NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2023

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SHANGHAI, Aug. 29, 2023 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors, today announced its unaudited financial results for the second quarter of 2023.

SECOND QUARTER 2023 FINANCIAL HIGHLIGHTS

  • Net revenues for the second quarter of 2023 were RMB941.8 million (US$129.9 million), a 27.6% increase from the corresponding period in 2022, and a 17.2% increase from the first quarter of 2023, mainly due to an increase in distribution of insurance products.

 

(RMB millions,

except percentages)

Q2 2022



Q2 2023



YoY Change

Wealth management

508.6



745.3



46.5 %

Asset management

210.3



183.4



(12.8 %)

Other businesses

19.2



13.1



(31.6 %)

Total net revenues

738.1



941.8



27.6 %

 

  • Income from operations for the second quarter of 2023 was RMB349.4 million (US$48.2 million), an 8.1% increase from the corresponding period in 2022, mainly due to a 27.6% increase in net revenue and partially offset by a 42.7% increase in total operating cost and expenses as less expenses incurred in last second quarter due to various pandemic restrictions. Income from operations increased by 25.3% compared with the first quarter of 2023, mainly due to a 17.2% increase in net revenues and various cost control measures implemented in the second quarter of 2023.

 

(RMB millions,

except percentages)

Q2 2022



Q2 2023



YoY Change

Wealth management

193.8



300.2



54.9 %

Asset management

142.6



80.9



(43.3 %)

Other businesses

(13.3)



(31.7)



138.3 %

Total income from operations

323.1



349.4



8.1 %

 

  • Net income attributable to Noah shareholders for the second quarter of 2023 was RMB315.4 million (US$43.5 million), a 9.6% decrease from the corresponding period in 2022, mainly due to a 97.7% decrease in income from equity in affiliates as we recorded a gain of RMB69.2 million from the second quarter of 2022, resulting from net book value increases in certain offshore private equity funds managed by Gopher. Net income attributable to Noah shareholders increased by 29.2% compared with the first quarter of 2023, mainly due to a 25.3% increase in income from operations and a 69.7% increase in other income.

  • Non-GAAP[1] net income attributable to Noah shareholders for the second quarter of 2023 was RMB313.1 million (US$43.2 million), an 11.8% decrease from the corresponding period in 2022, and a 30.7% increase from the first quarter of 2023.

 

[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation and net of relevant tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

SECOND QUARTER 2023 OPERATIONAL UPDATES

Wealth Management Business

We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. We primarily distribute private equity, private secondary, mutual funds and other products denominated in RMB and other currencies.

  • Total number of registered clients as of June 30, 2023 was 446,557, a 6.7% increase from June 30, 2022, and a 1.3% increase from March 31, 2023.

  • Total number of active clients[2] who transacted with us during the second quarter of 2023 was 11,548, a 10.2% decrease from the second quarter of 2022, and a 2.8% increase from the first quarter of 2023.

  • Aggregate value of investment products distributed during the second quarter of 2023 was RMB18.4 billion (US$2.5 billion), a 4.7% decrease from the second quarter of 2022, mainly due to an 84.2% decrease in distribution of private equity products, as we maintain a cautious approach to fundraising and investment allocation for our domestic private equity investments, and partially offset by a 79.3% increase in distribution of private secondary products. The aggregate value of investment products distributed increased by 9.6% from the first quarter of 2023, mainly due to increases in the distribution of mutual fund products.

 


Three months ended June 30,


2022


2023

Product type

(RMB in billions, except percentages)

Mutual fund products

12.2


63.1 %


12.0


65.4 %

Private secondary products

2.4


12.4 %


4.3


23.3 %

Private equity products

3.9


20.3 %


0.6


3.3 %

Other products[3]

0.8


4.2 %


1.5


8.0 %

All products

19.3


100.0 %


18.4


100.0 %

 

  • Coverage network in mainland China covered 63 cities as of June 30, 2023, compared with 79 cities as of June 30, 2022 and 68 cities as of March 31, 2023, as we continue to streamline our domestic coverages.

  • Number of relationship managers was 1,375 as of June 30, 2023, a 9.6% increase from June 30, 2022, and a 3.6% increase from March 31, 2023. Among which, we had 56 overseas relationship managers as of June 30, 2023, a 100.0% increase from March 31, 2023.

