NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER 2023 AND AUDITED FINANCIAL RESULTS FOR FULL YEAR 2023

Rhea-AI Summary

Noah Holdings announced its financial results for Q4 2023 and FY 2023. The net revenues decreased by 9.4% in Q4 2023 but increased by 6.3% for FY 2023. The company reported a 54.8% increase in net income for Q4 2023 compared to the same period in 2022. The Wealth Management business saw a 15.1% increase in one-time commissions in Q4 2023, while the Asset Management business had a 13.5% increase in recurring service fees.

Positive

• The net revenues decreased by 9.4% in Q4 2023 compared to the same period in 2022.
• For FY 2023, net revenues increased by 6.3% from 2022, primarily driven by a 59.8% increase in one-time commissions from the distribution of insurance products.
• Net income for Q4 2023 increased by 54.8% from the corresponding period in 2022.
• In Q4 2023, Wealth Management business saw a 15.1% increase in one-time commissions, while the Asset Management business had a 13.5% increase in recurring service fees.
• Operating costs and expenses for Q4 2023 decreased by 12.6% compared to the same period in 2022.
• Noah Holdings reported a net margin of 26.7% for Q4 2023, an increase from 15.9% in the corresponding period in 2022.

Negative

• None.

Insights

Financial Analyst

The financial results of Noah Holdings Limited for Q4 2023 and the full fiscal year present a mixed picture, with both positive and negative trends that are of interest to investors and market analysts. The reported decrease in net revenues by 9.4% year-over-year (YoY) for Q4 and the increase in full-year net revenues by 6.3% highlight the company's fluctuating performance in different quarters. The decline in Q4 revenues is attributed to reduced performance-based income and service fees, which may signal a challenging environment for wealth management services, particularly in the private equity space.

However, the increase in one-time commissions from insurance product distributions suggests a strategic pivot or diversification in the company's revenue streams. The 54.8% increase in net income attributable to shareholders in Q4, largely due to a non-recurring litigation expense in the prior year, paints a more favorable profitability scenario. It's important to consider the non-GAAP measures, which also show an increase, providing a cleaner view of the company's operating performance without one-time charges.

From an operational perspective, the decrease in the total number of active clients and the contraction of the company's coverage network in China could be concerning, potentially indicating market saturation or competitive pressures. On the other hand, the growth in overseas assets under management (AUM) and registered clients suggests successful international expansion efforts, which could be a key driver of future growth.

Market Research Analyst

The wealth management industry, particularly in China, is undergoing significant transformation. Noah Holdings' operational updates and financial results reflect this dynamic landscape. The reduction in the number of cities covered and the decline in active clients may indicate a strategic consolidation, focusing on profitability over expansive growth. This aligns with broader industry trends where firms are seeking to optimize their operations amidst regulatory changes and market volatility.

The shift in product distribution, with a decrease in mutual fund products and an increase in private secondary products, suggests changing investor preferences or a recalibration of Noah's product offerings. The company's increased emphasis on insurance products could be a response to market demand and a move to capitalize on higher commission-based revenues.

The asset management business shows a mixed performance with a slight increase in recurring service fee revenues but a sharp decline in performance-based income. The stability of AUM indicates that while there may be challenges in generating performance-based income, the core asset management operations remain resilient. The increased operating margin in asset management also suggests improved efficiency in this segment.

Economist

Examining Noah Holdings' financial outcomes in the context of the broader economic environment, the results provide insights into the health of the wealth management sector and investor sentiment. The decrease in Q4 net revenues, particularly from performance-based income, may reflect broader economic headwinds and market downturns that have affected investment returns. The increased distribution of insurance products, however, could be a strategic hedge against market volatility, as these products often carry lower risk profiles.

The company's international expansion and growth in overseas AUM by 10.7% suggest a diversification strategy that can mitigate risks associated with domestic market fluctuations. This international footprint could be increasingly important as global economic uncertainties persist, offering a buffer through geographic and currency diversification.

Furthermore, the full-year increase in net revenues, despite a challenging year for capital markets, indicates that Noah's business model has some resilience. The company's ability to generate growth in a difficult market environment speaks to the strength of its wealth management and asset allocation services, which are critical during times of economic uncertainty.

SHANGHAI, March 26, 2024 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for Mandarin-speaking high-net-worth investors, today announced its unaudited financial results for the fourth quarter of 2023 and the audited financial results for the full year ended December 31, 2023.

FOURTH QUARTER 2023 FINANCIAL HIGHLIGHTS

• Net revenues were RMB799.5 million (US$112.6 million), a 9.4% decrease from the corresponding period in 2022, mainly due to decreases in performance-based income generated from private equity products and recurring service fees generated from RMB private equity and private secondary products. The decreases were partially offset by a 13.8% increase in one-time commissions from more distribution of insurance products. On a sequential basis, net revenues increased by 6.6% driven by an increase in the distribution of insurance products.

(RMB millions, except percentages)		Q4 2022		Q4 2023		YoY Change
Wealth management		646.9		610.3		(5.7 %)
Asset management		223.2		186.2		(16.6 %)
Other businesses		12.0		3.0		(74.9 %)
Total net revenues		882.1		799.5		(9.4 %)

 

• Income from operations was RMB220.7 million (US$31.1 million), effectively flat when compared with the corresponding period in 2022 and a decrease of 11.3% sequentially, primarily due to an increase in marketing activities which was partially offset by a decrease in government grants. 

(RMB millions, except percentages)		Q4 2022		Q4 2023		YoY Change
Wealth management		179.1		150.7		(15.9 %)
Asset management		93.5		95.5		2.0 %
Other businesses		(52.9)		(25.5)		(51.8 %)
Total income from operations		219.7		220.7		0.4 %

 

• Net income attributable to Noah shareholders was RMB216.5 million (US$30.5 million), a 54.8% increase from the corresponding period in 2022, primarily due to a RMB99.0 million non-recurring contingent litigation expense recorded during the fourth quarter of 2022. Net income attributable to Noah shareholders decreased by 7.2% sequentially, primarily due to mark to market adjustments made to certain balance sheet investments.
• Non-GAAP^[1] net income attributable to Noah shareholders was RMB233.7 million (US$32.9 million), an increase of 56.7% from the corresponding period in 2022 and 0.6% from the third quarter of 2023.

