SHANGHAI, Aug. 28,
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 second quarter of 2023.
SECOND QUARTER 2023 FINANCIAL HIGHLIGHTS
- Net revenues for the second quarter of
2023 were RMB941.8 million
(US$129.9 million), a 27.6% increase
from the corresponding period in 2022, and a 17.2% increase from
the first quarter of 2023, mainly
due to an increase in distribution of insurance products.
(RMB
millions,
except
percentages)
|
Q2 2022
|
|
|
Q2 2023
|
|
|
YoY Change
|
Wealth
management
|
508.6
|
|
|
745.3
|
|
|
46.5 %
|
Asset
management
|
210.3
|
|
|
183.4
|
|
|
(12.8 %)
|
Other
businesses
|
19.2
|
|
|
13.1
|
|
|
(31.6 %)
|
Total net
revenues
|
738.1
|
|
|
941.8
|
|
|
27.6 %
|
- Income from operations for the second quarter of 2023
was RMB349.4 million (US$48.2 million), an 8.1% increase from the
corresponding period in 2022, mainly due to a 27.6% increase in net
revenue and partially offset by a 42.7% increase in total operating
cost and expenses as less expenses incurred in last second quarter
due to various pandemic restrictions. Income from operations
increased by 25.3% compared with the first quarter of 2023, mainly
due to a 17.2% increase in net revenues and various cost control
measures implemented in the second quarter of 2023.
(RMB
millions,
except
percentages)
|
Q2 2022
|
|
|
Q2 2023
|
|
|
YoY Change
|
Wealth
management
|
193.8
|
|
|
300.2
|
|
|
54.9 %
|
Asset
management
|
142.6
|
|
|
80.9
|
|
|
(43.3 %)
|
Other
businesses
|
(13.3)
|
|
|
(31.7)
|
|
|
138.3 %
|
Total income from
operations
|
323.1
|
|
|
349.4
|
|
|
8.1 %
|
- Net income attributable to Noah shareholders for
the second quarter of 2023 was RMB315.4
million (US$43.5 million), a
9.6% decrease from the corresponding period in 2022, mainly due to
a 97.7% decrease in income from equity in affiliates as we recorded
a gain of RMB69.2 million from the
second quarter of 2022, resulting from net book value increases in
certain offshore private equity funds managed by Gopher. Net income
attributable to Noah shareholders increased by 29.2% compared with
the first quarter of 2023, mainly due to a 25.3% increase in income
from operations and a 69.7% increase in other income.
- Non-GAAP[1] net income attributable
to Noah shareholders for the second quarter of 2023 was
RMB313.1 million (US$43.2 million), an 11.8% decrease from the
corresponding period in 2022, and a 30.7% increase from the first
quarter of 2023.
[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.
|
SECOND 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
June 30, 2023 was 446,557, a 6.7%
increase from June 30, 2022, and a
1.3% increase from March 31,
2023.
- Total number of active
clients[2] who transacted with us during
the second quarter of 2023 was 11,548, a 10.2% decrease from the
second quarter of 2022, and a 2.8% increase from the first quarter
of 2023.
- Aggregate value of
investment products distributed during the
second quarter of 2023 was RMB18.4
billion (US$2.5
billion), a 4.7% decrease from the second quarter of
2022, mainly due to an 84.2% decrease in distribution of private
equity products, as we maintain a cautious approach to fundraising
and investment allocation for our domestic private equity
investments, and partially offset by a 79.3% increase in
distribution of private secondary products. The aggregate value of
investment products distributed increased by 9.6% from the first
quarter of 2023, mainly due to increases in the distribution of
mutual fund products.
|
Three months ended
June 30,
|
|
2022
|
|
2023
|
Product
type
|
(RMB in billions,
except percentages)
|
Mutual fund
products
|
12.2
|
|
63.1 %
|
|
12.0
|
|
65.4 %
|
Private
secondary products
|
2.4
|
|
12.4 %
|
|
4.3
|
|
23.3 %
|
Private equity
products
|
3.9
|
|
20.3 %
|
|
0.6
|
|
3.3 %
|
Other
products[3]
|
0.8
|
|
4.2 %
|
|
1.5
|
|
8.0 %
|
All
products
|
19.3
|
|
100.0 %
|
|
18.4
|
|
100.0 %
|
- Coverage network in mainland
China covered 63 cities as of June 30, 2023, compared with 79 cities as of
June 30, 2022 and 68 cities as of
March 31, 2023, as we continue to streamline our domestic
coverages.
- Number of relationship managers was 1,375 as of
June 30, 2023, a 9.6% increase from
June 30, 2022, and a 3.6% increase
from March 31, 2023. Among which, we
had 56 overseas relationship managers as of June 30, 2023, a 100.0% increase from
March 31, 2023.
