Noah Holdings Limited Announces Unaudited Preliminary Financial Results for the Fourth Quarter And Full Year 2018

SHANGHAI,March 13,2019 -- 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 itsunaudited preliminary[1] financial results for the fourth quarter of 2018 and the full year ended December 31,2018.

FOURTH QUARTER 2018 FINANCIAL HIGHLIGHTS

Net revenues for the fourth quarter of 2018 were RMB822.1 million (US$119.6 million),a 13.8% increase from the corresponding period in 2017.

(RMB millions,

except percentages)

Q4 2017

Q4 2018

YoY Change

Wealth management

524.8

578.5

10.2%

Asset management

166.8

160.2

(3.9%)

Other financial services

30.5

83.4

173.1%

Total net revenues

722.1

822.1

13.8%

Income from operations for the fourth quarter of 2018 was RMB159.7 million (US$23.2 million),a 17.8% increase from the corresponding period in 2017.

(RMB millions,

except percentages)

Q4 2017

Q4 2018

YoY Change

Wealth management

79.7

118.4

48.6%

Asset management

76.9

41.3

(46.3%)

Other financial services

(20.9)

0.0

N.A.

Total income from operations

135.7

159.7

17.8%

Net income attributable to Noah shareholders for the fourth quarter of 2018 was RMB155.6 million (US$22.6 million),a 1.7% increase from the corresponding period in 2017.

Non-GAAP[2] net income attributable to Noah shareholders for the fourth quarter of 2018 was RMB223.2 million (US$32.5 million),a 29.2% increase from the corresponding period in 2017.

[1] As of the date of this press release,weare still in the process of reviewing the financial results of the funds of funds we manage and invest in as the general partner or manager. Any changes in the fair value of those investments could affect the income from equity in affiliates,net income,net income attributable to Noah shareholders,income per ADS andthe balance of investments in affiliates in our consolidated financial statements. While not included in the unaudited preliminary fourth quarter 2018 financial results in this press release,we will include any such fair value adjustments in the audited consolidated financial statements in our 2018 Form 20-F and will make a subsequent announcement when our review concludes,as appropriate.

[2]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,net of relevant tax impact.See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

FULL YEAR 2018 FINANCIAL HIGHLIGHTS

Net revenues in the full year 2018 were RMB3,289.6 million (US$478.5 million),a 16.4% increase from the full year 2017.

(RMB millions,

except percentages)

FY 2017

FY 2018

YoY Change

Wealth management

2,126.3

2,306.0

8.5%

Asset management

588.0

748.5

27.3%

Other financial services

112.6

235.1

108.8%

Total net revenues

2,826.9

3,289.6

16.4%

Income from operations in the full year 2018 was RMB926.5 million (US$134.8 million),a 19.2% increase from the full year 2017.

(RMB millions,

except percentages)

FY 2017

FY 2018

YoY Change

Wealth management

580.9

607.2

4.5%

Asset management

302.9

353.2

16.6%

Other financial services

(106.8)

(33.9)

68.3%

Total income from operations

777.0

926.5

19.2%

Net income attributable to Noah shareholders in the full year 2018 was RMB811.3 million (US$118.0 million),a 6.3% increase from the full year 2017.

Non-GAAP net income attributable to Noah shareholders in the full year 2018 was RMB1,010.8 million (US$147.0 million),a 20.7% increase from the full year 2017.

FOURTH QUARTER AND FULL YEAR 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 December 31,2018 was 260,285,a 39.3% increase from December 31,2017.

Total number of active clients[3] during the fourth quarter of 2018 was 4,717,a 24.8% decrease from the fourth quarter of 2017,due to lower transaction value,especially that of secondary market equity products. Total number of active clients during the full year 2018 was 13,628,a 7.1% increase from the full year 2017.

Aggregate value of financial products distributed during the fourth quarter of 2018 was RMB25.2 billion (US$3.7 billion),a 10.7% decrease from the fourth quarter of 2017.

[3] "Active clients" for our wealth management business refers to registered clients who purchased financial products provided or distributed by Noah during a given period.

Product type

Three months ended December 31,

2017

2018

(RMB in billions,except percentages)

Fixed income

15.3

54.5%

20.2

80.3%

Private equity

7.4

26.1%

3.0

11.9%

Secondary market equity

5.4

19.2%

1.5

5.7%

Other products

0.1

0.2%

0.5

2.1%

All products

28.2

100.0%

25.2

100.0%

Aggregate value of financial products distributed during the full year 2018 was RMB110.0 billion (US$16.0 billion),a 6.3% decrease from the full year 2017.

Product type

Twelve months ended December 31,except percentages)

Fixed income

71.7

61.1%

75.5

68.6%

Private equity

34.3

29.2%

18.9

17.1%

Secondary market equity

10.8

9.2%

13.6

12.4%

Other products

0.6

0.5%

2.0

1.9%

All products

117.4

100.0%

110.0

100.0%

Average transaction value per active client[4]for the fourth quarter of 2018 was RMB5.3 million (US$0.8 million),an 18.8% increase from the corresponding period in 2017. Average transaction value per active client for the full year 2018 was RMB8.1 million (US$1.2 million),a 12.5% decrease from the full year 2017.

