Noah Holdings Limited Announces Unaudited Financial Results for the First Quarter of 2021

Author: Noah Holdings Limited / 2023-07-23 22:56 / Source: Noah Holdings Limited

Noah Holdings Limited Announces Unaudited Financial Results for the First Quarter of 2021

SHANGHAI,May 11,2021 -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH),a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors,today announced itsunaudited financial results for the first quarter of 2021.

FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS

Net revenues for the first quarter of 2021 were RMB1,224.7 million (US$186.9 million),a 64.1% increase from the corresponding period in 2020,and a 28.5% increase from the fourth quarter of 2020.

(RMB millions,

except percentages)

Q1 2020

Q1 2021

YoY Change

Wealth management

552.6

946.4

71.3%

Asset management

165.4

270.0

63.2%

Other businesses

28.1

8.3

(70.4%)

Total net revenues

746.1

1,224.7

64.1%

Income from operationsfor the first quarter of 2021 wasRMB502.4 million (US$76.7 million),a 96.0%increasefrom the corresponding period in 2020,and a 49.8% increase from the fourth quarter of 2020.

(RMB millions,

except percentages)

Q1 2020

Q1 2021

YoY Change

Wealth management

166.2

418.1

151.6%

Asset management

93.5

114.5

22.5%

Other businesses

(3.4)

(30.2)

762.9%

Total income from operations

256.3

502.4

96.0%

Net income attributable to Noah shareholders for the first quarter of 2021 was RMB454.1 million (US$69.3 million),an 86.9% increase from the corresponding period in 2020.

Non-GAAP[1]net income attributable to Noah shareholders for the first quarter of 2021 was RMB461.9 million (US$70.5 million),a 79.7% increase from the corresponding period in 2020,and a 76.0% increase from the fourth quarter of 2020.

FIRST QUARTER 2021 OPERATIONAL UPDATES

Wealth Management Business

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

Total number of registered clients as of March 31,2021 was 384,021,a 19.6% increase from March 31,2020,and a 6.5% increase from December 31,2020.

Total number of active clients[2],which excluded mutual fund-only clients during the first quarter of 2021 was 6,299,a 54.6% increase from the first quarter of 2020,and a 19.6% increase from the fourth quarter of 2020. Including mutual fund-only clients,the number of clients who transacted with us during the first quarter of 2021 was 27,846,a 65.4% increase from the first quarter of 2020,and a 42.8% increase from the fourth quarter of 2020.

Aggregate value of investment products distributed during the first quarter of 2021 was RMB27.1 billion (US$4.1 billion),including private equity products that was distributed directly by our asset management segment,representing a 16.8% increase from the first quarter of 2020,primarily due to a 62.5% growth of private equity products and a 23.4% growth of secondary market equity products. The aggregate value increased by 27.1% compared with the fourth quarter of 2020 due to the significant growth of public securities products offered by the Company.

Product type

Three months ended March 31,

2020

2021

(RMB in billions,except percentages)

Public securities products

19.1

82.4%

21.5

79.4%

Private equity products[3]

2.9

12.6%

4.8

17.6%

Credit products

0.2

0.8%

Other products

1.0

4.2%

0.8

3.0%

All products

23.2

100.0%

27.1

100.0%

Coverage network in mainland China covered 82 cities as of March 31,2021,compared with 78 cities as of March 31,2020 and 80 cities as of December 31,2020.

Number of relationship managers was 1,246 as of March 31,a 3.1% increase from March 31,and a 1.2% increase from December 31,2020. The turnover rate of core "elite" relationship managers was 0.3%,compared with 5.1% as of December 31,2020.

Asset Management Business

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

Total assets under management as of March 31,2021 were RMB154.1 billion (US$23.5 billion),a 0.8% increase from December 31,2020 and a 4.7% decrease from March 31,primarily due to the voluntary redemptions of certain credit products.

