NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2023
SHANGHAI, Nov. 30, 2023 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading wealth management service provider in China offering comprehensive global investment and asset allocation advisory services primarily for high net worth investors, today announced its unaudited financial results for the third quarter of 2023.
*THIRD QUARTER 2023 FINANCIAL HIGHLIGHTS*
· *N**et revenue**s* for the third quarter of 2023 were RMB750.0 million (US$102.8 million), a 9.6% increase from the corresponding period in 2022, mainly due to increases in one-time commissions. Net revenues decreased by 20.4% compared with the second quarter of 2023, mainly due to a decrease in distribution of insurance products.
*(RMB millions, *
*except percentages)*
Q3 2022
Q3 2023
YoY Change
Wealth management
466.0
548.8
17.8 %
Asset management
200.3
191.4
(4.4 %)
Other businesses
18.2
9.8
(46.2 %)
*Total net revenues*
684.5
750.0
9.6 %
· *Income from operations* for the third quarter of 2023 was RMB248.9 million (US$34.1 million), a 7.4% increase from the corresponding period in 2022, due to a 9.6% increase in net revenues; income from operations decreased by 28.8% compared with the second quarter of 2023, due to a 50.8% decrease in one-time commissions.
*(RMB millions, *
*except percentages)*
Q3 2022
Q3 2023
YoY Change
Wealth management
133.2
154.5
16.0 %
Asset management
117.7
106.5
(9.6 %)
Other businesses
(19.1)
(12.1)
(36.6 %)
*Total income from operations*
231.8
248.9
7.4 %
· *Net income attributable to Noah shareholders* for the third quarter of 2023 was RMB233.3 million (US$32.0 million), a 27.9% increase from the corresponding period in 2022, mainly due to a 158.0% increase in interest income as a result of higher interest rate for our US dollar cash deposits. Net income attributable to Noah shareholders decreased by 26.0% compared with the second quarter of 2023, mainly due to a 20.4% decrease in net revenues.
· *Non-GAAP^*[1]* **net income attributable to Noah shareholders* for the third quarter of 2023 was RMB232.4 million (US$31.9 million), a 21.8% increase from the corresponding period in 2022, and a 25.8% decrease from the second quarter of 2023.
*THIRD QUARTER 2023 OPERATIONAL UPDATES*
*Wealth Management Business*
We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. Noah primarily distributes private equity, private secondary, mutual funds and other products denominated in RMB and other currencies.
· *Total number of registered clients* as of September 30, 2023 was 452,222, a 4.4% increase from September 30, 2022, and a 1.3% increase from June 30, 2023.
· *Total number of active clients^*[2] **who transacted with us during the third quarter of 2023 was 9,489, a 58.1% decrease from the third quarter of 2022, and a 17.8% decrease from the second quarter of 2023.
· *A**ggregate value of **investment** products distributed *during the third quarter of 2023 was RMB22.3 billion (US$3.1 billion), a 24.2% increase from the third quarter of 2022, and a 21.2% increase from the second quarter of 2023, mainly due to an increase in the distribution of mutual fund products. *Three months ended September 30,* *2022*
*2023*
*Product type*
*(RMB in billions, except percentages)*
Mutual fund products
11.7
64.8 %
14.9
66.9 %
Private secondary products
3.3
18.5 %
5.7
25.4 %
Private equity products
2.5
13.9 %
0.7
3.1 %
Other products^**[3]**
0.5
2.8 %
1.0
4.6 %
*All products*
18.0
100.0 %
22.3
100.0 %
· *Coverage network *in mainland China covered 59 cities as of September 30, 2023, compared with 76 cities as of September 30, 2022 and 63 cities as of June 30, 2023, as we continue to streamline our domestic coverages and focus on strengthening our operations in central hub cities.
· *Number of relationship managers* was 1,408 as of September 30, 2023, a 12.0% increase from September 30, 2022, and a 2.4% increase from June 30, 2023. Among which, we had 77 overseas relationship managers as of September 30, 2023, a 37.5% increase from June 30, 2023.