FULL YEAR 2023 FINANCIAL HIGHLIGHTS

• Net revenues were RMB3,294.7 million (US$464.0 million), a 6.3% increase from 2022, primarily due to a 59.8% increase in one-time commissions from more distribution of insurance products which was partially offset by a 55.5% decrease in performance-based income.

(RMB millions, except percentages)		FY  2022		FY  2023		YoY Change
Wealth management		2,200.0		2,491.2		13.2 %
Asset management		834.5		766.2		(8.2 %)
Other businesses		65.9		37.3		(43.5 %)
Total net revenues		3,100.4		3,294.7		6.3 %

 

• Income from operations was RMB1,097.9 million (US$154.6 million), a 0.9% increase from 2022, mainly due to a 6.3% increase in net revenues which was partially offset by a 9.2% increase in total operating costs and expenses associated with the low base effect created by strict COVID-19 lockdowns in 2022.

(RMB millions, except percentages)		FY  2022		FY  2023		YoY Change
Wealth management		741.4		809.9		9.2 %
Asset management		447.8		386.7		(13.7 %)
Other businesses		(100.8)		(98.6)		(2.2 %)
Total income from operations		1,088.4		1,097.9		0.9 %

 

• Net income attributable to Noah shareholders was RMB1,009.5 million (US$142.2 million), a 3.4% increase from 2022, due to a 0.9% increase in income from operations and a RMB99.0 million non-recurring contingent litigation expense recorded in 2022.
• Non-GAAP net income attributable to Noah shareholders was RMB1,018.8 million (US$143.5 million), a 1.0% increase from 2022.

FOURTH QUARTER AND FULL YEAR 2023 OPERATIONAL UPDATES

Wealth Management Business

Noah offers global investment products and provides value-added services to global mandarin-speaking high-net-worth investors in its wealth management business. Noah primarily distributes private equity, private secondary, mutual funds and other products denominated in RMB, USD and other currencies.

• Total number of registered clients as of December 31, 2023 was 455,827, a 4.2% increase from December 31, 2022 and a 0.8% increase from September 30, 2023.
• Total number of active clients^[2] who transacted with Noah during the fourth quarter of 2023 was 9,033, a 30.0% decrease from the fourth quarter of 2022 and a 4.8% decrease from the third quarter of 2023. Total number of active clients who transacted with Noah in 2023 was 22,453, a 37.4% decrease from 2022.
• Aggregate value of investment products distributed during the fourth quarter of 2023 was RMB16.5 billion (US$2.3 billion), an 8.1% decrease from the corresponding period in 2022, mainly due to a decrease in the distribution of mutual fund products.

 

Product type		Three months ended December 31,
		2022				2023
		(RMB in billions, except percentages)
Mutual fund products		12.2		67.7 %		10.9		66.0 %
Private secondary products		3.4		18.7 %		4.2		25.1 %
Private equity products		1.4		8.0 %		0.7		4.3 %
Other products[3]		1.0		5.6 %		0.7		4.6 %
All products		18.0		100.0 %		16.5		100.0 %

 

• Aggregate value of investment products distributed during 2023 was RMB74.1 billion (US$10.4 billion), a 5.4% increase from 2022, mainly due to an increase in the distribution of private secondary and mutual fund products.

 

Product type		Twelve months ended December 31,
		2022				2023
		(RMB in billions, except percentages)
Mutual fund products		43.1		61.4 %		47.9		64.6 %
Private secondary products		13.1		18.6 %		18.4		24.8 %
Private equity products		11.1		15.7 %		3.3		4.5 %
Other products		3.0		4.3 %		4.5		6.1 %
All products		70.3		100.0 %		74.1		100.0 %

 

• Coverage network in mainland China included 44 cities as of December 31, 2023, compared with 59 cities as of September 30, 2023, and 75 cities as of December 31, 2022. Noah continues to streamline its presence in China with a focus on strengthening its operations in central hub cities.
• Number of relationship managers was 1,252 as of December 31, 2023, a decrease of 11.1% from September 30, 2023, and 1.9% from December 31, 2022. As of December 31, 2023, Noah had 89 overseas relationship managers, a 15.6% increase from September 30, 2023.

Asset Management Business

Noah's asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading multi-asset manager in China with global investment capabilities and 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-strategy investments denominated in RMB, USD and other currencies. 

• Total assets under management as of December 31, 2023 remained stable at RMB154.6 billion (US$21.8 billion), compared with RMB154.9 billion as of September 30, 2023 and RMB157.1 billion as of December 31, 2022.

 

Investment type		As of September 30, 2023				Growth		Distribution/ Redemption		As of December 31, 2023
		(RMB billions, except percentages)
Private equity		131.7		85.0 %		0.5		-		132.2		85.5 %
Public securities[4]		12.2		7.9 %		2.9		3.6		11.5		7.4 %
Real estate		6.3		4.0 %		-		0.1		6.2		4.0 %
Multi-strategies		4.2		2.8 %		-		-		4.2		2.8 %
Others		0.5		0.3 %		-		-		0.5		0.3 %
All Investments		154.9		100.0 %		3.4		3.7		154.6		100.0 %

 

Investment type		As of December 31, 2022				Growth		Distribution/ Redemption		As of December 31, 2023
		(RMB billions, except percentages)
Private equity		133.1		84.7 %		2.1		3.0		132.2		85.5 %
Public securities		11.0		7.0 %		10.7		10.2		11.5		7.4 %
Real estate		6.8		4.3 %		0.4		1.0		6.2		4.0 %
Multi-strategies		4.8		3.1 %		-		0.6		4.2		2.8 %
Others		1.4		0.9 %		-		0.9		0.5		0.3 %
All Investments		157.1		100.0 %		13.2		15.7		154.6		100.0 %

 

Other Businesses

Noah's other businesses mainly provide clients with additional comprehensive services and investment products. Operating results for other businesses also include headquarter rental income, depreciation and amortization, as well as operating expenses.

Ms. Jingbo Wang, co-founder and Chairwoman of Noah, said "Despite a very challenging year for capital markets, I am pleased to report that Noah generated growth in both net revenues and non-GAAP net income in 2023. We are starting the year on a strong footing, having spent the past few quarters repositioning ourselves to drive growth in this challenging market environment. The pace of our international expansion continues to increase as our clients' demand for global asset allocation grows. During the year, overseas AUM grew 10.7%; overseas net revenue grew 73.0%; and overseas registered clients and active clients grew 14.2% and 38.0%, respectively. Our balance sheet is robust, clean and is generating sufficient capital to support Noah's overseas expansion."

