omniture

NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2023

2023-05-31 04:45 3270

SHANGHAI, May 31, 2023 /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 first quarter of 2023.

FIRST QUARTER 2023 FINANCIAL HIGHLIGHTS

  • Net revenues for the first quarter of 2023 were RMB803.5 million (US$117.0 million), a 1.0% increase from the corresponding period in 2022, primarily due to a 72.8% increase in one-time commissions, generating from more distribution of insurance products, partially offset by a 52.1% decrease in performance-based income relating to our private secondary products. Net revenues decreased by 8.9% from the fourth quarter of 2022, mainly due to decreases in one-time commissions.

(RMB millions,

except percentages)

Q1 2022



Q1 2023



YoY Change

Wealth management

578.5



586.9



1.5 %

Asset management

200.6



205.2



2.3 %

Other businesses

16.6



11.4



(31.4 %)

Total net revenues

795.7



803.5



1.0 %

  • Income from operations for the first quarter of 2023 was RMB278.9 million (US$40.6 million), an 11.1% decrease from the corresponding period in 2022, primarily due to a 61.4% increase in selling expenses, as we launched several offshore client events in the first quarter of 2023. Income from operations increased by 26.9% from the fourth quarter of 2022, primarily due to less expenses incurred compared with fourth quarter as normally we incurred more selling and general expenses in the fourth quarter.

(RMB millions,

except percentages)

Q1 2022



Q1 2023



YoY Change

Wealth management

235.4



204.5



(13.1 %)

Asset management

93.9



103.8



10.5 %

Other businesses

(15.5)



(29.4)



89.7 %

Total income from operations

313.8



278.9



(11.1 %)

  • Net income attributable to Noah shareholders for the first quarter of 2023 was RMB244.2 million (US$35.6 million), a 20.0% decrease from the corresponding period in 2022, mainly due to 1) an 11.1% decrease in income from operations and 2) less investment income and income from equity in affiliates. Net income attributable to Noah shareholders increased by 74.5% from the fourth quarter of 2022, primarily due to 1) a 26.9% increase in income from operations, 2) a 172.1% increase in interest income and 3) a non-recurring contingent litigation expenses in the amount of RMB99.0 million recorded in the fourth quarter of 2022.
  • Non-GAAP[1] net income attributable to Noah shareholders for the first quarter of 2023 was RMB239.5 million (US$34.9 million), a 23.6% decrease from the corresponding period in 2022, but a 60.6% increase from the fourth quarter of 2022. 

FIRST 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. We primarily distribute private equity, private secondary, mutual funds and other products denominated in RMB and other currencies.

  • Total number of registered clients as of March 31, 2023 was 440,664, a 6.2% increase from March 31, 2022, and a 0.8% increase from December 31, 2022.
  • Total number of active clients[2] who transacted with us during the first quarter of 2023 was 11,236, a 24.9% decrease from the first quarter of 2022, and a 12.9% decrease from the fourth quarter of 2022.
  • Aggregate value of investment products distributed during the first quarter of 2023 was RMB16.8 billion (US$2.4 billion), a 12.0% increase from the first quarter of 2022, primarily due to a 40.3% and 6.5% increase of mutual fund products and private secondary products, respectively. The aggregate value of investment products distributed decreased by 6.7% compared with the fourth quarter of 2022, due to an 18.1% and 10.3% decrease of mutual fund products and private equity products, respectively, and partially offset by a 27.5% increase of private secondary products.

Product type

Three months ended March 31,


2022


2023


(RMB in billions, except percentages)

Mutual fund products

7.1


47.4 %


10.0


59.4 %

Private secondary products 

4.0


26.9 %


4.3


25.5 %

Private equity products

3.2


21.2 %


1.3


7.8 %

Other products[3]

0.7


4.5 %


1.2


7.3 %

All products

15.0


100.0 %


16.8


100.0 %

  • Coverage network in mainland China covered 68 cities as of March 31, 2023, compared with 83 cities as of March 31, 2022 and 75 cities as of December 31, 2022, as we continue to streamline our domestic coverages.
  • Number of relationship managers was 1,327 as of March 31, 2023, a 3.6% increase from March 31, 2022, and a 4.0% increase from December 31, 2022. Among which, we had 28 overseas relationship managers as of March 31, 2023, a 64.7% increase from December 31, 2022.

