Noah Holdings Limited Announces Unaudited Financial Results for the Second Quarter of 2018

SHANGHAI,Aug. 29,2018 -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH),a leading wealth and asset management service provider in China with a focus on global investment and asset allocation services for high net worth individuals and enterprises,today announced its unaudited financial results for the second quarter of 2018.

SECOND QUARTER 2018 FINANCIAL HIGHLIGHTS

Net revenues for the second quarter of 2018 were RMB797.6 million (US$120.5 million),a 12.8% increase from the corresponding period in 2017.

(RMB millions,

except percentages)

Q2 2017

Q2 2018

YoY Change

Wealth management

550.6

556.5

1.1%

Asset management

130.3

195.5

50.0%

Other financial services

26.4

45.6

72.7%

Total net revenues

707.3

797.6

12.8%

Income from operations for the second quarter of 2018 was RMB221.2 million (US$33.4 million),a 1.4% decrease from the corresponding period in 2017.

(RMB millions,

except percentages)

Q2 2017

Q2 2018

YoY Change

Wealth management

185.2

135.7

(26.7%)

Asset management

69.8

100.7

44.3%

Other financial services

(30.8)

(15.1)

(51.0%)

Total income from operations

224.3

221.2

(1.4%)

Net income attributable to Noah shareholders for the second quarter of 2018 was RMB179.5 million (US$27.1 million),a 13.3% decrease from the corresponding period in 2017.

Non-GAAP[1] net income attributable to Noah shareholders for the second quarter of 2018 was RMB252.1 million (US$38.1 million),an 11.3% increase from the corresponding period in 2017.

SECOND QUARTER 2018 OPERATIONAL UPDATES

Wealth Management Business

The Company's wealth management business offers financial products and provides comprehensive financial services to high net worth clients. Noah primarily distributes onshore and offshore fixed income,private equity,secondary market equity and insurance products.

Total number of registered clients as of June 30,2018 was 220,601,a 33.9% increase from June 30,2017.

Total number of active clients[2] during the second quarter of 2018 was 4,461,a 0.5% decrease from June 30,2017.

Aggregate value of financial products distributed during the second quarter of 2018 was RMB29.1 billion (US$4.4 billion),an 11.9% decrease from the second quarter of 2017.

Product type

Three months ended June 30,

2017

2018

(RMB in billions,except percentages)

Fixed income

23.5

71.3%

19.3

66.3%

Private equity

8.3

25.0%

6.3

21.6%

Secondary market equity

1.1

3.4%

2.8

9.7%

Other products

0.1

0.3%

0.7

2.4%

All products

33.0

100.0%

29.1

100.0%

Average transaction value per active client[3] for the second quarter of 2018 was RMB6.5 million (US$1.0 million),an 11.4% decrease from the corresponding period in 2017.

Coverage network included 287 branches and sub-branches covering 81 cities as of June 30,2018,up from 205 branches and sub-branches covering 76 cities as of June 30,2017.

Number of relationship managers was 1,495 as of June 30,an 18.7% increase from June 30,2017.

Asset Management Business

The Company's asset management business,Gopher Asset Management Co.,Ltd. ("Gopher Asset Management" or "Gopher"),is a leading alternative asset manager in China. Gopher Asset Management develops and manages private equity,real estate,secondary market equity,credit and other investments denominated in Renminbi and other currencies.

Total assets under management as of June 30,2018 were RMB161.5 billion (US$24.4 billion),a 2.9% increase from March 31,2018 and a 16.5% increase from June 30,2017.

Investment type

As of

March 31,

2018

Asset

Growth

Asset

Expiration/

Redemption

As of

June 30,

2018

(RMB billions,except percentages)

Private equity

91.8

58.5%

4.3

2.2

93.9

58.1%

Credit

42.8

27.3%

8.1

9.6

41.3

25.6%

Real estate

11.9

7.6%

6.5

0.8

17.6

10.9%

Secondary market

equity[4]

6.8

4.3%

0.2

2.7

4.3

2.7%

Other investments

3.6

2.3%

0.8

-

4.4

2.7%

All Investments

156.9

100.0%

19.9

15.3

161.5

100.0%

Other Financial Services Business

The Company's other financial services business includes its lending services,online wealth management and payment technology services.