"Reflecting our ongoing effort to improve corporate governance, we split the CEO and Chairperson roles at the end of the year with the appointment of Mr. Yin Zhe as CEO. Zhe's alignment with our values and culture, coupled with his instrumental role in building our Gopher Asset Management franchise, made him the ideal candidate. We have been working seamlessly together since he took on this new role and I have the upmost confidence in his ability to execute our growth initiatives going forward."

FOURTH QUARTER 2023 FINANCIAL RESULTS

Net Revenues

Net revenues for the fourth quarter of 2023 were RMB799.5 million (US$112.6 million), a 9.4% decrease from the corresponding period in 2022.

• Wealth Management Business
  • Net revenues from one-time commissions for the fourth quarter of 2023 were RMB306.4 million (US$43.2 million), a 15.1% increase from the corresponding period in 2022 driven by an increase in the distribution of insurance products.
  • Net revenues from recurring service fees for the fourth quarter of 2023 were RMB253.4 million (US$35.7 million), a 20.5% decrease from the corresponding period in 2022, due to a shift in product mix and client investment preferences, as well as a decrease in recurring service fees generated from private secondary and private equity products.
  • Net revenues from performance-based income for the fourth quarter of 2023 were RMB0.1 million, compared with RMB14.1 million in the corresponding period of 2022, primarily due to a decrease in performance-based income from private equity fund products.
  • Net revenues from other service fees for the fourth quarter of 2023 were RMB50.4 million (US$7.1 million), a 4.9% increase from the corresponding period in 2022, primarily due to the growing number of value-added services Noah offers its high-net-worth clients.

• Asset Management Business
  • Net revenues from recurring service fees for the fourth quarter of 2023 were RMB174.4 million (US$24.6 million), a 13.5% increase from the corresponding period in 2022, due to an increase in the number of real estate investments in the United States and offshore private equity investments managed by Gopher Asset Management.
  • Net revenues from performance-based income for the fourth quarter of 2023 were RMB11.7 million (US$1.7 million), an 82.3% decrease from the corresponding period in 2022, primarily due to a decrease in performance-based income from private equity investments managed by Gopher Asset Management.

• Other Businesses
  • Net revenues for the fourth quarter of 2023 were RMB3.0 million (US$0.4 million), compared with RMB12.0 million in the corresponding period in 2022, driven by the winding down of the Company's loan portfolio.

Operating Costs and Expenses

Operating costs and expenses for the fourth quarter of 2023 were RMB578.8 million (US$81.5 million), a 12.6% decrease from the corresponding period in 2022. Operating costs and expenses primarily consisted of 1) compensation and benefits of RMB300.8 million (US$42.4 million); 2) selling expenses of RMB157.4 million (US$22.2 million); 3) general and administrative expenses of RMB98.6 million (US$13.9 million); 4) reversal of credit losses of RMB1.0 million (US$0.1 million); and 5) other operating expenses of RMB25.6 million (US$3.6 million).

• Operating costs and expenses for the wealth management business for the fourth quarter of 2023 were RMB459.6 million (US$64.7 million), a 1.8% decrease from the corresponding period in 2022, primarily due to a 5.7% decrease in net revenues.
• Operating costs and expenses for the asset management business for the fourth quarter of 2023 were RMB90.7 million (US$12.8 million), a 30.0% decrease from the corresponding period in 2022, primarily due to a decrease in performance-based compensation.
• Operating costs and expenses for other businesses for the fourth quarter of 2023 were RMB28.5 million (US$4.0 million), a 56.1% decrease from the corresponding period in 2022, due to a decrease in recorded credit losses.

Operating Margin

Operating margin for the fourth quarter of 2023 was 27.6%, compared with 24.9% for the corresponding period in 2022.

• Operating margin for the wealth management business for the fourth quarter of 2023 was 24.7%, compared with 27.7% for the corresponding period in 2022.
• Operating margin for the asset management business for the fourth quarter of 2023 was 51.3%, compared with 41.9% for the corresponding period in 2022.
• Loss from other businesses for the fourth quarter of 2023 was RMB25.5 million (US$3.6 million), compared with RMB52.9 million in the corresponding period of 2022, primarily due to a decrease in provisions for credit losses.

Investment Income/loss

Investment loss for the fourth quarter of 2023 was RMB53.6 million (US$7.5 million), compared with investment income of RMB62.2 million for the corresponding period in 2022, primarily due to unrealized losses from fair value changes on certain equity investments.

Income Tax Expenses

Income tax expenses for the fourth quarter of 2023 were RMB34.1 million (US$4.8 million), a 43.7% decrease from the corresponding period in 2022, primarily due to a lower effective tax rate.

Income from Equity in Affiliates

Income from equity in affiliates for the fourth quarter of 2023 was RMB52.8 million (US$7.4 million), compared with RMB12.3 million for the corresponding period in 2022. The increase was primarily due to an increase in income recognized from the funds of funds that Noah manages and invests in as the general partner or fund manager.

Net Income

• Net Income
  • Net income for the fourth quarter of 2023 was RMB213.3 million (US$30.0 million), a 51.8% increase from the corresponding period in 2022.
  • Net margin for the fourth quarter of 2023 was 26.7%, an increase from 15.9% in the corresponding period in 2022.
  • Net income attributable to Noah shareholders for the fourth quarter of 2023 was RMB216.5 million (US$30.5 million), a 54.8% increase from the corresponding period in 2022.
  • Net margin attributable to Noah shareholders for the fourth quarter of 2023 was 27.1%, an increase from 15.9% in the corresponding period in 2022.
  • Net income attributable to Noah shareholders per basic and diluted ADS for the fourth quarter of 2023 was RMB3.12 (US$0.44) and RMB3.12 (US$0.44), respectively, an increase from RMB2.01 and RMB2.01 respectively, in the corresponding period in 2022.