*Asset Management Business*
Our asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading multi-asset manager in China with overseas offices in Hong Kong and the United States. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities to multi-strategies investments denominated in RMB and other currencies.
· *Total assets under management *as of September 30, 2023 were RMB154.9 billion (US$21.2 billion), a 1.3% decrease from June 30, 2023 and a 0.9% decrease from September 30, 2022, mainly due to exits in private equity investment products.
*Investment type*
*As of
June 30,
2023*
*
Growth*
*
Distribution/
Redemption*
*As of
September 30,
2023* *(RMB billions, except percentages)*
Private equity
132.9
84.7 %
0.2
1.4
131.7
85.0 %
Public securities^**[4]**
11.6
7.4 %
4.2
3.6
12.2
7.9 %
Real estate
6.6
4.2 %
0.3
0.6
6.3
4.0 %
Multi-strategies
4.4
2.8 %
-
0.2
4.2
2.8 %
Others
1.4
0.9 %
-
0.9
0.5
0.3 %
*All Investments*
156.9
100.0 %
4.7
6.7
154.9
100.0 %
^[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation and net of relevant tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.
^[2] "Active clients" for a given period refers to registered high net worth investors who purchase investment products distributed or receive services provided by us during that given period.
^[3] "Other products" refers to other investment products, which includes insurance products, multi-strategies products and others.
^[4] The asset distribution/redemption of public securities also includes market appreciation or depreciation.
*Other Businesses*
Our other businesses segment mainly provides more comprehensive services and investment products to our clients.
Ms. Jingbo Wang, co-founder, Chairwoman and CEO of Noah, said, "I'm pleased to report a strong quarter with net revenues increasing 9.6% year-over-year to RMB750.0 million, primarily driven by one-time commissions from the distribution of insurance products. With a robust balance sheet and nearly RMB5 billion in cash and cash equivalents, ample liquidity, and a standardized product offering, we are well-positioned to fuel future growth and execute on our strategic plans. Our clean Assets Under Advisory (AUA) with no legacy private credit or residential real estate exposure has built us a solid reputation as a trusted advisor to mandarin-speaking HNW clients, which we are leveraging to drive our global expansion, as demand for global asset allocation grows. We continue to recruit Relationship Managers in Hong Kong and Singapore; meanwhile, our client service centre in Los Angeles is up and running, and we are preparing to commence operations in Dubai. We are also offering clients sophisticated market intelligence and asset allocation strategies through our innovative 'CCI' model (composed of the Chief Investment Office, Client Strategy Office, and Investment Product & Solution department) and its solutions-driven wealth management approach. As we rapidly approach the end of the year, we are increasingly confident in our abilities to carefully navigate an increasingly complex macroeconomic environment and create value for our shareholders."
*THIRD QUARTER 2023 FINANCIAL RESULTS*
*Net Revenues*
*Net revenues* for the third quarter of 2023 were RMB750.0 million (US$102.8 million), a 9.6% increase from the corresponding period in 2022, mainly due to increases in one-time commissions.
· *Wealth Management Business*
· *Net revenues from one-time commissions* for the third quarter of 2023 were RMB198.5 million (US$27.2 million), a 115.5% increase from the corresponding period in 2022, primarily due to an increase in distribution of insurance products.
· *Net revenues from recurring service fees* for the third quarter of 2023 were RMB279.7 million (US$38.3 million), an 8.8% decrease from the corresponding period in 2022, due to a shift in product mix and clients' investment preferences, as well as less recurring service fees generated from private secondary and private equity products.
· *Net revenues from performance-based income* for the third quarter of 2023 were RMB8.8 million (US$1.2 million), a 51.3% decrease from the corresponding period of 2022, primarily due to less performance-based income from private secondary products.
· *Net revenues from other service fees* for the third quarter of 2023 were RMB61.7 million (US$8.5 million), a 25.5% increase from the corresponding period in 2022, primarily due to more value-added services Noah offered to its high net worth clients.