Coverage network included 313 service centers covering 83 cities as of December 31,2018,up from 287 service centers covering 83 cities as of September 30,and 237 service centers covering 79 cities as of December 31,2017.

Number of relationship managers was 1,583 as of December 31,a 1.5% increase from September 30,2018 and an 18.6% increase from December 31,2017.

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 December 31,2018 were RMB169.2 billion (US$24.6 billion),a 3.1% increase from September 30,2018 and a 14.1% increase from December 31,2017.

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

Investment type

As of September

30,2018

Asset

Growth

Asset

Expiration/

Redemption

As of December

31,2018

(RMB billions,except percentages)

Private equity

96.9

59.0%

3.4

0.1

100.2

59.2%

Credit

40.3

24.6%

4.5

5.4

39.4

23.3%

Real estate

16.6

10.1%

0.5

0.4

16.7

9.9%

Secondary market equity[5]

4.9

3.0%

1.4

0.1

6.2

3.6%

Other investments

5.4

3.3%

1.3

-

6.7

4.0%

All Investments

164.1

100.0%

11.1

6.0

169.2

100.0%

Investment type

As of December

31,2017

Asset

Growth

Asset

Expiration/

Redemption

As of December

31,except percentages)

Private equity

86.9

58.6%

15.7

2.4

100.2

59.2%

Credit

40.0

27.0%

27.4

28.0

39.4

23.3%

Real estate

11.6

7.8%

11.8

6.7

16.7

9.9%

Secondary market equity

6.2

4.2%

3.7

3.7

6.2

3.6%

Other investments

3.6

2.5%

3.2

0.1

6.7

4.0%

All Investments

148.3

100.0%

61.8

40.9

169.2

100.0%

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

Other Financial Services Business

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

Ms. Jingbo Wang,Chairlady and CEO of Noah,said,"We are pleased with our 2018 full year results,and we have met the guidance we provided to the market. We have been upgrading our business model over the past few years,which we believe will make us less sensitive to economic cycles and be able to maintain sustainable growth in both revenues and net income."

FOURTH QUARTER 2018 FINANCIAL RESULTS

Net Revenues

Net revenuesfor the fourth quarter of 2018 were RMB822.1 million (US$119.6 million),a 13.8% increase from the corresponding period in 2017,primarily driven by increased recurring service fees and other service fees.

Wealth Management Business

- Net revenues from one-time commissions for the fourth quarter of 2018 were RMB240.9 million (US$35.0 million),which was substantially the same as the corresponding period in 2017.

- Net revenues from recurring service fees for the fourth quarter of 2018 were RMB297.9 million (US$43.3 million),a 17.8% 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 fourth quarter of 2018 were RMB0.1 million(US$21.2 thousand),compared with RMB10.6 million in the corresponding period of 2017. The decrease was primarily due to less performance-based income generated from secondary market equity products.

- Net revenues from other service fees for the fourth quarter of 2018 were RMB39.6 million (US$5.8million),a 95.5% increase from the corresponding period in 2017,primarily due to the growth of value-added financial services within the wealth management segment,such as investor education and trust services.

Asset Management Business

- Net revenues from recurring service fees for the fourth quarter of 2018 were RMB147.9 million (US$21.5 million),a 5.0% 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 fourth quarter of 2018 were RMB10.8 million (US$1.6 million),compared with RMB19.1 million in the corresponding period of 2017,primarily due to a decrease in performance-based income from secondary market equity products.

Other Financial Service Business

- Net revenues for the fourth quarter of 2018 were RMB83.4 million (US$12.1 million),a 173.1% increase from the corresponding period in 2017. The increase was primarily due to the growth of the Company's lending business.

Operating costs and expenses

Operatingcosts andexpensesfor the fourth quarter of 2018 were RMB662.4 million (US$96.3 million),a 12.9% increase from the corresponding period in 2017. Operating costs and expenses primarily consisted of compensation and benefits of RMB428.1 million (US$62.3 million),selling expenses of RMB104.8 million (US$15.2 million),general and administrative expenses of RMB94.9 million (US$13.8 million) and other operating expenses of RMB51.7 million (US$7.5 million).

Operating costs and expenses for the wealth management business for the fourth quarter of 2018 were RMB460.1 million (US$66.9 million),a 3.4% increase from the corresponding period in 2017,primarily due to an increase in compensation and benefits and partially offset by a decrease in selling expense.

Operating costs and expenses for the asset management business for the fourth quarter of 2018 were RMB118.9 million (US$17.3 million),a 32.2% increase from the corresponding period in 2017,primarily due to an increase in compensation and benefits as well as selling expenses for this business.

Operating costs and expenses for the other financial services business for the fourth quarter of 2018 were RMB83.4 million (US$12.1 million),a 62.2% increase from the corresponding period in 2017 due to the expansion of the Company's lending business.

Operating Margin

Operating margin for the fourth quarter of 2018 was 19.4%,an increase from 18.8% for the corresponding period in 2017. The increase was mainly due to improved cost control.

Operating margin for the wealth management business for the fourth quarter of 2018 was 20.5%,compared with 15.2% for the corresponding period in 2017.

Operating margin for the asset management business for the fourth quarter of 2018 was 25.8%,compared with 46.1% for the corresponding period in 2017.