Mr. Kenny Lam,Group President of Noah,said,"In the second quarter of 2018,we began to see increased macro-economic and capital market volatility which affected investment sentiment in China. Our focus will be on investing further in client education,enhancing our professional capabilities,diversifying our services and products,and growing our global footprints. In the short term,increased regulatory scrutiny may slow the overall growth rate of the industry,and as a result,we are closely monitoring any development trends affecting the industry generally or our business in particular. In the long run,however,we believe that the whole market will benefit from the normalized regulation and leading companies like Noah will stand out eventually."

SECOND QUARTER 2018 FINANCIAL RESULTS

Net Revenues

Net revenues for the second quarter of 2018 were RMB797.6 million (US$120.5 million),a 12.8% increase from the corresponding period in 2017,primarily driven by increased recurring service fee revenues and performance-based income,and partially offset by decreased one-time commissions.

Wealth Management Business

- Net revenues from one-time commissions for the second quarter of 2018 were RMB233.0 million (US$35.2 million),a 21.7% decrease from the corresponding period in 2017,primarily due to a decline in transaction value.

- Net revenues from recurring service fees for the second quarter of 2018 were RMB284.2 million (US$43.0 million),a 35.8% increase from the corresponding period in 2017. The increase was primarily due to the cumulative effect of financial products with recurring service fees previously distributed.

- Net revenues from performance-based income for the second quarter of 2018 were RMB11.8 million (US$1.8 million),compared with RMB22.0 million in the corresponding period of 2017,primarily due to a decrease in performance-based income from secondary market equity products.

- Net revenues from other service fees for the second quarter of 2018 were RMB27.5 million (US$4.2 million),an increase from RMB21.6 million in the corresponding period in 2017,primarily due to the growth of the Company's investor education business.

Asset Management Business

- Net revenues from recurring service fees for the second quarter of 2018 were RMB165.1 million (US$24.9 million),a 28.7% increase from the corresponding period in 2017. The increase was primarily due to the increase in assets under management.

- Net revenues from performance-based income for the second quarter of 2018 were RMB27.3 million (US$4.1 million),compared with RMB1.5 million in the corresponding period of 2017,primarily due to an increase in performance-based income from real estate products.

Other Financial Services Business

- Net revenues for the second quarter of 2018 were RMB45.6 million (US$6.9 million),a 72.7% increase from the corresponding period in 2017. The increase was primarily due to the growth of the Company's lending services business.

Operating Costs and Expenses

Operating costs and expenses for the second quarter of 2018 were RMB576.4 million (US$87.1 million),a 19.3% increase from the corresponding period in 2017. Operating costs and expenses primarily consisted of compensation and benefits of RMB390.3 million (US$59.0 million),selling expenses of RMB120.5 million (US$18.2 million),general and administrative expenses of RMB68.5 million (US$10.4 million) and other operating expenses of RMB28.6 million (US$4.3 million).

Operating costs and expenses for the wealth management business for the second quarter of 2018 were RMB420.8 million (US$63.6 million),a 15.2% increase from the corresponding period in 2017,primarily due to an increase in compensation and benefits and marketing expenses.

Operating costs and expenses for the asset management business for the second quarter of 2018 were RMB94.8 million (US$14.3 million),a 56.6% increase from the corresponding period in 2017,primarily due to an increase in compensation and benefits.

Operating costs and expenses for the other financial services business for the second quarter of 2018 were RMB60.8 million (US$9.2 million),a 6.4% increase from the corresponding period in 2017.

Operating Margin

Operating margin for the second quarter of 2018 was 27.7%,a decrease from 31.7% for the corresponding period in 2017.

Operating margin for the wealth management business for the second quarter of 2018 was 24.4%,compared with 33.6% for the corresponding period in 2017.

Operating margin for the asset management business for the second quarter of 2018 was 51.5%,compared with 53.5% for the corresponding period in 2017.

