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

SHANGHAI,Nov. 24,2021 -- 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 ("HNW") investors,today announced itsunaudited financial results for the third quarter of 2021.

THIRD QUARTER 2021 FINANCIAL HIGHLIGHTS

Net revenues for the third quarter of 2021 were RMB908.9 million (US$141.1 million),a 5.8% increase from the corresponding period in 2020,and a 1.1% increase from the second quarter of 2021.

(RMB millions,

except percentages)

Q3 2020

Q3 2021

YoY Change

Wealth management

627.7

653.6

4.1%

Asset management

222.4

241.3

8.5%

Other businesses

9.0

14.0

56.4%

Total net revenues

859.1

908.9

5.8%

Income from operations for the third quarter of 2021 was RMB228.9 million (US$35.5 million),a 34.1% decrease from the corresponding period in 2020,and a 31.8% decrease from the second quarter of 2021,due to our budgeted strategic investments on compensation and marketing activities.

(RMB millions,

except percentages)

Q3 2020

Q3 2021

YoY Change

Wealth management

248.4

143.1

(42.4%)

Asset management

113.7

117.2

3.0%

Other businesses

(14.9)

(31.4)

112.2%

Total income from operations

347.2

228.9

(34.1%)

Net income attributable to Noah shareholders for the third quarter of 2021 was RMB273.2 million (US$42.4 million),a 4.3% decrease from the corresponding period in 2020,and a 10.6% decrease from the second quarter of 2021.

Non-GAAP[1] net income attributable to Noah shareholders for the third quarter of 2021 was RMB284.2 million (US$44.1 million),a 4.2% decrease from the corresponding period in 2020,and a 15.7% decrease from the second quarter of 2021.

[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.

THIRD 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 September 30,2021 was 406,420,a 16.0% increase from September 30,2020 and a 2.3% increase from June 30,2021.

Total number of active clients[2] which excluded mutual fund-only clients during the third quarter of 2021 was 5,606,a 25.5% increase from the corresponding period in 2020 and a 19.9% increase from the second quarter of 2021. Counting in mutual fund-only clients,the total number of clients who transacted with us during the third quarter of 2021 was 21,269,a 3.7% increase from the third quarter of 2020,and a 4.8% increase from the second quarter of 2021.

Aggregate value of investment products distributed during the third quarter of 2021 was RMB24.1 billion (US$3.7 billion),a 16.4% decrease from the corresponding period in 2020,due to decreased distribution in mutual fund products and private equity products.

Product type

Three months ended September 30,

2020

2021

(RMB in billions,except percentages)

Mutual fundproducts

12.3

42.6%

8.9

37.2%

Private secondaryproducts

8.6

29.9%

10.6

43.8%

Private equity products

7.2

25.1%

3.8

15.8%

Other products[3]

0.7

2.4%

0.8

3.2%

All products

28.8

100.0%

24.1

100.0%

Coverage network in mainland China covers 81 cities as of September 30,2021,compared with 81 cities as of June 30,and 79 cities as of September 30,2020.

Number of relationship managers was 1,322 as of September 30,a 4.3% increase from June 30,and a 9.8% increase from September 30,2020.

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

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

Asset Management Business

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

Total assets under management as of September 30,2021 remained relatively stable at RMB156.1 billion (US$24.2 billion),as compared with June 30,2021 and September 30,2020.

