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

SHANGHAI,Aug. 18,2021 -- 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 second quarter of 2021.

SECOND QUARTER 2021 FINANCIAL HIGHLIGHTS

Net revenues for the second quarter of 2021 were RMB899.4 million (US$139.3 million),a 20.3% increase from the corresponding period in 2020 due to increased one-time commissions as well as recurring service fees.

(RMB millions,

except percentages)

Q2 2020

Q2 2021

YoY Change

Wealth management

542.8

625.6

15.3%

Asset management

181.6

256.3

41.1%

Other businesses

23.0

17.5

(23.9%)

Total net revenues

747.4

899.4

20.3%

Income from operations for the second quarter of 2021 was RMB335.4 million (US$51.9 million),a 5.0% increase from the corresponding period in 2020.

(RMB millions,

except percentages)

Q2 2020

Q2 2021

YoY Change

Wealth management

196.6

176.7

(10.1%)

Asset management

100.8

172.8

71.4%

Other businesses

22.1

(14.1)

N.A.

Total income from operations

319.5

335.4

5.0%

Net income attributable to Noah shareholders for the second quarter of 2021 was RMB305.5 million (US$47.3 million),a 2.0% increase from the corresponding period in 2020.

Non-GAAP[1] net income attributable to Noah shareholders for the second quarter of 2021 was RMB337.0 million (US$52.2 million),a 7.5% increase from the corresponding period in 2020.

[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 share-based 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.

SECOND 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,private secondary,mutual funds and other products denominated in RMB and other currencies.

Total number of registered clients as of June 30,2021 was 397,235,a 19.6% increase from June 30,2020,and a 3.4% increase from March 31,2021.

Total number of active clients[2] which excluded mutual fund-only clients during the second quarter of 2021 was 4,676,a 38.9% increase from the second quarter of 2020,and a 25.8% decrease from the first quarter of 2021. Counting in mutual fund-only clients,the total number of clients who transacted with us during the second quarter of 2021 was 20,290,a 38.0% increase from the second quarter of 2020,and a 27.1% decrease from the first quarter of 2021.

Aggregate value of investment products distributed during the second quarter of 2021 wasRMB25.0 billion (US$3.9 billion),a 16.6% increase from the second quarter of 2020.

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

Three months ended June 30,

2020

2021

Product type

(RMB in billions,except percentages)

Private equity products

2.5

11.9%

6.5

25.9%

Private secondaryproducts[3]

7.2

33.4%

7.7

30.8%

Mutual fund products

10.8

50.4%

9.4

37.5%

Other products[4]

0.9

4.3%

1.4

5.8%

All products

21.4

100.0%

25.0

100.0%

[3] "Private secondary products" refers to privately raised investment products that invest in publicly traded securities,and

"mutual fund products" refers to publicly raised investment products that invest in publicly traded securities,and these two

were previously combined as "public securities products".

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

others.

Coverage network in mainland China covers 81 cities as of June 30,2021,compared with 78 cities as of June 30,2020 and 82 cities as of March 31,2021.

Number of relationship managers was 1,268 as of June 30,a 6.0% increase from June 30,and a 1.8% increase from March 31,2021. The turnover rate of core "elite" relationship managers was 1.7%,compared with 1.4% as of June 30,2020.

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 and the United States. Gopher Asset Management develops and manages assets ranging from private equity,real estate,public securities to multi-strategy investments denominated in RMB and other currencies.

Total assets under management as of June 30,2021 were RMB155.9 billion (US$24.1 billion),a 1.2% increase from March 31,2021 and a 2.2% decrease from June 30,2020.

Investment type

As of

March 31,

2021

Redemption

As of

June 30,

2021

(RMB billions,except percentages)

Private equity

121.9

79.1%

5.8

-

127.7

81.9%

Public securities[5]

10.5

6.8%

1.5

0.9

11.1

7.1%

Real estate

10.7

7.0%

-

0.5

10.2

6.6%

Multi-strategies

5.9

3.8%

0.1

0.5

5.5

3.5%

Others

5.1

3.3%

-

3.7

1.4

0.9%

All Investments

154.1

100.0%

7.4

5.6

155.9

100.0%

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

Other Businesses

Since the fourth quarter of 2020,our other businesses segment has been transitioning to "Noah Digital Intelligence",aiming to diversify distribution channels beyond our wealth management,and to provide more comprehensive services and investment products.

