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Noah Holdings Limited Announces Unaudited Financial Results for the First Quarter of 2017

2017-05-16 04:30
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SHANGHAI, May 16, 2017 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth and asset management service provider in China with a focus on global investment and asset allocation services for high net worth individuals and enterprises, today announced its unaudited financial results for the first quarter of 2017.

FIRST QUARTER 2017 FINANCIAL HIGHLIGHTS

  • Net revenues in the first quarter of 2017 were RMB713.2 million (US$103.6 million), a 17.5% increase from the corresponding period in 2016.

(RMB millions,

except percentages)

Q1 2016


Q1  2017


YoY Change

Wealth management

463.6


562.0


21.2%

Asset management

137.7


126.4


(8.2%)

Internet financial services

5.8


24.8


326.7%

Total net revenues

607.2


713.2


17.5%

  • Income from operations in the first quarter of 2017 was RMB256.8 million (US$37.3 million), a 13.0% increase from the corresponding period in 2016.

(RMB millions,

except percentages)

Q1 2016


Q1 2017


YoY Change

Wealth management

133.2


209.2


57.1%

Asset management

146.6


78.7


(46.3%)

Internet financial services

(52.5)


(31.1)


N/A

Total income from operations

227.3


256.8


13.0%

  • Net income attributable to Noah shareholders in the first quarter of 2017 was RMB217.0 million (US$31.5 million), a 9.0% increase from the corresponding period in 2016.
  • Non-GAAP[1] net income attributable to Noah shareholders in the first quarter of 2017 was RMB237.2 million (US$34.5 million), a 10.9% increase from the corresponding period in 2016.

 

[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures as adjusted by excluding the effects of all forms of share-based compensation.

FIRST QUARTER 2017 OPERATIONAL UPDATES

Wealth Management Business

The Company's wealth management business offers wealth management products and provides comprehensive financial services to high net worth individuals, enterprise and institutional clients in China. Through our wealth management business, we primarily distribute onshore and offshore fixed income products, private equity products, secondary market products and insurance products.

  • The total number of registered clients as of March 31, 2017 was 148,505, a 40.7% increase from March 31, 2016.                          
  • The total number of active clients[2] during the first quarter of 2017 was 4,362, an 11.8% decrease from the corresponding period in 2016.
  • The aggregate value of wealth management products distributed by the Company during the first quarter of 2017 was RMB32.7 billion (US$4.8 billion), a 31.7% increase from the corresponding period in 2016.

Product type

Three months ended March 31,


2016

2017


(RMB in billions, except percentages)

Fixed income products

16.1

65.1%

22.1

67.6%

Private equity products

6.1

24.4%

9.1

27.8%

Secondary market equity fund products

2.3

9.3%

1.1

3.4%

Other products

0.3

1.2%

0.4

1.2%

All products

24.8

100.0%

32.7

100.0%

  • The average transaction value per client[3]  in the first quarter of 2017 was RMB7.5 million (US$1.1 million), a 49.4% increase from the corresponding period in 2016.
  • The coverage network included 199 branches and sub-branches covering 74 cities as of March 31, 2017, up from 185 branches and sub-branches covering 71 cities as of December 31, 2016, and 166 branches and sub-branches covering 68 cities as of March 31, 2016.
  • The number of relationship managers was 1,251 as of March 31, 2017, up from 1,169 and 1,137 as of December 31, 2016 and March 31, 2016, respectively.

 

[2] "Active clients" refers to registered clients who purchased wealth management products distributed by Noah during the period specified.
[3] "Average transaction value per client" refers to the average value of wealth management products distributed by Noah that were purchased by active clients during the period specified.

Asset Management Business

Gopher Asset Management ("Gopher"), the Company's subsidiary, is a leading alternative asset manager in China. Gopher develops and manages private equity, real estate, secondary market and other investments denominated in both Renminbi and foreign currencies.