 

[2]  "Active clients" for a given period refers to registered investors who purchase investment products distributed or receive services provided by us during that given period.

[3]  "Other products" refers to other investment products, which includes insurance products, multi-strategies products and others.

Asset Management Business

Our asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading multi-asset manager in China with overseas offices in Hong Kong and the United States. Gopher Asset Management develops and manages assets ranging from private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies.

Total assets under management as of June 30, 2023 were RMB156.9 billion (US$21.6 billion), a 0.5% decrease from March 31, 2023 and a 0.9% increase from June 30, 2022.

Investment type

As of 
March 31, 
2023



Growth



Distribution/ 
Redemption


As of
June 30, 
2023


(RMB billions, except percentages)

Private equity

133.3


84.6 %


0.6


1.0


132.9


84.7 %

Public securities[4]

11.3


7.2 %


1.8


1.5


11.6


7.4 %

Real estate

6.9


4.3 %


-


0.3


6.6


4.2 %

Multi-strategies

4.7


3.0 %


-


0.3


4.4


2.8 %

Others

1.4


0.9 %


-


-


1.4


0.9 %

All Investments

157.6


100.0 %


2.4


3.1


156.9


100.0 %

Other Businesses

Our other businesses mainly aim to provide more comprehensive services and investment products to our clients.

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "For the first half of 2023, I am happy to see a 13.8% period-to-period increase in net revenues, driven by a 104.1% growth in revenues generated from our overseas business, accounting for 41.0% of the group's net revenues compared to 22.8% in the first half of 2022, as we continue to successfully execute our globalization strategy. During the second quarter, we were glad to launch the grand opening of our new headquarter, Noah Wealth Centre, which provides a client-centric private banking experience for Noah's global clients. Since 2019, we winded down all of our domestic non-standardized single counterparty private credit products, including domestic residential real estate funds, which was proven to have effectively safeguarded our clients' wealth amidst the recent challenges faced by this asset class. Our continued devotion in strengthening investment research capabilities and shield our clients' hard-earned capital through optimized asset allocation advice is what distinguish us as a trusted advisor for our clients."

SECOND QUARTER 2023 FINANCIAL RESULTS

Net Revenues

Net revenues for the second quarter of 2023 were RMB941.8 million (US$129.9 million), a 27.6% increase from the corresponding period in 2022, primarily due to an increase in distribution of insurance products.

  • Wealth Management Business

  • Asset Management Business

  • Other Businesses

 

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

Operating Costs and Expenses

Operating costs and expenses for the second quarter of 2023 were RMB592.3 million (US$81.7 million), a 42.7% increase from the corresponding period in 2022. Operating costs and expenses primarily consisted of compensation and benefits of RMB385.1 million (US$53.1 million), selling expenses of RMB112.0 million (US$15.4 million), general and administrative expenses of RMB64.0 million (US$8.8 million), provision of credit losses of RMB0.2 million and other operating expenses of RMB37.1 million (US$5.1 million).

  • Operating costs and expenses for the wealth management business for the second quarter of 2023 were RMB445.1 million (US$61.4 million), a 41.4% increase from the corresponding period in 2022, primarily due to an increase in compensation and benefits, selling expenses and general and administrative expenses, as less expenses incurred in last second quarter due to various pandemic restrictions.

  • Operating costs and expenses for the asset management business for the second quarter of 2023 were RMB102.5 million (US$14.1 million), a 51.2% increase from the corresponding period in 2022, primarily due to decreased selling and general and administrative expenses due to various pandemic restrictions for the corresponding period in 2022.

  • Operating costs and expenses for other businesses for the second quarter of 2023 were RMB44.8 million (US$6.2 million), compared with RMB32.4 million from the corresponding period in 2022, mainly due to increased depreciation expenses as we moved into our new headquarter premises in Shanghai in May.

Operating Margin

Operating margin for the second quarter of 2023 was 37.1%, decreased from 43.8% for the corresponding period in 2022.

  • Operating margin for the wealth management business for the second quarter of 2023 was 40.3%, compared with 38.1%% for the corresponding period in 2022.

