit Noah at ir.noahgroup.com.

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the second quarter of 2022 ended June 30, 2022 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 RMB6.6981 to US$1.00, the effective noon buying rate for June 30, 2022 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 2022 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 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, including its annual reports on Form 20-F and other filings with the SEC and the prospectus registered in Hong Kong. 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.

— FINANCIAL AND OPERATIONAL TABLES FOLLOW —

Noah Holdings Limited 

Condensed Consolidated Balance Sheets

(unaudited)

As of

March 31,

June 30, 

June 30, 

2022

2022

2022

RMB’000

RMB’000

USD’000

Assets

Current assets:

Cash and cash equivalents

3,899,892

3,608,044

538,667

Restricted cash

512

2,689

401

Short-term investments

64,347

85,889

12,823

Accounts receivable, net

396,485

515,361

76,941

Loans receivable, net

578,355

607,586

90,710

Amounts due from related parties

532,533

562,755

84,017

Other current assets 

170,813

210,623

31,445

Total current assets 

5,642,937

5,592,947

835,004

Long-term investments, net

699,174

711,839

106,275

Investment in affiliates

1,430,346

1,510,503

225,512

Property and equipment, net

2,544,521

2,506,121

374,154

Operating lease right-of-use assets, net

212,993

197,934

29,551

Deferred tax assets

335,911

335,845

50,140

Other non-current assets 

162,206

159,859

23,866

Total Assets

11,028,088

11,015,048

1,644,502

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses 

880,353

618,933

92,404

Income tax payable

236,915

51,317

7,661

Deferred revenues

79,970

64,242

9,591

Other current liabilities

518,214

531,344

79,328

Contingent liabilities

431,080

455,479

68,001

Total current liabilities

2,146,532

1,721,315

256,985

Operating lease liabilities, non-current

120,790

95,995

14,332

Deferred tax liabilities

232,848

232,332

34,686

Other non-current liabilities

83,931

87,243

13,025

Total Liabilities 

2,584,101

2,136,885

319,028

Equity

8,443,987

8,878,163

1,325,474

Total Liabilities and Equity

11,028,088

11,015,048

1,644,502

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(In RMB’000, except for ADS data, per ADS data and percentages)

(unaudited)

Three months ended 

June 30,

June 30,

June 30,

Change

2021

2022

2022

Revenues:

RMB’000

RMB’000

USD’000

Revenues from others:

One-time commissions

195,891

177,339

26,476

(9.5 %)

Recurring service fees

218,988

184,300

27,515

(15.8 %)

Performance-based income

46,468

9,481

1,415

(79.6 %)

Other service fees

32,283

52,521

7,841

62.7 %

Total revenues from others

493,630

423,641

63,247

(14.2 %)

Revenues from funds Gopher manages:

One-time commissions

52,377

30,893

4,612

(41.0 %)

Recurring service fees

282,333

277,359

41,409

(1.8 %)

Performance-based income

76,101

16,533

2,468

(78.3 %)

Total revenues from funds Gopher
     manages

410,811

 

324,785

 

48,489

 

(20.9 %)

Total revenues

904,441

748,426

111,736

(17.2 %)

Less: VAT related surcharges 

(5,052)

(10,284)

(1,535)

103.6 %

Net revenues

899,389

738,142

110,201

(17.9 %)

Operating costs and expenses:

Compensation and benefits

Relationship managers

(153,275)

(131,519)

(19,635)

(14.2 %)

Others

(242,507)

(226,286)

(33,784)

(6.7 %)

Total compensation and benefits

(395,782)

(357,805)

(53,419)

(9.6 %)

Selling expenses

(99,463)

(70,307)

(10,497)

(29.3 %)

General and administrative expenses

(77,892)

(35,649)

(5,322)

(54.2 %)

(Provision)/reversal for credit losses

(2,112)

5,788

864

N.A.

Other operating expenses 

(28,082)

(22,677)

(3,386)

(19.2 %)

Government subsidies 

39,300

65,653

9,802

67.1 %

Total operating costs and expenses 

(564,031)

(414,997)

(61,958)

(26.4 %)

Income from operations 

335,358

323,145

48,243

(3.6 %)

Other income:

Interest income 

18,212

17,681

2,640

(2.9 %)

Investment income 

3,487

5,174

772

48.4 %

Settlement expenses

(19,190)

N.A.