[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 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.

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, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies.

  • Total assets under management as of March 31, 2023 remained relatively stable in the amount of RMB157.6 billion (US$22.9 billion), a 1.3% increase from March 31, 2022.

Investment type

As of 
December 31, 
2022



Growth


Allocation/ R

edemption


As of
March 31, 
2023


(RMB billions, except percentages)

Private equity

133.1


84.7 %


0.7


0.5


133.3


84.6 %

Public securities[4]

11.0


7.0 %


1.8


1.5


11.3


7.2 %

Real estate

6.8


4.3 %


0.1


-


6.9


4.3 %

Multi-strategies

4.8


3.1 %


-


0.1


4.7


3.0 %

Others

1.4


0.9 %


-


-


1.4


0.9 %

All Investments

157.1


100.0 %


2.6


2.1


157.6


100.0 %

Other Businesses

Our other businesses mainly aim to provide more comprehensive services and investment products to our clients.

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "For the first quarter of 2023, I am happy to see a 12.0% year-on-year increase in transaction value, driven by growth in NAV-based mutual fund product and private secondary product distributions. During the quarter, we were glad to see the gradual lift of the prolonged COVID-control measures across China followed by a full-scale reopening, and I'm confident that the Chinese economy is back on its growth mode. However, we are mindful of the global macroeconomic challenges, therefore we continue to advise our clients to adopt a "Preservation before Growth" asset allocation strategy that we advocated last year. As high net worth investors' growing demands for wealth management services are becoming more sophisticated, I'm confident that Noah will continue to win clients' trust by leveraging our robust wealth management and asset management capabilities with a client centric mindset."

[4] The asset allocation/redemption of public securities also includes market appreciation or depreciation.

FIRST QUARTER 2023 FINANCIAL RESULTS

Net Revenues

Net revenues for the first quarter of 2023 were RMB803.5 million (US$117.0 million), a 1.0% increase from the corresponding period in 2022, primarily due to a 72.8% increases in one-time commissions and partially offset by decreases in performance-based income.

  • Wealth Management Business
    • Net revenues from one-time commissions for the first quarter of 2023 were RMB173.5 million (US$25.3 million), an 87.4% increase from the corresponding period in 2022, primarily due to increases in insurance products distributed in first quarter of 2023.
    • Net revenues from recurring service fees for the first quarter of 2023 were RMB299.4 million (US$43.6 million), a 3.7% decrease from the corresponding period in 2022.
    • Net revenues from performance-based income for the first quarter of 2023 were RMB55.7 million (US$8.1 million), compared with RMB156.0 million in the corresponding period of 2022, primarily due to a decrease in performance-based income from private secondary products.
    • Net revenues from other service fees for the first quarter of 2023 were RMB58.3 million (US$8.5 million), compared with RMB19.0 million in the corresponding period in 2022, primarily due to more value-added services we offered to our high net worth clients.
  • Asset Management Business
    • Net revenues from recurring service fees for the first quarter of 2023 were RMB175.1 million (US$25.5 million), a 1.0% increase from the corresponding period in 2022 due to increase in assets under management.
    • Net revenues from performance-based income for the first quarter of 2023 were RMB27.7 million (US$4.0 million), compared with RMB18.1 million in the corresponding period of 2022. The increase was primarily due to more performance-based income realized from private equity products.
  • Other Businesses
    • Net revenues for the first quarter of 2023 were RMB11.4 million (US$1.7 million), compared with RMB16.6 million from the corresponding period in 2022.

Operating Costs and Expenses

Operating costs and expenses for the first quarter of 2023 were RMB524.6 million (US$76.4 million), an 8.9% increase from the corresponding period in 2022. Operating costs and expenses primarily consisted of compensation and benefits of RMB370.1 million (US$53.9 million), selling expenses of RMB96.7 million (US$14.1 million), general and administrative expenses of RMB45.7million (US$6.7 million), reversal of credit losses of RMB5.7 million (US$0.8 million) and other operating expenses of RMB30.8 million (US$4.5 million).