Operating loss for the other financial services business for the second quarter of 2018 was RMB15.1 million (US$2.3 million),improving from a loss of RMB30.8 million for the corresponding period in 2017.

Investment Income

Investment income for the second quarter of 2018 was RMB16.8 million (US$2.5 million),compared with RMB10.9 million for the corresponding period in 2017. The increase was primarily due to the gain from disposal of equity securities,partially offset by a loss from changes in fair value of equity securities. See "Discussion of Recently Adopted Accounting Standard and Non-GAAP Financial Measures" below for more details.

Income Tax Expenses

Income tax expensesfor the second quarter of 2018 were RMB57.7 million (US$8.7 million),a 4.3% decrease from the corresponding period in 2017,primarily due to lower taxable income.

Net Income

Net Income

- Net income for the second quarter of 2018 was RMB186.4 million (US$28.2 million),a 9.5% decrease from the corresponding period in 2017.

- Net margin for the second quarter of 2018 was 23.4%,down from 29.1% for the corresponding period in 2017.

- Net income attributable to Noah shareholders for the second quarter of 2018 was RMB179.5 million (US$27.1 million),a 13.3% decrease from the corresponding period in 2017.

- Net margin attributable to Noah shareholders for the second quarter of 2018 was 22.5%,down from 29.3% for the corresponding period in 2017.

- Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2018 was RMB3.13 (US$0.47) and RMB3.00 (US$0.45),respectively,down from RMB3.67 and RMB3.52 respectively,for the corresponding period in 2017.

Non-GAAP Net Income Attributable to Noah Shareholders

- Non-GAAP net income attributable to Noah shareholders for the second quarter of 2018 was RMB252.1 million (US$38.1 million),an 11.3% increase from the corresponding period in 2017.

- Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2018 was 31.6%,down from 32.0% for the corresponding period in 2017.

- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2018 was RMB4.20 (US$0.63),up from RMB3.84 for the corresponding period in 2017.

Balance Sheet and Cash Flow

As of June 30,the Company had RMB2,094.8 million (US$316.6 million) in cash and cash equivalents,compared with RMB2,003.5 million as of June 30,2017 and RMB2,151.4 million as of March 31,2018.

Net cash outflow from the Company's operating activities during the second quarter of 2018 was RMB302.7 million (US$45.7 million),compared to net cash inflow RMB72.8 million in the corresponding period in 2017. The difference was mainly due to the temporary increase of other current assets for the financial leasing business.

Net cash inflow from the Company's investing activities during the second quarter of 2018 was RMB153.0 million (US$23.1 million),compared to net cash outflow RMB671.2 million in the corresponding period in 2017,primarily due to the maturity of certain loans in the lending business.

Net cash inflow from the Company's financing activities was RMB54.1 million (US$8.2 million) in the second quarter of 2018,compared to net cash inflow RMB4.2 million in the corresponding period in 2017,driven by more proceeds received from the issuance of ordinary shares upon exercise of stock options.

On July 8,2017,the Company's board of directors authorized a share repurchase program of up to US$50.0 million worth of its issued and outstanding ADSs over the course of one year,which expired on July 7,2018. The Company had not repurchased any ADSs under this program.

OTHER COMPANY DEVELOPMENTS

The Company also announced the promotion of Ms. Yang Gao to the position of Chief Operating Officer,replacing Mr. Harry Tsai,who is leaving for personal reasons,effective August 31,2018.

Ms. Gao has more than 13 years of experience in financial and operating management. She joined Noah in June 2011 and serves as the general manager of the public affairs department of the Company. From 2015 to 2018,she was the chief operating officer of Noah's wealth management business. Prior to joining Noah,Ms. Gao worked with the taxation management department of Shanda Group for seven years. Ms. Gao received her bachelor's degree from Shanghai University of Finance and Economics.

Ms. Jingbo Wang,Chairlady and CEO of Noah,commented,"We are very pleased to welcome Ms. Gao to Noah's senior management team. Ms. Gao has been with the Company for more than seven years and has extensive experience in financial and corporate operations. At the same time,we highly appreciate Harry's long tenure with Noah and his hard work over the years,and wish him all the best in the future."