Other (expenses) income

(14,617)

11,849

1,769

N.A.

Total other (expenses) income

(12,108)

34,704

5,181

N.A.

Income before taxes and income from
     equity in affiliates

323,250

357,849

53,424

10.7 %

Income tax expense

(68,720)

(78,164)

(11,670)

13.7 %

Income from equity in affiliates

53,420

69,203

10,332

29.5 %

Net income

307,950

348,888

52,086

13.3 %

Less: net income (loss) attributable to
     non-controlling interests

 

2,424

 

(117)

 

(17)

 

N.A.

Net income attributable to Noah
     shareholders 

305,526

349,005

52,103

14.2 %

Income per ADS, basic

4.56

5.19

0.77

13.8 %

Income per ADS, diluted

4.53

5.18

0.77

14.3 %

 

Margin analysis:

Operating margin

37.3 %

43.8 %

43.8 %

Net margin

34.2 %

47.3 %

47.3 %

Weighted average ADS equivalent[1]:

Basic

66,993,114

67,245,724

67,245,724

Diluted

67,449,200

67,310,698

67,310,698

ADS equivalent outstanding at end of
     period

60,080,070

60,222,116

60,222,116

[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

2021

2022

2022

Revenues:

RMB’000

RMB’000

USD’000

Revenues from others:

One-time commissions

474,595

258,493

38,592

(45.5 %)

Recurring service fees

439,501

377,679

56,386

(14.1 %)

Performance-based income

322,992

152,392

22,752

(52.8 %)

Other service fees

55,996

91,281

13,628

63.0 %

Total revenues from others

1,293,084

879,845

131,358

(32.0 %)

Revenues from funds Gopher
     manages:

One-time commissions

98,523

52,048

7,771

(47.2 %)

Recurring service fees

539,030

570,411

85,160

5.8 %

Performance-based income

204,657

48,600

7,256

(76.3 %)

Total revenues from funds
     Gopher manages

842,210

 

671,059

 

100,187

 

(20.3 %)

Total revenues

2,135,294

1,550,904

231,545

(27.4 %)

Less: VAT related surcharges 

(11,169)

(17,070)

(2,548)

52.8 %

Net revenues

2,124,125

1,533,834

228,997

(27.8 %)

Operating costs and expenses:

Compensation and benefits

Relationship managers

(360,147)

(241,514)

(36,057)

(32.9 %)

Others

(617,760)

(474,196)

(70,796)

(23.2 %)

Total compensation and
      benefits

 

(977,907)

 

(715,710)

 

(106,853)

 

(26.8 %)

Selling expenses

(182,918)

(130,213)

(19,440)

(28.8 %)

General and administrative
     expenses 

 

(158,177)

 

(93,856)

 

(14,012)

 

(40.7 %)

(Provision)/reversal for credit
     losses

 

(5,519)

 

14,986

 

2,237

 

N.A.

Other operating expenses 

(55,170)

(52,312)

(7,810)

(5.2 %)

Government subsidies 

93,314

80,211

11,975

(14.0 %)

Total operating costs and
     expenses 

 

(1,286,377)

 

(896,894)

 

(133,903)

 

(30.3 %)

Income from operations 

837,748

636,940

95,094

(24.0 %)

Other income:

Interest income 

41,139

30,318

4,526

(26.3 %)

Investment income 

37,848

30,547

4,561

(19.3 %)

Settlement expenses

(19,190)

N.A.

Other income (expense)

(15,103)

11,571

1,728

N.A.

Total other income

44,694

72,436

10,815

62.1 %

Income before taxes and
     income from equity in affiliates

882,442

709,376

105,909

(19.6 %)

Income tax expense

(198,566)

(155,500)

(23,216)

(21.7 %)

Income from equity in affiliates

76,933

99,223

14,814

29.0 %

Net income

760,809

653,099

97,507

(14.2 %)

Less: net income (loss)
     attributable to non-controlling
     interests

 

 

1,190

 

 

(1,148)

 

 

(171)

 

 

N.A.