  • Operating margin for the asset management business for the second quarter of 2023 was 44.1%, compared with 67.8% for the corresponding period in 2022.

  • Loss from operation for other businesses for the second quarter of 2023 was RMB31.7 million (US$4.4 million), compared with an operating loss of RMB13.3 million for the corresponding period in 2022.

Investment Income/loss

Investment loss for the second quarter of 2023 was RMB4.0 million (US$0.5 million), compared with investment income RMB5.2 million for the corresponding period in 2022.

Income Tax Expenses

Income tax expenses for the second quarter of 2023 were RMB90.2 million (US$12.4 million), a 15.4% increase from the corresponding period in 2022, primarily due to more taxable income compared with the second quarter of 2022.

Income from Equity in Affiliates

Income from equity in affiliates for the second quarter of 2023 was RMB1.6 million (US$0.2 million), a 97.7% decrease from the corresponding period in 2022, as we recorded a gain of RMB69.2 million from the second quarter of 2022, resulting from net book value increases in certain offshore private equity funds managed by Gopher.

Net Income

  • Net Income

  • Non-GAAP Net Income Attributable to Noah Shareholders 

Balance Sheet and Cash Flow

As of June 30, 2023, the Company had RMB4,740.4 million (US$653.7 million) in cash and cash equivalents, compared with RMB 4,713.2 million as of March 31, 2023 and RMB3,608.0 million as of June 30, 2022.

Net cash inflow from the Company's operating activities during the second quarter of 2023 was RMB176.4 million (US$24.3 million), primarily due to net income earned for the second quarter of 2023.

Net cash outflow from the Company's investing activities during the second quarter of 2023 was RMB329.2 million (US$45.4 million), primarily due to several investments made.

Net cash inflow from the Company's financing activities was RMB87.0 million (US$12.0 million) in the second quarter of 2023, primarily due to consolidation of one investment fund that Gopher manages and accounts for those limited partners' capital contributions as financing activity.

CONFERENCE CALL

Following the announcement of the Q2 and Interim Results, the Company's senior management will host a combined English and Chinese language earnings conference call to discuss its Q2 and Interim Results and recent business activities. The conference call may be accessed with the following details:

Dial-in details:


Conference Title:

Noah Holdings 2Q23 Earnings Conference Call

Date/Time:

 

Monday, August 28, 2023 at 8:00 p.m., U.S. Eastern Time

Tuesday, August 29, 2023 at 8:00 a.m., Hong Kong Time

Dial in:


- Hong Kong Toll Free

800-963-976

- United States Toll Free

+1-888-317-6003

- Mainland China Toll Free

4001-206-115

- International

+1-412-317-6061

Participant Password:

7932172

A telephone replay will be available starting approximately one hour after the end of the conference call until September 4, 2023 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll) with the access code 9237815.

A live and archived webcast of the conference call will be available at the Company's investor relations website under the "Financial Reports" section at http://ir.noahgroup.com.

DISCUSSION OF NON-GAAP MEASURES        

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation and net of tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measures used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies.

When evaluating the Company's operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company's management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.

ABOUT NOAH HOLDINGS LIMITED

Noah Holdings Limited (NYSE: NOAH and HKEX:6686) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. Noah is a Cayman Islands holding company and carries on business in Hong Kong as Noah Holdings Private Wealth and Asset Management Limited. In the first half of 2023, Noah distributed RMB35.2 billion (US$4.9 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB156.9 billion (US$21.6 billion) as of June 30, 2023.

Noah's wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,375 relationship managers across 63 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong (China), Taiwan (China), New York, Silicon Valley and Singapore. The Company's wealth management business had 446,557 registered clients as of June 30, 2023. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. Noah also provides other businesses.

For more information, please visit Noah at ir.noahgroup.com.