2018 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2018 will be in the range of RMB1 billion to RMB1.05 billion,an increase of 16.7% to 22.6% compared with the full year 2017. 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 second quarter 2018 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details

Date/Time:

Tuesday,Aug 28,2018 at 8:00 p.m.,U.S. Eastern Time

Wednesday,Aug 29,2018 at 8:00 a.m.,Hong Kong Time

Dial in details:

-United States Toll Free

+1-866-311-7654

-Mainland China Toll Free

4001-201203

-Hong Kong Toll Free

800-905-945

-International

+1-412-317-5227

Conference Title:

Noah Holdings Limited Second Quarter 2018 Earnings Call

Participant Password:

Noah Holdings

A telephone replay will be available starting one hour after the end of the conference call until September 4,2018 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10123267.

A live and archived webcast of the conference call will be available at Noah's investor relations website under the News & Events section at http://ir.noahgroup.com.

DISCUSSION OF RECENTLY ADOPTED ACCOUNTING STANDARD AND NON-GAAP MEASURES

On January 1,the Company adopted ASU 2016-01Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,which requires that equity investments,except for those accounted for under the equity method or those that result in consolidation of the investee,be measured at fair value,with subsequent changes in fair value recognized in net income.

The accounting standard also includes a transition requirement on presentation that requires the amounts reported in accumulated other comprehensive income for equity securities that exist as of the date of adoption previously classified as available-for-sale to be reclassified to retained earnings.

As a result,upon adoption of this new standard,Noah recorded a cumulative effect adjustment from other comprehensive income to retained earnings of RMB251.6 million (US$38.7 million),net of tax,for the unrealized gains related to equity securities previously classified as available-for-sale securities. This adjustment had no overall impact on shareholders' equity; however,since these net unrealized gains are now included within retained earnings,they will not appear as realized gains on Noah's consolidated income statement when sold.

The future impact to Noah's consolidated income statement from period to period will vary depending upon the level of volatility in the performance of the securities held in Noah's equity portfolio and the overall market. ASU 2016-01 does not affect the treatment of equity investments accounted for under the equity method or those that result in consolidation of the investee.

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 fair value changes of equity investments (unrealized) and adjusting for sale of equity securities. 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 wealth and asset management service provider in China with a focus on global investment and asset allocation services for high net worth individuals and enterprises. In the second quarter of 2018,Noah distributed RMB29.1 billion (US$4.4 billion) of financial products. Through Gopher Asset Management,Noah had assets under management of RMB161.5 billion (US$24.4 billion) as of June 30,2018.

Noah's wealth management business primarily distributes onshore and offshore fixed income,secondary market equity and insurance products. Noah delivers customized financial solutions to clients through a network of 1,495 relationship managers across 287 branches and sub-branches in 81 cities in mainland China,and serves the international investment needs of its clients through offices in Hong Kong,Taiwan,United States,Canada,Australia and Singapore. The Company's wealth management business had 220,601 registered clients as of June 30,2018. As a leading alternative asset manager in China,Gopher Asset Management manages private equity,credit and other investments denominated in Renminbi and other currencies. The Company also provides other financial services,including lending services,online wealth management and payment technology services.

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 2018 ended June 30,2018 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 RMB6.6171 to US$1.00,the effective noon buying rate for June 29,2018 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. Among other things,the outlook for 2018 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 fourth 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 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 industry; 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 industry 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.

Contacts:

Noah Holdings Limited

Eva Ma

Tel: +86-21-8035-9221

ir@noahgroup.com

[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation and fair value changes of equity securities (unrealized) and adjusting for sale of equity securities. 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 clients who purchase financial products provided or distributed by Noah during that given period,excluding clients in Noah's other financial services segment.

[3] "Average transaction value per active client" refers to the average value of financial products that were purchased by active clients during the period specified.

[4] The asset expiration/redemption of secondary market equity investments also includes market appreciation or depreciation.