· *Asset Management Business*
· *Net revenues from recurring service fees *for the third quarter of 2023 were RMB186.3 million (US$25.5million), a 1.8% increase from the corresponding period in 2022, due to an increase in the amount of real estate investments managed by our Gopher New York team.
· *Net revenues from performance-based income *for the third quarter of 2023 were RMB5.1 million (US$0.7 million), a 46.3% decrease from the corresponding period in 2022, primarily due to a decrease in performance-based income from private equity investments managed by Gopher compared with the third quarter of 2022.
· *Other** Businesses*
· *Net revenues *for the third quarter of 2023 were RMB9.8 million (US$1.3 million), compared with RMB18.2 million for the corresponding period in 2022, as we continued to wind down our loan portfolio.
*Operating Costs and Expenses*
*Operating** costs and** expenses* for the third quarter of 2023 were RMB501.1 million (US$68.7 million), a 10.7% increase from the corresponding period in 2022. Operating costs and expenses primarily consisted of compensation and benefits of RMB400.8 million (US$54.9 million), selling expenses of RMB119.7 million (US$16.4 million), general and administrative expenses of RMB67.4 million (US$9.2 million), provision for credit losses of RMB0.5 million (US$0.1 million) and other operating expenses of RMB19.0 million (US$2.6 million).
· *Operating costs and expenses* *for the wealth management business* for the third quarter of 2023 were RMB394.2 million (US$54.0 million), a 18.5% increase from the corresponding period in 2022, primarily due to an increase in compensation and benefits, selling expenses and general and administrative expenses, as less expenses incurred during the corresponding quarter of the preceding year due to various pandemic restrictions.
· *Operating costs and expenses* *for the asset management business* for the third quarter of 2023 were RMB84.9 million (US$11.6 million), a 2.9% increase from the corresponding period in 2022, primarily due to increased selling expenses.
· *Operating costs and expenses* *for other businesses* for the third quarter of 2023 were RMB21.9 million (US$3.0 million), compared with RMB37.4 million from the corresponding period in 2022, due to decreased other operating expenses.
*Operating Margin*
*Operating margin *for the third quarter of 2023 was 33.2%, compared with 33.9% for the corresponding period in 2022.
· *Operating margin for the wealth management business* for the third quarter of 2023 was 28.2%, compared with 28.6% for the corresponding period in 2022.
· *Operating margin* *for the asset management business* for the third quarter of 2023 was 55.6%, compared with 58.8% for the corresponding period in 2022.
· *Loss from operation for **other businesses* for the third quarter of 2023 was RMB12.1 million (US$1.7 million), compared with an operating loss of RMB19.1 million for the corresponding period in 2022.
*Investment Income/loss*
*Investment income* for the third quarter of 2023 was RMB9.6 million (US$1.3 million), compared with investment loss of RMB7.2 million for the corresponding period in 2022.
*Income Tax Expenses*
*Income tax expense**s* for the third quarter of 2023 were RMB68.5 million (US$9.4 million), a 34.1% increase from the corresponding period in 2022, primarily due to more taxable income compared with the third quarter of 2022.
*Loss from Equity in Affiliates*
*Loss from equity in affiliates* for the third quarter of 2023 was RMB3.9 million (US$0.5 million), compared with loss from equity in affiliates of RMB22.4 million for the corresponding period in 2022, as we recorded such loss from decrease in net income of the funds of funds that we manage and invest in as the general partner or fund manager in 2022.
*Net Income*
· *Net Income*
· *Net income *for the third quarter of 2023 was RMB232.0 million (US$31.8 million), a 30.4% increase from the corresponding period in 2022.
· *Net margin *for the third quarter of 2023 was 30.9%, up from 26.0% for the corresponding period in 2022.
· *Net income attributable to Noah shareholders *for the third quarter of 2023 was RMB233.3 million (US$32.0 million), a 27.9% increase from the corresponding period in 2022.
· *Net margin attributable to Noah shareholders *for the third quarter of 2023 was 31.1%, up from 26.7% for the corresponding period in 2022.
