Noah Holdings Limited Announces Unaudited Financial Results for the First Quarter of 2021
Noah Holdings Limited (NYSE: NOAH) reported strong financial results for Q1 2021, achieving net revenues of RMB1,224.7 million (US$186.9 million), a 64.1% year-over-year increase. Income from operations nearly doubled, reaching RMB502.4 million (US$76.7 million), while net income attributable to shareholders surged 86.9% to RMB454.1 million (US$69.3 million). The wealth management business saw notable growth, with a 71.3% increase in revenues, and a record number of active clients. However, the asset management segment's AUM decreased 4.7% year-over-year. Non-GAAP net income guidance for 2021 is estimated at RMB1.2 billion to RMB1.3 billion.
- Net revenues up 64.1% year-over-year to RMB1,224.7 million.
- Income from operations increased by 96.0% to RMB502.4 million.
- Net income attributable to shareholders rose 86.9% to RMB454.1 million.
- Wealth management revenue grew by 71.3%.
- Record high number of active clients at 27,846, a 65.4% increase year-over-year.
- Asset management AUM decreased 4.7% compared to Q1 2020.
- Other businesses revenue dropped 70.4% year-over-year.
SHANGHAI, May 10, 2021 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), 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 2021.
FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS
- Net revenues for the first quarter of 2021 were RMB1,224.7 million (US
$186.9 million ), a64.1% increase from the corresponding period in 2020, and a28.5% increase from the fourth quarter of 2020.
(RMB millions, except percentages) | Q1 2020 | Q1 2021 | YoY Change | ||||
Wealth management | 552.6 | 946.4 | |||||
Asset management | 165.4 | 270.0 | |||||
Other businesses | 28.1 | 8.3 | ( | ||||
Total net revenues | 746.1 | 1,224.7 |
- Income from operations for the first quarter of 2021 was RMB502.4 million (US
$76.7 million ), a96.0% increase from the corresponding period in 2020, and a49.8% increase from the fourth quarter of 2020.
(RMB millions, except percentages) | Q1 2020 | Q1 2021 | YoY Change | ||||
Wealth management | 166.2 | 418.1 | |||||
Asset management | 93.5 | 114.5 | |||||
Other businesses | (3.4) | (30.2) | |||||
Total income from operations | 256.3 | 502.4 |
- Net income attributable to Noah shareholders for the first quarter of 2021 was RMB454.1 million (US
$69.3 million ), an86.9% increase from the corresponding period in 2020. - Non-GAAP[1] net income attributable to Noah shareholders for the first quarter of 2021 was RMB461.9 million (US
$70.5 million ), a79.7% increase from the corresponding period in 2020, and a76.0% increase from the fourth quarter of 2020.
FIRST QUARTER 2021 OPERATIONAL UPDATES
Wealth Management Business
We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. Noah primarily distributes private equity, public securities and other products denominated in RMB and other currencies.
- Total number of registered clients as of March 31, 2021 was 384,021, a
19.6% increase from March 31, 2020, and a6.5% increase from December 31, 2020. - Total number of active clients[2], which excluded mutual fund-only clients during the first quarter of 2021 was 6,299, a
54.6% increase from the first quarter of 2020, and a19.6% increase from the fourth quarter of 2020. Including mutual fund-only clients, the number of clients who transacted with us during the first quarter of 2021 was 27,846, a65.4% increase from the first quarter of 2020, and a42.8% increase from the fourth quarter of 2020. - Aggregate value of investment products distributed during the first quarter of 2021 was RMB27.1 billion (US
$4.1 billion ), including private equity products that was distributed directly by our asset management segment, representing a16.8% increase from the first quarter of 2020, primarily due to a62.5% growth of private equity products and a23.4% growth of secondary market equity products. The aggregate value increased by27.1% compared with the fourth quarter of 2020 due to the significant growth of public securities products offered by the Company.
