SHANGHAI, May 29, 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 first quarter of 2024.
FIRST QUARTER 2024 FINANCIAL HIGHLIGHTS
Net revenues for the first quarter of 2024 were RMB649.5 million (US$90.0 million), a 19.2% decrease from the corresponding period in 2023, mainly due to decreases in performance-based income generated from USD private equity products and recurring service fees generated from RMB private equity and private secondary products. The Company recorded a 6.0% increase in one-time commissions from the corresponding period in 2023 due to a 4.6% increase in revenues generated from the distribution of insurance products. Net revenues decreased by 18.8% from the fourth quarter of 2023, mainly due to decreases in one-time commissions.
Net revenues from mainland China for the first quarter of 2024 was RMB342.8 million (US$47.5 million), a 28.8% decrease from the corresponding period in 2023, mainly due to decreases in recurring service fees generated from private equity and private secondary products. Net revenues from overseas for the first quarter of 2024 was RMB306.7 million (US$42.5 million), a 4.5% decrease from the corresponding period of 2023, mainly due to decreases in performance-based income generated from private equity products.
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Net Revenues by segment is as follows: |
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(RMB millions, except percentages) |
Q1 2023 |
Q1 2024 |
YoY Change |
||||
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Wealth management |
586.9 |
462.7 |
(21.2 %) |
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Asset management |
205.2 |
180.3 |
(12.1 %) |
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Other businesses |
11.4 |
6.5 |
(42.8 %) |
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Total net revenues |
803.5 |
649.5 |
(19.2 %) |
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Net Revenues by geography is as follows: |
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|
(RMB millions, except percentages) |
Q1 2023 |
Q1 2024 |
YoY Change |
||||
|
Mainland China |
482.1 |
342.8 |
(28.8 %) |
||||
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Overseas |
321.4 |
306.7 |
(4.5 %) |
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Total net revenues |
803.5 |
649.5 |
(19.2 %) |
||||
Income from operations for the first quarter of 2024 was RMB121.5 million (US$16.8 million), a 56.4% decrease from the corresponding period in 2023, primarily due to i) a 19.2% decrease in net revenues, ii) a 10.4% increase in other compensations, mainly due to the new share-based compensation scheme granted in December 2023 and March 2024 amounting to RMB36.6 million (US$5.1 million); and iii) a 55.6% increases in general and administrative expenses, mainly due to the relatively lower base in the first quarter of 2023, which occurred immediately after the lifting of pandemic restrictions.
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Income from operations by segment is as follows: |
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|
(RMB millions, except percentages) |
Q1 2023 |
Q1 2024 |
YoY Change |
||||
|
Wealth management |
204.5 |
65.3 |
(68.1 %) |
||||
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Asset management |
103.8 |
84.9 |
(18.2 %) |
||||
|
Other businesses |
(29.4) |
(28.6) |
(2.5 %) |
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Total income from operations |
278.9 |
121.5 |
(56.4 %) |
||||
Net income attributable to Noah shareholders for the first quarter of 2024 was RMB131.5 million (US$18.2 million), a 46.2% decrease from the corresponding period in 2023, mainly due to a 56.4% decrease in income from operations, and partially offset by a 34.3% increase in interest income.
Non-GAAP[1] net income attributable to Noah shareholders for the first quarter of 2024 was RMB161.2 million (US$22.3 million), a 32.7% decrease from the corresponding period in 2023.
FIRST QUARTER 2024 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 March 31, 2024 was 457,705, a 3.9% increase from March 31, 2023, and a 0.4% increase from December 31, 2023. Among which, the number of overseas registered clients as of March 31, 2024 was 15,725, a 17.1% increase from March 31, 2023 and a 5.3% increase from December 31, 2023.
Total number of active clients[2] who transacted with us during the first quarter of 2024 was 10,391, a 7.5% decrease from the first quarter of 2023, and a 15.0% increase from the fourth quarter of 2023. Among which, the number of overseas active clients who transacted with us during the first quarter of 2024 was 2,745, a 39.6% increase from the first quarter of 2023, and a 9.1% increase from the fourth quarter of 2023.