· *Net income attributable to Noah shareholders per basic and diluted ADS* for the third quarter of 2023 was RMB3.36 (US$0.46) and RMB3.36 (US$0.46), respectively, up from RMB2.64 and RMB2.63 respectively, for the corresponding period in 2022.
· *Non-GAAP Net Income Attributable to Noah Shareholders *
· *Non-GAAP net income attributable to Noah shareholders *for the third quarter of 2023 was RMB232.4 million (US$31.9 million), a 21.8% increase from the corresponding period in 2022.
· *Non-GAAP net margin attributable to Noah shareholders *for the third quarter of 2023 was 31.0%, compared with 27.9% for the corresponding period in 2022.
· *Non-GAAP net income attributable to Noah shareholders per diluted ADS *for the third quarter of 2023 was RMB3.35 (US$0.46), up from RMB2.76 for the corresponding period in 2022.
*Balance Sheet and Cash Flow*
As of September 30, 2023, the Company had RMB4,959.6 million (US$679.8 million) in cash and cash equivalents, compared with RMB4,740.4 million as of June 30, 2023 and RMB4,312.8 million as of September 30, 2022.
Net cash inflow from the Company's operating activities during the third quarter of 2023 was RMB404.4 million (US$55.4 million), primarily due to operating cash inflow generated by net income and collection of accounts receivables.
Net cash inflow from the Company's investing activities during the third quarter of 2023 was RMB4.0 million (US$0.5 million), primarily due to collection of loan receivables.
Net cash outflow from the Company's financing activities was RMB196.3 million (US$26.9 million) in the third quarter of 2023, primarily due to payment of the final dividend.
*CONFERENCE CALL *
The Company's senior management will host an earnings conference call to discuss its Q3 Results and recent business activities. Details of the conference call are as follows:
Conference title:
Noah Holdings 3Q23 Earnings Conference Call
Date/Time:
Wednesday, November 29, 2023 at 8:00 p.m., U.S. Eastern Time
Thursday, November 30, 2023 at 9:00 a.m., Hong Kong Time
Dial in:
– Hong Kong Toll Free:
800-963976
– United States Toll Free:
1-888-317-6003
– Mainland China Toll Free:
4001-206115
– International Toll:
1-412-317-6061
Participant Password:
7559504
A telephone replay will be available starting approximately one hour after the end of the conference until December 6, 2023 at 1-877-344-7529 (US Toll Free) and 1-412-317-0088 (International Toll) with the access code 1973272.
A live and archived webcast of the conference call will be available at the Company's investor relations website under the "Financial Reports" section at http://ir.noahgroup.com.
*DISCUSSION OF NON-GAAP MEASURES*
In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation and net of tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.
The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measures used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies.
When evaluating the Company's operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company's management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.
*ABOUT NOAH HOLDINGS LIMITED*
Noah Holdings Limited (NYSE: NOAH and HKEX:6686) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. Noah is a Cayman Islands holding company and carries on business in Hong Kong as Noah Holdings Private Wealth and Asset Management Limited. In the first nine months of 2023, Noah distributed RMB57.5 billion (US$7.9 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB154.9 billion (US$21.2 billion) as of September 30, 2023.
Noah's wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah's network covers major cities in mainland China, as well as offices in Hong Kong (China), Taiwan (China), New York, Silicon Valley and Singapore. A total of 1,408 relationship managers across 59 cities provide customized financial solutions for clients through this network, and meet their international investment needs. The Company's wealth management business had 452,222 registered clients as of September 30, 2023. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. The Company also provides other services.
For more information, please visit Noah at ir.noahgroup.com.
*FOREIGN CURRENCY TRANSLATION*
In this announcement, the unaudited financial results for the third quarter of 2023 ended September 29, 2023 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.296 to US$1.00, the effective noon buying rate for September 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.
*SAFE HARBOR STATEMENT*
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These statements include, but are not limited to, estimates regarding the sufficiency of Noah's cash and cash equivalents and liquidity risk. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with investment products distributed to Noah's investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.