  • The total assets under management as of March 31, 2017 were RMB129.6 billion (US$18.8 billion), a 7.1% increase from December 31, 2016 and a 36.9% increase from March 31, 2016.

Product type

As of December
31, 2016

Asset
Growth

Asset
Expiration/
Redemption

As of March 31,
2017


(RMB billions, except percentages)

Real estate investments

23.2

19.2%

9.5

12.9

19.8

15.3%

Private equity investments

61.7

51.0%

8.6

0.6

69.6

53.8%

Secondary market investments

8.3

6.9%

0.1

1.5

6.9

5.3%

Other investments

27.8

23.0%

10.1

4.7

33.2

25.6%

All products

120.9

100.0%

28.2

19.6

129.6

100.0%

Internet Financial Service Business

The Company's internet financial service business provides financial products and services through a proprietary internet financial service platform mainly targeting mass affluent individuals in China.

  • The aggregate value of financial products distributed by the Company through its internet financial service platform in the first quarter of 2017 was RMB7.1 billion (US$1.1 billion), a 273.4% increase from the first quarter of 2016.
  • The total number of clients through the Company's internet financial service platform as of March 31, 2017 was 425,708, up from 402,815 and 294,796 as of December 31, 2016 and March 31, 2016, respectively.

Mr. Kenny Lam, Group President of Noah, commented, "We started 2017 with a strong first quarter and continued momentum.  Our wealth management business continues to grow rapidly with a broader range of high quality services and products, which led to higher client loyalty.  Our asset management business is in the midst of building new capabilities and our new businesses are beginning to deliver impactful results.  We are quite confident of a successful 2017 and will continue to deliver on our long-term strategic objectives."

FIRST QUARTER 2017 FINANCIAL RESULTS

Net Revenues

Net revenues for the first quarter of 2017 were RMB713.2 million (US$103.6 million), a 17.5% increase from the corresponding period in 2016, primarily due to increases in one-time commission and recurring service fee revenues.

  • Wealth Management Business
    • Net revenues from one-time commissions for the first quarter of 2017 were RMB342.3 million (US$49.7 million), a 24.5% increase from the corresponding period in 2016. The increase was primarily due to an increase in the aggregate value of the wealth management products distributed by the Company.
    • Net revenues from recurring service fees for the first quarter of 2017 were RMB199.8 million (US$29.0 million), an 18.5% increase from the corresponding period in 2016. The increase was primarily due to the cumulative effect of wealth management products with recurring service fees previously distributed by the Company.Net revenues from performance-based income for the first quarter of 2017 were RMB11.8 million (US$1.7 million), a 74.4% increase from the corresponding period in 2016, primarily due to a year-over-year increase in performance-based income from private equity products distributed in previous periods by the Company. Net revenues from other service fees for the first quarter of 2017 were RMB8.1 million (US$1.2 million), a 39.9% decrease from the corresponding period in 2016,primarily due to the reclassification of some of the other service fee income starting from the second quarter of 2016.
  •  Asset Management Business
    • Net revenues from recurring service fees for the first quarter of 2017 were RMB125.5 million (US$18.2 million), a 1.4% decrease from the corresponding period in 2016, primarily due to lower average management fee rates of fund-of-funds products managed in the first quarter of 2017 than those of the direct real estate investment products which had matured since a year ago. Net revenues from performance-based income for the first quarter of 2017 were RMB0.7 million (US$0.1 million), compared to RMB9.1 million in the corresponding period in 2016, primarily due to a decrease in performance-based income from secondary market products.
    Internet Financial Service Business
    • Net revenues for the first quarter of 2017 were RMB24.8 million (US$3.6 million), a 326.7% increase from the corresponding period in 2016, primarily due to increased volumes of financial products distributed by the internet financial service platform compared to the corresponding period in 2016.

Operating costs and expenses

Operating costs and expenses include compensation and benefits, selling expenses, general and administrative expenses, other operating expenses and government subsidies. Operating costs and expenses for the first quarter of 2017 were RMB456.3 million (US$66.3 million), a 20.1% increase from the corresponding period in 2016. The increase was primarily due to increased compensation costs and decreased government subsidies.