Net income attributable to
     Noah shareholders 

759,619

654,247

97,678

(13.9 %)

Income per ADS, basic

11.33

9.73

1.45

(14.1 %)

Income per ADS, diluted

11.25

9.70

1.45

(13.8 %)

 

Margin analysis:

Operating margin

39.4 %

41.5 %

41.5 %

Net margin

35.8 %

42.6 %

42.6 %

Weighted average ADS
     equivalent[1]:

Basic

67,042,174

67,240,800

67,240,800

Diluted

67,497,514

67,428,368

67,428,368

ADS equivalent outstanding at
     end of period

 

60,080,070

 

60,222,116

 

60,222,116

[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 

June 30,

June 30,

June 30,

Change

2021

2022

2022

RMB’000

RMB’000

USD’000

Net income

307,950

348,888

52,086

13.3 %

Other comprehensive income, net of tax:

Foreign currency translation adjustments

(22,809)

75,557

11,280

N.A.

Fair value fluctuation of available for sale
     Investment (after tax)

 

134

 

N.A.

Comprehensive income

285,275

424,445

63,366

48.8 %

Less: Comprehensive income/(loss)
     attributable to non-controlling interests

 

2,411

 

(183)

(27)

N.A.

Comprehensive income attributable to
     Noah
shareholders

282,864

424,628

63,393

50.1 %

 

 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

Six months ended 

June 30,

June 30,

June 30,

Change

2021

2022

2022

RMB’000

RMB’000

USD’000

Net income

760,809

653,099

97,507

(14.2 %)

Other comprehensive income, net of tax:

Foreign currency translation adjustments

(14,400)

140,097

20,916

N.A.

Fair value fluctuation of available for sale
     Investment (after tax)

134

N.A.

Comprehensive income

746,543

793,196

118,423

6.2 %

Less: Comprehensive income attributable
     to non-controlling interests

1,210

(1,065)

 

(159)

N.A.

Comprehensive income attributable to
     Noah
shareholders

745,333

794,261

118,582

6.6 %

 

 

   Noah Holdings Limited

Supplemental Information 

(unaudited) 

As of 

June 30
2021

June 30
2022

Change

Number of registered clients 

397,235

418,675

5.4 %

Number of relationship managers 

1,268

1,255

(1.0 %)

Number of cities in mainland China under coverage 

81

79

(2.5 %)

Three months ended 

June 30,
2021

June 30
2022

Change

(in millions of RMB, except number of active clients and
percentages)

Number of active clients

4,676

2,272

(51.4 %)

Number of active clients including mutual fund clients

20,290

12,866

(36.6 %)

Transaction value: 

Private equity products 

6,472

3,918

(39.5 %)

Private secondary products

7,708

2,394

(68.9 %)

Mutual fund products 

9,375

12,190

30.0 %

Other products

1,446

814

(43.7 %)

Total transaction value

25,001

19,316

(22.7 %)

 

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 

Three months ended June 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

177,339

177,339

Recurring service fees

184,300

184,300

Performance-based income

9,481

9,481

Other service fees

27,375

25,146

52,521

Total revenues from others

398,495

25,146

423,641

Revenues from funds Gopher
     manages

One-time commissions

1,518

29,375

30,893

Recurring service fees

107,767

169,592

277,359

Performance-based income

3,837

12,696

16,533

Total revenues from funds Gopher
     manages

 

113,122

 

211,663

 

324,785

Total revenues

511,617

211,663

25,146

748,426

Less: VAT related surcharges 

(2,976)

(1,313)

(5,995)

(10,284)

Net revenues

508,641

210,350

19,151

738,142

Operating costs and expenses:

Compensation and benefits

Relationship managers

(120,258)

(11,261)

(131,519)

Others

(153,046)

(63,241)

(9,999)

(226,286)

Total compensation and benefits

(273,304)

(74,502)

(9,999)

(357,805)

Selling expenses

(60,479)

(8,244)

(1,584)

(70,307)

General and administrative
     expenses 

 

(18,821)

 

(12,287)

 

(4,541)

 

(35,649)

Provision for credit losses

141

(441)

6,088

5,788

Other operating expenses

915

(113)

(23,479)

(22,677)