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the second quarter of 2023 ended June 30, 2023 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.2513 to US$1.00, the effective noon buying rate for June 30, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These statements include, but are not limited to, estimates regarding the sufficiency of Noah's cash and cash equivalents and liquidity risk. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with investment products distributed to Noah's investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

 

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited 

Condensed Consolidated Balance Sheets

(unaudited)


As of


March 31,


June 30, 


June 30, 


2023


2023


2023


RMB'000


RMB'000


USD'000

Assets







Current assets:








Cash and cash equivalents

4,713,215


4,740,434


653,736



Restricted cash

136,074


143,255


19,756



Short-term investments

316,178


445,485


61,435



Accounts receivable, net

363,890


534,885


73,764



Amounts due from related parties

499,220


429,202


59,190



Loans receivable, net

381,449


341,083


47,037



Other current assets 

199,429


200,588


27,662



Total current assets 

6,609,455


6,834,932


942,580


Long-term investments, net

851,649


980,257


135,184


Investment in affiliates

1,474,736


1,464,702


201,992


Property and equipment, net

2,487,886


2,525,732


348,314


Operating lease right-of-use assets, net

175,992


152,040


20,967


Deferred tax assets

436,446


436,240


60,160


Other non-current assets 

145,022


169,454


23,369

Total Assets

12,181,186


12,563,357


1,732,566

Liabilities and Equity







Current liabilities:








Accrued payroll and welfare expenses 

740,811


562,029


77,507



Income tax payable

153,799


141,693


19,540



Deferred revenues

79,235


71,440


9,852



Dividend payable

-


177,502


24,479



Contingent liabilities

566,005


592,097


81,654



Other current liabilities

546,497


584,384


80,590


Total current liabilities

2,086,347


2,129,145


293,622


Deferred tax liabilities

228,271


230,797


31,828


Operating lease liabilities, non-current

94,178


79,267


10,931


Other non-current liabilities

51,184


54,495


7,515


Total Liabilities 

2,459,980


2,493,704


343,896


Equity

9,721,206


10,069,653


1,388,670

Total Liabilities and Equity

12,181,186


12,563,357


1,732,566

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(In RMB'000, except for ADS data, per ADS data and percentages)

(unaudited)


Three months ended 


June 30,


June 30,


June 30,


Change


2022


2023


2023



Revenues:

RMB'000


RMB'000


USD'000



Revenues from others:








One-time commissions

177,339


399,521


55,096


125.3 %

Recurring service fees

184,300


176,355


24,320


(4.3 %)

Performance-based income

9,481


4,328


597


(54.4 %)

Other service fees

52,521


64,114


8,842


22.1 %

Total revenues from others

423,641


644,318


88,855


52.1 %

Revenues from funds Gopher
     manages:








One-time commissions

30,893


5,982


825


(80.6 %)

Recurring service fees

277,359


271,033


37,377


(2.3 %)

Performance-based income

16,533


23,635


3,259


43.0 %

Total revenues from funds Gopher
     manages

 

324,785


 

300,650


 

41,461


 

(7.4 %)

Total revenues

748,426


944,968


130,316


26.3 %

Less: VAT related surcharges 

(10,284)


(3,211)


(443)


(68.8 %)

Net revenues

738,142


941,757


129,873


27.6 %

Operating costs and expenses:








Compensation and benefits








Relationship managers

(131,519)


(180,304)


(24,865)


37.1 %

Others

(226,286)


(204,798)


(28,243)


(9.5 %)

Total compensation and benefits

(357,805)


(385,102)


(53,108)


7.6 %

Selling expenses

(70,307)


(112,003)


(15,446)


59.3 %

General and administrative
     expenses

 

(35,649)


 

(63,983)


 

(8,824)


 

79.5 %

Reversal of (provision for) credit
     losses

 

5,788


 

(220)


 

(30)


 

N.A.

Other operating expenses 

(22,677)


(37,078)


(5,113)


63.5 %

Government subsidies 

65,653


6,048


834


(90.8 %)

Total operating costs and expenses 

(414,997)


(592,338)


(81,687)


42.7 %

Income from operations 

323,145


349,419


48,186


8.1 %

Other income:








Interest income 

17,681


39,684


5,473


124.4 %

Investment income (loss)

5,174


(3,976)


(548)


N.A.