Investment type

As of

December 31,

2020

Growth

Distribution/

Redemption

As of

March 31,

2021

(RMB billions,except percentages)Private equity117.7

77.1%

4.2

121.9

79.1%Real estate12.7

8.3%

2.0

10.7

7.0%Public securities[4]9.8

6.4%

1.4

0.7

10.5

6.8%Credit[5]5.5

3.6%

0.4

5.1

3.3%Multi-strategies7.1

4.6%

0.1

1.3

5.9

3.8%All Investments152.8

100.0%

5.7

4.4

154.1

100.0%Other BusinessesSince the fourth quarter of 2020,our other businesses segment has been transitioning to "Noah Digital Intelligence",aiming to develop a "turnkey asset management platform" ("TAMP"),to create an additional distribution channel beyond our wealth management,as well as to provide more comprehensive services and investment products.Ms. Jingbo Wang,co-founder and CEO of Noah,said,"In the first quarter of 2021,I am proud to report that our active clients number,including mutual funds,grew 65.4% year-on-year to record a historical high of almost 28,000,which enabled our net revenues to reach RMB1.2 billion,the highest single quarter in our history,a 64.1% increase year-on-year,consists of the strong growth in all revenue streams including one-time commissions,recurring service fees and performance-based income. As a result,non-GAAP net income was RMB461.9 million,also a historical high. Out of the total transaction value of RMB27.1 billion,public securities accounted for RMB21.5 billion,another record high since our listing,showcasing our continued success since the transformation for standardized products and services. In addition,there was only 0.3% turnover rate of our elite relationship managers during the quarter,evidencing the stability of our sales force after the transformation. We will stay client-centric while continuing to invest in human capital development and IT infrastructure to improve our client experience,as well as stay focused on major economic regions in the country where high net worth clients are concentrated."FIRST QUARTER 2021 FINANCIAL RESULTSNet RevenuesNet revenuesfor the first quarter of 2021 were RMB1,primarily driven by increased one-time commissions and performance-based income,partially offset by the decrease in other service fees.Wealth Management Business- Net revenues from one-time commissions for the first quarter of 2021 were RMB293.2 million (US$44.8 million),a 39.2% increase from the corresponding period in 2020,primarily due to a 23.4% increase in transaction value of secondary market equity investment products that we distributed.- Net revenues from recurring service fees for the first quarter of 2021 were RMB313.7 million (US$47.9 million),an 8.5% increase from the corresponding period in 2020. The increase was primarily due to the cumulative effect of public securities investment products with recurring service fees previously distributed.- Net revenues from performance-based income for the first quarter of 2021 were RMB325.6 million (US$49.7 million),compared with RMB15.1 million in the corresponding period of 2020,representing a 20.6 times increase. The increase was primarily due to more performance-based income realized from public securities.- Net revenues from other service fees for the first quarter of 2021 were RMB13.9 million (US$2.1 million),compared with RMB37.6 million in the corresponding period in 2020,primarily due to less value-added services we offered to our high net worth clients.Asset Management Business- Net revenues from one-time commissions for the first quarter of 2021 was RMB30.0 million (US$4.6 million),represents the one-time commissions earned from all private equity products that we distributed directly from our asset management segment since the fourth quarter of 2020 to comply with new regulation. We still distributed other investment products from our wealth management business segment.- Net revenues from recurring service fees for the first quarter of 2021 were RMB161.2 million (US$24.6 million),a 0.5% increase from the corresponding period in 2020.- Net revenues from performance-based income for the first quarter of 2021 were RMB77.5 million (US$11.8 million),compared with RMB4.6 million in the corresponding period of 2020. The increase was primarily due to more performance-based income realized from private equity products.Other Businesses- Net revenues for the first quarter of 2021 were RMB8.3 million (US$1.3 million),a 70.4% decrease from the corresponding period in 2020. The decrease was primarily due to continuous reducing volume of loan origination since the second half year of 2019.Operating Costs and ExpensesOperatingcosts andexpensesfor the first quarter of 2021 were RMB722.3 million (US$110.3 million),a 47.5% increase from the corresponding period in 2020. Operating costs and expenses primarily consisted of compensation and benefits of RMB582.1 million (US$88.9 million),selling expenses of RMB83.5 million (US$12.7 million),general and administrative expenses of RMB80.3 million (US$12.3 million),provision of credit losses of RMB3.4 million (US$0.5 million) and other operating expenses of RMB27.1 million (US$4.1 million).Operating costs and expenses for the wealth management business for the first quarter of 2021 were RMB528.3 million (US$80.6 million),a 36.7% increase from the corresponding period in 2020,primarily due to less compensation and benefits as well as less expenses incurred in the first quarter of 2020 due to the COVID-19 pandemic,and partially offset by a decrease in other operating expense.Operating costs and expenses for the asset management business for the first quarter of 2021 were RMB155.6 million (US$23.7 million),a 116.3% increase from the corresponding period in 2020,primarily due to less compensation and benefits as well as less expenses incurred in the first quarter of 2020 due to the COVID-19 pandemic.Operating costs and expenses for other businesses for the first quarter of 2021 were RMB38.5 million (US$5.9 million),a 22.1% increase from the corresponding period in 2020,primarily due to less compensation and benefits incurred in the first quarter of 2020 due to the COVID-19 pandemic.Operating MarginOperating margin for the first quarter of 2021 was 41.0%,compared with 34.3% for the corresponding period in 2020.Operating margin for the wealth management business for the first quarter of 2021 was 44.2%,compared