Investment type

As of

June 30,

2021

Growth

Distribution/

Redemption

As of

September 30,

2021

(RMB billions,except percentages)

Private equity

127.7

81.9%

3.1

0.4

130.4

83.5%

Public securities[4]

11.1

7.1%

1.3

1.3

11.1

7.1%

Real estate

10.2

6.6%

0.2

3.0

7.4

4.7%

Multi-strategies

5.5

3.5%

0.5

0.2

5.8

3.8%

Others

1.4

0.9%

-

-

1.4

0.9%

All Investments

155.9

100.0%

5.1

4.9

156.1

100.0%

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

Other Businesses

Since the fourth quarter of 2020,we have been transitioning our other businesses segment to "Noah Digital Intelligence",with an aim 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 is encouraging to see continued growth in the number of diamond card and black card clients,exceeding 8,000 in total; and that our active clients also increased by 25.5% year-on-year,indicating the positive results of our upgraded Noah Triangle client service model. Net revenues rose by 5.8% year-on-year,supported by historical high recurring income as long-duration private secondary products and private equity products accumulate into our AUA,creating the snow ball effect,amid the volatile market this quarter. Since the establishment of Noah,there has been no capital pool,no implicit guarantee,no duration mismatch,no leverage allocation,and no cross-border operations of funds. Our fully compliant operations in different countries and regions where we hold local licenses ensure our lifeline and future growth. Noah stays focused on serving HNW and ultra-HNW clients,and strives to become a professional wealth management service provider with 'one meter in width and 1,000 meters in depth',delivering suitable products to clients based on enhanced research capabilities and deeper understanding of our clients utilizing the KYC/KYP/KYA platform."

THIRD QUARTER 2021 FINANCIAL RESULTS

Net Revenues

Net revenuesfor the third quarter of 2021 were RMB908.9 million (US$141.1 million),primarily driven by increased one-time commissions,performance-based income and other service fees.

Wealth Management Business

- Net revenues from one-time commissionsfor the third quarter of 2021 were RMB193.9 million (US$30.1 million),a 2.2% increase from the corresponding period in 2020 due to an increase in private secondary products distributed in third quarter of 2021.

- Net revenues from recurring service feesfor the third quarter of 2021 were RMB391.2 million (US$60.7 million),a 2.8% increase from the corresponding period in 2020. The increase was primarily due to accumulated effect of investment products previously distributed.

- Net revenues from performance-based incomefor the third quarter of 2021 were RMB37.7 million (US$5.9 million),an 11.9% increase from the corresponding period in 2020,primarily due to an increase in performance-based income from private equity products.

- Net revenues from other service feesfor the third quarter of 2021 were RMB30.8 million (US$4.8 million),a 29.0% increase from the corresponding period in 2020,primarily due to more value-added services Noah offers to its high net worth clients.

Asset Management Business

- Net revenues from recurring service fees for the third quarter of 2021 were RMB175.7 million (US$27.3 million),a 2.1% decrease from the corresponding period in 2020,primarily due to redemptions of real estate assets.

- Net revenues from performance-based income for the third quarter of 2021 were RMB44.4 million (US$6.9 million),a 20.8% increase from the corresponding period in 2020,primarily due to an increase in performance-based income from offshore private equity products.

Other Businesses

- Net revenues for the third quarter of 2021 were RMB14.0 million (US$2.2 million),a 56.4% increase from the corresponding period in 2020.

Operating Costs and Expenses

Operatingcosts andexpensesfor the third quarter of 2021 were RMB680.1 million (US$105.5 million),a 32.9% increase from the corresponding period in 2020. Operating costs and expenses primarily consisted of compensation and benefits of RMB459.8 million (US$71.4 million),selling expenses of RMB114.3 million (US$17.7 million),general and administrative expenses of RMB77.1 million (US$12.0 million) and other operating expenses of RMB33.0 million (US$5.1 million).

Operating costs and expenses for the wealth management business for the third quarter of 2021 were RMB510.5 million (US$79.2 million),a 34.6% increase from the corresponding period in 2020,primarily due to an increase in compensation and benefits as well as selling and general and administrative expenses.

Operating costs and expenses for the asset management business for the third quarter of 2021 were RMB124.2 million (US$19.3 million),a 14.3% increase from the corresponding period in 2020,primarily due to an increase in compensation and benefits.

Operating costs and expenses for other businesses for the third quarter of 2021 were RMB45.4 million (US$7.0 million),a 90.7% increase from the corresponding period in 2020,primarily due to increased depreciation expenses for our newly purchased headquarter buildings.