Other income

11,849


15,821


2,182


33.5 %

Total other income

34,704


51,529


7,107


48.5 %

Income before taxes and income from
     equity in affiliates

357,849


400,948


55,293


12.0 %

Income tax expense

(78,164)


(90,213)


(12,441)


15.4 %

Income from equity in affiliates

69,203


1,561


215


(97.7 %)

Net income

348,888


312,296


43,067


(10.5 %)

Less: net loss attributable to non-
     controlling interests

 

(117)


 

(3,132)


 

(432)


 

2576.9 %

Net income attributable to Noah
     shareholders 

349,005


315,428


43,499


(9.6 %)









Income per ADS, basic

5.19


4.54


0.63


(12.5 %)

Income per ADS, diluted

5.18


4.54


0.63


(12.4 %)

 

Margin analysis:








Operating margin

43.8 %


37.1 %


37.1 %



Net margin

47.3 %


33.2 %


33.2 %



 

Weighted average ADS equivalent[1]:








Basic

67,245,724


  

69,469,110


  

69,469,110



Diluted

 

67,310,698


 

69,492,786


69,492,786



ADS equivalent outstanding at end of
     period

60,222,116


  

63,137,912


  

63,137,912












 

[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs.

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(In RMB'000, except for USD data, per ADS data and percentages)

(unaudited)


Six months ended 


June 30,


June 30,


June 30,


Change


2022


2023


2023



 Revenues:

RMB'000


RMB'000


USD'000



 Revenues from others:








One-time commissions

258,493


570,092


78,619


120.5 %

Recurring service fees

377,679


369,063


50,896


(2.3 %)

Performance-based income

152,392


7,758


1,070


(94.9 %)

Other service fees

91,281


136,980


18,890


50.1 %

Total revenues from others

879,845


1,083,893


149,475


23.2 %

Revenues from funds Gopher
     manages:








One-time commissions

52,048


11,878


1,638


(77.2 %)

Recurring service fees

570,411


554,505


76,470


(2.8 %)

Performance-based income

48,600


103,960


14,337


113.9 %

Total revenues from funds
     Gopher manages

 

671,059


 

670,343


 

92,445


 

(0.1 %)

Total revenues

1,550,904


1,754,236


241,920


13.1 %

Less: VAT related surcharges 

(17,070)


(9,006)


(1,242)


(47.2 %)

Net revenues

1,533,834


1,745,230


240,678


13.8 %

Operating costs and expenses:








Compensation and benefits








Relationship managers

(241,514)


(329,039)


(45,377)


36.2 %

Others

(474,196)


(426,169)


(58,771)


(10.1 %)

Total compensation and benefits

 

(715,710)


 

(755,208)


 

(104,148)


 

5.5 %

Selling expenses

(130,213)


(208,672)


(28,777)


60.3 %

General and administrative expenses 

 

(93,856)


 

(109,683)


 

(15,126)


 

16.9 %

Reversal of credit losses

14,986


5,478


755


(63.4 %)

Other operating expenses 

(52,312)


(67,875)


(9,360)


29.8 %

Government subsidies 

80,211


19,032


2,625


(76.3 %)

Total operating costs and expenses 

...

 

(896,894)


 

(1,116,928)


 

(154,031)


 

24.5 %

Income from operations 

636,940


628,302


86,647


(1.4 %)

Other income:








Interest income 

30,318


74,072


10,216


144.3 %

Investment income (loss) 

30,547


(17,559)


(2,421)


N.A.

Other income

11,571


25,379


3,500


119.3 %

Total other income

72,436


81,892


11,295


13.1 %

Income before taxes and
     income from equity in affiliates

709,376


710,194


97,942


0.1 %

Income tax expense

(155,500)


(159,793)


(22,036)


2.8 %

Income from equity in affiliates

99,223


5,230


719


(94.7 %)

Net income

653,099


555,631


76,625


(14.9 %)

Less: net loss attributable to
     non-controlling interests

 

(1,148)


 

(4,007)


 

(553)


 

249.0 %

Net income attributable to
     Noah shareholders 

654,247


559,638


77,178


(14.5 %)









Income per ADS, basic

9.73


8.06


1.11


(17.2 %)

Income per ADS, diluted

9.70


8.05


1.11


(17.0 %)

 

Margin analysis:








Operating margin

41.5 %


36.0 %


36.0 %



Net margin

42.6 %


31.8 %


31.8 %



 

Weighted average ADS equivalent[1]:








Basic

67,240,800


69,468,036


69,468,036



Diluted

67,428,368


69,498,956


69,498,956



ADS equivalent outstanding at
     end of period

 

60,222,116


 

63,137,912


 

63,137,912




[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs.