• Non-GAAP Net Income Attributable to Noah Shareholders
  • Non-GAAP net income attributable to Noah shareholders for the fourth quarter of 2023 was RMB233.7 million (US$32.9 million), a 56.7% increase from the corresponding period in 2022.
  • Non-GAAP net margin attributable to Noah shareholders for the fourth quarter of 2023 was 29.2%, an increase from 16.9% in the corresponding period in 2022.
  • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the fourth quarter of 2023 was RMB3.36 (US$0.47), an increase from RMB2.14 in the corresponding period in 2022.

FULL YEAR 2023 FINANCIAL RESULTS

Net Revenues

Net revenues for 2023 were RMB3,294.7 million (US$464.0 million), a 6.3% increase from 2022, primarily due to an increase in one-time commissions associated with Noah's wealth management business. 

• Wealth Management Business
  • Net revenues from one-time commissions for 2023 were RMB1,082.4 million (US$152.5 million), a 72.2% increase from 2022, primarily due to an increase in the distribution of insurance products.
  • Net revenues from recurring service fees for 2023 were RMB1,101.7 million (US$155.2 million), a 10.2% decrease from 2022, due to a shift in product mix and client investment preferences, as well as a decrease in recurring service fees generated from private secondary and private equity products.
  • Net revenues from performance-based income for 2023 were RMB86.0 million (US$12.1 million), a 57.3% decrease from 2022, primarily due to a decrease in performance-based income from private secondary products.
  • Net revenues from other service fees for 2023 were RMB221.1 million (US$31.1 million), a 54.1% increase from 2022, primarily due to the growing number of value-added services Noah offers to its high-net-worth clients.

• Asset Management Business
  • Net revenues from recurring service fees for 2023 were RMB712.5 million (US$100.3 million), a 5.0% increase from 2022.
  • Net revenues from performance-based income for 2023 were RMB51.1 million (US$7.2 million), a 52.1% decrease from 2022, primarily due to a decrease in performance-based income from private equity products.

• Other Businesses
  • Net revenues for 2023 were RMB37.3 million (US$5.3 million), a 43.5% decrease from 2022.

Operating costs and expenses

Operating costs and expenses for 2023 were RMB2,196.8 million (US$309.4 million), a 9.2% increase from 2022. Operating costs and expenses for 2023 primarily consisted of 1) compensation and benefits of RMB1,456.8 million (US$205.2 million); 2) selling expenses of RMB485.8 million (US$68.4 million); 3) general and administrative expenses of RMB275.7 million (US$38.8 million); 4) reversal of credit losses of RMB7.0 million (US$1.0 million); and 5) other operating expenses of RMB112.5 million (US$15.8 million).

• Operating costs and expenses for the wealth management business for 2023 were RMB1,681.4 million (US$236.8 million), a 15.3% increase from 2022, primarily due to an increase in compensation and benefits for relationship managers.
• Operating costs and expenses for the asset management business for 2023 were RMB379.5 million (US$53.5 million), a 1.8% decrease from 2022, primarily due to a decrease in performance-based compensation.
• Operating costs and expenses for other businesses for 2023 were RMB135.9 million (US$19.1 million), an 18.5% decrease from 2022, primarily due to a decrease in other operating expenses.

Operating Margin

Operating margin for 2023 was 33.3%, compared to 35.1% for 2022.

• Operating margin for the wealth management business for 2023 was 32.5%, compared with 33.7% for 2022, mainly due to an increase in compensation and benefits for relationship managers.
• Operating margin for the asset management business for 2023 was 50.5%, compared with 53.7% for 2022.
• Loss from other businesses for 2023 was RMB98.6 million (US$13.9 million), compared with RMB100.8 million for 2022, due to a 43.5% decrease in net revenues. 

Investment Loss/Income

Investment loss for 2023 was RMB61.5 million (US$8.7 million), compared with investment income of RMB85.6 million for 2022.

Income Tax Expenses

Income tax expenses for 2023 were RMB262.4 million (US$37.0 million), a 1.8% decrease from 2022, primarily due to a lower effective tax rate.

Income from Equity in Affiliates

Income from equity in affiliates for 2023 was RMB54.1 million (US$7.6 million), compared with RMB89.1 million in 2022. The decrease was primarily due to a decrease in income recognized from the funds of funds that Noah manages and invests in as the general partner or fund manager.  

Net Income

• Net Income
  • Net income for 2023 was RMB1,001.0 million (US$141.0 million), a 3.0% increase from 2022.
  • Net margin for 2023 was 30.4%, a decrease from 31.3% in 2022.
  • Net income attributable to Noah shareholders for 2023 was RMB1,009.5 million (US$142.2 million), a 3.4% increase from 2022.
  • Net margin attributable to Noah shareholders for 2023 was 30.6%, a decrease from 31.5% in 2022.
  • Net income attributable to Noah shareholders per basic and diluted ADS for 2023 was RMB14.53 (US$2.05) and RMB14.53 (US$2.05), respectively, an increase from RMB14.29 and RMB14.28, respectively, in 2022.

• Non-GAAP Net Income Attributable to Noah Shareholders
  • Non-GAAP net income attributable to Noah shareholders for 2023 was RMB1,018.8 million (US$143.5 million), a 1.0% increase from 2022.
  • Non-GAAP net margin attributable to Noah shareholders for 2023 was 30.9%, a decrease from 32.5% in 2022.
  • Non-GAAP net income attributable to Noah shareholders per diluted ADS for 2023 was RMB14.66 (US$2.07), a decrease from RMB14.75 in 2022.

BALANCE SHEET AND CASH FLOW

As of December 31, 2023, the Company had RMB5,192.1 million (US$731.3 million) in cash and cash equivalents, compared with RMB4,403.9 million as of December 31, 2022 and RMB4,959.6 million as of September 30, 2023.

Net cash inflow from the Company's operating activities during the fourth quarter of 2023 was RMB152.5 million (US$21.5 million), compared with RMB33.0 million in the corresponding period in 2022, primarily due to a decrease in trading debt products in the fourth quarter of 2023. Net cash inflow from the Company's operating activities in 2023 was RMB1,318.3 million (US$185.7 million), compared with RMB632.9 million in 2022.

Net cash inflow from the Company's investing activities during the fourth quarter of 2023 was RMB226.8 million (US$31.9 million), compared with net cash inflow of RMB58.3 million in the corresponding period in 2022. Net cash outflow from the Company's investing activities in 2023 was RMB247.1 million (US$34.8 million), compared to net cash inflow of RMB74.3 million in 2022, mainly due to cash payments on short term investments.