with 30.1% for the corresponding period in 2020.Operating margin for the asset management business for the first quarter of 2021 was 42.4%,compared with 56.5% for the corresponding period in 2020.Loss from operation for the other businesses for the first quarter of 2021 was RMB30.2 million (US$4.6 million),compared with an operating loss of RMB3.5 million for the corresponding period in 2020,due to less revenue generated in the first quarter of 2021.Investment IncomeInvestment incomefor the first quarter of 2021 was RMB34.4 million (US$5.2 million),compared with RMB17.6 million for the corresponding period in 2020. The increase was primarily related to the fluctuation of fair value of equity securities.Income Tax ExpensesIncome tax expensesfor the first quarter of 2021 were RMB129.8 million (US$19.8 million),a 90.2% increase from the corresponding period in 2020. The increase was primarily due to higher taxable income.Net IncomeNet Income- Net income for the first quarter of 2021 was RMB452.9 million (US$69.1 million),an 85.9% increase from the corresponding period in 2020.- Net margin for the first quarter of 2021 was 37.0%,up from 32.7% for the corresponding period in 2020.- Net income attributable to Noah shareholders for the first quarter of 2021 was RMB454.1 million (US$69.3 million),an 86.9% increase from the corresponding period in 2020.- Net margin attributable to Noah shareholders for the first quarter of 2021 was 37.1%,up from 32.6% for the corresponding period in 2020.- Net income attributable to Noah shareholders per basic and diluted ADSfor the first quarter of 2021 was RMB6.77 (US$1.03) and RMB6.72 (US$1.03),respectively,compared with RMB3.94 and RMB3.92 respectively,for the corresponding period in 2020.Non-GAAP Net Income Attributable to Noah Shareholders - Non-GAAP net income attributable to Noah shareholders for the first quarter of 2021 was RMB461.9 million (US$70.5 million),a 79.7% increase from the corresponding period in 2020 and a 76.0% increase from the fourth quarter of 2020.- Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2021 was 37.7%,up from 34.5% for the corresponding period in 2020.- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2021 was RMB6.84 (US$1.04),up from RMB4.15 for the corresponding period in 2020.Balance Sheet and Cash FlowAs of March 31,the Company had RMB4,904.3 million (US$748.5 million) in cash and cash equivalents,compared with RMB5,005.2 million as of December 31,2020 and RMB4,045.8 million as of March 31,2020.Net cash inflow from the Company's operating activities during the first quarter of 2021 was RMB495.9 million (US$75.7 million),primarily due to operating cash inflow generated by net income.Net cash outflow from the Company's investing activities during the first quarter of 2021 was RMB68.9 million (US$10.5 million),primarily due to the net loans initiated to borrowers.Net cash outflow from the Company's financing activities was RMB533.7 million (US$81.5 million) in the first quarter of 2021,primarily due to repurchasing ordinary shares as well as acquiring additional shares from non-controlling interest shareholder in one of our subsidiaries.RECENT DEVELOPMENTSOn May 9,the Company,through certain of its subsidiaries,entered into definitive agreements ("Transaction Agreements") with certain subsidiaries and affiliates of Sunny World Group to purchase new office premises,with a gross floor area of approximately 72,000 square meters in Shanghai Hongqiao Central Business District for a total cash consideration of approximately RMB2.2 billion (US$340.0 million). The premises will primarily be used as our global headquarters to meet the demand arising from the continuing growth of the Company's businesses and branding image.The Company plans to finance the transaction by cash from our balance sheet. The consideration will be made in installments according to the condition precedents set up by Transaction Agreements. The transaction is subject to the satisfaction of certain conditions in the Transaction Agreements.Ms. Jingbo Wang,commented," After fifteen years of operations,Noah is very glad to purchase this commercial property,consisting of four high-end,well-designed office buildings located at the center of the Hongqiao comprehensive transportation hub in Shanghai,one of the nation's busiest transportation hubs,to be our new global headquarters. I believe this space will also serve as an upgraded client interface for Noah and robust activity center connecting clients in Eastern China to us,enhancing their overall client experience and improving our corporate image."[1]Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation,non-recurring settlement expenses and net of relevant tax impact,if any.See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.[2] "Active clients" for a given period refers to registered high net worth clients who purchase investment products distributed or provided by Noah during that given period,excluding clients who transacted only on our online mutual fund platform.[3]Since the fourth quarter of 2020,we distributed all private equity products directly from our asset management business,but for consistency purposes,we included those transaction values herein.[4] The asset distribution/redemption of public securities also includes market appreciation or depreciation.[5] Since this quarter,we reclassified all remaining mezzanine financing products linked to corporate merger and acquisitions and buy outs from credit to private equity in the amount of RMB4.7 billion,considering its nature is more akin to equity than credit. We have also revised the comparative period presentation to conform to current period presentation.2021 FORECASTThe Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2021 will be in the range of RMB1.2 billion to RMB1.3 billion. This estimate reflects management's current business outlook and is subject to change.CONFERENCE CALLSenior management will host a combined English and Chinese language conference call to discuss the Company's first quarter 2021 unaudited financial results and recent business activities.The conference call may be accessed with the following details:Conference call details Date/TimeMonday,May 10,2021at 8:00 p.m.,U.S. Eastern TimeTuesday,2021at 8:00 a.m.,Hong Kong TimeDial in details