Aggregate value of investment products distributed during the first quarter of 2024 was RMB18.9 billion (US$2.6 billion), a 12.4% increase from the first quarter of 2023, primarily due to a 26.4% increase in mutual fund products distribution. Among which, Noah distributed RMB8.4 billion (US$1.2 billion) of overseas investment products, a 58.5% increase from the first quarter of 2023, primarily due to a 60.6% increase in the value of mutual fund products.
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[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. |
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[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. |
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The aggregate value of investment products distributed, categorized by product type, is as follows: |
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Product type |
Three months ended March 31, |
||||||
|
2023 |
2024 |
||||||
|
(RMB in billions, except percentages) |
|||||||
|
Mutual fund products |
10.0 |
59.4 % |
12.6 |
66.8 % |
|||
|
Private secondary products |
4.3 |
25.5 % |
3.8 |
20.0 % |
|||
|
Private equity products |
1.3 |
7.8 % |
1.2 |
6.3 % |
|||
|
Other products[3] |
1.2 |
7.3 % |
1.3 |
6.9 % |
|||
|
All products |
16.8 |
100.0 % |
18.9 |
100.0 % |
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The aggregate value of investment products distributed, categorized by geography, is as follows: |
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|
Type of products in Mainland China |
Three months ended March 31, |
||||||
|
2023 |
2024 |
||||||
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(RMB in billions, except percentages) |
|||||||
|
Mutual fund products |
7.6 |
66.3 % |
8.8 |
84.3 % |
|||
|
Private secondary products |
2.7 |
23.5 % |
1.0 |
8.8 % |
|||
|
Private equity products |
0.4 |
3.2 % |
– |
0.0 % |
|||
|
Other products |
0.8 |
7.0 % |
0.7 |
6.9 % |
|||
|
All products in Mainland China |
11.5 |
100.0 % |
10.5 |
100.00 % |
|||
|
Type of overseas products |
Three months ended March 31, |
||||||
|
2023 |
2024 |
||||||
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(RMB in billions, except percentages) |
|||||||
|
Mutual fund products |
2.4 |
44.3 % |
3.8 |
44.9 % |
|||
|
Private secondary products |
1.6 |
30.0 % |
2.8 |
33.9 % |
|||
|
Private equity products |
0.9 |
17.7 % |
1.2 |
14.2 % |
|||
|
Other products |
0.4 |
8.0 % |
0.6 |
7.0 % |
|||
|
All Overseas products |
5.3 |
100.0 % |
8.4 |
100.00 % |
|||
Coverage network in mainland China included 18 cities as of March 31, 2024, compared with 68 cities as of March 31, 2023 and 44 cities as of December 31, 2023, as a result of the Company’s efforts to streamline its operations in China with a focus on strengthening its operations in central hub cities.
Number of relationship managers was 1,109 as of March 31, 2024, a 16.4% decrease from March 31, 2023, and an 11.4% decrease from December 31, 2023. Among which, we had 91 overseas relationship managers as of March 31, 2024, a 2.2% increase from December 31, 2023.
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[3] “Other products” refers to other investment products, which includes insurance products, multi-strategies products and others. |
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 March 31, 2024 remained relatively stable at RMB153.3 billion (US$21.2 billion), compared with RMB157.6 billion as of March 31, 2023 and RMB154.6 billion as of December 31, 2023. Mainland China assets under management as of March 31, 2024 were RMB116.1 billion (US$16.1billion), compared with RMB124.2 billion as of March 31, 2023 and RMB118.6 billion as of December 31, 2023. Overseas assets under management as of March 31, 2024 were RMB37.2 billion (US$5.1 billion), compared with RM33.4 billion as of March 31, 2023 and RMB36.0 billion as of December 31, 2023.