Product type | Three months ended March 31, | ||||||
2020 | 2021 | ||||||
(RMB in billions, except percentages) | |||||||
Public securities products | 19.1 | 21.5 | |||||
Private equity products[3] | 2.9 | 4.8 | |||||
Credit products | 0.2 | - | - | ||||
Other products | 1.0 | 0.8 | |||||
All products | 23.2 | 27.1 | |||||
- Coverage network in mainland China covered 82 cities as of March 31, 2021, compared with 78 cities as of March 31, 2020 and 80 cities as of December 31, 2020.
- Number of relationship managers was 1,246 as of March 31, 2021, a
3.1% increase from March 31, 2020, and a1.2% increase from December 31, 2020. The turnover rate of core "elite" relationship managers was0.3% , compared with5.1% as of December 31, 2020.
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, the United States and Canada. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities, credit to multi-strategy investments denominated in Renminbi and other currencies.
- Total assets under management as of March 31, 2021 were RMB154.1 billion (US
$23.5 billion ), a0.8% increase from December 31, 2020 and a4.7% decrease from March 31, 2020, primarily due to the voluntary redemptions of certain credit products.
Investment type | As of |
| Distribution/ | As of | |||||||
(RMB billions, except percentages) | |||||||||||
Private equity | 117.7 | 4.2 | - | 121.9 | |||||||
Real estate | 12.7 | - | 2.0 | 10.7 | |||||||
Public securities[4] | 9.8 | 1.4 | 0.7 | 10.5 | |||||||
Credit[5] | 5.5 | - | 0.4 | 5.1 | |||||||
Multi-strategies | 7.1 | 0.1 | 1.3 | 5.9 | |||||||
All Investments | 152.8 | 5.7 | 4.4 | 154.1 | |||||||
Other Businesses
Since the fourth quarter of 2020, our other businesses segment has been transitioning to "Noah Digital Intelligence", aiming to develop a "turnkey asset management platform" ("TAMP"), to create an additional distribution channel beyond our wealth management, as well as to provide more comprehensive services and investment products.
Ms. Jingbo Wang, co-founder and CEO of Noah, said, "In the first quarter of 2021, I am proud to report that our active clients number, including mutual funds, grew
FIRST QUARTER 2021 FINANCIAL RESULTS
Net Revenues
Net revenues for the first quarter of 2021 were RMB1,224.7 million (US
- Wealth Management Business
- Net revenues from one-time commissions for the first quarter of 2021 were RMB293.2 million (US
- Net revenues from recurring service fees for the first quarter of 2021 were RMB313.7 million (US
- Net revenues from performance-based income for the first quarter of 2021 were RMB325.6 million (US
- Net revenues from other service fees for the first quarter of 2021 were RMB13.9 million (US
- Asset Management Business
- Net revenues from one-time commissions for the first quarter of 2021 was RMB30.0 million (US
- Net revenues from recurring service fees for the first quarter of 2021 were RMB161.2 million (US
- Net revenues from performance-based income for the first quarter of 2021 were RMB77.5 million (US
- Other Businesses
- Net revenues for the first quarter of 2021 were RMB8.3 million (US
Operating Costs and Expenses
Operating costs and expenses for the first quarter of 2021 were RMB722.3 million (US
- Operating costs and expenses for the wealth management business for the first quarter of 2021 were RMB528.3 million (US
$80.6 million ), a36.7% increase from the corresponding period in 2020, primarily due to less compensation and benefits as well as less expenses incurred in the first quarter of 2020 due to the COVID-19 pandemic, and partially offset by a decrease in other operating expense. - Operating costs and expenses for the asset management business for the first quarter of 2021 were RMB155.6 million (US
$23.7 million ), a116.3% increase from the corresponding period in 2020, primarily due to less compensation and benefits as well as less expenses incurred in the first quarter of 2020 due to the COVID-19 pandemic. - Operating costs and expenses for other businesses for the first quarter of 2021 were RMB38.5 million (US
$5.9 million ), a22.1% increase from the corresponding period in 2020, primarily due to less compensation and benefits incurred in the first quarter of 2020 due to the COVID-19 pandemic.