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)

As of

March 31,

June 30,

2018

2018

2018

RMB'000

RMB'000

USD'000

Assets

Current assets:

Cash and cash equivalents

2,151,447

2,094,773

316,570

Short-term investments (including short-term

investments measured at fair value of RMB86,740

thousands and RMB163,043 thousands,as of March 31,

2018 and June 30,respectively)

246,740

224,043

33,858

Accounts receivable and contract assets,net of

allowance for doubtful accounts of nil as of March 31,2018

228,770

243,098

36,738

Loans receivable

827,737

601,952

90,969

Amounts due from related parties

653,788

563,286

85,126

Loans receivable from factoring business

71,403

68,358

10,331

Other current assets

247,256

483,894

73,128

Total current assets

4,427,141

4,279,404

646,720

Long-term investments (including long-term investments

measured at fair value of RMB835,235 thousands and

RMB771,594 thousands,2018 and June

30,respectively)

890,735

806,094

121,820

Investment in affiliates

1,049,353

1,176,750

177,835

Property and equipment,net

299,415

295,786

44,700

Non-current deferred tax assets

72,357

97,296

14,704

Other non-current assets

114,226

77,196

11,666

Total Assets

6,853,227

6,732,526

1,017,445

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses

563,715

479,654

72,487

Income tax payable

82,394

18,484

2,793

Amounts due to related parties

280

336

51

Deferred revenues

167,768

146,462

22,134

Loans payable from factoring business

302

35,003

5,290

Other current liabilities

581,379

383,256

57,919

Total current liabilities

1,395,838

1,063,195

160,674

Non-current deferred tax liabilities

51,810

50,172

7,582

Convertible notes

470,445

330,855

50,000

Other non-current liabilities

112,839

112,485

16,999

Total Liabilities

2,030,932

1,556,707

235,255

Equity

4,822,295

5,175,819

782,190

Total Liabilities and Equity

6,445

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)

Three months ended

June 30,

Change

2017

2018

2018

Revenues:

RMB'000

RMB'000

USD'000

Revenues from others[1]:

One-time commissions

123,321

161,791

24,450

31.2%

Recurring service fees

144,245

167,196

25,267

15.9%

Performance-based income

16,179

10,082

1,524

(37.7%)

Other service fees

48,608

76,883

11,619

58.2%

Total revenues from others

332,353

415,952

62,860

25.2%

Revenues from funds Gopher manages[1]:

One-time commissions

177,333

72,805

11,003

(58.9%)

Recurring service fees

195,891

284,389

42,978

45.2%

Performance-based income

7,570

29,213

4,415

285.9%

Total revenues from funds

Gopher manages

380,794

386,407

58,396

1.5%

Total revenues

713,147

802,359

121,256

12.5%

Less: business taxes and

related surcharges

(5,836)

(4,757)

(718)

(18.5%)

Net revenues

707,311

797,602

120,538

12.8%

Operating costs and

expenses:

Compensation and benefits

Relationship manager

compensation

(140,078)

(168,429)

(25,454)

20.2%

Performance fee

compensation

-

(5,200)

(786)

N.A.

Other compensations

(190,895)

(216,635)

(32,739)

13.5%

Total compensation and

benefits

(330,973)

(390,264)

(58,979)

17.9%

Selling expenses

(71,376)

(120,472)

(18,206)

68.8%

General and administrative

expenses

(49,231)

(68,510)

(10,353)

39.2%

Other operating expenses

(41,268)

(28,589)

(4,320)

(30.7%)

Government grants

9,791

31,432

4,750

221.0%

Total operating costs and

expenses

(483,057)

(576,403)

(87,108)

19.3%

Income from operations

224,254

221,199

33,430

(1.4%)

Other income:

Interest income

10,440

18,633

2,816

78.5%

Interest expenses

(4,894)

(3,313)

(501)

(32.3%)

Investment income

10,943

16,754

2,532

53.1%

Other (expense) income

2,055

(21,357)

(3,228)

(1139.3%)