Income from operations for the other financial services business for the fourth quarter of 2018 was break-even,improving from a loss of RMB20.9 million for the corresponding period in 2017.

Investment Income

Investment income for the fourth quarter of 2018 was RMB6.5 million (US$1.0 million),compared with RMB35.0 million in the corresponding period in 2017. The decrease was primarily due to changes in fair value of the Company's investments in 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 fourth quarter of 2018 were RMB29.2 million (US$4.2 million),a 16.8% decrease from the corresponding period in 2017. The decrease was primarily due to a lower effective tax rate.

Income from Equity in Affiliates

Income from equity in affiliatesfor the fourth quarter of 2018 was RMB2.5 million (US$0.4 million),compared with RMB17.4 million in the corresponding period in 2017. We are still reviewing the financial results of the funds of funds we manage and invest in as the general partner. Any potential changes in fair value of those investments could affect the income from equity in affiliates.

Net Income

Net Income

- Net income for the fourth quarter of 2018 was RMB151.4 million (US$22.0 million),a 3.5% decrease from the corresponding period in 2017.

- Net margin for the fourth quarter of 2018 was 18.4%,down from 21.7% for the corresponding period in 2017.

- Net income attributable to Noah shareholders for the fourth quarter of 2018 was RMB155.6 million (US$22.6 million),a 1.7% increase from the corresponding period in 2017.

- Net margin attributable to Noah shareholders for the fourth quarter of 2018 was 18.9%,down from 21.2% for the corresponding period in 2017.

- Net income attributable to Noah shareholders per basic and diluted ADS for the fourth quarter of 2018 was RMB2.61 (US$0.38) and RMB2.54 (US$0.37),respectively,down from RMB2.69 and RMB2.60 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 fourth quarter of 2018 was RMB223.2 million (US$32.5 million),a 29.2% increase from the corresponding period in 2017.

- Non-GAAP net margin attributable to Noah shareholders for the fourth quarter of 2018 was 27.1%,up from 23.9% for the corresponding period in 2017.

- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the fourth quarter of 2018 was RMB3.64 (US$0.53),up from RMB2.92 for the corresponding period in 2017.

FULL YEAR 2018 FINANCIAL RESULTS

Net Revenues

Net revenuesfor the full year 2018 were RMB3,a 16.4% increase from the full year 2017,primarily due to increases in recurring service fees and other service fees.

Wealth Management Business

- Net revenues from one-time commissions for 2018 were RMB1,018.9 million (US$148.2 million),a 6.7% decrease from 2017,primarily due to a decline in the transaction value of financial products purchased by active clients.

- Net revenues from recurring service fees for 2018 were RMB1,130.0 million (US$164.4 million),a 29.6% increase from 2017. The increase was primarily due to the cumulative effect of financial products with recurring service fees previously distributed by the Company.

- Net revenues from performance-based income for 2018 were RMB44.1 million (US$6.4 million),a 52.3% decrease from 2017,primarily due to a decrease in performance-based income from private equity products.

- Net revenues from other service fees for 2018 were RMB113.0 million (US$16.4 million),representing a 61.6% increase from 2017,primarily due to the growth of value-added financial services within the wealth management segment.

Asset Management Business

- Net revenues from recurring service fees for 2018 were RMB637.8 million (US$92.8 million),a 20.9% increase from 2017. The increase was primarily due to the increase in assets under management by the Company.

- Net revenues from performance-based income for 2018 were RMB98.9 million (US$14.4 million),a 107.5% increase from the year 2017,primarily due to an increase in performance-based income from real estate and secondary market equity funds.

Other Financial Services Business

- Net revenues for the full year 2018 were RMB235.1 million (US$34.2million),a 108.8% increase from 2017. The increase was primarily due to the growth of the Company's lending services business.

Operating costs and expenses

Operatingcosts andexpensesfor the full year 2018 were RMB2,363.1 million (US$343.7 million),a 15.3% increase from the full year 2017. Operating costs and expenses for the full year 2018 primarily consisted of compensation and benefits of RMB1,564.2 million (US$227.5 million),selling expenses of RMB412.7 million (US$60.0 million),general and administrative expenses of RMB279.4 million (US$40.6 million) and other operating expenses of RMB169.4 million (US$24.6 million).

Operating costs and expenses for the wealth management business for 2018 were RMB1,698.8 million (US$247.1 million),a 9.9% increase from 2017,primarily due to an increase in compensation and benefits as well as selling expenses.

Operating costs and expenses for the asset management business for 2018 were RMB395.3 million (US$57.5 million),a 38.6% increase from 2017,primarily due to an increase in compensation and benefits and a decrease in government subsidies.

Operating costs and expenses for the other financial services business for 2018 were RMB268.9 million (US$39.1 million),a 22.6% increase from 2017 due to the expansion of the Company's lending business.

Operating Margin

Operating margin for the full year 2018 was 28.2%,compared to27.5% for the full year 2017,mainly due to increased operating efficiency and reduced losses for the other financial services business.

Operating margin for the wealth management business for 2018 was 26.3%,compared to 27.3% for 2017.

Operating margin for the asset management business for 2018 was 47.2%,compared to 51.5% for 2017.