Operating Margin

Operating margin for the third quarter of 2021 was 25.2%,compared with 40.4% for the corresponding period in 2020,primarily due to increased compensation and benefits as well as selling expenses.

Operating margin for the wealth management business for the third quarter of 2021 was 21.9%,compared with 39.6% for the corresponding period in 2020,due to less expenses incurred in the corresponding periods of 2020 due to the COVID-19 pandemic as well as private equity products are no longer distributed through wealth management business,but rather invested in by asset management business.

Operating margin for the asset management business for the third quarter of 2021 was 48.5%,compared with 51.1% for the corresponding period in 2020,due to an increase in compensation and benefits.

Loss from operations for other businesses for the third quarter of 2021 was RMB31.4 million (US$4.9 million),compared with loss in the amount of RMB14.8 million in the corresponding period in 2020 due to reduced loan origination and more expenses from our purchased headquarter buildings.

Investment Income

Investment income for the third quarter of 2021 was RMB24.1 million (US$3.7 million),compared with RMB0.8 million for the corresponding period in 2020,due to a gain of fair value change from our certain equity investments.

Income Tax Expenses

Income tax expensesfor the third quarter of 2021 were RMB60.0 million (US$9.3 million),a 29.3% decrease from the corresponding period in 2020,primarily due to lower taxable income.

Income from Equity in Affiliates

Income from equity in affiliates for the third quarter of 2021 was RMB64.5 million (US$10.0 million),a 1,287.3% increase from the corresponding period in 2020,primarily due to net asset value increase of certain offshore funds of funds we manage and invest in as the general partner or manager.

Net Income

Net Income

- Net income for the third quarter of 2021 was RMB271.4 million (US$42.1 million),a 4.4% decrease compared to the corresponding period in 2020.

- Net margin for the third quarter of 2021 was 29.9%,down from 33.0% for the corresponding period in 2020.

- Net income attributable to Noah shareholders for the third quarter of 2021 was RMB273.2 million (US$42.4 million),a 4.3% decrease from the corresponding period in 2020.

- Net margin attributable to Noah shareholders for the third quarter of 2021 was 30.1%,down from 33.2% for the corresponding period in 2020.

- Net income attributable to Noah shareholders per basic and diluted ADSfor the third quarter of 2021 was RMB4.06 (US$0.63) and RMB4.04 (US$0.63),respectively,compared with RMB4.63 and RMB4.60 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 third quarter of 2021 was RMB284.2 million (US$44.1 million),a 4.2% decrease from the corresponding period in 2020.

- Non-GAAP net margin attributable to Noah shareholders for the third quarter of 2021 was 31.3%,down from 34.5% for the corresponding period in 2020.

- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the third quarter of 2021 was RMB4.20 (US$0.65),down from RMB4.78 for the corresponding period in 2020.

Balance Sheet and Cash Flow

As of September 30,the Company had RMB2,829.5 million (US$439.1 million) in cash and cash equivalents,compared with RMB2,686.4 million as of June 30,and RMB4,597.4 million as of September 30,2020.

Net cash inflow from the Company's operating activities during the third quarter of 2021 was RMB361.0 million (US$56.0 million),compared to net cash inflow of RMB360.8 million in the corresponding period in 2020.

Net cash outflow from the Company's investing activities during the third quarter of 2021 was RMB234.3 million (US$36.4 million),compared to net cash inflow of RMB165.7 million in the corresponding period in 2020. The cash outflow was primarily due to additional investment of certain long-term investment as well as increased loan originated in this quarter.

Net cash inflow from the Company's financing activities was RMB9.5 million (US$1.5 million) in the third quarter of 2021,compared to net cash outflow of RMB22.9 million in the corresponding period in 2020,primarily due to proceeds of cash exercise of employee options.

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 forecast reflects management's current business outlook and is subject to further change.