[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 June 30, 2023 were RMB156.9 billion (US$21.6
billion), a 0.5% decrease from March
31, 2023 and a 0.9% increase from June 30, 2022.
Investment
type
|
As of
March 31,
2023
|
|
Growth
|
|
Distribution/
Redemption
|
|
As of
June 30,
2023
|
|
(RMB billions,
except percentages)
|
Private
equity
|
133.3
|
|
84.6 %
|
|
0.6
|
|
1.0
|
|
132.9
|
|
84.7 %
|
Public
securities[4]
|
11.3
|
|
7.2 %
|
|
1.8
|
|
1.5
|
|
11.6
|
|
7.4 %
|
Real estate
|
6.9
|
|
4.3 %
|
|
-
|
|
0.3
|
|
6.6
|
|
4.2 %
|
Multi-strategies
|
4.7
|
|
3.0 %
|
|
-
|
|
0.3
|
|
4.4
|
|
2.8 %
|
Others
|
1.4
|
|
0.9 %
|
|
-
|
|
-
|
|
1.4
|
|
0.9 %
|
All
Investments
|
157.6
|
|
100.0 %
|
|
2.4
|
|
3.1
|
|
156.9
|
|
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 half of 2023, I am happy to see a
13.8% period-to-period increase in net revenues, driven by a 104.1%
growth in revenues generated from our overseas business, accounting
for 41.0% of the group's net revenues compared to 22.8% in the
first half of 2022, as we continue to successfully execute our
globalization strategy. During the second quarter, we were glad to
launch the grand opening of our new headquarter, Noah Wealth
Centre, which provides a client-centric private banking experience
for Noah's global clients. Since 2019, we winded down all of our
domestic non-standardized single counterparty private credit
products, including domestic residential real estate funds, which
was proven to have effectively safeguarded our clients' wealth
amidst the recent challenges faced by this asset class. Our
continued devotion in strengthening investment research
capabilities and shield our clients' hard-earned capital through
optimized asset allocation advice is what distinguish us as a
trusted advisor for our clients."
SECOND QUARTER 2023 FINANCIAL RESULTS
Net Revenues
Net revenues for the second quarter of 2023 were
RMB941.8 million (US$129.9 million), a 27.6% increase from the
corresponding period in 2022, primarily due to an increase in
distribution of insurance products.
- Wealth Management Business
-
- Net revenues from one-time commissions for the second
quarter of 2023 were RMB403.9 million
(US$55.7 million), a 127.2% 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
second quarter of 2023 were RMB269.3
million (US$37.1 million), a
7.3% decrease from the corresponding period in 2022, as less
recurring service fees generated from private secondary
products.
- Net revenues from performance-based income for the
second quarter of 2023 were RMB21.4
million (US$2.9 million), a
61.4% increase from the corresponding period of 2022, primarily due
to more performance-based income from offshore private equity
products.
- Net revenues from other service fees for the
second quarter of 2023 were RMB50.7
million (US$7.0 million), an
86.3% increase from 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
second quarter of 2023 were RMB176.8
million (US$24.4 million), a
4.9% increase from the corresponding period in 2022 due to increase
in assets under management.
- Net revenues from performance-based income for the
second quarter of 2023 were RMB6.5
million (US$0.9 million),
compared with RMB12.6 million in the
corresponding period of 2022. The decrease was primarily due to
less performance-based income realized from private equity
product.
- Other Businesses
-
- Net revenues for the second quarter of 2023 were
RMB13.1 million (US$1.8 million), compared with RMB19.2 million for the corresponding period in
2022.
[4]
The asset distribution/redemption of public securities
also includes market appreciation or depreciation.
|
Operating Costs and Expenses
Operating costs
and expenses for the second quarter of 2023
were RMB592.3 million (US$81.7 million), a 42.7% increase from the
corresponding period in 2022. Operating costs and expenses
primarily consisted of compensation and benefits of RMB385.1 million (US$53.1
million), selling expenses of RMB112.0 million (US$15.4
million), general and administrative expenses of
RMB64.0 million (US$8.8 million), provision of credit losses of
RMB0.2 million and other operating
expenses of RMB37.1 million
(US$5.1 million).
- Operating costs and expenses for the wealth
management business for the second quarter of 2023 were
RMB445.1 million (US$61.4 million), a 41.4% 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 in last second
quarter due to various pandemic restrictions.
- Operating costs and expenses for the asset management
business for the second quarter of 2023 were RMB102.5 million (US$14.1
million), a 51.2% increase from the corresponding period in
2022, primarily due to decreased selling and general and
administrative expenses due to various pandemic restrictions for
the corresponding period in 2022.
- Operating costs and expenses for other businesses
for the second quarter of 2023 were RMB44.8 million (US$6.2 million), compared with RMB32.4 million from the corresponding period in
2022, mainly due to increased depreciation expenses as we moved
into our new headquarter premises in Shanghai in May.