Operating loss for other financial services business for 2018 was RMB33.9 million (US$4.9 million),compared to a loss of RMB106.8 million for 2017.

Investment Income

Investment income for the full year 2018 was RMB48.6 million (US$7.0million),a 27.8% decrease from the corresponding period in 2017. The decrease was primarily due to 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 full year 2018 were RMB222.3 million (US$32.3 million),an 11.7% increase from the full year 2017,primarily due to an increase in taxable income offset in part by a lower effective tax rate.

Net Income

Net Income

- Net income for the full year 2018 was RMB803.7 million (US$116.9 million),a 5.5% increase from the full year 2017.

- Net margin for the full year 2018 was 24.4%,compared to 27.0% for the full year 2017.

- Net income attributable to Noah shareholders for the full year 2018 was RMB811.3 million (US$118.0 million),a 6.3% increase from the full year 2017.

- Net margin attributable to Noah shareholders for the full year 2018 was 24.7%,down from 27.0% for the corresponding period in 2017.

- Net income attributable to Noah shareholders per basic and diluted ADS for the full year 2018 was RMB13.85 (US$2.01) and RMB13.33 (US$1.94),as compared to RMB13.49 and RMB12.95,for the full year 2017.

Non-GAAP Net Income Attributable to Noah Shareholders

- Non-GAAP net income attributable to Noah shareholders for the full year 2018 was RMB1,a 20.7% increase from the full year 2017.

- Non-GAAP net margin attributable to Noah shareholders for the full year 2018 was 30.7%,compared to 29.6% for the full year 2017.

- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the full year 2018 was RMB16.58 (US$2.41),compared to RMB14.18 for the full year 2017.

Balance Sheet and Cash Flow

As of December 31,the Company had RMB2,706.6 million (US$393.7 million)in cash and cash equivalents,compared with RMB2,360.1 million as of September 30,2018 and RMB1,906.8 million as of December 31,2017.

Net cash inflow from the Company's operating activities during the fourth quarter of 2018 was RMB511.3 million (US$74.4 million). Net cash inflow from the Company's operating activities during the full year 2018 was RMB1,029.4 million (US$149.7 million),compared to RMB628.4 million during the full year 2017,driven by profit earned from business operations and enhanced collection of factoring receivables.

Net cash outflow from the Company's investing activities during the fourth quarter of 2018 was RMB188.4 million (US$27.4 million). Net cash outflow from the Company's investing activities during the full year 2018 was RMB395.7 million (US$57.5 million),compared to RMB833.9 million during the full year 2017. In 2018,this primarily consisted of net cash outflow for purchasing various investments and properties and equipment in the amount of RMB544.8 million,partially offset by cash inflow from net of loan disbursement of RMB149.1 million.

Net cash inflow from the Company's financing activities was RMB7.5 million (US$1.1 million) in the fourth quarter of 2018. Net cash inflow from the Company's financing activities during the full year 2018 was RMB109.8 million (US$16.0 million),compared to RMB791.8 million cash outflow during the full year 2017. The cash inflow for 2018 was mainly due to the proceeds related to share-based compensation and contribution of non-controlling interest.

Note to Financial Information

As of the date of this press release,we will include any such fair value adjustments in the audited consolidated financial statements in our 2018 Form 20-F and will make a subsequent announcement when our review conclude,as appropriate.

OTHER COMPANY DEVELOPMENTS

The Company also announced today that Mr. Yi Zhao has been appointed as Group President,succeeding Mr. Kenny Lam who has decided to depart Noah for new professional pursuits.

Mr. Zhao has more than twenty years of experience in the financial industry. He has been leading Noah's wealth management business since 2013 and implemented a serious of core strategies,which led to robust growth in both transaction value and profitability for the segment. During his tenure as the head of our wealth management segment,he enhanced the management of our sales network and created an elite relationship managers program. Prior to joining Noah,Mr. Zhao worked for several insurance companies,including Ping An Insurance,AXA-Minmetals Assurance,and Great Wall Life Insurance. Mr. Zhao received his Bachelor's Degree from Shenyang Sports University.

Ms. Jingbo Wang,commented,"Mr. Zhao is an experienced veteran in the financial services industry and has worked with the Company for seven years. Under his leadership,our core wealth management business realized milestone achievements,which solidified our leading position in the industry. We are confident that in his new role he will continue to deliver meaningful impact and further strengthen Noah's competitive advantages. Meanwhile,we want to extend our warm appreciation to Kenny for his services during the last four years in planning and promoting key strategic initiatives of Noah. We respect his decision to return to Hong Kong to pursue new professional endeavors and sincerely wish him the best."

2019 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2019 will be in the range of RMB1.13 billion to RMB1.18 billion,an increase of 11.9% to 16.8% compared with the full year 2018. 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 fourth quarter and full year 2018 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details

Date/Time:

Tuesday,March 12,2019 at 8:00 p.m.,U.S. Eastern Time

Wednesday,2019 at 8:00 a.m.,Hong Kong Time

Dial in details:

-United States Toll Free

+1-888-317-6003

-Mainland China Toll Free

4001-206-115

-Hong Kong Toll Free

800-963-976

-International

+1-412-317-6061

Conference Title:

Noah Holdings Fourth Quarter and Full Year 2018 Earnings Call

Participant Entry No.:

1611659

Participants will need to dial in 10-15 minutes early and use this Entry Number in order to join the conference.

