SHANGHAI, May 30, 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.
|
View original
content:https://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-first-quarter-of-2023-301837134.html
SOURCE Noah Holdings Limited