 

 Noah Holdings Limited 

Condensed Comprehensive Income Statements 

(unaudited)



Three months ended 




June 30,


June 30,


June 30,


Change


2022


2023


2023




RMB'000


RMB'000


USD'000



Net income

348,888


312,296


43,068


(10.5 %)

Other comprehensive income, net of tax:








Foreign currency translation adjustments

75,557


140,753


19,411


86.3 %

Comprehensive income

424,445


453,049


62,479


6.7 %

Less: Comprehensive loss attributable to
non-controlling interests

 

(183)


 

(3,269)


(451)


1,686.3 %

Comprehensive income attributable to
     Noah shareholders

424,628


456,318


62,930


7.5 %

 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)



Six months ended 




June 30,


June 30,


June 30,


Change


2022


2023


2023




RMB'000


RMB'000


USD'000



Net income

653,099


555,631


76,625


(14.9 %)

Other comprehensive income, net of tax:








     Foreign currency translation adjustments









66,420


123,918


17,089


86.6 %

Comprehensive income

719,519


679,549


93,714


(5.6 %)

     Less: Comprehensive loss attributable to
non-controlling interests

(1,065)


(4,189)


(578)


293.9 %

Comprehensive income attributable to
     Noah shareholders

720,584


683,738


94,292


(5.1 %)

 

Noah Holdings Limited

Supplemental Information 

(unaudited) 


As of 




June 30, 
2022


June 30, 
2023


Change







Number of registered clients 

418,675


446,557


6.7 %

Number of relationship managers 

1,255


1,375


9.6 %

Number of cities in mainland China under
coverage 

79


63


(20.3 %)














Three months ended 




June 30,
2022


June 30, 
2023


Change


(in millions of RMB, except number of active clients and
percentages)

Number of active clients

12,866


11,548


(10.2 %)

Transaction value: 






Private equity products 

3,918


618


(84.2 %)

Private secondary products

2,394


4,293


79.3 %

Mutual fund products 

12,190


12,031


(1.3 %)

Other products

814


1,465


80.1 %

Total transaction value

19,316


18,407


(4.7 %)

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 



Three months ended June 30, 2023


Wealth 
Management
Business


Asset 
Management
Business


Other 
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others








One-time commissions

399,521


-


-


399,521

Recurring service fees

176,355


-


-


176,355

Performance-based income

4,328


-


-


4,328

Other service fees

50,878


-


13,236


64,114

Total revenues from others

631,082


-


13,236


644,318

Revenues from funds Gopher
     manages








One-time commissions

5,920


62


-


5,982

Recurring service fees

93,914


177,119


-


271,033

Performance-based income

17,115


6,520


-


23,635

Total revenues from funds Gopher
     manages

 

116,949


 

183,701


-


 

300,650

Total revenues

748,031


183,701


13,236


944,968

Less: VAT related surcharges 

(2,755)


(312)


(144)


(3,211)

Net revenues

745,276


183,389


13,092


941,757

Operating costs and expenses:








Compensation and benefits








Relationship managers

(175,446)


(4,858)


-


(180,304)

Others

(133,409)


(63,949)


(7,440)


(204,798)

Total compensation and benefits

(308,855)


(68,807)


(7,440)


(385,102)

Selling expenses

(84,883)


(20,839)


(6,281)


(112,003)

General and administrative
     expenses 

 

(47,431)


 

(11,721)


 

(4,831)


 

(63,983)

(Provision for) reversal of credit
     losses

 

(294)


 

74


 

-


 

(220)

Other operating expenses

(9,637)


(1,230)


(26,211)


(37,078)

Government subsidies 

6,002


46


-


6,048

Total operating costs and expenses 

(445,098)


(102,477)


(44,763)


(592,338)

Income (loss) from operations

300,178


80,912


(31,671)