  • Wealth Management Business
    Operating costs and expenses for the first quarter of 2017 were RMB352.8 million (US$51.3 million), a 6.8% increase from the corresponding period in 2016.
    • Compensation and benefits includes compensation for relationship managers and back-office employees. Compensation and benefits for the first quarter of 2017 were RMB265.9 million (US$38.6 million), a 12.7% increase from the corresponding period in 2016. In the first quarter of 2017, relationship manager compensation increased by 9.9% from the corresponding period in 2016, as a result of a larger number of relationship managers. Other compensation for the first quarter of 2017 increased by 16.4% from the corresponding period in 2016, primarily due to an increase in the number of back-office employees. Selling expenses for the first quarter of 2017 were RMB54.6 million (US$7.9 million), a 7.1% decrease from the corresponding period in 2016, primarily due to lower expenses for general marketing. General and administrative expenses for the first quarter of 2017 were RMB35.3 million (US$5.1 million), an 43.2% increase from the corresponding period in 2016, primarily due to higher expenses related to promotion conferences held during the first quarter. Other operating expenses, which include other costs incurred directly in relation to the wealth management business' revenues, were RMB12.4 million (US$1.8 million) for the first quarter of 2017, an increase of 11.9% from the corresponding period in 2016. Government subsidies represent cash subsidies received from local governments for general corporate purposes. Our wealth management business received RMB15.4 million (US$2.2 million) in government subsidies in the first quarter of 2017, compared to RMB0.1 million in the corresponding period of 2016
  • Asset Management Business
    Operating costs and expenses for the first quarter of 2017 were RMB47.6 million (US$6.9million), excluding government subsidies, compared to RMB60.0 million in the corresponding period of 2016, an increase of 10.4%.
    • Compensation and benefits include compensation of investment professionals, fund operation staff, institutional sales, and other back-office employees. Compensation and benefits for the first quarter of 2017 were RMB39.8 million (US$5.8 million), an 8.4% decrease from the corresponding period in 2016. The decrease was primarily due to less performance-based compensation paid to fund managers as lower performance-based income was recognized in the first quarter of 2017 compared with the corresponding period in 2016. Selling expenses for the first quarter of 2017 were RMB2.1 million (US$0.3 million), compared with RMB1.9 million in the corresponding period of 2016, an increase of 9.0%, primarily due to an increase in expenses related to external consulting services. General and administrative expenses for the first quarter of 2017 were RMB15.3 million (US$2.2 million), a 23.5% increase from the corresponding period in 2016, primarily due to an increase in expenses related to conferencing services incurred for during the quarter. Government subsidies represent cash subsidies received from local governments for general corporate purposes. The asset management business received RMB18.5 million (US$2.7 million) in government subsidies in the first quarter of 2017, compared to RMB68.9 million in the corresponding period in 2016
  • Internet Financial Service Business
    Operating costs and expenses for the first quarter of 2017 were RMB55.9 million (US$8.1 million), a 4.1% decrease from the corresponding period in 2016. Operating costs and expenses for the first quarter of 2017 primarily consisted of compensation and benefits of RMB35.0 million (US$5.1 million), selling expenses of RMB4.0 million (US$0.6 million), general and administrative expenses of RMB9.1 million (US$1.3 million) and other operating expenses of RMB7.9 million (US$1.2 million).

Operating Margin

Operating margin for the first quarter of 2017 was 36.0%, relatively stable compared with 37.4% for the corresponding period in 2016.

  • Operating margin for the wealth management business for the first quarter of 2017 increased to 36.7% from 28.7% for the corresponding period in 2016.
  • Operating margin for the asset management business for the first quarter of 2017 was 62.3%, compared to 106.5% for the corresponding period in 2016. The decrease was primarily due to the RMB18.5 million (US$2.7 million) in government subsidies received in the first quarter of 2017, down from RMB68.9 million in the first quarter of 2016.
  • Operating loss for internet financial service business for the first quarter of 2017 was RMB31.1 million (US$4.5 million), down from RMB52.5 million for the corresponding period of the prior year. 