Government subsidies 

36,750

27,822

1,081

65,653

Total operating costs and expenses 

(314,798)

(67,765)

(32,434)

(414,997)

Income (loss) from operations

193,843

142,585

(13,283)

323,145

 

 

Noah Holdings Limited

Segment Condensed Income Statements

 (unaudited)

Three months ended June 30, 2021

Wealth
Management

 Business

Asset
Management

Business

Other
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Revenues from others

One-time commissions

195,891

195,891

Recurring service fees

218,988

218,988

Performance-based income

46,468

46,468

Other service fees

14,665

17,618

32,283

Total revenues from others

476,012

17,618

493,630

Revenues from funds Gopher manages

One-time commissions

20,705

31,672

52,377

Recurring service fees

123,031

159,302

282,333

Performance-based income

9,507

66,594

76,101

Total revenues from funds Gopher
     manages

153,243

257,568

410,811

Total revenues

629,255

257,568

17,618

904,441

Less: VAT related surcharges

(3,665)

(1,299)

(88)

(5,052)

Net revenues

625,590

256,269

17,530

899,389

Operating costs and expenses:

Compensation and benefits

Relationship managers

(149,874)

(3,401)

(153,275)

Others

(154,463)

(74,017)

(14,027)

(242,507)

Total compensation and benefits

(304,337)

(77,418)

(14,027)

(395,782)

Selling expenses

(82,726)

(10,496)

(6,241)

(99,463)

General and administrative
     expenses

 

(54,091)

 

(16,676)

 

(7,125)

 

(77,892)

Provision for credit losses

(2,112)

(2,112)

Other operating expenses

(12,758)

(1,424)

(13,900)

(28,082)

Government subsidies

4,997

22,579

11,724

39,300

Total operating costs and expenses

(448,915)

(83,435)

(31,681)

(564,031)

Income (loss) from operations

176,675

172,834

(14,151)

335,358

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)

Three months ended June 30, 2022

Wealth 
Management
Business

Asset 
Management
Business

Other
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Mainland China

378,862

184,939

25,146

588,947

Hong Kong

111,125

9,117

120,242

Others

21,630

17,607

39,237

Total revenues

511,617

211,663

25,146

748,426

Three months ended June 30, 2021

Wealth 
Management
Business

Asset 
Management
Business

Other
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Mainland China

450,226

209,183

17,618

677,027

Hong Kong

143,309

38,942

182,251

Others

35,720

9,443

45,163

Total revenues

629,255

257,568

17,618

904,441

 

 

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 

2021

2022

RMB’000

RMB’000

Net income attributable to Noah shareholders

305,526

349,005

14.2 %

Adjustment for share-based compensation

16,034

7,990

(50.2 %)

Add: settlement expense

19,190

N.A.

Less: tax effect of adjustments

3,720

1,922

(48.3 %)

Adjusted net income attributable to Noah shareholders
     (non-GAAP)

337,030

355,073

5.4 %

Net margin attributable to Noah shareholders

34.0 %

47.3 %

Non-GAAP net margin attributable to Noah shareholders

37.5 %

48.1 %

Net income attributable to Noah shareholders per ADS,
     diluted

4.53

5.18

14.3 %

Non-GAAP net income attributable to Noah shareholders
     per ADS, diluted

5.00

5.28

5.6 %

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

(In RMB, except for per ADS data and percentages) 

(unaudited) 

Six months ended 

June 30, 

June 30

Change 

2021

2022

RMB’000

RMB’000

Net income attributable to Noah shareholders

759,619

654,247

(13.9 %)

Adjustment for share-based compensation

26,178

18,836

(28.0 %)

Add: settlement expense

19,190

N.A.

Less: tax effect of adjustments

6,074

4,529

(25.4 %)

Adjusted net income attributable to Noah shareholders
     (non-GAAP)

798,913

668,554

(16.3 %)

Net margin attributable to Noah shareholders

35.8 %

42.7 %

Non-GAAP net margin attributable to Noah shareholders

37.6 %

43.6 %

Net income attributable to Noah shareholders per ADS,
     diluted

11.25

9.70

(13.8 %)

Non-GAAP net income attributable to Noah shareholders
     per ADS, diluted

11.84

9.92

(16.2 %)

 

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