Total other income

18,544

10,717

1,619

(42.2%)

Income before taxes and

income from equity in affiliates

242,798

231,916

35,049

(4.5%)

Income tax expense

(60,244)

(57,651)

(8,712)

(4.3%)

Income from equity in affiliates

23,308

12,087

1,827

(48.1%)

Net income

205,862

186,352

28,164

(9.5%)

Less: net loss attributable

to non-controlling interests

(4,070)

6,867

1,038

(268.7%)

Less: Loss attributable to

redeemable non-controlling

interest of a subsidiary

2,891

-

-

(100.0%)

Net income attributable to

Noah shareholders

207,041

179,485

27,126

(13.3%)

Income per ADS,basic

3.67

3.13

0.47

(14.7%)

Income per ADS,diluted

3.52

3.00

0.45

(14.8%)

Margin analysis:

Operating margin

31.7%

27.7%

27.7%

Net margin

29.1%

23.4%

23.4%

Weighted average ADS equivalent[2]:

Basic

56,612

57,295,516

57,516

Diluted

60,205,429

60,747,298

60,298

ADS equivalent outstanding

at end of period

56,547,380

58,498,187

58,187

[1] Starting from the first quarter of 2018,we report revenue streams in two categories - revenues from

funds Gopher manages and revenues from others,instead of the previous categories - third-party revenues

and related party revenues,to provide more relevant and accurate information. We also revised the

comparative period presentation to conform to current period classification.

[2] 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,per ADS data and percentages)

(unaudited)

Six months ended

June 30,

Change

2017

2018

2018

Revenues:

RMB'000

RMB'000

USD'000

Revenues from others[1]:

One-time commissions

323,108

381,332

57,628

18.0%

Recurring service fees

289,274

311,128

47,019

7.6%

Performance-based

income

28,729

30,739

4,645

7.0%

Other service fees

81,849

136,872

20,685

67.2%

Total revenues from others

722,960

860,071

129,977

19.0%

Revenues from funds

Gopher manages[1]:

One-time commissions

321,889

171,189

25,871

(46.8%)

Recurring service fees

377,781

538,456

81,373

42.5%

Performance-based

income

7,649

68,261

10,316

792.4%

Total revenues from funds

Gopher manages

707,319

777,906

117,560

10.0%

Total revenues

1,430,279

1,637,977

247,537

14.5%

Less: business taxes and

related surcharges

(9,798)

(9,456)

(1,429)

(3.5%)

Net revenues

1,420,481

1,628,521

246,108

14.6%

Operating costs and expenses:

Compensation and

benefits

Relationship manager

compensation

(290,391)

(327,130)

(49,437)

12.7%

Performance fee

compensation

-

(11,400)

(1,723)

N.A.

Other compensations

(381,164)

(412,447)

(62,330)

8.2%

Total compensation and

benefits

(671,555)

(750,977)

(113,490)

11.8%

Selling expenses

(131,979)

(226,731)

(34,264)

71.8%

General and administrative

expenses

(108,869)

(124,439)

(18,806)

14.3%

Other operating expenses

(70,714)

(66,552)

(10,058)

(5.9%)

Government grants

43,723

35,920

5,428

(17.8%)

Total operating costs and

expenses

(939,394)

(1,132,779)

(171,190)

20.6%

Income from operations

481,087

495,742

74,918

3.0%

Other income:

Interest income

19,148

41,500

6,272

116.7%

Interest expenses

(9,807)

(10,182)

(1,539)

3.8%

Investment income

21,089

58,886

8,899

179.2%

Other (expense) income

3,192

(20,194)

(3,052)

(732.6%)

Total other income

33,622

70,010

10,580

108.2%

Income before taxes and

income from equity in

affiliates

514,709

565,752

85,498

9.9%

Income tax expense

(122,159)

(131,313)

(19,844)

7.5%

Income from equity in

affiliates

29,034

12,739

1,925

(56.1%)

Net income

421,584

447,178

67,579

6.1%

Less: net loss attributable

to non-controlling interests

(9,270)

(772)

(117)