Income Tax Expenses

Income tax expenses for the first quarter of 2017 were RMB61.9 million (US$9.0 million), a 16.0% increase from the corresponding period in 2016. The increase was primarily due to the combined impact of higher taxable income and a higher effective tax rate. 

Net Income

  • Net Income
    • Net income for the first quarter of 2017 was RMB215.7 million (US$31.3 million), a 12.0% increase from the corresponding period in 2016. Net margin for the first quarter of 2017 was 30.2%, compared to 31.7% for the corresponding period in 2016. Net income attributable to Noah shareholders for the first quarter of 2017 was RMB217.0 million (US$31.5 million), a 9.0% increase from the corresponding period in 2016. Net margin attributable to Noah shareholders for the first quarter of 2017 was 30.4%, compared to 32.8% for the corresponding period in 2016. Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2017 was RMB3.85 (US$0.56) and RMB3.69 (US$0.54), respectively, compared to RMB3.54 and RMB3.38, respectively, for the corresponding period in 2016
  • Non-GAAP Net Income Attributable to Noah Shareholders
    • Non-GAAP net income attributable to Noah shareholders for the first quarter of 2017 was RMB237.2 million (US$34.5 million), a 10.9% increase from the corresponding period in 2016. Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2017 was 33.3%, compared to 35.2% for the corresponding period in 2016. Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2017 was RMB4.03 (US$0.59), as compared to RMB3.63 for the corresponding period in 2016.

Balance Sheet and Cash Flow

As of March 31, 2017, the Company had RMB2,609.2 million (US$379.1 million) in cash and cash equivalents, compared to RMB2,982.5 million as of December 31, 2016 and RMB2,480.3 million as of March 31, 2016.

Cash inflow from the Company's operating activities during the first quarter of 2017 was RMB24.6 million (US$3.6 million), compared to income from operations of RMB227.3 million, mainly due to the payout of the annual bonus and a temporary increase in other current assets.

Cash outflow from the Company's investing activities during the first quarter of 2017 was RMB363.9 million (US$52.9 million), primarily due to increases in short-term and long-term investments to improve cash usage and capital management.

Cash outflow from the Company's financing activities was RMB25.7 million (US$3.7 million) in the first quarter of 2017, during which the Company's shares were bought back under an authorized share repurchase plan.

On July 8, 2016, the Company's board of directors authorized a share repurchase program of up to US$50 million worth of its issued and outstanding ADSs over the course of one year. As of March 31, 2017, the Company had repurchased 223,250 ADSs for approximately US$5.1 million under this program, inclusive of transaction charges, at an average effective price of US$22.74.

2017 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2017 will be in the range of RMB825 million to RMB860 million, an increase of 14.1% to 18.9% compared to the full year 2016. This estimate reflects management's current business outlook and is subject to change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's first quarter 2017 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

 

Conference call details

Date/Time

 

Monday, May 15, 2017 at 8:00 p.m., U.S. Eastern Time

Tuesday, May 16, 2017 at 8:00 a.m., Hong Kong Time

Dial in details


- United States Toll Free

+1-888-346-8982

- Mainland China Toll Free

4001-201203

- Hong Kong Toll Free

800-905-945

- International

+1-412-902-4272

Conference Title

Noah Holdings Limited First Quarter 2017 Earnings Call

Participant Password

Noah Holdings

A telephone replay will be available starting one hour after the end of the conference call until May 22, 2017 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10106560.

A live and archived webcast of the conference call will be available at Noah's investor relations website under the News & Events section at http://ir.noahwm.com.