Operating Margin
Operating margin for the second quarter of 2023 was
37.1%, decreased from 43.8% for the corresponding period in
2022.
- Operating margin for the wealth management business for
the second quarter of 2023 was 40.3%, compared with 38.1%% for the
corresponding period in 2022.
- Operating margin for the asset management
business for the second quarter of 2023 was 44.1%,
compared with 67.8% for the corresponding period in 2022.
- Loss from operation for other
businesses for the second quarter of 2023 was
RMB31.7 million (US$4.4 million), compared with an operating loss
of RMB13.3 million for the
corresponding period in 2022.
Investment Income/loss
Investment loss for the second quarter of 2023 was
RMB4.0 million (US$0.5 million), compared with investment
income RMB5.2 million for the
corresponding period in 2022.
Income Tax Expenses
Income tax expenses for the second quarter of
2023 were RMB90.2 million
(US$12.4 million), a 15.4% increase
from the corresponding period in 2022, primarily due to more
taxable income compared with the second quarter of 2022.
Income from Equity in Affiliates
Income from equity in affiliates for the second
quarter of 2023 was RMB1.6 million
(US$0.2 million), a 97.7% decrease
from the corresponding period in 2022, as we recorded a gain of
RMB69.2 million from the second
quarter of 2022, resulting from net book value increases in certain
offshore private equity funds managed by Gopher.
Net Income
- Net Income
-
- Net income for the second quarter of 2023 was
RMB312.3 million (US$43.1 million), a 10.5% decrease from the
corresponding period in 2022.
- Net margin for the second quarter of 2023 was
33.2%, down from 47.3% for the corresponding period in 2022.
- Net income attributable to Noah shareholders for
the second quarter of 2023 was RMB315.4
million (US$43.5 million), a
9.6% decrease from the corresponding period in 2022.
- Net margin attributable to Noah shareholders for
the second quarter of 2023 was 33.5%, down from 47.3% for the
corresponding period in 2022.
- Net income attributable to Noah shareholders per basic and
diluted ADS for the second quarter of 2023 was
RMB4.54 (US$0.63) and RMB4.54 (US$0.63),
respectively, down from RMB5.19 and
RMB5.18 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 second quarter of 2023 was
RMB313.1 million (US$43.2 million), an 11.8% decrease from the
corresponding period in 2022.
- Non-GAAP net margin attributable to Noah shareholders
for the second quarter of 2023 was 33.2%, compared with 48.1%
for the corresponding period in 2022.
- Non-GAAP net income attributable to Noah shareholders per
diluted ADS for the second quarter of 2023 was
RMB4.51 (US$0.62), down from RMB5.28 for the corresponding period in
2022.
Balance Sheet and Cash Flow
As of June 30, 2023, the Company
had RMB4,740.4 million (US$653.7 million) in cash and cash
equivalents, compared with RMB 4,713.2
million as of March 31, 2023
and RMB3,608.0 million as of
June 30, 2022.
Net cash inflow from the Company's operating activities during
the second quarter of 2023 was RMB176.4
million (US$24.3 million),
primarily due to net income earned for the second quarter of
2023.
Net cash outflow from the Company's investing activities during
the second quarter of 2023 was RMB329.2
million (US$45.4 million),
primarily due to several investments made.
Net cash inflow from the Company's financing activities was
RMB87.0 million (US$12.0 million) in the second quarter of 2023,
primarily due to consolidation of one investment fund that Gopher
manages and accounts for those limited partners' capital
contributions as financing activity.
CONFERENCE CALL
Following the announcement of the Q2 and Interim Results, the
Company's senior management will host a combined English and
Chinese language earnings conference call to discuss its Q2 and
Interim Results and recent business activities. The conference call
may be accessed with the following details:
Dial-in
details:
|
|
Conference
Title:
|
Noah
Holdings 2Q23 Earnings
Conference Call
|
Date/Time:
|
Monday, August 28, 2023
at 8:00 p.m., U.S. Eastern Time
Tuesday, August
29, 2023
at 8:00 a.m., Hong Kong Time
|
Dial
in:
|
|
- Hong Kong Toll
Free
|
800-963-976
|
- United States
Toll Free
|
+1-888-317-6003
|
- Mainland China
Toll Free
|
4001-206-115
|
- International
|
+1-412-317-6061
|
Participant
Password:
|
7932172
|
A telephone replay will be available starting approximately one
hour after the end of the conference call until September 4, 2023 at +1-877-344-7529 (US Toll
Free) or +1-412-317-0088 (International Toll) with the access code
9237815.
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
half of 2023, Noah distributed RMB35.2
billion (US$4.9 billion) of
investment products. Through Gopher Asset Management, Noah had
assets under management of RMB156.9
billion (US$21.6 billion) as
of June 30, 2023.