349,419

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 



Three months ended June 30, 2022


Wealth 
Management
Business


Asset 
Management
Business


Other 
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others








One-time commissions

177,339


-


-


177,339

Recurring service fees

184,300


-


-


184,300

Performance-based income

9,481


-


-


9,481

Other service fees

27,375


-


25,146


52,521

Total revenues from others

398,495


-


25,146


423,641

Revenues from funds Gopher
     manages








One-time commissions

1,518


29,375


-


30,893

Recurring service fees

107,767


169,592


-


277,359

Performance-based income

3,837


12,696


-


16,533

Total revenues from funds Gopher
      manages

 

113,122


 

211,663


-


 

324,785

Total revenues

511,617


211,663


25,146


748,426

Less: VAT related surcharges 

(2,976)


(1,313)


(5,995)


(10,284)

Net revenues

508,641


210,350


19,151


738,142

Operating costs and expenses:








Compensation and benefits








Relationship managers

(120,258)


(11,261)


-


(131,519)

Others

(153,046)


(63,241)


(9,999)


(226,286)

Total compensation and benefits

(273,304)


(74,502)


(9,999)


(357,805)

Selling expenses

(60,479)


(8,244)


(1,584)


(70,307)

General and administrative
     expenses 

 

(18,821)


 

(12,287)


 

(4,541)


 

(35,649)

Reversal of (provision for) credit
     losses

 

141


 

(441)


 

6,088


 

5,788

Other operating income (expenses)

915


(113)


(23,479)


(22,677)

Government subsidies 

36,750


27,822


1,081


65,653

Total operating costs and expenses 

(314,798)


(67,765)


(32,434)


(414,997)

Income (loss) from operations

193,843


142,585


(13,283)


323,145

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)




Three months ended June 30, 2023


Wealth 
Management
Business


Asset 
Management
Business


Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

419,220


118,972


13,236


551,428

Hong Kong

282,693


42,439


-


325,132

Others

46,118


22,290


-


68,408

Total revenues

748,031


183,701


13,236


944,968

 


Three months ended June 30, 2022


Wealth 
Management
Business


Asset 
Management
Business


Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

378,862


184,939


25,146


588,947

Hong Kong

111,125


9,117


-


120,242

Others

21,630


17,607


-


39,237

Total revenues

511,617


211,663


25,146


748,426

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

(In RMB, except for per ADS data and percentages) 

(unaudited) 


Three months ended 




June 30, 


June 30, 


Change


2022


2023




RMB'000


RMB'000









Net income attributable to Noah shareholders

349,005


315,428


(9.6 %)

Adjustment for share-based compensation

7,990


(3,055)


N.A.

Less: tax effect of adjustments

1,922


(740)


N.A.

Adjusted net income attributable to Noah shareholders
     (non-GAAP)

355,073


313,113


(11.8 %)

 

Net margin attributable to Noah shareholders

 

47.3 %


 

33.5 %



Non-GAAP net margin attributable to Noah shareholders

48.1 %


33.2 %









Net income attributable to Noah shareholders per ADS,
     diluted

5.18


4.54


(12.4 %)

Non-GAAP net income attributable to Noah shareholders
     per ADS, diluted

5.28


4.51


(14.6 %)

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

(In RMB, except for per ADS data and percentages) 

(unaudited) 


Six months ended 




June 30, 


June 30, 


Change 


2022


2023




RMB'000


RMB'000









Net income attributable to Noah shareholders

654,247


559,638


(14.5 %)

Adjustment for share-based compensation

18,836


(9,244)


N.A.

Less: tax effect of adjustments

4,529


(2,239)


N.A.

Adjusted net income attributable to Noah shareholders
     (non-GAAP)

668,554


552,633


(17.3 %)

 

Net margin attributable to Noah shareholders

 

42.7 %


 

32.1 %



Non-GAAP net margin attributable to Noah shareholders

43.6 %


31.7 %









Net income attributable to Noah shareholders per ADS,
     diluted

9.70


8.05


(17.0 %)

 

Non-GAAP net income attributable to Noah shareholders
     per ADS, diluted

9.92


7.95


(19.9 %)

 

CisionCision
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View original content:https://www.prnewswire.com/apac/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-second-quarter-of-2023-301911209.html

SOURCE Noah Holdings Limited

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