-United States Toll Free1-888-317-6003-Mainland China Toll Free4001-206-115-Hong Kong Toll Free800-963-976-International1-412-317-6061Conference TitleNoah Holdings 1Q21 Earnings Conference CallParticipant Elite Entry Number0955316Participants will need to dial in 10-15 minutes early and use the above Elite Entry Number in order to join the conference. A telephone replay will be available starting one hour after the end of the conference call untilMay 17,2021at +1-877-344-7529 (US Toll Free) or 1-412-317-0088 (International Toll). The replay access code is 10154694.A live and archived webcast of the conference call will be available at Noah's investor relations website under the News & Events section at ir.noahgroup.com.DISCUSSION OF NON-GAAP MEASURESIn addition to disclosing financial results prepared in accordance with U.S. GAAP,the Company's earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation,non-recurring settlement expenses and net of tax impact,if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measures used by the Company may be prepared differently from and,therefore,may not be comparable to similarly titled measures used by other companies.When evaluating the Company's operating performance in the periods presented,management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such,the Company's management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.ABOUT NOAH HOLDINGS LIMITEDNoah Holdings Limited (NYSE: NOAH) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. In the first quarter of 2021,Noah distributed RMB27.1 billion (US$4.1 billion) of investment products. Through Gopher Asset Management,Noah had assets under management of RMB154.1 billion (US$23.5 billion) asof March 31,2021.Noah's wealth management business primarily distributes private equity,public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,246 relationship managers across 82 cities in mainland China,and serves the international investment needs of its clients through offices in Hong Kong,Taiwan,United States,Canada and Singapore. The Company's wealth management business had 384,021 registered clients as of March 31,2021. As a leading alternative multi-asset manager in China,Gopher Asset Management manages private equity,credit and multi-strategyinvestments denominated in Renminbi and other currencies.The Company also provides lending and other services.For more information,please visit Noah at ir.noahgroup.com.FOREIGN CURRENCY TRANSLATIONIn this announcement,the unaudited financial results for the first quarter of 2021 ended March 31,2021 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted,all translations from RMB to US$ are made at a rate of RMB6.5518 to US$1.00,the effective noon buying rate for March 31,2021 as set forth in the H.10 statistical release of the Federal Reserve Board.SAFE HARBOR STATEMENTThis announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things,the outlook for 2021 and quotations from management in this announcement,as well as Noah's strategic and operational plans,contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission,in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about Noah's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: its goals and strategies; its future business development,financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission,including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release,and Noah does not undertake any obligation to update any such information,including forward-looking statements,as a result of new information,future events or otherwise,except as required under the applicable law.-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --Noah Holdings LimitedCondensed Consolidated Balance Sheets(unaudited)