Noah's wealth management business primarily distributes private
equity, private secondary, mutual fund and other products
denominated in RMB and other currencies. Noah delivers customized
financial solutions to clients through a network of 1,375
relationship managers across 63 cities in mainland China, and serves the international investment
needs of its clients through offices in Hong Kong (China), Taiwan (China), New
York, Silicon Valley and Singapore. The Company's wealth management
business had 446,557 registered clients as of June 30, 2023. Through Gopher Asset Management,
Noah manages private equity, public securities, real
estate, multi-strategy and other investments denominated
in RMB and other currencies. Noah also provides other
businesses.
For more information, please visit Noah at
ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
second quarter of 2023 ended June 30,
2023 are stated in RMB. This announcement contains currency
conversions of certain RMB amounts into US$ 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 RMB7.2513 to US$1.00, the effective noon buying rate for
June 30, 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
|
|
March 31,
|
|
June
30,
|
|
June
30,
|
|
2023
|
|
2023
|
|
2023
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
4,713,215
|
|
4,740,434
|
|
653,736
|
|
|
Restricted
cash
|
136,074
|
|
143,255
|
|
19,756
|
|
|
Short-term
investments
|
316,178
|
|
445,485
|
|
61,435
|
|
|
Accounts receivable,
net
|
363,890
|
|
534,885
|
|
73,764
|
|
|
Amounts due from
related parties
|
499,220
|
|
429,202
|
|
59,190
|
|
|
Loans receivable,
net
|
381,449
|
|
341,083
|
|
47,037
|
|
|
Other current
assets
|
199,429
|
|
200,588
|
|
27,662
|
|
|
Total current
assets
|
6,609,455
|
|
6,834,932
|
|
942,580
|
|
Long-term investments,
net
|
851,649
|
|
980,257
|
|
135,184
|
|
Investment in
affiliates
|
1,474,736
|
|
1,464,702
|
|
201,992
|
|
Property and equipment,
net
|
2,487,886
|
|
2,525,732
|
|
348,314
|
|
Operating lease
right-of-use assets, net
|
175,992
|
|
152,040
|
|
20,967
|
|
Deferred tax
assets
|
436,446
|
|
436,240
|
|
60,160
|
|
Other non-current
assets
|
145,022
|
|
169,454
|
|
23,369
|
Total
Assets
|
12,181,186
|
|
12,563,357
|
|
1,732,566
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
740,811
|
|
562,029
|
|
77,507
|
|
|
Income tax
payable
|
153,799
|
|
141,693
|
|
19,540
|
|
|
Deferred
revenues
|
79,235
|
|
71,440
|
|
9,852
|
|
|
Dividend
payable
|
-
|
|
177,502
|
|
24,479
|
|
|
Contingent
liabilities
|
566,005
|
|
592,097
|
|
81,654
|
|
|
Other current
liabilities
|
546,497
|
|
584,384
|
|
80,590
|
|
Total current
liabilities
|
2,086,347
|
|
2,129,145
|
|
293,622
|
|
Deferred tax
liabilities
|
228,271
|
|
230,797
|
|
31,828
|
|
Operating lease
liabilities, non-current
|
94,178
|
|
79,267
|
|
10,931
|
|
Other non-current
liabilities
|
51,184
|
|
54,495
|
|
7,515
|
|
Total
Liabilities
|
2,459,980
|
|
2,493,704
|
|
343,896
|
|
Equity
|
9,721,206
|
|
10,069,653
|
|
1,388,670
|
Total Liabilities
and Equity
|
12,181,186
|
|
12,563,357
|
|
1,732,566
|
Noah Holdings Limited
|
Condensed Consolidated Income
Statements
|
(In RMB'000, except for ADS data, per ADS data and
percentages)
|
(unaudited)
|
|
Three months
ended
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
Change
|
|
2022
|
|
2023
|
|
2023
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
177,339
|
|
399,521
|
|
55,096
|
|
125.3 %
|
Recurring service
fees
|
184,300
|
|
176,355
|
|
24,320
|
|
(4.3 %)
|
Performance-based
income
|
9,481
|
|
4,328
|
|
597
|
|
(54.4 %)
|
Other service
fees
|
52,521
|
|
64,114
|
|
8,842
|
|
22.1 %
|
Total revenues from
others
|
423,641
|
|
644,318
|
|
88,855
|
|
52.1 %
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
30,893
|
|
5,982
|
|
825
|
|
(80.6 %)
|
Recurring service
fees
|
277,359
|
|
271,033
|
|
37,377
|
|
(2.3 %)
|
Performance-based
income
|
16,533
|
|
23,635
|
|
3,259
|
|
43.0 %
|
Total revenues from
funds Gopher
manages
|
324,785
|
|
300,650
|
|
41,461
|
|
(7.4 %)
|
Total
revenues
|
748,426
|
|
944,968
|
|
130,316
|
|
26.3 %
|
Less: VAT related
surcharges
|
(10,284)
|
|
(3,211)
|
|
(443)
|
|
(68.8 %)
|
Net revenues
|
738,142
|
|
941,757
|
|
129,873
|
|
27.6 %
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(131,519)
|
|
(180,304)
|
|
(24,865)
|
|
37.1 %
|
Others
|
(226,286)
|
|
(204,798)
|
|
(28,243)
|
|
(9.5 %)
|
Total compensation and
benefits
|
(357,805)
|
|
(385,102)
|
|
(53,108)
|
|
7.6 %
|
Selling
expenses
|
(70,307)
|
|
(112,003)
|
|
(15,446)
|
|
59.3 %
|
General and
administrative
expenses
|
(35,649)
|
|
(63,983)
|
|
(8,824)
|
|
79.5 %
|
Reversal of (provision
for) credit
losses
|
5,788
|
|
(220)
|
|
(30)
|
|
N.A.