Operating Margin
Operating margin for the first quarter of 2021 was
- Operating margin for the wealth management business for the first quarter of 2021 was
44.2% , compared with30.1% for the corresponding period in 2020. - Operating margin for the asset management business for the first quarter of 2021 was
42.4% , compared with56.5% for the corresponding period in 2020. - Loss from operation for the other businesses for the first quarter of 2021 was RMB30.2 million (US
$4.6 million ), compared with an operating loss of RMB3.5 million for the corresponding period in 2020, due to less revenue generated in the first quarter of 2021.
Investment Income
Investment income for the first quarter of 2021 was RMB34.4 million (US
Income Tax Expenses
Income tax expenses for the first quarter of 2021 were RMB129.8 million (US
Net Income
- Net Income
- Net income for the first quarter of 2021 was RMB452.9 million (US
- Net margin for the first quarter of 2021 was
- Net income attributable to Noah shareholders for the first quarter of 2021 was RMB454.1 million (US
- Net margin attributable to Noah shareholders for the first quarter of 2021 was
- Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2021 was RMB6.77 (US
- Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders for the first quarter of 2021 was RMB461.9 million (US
- Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2021 was
- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2021 was RMB6.84 (US
Balance Sheet and Cash Flow
As of March 31, 2021, the Company had RMB4,904.3 million (US
Net cash inflow from the Company's operating activities during the first quarter of 2021 was RMB495.9 million (US
Net cash outflow from the Company's investing activities during the first quarter of 2021 was RMB68.9 million (US
Net cash outflow from the Company's financing activities was RMB533.7 million (US
RECENT DEVELOPMENTS
On May 9, 2021, the Company, through certain of its subsidiaries, entered into definitive agreements ("Transaction Agreements") with certain subsidiaries and affiliates of Sunny World Group to purchase new office premises, with a gross floor area of approximately 72,000 square meters in Shanghai Hongqiao Central Business District for a total cash consideration of approximately RMB2.2 billion (US
The Company plans to finance the transaction by cash from our balance sheet. The consideration will be made in installments according to the condition precedents set up by Transaction Agreements. The transaction is subject to the satisfaction of certain conditions in the Transaction Agreements.
Ms. Jingbo Wang, co-founder and CEO of Noah, commented," After fifteen years of operations, Noah is very glad to purchase this commercial property, consisting of four high-end, well-designed office buildings located at the center of the Hongqiao comprehensive transportation hub in Shanghai, one of the nation's busiest transportation hubs, to be our new global headquarters. I believe this space will also serve as an upgraded client interface for Noah and robust activity center connecting clients in Eastern China to us, enhancing their overall client experience and improving our corporate image."
[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring settlement expenses and net of relevant tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release. |
[2] "Active clients" for a given period refers to registered high net worth clients who purchase investment products distributed or provided by Noah during that given period, excluding clients who transacted only on our online mutual fund platform. |
[3] Since the fourth quarter of 2020, we distributed all private equity products directly from our asset management business, but for consistency purposes, we included those transaction values herein. |
[4] The asset distribution/redemption of public securities also includes market appreciation or depreciation. |
[5] Since this quarter, we reclassified all remaining mezzanine financing products linked to corporate merger and acquisitions and buy outs from credit to private equity in the amount of RMB4.7 billion, considering its nature is more akin to equity than credit. We have also revised the comparative period presentation to conform to current period presentation. |
2021 FORECAST
The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2021 will be in the range of RMB1.2 billion to RMB1.3 billion. This estimate reflects management's current business outlook and is subject to change.
CONFERENCE CALL
Senior management will host a combined English and Chinese language conference call to discuss the Company's first quarter 2021 unaudited financial results and recent business activities.