(91.7%)

Less: Loss attributable to

redeemable non-controlling

interest of a subsidiary

6,816

-

-

(100.0%)

Net income attributable to

Noah shareholders

424,038

447,950

67,696

5.6%

Income per ADS,basic

7.51

7.82

1.18

4.1%

Income per ADS,diluted

7.04

7.37

1.11

4.7%

Margin analysis:

Operating margin

33.9%

30.4%

30.4%

Net margin

29.7%

27.5%

27.5%

Weighted average ADS equivalent[2]:

Basic

56,to provide more relevant and accurate information. We also revised the

comparative period presentation to conform to current period classification.

[2] 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,

Change

2017

2018

2018

RMB'000

RMB'000

USD'000

Net income

205,164

(9.5%)

Other comprehensive income,net of tax:

Foreign currency translation adjustments

(6,321)

52,539

7,940

(931.2%)

Fair value fluctuation of available for sale

Investment (after tax)

2,606

(2,469)

(373)

(194.7%)

Comprehensive income

202,147

236,422

35,731

17.0%

Less: Comprehensive income (loss)

attributable to non-controlling interests

(4,029)

6,835

1,033

(269.6%)

Less: Loss attributable to redeemable

non-controlling interest of a subsidiary

2,891

-

-

(100.0%)

Comprehensive income attributable to

Noah shareholders

203,285

229,587

34,698

12.9%

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

Six months ended

June 30,

Change

2017

2018

2018

RMB'000

RMB'000

USD'000

Net income

421,579

6.1%

Other comprehensive income,net of tax:

Foreign currency translation adjustments

(10,466)

17,676

2,671

(268.9%)

Fair value fluctuation of available for sale

Investment (after tax)

4,121

(1,093)

(165)

(126.5%)

Comprehensive income

415,239

463,761

70,085

11.7%

Less: Comprehensive loss attributable to

non-controlling interests

(9,345)

(744)

(112)

(92.0%)

Less: Loss attributable to redeemable

non-controlling interest of a subsidiary

6,816

-

-

(100.0%)

Comprehensive income attributable to

Noah shareholders

417,768

464,505

70,197

11.2%

Noah Holdings Limited

Supplemental Information

(unaudited)

As of

June 30,

2017

June 30,

2018

Change

Number of registered clients

164,728

220,601

33.9%

Number of relationship managers

1,259

1,495

18.7%

Number of cities under coverage

76

81

6.6%

Three months ended

June 30,

2018

Change

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

Number of active clients

4,484

4,461

(0.5%)

Transaction value:

Fixed income products

23,505

19,252

(18.1%)

Private equity products

8,252

6,287

(23.8%)

Secondary market equity products

1,111

2,835

155.2%

Other products

94

678

621.3%

Total transaction value

32,962

29,052

(11.9%)

Average transaction value per active client

7.35

6.51

(11.4%)

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended June 30,2018

Wealth

Management

Business

Asset

Management

Business

Other

Financial

Services

Business

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Revenues from others

One-time commissions

161,421

370

-

161,791

Recurring service fees

158,469

8,727

-

167,196

Performance-based income

10,082

-

-

10,082

Other service fees

27,613

2,735

46,535

76,883

Total revenues from others

357,585

11,832

46,535

415,952

Revenues from funds Gopher manages

One-time commissions

72,805

-

-

72,805

Recurring service fees

127,264

157,125

-

284,389

Performance-based income

1,739

27,474

-

29,213

Total revenues from funds Gopher manages

201,808

184,599

-

386,407

Total revenues

559,393

196,431

46,535

802,359

Less: business taxes and related surcharges

(2,932)

(924)

(901)

(4,757)

Net revenues

556,461

195,507

45,634

797,602

Operating costs and expenses:

Compensation and benefits

Relationship manager compensation

(167,533)

-

(896)

(168,429)

Performance fee compensation

-

(5,200)

-

(5,200)

Other compensations

(121,290)

(63,723)

(31,622)

(216,635)

Total compensation and benefits

(288,823)

(68,923)

(32,518)