  • Operating costs and expenses for the wealth management business for the first quarter of 2023 were RMB382.4 million (US$55.7 million), an 11.5% increase from the corresponding period in 2022, primarily due to an increase in relationship manager compensation, which is in line with increased one-time commissions.
  • Operating costs and expenses for the asset management business for the first quarter of 2023 were RMB101.4 million (US$14.8 million), a 4.9% decrease from the corresponding period in 2022, primarily due to less compensation and benefits.
  • Operating costs and expenses for other businesses for the first quarter of 2023 were RMB40.8 million (US$5.9 million), a 27.0% increase from the corresponding period in 2022, primarily due to less reversal of credit losses.

Operating Margin

Operating margin for the first quarter of 2023 was 34.7%, compared with 39.4% for the corresponding period in 2022.

  • Operating margin for the wealth management business for the first quarter of 2023 was 34.8%, compared with 40.7% for the corresponding period in 2022.
  • Operating margin for the asset management business for the first quarter of 2023 was 50.6%, compared with 46.8% for the corresponding period in 2022.
  • Loss from operation for the other businesses for the first quarter of 2023 was RMB29.4 million (US$4.3 million), compared with an operating loss of RMB15.5 million for the corresponding period in 2022.

Investment Income

Investment loss for the first quarter of 2023 was RMB13.6 million (US$2.0 million), compared with investment income RMB25.4 million for the corresponding period in 2022.

Income Tax Expenses

Income tax expenses for the first quarter of 2023 were RMB69.6 million (US$10.1 million), a 10.0% decrease from the corresponding period in 2022. The decrease was primarily due to less taxable income. 

Net Income

  • Net Income
    • Net income for the first quarter of 2023 was RMB243.3 million (US$35.4 million), a 20.0% decrease from the corresponding period in 2022.
    • Net margin for the first quarter of 2023 was 30.3%, down from 38.2% for the corresponding period in 2022, as more selling expenses incurred this quarter.
    • Net income attributable to Noah shareholders for the first quarter of 2023 was RMB244.2 million (US$35.6 million), a 20.0% decrease from the corresponding period in 2022.
    • Net margin attributable to Noah shareholders for the first quarter of 2023 was 30.4%, down from 38.4% for the corresponding period in 2022.
    • Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2023 was RMB3.52 (US$0.51) and RMB3.51 (US$0.51), respectively, compared with RMB4.54 and RMB4.52 for the corresponding period in 2022, respectively.

  • Non-GAAP Net Income Attributable to Noah Shareholders
    • Non-GAAP net income attributable to Noah shareholders for the first quarter of 2023 was RMB239.5 million (US$34.9 million), a 23.6% decrease from the corresponding period in 2022, but a 60.6% increase from the fourth quarter of 2022.
    • Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2023 was 29.8%, down from 39.4% for the corresponding period in 2022.
    • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2023 was RMB3.45 (US$0.50), down from RMB4.65 for the corresponding period in 2022.

Balance Sheet and Cash Flow

As of March 31, 2023, the Company had RMB4,713.2 million (US$686.3 million) in cash and cash equivalents, compared with RMB4,403.9 million as of December 31, 2022 and RMB3,899.9 million as of March 31, 2022, respectively.

Net cash inflow from the Company's operating activities during the first quarter of 2023 was RMB585.0 million (US$85.2 million), primarily due to operating cash inflow generated by net income and collection of accounts receivables.

Net cash outflow from the Company's investing activities during the first quarter of 2023 was RMB148.7 million (US$21.6 million), primarily due to various purchase of long-term investments.

Net cash inflow from the Company's financing activities was RMB3.4 million (US$0.5 million) in the first quarter of 2023, compared to net cash outflow of RMB12.1 million in the corresponding period in 2022.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's first quarter of 2023 unaudited financial results and recent business activities.

The conference call will be accessed via Zoom webinar with the following details:

Zoom webinar details


Conference title

Noah Holdings 1Q23 Earnings Conference Call

Date/Time

 

Tuesday, May 30, 2023 at 8:00 p.m., U.S. Eastern Time

Wednesday, May 31, 2023 at 8:00 a.m., Hong Kong Time

Webinar ID:

917-0088-0901

Meeting Passcode:

173954



Dial in details


- New York:

+1 929 205 6099

- London:

+44 330 088 5830

- Singapore:

+65 3165 1065

A replay will be available on the same day of the conference call until June 7, 2023 at the Company's investor relations website under the "Announcements & Events" section at http://ir.noahgroup.com.