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Total assets under management, categorized by investment type, are as follows: |
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|
Investment type |
As of |
Growth |
Allocation/ |
As of |
|||||||
|
(RMB billions, except percentages) |
|||||||||||
|
Private equity |
132.2 |
85.5 % |
1.0 |
1.4 |
131.8 |
85.9 % |
|||||
|
Public securities |
11.5 |
7.4 % |
2.7 |
3.3 |
10.9 |
7.1 % |
|||||
|
Real estate |
6.2 |
4.0 % |
0.2 |
0.7 |
5.7 |
3.7 % |
|||||
|
Multi-strategies |
4.2 |
2.8 % |
– |
(0.1) |
4.3 |
2.9 % |
|||||
|
Others |
0.5 |
0.3 % |
0.1 |
– |
0.6 |
0.4 % |
|||||
|
All Investments |
154.6 |
100.0 % |
4.0 |
5.3 |
153.3 |
100.0 % |
|||||
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Total assets under management, categorized by geography, are as follows: |
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|
Mainland China Investment type |
As of |
Growth |
Allocation/ Redemption |
As of |
|||||||
|
(RMB billions, except percentages) |
|||||||||||
|
Private equity |
105.2 |
88.7 % |
– |
1.7 |
103.5 |
89.2 % |
|||||
|
Public securities |
7.1 |
6.0 % |
0.1 |
0.3 |
6.9 |
6.0 % |
|||||
|
Real estate |
3.2 |
2.7 % |
– |
0.7 |
2.5 |
2.2 % |
|||||
|
Multi-strategies |
2.6 |
2.2 % |
– |
– |
2.6 |
2.2 % |
|||||
|
Others |
0.5 |
0.4 % |
0.1 |
– |
0.6 |
0.4 % |
|||||
|
All Investments |
118.6 |
100.0 % |
0.2 |
2.7 |
116.1 |
100.0 % |
|||||
|
Overseas Investment type |
As of |
Growth |
Allocation/ Redemption |
As of |
|||||||
|
(RMB billions, except percentages) |
|||||||||||
|
Private equity |
27.0 |
74.9 % |
1.0 |
(0.3) |
28.3 |
75.7 % |
|||||
|
Public securities |
4.4 |
12.3 % |
2.6 |
3.0 |
4.0 |
10.8 % |
|||||
|
Real estate |
3.0 |
8.2 % |
0.2 |
– |
3.2 |
8.6 % |
|||||
|
Multi-strategies |
1.6 |
4.6 % |
– |
(0.1) |
1.7 |
4.9 % |
|||||
|
All Investments |
36.0 |
100.0 % |
3.8 |
2.6 |
37.2 |
100.0 % |
|||||
Other Businesses
Noah’s other businesses mainly include providing 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, commented, “We made significant progress during this quarter in repositioning ourselves to drive growth in this challenging market environment. While sluggish domestic markets had a stronger-than-expected impact on our business during this quarter, we strategically used this window of opportunity to increase the pace of our overseas expansion as client demand for global asset allocation continues to grow. Excluding performance-based income, which was elevated due to the high base effect from the same period last year, net revenues from our overseas business increased 22.4% year-over-year. Transaction value from USD denominated products also increased significantly, as did the number of overseas registered and active clients, which increased 17.1% and 39.6% year-over-year, respectively. With these tailwinds, we are rapidly expanding our global offerings and expect to roll out new products originated from Japan and Dubai later this year. While we are still in the relatively early stages of our overseas expansion, these results have reinforced our confidence in our strategy going forward.”
FIRST QUARTER 2024 FINANCIAL RESULTS
Net Revenues
Net revenues for the first quarter of 2024 were RMB649.5 million (US$90.0 million), a 19.2% decrease from the corresponding period in 2023, primarily 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.
Wealth Management Business
Net revenues from one-time commissions for the first quarter of 2024 were RMB186.4 million (US$25.8 million), a 7.4% increase from the corresponding period in 2023, primarily due to a 4.6% increase in revenues generated by the distribution of insurance products in first quarter of 2024.
Net revenues from recurring service fees for the first quarter of 2024 were RMB244.1 million (US$33.8 million), an 18.5% decrease from the corresponding period in 2023, mainly due to decreases in recurring service fees from private secondary products as a result of decrease in assets under management in Mainland China.
Net revenues from performance-based income for the first quarter of 2024 were RMB6.5 million (US$0.9 million), compared with RMB55.7 million in the corresponding period of 2023, primarily due to a decrease in performance-based income from certain offshore private equity products.
Net revenues from other service fees for the first quarter of 2024 were RMB25.6 million (US$3.5 million), compared with RMB58.3 million in the corresponding period in 2023, primarily due to a reduction in the value-added services Noah offers to its high-net-worth clients.
Asset Management Business
Net revenues from recurring service fees for the first quarter of 2024 were RMB172.5 million (US$23.9 million), a 1.4% decrease from the corresponding period in 2023, primarily due to decreases in recurring service fees generated from RMB private equity products.