Net cash outflow from the Company's financing activities was RMB94.0 million (US$13.2 million) in the fourth quarter of 2023, compared to net cash inflow of RMB8.0 million in the corresponding period in 2022. Net cash outflow from the Company's financing activities in 2023 was RMB199.8 million (US$28.1 million), compared to net cash inflow of RMB233.8 million in 2022. The cash inflow in 2022 was mainly due to the net proceeds from the Company's initial public offering and listing in Hong Kong while the cash outflow in 2023 was mainly due to final dividend payments.

ANNUAL AND SPECIAL DIVIDEND

On March 26, 2024, the Company's Board of Directors (the "Board") approved an annual dividend of approximately RMB509.0 million (US$71.7 million) in total, which is equivalent to 50% of full year 2023 non-GAAP net income attributable to Noah shareholders, in accordance with the capital management and shareholder return policy (the "Policy") adopted on November 29, 2023. The Board has also approved a non-recurring special dividend of approximately RMB509.0 million (US$71.7 million) in total. The annual and special dividend payment plan will be reviewed during and announced after the Annual General Meeting, which is expected to be held in June 2024.

CONFERENCE CALL 

The Company's senior management will host an earnings conference call to discuss its Q4 and full year 2023 Results and recent business activities. Details of the conference call are as follows:

Zoom webinar details
Conference title	Noah Holdings 4Q and Full Year 2023 Earnings Conference Call
Date/Time	Tuesday, March 26, 2024 at 8:00 p.m., U.S. Eastern Time Wednesday, March 27, 2024 at 8:00 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:	2326545

 

A telephone replay will be available starting approximately one hour after the end of the conference until April 2, 2024 at 1-877-344-7529 (US Toll Free) and 1-412-317-0088 (International Toll) with the access code 1565571.

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 and HKEX:6686) is a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for mandarin-speaking high-net-worth investors. In 2023, Noah distributed RMB74.1 billion (US$10.4 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB154.6 billion (US$21.8 billion) as of December 31, 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 44 cities in mainland China, as well as Hong Kong (China), Taiwan (China), New York, Silicon Valley and Singapore. A total of 1,252 relationship managers provide customized financial solutions for clients through this network, and meet their international investment needs. The Company's wealth management business had 455,827 registered clients as of December 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. The Company 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 fourth quarter of 2023 and audited financial results for the full year ended December 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 RMB7.0999 to US$1.00, the effective noon buying rate for December 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
				As of
				September 30, 2023		December 31, 2023		December 31, 2023
				(Unaudited)		(Audited)		(Audited)
				RMB'000		RMB'000		USD'000
Assets
	Current assets:
		Cash and cash equivalents		4,959,550		5,192,127		731,296
		Restricted cash		153,908		154,433		21,751
		Short-term investments		407,872		379,456		53,445
		Accounts receivable, net		445,386		503,978		70,984
		Loans receivable, net		315,785		286,921		40,412
		Amounts due from related parties		406,764		393,891		55,478
		Other current assets		189,473		206,250		29,052
		Total current assets		6,878,738		7,117,056		1,002,418
	Long-term investments, net			995,746		810,484		114,154
	Investment in affiliates			1,491,173		1,526,544		215,009
	Property and equipment, net			2,510,839		2,482,199		349,610
	Operating lease right-of-use assets, net			145,410		139,019		19,580
	Deferred tax assets			435,632		431,494		60,775
	Other non-current assets			171,083		178,582		25,152
Total Assets				12,628,621		12,685,378		1,786,698
Liabilities and Equity
	Current liabilities:
		Accrued payroll and welfare expenses		545,240		564,096		79,451
		Income tax payable		166,959		89,694		12,633
		Deferred revenues		88,377		72,824		10,257
		Contingent liabilities		595,137		482,802		68,001
		Other current liabilities		578,345		681,802		96,030
		Total current liabilities		1,974,058		1,891,218		266,372
	Operating lease liabilities, non-current			77,418		76,533		10,779
	Deferred tax liabilities			229,003		262,404		36,959
	Other non-current liabilities			45,058		27,660		3,896
	Total Liabilities			2,325,537		2,257,815		318,006
	Equity			10,303,084		10,427,563		1,468,692
Total Liabilities and Equity				12,628,621		12,685,378		1,786,698

 

 

Noah Holdings Limited
Condensed Consolidated Income Statements
(unaudited)
	Three months ended
	December 31,		December 31,		December 31,			Change
	2022		2023		2023
Revenues:	RMB'000		RMB'000		USD'000
Revenues from others:
One-time commissions	266,592		303,460		42,741			13.8 %
Recurring service fees	195,872		167,109			23,537		(14.7 %)
Performance-based income	13,998		146			21		(99.0 %)
Other service fees	60,870		59,244			8,344		(2.7 %)
Total revenues from others	537,332		529,959			74,643		(1.4 %)
Revenues from funds Gopher    manages:
One-time commissions	3,915		4,455			627		13.8 %
Recurring service fees	278,376		262,363			36,953		(5.8 %)
Performance-based income	66,819		11,762			1,657		(82.4 %)
Total revenues from funds     Gopher manages	349,110		278,580			39,237		(20.2 %)
Total revenues	886,442		808,539			113,880		(8.8 %)
Less: VAT related surcharges	(4,372)		(9,031)			(1,272)		106.6 %
Net revenues	882,070		799,508			112,608		(9.4 %)
Operating costs and expenses:
Compensation and benefits
Relationship manager         compensation	(146,662)		(140,673)			(19,813)		(4.1 %)
Others	(236,484)		(160,077)			(22,546)		(32.3 %)
Total compensation and      benefits	(383,146)		(300,750)			(42,359)		(21.5 %)
Selling expenses	(142,806)		(157,399)			(22,169)		10.2 %
General and administrative      expenses	(83,952)		(98,637)			(13,893)		17.5 %
Provision for (reversal of)  credit losses	(19,836)		1,025			144		N.A.
Other operating expenses	(38,257)		(25,649)			(3,613)		(33.0 %)
Government grants	5,665		2,626			370		(53.6 %)
Total operating costs and expenses	(662,332)		(578,784)			(81,520)		(12.6 %)
Income from operations	219,738		220,724			31,088		0.4 %
Other income (expense):
Interest income	14,251		44,389			6,252		211.5 %
Investment income (loss)	62,240		(53,567)			(7,545)		N.A.
Contingent litigation expenses	(99,000)		-			-		(100.0 %)
Other expense	(8,507)		(16,933)			(2,385)		99.0 %
Total other expense	(31,016)		(26,111)			(3,678)		(15.8 %)
Income before taxes and     income from equity in     affiliates	188,722		194,613			27,410		3.1 %
Income tax expense	(60,530)		(34,068)			(4,798)		(43.7 %)
Income from equity in affiliates	12,331		52,795			7,436		328.1 %
Net income	140,523		213,340			30,048		51.8 %
Less: net income (loss)     attributable to non-controlling     interests	614		(3,190)			(449)		N.A.
Net income attributable to     Noah shareholders	139,909		216,530			30,497		54.8 %
Income  per ADS, basic	2.01		3.12			0.44		55.2 %
Income per ADS, diluted	2.01		3.12			0.44		55.2 %
Margin analysis:
Operating margin	24.9 %		27.6 %			27.6 %
Net margin	15.9 %		26.7 %			26.7 %
Weighted average ADS     equivalent[1]:
Basic	69,593,068		69,487,210			69,487,210
Diluted	69,611,652		69,500,978			69,500,978
ADS equivalent outstanding at    end of period	62,603,864		65,261,465			65,261,465
[1] Assumes all outstanding ordinary shares are represented by ADSs. Five ordinary share represents one ADSs.