Ms. Jingbo Wang,co-founder and CEO of Noah,said,"It has been two years since we started the paradigm transformation in the third quarter of 2019. We are happy to report continued strong growth year-over-year in diamond and black card client numbers and all major revenue streams in the second quarter of 2021. Our net revenues grew 20.3% year-on-year to RMB899.4 million,and non-GAAP net income grew 7.5% year-on-year to RMB337.0 million in this quarter,supported by that fact that one-time commissions,recurring service fees and performance-based income were up 94.7%,5.2% and 34.7% year-on-year respectively. A significant milestone we achieved in this quarter is that we have completed the redemption and distribution of all single counter-party private credit products,except for partial Camsing and Huishan products. Another encouraging signal is that the number of black card clients increased by 11.3% to 1,104 as of June 30,indicating the fastest growth of our ultra-high-net-worth clients since the transformation. In addition,by strategically investing in iCapital Network,we hope to continue improving our competitiveness overseas."

SECOND QUARTER 2021 FINANCIAL RESULTS

Net Revenues

Net revenuesfor the second quarter of 2021 were RMB899.4 million (US$139.3 million),a 20.3% increase from the corresponding period in 2020,primarily driven by increased one-time commissions as well as recurring service fees,partially offset by decreased other service fees.

Wealth Management Business

Net revenues from one-time commissions for the second quarter of 2021 were RMB215.3 million (US$33.4 million),a 70.9% increase from the corresponding period in 2020,primarily due to increased transaction value as well as the distribution of higher one-time commission rates products.

Net revenues from recurring service fees for the second quarter of 2021 were RMB340.0 million (US$52.7 million),a 9.6% increase from the corresponding period in 2020,mainly due to cumulative effect of investment products with recurring service fees previously distributed.

Net revenues from performance-based income for the second quarter of 2021 were RMB55.6 million (US$8.6 million),a 25.3% decrease from the corresponding period of 2020,primarily due to less performance-based income from public securities products.

Net revenues from other service fees for the second quarter of 2021 were RMB14.6 million (US$2.3 million),a 54.5% decrease from the corresponding period in 2020,primarily due to less value-added services Noah offers to its high net worth clients during the COVID-19 epidemic.

Asset Management Business

Net revenues from recurring service fees for the second quarter of 2021 were RMB158.5 million (US$24.5 million),a 3.4% decrease from the corresponding period in 2020.

Net revenues from performance-based income for the second quarter of 2021 were RMB66.3 million (US$10.3 million),a 311.8% increase from the corresponding period in 2020,primarily due to an increase in performance-based income from real estate products and offshore private equity products.

OtherBusinesses

Net revenues for the second quarter of 2021 were RMB17.5 million (US$2.7 million),a 23.9% decrease from the corresponding period in 2020. The decrease was primarily due to reduced loan origination since the second half of 2020 as well as the ongoing impact of COVID-19.

Operating Costs and Expenses

Operatingcosts andexpensesfor the second quarter of 2021 were RMB564.0 million (US$87.4 million),a 31.8% increase from the corresponding period in 2020. Operating costs and expenses primarily consisted of compensation and benefits of RMB395.8 million (US$61.3 million),selling expenses of RMB99.5 million (US$15.4 million),general and administrative expenses of RMB77.9 million (US$12.1 million),provision of credit losses of RMB2.1 million (US$0.3 million) and other operating expenses of RMB28.1 million (US$4.3 million).

Operating costs and expenses for the wealth management business for the second quarter of 2021 were RMB448.9 million (US$69.5 million),a 29.7% increase from the corresponding period in 2020,primarily due to an increase in compensation and benefits in line with increased transaction value and selling expenses.

Operating costs and expenses for the asset management business for the second quarter of 2021 were RMB83.4 million (US$12.9 million),a 3.2% increase from the corresponding period in 2020,primarily due to increased compensation and benefits as well as expenses and offset by more government grants received.