The conference call may be accessed with the following details:
Conference call details | |
Date/Time
| Monday, May 10, 2021 at 8:00 p.m., U.S. Eastern Time Tuesday, May 11, 2021 at 8:00 a.m., Hong Kong Time |
Dial in details | |
- United States Toll Free | 1-888-317-6003 |
- Mainland China Toll Free | 4001-206-115 |
- Hong Kong Toll Free | 800-963-976 |
- International | 1-412-317-6061 |
Conference Title | Noah Holdings 1Q21 Earnings Conference Call |
Participant Elite Entry Number | 0955316 |
Participants will need to dial in 10-15 minutes early and use the above Elite Entry Number in order to join the conference. A telephone replay will be available starting one hour after the end of the conference call until May 17, 2021 at +1-877-344-7529 (US Toll Free) or 1-412-317-0088 (International Toll). The replay access code is 10154694.
A live and archived webcast of the conference call will be available at Noah's investor relations website under the News & Events section at ir.noahgroup.com.
DISCUSSION OF NON-GAAP MEASURES
In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring settlement expenses 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 2021, Noah distributed RMB27.1 billion (US
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 1,246 relationship managers across 82 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, United States, Canada and Singapore. The Company's wealth management business had 384,021 registered clients as of March 31, 2021. As a leading alternative multi-asset manager in China, Gopher Asset Management manages private equity, real estate, public securities, credit and multi-strategy investments denominated in Renminbi and other currencies. The Company also provides lending and other services.
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 2021 ended March 31, 2021 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 RMB6.5518 to US
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. Among other things, the outlook for 2021 and quotations from management in this announcement, as well as Noah's strategic and operational plans, contain forward-looking 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 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. 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; 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, including its annual reports on Form 20-F. 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, | |||||
2020 | 2021 | 2021 | |||||
RMB'000 | RMB'000 | USD'000 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | 5,005,211 | 4,904,316 | 748,545 | ||||
Restricted cash | 9,993 | 9,995 | 1,526 | ||||
Short-term investments | 114,928 | 143,140 | 21,847 | ||||
Accounts receivable, net | 434,458 | 444,421 | 67,832 | ||||
Loans receivable, net | 418,947 | 407,595 | 62,211 | ||||
Amounts due from related parties | 520,178 | 715,396 | 109,191 | ||||
Other current assets | 199,447 | 203,938 | 31,127 | ||||
Total current assets | 6,703,162 | 6,828,801 | 1,042,279 | ||||
Long-term investments, net | 536,384 | 556,166 | 84,888 | ||||
Investment in affiliates | 1,264,685 | 1,268,909 | 193,673 | ||||
Property and equipment, net | 248,669 | 235,974 | 36,017 | ||||
Operating lease right-of-use assets, net | 274,154 | 268,395 | 40,965 | ||||
Deferred tax assets | 224,240 | 223,783 | 34,155 | ||||
Other non-current assets | 148,292 | 214,807 | 32,786 | ||||
Total Assets | 9,399,586 | 9,596,835 | 1,464,763 | ||||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accrued payroll and welfare expenses | 705,622 | 844,021 | 128,823 | ||||
Income tax payable | 140,777 | 244,518 | 37,321 | ||||
Deferred revenues | 71,613 | 85,143 | 12,995 | ||||