 

 

Noah Holdings Limited
Condensed Consolidated Income Statements
(Audited)
		Twelve months ended
		December 31,		December 31,		December 31,			Change
		2022		2023		2023
Revenues:		RMB'000		RMB'000		USD'000
Revenues from others:
One-time commissions		617,636		1,072,838		151,106			73.7 %
Recurring service fees		768,980		707,580			99,661		(8.0 %)
Performance-based income		184,048		16,344			2,302		(91.1 %)
Other service fees		223,441		270,579			38,110		21.1 %
Total revenues from others		1,794,105		2,067,341			291,179		15.2 %
Revenues from funds Gopher    manages:
One-time commissions		63,809		16,365			2,305		(74.4 %)
Recurring service fees		1,145,435		1,112,850			156,742		(2.8 %)
Performance-based income		125,528		121,265			17,080		(3.4 %)
Total revenues from funds    Gopher manages		1,334,772		1,250,480			176,127		(6.3 %)
Total revenues		3,128,877		3,317,821			467,306		6.0 %
Less: VAT related surcharges		(28,505)		(23,125)			(3,257)		(18.9 %)
Net revenues		3,100,372		3,294,696			464,049		6.3 %
Operating costs and expenses:
Compensation and benefits
Relationship manager compensation		(497,147)		(655,460)			(92,320)		31.8 %
Others		(944,735)		(801,293)			(112,860)		(15.2 %)
Total compensation and     benefits		(1,441,882)		(1,456,753)			(205,180)		1.0 %
Selling expenses		(349,014)		(485,778)			(68,420)		39.2 %
General and administrative    expenses		(235,319)		(275,727)			(38,835)		17.2 %
Reversal of credit losses		424		7,028			990		1557.5 %
Other operating expenses		(115,653)		(112,506)			(15,846)		(2.7 %)
Government grants		129,521		126,955			17,881		(2.0 %)
Total operating costs and    expenses		(2,011,923)		(2,196,781)			(309,410)		9.2 %
Income from operations		1,088,449		1,097,915			154,639		0.9 %
Other income (expense):
Interest income		61,416		161,926			22,807		163.7 %
Investment income (loss)		85,554		(61,486)			(8,660)		N.A.
Contingent litigation expenses		(99,000)		-			-		(100.0 %)
Other income		13,130		10,892			1,534		(17.0 %)
Total other income		61,100		111,332			15,681		82.2 %
Income before taxes and    income from equity in affiliates		1,149,549		1,209,247			170,320		5.2 %
Income tax expense		(267,108)		(262,360)			(36,953)		(1.8 %)
Income from equity in affiliates		89,148		54,128			7,624		(39.3 %)
Net income		971,589		1,001,015			140,991		3.0 %
Less: net loss attributable to     non-controlling interests		(4,982)		(8,479)			(1,194)		70.2 %
Net income attributable to     Noah shareholders		976,571		1,009,494			142,185		3.4 %
Income per ADS, basic		14.29		14.53			2.05		1.7 %
Income per ADS, diluted		14.28		14.53			2.05		1.8 %
Margin analysis:
Operating margin		35.1 %		33.3 %			33.3 %
Net margin		31.3 %		30.4 %			30.4 %
Weighted average ADS     equivalent[1]:
Basic		68,332,032		69,473,972			69,473,972
Diluted		68,396,142		69,484,516			69,484,516
ADS equivalent outstanding at     end of period		62,603,864		65,261,465			65,261,465
[1] Assumes all outstanding ordinary shares are represented by ADSs. Five ordinary share represents one ADSs.

 

 

Noah Holdings Limited
Condensed Comprehensive Income Statements
(unaudited)
		Three months ended
		December 31,		December 31,		December 31,				Change
		2022		2023		2023
		RMB'000		RMB'000		USD'000
Net income		140,523		213,340		30,048				51.8 %
Other comprehensive loss, net of tax:
Foreign currency translation adjustments		(36,494)		(68,333)		(9,625)				87.2 %
Comprehensive income		104,029		145,007		20,423				39.4 %
Less: Comprehensive income (loss) attributable to non-controlling interests		598		(3,287)		(463)				N.A.
Comprehensive income attributable to Noah shareholders		103,431		148,294		20,886				43.4 %

 

 

Noah Holdings Limited
Condensed Comprehensive Income Statements
(Audited)
		Twelve months ended
		December 31,		December 31,		December 31,				Change
		2022		2023		2023
		RMB'000		RMB'000		USD'000
Net income		971,589		1,001,015		140,991				3.0 %
Other comprehensive income, net of tax:
Foreign currency translation adjustments		137,555		76,990		10,844				(44.0 %)
Comprehensive income		1,109,144		1,078,005		151,835				(2.8 %)
Less: Comprehensive loss attributable to non-controlling interests		(4,895)		(8,651)		(1,218)				76.7 %
Comprehensive income attributable to Noah shareholders		1,114,039		1,086,656		153,053				(2.5 %)