Net revenues from performance-based income for the first quarter of 2024 were RMB7.8 million (US$1.1 million), compared with RMB27.7 million in the corresponding period of 2023. The decrease was primarily due to less performance-based income realized from private equity products.
Other Businesses
Net revenues for the first quarter of 2024 were RMB6.5 million (US$0.9 million), compared with RMB11.4 million from the corresponding period in 2023.
Operating Costs and Expenses
Operating costs and expenses for the first quarter of 2024 were RMB528.0 million (US$73.1 million), a 0.7% increase from the corresponding period in 2023. Operating costs and expenses for the first quarter of 2024 primarily consisted of i) compensation and benefits of RMB388.8 million (US$53.8 million), ii) selling expenses of RMB62.3 million (US$8.6 million), iii) general and administrative expenses of RMB71.1 million (US$9.8 million), iv) other operating expenses of RMB17.1 million (US$2.4 million).
Operating costs and expenses for the wealth management business for the first quarter of 2024 were RMB397.4 million (US$55.0 million), a 3.9% increase from the corresponding period in 2023, primarily due to an increase in share-based compensation.
Operating costs and expenses for the asset management business for the first quarter of 2024 were RMB95.5 million (US$13.2 million), a 5.8% decrease from the corresponding period in 2023, primarily due to a reduction in the compensation and benefits as a result of a decrease in the number of employees.
Operating costs and expenses for other businesses for the first quarter of 2024 were RMB35.1 million (US$4.9 million), a 13.8% decrease from the corresponding period in 2023.
Operating Margin
Operating margin for the first quarter of 2024 was 18.7%, compared with 34.7% for the corresponding period in 2023.
Operating margin for the wealth management business for the first quarter of 2024 was 14.1%, compared with 34.8% for the corresponding period in 2023.
Operating margin for the asset management business for the first quarter of 2024 was 47.0%, compared with 50.6% for the corresponding period in 2023.
Loss from operation for the other businesses for the first quarter of 2024 was RMB28.6 million (US$4.0 million), compared with an operating loss of RMB29.4 million for the corresponding period in 2023.
Investment Income
Investment income for the first quarter of 2024 was RMB5.2 million (US$0.7 million), compared with investment loss RMB13.6 million for the corresponding period in 2023.
Income Tax Expenses
Income tax expenses for the first quarter of 2024 were RMB42.7 million (US$5.9 million), a 38.7% decrease from the corresponding period in 2023. The decrease was primarily due to a reduction in the taxable income.
Net Income
Net Income
Net income for the first quarter of 2024 was RMB131.9 million (US$18.3 million), a 45.8% decrease from the corresponding period in 2023.
Net margin for the first quarter of 2024 was 20.3%, down from 30.3% for the corresponding period in 2023.
Net income attributable to Noah shareholders for the first quarter of 2024 was RMB131.5 million (US$18.2 million), a 46.2% decrease from the corresponding period in 2023.
Net margin attributable to Noah shareholders for the first quarter of 2024 was 20.2%, down from 30.4% for the corresponding period in 2023.
Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2024 was RMB1.88 (US$0.26), compared with RMB3.52 and RMB3.51 for the corresponding period in 2023, respectively.
Non-GAAP Net Income Attributable to Noah Shareholders
Non-GAAP net income attributable to Noah shareholders for the first quarter of 2024 was RMB161.2 million (US$22.3 million), a 32.7% decrease from the corresponding period in 2023.
Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2024 was 24.8%, down from 29.8% for the corresponding period in 2023.
Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2024 was RMB2.31 (US$0.32), down from RMB3.45 for the corresponding period in 2023.
Balance Sheet and Cash Flow
As of March 31, 2024, the Company had RMB5,129.4 million (US$710.4 million) in cash and cash equivalents, compared with RMB5,192.1 million as of December 31, 2023 and RMB4,713.2 million as of March 31, 2023, respectively.
Net cash outflow from the Company’s operating activities during the first quarter of 2024 was RMB181.8 million (US$25.2 million), primarily due to an increase in trading debt products in the first quarter of 2024.
Net cash outflow from the Company’s investing activities during the first quarter of 2024 was RMB59.1 million (US$8.2 million), primarily due to various purchases of term deposits.
Net cash outflow from the Company’s financing activities was RMB12.3 million (US$1.7 million) in the first quarter of 2024, compared to net cash inflow of RMB3.4 million in the corresponding period in 2023.