Operating costs and expenses for other businesses for the second quarter of 2021 were RMB31.7 million (US$4.9 million),compared with RMB0.8 million from the corresponding period in 2020,primarily due to increased depreciation expenses for our newly purchased headquarter buildings as well as less government grants received compared with corresponding period in 2020.

Operating Margin

Operating margin for the second quarter of 2021 was 37.3%,decreased from 42.7% for the corresponding period in 2020.

Operating margin for the wealth management business for the second quarter of 2021 was 28.2%,compared with 36.2% for the corresponding period in 2020,due to less expenses incurred in the first half year of 2020 due to the COVID-19 pandemic as well as private equity products distribution business transferred to asset management business.

Operating margin for the asset management business for the second quarter of 2021 was 67.4%,compared with 55.5% for the corresponding period in 2020,due to revenue recognition of private equity products transferred from wealth management business to asset management business since the fourth quarter of 2020 as well as more performance-based income in this quarter.

Loss from operation for other businesses for the second quarter of 2021 was RMB14.1 million (US$2.2 million),compared with an operating income of RMB22.1 million for the corresponding period in 2020.

Investment Income

Investment incomefor the second quarter of 2021 was RMB3.5 million (US$0.5 million),compared with RMB4.7 million for the corresponding period in 2020.

Income Tax Expenses

Income tax expensesfor the second quarter of 2021 were RMB68.7 million (US$10.6 million),an 11.7% decrease from the corresponding period in 2020,primarily due to less taxable income.

Income from Equity in Affiliates

Income from equity in affiliatesfor the second quarter of 2021 was RMB53.4 million (US$8.3 million),a 31.3% increase from the corresponding period in 2020,primarily due to the increase of net income of the funds of funds we manage and invest in as the general partner or manager.

Net Income

Net Income

Net income for the second quarter of 2021 was RMB308.0 million (US$47.7 million),a 2.0% increase from the corresponding period in 2020.

Net margin for the second quarter of 2021 was 34.2%,down from 40.4% for the corresponding period in 2020.

Net income attributable to Noah shareholders for the second quarter of 2021 was RMB305.5 million (US$47.3 million),a 2.0% increase from the corresponding period in 2020.

Net margin attributable to Noah shareholders for the second quarter of 2021 was 34.0%,down from 40.1% for the corresponding period in 2020.

Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2021 was RMB4.56 (US$0.71) and RMB4.53 (US$0.70),respectively,down from RMB4.86 and RMB4.84 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 second quarter of 2021 was RMB337.0 million (US$52.2 million),a 7.5% increase from the corresponding period in 2020.

Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2021 was 37.5%,compared with 42.0% for the corresponding period in 2020.

Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2021 was RMB5.00 (US$0.77),down from RMB5.06 for the corresponding period in 2020.

Balance Sheet and Cash Flow

As of June 30,the Company had RMB2,686.4 million (US$416.1 million)in cash and cash equivalents,compared with RMB4,904.3 million as of March 31,2021 and RMB4,170.7 million as of June 30,2020.

Net cash inflow from the Company's operating activities during the second quarter of 2021 was RMB5.7 million (US$0.9 million),primarily due to cash inflow generated from operating profit and partially offset by annual payment of employee annual bonuses and annual tax filing in the second quarter.

Net cash outflow from the Company's investing activities during the second quarter of 2021 was RMB2,201.5 million (US$341.0 million),primarily due to cash payment for the acquisition of our new headquarter in the second quarter.

Net cash outflow from the Company's financing activities was RMB9.9 million (US$1.5 million) in the second quarter of 2021,primarily due to certain capital divestment and dividend distribution to certain of non-controlling interest shareholders.

2021 FORECAST

The 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 CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's second quarter 2021 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details

Date/Time:

Tuesday,August 17,2021 at 8:00 p.m.,U.S. Eastern Time

Wednesday,August 18,2021 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 Holdings2Q21 Earnings Conference Call

Participant Password:

7553238

A telephone replay will be available starting one hour after the end of the conference call until August 24,2021 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10159207.