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures that exclude the effects of all forms of share-based compensation. The reconciliation of these non-GAAP financial measures to the nearest GAAP measures is set forth in the table captioned "Reconciliation of GAAP to Non-GAAP Results" below.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measure used by the Company may be prepared differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

When evaluating the Company's operating performance in the periods presented, management reviewed non-GAAP net income attributable to Noah shareholders results reflecting adjustments to exclude the impact of share-based compensation to supplement U.S. GAAP financial data. As such, the Company believes that the presentation of the non-GAAP net income attributable to Noah shareholders, non-GAAP net income attributable to Noah shareholders per diluted ADS and non-GAAP net margin attributable to Noah shareholders provides important supplemental information to investors regarding financial and business trends relating to the Company's financial condition and results of operations in a manner consistent with that used by management. Pursuant to U.S. GAAP, the Company recognized significant amounts of expenses for the restricted shares and share options in the periods presented. The Company utilized the non-GAAP financial results to make financial results comparable period to period and to better understand its historical business operations.

ABOUT NOAH HOLDINGS LIMITED

Founded in 2005, Noah Holdings Limited (NYSE: NOAH) is a leading wealth and asset management service provider in China with a focus on global investment and asset allocation services for high net worth individuals and enterprises. In the first quarter of 2017, Noah distributed RMB32.7 billion (US$4.8 billion) of wealth management products. Through our subsidiary, Gopher Asset Management, we had assets under management of RMB129.6 billion (US$18.8 billion) as of March 31, 2017.

Our wealth management business primarily distributes onshore and offshore fixed income products, private equity products, secondary market products and insurance products. Noah delivers customized financial solutions to clients through a network of 1,251 relationship managers across 199 branches and sub-branches in 74 cities in China, and serves the international investment needs of its clients through wholly owned subsidiaries in Hong Kong and the United States. The Company's wealth management business had 148,505 registered clients as of March 31, 2017. Gopher Asset Management is a leading alternative asset manager in China, and manages private equity, real estate, secondary market and other investments denominated in both Renminbi and foreign currencies. We also provide internet financial services through a proprietary internet financial service platform targeting mass affluent individuals in China.

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

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the quarter ended March 31, 2017 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.8832 to US$1.00, the effective noon buying rate for March 31, 2017 as set forth in the H.10 statistical release of the Federal Reserve Board.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the outlook for 2017 and quotations from management in this announcement, as well as Noah's strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industry; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industry in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

Contacts:

Noah Holdings Limited
Steve Zeng
Noah Holdings Limited
Tel: +86-21-8035-9221
ir@noahwm.com

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

 

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)





As of





December 31,

2016


March 31,

2017


March 31,

2017





RMB


RMB


USD

Assets








Current assets:









Cash and cash equivalents


2,982,509,565


2,609,189,604


379,066,365



Restricted cash


1,000,000


1,000,000


145,281



Short-term investments


299,174,435


410,236,781


59,599,718



Accounts receivable, net of allowance for
doubtful accounts of nil at December 31,
2016 and March 31, 2017


 

204,131,815


 

206,698,310


 

30,029,392



Loans receivable


113,919,956


115,878,152


16,834,924



Amounts due from related parties


438,839,542


599,928,166


87,158,323



Factoring receivables


604,176,000


573,674,100


83,344,099



Other current assets


88,778,883


305,948,259


44,448,550



Total current assets


4,732,530,196


4,822,553,372


700,626,652











Long-term investments


346,920,327


465,155,852


67,578,430


Investment in affiliates


539,176,511


543,279,802


78,928,377


Property and equipment, net


243,489,512


246,843,188


35,861,690


Non-current deferred tax assets


55,726,799


52,577,197


7,638,482


Other non-current assets


38,646,355


38,727,876


5,626,435

Total Assets


5,956,489,700


6,169,137,287


896,260,066










Liabilities and Equity








Current liabilities:









Accrued payroll and welfare expenses


555,228,116


384,234,867


55,822,127



Income tax payable


23,161,986


81,487,108


11,838,550



Amounts due to related parties


12,273,000


12,273,000


1,783,037



Deferred revenues


93,252,362


183,354,440


26,637,965



Payable to individual investors of
factoring receivables


569,374,828


579,975,393


84,259,558



Other current liabilities


322,421,476


350,841,194


50,970,652



Convertible notes (current)[4]