CONFERENCE CALL
Senior management will host a combined English and Chinese language conference call to discuss the Company’s first quarter of 2024 unaudited financial results and recent business activities.
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The conference call will be accessed via Zoom webinar with the following details: |
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Dial-in details: |
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Conference title: |
Noah First Quarter 2024 Earnings Conference Call |
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Date/Time: |
Wednesday, May 29, 2024, at 8:00 p.m., U.S. Eastern Time Thursday, May 30, 2024, at 8:00 a.m., Hong Kong Time |
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Dial in: |
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– Hong Kong Toll Free: |
800-963976 |
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– United States Toll Free: |
1-888-317-6003 |
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– Mainland China Toll Free: |
4001-206115 |
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– International Toll: |
1-412-317-6061 |
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Participant Password: |
4318231 |
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A telephone replay will be available starting approximately one hour after the end of the conference |
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A live and archived webcast of the conference call will be available at the Company’s investor |
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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. Noah’s American depositary shares, or ADSs, are listed on the New York Stock Exchange under the symbol “NOAH”, and its shares are listed on the main board of the Hong Kong Stock Exchange under the stock code “6686.” One ADS represents five ordinary shares, par value $0.00005 per share. To the Company’s knowledge, as of March 31, 2024, 177,020,325 of its ordinary shares were held by one record holder in the United States, which is Citibank, N. A., the depositary of its ADS program. The number of beneficial owners of its ADSs in the United States is much larger than the number of record holders of its ordinary shares in the United States.
In the first quarter of 2024, Noah distributed RMB18.9 billion (US$2.6 billion) of investment products. As of March 31, 2024, through Gopher Asset Management, Noah managed assets totaling RMB153.3 billion (US$21.2 billion).
Noah’s wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,109 relationship managers across 18 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong (China), Taiwan (China), New York, Silicon Valley and Singapore as of March 31, 2024. Noah’s wealth management business had 457,705 registered clients as of March 31, 2024. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in Renminbi and other currencies. Noah also provides other businesses.
For more information, please visit Noah at ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the first quarter of 2024 ended March 31, 2024 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ 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 RMB7.2203 to US$1.00, the effective noon buying rate for March 29, 2024 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 reports 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 globally and 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 —
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Noah Holdings Limited |
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Condensed Consolidated Balance Sheets |
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(unaudited) |
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As of |