CONFERENCE CALL

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

The conference call may be accessed with the following details:

Conference calldetails

Date/Time

Tuesday,November 23,2021at 7:00 p.m.,U.S. Eastern Time

Wednesday,November 24,2021at 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 3Q21 Earnings Conference Call

Participant Password

1960485

A telephone replay will be available starting one hour after the end of the conference call until December 1,2021at +1-877-344-7529 (US Toll Free) and 1-412-317-0088 (International Toll). The replay access code is 10161700.

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 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 nine months of 2021,Noah distributed RMB76.2 billion (US$11.8 billion) of investment products. Through Gopher Asset Management,Noah had assets under management of RMB156.1 billion (US$24.2 billion) asof September 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 1,322 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 406,420 registered clients as of September 30,2021. As a leading alternative multi-asset manager in China,Gopher Asset Management manages private equity,public securities,multi-strategy and other investments denominated in RMB and 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 third quarter of 2021 ended September 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 RMB6.4434 to US$1.00,the effective noon buying rate for September 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.

____________________________________

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)

As of

June 30,

September 30,

2021

2021

2021

RMB'000

RMB'000

USD'000

Assets

Current assets:

Cash and cash equivalents

2,686,422

2,829,481

439,129

Restricted cash

10,067

3,227

501

Short-term investments

96,050

108,313

16,810

Accounts receivable,net

470,265

504,113

78,237

Loans receivable,net

515,194

634,774

98,515

Amounts due from related parties

643,972

594,047

92,195

Other current assets

239,997

209,933

32,581

Total current assets

4,661,967

4,883,888

757,968

Long-term investments,net

554,280

665,237

103,243

Investment in affiliates

1,258,829

1,296,559

201,223

Property and equipment,net

2,642,584

2,619,768

406,582

Operating lease right-of-use assets,net

256,597

242,660

37,660

Deferred tax assets

223,801

223,803

34,734

Other non-current assets

199,232

171,114

26,556

Total Assets

9,797,290

10,103,029

1,567,966

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses

491,716

514,420

79,837

Income tax payable

84,675

105,132

16,316

Deferred revenues

96,523

103,807

16,111

Contingent liabilities

460,315

444,935

69,053

Other current liabilities

554,383

529,049

82,107

Total current liabilities

1,687,612

1,697,343

263,424

Operating lease liabilities,non-current

169,167

155,882

24,193

Deferred tax liabilities

241,084

239,536

37,175

Other non-current liabilities

109,134

113,670

17,641

Total Liabilities

2,206,997

2,431

342,433

Equity

7,590,293

7,896,598

1,225,533

Total Liabilities and Equity

9,966

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)

Three months ended

September 30,

Change

2020

2021

2021

Revenues:

RMB'000

RMB'000

USD'000

Revenues from others:

One-time commissions

125,000

183,733

28,515

47.0%

Recurring service fees

200,075

259,364

40,253

29.6%

Performance-based income

27,217

26,796

4,159

(1.5%)

Other service fees

33,985

51,690

8,022

52.1%

Total revenues from others

386,277

521,583

80,949

35.0%

Revenues from funds Gopher

manages:

One-time commissions

71,112

32,113

4,984

(54.8%)

Recurring service fees

363,274

309,532

48,039

(14.8%)

Performance-based income

43,673

55,645

8,636

27.4%

Total revenues from funds

Gopher manages

478,059

397,290

61,659

(16.9%)

Total revenues

864,336

918,873

142,608

6.3%

Less: VAT related surcharges

(5,282)

(9,958)

(1,545)

88.5%

Net revenues

859,054

908,915

141,063

5.8%

Operating costs and expenses:

Compensation and benefits

Relationship managers

(144,977)

(178,589)

(27,717)

23.2%

Others

(217,549)

(281,220)

(43,645)

29.3%

Total compensation and

benefits

(362,526)

(459,809)

(71,362)

26.8%

Selling expenses

(69,882)

(114,307)

(17,740)