Other current liabilities | 432,650 | 448,127 | 68,398 | ||||
Contingent liabilities | 530,433 | 532,612 | 81,292 | ||||
Total current liabilities | 1,881,095 | 2,154,421 | 328,829 | ||||
Operating lease liabilities, non-current | 194,384 | 180,308 | 27,520 | ||||
Deferred tax liabilities | 45,881 | 46,139 | 7,042 | ||||
Other non-current liabilities | 855 | 844 | 129 | ||||
Total Liabilities | 2,122,215 | 2,381,712 | 363,520 | ||||
Equity | 7,277,371 | 7,215,123 | 1,101,243 | ||||
Total Liabilities and Equity | 9,399,586 | 9,596,835 | 1,464,763 | ||||
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 | |||||||
2020 | 2021 | 2021 | ||||||||
Revenues: | RMB'000 | RMB'000 | USD'000 | |||||||
Revenues from others: | ||||||||||
One-time commissions | 207,185 | 278,704 | 42,539 | |||||||
Recurring service fees | 148,457 | 220,513 | 33,657 | |||||||
Performance-based income | 14,618 | 276,524 | 42,206 | 1, | ||||||
Other service fees | 66,608 | 23,713 | 3,619 | ( | ||||||
Total revenues from others | 436,868 | 799,454 | 122,021 | |||||||
Revenues from funds Gopher manages: | ||||||||||
One-time commissions | 4,749 | 46,146 | 7,043 | |||||||
Recurring service fees | 303,450 | 256,697 | 39,180 | ( | ||||||
Performance-based income | 5,175 | 128,556 | 19,621 | 2, | ||||||
Total revenues from funds Gopher | 313,374 | 431,399 | 65,844 | |||||||
Total revenues | 750,242 | 1,230,853 | 187,865 | |||||||
Less: VAT related surcharges | (4,125) | (6,117) | (934) | |||||||
Net revenues | 746,117 | 1,224,736 | 186,931 | |||||||
Operating costs and expenses: | ||||||||||
Compensation and benefits | ||||||||||
Relationship manager | (170,052) |
(206,872) | (31,575) | |||||||
Others | (194,787) | (375,253) | (57,275) | |||||||
Total compensation and benefits | (364,839) | (582,125) | (88,850) | |||||||
Selling expenses | (44,540) | (83,455) | (12,738) | |||||||
General and administrative |
(63,685) |
(80,285) |
(12,254) |
| ||||||
Provision for credit losses | (2,809) | (3,407) | (520) | |||||||
Other operating expenses | (32,617) | (27,088) | (4,134) | ( | ||||||
Government subsidies | 18,635 | 54,014 | 8,244 | |||||||
Total operating costs and | (489,855) | (722,346) | (110,252) | |||||||
Income from operations | 256,262 | 502,390 | 76,679 | |||||||
Other income: | ||||||||||
Interest income | 22,170 | 22,927 | 3,499 | |||||||
Investment income | 17,566 | 34,361 | 5,245 | |||||||
Other income (expense) | 858 | (486) | (74) | N.A. | ||||||
Total other income | 40,594 | 56,802 | 8,670 | |||||||
Income before taxes and income | 296,856 | 559,192 | 85,349 | |||||||
Income tax expense | (68,276) | (129,846) | (19,818) | |||||||
Income from equity in affiliates | 15,076 | 23,513 | 3,589 | |||||||
Net income | 243,656 | 452,859 | 69,120 | |||||||
Less: net income (loss) attributable | 631 | (1,234) | (188) | N.A. | ||||||
Net income attributable to Noah | 243,025 | 454,093 | 69,308 | |||||||
Income per ADS, basic | 3.94 | 6.77 | 1.03 | |||||||
Income per ADS, diluted | 3.92 | 6.72 | 1.03 | |||||||
Margin analysis: | ||||||||||
Operating margin | ||||||||||
Net margin | ||||||||||
Weighted average ADS equivalent[1]: | ||||||||||
Basic | 61,619,852 | 67,091,780 | 67,091,780 | |||||||
Diluted | 61,991,117 | 67,572,038 | 67,572,038 | |||||||
ADS equivalent outstanding at end |
61,635,280 |
59,976,690 |
59,976,690 | |||||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two | ||||||||||
Noah Holdings Limited | |||||||||
Condensed Comprehensive Income Statements | |||||||||
(unaudited) | |||||||||
Three months ended | |||||||||
March 31, | March 31, | March 31, | Change | ||||||
2020 | 2021 | 2021 | |||||||