*Contacts: *
*Noah** Holdings Limited
*Melo Xi
Tel: +86-21-8035-8292
ir@noahgroup.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
*Noah Holdings Limited*
*Condensed Consolidated Balance Sheets*
*(unaudited)*
As of June 30,
September
30,
September
30, 2023
2023
2023 RMB'000
RMB'000
USD'000
*Assets*
Current assets:
Cash and cash equivalents
4,740,434
4,959,550
679,763
Restricted cash
143,255
153,908
21,095
Short-term investments
445,485
407,872
55,904
Accounts receivable, net
534,885
445,386
61,045
Loans receivable, net
341,083
315,785
43,282
Amounts due from related parties
429,202
406,764
55,752
Other current assets
200,588
189,473
25,969
Total current assets
6,834,932
6,878,738
942,810 Long-term investments, net
980,257
995,746
136,478 Investment in affiliates
1,464,702
1,491,173
204,382 Property and equipment, net
2,525,732
2,510,839
344,139 Operating lease right-of-use assets, net
152,040
145,410
19,930 Deferred tax assets
436,240
435,632
59,708 Other non-current assets
169,454
171,083
23,449
*Total Assets*
12,563,357
12,628,621
1,730,896
*Liabilities and Equity*
Current liabilities:
Accrued payroll and welfare expenses
562,029
545,240
74,731
Income tax payable
141,693
166,959
22,884
Deferred revenues
71,440
88,377
12,113
Dividend payable
177,502
49
7
Other current liabilities
584,384
578,296
79,262
Contingent liabilities
592,097
595,137
81,570 Total current liabilities
2,129,145
1,974,058
270,567 Operating lease liabilities, non-current
79,267
77,418
10,611 Deferred tax liabilities
230,797
229,003
31,387 Other non-current liabilities
54,495
45,058
6,176 *Total Liabilities *
2,493,704
2,325,537
318,741 *Equity*
10,069,653
10,303,084
1,412,155
*Total Liabilities and Equity*
12,563,357
12,628,621
1,730,896
*Noah Holdings Limited*
*Condensed Consolidated Income Statements*
*(In RMB'000, except for ADS data, per ADS data and percentages)*
*(unaudited)*
Three months ended
September 30,
September
30,
September 30,
Change
2022
2023
2023
*Revenues:*
RMB'000
RMB'000
USD'000
Revenues from others:
One-time commissions
92,551
199,286
27,314
115.3 %
Recurring service fees
195,429
171,408
23,493
(12.3 %)
Performance-based income
17,658
8,440
1,157
(52.2 %)
Other service fees
71,290
74,355
10,191
4.3 %
Total revenues from others
376,928
453,489
62,155
20.3 %
Revenues from funds Gopher manages:
One-time commissions
7,846
32
4
(99.6 %)
Recurring service fees
296,648
295,982
40,568
(0.2 %)
Performance-based income
10,109
5,543
760
(45.2 %)
Total revenues from funds Gopher manages
314,603
301,557
41,332
(4.1 %)
Total revenues
691,531
755,046
103,487
9.2 %
Less: VAT related surcharges
(7,063)
(5,088)
(697)
(28.0 %)
*Net revenues*
684,468
749,958
102,790
9.6 %
Operating costs and expenses:
Compensation and benefits
Relationship managers
(108,971)
(185,748)
(25,459)
70.5 %
Others
(234,055)
(215,047)
(29,475)
(8.1 %)
Total compensation and benefits
(343,026)
(400,795)
(54,934)
16.8 %
Selling expenses
(75,995)
(119,707)
(16,407)
57.5 %
General and administrative expenses
(57,511)
(67,407)
(9,239)
17.2 %
Reversal of credit losses
5,274
525
72
(90.0 %)
Other operating expenses
(25,084)
(18,982)
(2,602)
(24.3 %)
Government subsidies
43,645
105,297
14,432
141.3 %
Total operating costs and expenses
(452,697)
(501,069)
(68,678)
10.7 %
*Income from operations *
231,771
248,889
34,112
7.4 %
Other income:
Interest income
16,847
43,465
5,957
158.0 %
Investment (loss) income
(7,233)
9,640
1,321
N.A.