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

DISCUSSION OF NON-GAAP MEASURES

In addition to disclosing financial results prepared in accordance with U.S. GAAP,the Company's earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation,non-recurring share-based 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 LIMITED

Noah 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 half of 2021,Noah distributed RMB52.1 billion (US$8.1 billion) of investment products. Through Gopher Asset Management,Noah had assets under management of RMB155.9 billion (US$24.1 billion) asof June 30,2021.

Noah's wealth management business primarily distributes private equity,mutual fund and other products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,268 relationship managers in 81 cities in mainland China,and serves the international investment needs of its clients through offices in Hong Kong,Taiwan,United States and Singapore. The Company's wealth management business had 397,235 registered clients as of June 30,2021. As a leading multi-asset manager in China,Gopher Asset Management manages private equity,public securities,multi-strategy and otherinvestments denominated in RMBand other currencies.The Company also provides other businesses.

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

FOREIGN CURRENCY TRANSLATION

In this announcement,the unaudited financial results for the second quarter of 2021 ended June 30,2021 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 RMB6.4566 to US$1.00,the effective noon buying rate for June 30,2021 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 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.

Contacts:

NoahHoldings Limited

Sonia Han,Melo Xi,Ryan Teng

Tel: +86-21-8035-8294

ir@noahgroup.com

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)

As of

March 31,

June 30,

2021

2021

2021

RMB'000

RMB'000

USD'000

Assets

Current assets:

Cash and cash equivalents

4,904,316

2,686,422

416,074

Restricted cash

9,995

10,067

1,559

Short-term investments

143,140

96,050

14,876

Accounts receivable,net

444,421

470,265

72,835

Loans receivable,net

407,595

515,194

79,793

Amounts due from related parties

715,396

643,972

99,739

Other current assets

203,938

239,997

37,171

Total current assets

6,828,801

4,661,967

722,047

Long-term investments,net

556,166

554,280

85,847

Investment in affiliates

1,268,909

1,258,829

194,968

Property and equipment,net

235,974

2,642,584

409,284

Operating lease right-of-use assets,net

268,395

256,597

39,742

Deferred tax assets

223,783

223,801

34,662

Other non-current assets

214,807

199,232

30,858

Total Assets

9,596,835

9,797,290

1,517,408

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses

844,021

491,716

76,157

Income tax payable

244,518

84,675

13,114

Deferred revenues

85,143

96,523

14,950

Contingent liabilities

532,612

460,315

71,294

Other current liabilities

448,127

554,383

85,863

Total current liabilities

2,154,421

1,687,612

261,378

Operating lease liabilities,non-current

180,308

169,167

26,201

Deferred tax liabilities

46,139

241,084

37,339

Other non-current liabilities

844

109,134

16,903

Total Liabilities

2,381,712

2,206,997

341,821

Equity

7,215,123

7,590,293

1,175,587

Total Liabilities and Equity

9,408

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)

Three months ended

June 30,

Change

2020

2021

2021

Revenues:

RMB'000

RMB'000

USD'000

Revenues from others:

One-time commissions

117,085

195,891

30,340

67.3%

Recurring service fees

152,253

218,988

33,917

43.8%

Performance-based income

57,206

46,468

7,197

(18.8%)

Other service fees

56,197

32,283

5,000

(42.6%)

Total revenues from others

382,741

493,630

76,454

29.0%

Revenues from funds Gopher

manages:

One-time commissions

10,431

52,377

8,112

402.1%

Recurring service fees

324,174

282,333

43,728

(12.9%)

Performance-based income

33,766

76,101

11,787

125.4%

Total revenues from funds Gopher

manages

368,371

410,811

63,627

11.5%

Total revenues

751,112

904,441

140,081

20.4%

Less: VAT related surcharges

(3,674)

(5,052)

(782)

37.5%

Net revenues

747,438

899,389

139,299

20.3%

Operating costs and expenses:

Compensation and benefits

Relationship managers

(113,044)

(153,275)

(23,739)

35.6%

Others

(217,805)

(242,507)

(37,560)

11.3%

Total compensation and benefits

(330,849)