A telephone replay will be available starting one hour after the end of the conference call until March 19,2019 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10129228.

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,after including any current and deferred income tax expense impact of those adjustments. 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 full year 2018,Noah distributed RMB110.0 billion (US$16.0 billion) of financial products. Through Gopher Asset Management,Noah had assets under management of RMB169.2 billion (US$24.6 billion) as of December 31,2018.

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 1,583 relationship managers across 313 service centers in 83 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 260,285 registered clients as of December 31,2018. 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 fourth quarter of 2018 and the full year ended December 31,2018 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 RMB6.8755 to US$1.00,the effective noon buying rate for December 31,2018 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 2019 and quotations from management in this announcement,as well as Noah's strategic and operational plans,contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission,in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about Noah's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: its goals and strategies; its future business development,financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes and manages; 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.

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)

As of

September 30,

2018

December 31,

2018

RMB'000

RMB'000

USD'000

Assets

Current assets:

Cash and cash equivalents

2,360,111

2,704,091

393,294

Restricted cash

-

2,500

364

Short-term investments (including short-term

investments measured at fair value of

RMB162,153thousands and RMB438,077

thousands,as of September 30,2018 and

December 31,respectively)

213,153

450,477

65,519

Accounts receivable and contract assets,net of

allowance for doubtful accounts of nil as of

September 30,2018 and December 31,2018

255,051

282,431

41,078

Loans receivable,net

688,890

620,219

90,207

Amounts due from related parties

625,948

572,201

83,223

Loans receivable from factoring business

23,943

18,893

2,748

Other current assets

455,958

453,269

65,925

Total current assets

4,623,054

5,104,081

742,358

Long-term investments (including long-term

investments measured at fair value of RMB860,828

thousands and RMB609,151 thousands,as of

September 30,

respectively)

895,328

1,025,065

149,090

Investment in affiliates

1,314,862

1,375,110

200,001

Property and equipment,net

295,785

346,653

50,419

Non-current deferred tax assets

97,205

113,384

16,491

Other non-current assets

23,093

49,971

7,266

Total Assets

7,249,327

8,014,264

1,165,625

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses

565,346

671,200

97,622

Income tax payable

67,170

54,296

7,897

Amounts due to related parties

1,691

-

-

Deferred revenues

172,171

142,925

20,788

Other current liabilities

420,508

722,652

105,105

Total current liabilities

1,226,886

1,591,073

231,412

Non-current deferred tax liabilities

51,256

67,092

9,758

Convertible notes

228,121

145,004

21,090

Other non-current liabilities

75,824

35,718

5,195

Total Liabilities

1,582,087

1,838,887

267,455

Equity

5,667,240

6,175,377

898,170

Total Liabilities and Equity

7,625

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)

Three months ended

December 31,

December 31,

Change

2017

2018

2018

Revenues:

RMB'000

RMB'000

USD'000

Revenues from others[1]:

One-time commissions

130,462

173,814

25,280

33.2%

Recurring service fees

170,738

142,435

20,716

(16.6%)

Performance-based income

9,006

147

21

(98.4%)

Other service fees

57,023

126,212

18,357

121.3%

Total revenues from others

367,229

442,608

64,374

20.5%

Revenues from funds Gopher manages[1]:

One-time commissions

113,572

69,098

10,050

(39.2%)

Recurring service fees

225,674

305,937

44,497

35.6%

Performance-based income

20,833

10,861

1,580

(47.9%)

Total revenues from funds Gopher manages

360,079

385,896

56,127

7.2%

Total revenues

727,308

828,504

120,501

13.9%

Less: business taxes and related surcharges

(5,194)

(6,401)

(931)

23.2%

Net revenues

722,114

822,103

119,570

13.8%

Operating costs and expenses:

Compensation and benefits

Relationship manager compensation

(167,363)

(162,638)

(23,655)

(2.8%)

Performance fee compensation

(11,291)

(3,800)

(553)

(66.3%)

Other compensations

(200,982)

(261,677)

(38,059)

30.2%

Total compensation and benefits

(379,636)

(428,115)

(62,267)

12.8%

Selling expenses

(111,516)

(104,765)

(15,237)

(6.1%)

General and administrative expenses

(79,271)

(94,938)

(13,808)

19.8%

Other operating expenses

(41,274)

(51,710)

(7,521)

25.3%

Government subsidies

25,199

17,145

2,494

(32.0%)

Total operating costs and expenses

(586,498)

(662,383)

(96,339)

12.9%

Income from operations

135,616

159,720

23,231

17.8%

Other income:

Interest income

12,910

14,104

2,051

9.2%

Interest expense

(9,593)

(1,002)

(146)

(89.6%)

Investment income (loss),net

34,983

6,547

952

(81.3%)

Other income (expense)

640

(1,326)

(193)

(307.2%)

Total other income

38,940

18,323

2,664

(52.9%)

Income before taxes and income from

equity in affiliates

174,556

178,043

25,895

2.0%

Income tax expense

(35,081)

(29,203)

(4,247)

(16.8%)

Income from equity in affiliates

17,390

2,526

367

(85.5%)