Other income
10,066
2,446
335
(75.7 %)
Total other income
19,680
55,551
7,613
182.3 %
Income before taxes and income from equity in affiliates
251,451
304,440
41,725
21.1 %
Income tax expense
(51,078)
(68,499)
(9,389)
34.1 %
Loss from equity in affiliates
(22,406)
(3,897)
(534)
(82.6 %)
*Net income*
177,967
232,044
31,802
30.4 %
Less: net loss attributable to non-controlling interests
(4,448)
(1,282)
(176)
(71.2 %)
*Net income attributable to Noah shareholders *
182,415
233,326
31,978
27.9 %
Income per ADS, basic
2.64
3.36
0.46
27.3 %
Income per ADS, diluted
2.63
3.36
0.46
27.8 %
*Margin analysis:*
Operating margin
33.9 %
33.2 %
33.2 %
Net margin
26.0 %
30.9 %
30.9 %
Weighted average ADS
equivalent^[1]:
Basic
69,212,818
69,472,282
69,472,282
Diluted
69,255,667
69,485,287
69,485,287
ADS equivalent outstanding at
end of period
62,558,122
63,154,215
63,154,215
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs.
*Noah Holdings Limited *
*Condensed Comprehensive Income Statements *
*(unaudited)*
Three months ended
September
30,
September 30,
September
30,
Change 2022
2023
2023
RMB'000
RMB'000
USD'000
*Net income*
177,967
232,044
31,802
30.4 %
Other comprehensive income, net of tax:
Foreign currency translation adjustments
107,640
21,405
2,934
(80.1 %)
*Comprehensive income*
285,607
253,449
34,736
(11.3 %)
Less: Comprehensive loss attributable
to non-controlling interests
(4,428)
(1,169)
(160)
73.6 %
*Comprehensive income attributable to Noah **s**hareholders*
290,035
254,618
34,896
(12.2 %)
*Noah Holdings Limited*
*Supplemental Information *
*(unaudited) *
As of
September 30,
2022
September 30,
2023
Change
Number of registered clients
433,250
452,222
4.4 %
Number of relationship managers
1,257
1,408
12.0 %
Number of cities in mainland China under
coverage
76
59
(22.4 %)
Three months ended
September 30,
2022
September 30,
2023
Change (in millions of RMB, except number of active clients and
percentages)
Number of active clients
22,641
9,489
(58.1 %)
Transaction value:
Private equity products
2,487
693
(72.1 %)
Private secondary products
3,326
5,670
70.5 %
Mutual fund products
11,650
14,929
28.1 %
Other products
507
1,024
102.1 %
Total transaction value
17,970
22,316
24.2 %
*Noah Holdings Limited*
*Segment Condensed Income Statements *
*(unaudited)* Three months ended September 30, 2023 Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total RMB'000
RMB'000
RMB'000
RMB'000
*Revenues:*
Revenues from others
One-time commissions
199,286
-
-
199,286
Recurring service fees
171,408
-
-
171,408
Performance-based income
8,440
-
-
8,440
Other service fees
61,915
-
12,440
74,355
Total revenues from others
441,049
-
12,440
453,489
Revenues from funds Gopher manages
One-time commissions
-
32
-
32
Recurring service fees
109,368
186,614
-
295,982
Performance-based income
405
5,138
-
5,543
Total revenues from funds Gopher manages
109,773
191,784
-
301,557
Total revenues
550,822
191,784
12,440
755,046
Less: VAT related surcharges
(2,074)
(389)
(2,625)
(5,088)
*Net revenues*
548,748
191,395
9,815
749,958
Operating costs and expenses:
Compensation and benefits
Relationship managers
(179,854)
(5,894)
-
(185,748)
Others
(144,256)
(64,041)
(6,750)
(215,047)
Total compensation and benefits
(324,110)
(69,935)
(6,750)
(400,795)
Selling expenses
(94,088)
(18,723)
(6,896)
(119,707)