As of

December 31,

March 31,

2020

2021

RMB'000

USD'000Assets

Current assets:

Cash and cash equivalents5,005,211

4,904,316

748,545

Restricted cash9,993

9,995

1,526

Short-term investments114,928

143,140

21,847

Accounts receivable,net434,458

444,421

67,832

Loans receivable,net418,947

407,595

62,211

Amounts due from related parties520,178

715,396

109,191

Other current assets199,447

203,938

31,127

Total current assets6,703,162

6,828,801

1,042,279

Long-term investments,net536,384

556,166

84,888

Investment in affiliates1,264,685

1,268,909

193,673

Property and equipment,net248,669

235,974

36,017

Operating lease right-of-use assets,net274,154

268,395

40,965

Deferred tax assets224,240

223,783

34,155

Other non-current assets148,292

214,807

32,786Total Assets9,399,586

9,596,835

1,464,763

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses705,622

844,021

128,823

Income tax payable140,777

244,518

37,321

Deferred revenues71,613

85,143

12,995

Other current liabilities432,650

448,127

68,398

Contingent liabilities530,433

532,612

81,292

Total current liabilities1,881,095

2,154,421

328,829

Operating lease liabilities,non-current194,384

180,308

27,520

Deferred tax liabilities45,881

46,139

7,042

Other non-current liabilities855

844

129

Total Liabilities2,122,215

2,381,712

363,520

Equity7,277,371

7,215,123

1,101,243Total Liabilities and Equity9,763Noah Holdings LimitedCondensed Consolidated Income Statements(In RMB'000,except for ADS data,per ADS data and percentages)(unaudited)

Three months ended

March 31,

Change

2020

2021

Revenues:RMB'000

RMB'000

USD'000

Revenues from others:

One-time commissions207,185

278,704

42,539

34.5%Recurring service fees148,457

220,513

33,657

48.5%Performance-based income14,618

276,524

42,206

1,791.7%Other service fees66,608

23,713

3,619

(64.4%)Total revenues from others436,868

799,454

122,021

83.0%Revenues from funds Gopher manages:

One-time commissions4,749

46,146

7,043

871.7%Recurring service fees303,450

256,697

39,180

(15.4%)Performance-based income5,175

128,556

19,621

2,384.2%Total revenues from funds Gopher

manages313,374

431,399

65,844

37.7%Total revenues750,242

1,230,853

187,865

64.1%Less: VAT related surcharges(4,125)

(6,117)

(934)

48.3%Net revenues746,117

1,224,736

186,931

64.1%Operating costs and expenses:

Compensation and benefits

Relationship manager

compensation(170,052)

(206,872)

(31,575)

21.7%Others(194,787)

(375,253)

(57,275)

92.6%Total compensation andbenefits(364,839)

(582,125)

(88,850)

59.6%Selling expenses(44,540)

(83,455)

(12,738)

87.4%General and administrative

expenses(63,685)

(80,285)

(12,254)

26.1%Provision for credit losses(2,809)

(3,407)

(520)

21.3%Other operating expenses(32,617)

(27,088)

(4,134)

(17.0%)Government subsidies18,635

54,014

8,244

189.9%Total operating costs and

expenses(489,855)

(722,346)

(110,252)

47.5%Income from operations256,262

502,390

76,679

96.0%Other income:

Interest income22,170

22,927

3,499

3.4%Investment income17,566

34,361

5,245

95.6%Other income (expense)858

(486)

(74)

N.A.Total other income40,594

56,802

8,670

39.9%Income before taxes and income

from equity in affiliates296,856

559,192

85,349

88.4%Income tax expense(68,276)

(129,846)

(19,818)

90.2%Income from equity in affiliates15,076

23,513

3,589

56.0%Net income243,656

452,859

69,120

85.9%Less: net income (loss) attributable

tonon-controlling interests631

(1,234)

(188)

N.A.Net income attributable to Noah

shareholders243,025

454,093

69,308

86.9%

Income per ADS,basic3.94

6.77

1.03

71.8%Income per ADS,diluted3.92

6.72

1.03

71.4%Margin analysis:

Operating margin34.3%

41.0%

Net margin32.7%

37.0%

Weighted average ADS equivalent[1]:

Basic61,619,852

67,091,780

67,780

Diluted61,991,117

67,572,038

67,038

ADS equivalent outstanding at end

of period61,635,280

59,976,690

59,690

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

ADSs.

Noah Holdings LimitedCondensed Comprehensive Income Statements(unaudited)

Three months ended

March31,

Change

2020

2021

RMB'000

USD'000

Net income243,120

85.9%Other comprehensive income,net of tax:

Foreign currency translation

adjustments37,319

8,409

1,283

(77.5%)Fair value fluctuation of available for

sale Investment (after tax)(4)

N.A.Comprehensive income280,971

461,268

70,403

64.2%Less: Comprehensive income (loss)

attributable to non-controlling

interests626

(1,201)

(183)

N.A.Comprehensive income attributable to

Noah shareholders280,345

462,469

70,586

65.0%

Noah Holdings LimitedSupplemental Information(unaudited)

As of

March 31,

2020

March 31,

2021

Change

Number of registered clients321,148

384,021

19.6%Number of relationship managers1,209

1,246

3.1%Number of cities under coveragein mainland

China78

5.1%

Three months ended

March 31,

2021

Change

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

percentages)Number of active clients[6]4,075

6,299

54.6%Number of active clients including mutual fund-

only clients16,831

27,846

65.4%Transaction value:

Private equity products2,931

4,763

62.5%Public securities products19,111

21,509

12.5%Credit products183

N.A.Other products969

820

(15.4%)Total transaction value23,194

27,092

16.8%

[6] "Active clients" for a given period refers to registered high net worth clients who purchase investment products distributed or provided by Noah during that given period,excluding clients who only transacted on our online mutual fund platform.Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended March 31,2021

Wealth

Management

Business

Asset

Management

Business

Other

Businesses

Total

RMB'000

Revenues:

Revenues from others:

One-time commissions278,463

241

278,704Recurring service fees219,319

1,194

220,513Performance-based income276,524

276,524Other service fees14,017

1,390

8,306

23,713Total revenues from others788,323

2,825

8,306

799,454Revenues from funds Gopher manages:

One-time commissions16,270

29,876

46,146Recurring service fees95,971

160,726

256,697Performance-based income50,726

77,830

128,556Total revenues from funds Gopher

manages162,967

268,432

431,399Total revenues951,290

271,257

8,306

1,853Less: VAT related surcharges(4,838)

(1,229)

(50)

(6,117)Net revenues946,452

270,028

8,256

1,736Operating costs and expenses:

Compensation and benefits

Relationship manager compensation(206,790)

(82)

(206,872)Other compensations(215,289)

(138,854)

(21,110)

(375,253)Total compensation and benefits(422,079)

(138,936)

(21,110)

(582,125)Selling expenses(66,827)

(12,001)

(4,627)

(83,455)General and administrative expenses(55,924)

(18,094)

(6,267)

(80,285)Provision for credit losses-

(3,407)

(3,407)Other operating expenses(22,083)

(1,805)

(3,200)

(27,088)Government subsidies38,596

15,283

135

54,014Total operating costs and expenses(528,317)

(155,553)

(38,476)

(722,346)Income (loss) from operations418,135

114,475

(30,220)

502,390

Noah Holdings LimitedSegment Condensed Income Statements (unaudited)

Three months ended March 31,2020

Wealth ManagementBusiness

Asset ManagementBusiness

Other Businesses

Total

RMB'000

Revenues:

Revenues from others:

One-time commissions206,944

241

207,185Recurring service fees147,763

694

148,457Performance-based income14,618

14,618Other service fees37,819

134

28,655

66,608Total revenues from others407,144

1,069

28,655

436,868Revenues from funds Gopher

manages:

One-time commissions4,749

4,749Recurring service fees142,860

160,590

303,450Performance-based income556

4,619

5,175Total revenues from funds Gopher

manages148,165

165,209

313,374Total revenues555,309

166,278

28,655

750,242Less: VAT related surcharges(2,670)

(868)

(587)

(4,125)Net revenues552,639

165,410

28,068

746,117Operating costs and expenses:

Compensation and benefits

Relationship manager

compensation(170,052)

(170,052)Other compensations(118,227)

(61,313)

(15,247)

(194,787)Total compensation and benefits(288,279)

(61,247)

(364,839)Selling expenses(36,555)

(7,314)

(671)

(44,540)General and administrative

expenses(47,582)

(10,730)

(5,373)

(63,685)Provision for credit losses-

(2,809)

(2,809)Other operating expenses(23,602)

(1,546)

(7,469)

(32,617)Government subsidies9,607

8,981

18,635Total operating costs and expenses(386,411)

(71,922)

(31,522)

(489,855)Income (loss) from operations 166,228

93,488

(3,454)

256,262Noah Holdings LimitedSupplement Revenue Information for Segment(unaudited)

Three months ended March 31,2021

Wealth

Management

Business

Asset

Management

Business

Other Businesses

Total

RMB'000

Revenues:

Mainland China697,471

187,621

8,306

893,398Hong Kong230,621

76,431

307,052Others23,198

7,205

30,403Total revenues951,853

Three months ended March 31,2020

Wealth

Management

Business

Asset

Management

Business

Other Businesses

Total

RMB'000

Revenues:

Mainland China368,817

145,086

28,655

542,558Hong Kong140,765

16,567

157,332Others45,727

4,625

50,352Total revenues555,242Noah Holdings LimitedReconciliation of GAAP to Non-GAAP Results(In RMB,except for per ADS data and percentages)(unaudited)[7]

Three months ended

March 31,

Change

2020

2021

RMB'000

Net income attributable to Noah shareholders243,093

86.9%

Adjustment for share-based compensation18,291

10,144

(44.5%)

Less: Tax effect of adjustments4,235