-


550,656,000


80,000,000



Total current liabilities


1,575,711,768


2,142,822,002


311,311,890











Non-current uncertain tax position liabilities


4,456,335


4,449,328


646,404


Other non-current liabilities


98,945,858


92,314,427


13,411,557


Convertible notes


555,440,000


-


-


Total Liabilities


2,234,553,961


2,239,585,757


325,369,851











Mezzanine Equity - Redeemable non-
controlling Interest of Subsidiary


330,664,322


334,589,580


48,609,597

Equity


3,391,271,417


3,594,961,950


522,280,618

Total Liabilities and Equity


5,956,489,700


6,169,137,287


896,260,066


[4] Convertible bonds classified as current liabilities represent convertible senior notes which may be redeemed within one year. The holders will have the right, at the holders' option, to require Noah to repurchase for cash on February 3, 2018 or on the maturity date. Thus, it is classified in current liability as of March 31, 2017.

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)




Three months ended


March 31,


March 31,


March 31,


Change


2016


2017


2017



Revenues:

RMB


RMB


USD



Third-party revenues








   One-time commissions

228,091,653


199,785,900


29,025,148


(12.4%)

   Recurring service fees

107,031,782


135,549,199


19,692,759


26.6%

 Performance-based income

9,651,835


12,549,633


1,823,227


30.0%

   Other service fees

20,030,783


26,364,626


3,830,286


31.6%

Total third-party revenues

364,806,053


374,249,358


54,371,420


2.6%

Related party revenues








   One-time commissions

60,579,007


144,556,591


21,001,364


138.6%

   Recurring service fees

202,265,842


191,370,305


27,802,520


(5.4%)

   Performance-based income

6,997,951


79,265


11,516


(98.9%)

   Other service fees

619,353


6,876,383


999,010


1010.3%

Total related party revenues

270,462,153


342,882,544


49,814,410


26.8%

Total revenues

635,268,206


717,131,902


104,185,830


12.9%

   Less: business taxes and related
surcharges

(28,110,614)


(3,962,204)


(575,634)


(85.9%)

Net revenues

607,157,592


713,169,698


103,610,196


17.5%

Operating costs and expenses:








  Compensation and benefits








    Relationship manager compensation

(135,594,705)


(150,313,036)


(21,837,668)


10.9%

    Performance fee compensation

(3,346,509)


-


-


(100.0%)

    Other Compensations

(174,404,709)


(190,268,992)


(27,642,520)


9.1%

Total compensation and benefits

(313,345,923)


(340,582,028)


(49,480,188)


8.7%

   Selling expenses

(67,902,033)


(60,603,173)


(8,804,506)


(10.7%)

   General and administrative expenses

(50,213,661)


(59,638,162)


(8,664,308)


18.8%

   Other operating expenses

(17,298,096)


(29,445,892)


(4,277,936)


70.2%

   Government subsidies

68,941,562


33,932,025


4,929,688


(50.8%)

Total operating costs and expenses

(379,818,151)


(456,337,230)


(66,297,250)


20.1%

Income from operations

227,339,441


256,832,468


37,312,946


13.0%

Other income:








   Interest income

8,677,696


8,707,539


1,265,042


0.3%

   Interest expenses

(4,664,889)


(4,912,616)


(713,711)


5.3%

   Investment income

8,067,380


10,145,532


1,473,955


25.8%

   Other income

646,557


1,136,828


165,160


75.8%

Total other income

12,726,744


15,077,283


2,190,447


18.5%

Income before taxes and loss from equity
in affiliates

240,066,185


271,909,751


39,503,392


 

13.3%

Income tax expense

(53,394,844)


(61,915,237)


(8,995,124)


16.0%

Income from equity in affiliates

5,903,283


5,726,356


831,932


(3.0%)