General and administrative expenses
(53,401)
(9,217)
(4,789)
(67,407)
(Provision for) reversal of credit losses
(894)
(400)
1,819
525
Other operating expenses
(11,677)
(298)
(7,007)
(18,982)
Government subsidies
89,925
13,656
1,716
105,297
Total operating costs and expenses
(394,245)
(84,917)
(21,907)
(501,069)
*Income (loss) from operations*
154,503
106,478
(12,092)
248,889
*Noah Holdings Limited *
*Segment Condensed Income Statements *
*(unaudited) *
Three months ended September 30, 2022 Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total RMB'000
RMB'000
RMB'000
RMB'000
*Revenues:*
Revenues from others
One-time commissions
92,551
-
-
92,551
Recurring service fees
195,429
-
-
195,429
Performance-based income
17,658
-
-
17,658
Other service fees
49,368
-
21,922
71,290
Total revenues from others
355,006
-
21,922
376,928
Revenues from funds Gopher manages
One-time commissions
-
7,846
-
7,846
Recurring service fees
112,636
184,012
-
296,648
Performance-based income
515
9,594
-
10,109
Total revenues from funds Gopher manages
113,151
201,452
-
314,603
Total revenues
468,157
201,452
21,922
691,531
Less: VAT related surcharges
(2,212)
(1,139)
(3,712)
(7,063)
*Net revenues*
465,945
200,313
18,210
684,468
Operating costs and expenses:
Compensation and benefits
Relationship managers
(103,275)
(5,696)
-
(108,971)
Others
(165,245)
(58,758)
(10,052)
(234,055)
Total compensation and benefits
(268,520)
(64,454)
(10,052)
(343,026)
Selling expenses
(65,988)
(8,796)
(1,211)
(75,995)
General and administrative expenses
(39,345)
(10,947)
(7,219)
(57,511)
Reversal of (provision for) credit losses
931
(14)
4,357
5,274
Other operating expenses
(1467)
(357)
(23,260)
(25,084)
Government subsidies
41,610
2,005
30
43,645
Total operating costs and expenses
(332,779)
(82,563)
(37,355)
(452,697)
*Income (loss) from operations*
133,166
117,750
(19,145)
231,771
*Noah Holdings Limited*
*Supplement Revenue Information by Geography*
*(unaudited)* Three months ended September 30, 2023 Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total RMB'000
RMB'000
RMB'000
RMB'000
*Revenues:*
Mainland China
333,911
116,355
12,440
462,706
Hong Kong
165,361
42,668
-
208,029
Others
51,550
32,761
-
84,311
*Total revenues*
*550,822*
*191,784*
*12,440*
*755,046*
Three months ended September 30, 2022 Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total RMB'000
RMB'000
RMB'000
RMB'000
*Revenues:*
Mainland China
302,088
173,771
21,922
497,781
Hong Kong
125,240
6,945
-
132,185
Others
40,829
20,736
-
61,565
*Total revenues*
*468,157*
*201,452*
*21,922*
*691,531*
*Noah Holdings Limited*
*Reconciliation of GAAP to Non-GAAP Results *
*(In RMB, except for per ADS data and percentages) *
*(unaudited) *
Three months ended
September
30,
September
30,
Change 2022
2023
RMB'000
RMB'000
Net income attributable to Noah shareholders
182,415
233,326
27.9 %
Adjustment for share-based compensation
11,148
(1,161)
N.A.
Less: tax effect of adjustments
2,684
(281)
N.A.
Adjusted net income attributable to Noah shareholders (non-GAAP)
190,879
232,446
21.8 %
Net margin attributable to Noah shareholders
26.7 %
31.1 %
Non-GAAP net margin attributable to Noah shareholders
27.9 %
31.0 %
Net income attributable to Noah shareholders per ADS, diluted
2.63
3.36
27.8 %
Non-GAAP net income attributable to Noah shareholders per ADS, diluted
2.76
3.35
21.4 %