(395,782)

(61,299)

19.6%

Selling expenses

(62,622)

(99,463)

(15,405)

58.8%

General and administrative expenses

(68,502)

(77,892)

(12,064)

13.7%

Provision for credit losses

(1,897)

(2,112)

(327)

11.3%

Other operating expenses

(20,715)

(28,082)

(4,349)

35.6%

Government grants

56,651

39,300

6,087

(30.6%)

Total operating costs and expenses

(427,934)

(564,031)

(87,357)

31.8%

Income from operations

319,504

335,358

51,942

5.0%

Other income:

Interest income

10,530

18,212

2,821

73.0%

Investment income

4,711

3,487

540

(26.0%)

Settlement expenses

-

(19,190)

(2,972)

N.A.

Other income (expenses)

4,298

(14,617)

(2,264)

N.A.

Total other income (expenses)

19,539

(12,108)

(1,875)

N.A.

Income before taxes and income from

equity in affiliates

339,043

323,250

50,067

(4.7%)

Income tax expense

(77,810)

(68,720)

(10,643)

(11.7%)

Income from equity in affiliates

40,693

53,420

8,274

31.3%

Net income

301,926

307,950

47,698

2.0%

Less: net income attributable to non-

controlling interests

2,285

2,424

375

6.1%

Net income attributable to Noah

shareholders

299,641

305,526

47,323

2.0%

Income per ADS,basic

4.86

4.56

0.71

(6.2%)

Income per ADS,diluted

4.84

4.53

0.70

(6.4%)

Margin analysis:

Operating margin

42.7%

37.3%

37.3%

Net margin

40.4%

34.2%

34.2%

Weighted average ADS equivalent[1]:

Basic

61,522

66,993,114

66,114

Diluted

61,921,913

67,449,200

67,200

ADS equivalent outstanding at end of

period

61,698,055

60,080,070

60,070

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

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)

Six months ended

June 30,

Change

2020

2021

2021

Revenues:

RMB'000

RMB'000

USD'000

Revenues from others:

One-time commissions

324,270

474,595

73,505

46.4%

Recurring service fees

300,710

439,501

68,070

46.2%

Performance-based income

71,824

322,992

50,025

349.7%

Other service fees

122,805

55,996

8,673

(54.4%)

Total revenues from others

819,609

1,293,084

200,273

57.8%

Revenues from funds Gopher

manages:

One-time commissions

15,180

98,523

15,259

549.0%

Recurring service fees

627,624

539,030

83,485

(14.1%)

Performance-based income

38,941

204,657

31,697

425.6%

Total revenues from funds

Gopher manages

681,745

842,210

130,441

23.5%

Total revenues

1,501,354

2,135,294

330,714

42.2%

Less: VAT related surcharges

(7,799)

(11,169)

(1,730)

43.2%

Net revenues

1,493,555

2,124,125

328,984

42.2%

Operating costs and expenses:

Compensation and benefits

Relationship managers

(283,096)

(360,147)

(55,780)

27.2%

Others

(412,592)

(617,760)

(95,679)

49.7%

Total compensation and

benefits

(695,688)

(977,907)

(151,459)

40.6%

Selling expenses

(107,162)

(182,918)

(28,330)

70.7%

General and administrative

expenses

(132,187)

(158,177)

(24,498)

19.7%

Provision for credit losses

(4,706)

(5,519)

(855)

17.3%

Other operating expenses

(53,332)

(55,170)

(8,545)

3.4%

Government grants

75,286

93,314

14,452

23.9%

Total operating costs and

expenses

(917,789)

(1,286,377)

(199,235)

40.2%

Income from operations

575,766

837,748

129,749

45.5%

Other income:

Interest income

32,700

41,139

6,372

25.8%

Investment income

22,277

37,848

5,862

69.9%

Settlement expenses

-

(19,972)

N.A.

Other income (expense)

5,156

(15,103)

(2,339)

N.A.