 

 

Noah Holdings Limited
Supplemental Information
(unaudited)
		As of
		December 31, 2022		December 31, 2023		Change
Number of registered clients		437,288		455,827		4.2 %
Number of relationship managers		1,276		1,252		(1.9 %)
Number of cities in mainland China under    coverage		75		44		(41.3 %)
		Three months ended
		December 31, 2022		December 31, 2023		Change
		(in millions of RMB, except number of active clients and percentages)
Number of active clients		12,904		9,033		(30.0 %)
Transaction value:
Private equity products		1,452		717		(50.6 %)
Private secondary products		3,362		4,153		23.5 %
Mutual fund products		12,183		10,901		(10.5 %)
Other products		1,003		764		(23.8 %)
Total transaction value		18,000		16,535		(8.1 %)
		Twelve months ended
		December 31, 2022		December 31, 2023		Change
		(in millions of RMB, except number of active clients and percentages)
Number of active clients		35,877		22,453		(37.4 %)
Transaction value:
Private equity products		11,037		3,330		(69.8 %)
Private secondary products		13,109		18,403		40.4 %
Mutual fund products		43,133		47,837		10.9 %
Other products		3,002		4,486		49.4 %
Total transaction value		70,281		74,056		5.4 %

 

 

Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
		Three months ended December 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		303,460		-		-		303,460
Recurring service fees		167,109		-		-		167,109
Performance-based income		146		-		-		146
Other service fees		50,644		-		8,600		59,244
Total revenues from others		521,359		-		8,600		529,959
Revenues from funds Gopher manages
One-time commissions		4,350		105		-		4,455
Recurring service fees		87,399		174,964		-		262,363
Performance-based income		-		11,762		-		11,762
Total revenues from funds Gopher     manages		91,749		186,831		-		278,580
Total revenues		613,108		186,831		8,600		808,539
Less: VAT related surcharges		(2,778)		(650)		(5,603)		(9,031)
Net revenues		610,330		186,181		2,997		799,508
Operating costs and expenses:
Compensation and benefits
Relationship managers		(132,666)		(8,007)		-		(140,673)
Others		(127,236)		(24,783)		(8,058)		(160,077)
Total compensation and benefits		(259,902)		(32,790)		(8,058)		(300,750)
Selling expenses		(119,891)		(27,974)		(9,534)		(157,399)
General and administrative   expenses		(63,627)		(27,058)		(7,952)		(98,637)
Provision for (reversal of) credit    losses		(2,897)		(1,429)		5,351		1,025
Other operating expenses		(15,790)		(1,562)		(8,297)		(25,649)
Government grants		2,502		124		-		2,626
Total operating costs and expenses		(459,605)		(90,689)		(28,490)		(578,784)
Income (loss) from operations		150,725		95,492		(25,493)		220,724

 

 

Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
		Three months ended December 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		266,592		-		-		266,592
Recurring service fees		195,872		-		-		195,872
Performance-based income		13,998		-		-		13,998
Other service fees		48,245		-		12,625		60,870
Total revenues from others		524,707		-		12,625		537,332
Revenues from funds Gopher manages
One-time commissions		576		3,339		-		3,915
Recurring service fees		124,040		154,336		-		278,376
Performance-based income		187		66,632		-		66,819
Total revenues from funds Gopher    manages		124,803		224,307		-		349,110
Total revenues		649,510		224,307		12,625		886,442
Less: VAT related surcharges		(2,563)		(1,139)		(670)		(4,372)
Net revenues		646,947		223,168		11,955		882,070
Operating costs and expenses:
Compensation and benefits
Relationship managers		(137,016)		(9,646)		-		(146,662)
Others		(152,971)		(73,585)		(9,928)		(236,484)
Total compensation and benefits		(289,987)		(83,231)		(9,928)		(383,146)
Selling expenses		(121,259)		(20,611)		(936)		(142,806)
General and administrative    expenses		(52,723)		(22,609)		(8,620)		(83,952)
Provision for ( reversal of ) credit    losses		249		1,068		(21,153)		(19,836)
Other operating expenses		(9,344)		(4,629)		(24,284)		(38,257)
Government grants		5,224		408		33		5,665
Total operating costs and expenses		(467,840)		(129,604)		(64,888)		(662,332)
Income (loss) from operations		179,107		93,564		(52,933)		219,738

 

 

Noah Holdings Limited
Segment Condensed Income Statements
(Aaudited)
			Twelve months ended December 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			1,072,838						-						-						1,072,838
Recurring service fees			707,580						-						-						707,580
Performance-based income			16,344						-						-						16,344
Other service fees			221,917						-						48,662						270,579
Total revenues from others			2,018,679						-						48,662						2,067,341
Revenues from funds Gopher manages
One-time commissions			13,732						2,633						-						16,365
Recurring service fees			398,226						714,624						-						1,112,850
Performance-based income			69,977						51,288						-						121,265
Total revenues from funds Gopher     manages			481,935						768,545						-						1,250,480
Total revenues			2,500,614						768,545						48,662						3,317,821
Less: VAT related surcharges			(9,365)						(2,374)						(11,386)						(23,125)
Net revenues			2,491,249						766,171						37,276						3,294,696
Operating costs and expenses:
Compensation and benefits
Relationship managers			(631,082)						(24,378)						-						(655,460)
Others			(544,804)						(224,308)						(32,181)						(801,293)
Total compensation and benefits			(1,175,886)						(248,686)						(32,181)						(1,456,753)
Selling expenses			(370,861)						(88,827)						(26,090)						(485,778)
General and administrative   expenses			(193,248)						(59,367)						(23,112)						(275,727)
Provision for (reversal of) credit   losses			(910)						(921)						8,859						7,028
Other operating expenses			(44,042)						(3,348)						(65,116)						(112,506)
Government grants			103,597						21,638						1,720						126,955
Total operating costs and expenses			(1,681,350)						(379,511)						(135,920)						(2,196,781)
Income (loss) from operations			809,899						386,660						(98,644)						1,097,915

 

 