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 ON 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) 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. In the first quarter of 2023, Noah distributed RMB16.8 billion (US$2.4 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB157.6 billion (US$22.9 billion) as of March 31, 2023.

Noah's wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,327 relationship managers across 68 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong (China), Taiwan (China), New York, Silicon Valley and Singapore. The Company's wealth management business had 440,664 registered clients as of March 31, 2023. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in Renminbi and other currencies. Noah 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 first quarter of 2023 ended March 31, 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 RMB6.8676 to US$1.00, the effective noon buying rate for March 31, 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.

 

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

 

Noah Holdings Limited 

Condensed Consolidated Balance Sheets

(unaudited)


As of


December

31,


March 31, 


March 31, 


2022


2023


2023


RMB'000


RMB'000


USD'000

Assets







Current assets:








Cash and cash equivalents

4,403,915


4,713,215


686,297



Restricted cash

23,203


136,074


19,814



Short-term investments

315,979


316,178


46,039



Accounts receivable, net

498,106


363,890


52,986



Loans receivable, net

465,780


381,449


55,543



Amounts due from related parties

443,424


499,220


72,692



Other current assets 

166,739


199,429


29,042



Total current assets 

6,317,146


6,609,455


962,413


Long-term investments, net

774,095


851,649


124,009


Investment in affiliates

1,491,820


1,474,736


214,738


Property and equipment, net

2,486,317


2,487,886


362,264


Operating lease right-of-use assets, net

168,192


175,992


25,626


Deferred tax assets

436,441


436,446


63,551


Other non-current assets 

124,124


145,022


21,117

Total Assets

11,798,135


12,181,186


1,773,718







Liabilities and Equity







Current liabilities:








Accrued payroll and welfare

expenses 

668,953


 

740,811


 

107,870



Income tax payable

126,848


153,799


22,395



Deferred revenues

67,967


79,235


11,538



Other current liabilities

473,175


546,497


79,576



Contingent liabilities

568,018


566,005


82,417



Total current liabilities

1,904,961


2,086,347


303,796


Operating lease liabilities, non-current

83,171


94,178


13,713


Deferred tax liabilities

249,768


228,271


33,239


Other non-current liabilities

59,760


51,184


7,453


Total Liabilities 

2,297,660


2,459,980


358,201


Equity

9,500,475


9,721,206


1,415,517

Total Liabilities and Equity

11,798,135


12,181,186


1,773,718

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)


Three months ended 


March 31,


March 31,


March 31,


Change


2022


2023


2023



Revenues:

RMB'000


RMB'000


USD'000



Revenues from others:








One-time commissions

81,154


170,571


24,837


110.2 %

Recurring service fees

193,379


192,708


28,060


(0.3 %)

Performance-based income

142,911


3,430


499


(97.6 %)

Other service fees

38,760


72,866


10,610


88.0 %

Total revenues from others

456,204


439,575


64,006


(3.6 %)

Revenues from funds Gopher manages:








One-time commissions

21,155


5,896


859


(72.1 %)

Recurring service fees

293,052


283,472


41,277


(3.3 %)

Performance-based income

32,067


80,325


11,696


150.5 %

Total revenues from funds Gopher

   manages

 

346,274


 

369,693


 

53,832


 

6.8 %

Total revenues

802,478


809,268


117,838


0.8 %

Less: VAT related surcharges 

(6,786)


(5,795)


(844)


(14.6 %)

Net revenues

795,692


803,473


116,994


1.0 %

Operating costs and expenses:








Compensation and benefits








Relationship manager

compensation

 

(109,995)


 

(148,735)


 

(21,657)


 

35.2 %

Others

(247,910)


(221,371)


(32,234)


(10.7 %)

Total compensation and benefits

(357,905)


(370,106)


(53,891)


3.4 %

Selling expenses

(59,906)


(96,669)


(14,076)


61.4 %

General and administrative

   expenses 

 

(58,207)


 

(45,700)


 

(6,654)


 

(21.5 %)

Reversal of credit losses

9,198


5,698


830


(38.1 %)

Other operating expenses 

(29,635)


(30,797)


(4,484)


3.9 %

Government subsidies 

14,558


12,984


1,891


(10.8 %)

Total operating costs and

   expenses 

 

(481,897)


 

(524,590)


 

(76,384)


 

8.9 %

Income from operations 

313,795


278,883


40,610


(11.1 %)

Other income:








Interest income 

12,637


34,388


5,007


172.1 %

Investment income (loss)

25,373


(13,583)


(1,978)


N.A.