Net income

192,574,624


215,720,870


31,340,201


12.0%

Less: net loss attributable to non-
controlling Interests

(6,424,676)


(5,199,594)


(755,404)


(19.1%)

Gain attributable to redeemable non-
controlling interest of Subsidiary

-


3,925,258


570,266


-

Net income attributable to Noah
Shareholders

 

198,999,300


 

216,995,206


 

31,525,338


 

9.0%









Income per ADS, basic

3.54


3.85


0.56


8.8%

Income per ADS, diluted

3.38


3.69


0.54


9.2%

Margin analysis:








Operating margin

37.4%


36.0%


36.0%



Net margin

31.7%


30.2%


30.2%



Weighted average ADS equivalent:[1]








Basic

56,176,502


56,364,758


56,364,758



Diluted

60,251,430


60,108,286


60,108,286



ADS equivalent outstanding at end of
period

 

56,214,768


 

56,415,307


 

56,415,307






[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs.

 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)





 Three months ended




 March 31,


 March 31,


March 31,


 Change


2016


2017


2017




RMB


RMB


USD



Net income

192,574,624


215,720,870


31,340,201


12.0%

Other comprehensive income, net of tax:








     Foreign currency translation
adjustments

(1,546,586)


(4,137,561)


(601,110)


167.5%

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

4,707,100


1,514,491


220,027


(67.8%)

Comprehensive income

195,735,138


213,097,800


30,959,118


8.9%

Less: Comprehensive loss attributable to
non-controlling interests

(6,436,694)


(5,315,600)


(772,257)


(17.4%)

Gain attributable to redeemable non-
controlling interest of Subsidiary

-


3,925,258


570,266


-

Comprehensive income attributable to
Noah Shareholders

202,171,832


214,488,142


31,161,108


6.1%

 

Noah Holdings Limited

 Supplemental Information

(unaudited)



 As of 


 Change


March 31, 2016


March 31, 2017








 Number of registered clients

105,557


148,505


40.7%

 Number of relationship managers

1,137


1,251


10.0%

 Number of cities under coverage

68


74


8.8%














 Three months ended


Change


March 31, 2016


March 31, 2017



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

 Number of active clients

4,948


4,362


(11.8%)

 Transaction value:






        Fixed income products

16,144


22,102


36.9%

        Private equity fund products

6,066


9,070


49.5%

        Secondary market equity fund
products

2,317


1,126


(51.4%)

        Other products

287


377


31.3%

 Total transaction value

24,813


32,675


31.7%

 Average transaction value per client

5.01


7.49


49.4%

 

 

Noah Holdings Limited

Segment Condensed Income Statements

 (unaudited)


                                                                        Three months ended March 31, 2017


Wealth
Management

 Business


Asset
Management

Business


Internet
Financial
Service
Business


Total


RMB


RMB


RMB


RMB

Revenues:








Third-party revenues








One-time commissions

199,653,023


132,877


-


199,785,900

Recurring service fees

128,155,389


7,393,810


-


135,549,199

Performance-based income

11,886,301


663,332


-


12,549,633

Other service fees

8,161,044


-


18,203,582


26,364,626

Total third-party revenues

347,855,757


8,190,019


18,203,582


374,249,358

Related party revenues








One-time commissions

144,542,049


14,542


-


144,556,591

Recurring service fees

72,785,242


118,585,063


-


191,370,305

Performance-based income

-


79,265


-


79,265

Other service fees

-


-


6,876,383


6,876,383

Total related party revenues

217,327,291


118,678,870


6,876,383


342,882,544

Total revenues

565,183,048


126,868,889


25,079,965


717,131,902

Less: business taxes and related
surcharges

(3,194,542)


 

(470,579)


 

(297,083)


 

(3,962,204)

Net revenues

561,988,506


126,398,310


24,782,882


713,169,698

Operating costs and expenses:








Compensation and benefits








Relationship manager
compensation

(148,960,020)