63.6%

General and administrative

expenses

(61,656)

(77,129)

(11,970)

25.1%

Provision for credit losses

(5,166)

(6,582)

(1,022)

27.4%

Other operating expenses

(23,129)

(33,030)

(5,126)

42.8%

Government grants

10,552

10,804

1,677

2.4%

Total operating costs and

expenses

(511,807)

(680,053)

(105,543)

32.9%

Income from operations

347,247

228,862

35,520

(34.1%)

Other income (expense):

Interest income

12,080

16,156

2,507

33.7%

Investment income

751

24,109

3,742

3,110.3%

Settlement expenses

-

(1,437)

(223)

N.A.

Other income (expense)

4,041

(824)

(128)

N.A.

Total other income

16,872

38,004

5,898

125.2%

Income before taxes and

income from equity in

affiliates

364,119

266,866

41,418

(26.7%)

Income tax expense

(84,944)

(60,045)

(9,319)

(29.3%)

Income from equity in affiliates

4,652

64,536

10,016

1,287.3%

Net income

283,827

271,357

42,115

(4.4%)

Less: net loss attributable to

non-controlling interests

(1,789)

(1,843)

(286)

3.0%

Net income attributable to

Noah shareholders

285,616

273,200

42,401

(4.3%)

Income per ADS,basic

4.63

4.06

0.63

(12.3%)

Income per ADS,diluted

4.60

4.04

0.63

(12.2%)

Margin analysis:

Operating margin

40.4%

25.2%

25.2%

Net margin

33.0%

29.9%

29.9%

Weighted average ADS

equivalent[1]:

Basic

61,723,592

67,253,930

67,930

Diluted

62,075,224

67,641,457

67,457

ADS equivalent outstanding at

end of period

61,752,197

60,132,192

60,192

[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

September

30,

September

30,

Change

2020

2021

2021

RMB'000

RMB'000

USD'000

Net income

283,115

(4.4%)

Other comprehensive income,net of tax:

Foreign currency translation adjustments

(108,684)

(32,357)

(5,022)

(70.2%)

Fair value fluctuation of available for sale

Investment (after tax)

-

109

17

N.A.

Comprehensive income

175,143

239,109

37,110

36.5%

Less: Comprehensive loss attributable to

non-controlling interests

(1,694)

(1,845)

(286)

8.9%

Comprehensive income attributable to

Noah shareholders

176,837

240,954

37,396

36.3%

Noah Holdings Limited

Supplemental Information

(unaudited)

As of

September 30,

2020

September 30,

2021

Change

Number of registered clients

350,409

406,420

16.0%

Number of relationship managers

1,204

1,322

9.8%

Number of cities in mainland China under

coverage

79

81

2.5%

Three months ended

September 30,

2021

Change

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

Number of active clients

4,466

5,606

25.5%

Number of active clients including mutual

fund-only clients

20,509

21,269

3.7%

Transaction value:

Private equity products

7,222

3,793

(47.5%)

Private secondary products

8,598

10,545

22.6%

Mutual fund products

12,246

8,942

(27.0%)

Other products

714

787

10.2%

Total transaction value

28,780

24,067

(16.4%)

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended September 30,2021

Wealth

Management

Business

Asset

Management

Business

Other

Businesses

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Revenues from others

One-time commissions

183,733

-

-

183,733

Recurring service fees

259,364

-

-

259,364

Performance-based income

26,796

-

-

26,796

Other service fees

30,856

-

20,834

51,690

Total revenues from others

500,749

-

20,834

521,583

Revenues from funds Gopher manages

One-time commissions

10,784

21,329

-

32,113

Recurring service fees

133,173

176,359

-

309,532

Performance-based income

11,080

44,565

-

55,645

Total revenues from funds Gopher

manages

155,037

242,253

-

397,290

Total revenues

655,786

242,253

20,834

918,873

Less: VAT related surcharges

(2,215)

(899)

(6,844)

(9,958)