|
Other operating
expenses
|
(22,677)
|
|
(37,078)
|
|
(5,113)
|
|
63.5 %
|
Government
subsidies
|
65,653
|
|
6,048
|
|
834
|
|
(90.8 %)
|
Total operating costs
and expenses
|
(414,997)
|
|
(592,338)
|
|
(81,687)
|
|
42.7 %
|
Income from operations
|
323,145
|
|
349,419
|
|
48,186
|
|
8.1 %
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
17,681
|
|
39,684
|
|
5,473
|
|
124.4 %
|
Investment income
(loss)
|
5,174
|
|
(3,976)
|
|
(548)
|
|
N.A.
|
Other
income
|
11,849
|
|
15,821
|
|
2,182
|
|
33.5 %
|
Total other
income
|
34,704
|
|
51,529
|
|
7,107
|
|
48.5 %
|
Income before taxes and
income from
equity in affiliates
|
357,849
|
|
400,948
|
|
55,293
|
|
12.0 %
|
Income tax
expense
|
(78,164)
|
|
(90,213)
|
|
(12,441)
|
|
15.4 %
|
Income from equity in
affiliates
|
69,203
|
|
1,561
|
|
215
|
|
(97.7 %)
|
Net income
|
348,888
|
|
312,296
|
|
43,067
|
|
(10.5 %)
|
Less: net loss
attributable to non-
controlling interests
|
(117)
|
|
(3,132)
|
|
(432)
|
|
2576.9 %
|
Net income attributable to Noah
shareholders
|
349,005
|
|
315,428
|
|
43,499
|
|
(9.6 %)
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
5.19
|
|
4.54
|
|
0.63
|
|
(12.5 %)
|
Income per ADS,
diluted
|
5.18
|
|
4.54
|
|
0.63
|
|
(12.4 %)
|
Margin analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
43.8 %
|
|
37.1 %
|
|
37.1 %
|
|
|
Net margin
|
47.3 %
|
|
33.2 %
|
|
33.2 %
|
|
|
Weighted average ADS
equivalent[1]:
|
|
|
|
|
|
|
|
Basic
|
67,245,724
|
|
69,469,110
|
|
69,469,110
|
|
|
Diluted
|
67,310,698
|
|
69,492,786
|
|
69,492,786
|
|
|
ADS equivalent
outstanding at end of
period
|
60,222,116
|
|
63,137,912
|
|
63,137,912
|
|
|
|
|
|
|
|
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs.