RMB'000 | RMB'000 | USD'000 | |||||||
Net income | 243,656 | 452,859 | 69,120 | ||||||
Other comprehensive income, net of tax: | |||||||||
Foreign currency translation |
37,319 |
8,409 | 1,283 | ( | |||||
Fair value fluctuation of available for |
(4) |
- | - | N.A. | |||||
Comprehensive income | 280,971 | 461,268 | 70,403 | ||||||
Less: Comprehensive income (loss) | 626 | (1,201) | (183) | N.A. | |||||
Comprehensive income attributable to | 280,345 | 462,469 | 70,586 | ||||||
Noah Holdings Limited | |||||
Supplemental Information | |||||
(unaudited) | |||||
As of | |||||
March 31, | March 31, | Change | |||
Number of registered clients | 321,148 | 384,021 | |||
Number of relationship managers | 1,209 | 1,246 | |||
Number of cities under coverage in mainland | 78 | 82 | |||
Three months ended | |||||
March 31, | March 31, | Change | |||
(in millions of RMB, except number of active clients and | |||||
Number of active clients[6] | 4,075 | 6,299 | |||
Number of active clients including mutual fund- | 16,831 | 27,846 | |||
Transaction value: | |||||
Private equity products | 2,931 | 4,763 | |||
Public securities products | 19,111 | 21,509 | |||
Credit products | 183 | - | N.A. | ||
Other products | 969 | 820 | ( | ||
Total transaction value | 23,194 | 27,092 | |||
[6] "Active clients" for a given period refers to registered high net worth clients who purchase investment products distributed or provided by Noah during that given period, excluding clients who only transacted on our online mutual fund platform. | |||||
Noah Holdings Limited | ||||||||
Segment Condensed Income Statements | ||||||||
(unaudited) | ||||||||
Three months ended March 31, 2021 | ||||||||
Wealth | Asset | Other | Total | |||||
RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||||
Revenues: | ||||||||
Revenues from others: | ||||||||
One-time commissions | 278,463 | 241 | - | 278,704 | ||||
Recurring service fees | 219,319 | 1,194 | - | 220,513 | ||||
Performance-based income | 276,524 | - | - | 276,524 | ||||
Other service fees | 14,017 | 1,390 | 8,306 | 23,713 | ||||
Total revenues from others | 788,323 | 2,825 | 8,306 | 799,454 | ||||
Revenues from funds Gopher manages: | ||||||||
One-time commissions | 16,270 | 29,876 | - | 46,146 | ||||
Recurring service fees | 95,971 | 160,726 | - | 256,697 | ||||
Performance-based income | 50,726 | 77,830 | - | 128,556 | ||||
Total revenues from funds Gopher | 162,967 | 268,432 | - | 431,399 | ||||
Total revenues | 951,290 | 271,257 | 8,306 | 1,230,853 | ||||
Less: VAT related surcharges | (4,838) | (1,229) | (50) | (6,117) | ||||
Net revenues | 946,452 | 270,028 | 8,256 | 1,224,736 | ||||
Operating costs and expenses: | ||||||||
Compensation and benefits | ||||||||
Relationship manager compensation | (206,790) | (82) | - | (206,872) | ||||
Other compensations | (215,289) | (138,854) | (21,110) | (375,253) | ||||
Total compensation and benefits | (422,079) | (138,936) | (21,110) | (582,125) | ||||
Selling expenses | (66,827) | (12,001) | (4,627) | (83,455) | ||||
General and administrative expenses | (55,924) | (18,094) | (6,267) | (80,285) | ||||
Provision for credit losses | - | - | (3,407) | (3,407) | ||||
Other operating expenses | (22,083) | (1,805) | (3,200) | (27,088) | ||||
Government subsidies | 38,596 | 15,283 | 135 | 54,014 | ||||
Total operating costs and expenses | (528,317) | (155,553) | (38,476) | (722,346) | ||||
Income (loss) from operations | 418,135 | 114,475 | (30,220) | 502,390 | ||||
Noah Holdings Limited | |||||||
Segment Condensed Income Statements | |||||||
(unaudited) | |||||||
Three months ended March 31, 2020 | |||||||
Wealth Management Business | Asset Management Business | Other Businesses | Total | ||||