Net income

156,865

151,366

22,015

(3.5%)

Less: net loss attributable to non-

controlling Interests

(2,339)

(4,273)

(621)

82.7%

Less: effect on retained earnings caused

by termination of redeemable non-

controlling interest of a subsidiary

6,201

-

-

N.A

Net income attributable to Noah

shareholders

153,003

155,639

22,636

1.7%

Income per ADS,basic

2.69

2.61

0.38

(3.0%)

Income per ADS,diluted

2.60

2.54

0.37

(2.3%)

Margin analysis:

Operating margin

18.8%

19.4%

19.4%

Net margin

21.7%

18.4%

18.4%

Weighted average ADS equivalent[2]:

Basic

56,782,875

59,676,698

59,698

Diluted

61,147,734

61,590,911

61,911

ADS equivalent outstanding at end of

period

56,902,300

60,129,547

60,547

[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)

Twelve months ended

December 31,

Change

2017

2018

2018

Revenues:

RMB'000

RMB'000

USD'000

Revenues from others[1]:

One-time commissions

541,025

733,009

106,612

35.5%

Recurring service fees

605,092

593,856

86,373

(1.9%)

Performance-based income

86,494

43,101

6,269

(50.2%)

Other service fees

195,073

361,886

52,634

85.5%

Total revenues from others

1,427,684

1,731,852

251,888

21.3%

Revenues from funds Gopher manages[1]:

One-time commissions

561,059

294,984

42,904

(47.4%)

Recurring service fees

802,761

1,182,693

172,016

47.3%

Performance-based income

54,502

100,533

14,622

84.5%

Total revenues from funds Gopher manages

1,418,322

1,578,210

229,542

11.3%

Total revenues

2,846,006

3,310,062

481,430

16.3%

Less: business taxes and related surcharges

(19,098)

(20,454)

(2,975)

7.1%

Net revenues

2,826,908

3,289,608

478,455

16.4%

Operating costs and expenses:

Compensation and benefits

Relationship manager compensation

(616,064)

(633,599)

(92,153)

2.8%

Performance fee compensation

(11,291)

(21,175)

(3,080)

87.5%

Other compensations

(780,017)

(909,418)

(132,269)

16.6%

Total compensation and benefits

(1,407,372)

(1,564,192)

(227,502)

11.1%

Selling expenses

(320,462)

(412,720)

(60,028)

28.8%

General and administrative expenses

(248,878)

(279,387)

(40,635)

12.3%

Other operating expenses

(147,318)

(169,368)

(24,634)

15.0%

Government subsidies

74,156

62,583

9,102

(15.6%)

Total operating costs and expenses

(2,049,874)

(2,363,084)

(343,697)

15.3%

Income from operations

777,034

926,524

134,758

19.2%

Other income:

Interest income

45,020

69,841

10,158

55.1%

Interest expense

(24,128)

(10,028)

(1,459)

(58.4%)

Investment income (loss),net

67,343

48,616

7,070

(27.8%)

Other income (expense)

3,542

(23,356)

(3,397)

(759.4%)

Total other income

91,777

85,073

12,372

(7.3%)

Income before taxes and income from

equity in affiliates

868,811

1,011,597

147,130

16.4%

Income tax expense

(199,085)

(222,320)

(32,335)

11.7%

Income from equity in affiliates

92,136

14,469

2,104

(84.3%)

Net income

761,862

803,746

116,899

5.5%

Less: net loss attributable to non-

controlling Interests

Less: income attributable to redeemable

non-controlling interest of Subsidiary

(13,745)

6,483

(7,551)

-

(1,098)

-

(45.1%)

N.A

Less: effect on retained earnings caused

by termination of redeemable non-

controlling interest of a subsidiary

6,201

-

-

N.A

Net income attributable to Noah

shareholders

762,923

811,297

117,997

6.3%

Income per ADS,basic

13.49

13.85

2.01

2.7%

Income per ADS,diluted

12.95

13.33

1.94

2.9%

Margin analysis:

Operating margin

27.5%

28.2%

28.2%

Net margin

27.0%

24.4%

24.4%

Weighted average ADS equivalent[2]:

Basic

56,551,274

58,576,802

58,802

Diluted

60,467,645

61,421,080

61,080

ADS equivalent outstanding at end of

period

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

December 31,

Change

2017

2018

2018

RMB'000

RMB'000

USD'000

Net income

156,015

(3.5%)

Other comprehensive income,net of tax:

Change in foreign currency translation

adjustments

(13,047)

7,357

1,070

(156.4%)

Fair value fluctuation of available-for-s

ale Investment,net of tax of nil

243,655

(47)

(7)

(100.0%)

Comprehensive income

387,473

158,676

23,078

(59.0%)

Less: Comprehensive loss attributable to

non-controlling interests

(2,342)

(4,260)

(620)

81.9%

Less: effect on retained earnings caused

by termination of redeemable non-

controlling interest of a subsidiary

6,201

-

-

N.A

Comprehensive income attributable to

Noah shareholders

383,614

162,936

23,698

(57.5%)

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

Twelve months ended

December 31,

Change

2017

2018

2018

RMB'000

RMB'000

USD'000

Net income

761,899

5.5%

Other comprehensive income,net of tax:

Change in foreign currency translation

adjustments

(33,876)

75,752

11,018

(323.6%)

Fair value fluctuation of available-for-

sale investment,net of tax of nil

252,706

(1,429)

(208)

(100.6%)

Comprehensive income

980,692

878,069

127,709

(10.5%)

Less: Comprehensive loss attributable to

non-controlling interests

(13,776)

(7,638)

(1,111)

(44.6%)

Less: Loss attributable to redeemable non-

controlling interest of Subsidiary

6,483

-

-

N.A

Less: effect on retained earnings caused

by termination of redeemable non-c

ontrolling interest of a subsidiary

6,201

-

-

N.A

Comprehensive income attributable to

Noah shareholders

981,784

885,707

128,820

(9.8%)

Noah Holdings Limited

Supplemental Information

(unaudited)

As of

Change

December 31,

2017

December 31,

2018

Number of registered clients

186,918

260,285

39.3%

Number of relationship managers

1,335

1,583

18.6%

Number of cities under coverage

79

83

5.1%

Three months ended

Change

December 31,

2018

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

percentages)

Number of active clients

6,276

4,717

(24.8%)

Transaction value:

Fixed income products

15,367

20,224

31.6%

Private equity products

7,360

2,999

(59.3%)

Secondary market equity products

5,412

1,426

(73.6%)

Other products

48

521

981.4%

Total transaction value

28,188

25,170

(10.7%)

Average transaction value per client

4.49

5.34

18.8%

Twelve months ended

Change

December 31,except number of active clients and

percentages)

Number of active clients

12,720

13,628

7.1%

Transaction value:

Fixed income products

71,759

75,498

5.2%

Private equity products

34,261

18,864

(44.9%)

Secondary market equity products

10,754

13,605

26.5%

Other products

598

2,062

245.0%

Total transaction value

117,371

110,030

(6.3%)

Average transaction value per client

9.23

8.07

(12.5%)

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended December 31,2018

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

173,415

399

-

173,814

Recurring service fees

139,996

2,439

-

142,435

Performance-based income

147

-

-

147

Other service fees

39,831

1,028

85,353

126,212

Total revenues from others

353,389

3,866

85,353

442,608

Revenues from funds Gopher

manages:

One-time commissions

69,018

80

-

69,098

Recurring service fees

159,812

146,125

-

305,937

Performance-based income

-

10,861

-

10,861

Total revenues from funds Gopher

manages

228,830

157,066

-

385,896

Total revenues

582,219

160,932

85,353

828,504

Less: business taxes and related

surcharges

(3,751)

(730)

(1,920)

(6,401)

Net revenues

578,468

160,202

83,433

822,103

Operating costs and expenses:

Compensation and benefits

Relationship manager

compensation

(162,215)

-

(423)

(162,638)

Performance fee compensation

-

(3,800)

-

(3,800)

Other compensation

(152,045)

(80,332)

(29,300)

(261,677)

Total compensation and benefits

(314,260)

(84,132)

(29,723)

(428,115)

Selling expenses

(91,429)

(7,278)

(6,058)

(104,765)

General and administrative expenses

(52,444)

(27,838)

(14,656)

(94,938)

Other operating expenses

(15,241)

(1,722)

(34,747)

(51,710)

Government subsidies

13,300

2,090

1,755

17,145

Total operating costs and expenses

(460,074)

(118,880)

(83,429)

(662,383)

Income from operations

118,394

41,322

4

159,720

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended December 31,2017

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

130,190

272

-

130,462

Recurring service fees

165,156

5,582

-

170,738

Performance-based income

8,854

152

-

9,006

Other service fees

20,397

5,643

30,983

57,023

Total revenues from others

324,597

11,649

30,983

367,229

Revenues from funds Gopher

manages:

One-time commissions

112,656

916

-

113,572

Recurring service fees

89,647

136,027

-

225,674

Performance-based income

1,826

19,007

-

20,833

Total revenues from funds Gopher

manages

204,129

155,950

-

360,079

Total revenues

528,726

167,599

30,983

727,308

Less: business taxes and related

surcharges

(3,911)

(840)

(443)

(5,194)

Net revenues

524,815

166,759

30,540

722,114

Operating costs and expenses:

Compensation and benefits

Relationship manager

compensation

(166,699)

-

(664)

(167,363)

Performance Fee Compensation

-

(11,291)

-

(11,291)

Other compensation

(117,186)

(53,406)

(30,390)

(200,982)

Total compensation and benefits

(283,885)

(64,697)

(31,054)

(379,636)

Selling expenses

(104,538)

(1,965)

(5,013)

(111,516)

General and administrative expenses

(54,695)

(22,379)

(2,197)

(79,271)

Other operating expenses

(22,800)

(3,992)

(14,482)

(41,274)

Government subsidies

20,768

3,131

1,300

25,199

Total operating costs and expenses

(445,150)

(89,902)

(51,446)

(586,498)

Income (loss) from operations

79,665

76,857

(20,906)

135,616

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Twelve months ended December 31,2018

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

731,424

1,585

-

733,009

Recurring service fees

571,782

22,074

-

593,856

Performance-based income

42,570

531

-

43,101

Other service fees

113,570

8,225

240,091

361,886

Total revenues from others

1,459,346

32,415

240,091

1,852

Revenues from funds Gopher

manages:

One-time commissions

292,899

2,085

-

294,984

Recurring service fees

564,228

618,465

-

1,693

Performance-based income

1,739

98,794

-

100,533

Total revenues from funds Gopher

manages

858,866

719,344

-

1,210

Total revenues

2,318,212

751,759

240,091

3,062

Less: business taxes and related

surcharges

(12,206)

(3,228)

(5,020)

(20,454)

Net revenues

2,306,006

748,531

235,071

3,608

Operating costs and expenses:

Compensation and benefits

Relationship manager

compensation

(631,234)

-

(2,365)

(633,599)

Performance Fee Compensation

-

(21,175)

-

(21,175)

Other compensation

(534,516)

(251,923)

(122,979)

(909,418)

Total compensation and benefits

(1,750)

(273,098)

(125,344)

(1,192)

Selling expenses

(367,589)

(22,200)

(22,931)

(412,720)

General and administrative expenses

(164,802)

(80,873)

(33,712)

(279,387)

Other operating expenses

(54,291)

(25,310)

(89,767)

(169,368)

Government subsidies

53,620

6,148

2,815

62,583

Total operating costs and expenses

(1,698,812)

(395,333)

(268,939)

(2,084)

Income (loss) from operations

607,194

353,198

(33,868)

926,524

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Twelve months ended December 31,2017

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

539,938

1,087

-

541,025

Recurring service fees

577,544

27,548

-

605,092

Performance-based income

84,105

2,389

-

86,494

Other service fees

70,390

10,712

113,971

195,073

Total revenues from others

1,271,977

41,736

113,971

1,684

Revenues from funds Gopher

manages:

One-time commissions

560,047

1,012

-

561,059

Recurring service fees

300,352

502,409

-

802,761

Performance-based income

9,019

45,483

-

54,502

Total revenues from funds Gopher

manages

869,418

548,904

-

1,322

Total revenues

2,141,395

590,640

113,971

2,006

Less: business taxes and related

surcharges

(15,128)

(2,599)

(1,371)

(19,098)

Net revenues

2,126,267

588,041

112,600

2,908

Operating costs and expenses:

Compensation and benefits

Relationship manager

compensation

(611,550)

(4)

(4,510)

(616,064)

Performance Fee Compensation

-

(11,291)

Other compensation

(463,370)

(190,032)

(126,615)

(780,017)

Total compensation and benefits

(1,074,920)

(201,327)

(131,125)

(1,372)

Selling expenses

(295,798)

(9,271)

(15,393)

(320,462)

General and administrative expenses

(146,122)

(70,618)

(32,138)

(248,878)

Other operating expenses

(77,490)

(27,773)

(42,055)

(147,318)

Government subsidies

49,008

23,848

1,300

74,156

Total operating costs and expenses

(1,545,322)

(285,141)

(219,411)

(2,874)

Income (loss) from operations

580,945

302,900

(106,811)

777,034

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)[6]

Three months ended

December 31,

Change

2017

2018

RMB'000

RMB'000

Net income attributable to Noah

shareholders

153,639

1.7%

Adjustment for share-based

compensation related to:

Share options

10,796

12,862

19.1%

Restricted shares

13,625

21,312

56.4%

Less: loss from fair value

changes of equity securities

(unrealized)

-

(4,596)

N.A

Add: Gains from sales of equity

securities

-

12,011

N.A

Less: Tax effect of adjustments[7]

4,739

(16,730)

N.A

Non-GAAP net income

attributable to Noah shareholders

172,685

223,150

29.2%

Net margin attributable to Noah

shareholders

21.2%

18.9%

Non-GAAP net margin

attributable to Noah shareholders

23.9%

27.1%

Net income attributable to Noah

shareholders per ADS,diluted

2.60

2.54

(2.3%)

Non-GAAP net income

attributable to Noah shareholders

per ADS,diluted

2.92

3.64

24.7%

[6]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,after including any income tax effect

[7]Starting from the fourth quarter of 2018,we include current and deferred income tax expense impact of all non-GAAP adjustments to arrive at a non-GAAP measure. We also revised the comparative period presentation to conform to current period measurement.

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)

Twelve months ended

December 31,

Change

2017

2018

RMB'000

RMB'000

Net income attributable to

Noah shareholders

762,297

6.3%

Adjustment for share-based

compensation related to:

Share options

51,054

45,973

(10.0%)

Restricted shares

42,581

66,790

56.9%

Less: loss from fair value

changes of equity securities

(unrealized)

-

(39,557)

N.A

Add: Gains from sales

of equity securities

-

45,240

N.A

Less: Tax effect of a

djustments

19,185

1,966

(110.2%)

Non-GAAP net income

attributable to Noah

shareholders

837,373

1,010,823

20.7%

Net margin attributable to

Noah shareholders

27.0%

24.7%

Non-GAAP net margin a

ttributable to Noah

shareholders

29.6%

30.7%

Net income attributable to

Noah shareholders per ADS,

diluted

12.95

13.33

2.9%

Non-GAAP net income

attributable to Noah

shareholders per ADS,diluted

14.18

16.58

16.9%

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