Total other income

60,133

44,694

6,923

(25.7%)

Income before taxes and

income from equity in affiliates

635,899

882,442

136,672

38.8%

Income tax expense

(146,086)

(198,566)

(30,754)

35.9%

Income from equity in affiliates

55,769

76,933

11,915

37.9%

Net income

545,582

760,809

117,833

39.4%

Less: net income attributable to

non-controlling interests

2,916

1,190

184

(59.2%)

Net income attributable to

Noah shareholders

542,666

759,619

117,649

40.0%

Income per ADS,basic

8.80

11.33

1.75

28.8%

Income per ADS,diluted

8.76

11.25

1.74

28.4%

Margin analysis:

Operating margin

38.6%

39.4%

39.4%

Net margin

36.5%

35.8%

35.8%

Weighted average ADS

equivalent[1]:

Basic

61,640,688

67,042,174

67,174

Diluted

61,949,755

67,497,514

67,514

ADS equivalent outstanding at

end of period

61,070

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

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

Three months ended

June 30,

Change

2020

2021

2021

RMB'000

RMB'000

USD'000

Net income

301,698

2.0%

Other comprehensive income,net of tax:

Foreign currency translation adjustments

(7,160)

(22,809)

(3,533)

218.6%

Fair value fluctuation of available for sale

Investment (after tax)

775

134

21

(82.7%)

Comprehensive income

295,541

285,275

44,186

(3.5%)

Less: Comprehensive income attributable

to non-controlling interests

2,326

2,411

373

3.7%

Comprehensive income attributable to

Noah shareholders

293,215

282,864

43,813

(3.5%)

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

Six months ended

June 30,

Change

2020

2021

2021

RMB'000

RMB'000

USD'000

Net income

545,833

39.4%

Other comprehensive income,net of tax:

Foreign currency translation adjustments

30,159

(14,400)

(2,230)

N.A.

Fair value fluctuation of available for sale

Investment (after tax)

771

134

21

(82.6%)

Comprehensive income

576,512

746,543

115,624

29.5%

Less: Comprehensive income attributable

to non-controlling interests

2,952

1,210

187

(59.0%)

Comprehensive income attributable to

Noah shareholders

573,560

745,333

115,437

29.9%

Noah Holdings Limited

Supplemental Information

(unaudited)

As of

June 30,

2020

June 30,

2021

Change

Number of registered clients

332,157

397,235

19.6%

Number of relationship managers

1,196

1,268

6.0%

Number of cities in mainland China under coverage

78

81

3.8%

Three months ended

June 30,

2021

Change

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

percentages)

Number of active clients

3,367

4,676

38.9%

Number of active clients including mutual fund clients

14,703

20,290

38.0%

Transaction value:

Private equity products

2,551

6,472

153.7%

Private secondary products

7,162

7,708

7.6%

Mutual fund products

10,809

9,375

(13.3%)

Other products

921

1,446

57.0%

Total transaction value

21,443

25,001

16.6%

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended June 30,2021

Wealth

Asset

Management

Management

Other

Business

Business

Businesses

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Revenues from others

One-time commissions

195,891

-

-

195,891

Recurring service fees

218,988

-

-

218,988

Performance-based income

46,468

-

-

46,468

Other service fees

14,665

-

17,618

32,283

Total revenues from others

476,012

-

17,618

493,630

Revenues from funds Gopher

manages

One-time commissions

20,705

31,672

-

52,377

Recurring service fees

123,031

159,302

-

282,333

Performance-based income

9,507

66,594

-

76,101

Total revenues from funds

Gopher manages

153,243

257,568

-

410,811

Total revenues

629,255

257,568

17,618

904,441

Less: VAT related surcharges

(3,665)

(1,299)

(88)

(5,052)

Net revenues

625,590

256,269

17,530

899,389

Operating costs and expenses:

Compensation and benefits

Relationship managers

(149,874)

(3,401)

-

(153,275)

Others

(154,463)

(74,017)

(14,027)

(242,507)

Total compensation and

benefits

(304,337)

(77,418)

(14,027)

(395,782)

Selling expenses

(82,726)

(10,496)

(6,241)

(99,463)

General and administrative

expenses

(54,091)

(16,676)

(7,125)

(77,892)

Provision for credit losses

-

-

(2,112)