Noah Holdings Limited
Segment Condensed Income Statements
(Audited)
		Twelve months ended December 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		617,636		-		-		617,636
Recurring service fees		768,980		-		-		768,980
Performance-based income		184,048		-		-		184,048
Other service fees		144,101		-		79,340		223,441
Total revenues from others		1,714,765		-		79,340		1,794,105
Revenues from funds Gopher     manages
One-time commissions		13,953		49,856		-		63,809
Recurring service fees		463,314		682,121		-		1,145,435
Performance-based income		18,407		107,121		-		125,528
Total revenues from funds Gopher     manages		495,674		839,098		-		1,334,772
Total revenues		2,210,439		839,098		79,340		3,128,877
Less: VAT related surcharges		(10,462)		(4,630)		(13,413)		(28,505)
Net revenues		2,199,977		834,468		65,927		3,100,372
Operating costs and expenses:
Compensation and benefits
Relationship managers		(460,237)		(36,910)		-		(497,147)
Others		(619,397)		(285,101)		(40,237)		(944,735)
Total compensation and benefits		(1,079,634)		(322,011)		(40,237)		(1,441,882)
Selling expenses		(299,769)		(41,885)		(7,360)		(349,014)
General and administrative      expenses		(153,643)		(55,872)		(25,804)		(235,319)
Provision for (reversal of) credit losses		718		386		(680)		424
Other operating expenses		(15,412)		(6,369)		(93,872)		(115,653)
Government grants		89,223		39,120		1,178		129,521
Total operating costs and    expenses		(1,458,517)		(386,631)		(166,775)		(2,011,923)
Income (loss) from operations		741,460		447,837		(100,848)		1,088,449

 

 

Noah Holdings Limited
Supplement Revenue Information by Geography
(unaudited)
		Three months ended December 31, 2023
		Wealth Management  Business		Asset Management Business		Other Businesses		Total
		RMB'000		RMB'000		RMB'000		RMB'000
Revenues:
Mainland China		262,775		110,975		8,600		382,350
Hong Kong		289,973		47,012		-		336,985
Others		60,360		28,844		-		89,204
Total revenues		613,108		186,831		8,600		808,539

 

 

Noah Holdings Limited
Supplement Revenue Information by Geography
(unaudited)
		Three months ended December 31, 2022
		Wealth Management  Business		Asset Management Business		Other Businesses		Total
		RMB'000		RMB'000		RMB'000		RMB'000
Revenues:
Mainland China		442,208		147,301		12,625		602,134
Hong Kong		182,111		54,976		-		237,087
Others		25,191		22,030		-		47,221
Total revenues		649,510		224,307		12,625		886,442

 

 

Noah Holdings Limited
Supplement Revenue Information by Geography
(Audited)
		Twelve months ended December 31, 2023
		Wealth Management  Business		Asset Management Business		Other Businesses		Total
		RMB'000		RMB'000		RMB'000		RMB'000
Revenues:
Mainland China		1,366,538		469,193		48,662		1,884,393
Hong Kong		921,091		193,588		-		1,114,679
Others		212,985		105,764		-		318,749
Total revenues		2,500,614		768,545		48,662		3,317,821

 

 

Noah Holdings Limited
Supplement Revenue Information by Geography
(Audited)
		Twelve months ended December 31, 2022
		Wealth Management  Business		Asset Management Business		Other Businesses		Total
		RMB'000		RMB'000		RMB'000		RMB'000
Revenues:
Mainland China		1,548,395		672,785		79,340		2,300,520
Hong Kong		508,907		83,029		-		591,936
Others		153,137		83,284		-		236,421
Total revenues		2,210,439		839,098		79,340		3,128,877

 

 

Noah Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In RMB, except for per ADS data and percentages)
(unaudited)
		Three months ended
		December 31,		December 31,		Change
		2022		2023
		RMB'000		RMB'000
Net income attributable to Noah shareholders		139,909		216,530		54.8 %
Adjustment for share-based compensation		12,316		21,935			78.1 %
Less: tax effect of adjustments		3,066		4,740			54.6 %
Adjusted net income attributable to Noah shareholders    (non-GAAP)		149,159		233,725			56.7 %
Net margin attributable to Noah shareholders		15.9 %		27.1 %
Non-GAAP net margin attributable to Noah shareholders		16.9 %		29.2 %
Net income attributable to Noah shareholders per ADS,     diluted		2.01		3.12			55.2 %
Non-GAAP net income attributable to Noah shareholders     per ADS, diluted		2.14		3.36			57.0 %

 

 

Noah Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In RMB, except for per ADS data and percentages)
(unaudited)
	Twelve months ended
	December 31		December 31		Change
	2022		2023
	RMB'000		RMB'000
Net income attributable to Noah shareholders	976,571		1,009,494		3.4 %
Adjustment for share-based compensation	42,300		11,530			(72.7 %)
Less: tax effect of adjustments	10,279		2,220			(78.4 %)
Adjusted net income attributable to Noah shareholders    (non-GAAP)	1,008,592		1,018,804			1.0 %
Net margin attributable to Noah shareholders	31.5 %		30.6 %
Non-GAAP net margin attributable to Noah shareholders	32.5 %		30.9 %
Net income attributable to Noah shareholders per ADS,     diluted	14.28		14.53			1.8 %
Non-GAAP net income attributable to Noah shareholders     per ADS, diluted	14.75		14.66			(0.6 %)

 

 

[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.

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

 

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SOURCE Noah Holdings Limited

FAQ

What was the percentage change in net revenues for Q4 2023 compared to Q4 2022?

The net revenues decreased by 9.4% in Q4 2023 compared to the same period in 2022.

How did the net revenues change for FY 2023 compared to 2022?

For FY 2023, net revenues increased by 6.3% from 2022, primarily driven by a 59.8% increase in one-time commissions from the distribution of insurance products.

What was the percentage increase in net income for Q4 2023 compared to the same period in 2022?

Net income for Q4 2023 increased by 54.8% from the corresponding period in 2022.

What was the change in one-time commissions for the Wealth Management business in Q4 2023?

In Q4 2023, the Wealth Management business saw a 15.1% increase in one-time commissions.

How did the operating costs and expenses change in Q4 2023 compared to the same period in 2022?

Operating costs and expenses for Q4 2023 decreased by 12.6% compared to the same period in 2022.

What was the net margin for Q4 2023?

Noah Holdings reported a net margin of 26.7% for Q4 2023, an increase from 15.9% in the corresponding period in 2022.