||||||||||||||
|
December 31, |
March 31, |
March 31, |
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2023 |
2024 |
2024 |
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RMB’000 |
RMB’000 |
USD’000 |
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Assets |
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Current assets: |
||||||||||||||
|
Cash and cash equivalents |
5,192,127 |
5,129,437 |
710,419 |
|||||||||||
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Restricted cash |
154,433 |
2,276 |
315 |
|||||||||||
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Short-term investments |
379,456 |
747,084 |
103,470 |
|||||||||||
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Accounts receivable, net |
503,978 |
435,114 |
60,263 |
|||||||||||
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Loans receivable, net |
286,921 |
222,516 |
30,818 |
|||||||||||
|
Amounts due from related parties |
393,891 |
508,236 |
70,390 |
|||||||||||
|
Other current assets |
206,250 |
178,644 |
24,740 |
|||||||||||
|
Total current assets |
7,117,056 |
7,223,307 |
1,000,415 |
|||||||||||
|
Long-term investments, net |
810,484 |
803,598 |
111,297 |
|||||||||||
|
Investment in affiliates |
1,526,544 |
1,522,996 |
210,933 |
|||||||||||
|
Property and equipment, net |
2,482,199 |
2,450,271 |
339,359 |
|||||||||||
|
Operating lease right-of-use assets, net |
139,019 |
125,475 |
17,378 |
|||||||||||
|
Deferred tax assets |
431,494 |
427,680 |
59,233 |
|||||||||||
|
Other non-current assets |
178,582 |
189,794 |
26,286 |
|||||||||||
|
Total Assets |
12,685,378 |
12,743,121 |
1,764,901 |
|||||||||||
|
Liabilities and Equity |
||||||||||||||
|
Current liabilities: |
||||||||||||||
|
Accrued payroll and welfare expenses |
564,096 |
585,886 |
81,144 |
|||||||||||
|
Income tax payable |
89,694 |
98,998 |
13,711 |
|||||||||||
|
Deferred revenues |
72,824 |
88,182 |
12,213 |
|||||||||||
|
Contingent liabilities |
482,802 |
490,989 |
68,001 |
|||||||||||
|
Other current liabilities |
681,802 |
490,529 |
67,937 |
|||||||||||
|
Total current liabilities |
1,891,218 |
1,754,584 |
243,006 |
|||||||||||
|
Operating lease liabilities, non-current |
76,533 |
70,335 |
9,741 |
|||||||||||
|
Deferred tax liabilities |
262,404 |
260,976 |
36,145 |
|||||||||||
|
Other non-current liabilities |
27,660 |
25,564 |
3,541 |
|||||||||||
|
Total Liabilities |
2,257,815 |
2,111,459 |
292,433 |
|||||||||||
|
Equity |
10,427,563 |
10,631,662 |
1,472,468 |
|||||||||||
|
Total Liabilities and Equity |
12,685,378 |
12,743,121 |
1,764,901 |
|||||||||||
|
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 |
||||||
|
2023 |
2024 |
2024 |
|||||||
|
Revenues: |
RMB’000 |
RMB’000 |
USD’000 |
||||||
|
Revenues from others: |
|||||||||
|
One-time commissions |
170,571 |
185,255 |
25,658 |
8.6 % |
|||||
|
Recurring service fees |
192,708 |
155,165 |
21,490 |
(19.5 %) |
|||||
|
Performance-based income |
3,430 |
5,528 |
766 |
61.2 % |
|||||
|
Other service fees |
72,866 |
34,960 |
4,842 |
(52.0 %) |
|||||
|
Total revenues from others |
439,575 |
380,908 |
52,756 |
(13.3 %) |
|||||
|
Revenues from funds Gopher |
|||||||||
|
One-time commissions |
5,896 |
1,827 |
253 |
(69.0 %) |
|||||
|
Recurring service fees |
283,472 |
262,689 |
36,382 |
(7.3 %) |
|||||
|
Performance-based income |
80,325 |
8,844 |
1,225 |
(89.0 %) |
|||||
|
Total revenues from funds Gopher |
369,693 |
273,360 |
37,860 |
(26.1 %) |
|||||
|
Total revenues |
809,268 |
654,268 |
90,616 |
(19.2 %) |
|||||
|
Less: VAT related surcharges |
(5,795) |
(4,733) |
(656) |
(18.3 %) |
|||||
|
Net revenues |
803,473 |
649,535 |
89,960 |
(19.2 %) |
|||||
|
Operating costs and expenses: |
|||||||||
|
Compensation and benefits |
|||||||||
|
Relationship manager |
(148,735) |
(144,295) |
(19,985) |
(3.0 %) |