Other (expense) income

(278)


9,558


1,392


N.A.

Total other income

37,732


30,363


4,421


(19.5 %)

Income before taxes and income

   from equity in affiliates

351,527


309,246


45,031


(12.0 %)

Income tax expense

(77,336)


(69,580)


(10,132)


(10.0 %)

Income from equity in affiliates

30,020


3,669


534


(87.8 %)

Net income

304,211


243,335


35,433


(20.0 %)

Less: net loss attributable to non-

   controlling interests

 

(1,031)


 

(875)


 

(127)


 

(15.1 %)

Net income attributable to Noah

   shareholders 

 

305,242


 

244,210


 

35,560


 

(20.0 %)









Income per ADS, basic

4.54


3.52


0.51


(22.5 %)

Income per ADS, diluted

4.52


3.51


0.51


(22.3 %)

 

Margin analysis:








Operating margin

39.4 %


34.7 %


34.7 %



Net margin

38.2 %


30.3 %


30.3 %



 

Weighted average ADS

equivalent[1]:








Basic

 

67,235,270


 

69,466,932


 

69,466,932



Diluted

 

67,480,826


 

69,517,068


 

69,517,068



ADS equivalent outstanding at end

   of period

 

 

60,173,494


 

 

62,606,724


 

 

62,606,724












[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,

2022


March 31,

2023


March 31,

2023


Change


RMB'000


RMB'000


USD'000



Net income

304,211


243,335


35,433


(20.0 %)

Other comprehensive income, net of tax:








Foreign currency translation

adjustments

 

(9,148)


 

(16,834)


(2,451)


84.0 %

Comprehensive income

295,063


226,501


32,982


(23.2 %)

Less: Comprehensive loss attributable to

          non-controlling interests

(882)


(926)


(135)


5.0 %

Comprehensive income attributable to

     Noah shareholders

295,945


227,427


33,117


 

(23.2 %)









 

 

Noah Holdings Limited

Supplemental Information 

(unaudited) 


As of 




March 31, 
2022


March 31, 
2023


Change







Number of registered clients 

415,082


440,664


6.2 %

Number of relationship managers 

1,281


1,327


3.6 %

Number of cities under coverage in mainland

   China

83


68


(18.1 %)
































Three months ended 




March 31,
2022


March 31, 
2023


Change


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

percentages)

Number of active clients 

14,970


11,236


(24.9 %)

Transaction value: 






Private equity products 

3,180


1,302


(59.1 %)

Private secondary products

4,027


4,288


6.5 %

Mutual fund products 

7,110


9,975


40.3 %

Other products

679


1,233


81.7 %

Total transaction value

14,996


16,798


12.0 %

 

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 



Three months ended March 31, 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

170,571


-


-


170,571

Recurring service fees

192,708


-


-


192,708

Performance-based income

3,430


-


-


3,430

Other service fees

58,480


-


14,386


72,866

Total revenues from others

425,189


-


14,386


439,575

Revenues from funds Gopher manages:








One-time commissions

3,462


2,434


-


5,896

Recurring service fees

107,545


175,927


-


283,472

Performance-based income

52,457


27,868


-


80,325

Total revenues from funds Gopher

manages

 

163,464


 

206,229


-


369,693

Total revenues

588,653


206,229


14,386


809,268

Less: VAT related surcharges 

(1,758)


(1,023)


(3,014)


(5,795)

Net revenues

586,895


205,206


11,372


803,473

Operating costs and expenses:








Compensation and benefits








Relationship manager

compensation

 

(143,116)


 

(5,619)


 

-


 

(148,735)

Other compensations

(139,903)


(71,535)


(9,933)


(221,371)

Total compensation and benefits

(283,019)


(77,154)


(9,933)


(370,106)

Selling expenses

(71,999)