(2,112)

Other operating expenses

(12,758)

(1,424)

(13,900)

(28,082)

Government grants

4,997

22,579

11,724

39,300

Total operating costs and

expenses

(448,915)

(83,435)

(31,681)

(564,031)

Income (loss) from operations

176,675

172,834

(14,151)

335,358

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended June 30,2020

Wealth

Management

Business

Asset

Management

Business

Other

Businesses

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Revenues from others

One-time commissions

116,719

366

-

117,085

Recurring service fees

151,607

646

-

152,253

Performance-based income

57,206

-

-

57,206

Other service fees

32,163

627

23,407

56,197

Total revenues from others

357,695

1,639

23,407

382,741

Revenues from funds Gopher manages

One-time commissions

9,860

571

-

10,431

Recurring service fees

160,202

163,972

-

324,174

Performance-based income

17,613

16,153

-

33,766

Total revenues from funds Gopher

manages

187,675

180,696

-

368,371

Total revenues

545,370

182,335

23,407

751,112

Less: VAT related surcharges

(2,560)

(693)

(421)

(3,674)

Net revenues

542,810

181,642

22,986

747,438

Operating costs and expenses:

Compensation and benefits

Relationship managers

(113,044)

-

-

(113,044)

Others

(129,238)

(70,395)

(18,172)

(217,805)

Total compensation and benefits

(242,282)

(70,172)

(330,849)

Selling expenses

(49,302)

(8,407)

(4,913)

(62,622)

General and administrative

expenses

(51,735)

(12,994)

(3,773)

(68,502)

Provision for credit losses

-

-

(1,897)

(1,897)

Other operating expenses

(17,796)

(1,614)

(1,305)

(20,715)

Government grants

14,868

12,549

29,234

56,651

Total operating costs and expenses

(346,247)

(80,861)

(826)

(427,934)

Income from operations

196,563

100,781

22,160

319,504

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)

Three months ended June 30,2021

Wealth

Management

Business

Asset

Management

Business

Other

Businesses

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Mainland China

450,226

209,183

17,618

677,027

Hong Kong

143,309

38,942

-

182,251

Others

35,720

9,443

-

45,163

Total revenues

629,255

257,568

17,618

904,441

Three months ended June 30,2020

Wealth

Management

Business

Asset

Management

Business

Other

Businesses

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Mainland China

392,284

150,489

23,407

566,180

Hong Kong

121,176

28,052

-

149,228

Others

31,910

3,794

-

35,704

Total revenues

545,370

182,335

23,407

751,112

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)

Three months ended

June 30,

Change

2020

2021

RMB'000

RMB'000

Net income attributable to Noah shareholders

299,526

2.0%

Adjustment for share-based compensation

18,106

16,034

(11.4%)

Add: settlement expense

-

19,190

N.A.

Less: tax effect of adjustments

4,193

3,720

(11.3%)

Adjusted net income attributable to Noah shareholders

(non-GAAP)

313,554

337,030

7.5%

Net marginattributable to Noah shareholders

40.1%

34.0%

Non-GAAP net margin attributable to Noah shareholders

42.0%

37.5%

Net income attributable to Noah shareholders per ADS,

diluted

4.84

4.53

(6.4%)

Non-GAAP net income attributable to Noah shareholders

per ADS,diluted

5.06

5.00

(1.2%)

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

2020

2021

RMB'000

RMB'000

Net income attributable to Noah shareholders

542,619

40.0%

Adjustment for share-based compensation

36,397

26,178

(28.1%)

Add: settlement expense

-

19,190

N.A.

Less: tax effect of adjustments

8,428

6,074

(27.9%)

Adjusted net income attributable to Noah shareholders

(non-GAAP)

570,635

798,913

40.0%

Net marginattributable to Noah shareholders

36.3%

35.8%

Non-GAAP net margin attributable to Noah shareholders

38.2%

37.6%

Net income attributable to Noah shareholders per ADS,

diluted

8.76

11.25

28.4%

Non-GAAP net income attributable to Noah shareholders

per ADS,diluted

9.21

11.84

28.6%

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