(390,264)

Selling expenses

(110,686)

(5,361)

(4,425)

(120,472)

General and administrative expenses

(41,550)

(19,235)

(7,725)

(68,510)

Other operating expenses

(7,745)

(4,725)

(16,119)

(28,589)

Government grants

27,994

3,418

20

31,432

Total operating costs and expenses

(420,810)

(94,826)

(60,767)

(576,403)

Income (loss) from operations

135,651

100,681

(15,133)

221,199

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended June 30,2017

Wealth

Management

Business

Asset

Management

Business

Other

Financial

Services

Business

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Revenues from others

One-time commissions

122,955

366

-

123,321

Recurring service fees

136,182

8,063

-

144,245

Performance-based income

15,015

1,164

-

16,179

Other service fees

21,842

94

26,672

48,608

Total revenues from others

295,994

9,687

26,672

332,353

Revenues from funds Gopher manages

One-time commissions

177,333

-

-

177,333

Recurring service fees

75,045

120,846

-

195,891

Performance-based income

7,194

376

-

7,570

Total revenues from funds Gopher

manages

259,572

121,222

-

380,794

Total revenues

555,566

130,909

26,672

713,147

Less: business taxes and related surcharges

(4,963)

(580)

(293)

(5,836)

Net revenues

550,603

130,329

26,379

707,311

Operating costs and expenses:

Compensation and benefits

Relationship manager

compensation

(138,330)

(1)

(1,747)

(140,078)

Other compensations

(112,454)

(44,687)

(33,754)

(190,895)

Total compensation and benefits

(250,784)

(44,688)

(35,501)

(330,973)

Selling expenses

(66,919)

(1,432)

(3,025)

(71,376)

General and administrative

expenses

(29,911)

(11,168)

(8,152)

(49,231)

Other operating expenses

(27,494)

(3,314)

(10,460)

(41,268)

Government grants

9,731

60

-

9,791

Total operating costs and expenses

(365,377)

(60,542)

(57,138)

(483,057)

Income (loss) from operations

185,226

69,787

(30,759)

224,254

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)[5]

Three months ended

June 30,

Change

2017

2018

RMB'000

RMB'000

Net income attributable to Noah shareholders

207,485

(13.3%)

Adjustment for share-based compensation related to:

Share options

12,622

9,724

(23.0%)

Restricted shares

6,849

10,517

53.6%

Less: Gains (loss) from fair value changes of equity

securities (unrealized)

-

(49,063)

N.A

Add: Gains (loss) from sales of equity securities

-

3,338

N.A

Non-GAAP net income attributable to Noah

shareholders*

226,512

252,127

11.3%

Net marginattributable to Noah shareholders

29.3%

22.5%

Non-GAAP net margin attributable to Noah

shareholders*

32.0%

31.6%

Net income attributable to Noah shareholders per ADS,

diluted

3.52

3.00

(14.8%)

Non-GAAP net income attributable to Noah shareholders

per ADS,diluted*

3.84

4.20

9.4%

* The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments.

[5] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the

effects of all forms of share-based compensation and fair value changes of equity securities (unrealized)

and adjusting for sale of equity securities.

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,

Change

2017

2018

RMB'000

RMB'000

Net income attributable to Noah shareholders

424,950

5.6%

Adjustment for share-based compensation related to:

Share options

25,153

21,934

(12.8%)

Restricted shares

14,560

21,008

44.3%

Less: Gains (loss) from fair value changes of equity

securities (unrealized)

-

(14,275)

N.A

Add: Gains (loss) from sales of equity securities

-

3,338

N.A

Non-GAAP net income attributable to Noah

shareholders*

463,751

508,505

9.7%

Net marginattributable to Noah shareholders

29.9%

27.5%

Non-GAAP net margin attributable to Noah

shareholders*

32.6%

31.2%

Net income attributable to Noah shareholders per ADS,

diluted

7.04

7.37

4.7%

Non-GAAP net income attributable to Noah shareholders

per ADS,diluted*

7.70

8.37

8.7%

* The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments.

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