|
Noah Holdings Limited
|
Condensed Consolidated Income
Statements
|
(In RMB'000, except for USD data, per ADS data and
percentages)
|
(unaudited)
|
|
Six months
ended
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
Change
|
|
2022
|
|
2023
|
|
2023
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
258,493
|
|
570,092
|
|
78,619
|
|
120.5 %
|
Recurring service
fees
|
377,679
|
|
369,063
|
|
50,896
|
|
(2.3 %)
|
Performance-based income
|
152,392
|
|
7,758
|
|
1,070
|
|
(94.9 %)
|
Other service
fees
|
91,281
|
|
136,980
|
|
18,890
|
|
50.1 %
|
Total revenues from
others
|
879,845
|
|
1,083,893
|
|
149,475
|
|
23.2 %
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
52,048
|
|
11,878
|
|
1,638
|
|
(77.2 %)
|
Recurring service
fees
|
570,411
|
|
554,505
|
|
76,470
|
|
(2.8 %)
|
Performance-based
income
|
48,600
|
|
103,960
|
|
14,337
|
|
113.9 %
|
Total revenues from
funds
Gopher manages
|
671,059
|
|
670,343
|
|
92,445
|
|
(0.1 %)
|
Total
revenues
|
1,550,904
|
|
1,754,236
|
|
241,920
|
|
13.1 %
|
Less: VAT related
surcharges
|
(17,070)
|
|
(9,006)
|
|
(1,242)
|
|
(47.2 %)
|
Net revenues
|
1,533,834
|
|
1,745,230
|
|
240,678
|
|
13.8 %
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(241,514)
|
|
(329,039)
|
|
(45,377)
|
|
36.2 %
|
Others
|
(474,196)
|
|
(426,169)
|
|
(58,771)
|
|
(10.1 %)
|
Total compensation and
benefits
|
(715,710)
|
|
(755,208)
|
|
(104,148)
|
|
5.5 %
|
Selling
expenses
|
(130,213)
|
|
(208,672)
|
|
(28,777)
|
|
60.3 %
|
General and
administrative expenses
|
(93,856)
|
|
(109,683)
|
|
(15,126)
|
|
16.9 %
|
Reversal of credit
losses
|
14,986
|
|
5,478
|
|
755
|
|
(63.4 %)
|
Other operating
expenses
|
(52,312)
|
|
(67,875)
|
|
(9,360)
|
|
29.8 %
|
Government
subsidies
|
80,211
|
|
19,032
|
|
2,625
|
|
(76.3 %)
|
Total operating costs
and expenses
|
(896,894)
|
|
(1,116,928)
|
|
(154,031)
|
|
24.5 %
|
Income from operations
|
636,940
|
|
628,302
|
|
86,647
|
|
(1.4 %)
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
30,318
|
|
74,072
|
|
10,216
|
|
144.3 %
|
Investment income
(loss)
|
30,547
|
|
(17,559)
|
|
(2,421)
|
|
N.A.
|
Other
income
|
11,571
|
|
25,379
|
|
3,500
|
|
119.3 %
|
Total other
income
|
72,436
|
|
81,892
|
|
11,295
|
|
13.1 %
|
Income before taxes
and
income from equity in affiliates
|
709,376
|
|
710,194
|
|
97,942
|
|
0.1 %
|
Income tax
expense
|
(155,500)
|
|
(159,793)
|
|
(22,036)
|
|
2.8 %
|
Income from equity in
affiliates
|
99,223
|
|
5,230
|
|
719
|
|
(94.7 %)
|
Net income
|
653,099
|
|
555,631
|
|
76,625
|
|
(14.9 %)
|
Less: net loss
attributable to
non-controlling interests
|
(1,148)
|
|
(4,007)
|
|
(553)
|
|
249.0 %
|
Net income attributable to
Noah shareholders
|
654,247
|
|
559,638
|
|
77,178
|
|
(14.5 %)
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
9.73
|
|
8.06
|
|
1.11
|
|
(17.2 %)
|
Income per ADS,
diluted
|
9.70
|
|
8.05
|
|
1.11
|
|
(17.0 %)
|
Margin analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
41.5 %
|
|
36.0 %
|
|
36.0 %
|
|
|
Net margin
|
42.6 %
|
|
31.8 %
|
|
31.8 %
|
|
|
Weighted average ADS
equivalent[1]:
|
|
|
|
|
|
|
|
Basic
|
67,240,800
|
|
69,468,036
|
|
69,468,036
|
|
|
Diluted
|
67,428,368
|
|
69,498,956
|
|
69,498,956
|
|
|
ADS equivalent
outstanding at
end of period
|
60,222,116
|
|
63,137,912
|
|
63,137,912
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs.