(21,291)


(3,379)


(96,669)

General and administrative

   expenses 

 

(28,789)


 

(11,371)


 

(5,540)


 

(45,700)

Reversal of credit losses

3,175


834


1,689


5,698

Other operating expenses

(6,938)


(258)


(23,601)


(30,797)

Government subsidies 

5,168


7,812


4


12,984

Total operating costs and expenses 

(382,402)


(101,428)


(40,760)


(524,590)

Income (loss) from operations

204,493


103,778


(29,388)


278,883

 

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 



Three months ended March 31, 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

81,154


-


-


81,154

Recurring service fees

193,379


-


-


193,379

Performance-based income

142,911


-


-


142,911

Other service fees

19,113


-


19,647


38,760

Total revenues from others

436,557


-


19,647


456,204

Revenues from funds Gopher

manages:








One-time commissions

11,859


9,296


-


21,155

Recurring service fees

118,871


174,181


-


293,052

Performance-based income

13,868


18,199


-


32,067

Total revenues from funds Gopher

    manages

 

144,598


 

201,676


-


 

346,274

Total revenues

581,155


201,676


19,647


802,478

Less: VAT related surcharges 

(2,711)


(1,039)


(3,036)


(6,786)

Net revenues

578,444


200,637


16,611


795,692

Operating costs and expenses:








Compensation and benefits








Relationship manager

compensation

 

(99,688)


 

(10,307)


 

-


 

(109,995)

Other compensations

(148,135)


(89,517)


(10,258)


(247,910)

Total compensation and benefits

(247,823)


(99,824)


(10,258)


(357,905)

Selling expenses

(52,043)


(4,234)


(3,629)


(59,906)

General and administrative

  expenses 

 

(42,754)


 

(10,029)


 

(5,424)


 

(58,207)

(Provision for) reversal of credit

  losses

 

(603)


 

(227)


 

10,028


 

9,198

Other operating expenses

(5,516)


(1,270)


(22,849)


(29,635)

Government subsidies 

5,639


8,885


34


14,558

Total operating costs and expenses 

(343,100)


(106,699)


(32,098)


(481,897)

Income (loss) from operations

235,344


93,938


(15,487)


313,795

 

 

Noah Holdings Limited
Supplement Revenue Information for Segment 
 (unaudited) 




Three months ended March 31, 2023



Wealth 
Management
Business


Asset 
Management
Business


Other

Businesses


Total



RMB'000


RMB'000


RMB'000


RMB'000










Revenues:









Mainland China


350,632


122,891


14,386


487,909

Hong Kong


183,064


61,469


-


244,533

Others


54,957


21,869


-


76,826

Total revenues


588,653


206,229


14,386


809,268






Three months ended March 31, 2022



Wealth 
Management
Business


Asset 
Management
Business


Other

Businesses


Total



RMB'000


RMB'000


RMB'000


RMB'000










Revenues:









Mainland China


425,237


166,774


19,647


611,658

Hong Kong


90,431


11,991


-


102,422

Others


65,487


22,911


-


88,398

Total revenues


581,155


201,676


19,647


802,478

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

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

(unaudited) [5]


Three months ended 




March 31, 


March 31, 


Change 


2022


2023




RMB'000


RMB'000









Net income attributable to Noah shareholders

305,242


244,210


(20.0 %)

Adjustment for share-based compensation

10,846


(6,189)


N.A.

Less: Tax effect of adjustments

2,607


(1,499)


N.A.

Adjusted net income attributable to Noah shareholders

    (non-GAAP)

313,481


239,520


(23.6 %)







Net margin attributable to Noah shareholders

38.4 %


30.4 %



Non-GAAP net margin attributable to Noah

    shareholders

 

39.4 %


 

29.8 %









Net income attributable to Noah shareholders per ADS,

    diluted

 

4.52


 

3.51


 

(22.3 %)

Non-GAAP net income attributable to Noah

    shareholders per ADS, diluted

 

4.65


 

3.45


 

(25.8 %)








[5]   Noah's Non-GAAP financial measures reflect the respective most directly comparable GAAP financial

measures excluding the effects of all forms of share-based compensation and net of relevant tax impact, if any.

 

 

 

Source: Noah Holdings Limited
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