Net revenues

653,571

241,354

13,990

908,915

Operating costs and expenses:

Compensation and benefits

Relationship managers

(172,469)

(6,120)

-

(178,589)

Others

(179,230)

(89,733)

(12,257)

(281,220)

Total compensation and benefits

(351,699)

(95,853)

(12,257)

(459,809)

Selling expenses

(92,288)

(13,584)

(8,435)

(114,307)

General and administrative

expenses

(57,096)

(13,669)

(6,364)

(77,129)

Provision for credit losses

(3,799)

(701)

(2,082)

(6,582)

Other operating expenses

(16,268)

(431)

(16,331)

(33,030)

Government grants

10,674

30

100

10,804

Total operating costs and expenses

(510,476)

(124,208)

(45,369)

(680,053)

Income (loss) from operations

143,095

117,146

(31,379)

228,862

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended September30,2020

Wealth

Asset

Management

Management

Other

Business

Business

Businesses

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Revenues from others

One-time commissions

124,645

355

-

125,000

Recurring service fees

199,423

652

-

200,075

Performance-based income

27,210

7

-

27,217

Other service fees

23,992

886

9,107

33,985

Total revenues from others

375,270

1,900

9,107

386,277

Revenues from funds Gopher

manages

One-time commissions

66,201

4,911

-

71,112

Recurring service fees

183,594

179,680

-

363,274

Performance-based income

6,751

36,922

-

43,673

Total revenues from funds Gopher manages

256,546

221,513

-

478,059

Total revenues

631,816

223,413

9,107

864,336

Less: VAT related surcharges

(4,123)

(1,003)

(156)

(5,282)

Net revenues

627,693

222,410

8,951

859,054

Operating costs and expenses:

Compensation and benefits

Relationship managers

(144,534)

-

(443)

(144,977)

Others

(118,854)

(83,269)

(15,426)

(217,549)

Total compensation and benefits

(263,388)

(83,869)

(362,526)

Selling expenses

(58,836)

(8,759)

(2,287)

(69,882)

General and administrative

expenses

(39,357)

(17,425)

(4,874)

(61,656)

Provision for credit losses

(6,898)

-

1,732

(5,166)

Other operating expenses

(17,298)

(1,848)

(3,983)

(23,129)

Government grants

6,471

2,597

1,484

10,552

Total operating costs and expenses

(379,306)

(108,704)

(23,797)

(511,807)

Income (loss) from operations

248,387

113,706

(14,846)

347,247

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)

Three months ended September 30,2021

Wealth

Management

Business

Asset

Management

Business

Other

Businesses

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Mainland China

482,033

165,602

20,834

668,469

Hong Kong

139,503

67,426

-

206,929

Others

34,250

9,225

-

43,475

Total revenues

655,873

Three months ended September 30,2020

Wealth

Management

Business

Asset

Management

Business

Other

Businesses

Total

RMB'000

RMB'000

RMB'000

RMB'000

Revenues:

Mainland China

512,820

184,449

9,107

706,376

Hong Kong

76,584

27,276

-

103,860

Others

42,412

11,688

-

54,100

Total revenues

631,336

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)

Three months ended

September 30,

Change

2020

2021

RMB'000

RMB'000

Net income attributable to Noah shareholders

285,200

(4.3%)

Adjustment for share-based compensation

14,351

12,423

(13.4%)

Add: settlement expenses

-

1,437

N.A.

Less: tax effect of adjustments

3,408

2,879

(15.5%)

Adjusted net income attributable to Noah shareholders

(non-GAAP)

296,559

284,181

(4.2%)

Net margin attributable to Noah shareholders

33.2%

30.1%

Non-GAAP net margin attributable to Noah shareholders

34.5%

31.3%

Net income attributable to Noah shareholders per ADS,

diluted

4.60

4.04

(12.2%)

Non-GAAP net income attributable to Noah shareholders

per ADS,diluted

4.78

4.20

(12.1%)

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