 

(3,000)


(1,350,016)


 

(150,313,036)

Other compensation

(116,901,365)


(39,762,494)


(33,605,133)


(190,268,992)

Total compensation and benefits

(265,861,385)


(39,765,494)


(34,955,149)


(340,582,028)

Selling expenses

(54,571,915)


(2,072,478)


(3,958,780)


(60,603,173)

General and administrative
expenses

(35,300,244)


(15,266,650)


(9,071,268)


(59,638,162)

    Other operating expenses

(12,447,000)


(9,064,259)


(7,934,633)


(29,445,892)

Government subsidies

15,412,025


18,520,000


-


33,932,025

Total operating costs and expenses

(352,768,519)


(47,648,881)


(55,919,830)


(456,337,230)

Income(loss) from operations

209,219,987


78,749,429


(31,136,948)


256,832,468

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)


         Three months ended March 31, 2016


Wealth
Management

 Business


Asset
Management

Business


Internet
Financial
Service
Business


Total


RMB


RMB


RMB


RMB









Revenues:








Third-party revenues








One-time commissions

227,814,903


276,750


-


228,091,653

Recurring service fees

93,597,180


13,434,602


-


107,031,782

Performance-based income

7,084,942


2,566,893


-


9,651,835

Other service fees

13,507,742


-


6,523,041


20,030,783

Total third-party revenues

342,004,767


16,278,245


6,523,041


364,806,053

Related party revenues








One-time commissions

59,505,300


1,073,707


-


60,579,007

Recurring service fees

82,646,476


119,619,366


-


202,265,842

Performance-based income

-


6,997,951


-


6,997,951

Other service fees

614,194


-


5,159


619,353

Total related party revenues

142,765,970


127,691,024


5,159


270,462,153

Total revenues

484,770,737


143,969,269


6,528,200


635,268,206

Less: business taxes and related
surcharges

(21,128,796)


(6,261,747)


(720,071)


(28,110,614)

Net revenues

463,641,941


137,707,522


5,808,129


607,157,592

Operating costs and expenses:








Compensation and benefits








Relationship manager
compensation

(135,564,480)


(29,308)


(917)


(135,594,705)

Performance fee compensation

-


(3,346,509)


-


(3,346,509)

Other compensation

(100,410,596)


(40,050,216)


(33,943,897)


(174,404,709)

Total compensation and benefits

(235,975,076)


(43,426,033)


(33,944,814)


(313,345,923)

Selling expenses

(58,757,267)


(1,900,708)


(7,244,058)


(67,902,033)

General and administrative expenses

(24,644,143)


(12,360,500)


(13,209,018)


(50,213,661)

Other operating expenses

(11,124,898)


(2,270,719)


(3,902,479)


(17,298,096)

Government subsidies

64,000


68,877,562


-


68,941,562

Total operating costs and expenses

(330,437,384)


8,919,602


(58,300,369)


(379,818,151)

Income(loss) from operations

133,204,557


146,627,124


(52,492,240)


227,339,441

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)



                 Three months ended


 March 31,


March 31,


 Change


2016


2017



RMB


RMB









Net income attributable to
Noah Shareholders

198,999,300


216,995,206


9.0%

Adjustment for share-based
compensation related to:






           Share options

12,366,451


12,531,277


1.3%

           Restricted shares

2,597,654


7,710,520


196.8%

Adjusted net income
attributable to Noah
Shareholders (non-GAAP)*

213,963,404


237,237,003


10.9%







Net margin

31.7%


30.2%



Adjusted net margin (non-
GAAP)*

34.2%


33.1%



Net income attributable to
Noah Shareholders per ADS,
diluted

3.38


3.69


9.2%

Adjusted net income
attributable to Noah
Shareholders per ADS,
diluted (non-GAAP)*

3.63


4.03


11.0%







*The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-first-quarter-of-2017-300457388.html

Source: Noah Holdings Limited

Related stocks: NYSE:NOAH

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