SHANGHAI, August 21, 2014 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth management service provider focusing on distributing wealth management products to the high net worth population in China, today clarifies status of the asset management plan of Wanjia Win-Win Jingtai Fund Phase I to Phase IV in response to certain inaccurate reports regarding relevant topics in Chinese media.
From June 13, 2014 to June 18, 2014, Wanjia Win-Win Assets Management Co. Ltd ("Wanjia Win-Win"), a joint venture that Gopher Asset Management Co., Ltd. ("Gopher Assets"), the Company's consolidated affiliate entity, holds 35% equity interest, established the asset management plan of Wanjia Win-Win Jingtai Fund Phase I to Phase IV (the "asset management plan") with Shenzhen Jingtai Fund Management Co., Ltd. ("Jingtai Management"). The term of the plan is one year. Noble Equity Investment Fund (Shanghai) Management Co. Ltd ("Noble"), a subsidiary of the Company, is the investment advisor of the asset management plan.
Shortly after the establishment of the plan, on June 20, 2014, Wanjia Win-Win and Noble discovered that Jingtai Management violated the term and agreed investment strategy of the asset management plan by using funds under the plan for other investment projects. Wanjia Win-Win and Noble took immediate and proactive measures, including reporting Jingtai Management's potential fraudulent actions to the relevant local public security bureau, and quickly controlled and preserved funds under the plan as well as additional assets pledged by concerned counterparties sufficient to cover repayment of principal and returns of the asset management plan. To the Company's knowledge, the asset management plan will repay upon maturity or before date of maturity the expected returns and principals to its investors according to the existing investment contracts subject to completion of the criminal investigation and legal proceedings relating to Jingtai Management's potential fraud. As investment advisor, Noble, together with Wanjia Win-Win, detected mis-use of the funds by Jingtai Management at first instance and took immediate actions, which played a crucial role in safeguarding investors' interests. The Company has promptly contacted each client who has purchased this product through the Company's distribution channels about the status and the repayment plan proposed by the asset management plan. The Company does not currently expect that this incident will have any material adverse effect on its business operations or financial results.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited is a leading wealth management service provider focusing on distributing wealth management products to the high net worth population in China. Noah distributes wealth management products, including primarily fixed income products, private equity funds, private securities investment funds, insurance products and mutual funds. Noah is also equipped with asset management services capability, managing its own fund of funds and real estate fund products. With over 600 relationship managers in 57 branch offices as of June 30, 2014, Noah's total coverage network encompasses China's most economically developed regions where the high net worth population is concentrated. Through this extensive coverage network, product sophistication, and client knowledge, the Company caters to the wealth management needs of China's high net worth population. For more information please visit the Company's website at http://www.noahwm.com.
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 the full year 2014 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 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 quality 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 infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the Securities and Exchange Commission, including its annual report on Form 20-F. Noah does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and Noah undertakes no duty to update such information, except as required under applicable law.
Contacts:
Noah Holdings Limited
Jing Ou-Yang, Director of IR
Tel: +86 21 3860 2388
ir@noahwm.com