|
Noah Holdings Limited
|
Condensed Comprehensive Income
Statements
|
(unaudited)
|
|
|
Three months
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
Change
|
|
2022
|
|
2023
|
|
2023
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net income
|
348,888
|
|
312,296
|
|
43,068
|
|
(10.5 %)
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
75,557
|
|
140,753
|
|
19,411
|
|
86.3 %
|
Comprehensive income
|
424,445
|
|
453,049
|
|
62,479
|
|
6.7 %
|
Less: Comprehensive
loss attributable to
non-controlling interests
|
(183)
|
|
(3,269)
|
|
(451)
|
|
1,686.3 %
|
Comprehensive income attributable to
Noah shareholders
|
424,628
|
|
456,318
|
|
62,930
|
|
7.5 %
|
Noah Holdings Limited
|
Condensed Comprehensive Income
Statements
|
(unaudited)
|
|
|
Six months
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
Change
|
|
2022
|
|
2023
|
|
2023
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net income
|
653,099
|
|
555,631
|
|
76,625
|
|
(14.9 %)
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
66,420
|
|
123,918
|
|
17,089
|
|
86.6 %
|
Comprehensive income
|
719,519
|
|
679,549
|
|
93,714
|
|
(5.6 %)
|
Less: Comprehensive loss attributable to
non-controlling interests
|
(1,065)
|
|
(4,189)
|
|
(578)
|
|
293.9 %
|
Comprehensive income attributable to
Noah shareholders
|
720,584
|
|
683,738
|
|
94,292
|
|
(5.1 %)
|
Noah Holdings Limited
|
Supplemental Information
|
(unaudited)
|
|
As
of
|
|
|
|
June
30,
2022
|
|
June
30,
2023
|
|
Change
|
|
|
|
|
|
|
Number of registered
clients
|
418,675
|
|
446,557
|
|
6.7 %
|
Number of relationship
managers
|
1,255
|
|
1,375
|
|
9.6 %
|
Number of cities in
mainland China under
coverage
|
79
|
|
63
|
|
(20.3 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
June
30,
2022
|
|
June
30,
2023
|
|
Change
|
|
(in millions of RMB,
except number of active clients and
percentages)
|
Number of active
clients
|
12,866
|
|
11,548
|
|
(10.2 %)
|
Transaction
value:
|
|
|
|
|
|
Private equity
products
|
3,918
|
|
618
|
|
(84.2 %)
|
Private secondary
products
|
2,394
|
|
4,293
|
|
79.3 %
|
Mutual fund
products
|
12,190
|
|
12,031
|
|
(1.3 %)
|
Other
products
|
814
|
|
1,465
|
|
80.1 %
|
Total transaction
value
|
19,316
|
|
18,407
|
|
(4.7 %)
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
|
Three months
ended June 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
|
399,521
|
|
-
|
|
-
|
|
399,521
|
Recurring service
fees
|
176,355
|
|
-
|
|
-
|
|
176,355
|
Performance-based
income
|
4,328
|
|
-
|
|
-
|
|
4,328
|
Other service
fees
|
50,878
|
|
-
|
|
13,236
|
|
64,114
|
Total revenues from
others
|
631,082
|
|
-
|
|
13,236
|
|
644,318
|
Revenues from funds
Gopher
manages
|
|
|
|
|
|
|
|
One-time
commissions
|
5,920
|
|
62
|
|
-
|
|
5,982
|
Recurring service
fees
|
93,914
|
|
177,119
|
|
-
|
|
271,033
|
Performance-based
income
|
17,115
|
|
6,520
|
|
-
|
|
23,635
|
Total revenues from
funds Gopher
manages
|
116,949
|
|
183,701
|
|
-
|
|
300,650
|
Total
revenues
|
748,031
|
|
183,701
|
|
13,236
|
|
944,968
|
Less: VAT related
surcharges
|
(2,755)
|
|
(312)
|
|
(144)
|
|
(3,211)
|
Net
revenues
|
745,276
|
|
183,389
|
|
13,092
|
|
941,757
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(175,446)
|
|
(4,858)
|
|
-
|
|
(180,304)
|
Others
|
(133,409)
|
|
(63,949)
|
|
(7,440)
|
|
(204,798)
|
Total compensation and
benefits
|
(308,855)
|
|
(68,807)
|
|
(7,440)
|
|
(385,102)
|
Selling
expenses
|
(84,883)
|
|
(20,839)
|
|
(6,281)
|
|
(112,003)
|
General and
administrative
expenses
|
(47,431)
|
|
(11,721)
|
|
(4,831)
|
|
(63,983)
|
(Provision for)
reversal of credit
losses
|
(294)
|
|
74
|
|
-
|
|
(220)
|
Other operating
expenses
|
(9,637)
|
|
(1,230)
|
|
(26,211)
|
|
(37,078)
|
Government
subsidies
|
6,002
|
|
46
|
|
-
|
|
6,048
|
Total operating costs
and expenses
|
(445,098)
|
|
(102,477)
|
|
(44,763)
|
|
(592,338)
|
Income (loss) from
operations
|
300,178
|
|
80,912
|
|
(31,671)
|
|
349,419
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
|
Three months
ended June 30, 2022
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others
|
|
|
|
|
|
|
|
One-time
commissions
|
177,339
|
|
-
|
|
-
|
|
177,339
|
Recurring service
fees
|
184,300
|
|
-
|
|
-
|
|
184,300
|
Performance-based