RMB'000 | RMB'000 | RMB'000 | RMB'000 | ||||
Revenues: | |||||||
Revenues from others: | |||||||
One-time commissions | 206,944 | 241 | - | 207,185 | |||
Recurring service fees | 147,763 | 694 | - | 148,457 | |||
Performance-based income | 14,618 | - | - | 14,618 | |||
Other service fees | 37,819 | 134 | 28,655 | 66,608 | |||
Total revenues from others | 407,144 | 1,069 | 28,655 | 436,868 | |||
Revenues from funds Gopher | |||||||
One-time commissions | 4,749 | - | - | 4,749 | |||
Recurring service fees | 142,860 | 160,590 | - | 303,450 | |||
Performance-based income | 556 | 4,619 | - | 5,175 | |||
Total revenues from funds Gopher | 148,165 | 165,209 | - | 313,374 | |||
Total revenues | 555,309 | 166,278 | 28,655 | 750,242 | |||
Less: VAT related surcharges | (2,670) | (868) | (587) | (4,125) | |||
Net revenues | 552,639 | 165,410 | 28,068 | 746,117 | |||
Operating costs and expenses: | |||||||
Compensation and benefits | |||||||
Relationship manager |
(170,052) |
- |
- |
(170,052) | |||
Other compensations | (118,227) | (61,313) | (15,247) | (194,787) | |||
Total compensation and benefits | (288,279) | (61,313) | (15,247) | (364,839) | |||
Selling expenses | (36,555) | (7,314) | (671) | (44,540) | |||
General and administrative | (47,582) | (10,730) | (5,373) | (63,685) | |||
Provision for credit losses | - | - | (2,809) | (2,809) | |||
Other operating expenses | (23,602) | (1,546) | (7,469) | (32,617) | |||
Government subsidies | 9,607 | 8,981 | 47 | 18,635 | |||
Total operating costs and expenses | (386,411) | (71,922) | (31,522) | (489,855) | |||
Income (loss) from operations | 166,228 | 93,488 | (3,454) | 256,262 | |||
Noah Holdings Limited | |||||||
Supplement Revenue Information for Segment | |||||||
(unaudited) | |||||||
Three months ended March 31, 2021 | |||||||
Wealth | Asset | Other Businesses | Total | ||||
RMB'000 | RMB'000 | RMB'000 | RMB'000 | ||||
Revenues: | |||||||
Mainland China | 697,471 | 187,621 | 8,306 | 893,398 | |||
Hong Kong | 230,621 | 76,431 | - | 307,052 | |||
Others | 23,198 | 7,205 | - | 30,403 | |||
Total revenues | 951,290 | 271,257 | 8,306 | 1,230,853 | |||
Three months ended March 31, 2020 | |||||||
Wealth | Asset | Other Businesses | Total | ||||
RMB'000 | RMB'000 | RMB'000 | RMB'000 | ||||
Revenues: | |||||||
Mainland China | 368,817 | 145,086 | 28,655 | 542,558 | |||
Hong Kong | 140,765 | 16,567 | - | 157,332 | |||
Others | 45,727 | 4,625 | - | 50,352 | |||
Total revenues | 555,309 | 166,278 | 28,655 | 750,242 | |||
Noah Holdings Limited | |||||||
Reconciliation of GAAP to Non-GAAP Results | |||||||
(In RMB, except for per ADS data and percentages) | |||||||
(unaudited) [7] | |||||||
Three months ended | |||||||
March 31, | March 31, | Change | |||||
2020 | 2021 | ||||||
RMB'000 | RMB'000 | ||||||
Net income attributable to Noah shareholders | 243,025 | 454,093 | |||||
Adjustment for share-based compensation | 18,291 | 10,144 | ( | ||||
Less: Tax effect of adjustments | 4,235 | 2,354 | ( | ||||
Adjusted net income attributable to Noah shareholders | 257,081 | 461,883 | |||||
Net margin attributable to Noah shareholders | |||||||
Non-GAAP net margin attributable to Noah shareholders | |||||||
Net income attributable to Noah shareholders per ADS, | 3.92 | 6.72 |
| ||||
Non-GAAP net income attributable to Noah shareholders | 4.15 | 6.84 | |||||
[7] Noah's Non-GAAP financial measures reflect the respective most directly comparable GAAP financial | |||||||
View original content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-first-quarter-of-2021-301287584.html
SOURCE Noah Holdings Limited
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