|||||
|
Others |
(221,371) |
(244,490) |
(33,862) |
10.4 % |
|||||
|
Total compensation and benefits |
(370,106) |
(388,785) |
(53,847) |
5.0 % |
|||||
|
Selling expenses |
(96,669) |
(62,332) |
(8,633) |
(35.5 %) |
|||||
|
General and administrative |
(45,700) |
(71,116) |
(9,849) |
55.6 % |
|||||
|
Reversal of credit losses |
5,698 |
97 |
13 |
(98.3 %) |
|||||
|
Other operating expenses |
(30,797) |
(17,146) |
(2,375) |
(44.3 %) |
|||||
|
Government subsidies |
12,984 |
11,233 |
1,556 |
(13.5 %) |
|||||
|
Total operating costs and expenses |
(524,590) |
(528,049) |
(73,135) |
0.7 % |
|||||
|
Income from operations |
278,883 |
121,486 |
16,825 |
(56.4 %) |
|||||
|
Other income: |
|||||||||
|
Interest income |
34,388 |
46,185 |
6,397 |
34.3 % |
|||||
|
Investment (loss) income |
(13,583) |
5,185 |
718 |
N.A. |
|||||
|
Other income |
9,558 |
3,935 |
545 |
(58.8 %) |
|||||
|
Total other income |
30,363 |
55,305 |
7,660 |
82.1 % |
|||||
|
Income before taxes and income |
309,246 |
176,791 |
24,485 |
(42.8 %) |
|||||
|
Income tax expense |
(69,580) |
(42,686) |
(5,912) |
(38.7 %) |
|||||
|
Income (loss) from equity in affiliates |
3,669 |
(2,242) |
(311) |
N.A. |
|||||
|
Net income |
243,335 |
131,863 |
18,262 |
(45.8 %) |
|||||
|
Less: net (loss) income attributable |
(875) |
372 |
52 |
N.A. |
|||||
|
Net income attributable to Noah |
244,210 |
131,491 |
18,210 |
(46.2 %) |
|||||
|
Income per ADS, basic |
3.52 |
1.88 |
0.26 |
(46.6 %) |
|||||
|
Income per ADS, diluted |
3.51 |
1.88 |
0.26 |
(46.4 %) |
|||||
|
Margin analysis: |
|||||||||
|
Operating margin |
34.7 % |
18.7 % |
18.7 % |
||||||
|
Net margin |
30.3 % |
20.3 % |
20.3 % |
||||||
|
Weighted average ADS equivalent
|
|||||||||
|
Basic |
69,466,932 |
69,781,578 |
69,781,578 |
||||||
|
Diluted |
69,517,068 |
69,788,638 |
69,788,638 |
||||||
|
ADS equivalent outstanding at end |
62,606,724 |
65,685,535 |
65,685,535 |
||||||
|
[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 |
||||||||||
|
March 31, 2023 |
March 31, |
March 31, |
Change |
|||||||
|
RMB’000 |
RMB’000 |
USD’000 |
||||||||
|
Net income |
243,335 |
131,863 |
18,262 |
(45.8 %) |
||||||
|
Other comprehensive income, net of tax: |
||||||||||
|
Foreign currency translation adjustments |
(16,834) |
53,400 |
7,396 |
N.A. |
||||||
|
Comprehensive income |
226,501 |
185,263 |
25,658 |
(18.2 %) |
||||||
|
Less: Comprehensive loss attributable to |
(926) |
(492) |
(68) |
(46.9 %) |
||||||
|
Comprehensive income attributable to |
227,427 |
185,755 |
25,726 |
(18.3 %) |
||||||
|
Noah Holdings Limited |
|||||
|
Supplemental Information |
|||||
|
(unaudited) |
|||||
|
As of |
|||||
|
March 31, |
March 31, |
Change |
|||
|
Number of registered clients |
440,664 |
457,705 |
3.9 % |
||
|
Number of relationship managers |
1,327 |
1,109 |
(16.4 %) |
||
|
Three months ended |
|||||
|
March 31, |
March 31, |
Change |
|||
|
(in millions of RMB, except number of active clients and |
|||||
|
Number of active clients |
11,236 |
10,391 |
(7.5 %) |
||
|
Transaction value: |
|||||
|
Private equity products |
1,302 |
1,195 |
(8.2 %) |
||
|
Private secondary products |
4,288 |
3,772 |
(12.0 %) |
||
|
Mutual fund products |
9,975 |
12,610 |
26.4 % |
||
|
Other products |
1,233 |
1,309 |
6.1 % |
||
|
Total transaction value |
16,798 |
18,886 |
12.4 % |
||
|
Noah Holdings Limited |
|||||||
|
Segment Condensed Income Statements |
|||||||
|
(unaudited) |
|||||||
|
Three months ended March 31, 2024 |
|||||||
|
Wealth |
Asset |
Other |
Total |
||||
|
RMB’000 |
RMB’000 |
RMB’000 |
RMB’000 |
||||
|
Revenues: |
|||||||
|
Revenues from others: |
|||||||
|
One-time commissions |
185,255 |
– |
– |
185,255 |
|||
|
Recurring service fees |
155,165 |
– |
– |
155,165 |
|||
|
Performance-based income |
5,528 |
– |
– |
5,528 |
|||
|
Other service fees |