income
|
9,481
|
|
-
|
|
-
|
|
9,481
|
Other service
fees
|
27,375
|
|
-
|
|
25,146
|
|
52,521
|
Total revenues from
others
|
398,495
|
|
-
|
|
25,146
|
|
423,641
|
Revenues from funds
Gopher
manages
|
|
|
|
|
|
|
|
One-time
commissions
|
1,518
|
|
29,375
|
|
-
|
|
30,893
|
Recurring service
fees
|
107,767
|
|
169,592
|
|
-
|
|
277,359
|
Performance-based
income
|
3,837
|
|
12,696
|
|
-
|
|
16,533
|
Total revenues from
funds Gopher
manages
|
113,122
|
|
211,663
|
|
-
|
|
324,785
|
Total
revenues
|
511,617
|
|
211,663
|
|
25,146
|
|
748,426
|
Less: VAT related
surcharges
|
(2,976)
|
|
(1,313)
|
|
(5,995)
|
|
(10,284)
|
Net
revenues
|
508,641
|
|
210,350
|
|
19,151
|
|
738,142
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
managers
|
(120,258)
|
|
(11,261)
|
|
-
|
|
(131,519)
|
Others
|
(153,046)
|
|
(63,241)
|
|
(9,999)
|
|
(226,286)
|
Total compensation and
benefits
|
(273,304)
|
|
(74,502)
|
|
(9,999)
|
|
(357,805)
|
Selling
expenses
|
(60,479)
|
|
(8,244)
|
|
(1,584)
|
|
(70,307)
|
General and
administrative
expenses
|
(18,821)
|
|
(12,287)
|
|
(4,541)
|
|
(35,649)
|
Reversal of (provision
for) credit
losses
|
141
|
|
(441)
|
|
6,088
|
|
5,788
|
Other operating income
(expenses)
|
915
|
|
(113)
|
|
(23,479)
|
|
(22,677)
|
Government
subsidies
|
36,750
|
|
27,822
|
|
1,081
|
|
65,653
|
Total operating costs
and expenses
|
(314,798)
|
|
(67,765)
|
|
(32,434)
|
|
(414,997)
|
Income (loss) from
operations
|
193,843
|
|
142,585
|
|
(13,283)
|
|
323,145
|
Noah Holdings
Limited
|
Supplement Revenue
Information by Geography
|
(unaudited)
|
|
|
|
Three months ended June
30, 2023
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
419,220
|
|
118,972
|
|
13,236
|
|
551,428
|
Hong Kong
|
282,693
|
|
42,439
|
|
-
|
|
325,132
|
Others
|
46,118
|
|
22,290
|
|
-
|
|
68,408
|
Total
revenues
|
748,031
|
|
183,701
|
|
13,236
|
|
944,968
|
|
Three months ended June
30, 2022
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Businesses
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Mainland
China
|
378,862
|
|
184,939
|
|
25,146
|
|
588,947
|
Hong Kong
|
111,125
|
|
9,117
|
|
-
|
|
120,242
|
Others
|
21,630
|
|
17,607
|
|
-
|
|
39,237
|
Total
revenues
|
511,617
|
|
211,663
|
|
25,146
|
|
748,426
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except for
per ADS data and percentages)
|
(unaudited)
|
|
Three months
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
Change
|
|
2022
|
|
2023
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income attributable
to Noah shareholders
|
349,005
|
|
315,428
|
|
(9.6 %)
|
Adjustment for
share-based compensation
|
7,990
|
|
(3,055)
|
|
N.A.
|
Less: tax effect of
adjustments
|
1,922
|
|
(740)
|
|
N.A.
|
Adjusted net income
attributable to Noah shareholders
(non-GAAP)
|
355,073
|
|
313,113
|
|
(11.8 %)
|
Net
margin attributable to Noah shareholders
|
47.3 %
|
|
33.5 %
|
|
|
Non-GAAP net margin
attributable to Noah shareholders
|
48.1 %
|
|
33.2 %
|
|
|
|
|
|
|
|
|
Net income attributable
to Noah shareholders per ADS,
diluted
|
5.18
|
|
4.54
|
|
(12.4 %)
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted
|
5.28
|
|
4.51
|
|
(14.6 %)
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except for
per ADS data and percentages)
|
(unaudited)
|
|
Six months
ended
|
|
|
|
June
30,
|
|
June
30,
|
|
Change
|
|
2022
|
|
2023
|
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income attributable
to Noah shareholders
|
654,247
|
|
559,638
|
|
(14.5 %)
|
Adjustment for
share-based compensation
|
18,836
|
|
(9,244)
|
|
N.A.
|
Less: tax effect of
adjustments
|
4,529
|
|
(2,239)
|
|
N.A.
|
Adjusted net income
attributable to Noah shareholders
(non-GAAP)
|
668,554
|
|
552,633
|
|
(17.3 %)
|
Net
margin attributable to Noah shareholders
|
42.7 %
|
|
32.1 %
|
|
|
Non-GAAP net margin
attributable to Noah shareholders
|
43.6 %
|
|
31.7 %
|
|
|
|
|
|
|
|
|
Net income attributable
to Noah shareholders per ADS,
diluted
|
9.70
|
|
8.05
|
|
(17.0 %)
|
Non-GAAP net income
attributable to Noah shareholders
per ADS, diluted
|
9.92
|
|
7.95
|
|
(19.9 %)
|
View original
content:https://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-second-quarter-of-2023-301911199.html
SOURCE Noah Holdings Limited