25,711 |
– |
9,249 |
34,960 |
|||
|
Total revenues from others |
371,659 |
– |
9,249 |
380,908 |
|||
|
Revenues from funds Gopher |
|||||||
|
One-time commissions |
1,793 |
34 |
– |
1,827 |
|||
|
Recurring service fees |
89,719 |
172,970 |
– |
262,689 |
|||
|
Performance-based income |
1,039 |
7,805 |
– |
8,844 |
|||
|
Total revenues from funds Gopher |
92,551 |
180,809 |
– |
273,360 |
|||
|
Total revenues |
464,210 |
180,809 |
9,249 |
654,268 |
|||
|
Less: VAT related surcharges |
(1,530) |
(440) |
(2,763) |
(4,733) |
|||
|
Net revenues |
462,680 |
180,369 |
6,486 |
649,535 |
|||
|
Operating costs and expenses: |
|||||||
|
Compensation and benefits |
|||||||
|
Relationship manager |
(136,644) |
(7,651) |
– |
(144,295) |
|||
|
Other compensations |
(164,652) |
(61,548) |
(18,290) |
(244,490) |
|||
|
Total compensation and benefits |
(301,296) |
(69,199) |
(18,290) |
(388,785) |
|||
|
Selling expenses |
(47,547) |
(11,825) |
(2,960) |
(62,332) |
|||
|
General and administrative |
(43,641) |
(16,605) |
(10,870) |
(71,116) |
|||
|
(Reversal of) provision for credit |
(4,735) |
(996) |
5,828 |
97 |
|||
|
Other operating expenses |
(7,306) |
(974) |
(8,866) |
(17,146) |
|||
|
Government subsidies |
7,108 |
4,093 |
32 |
11,233 |
|||
|
Total operating costs and expenses |
(397,417) |
(95,506) |
(35,126) |
(528,049) |
|||
|
Income (loss) from operations |
65,263 |
84,863 |
(28,640) |
121,486 |
|||
|
Noah Holdings Limited |
|||||||
|
Segment Condensed Income Statements |
|||||||
|
(unaudited) |
|||||||
|
Three months ended March 31, 2023 |
|||||||
|
Wealth |
Asset |
Other |
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 |
|||||||
|
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 |
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 |
(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 |
(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 |
|||||||
|
Supplement Revenue Information by Geography |
|||||||
|
(unaudited) |
|||||||
|
Three months ended March 31, 2024 |
|||||||
|
Wealth |
Asset |
Other |
Total |
||||
|
RMB’000 |
RMB’000 |
RMB’000 |
RMB’000 |
||||
|
Revenues: |
|||||||
|
Mainland China |
235,422 |
102,834 |
9,249 |
347,505 |
|||
|
Overseas |
228,788 |
77,975 |
306,763 |
||||
|
Total revenues |
464,210 |
180,809 |
9,249 |
654,268 |
|||
|
Noah Holdings Limited |
|||||||
|
Supplement Revenue Information by Geography |
|||||||
|
(unaudited) |
|||||||
|
Three months ended March 31, 2023 |
|||||||
|
Wealth |
Asset |
Other |
Total |
||||
|
RMB’000 |
RMB’000 |
RMB’000 |
RMB’000 |
||||
|
Revenues: |
|||||||
|
Mainland China |
350,632 |
122,891 |
14,386 |
487,909 |
|||
|
Overseas |
238,021 |
83,338 |
321,359 |
||||
|
Total revenues |
588,653 |
206,229 |
14,386 |
809,268 |
|||
|
Noah Holdings Limited |
||||||
|
Reconciliation of GAAP to Non-GAAP Results |
||||||
|
(In RMB, except for per ADS data and percentages) |
||||||
|
(unaudited) [4] |
||||||
|
Three months ended |
||||||
|
March 31, |
March 31, |
Change |
||||
|
2023 |
2024 |
|||||
|
RMB’000 |
RMB’000 |
|||||
|
Net income attributable to Noah shareholders |
244,210 |
131,491 |
(46.2 %) |
|||
|
Adjustment for share-based compensation |
(6,189) |
36,599 |
N.A. |
|||
|
Less: Tax effect of adjustments |
(1,499) |
6,922 |
N.A. |
|||
|
Adjusted net income attributable to Noah shareholders |
239,520 |
161,168 |
(32.7 %) |
|||
|
Net margin attributable to Noah shareholders |
30.4 % |
20.2 % |
||||
|
Non-GAAP net margin attributable to Noah |
29.8 % |
24.8 % |
||||
|
Net income attributable to Noah shareholders per ADS, |
3.51 |
1.88 |
(46.4 %) |
|||
|
Non-GAAP net income attributable to Noah |
3.45 |
2.31 |
(33.0 %) |
|||
|
[4] Noah’s Non-GAAP financial measures reflect the respective most directly comparable GAAP financial |
||||||
SOURCE Noah Holdings Limited