NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2022
SHANGHAI,May 12,2022 --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 2022.
FIRST QUARTER 2022 FINANCIAL HIGHLIGHTS
Net revenues for the first quarter of 2022 were RMB795.7 million (US$125.5 million),a 35.0% decrease from the corresponding period in 2021,and a 36.9% decrease from the fourth quarter of 2021,mainly due to decreases in one-time commissions and performance-based incomes.
(RMB millions,
except percentages)
Q1 2021
Q1 2022
YoY Change
Wealth management
946.4
578.5
(38.9%)
Asset management
270.0
200.6
(25.7%)
Other businesses
8.3
16.6
101.1%
Total net revenues
1,224.7
795.7
(35.0%)
Income from operations for the first quarter of 2022 was RMB313.8 million (US$49.5 million),a 37.5% decrease from the corresponding period in 2021,due to the decreased net revenues for the first quarter of 2022,but a 137.2% increase from the fourth quarter of 2021,due to less expenses and provision of credit losses incurred,which is partially offset by a decrease in net revenues.
(RMB millions,
except percentages)
Q1 2021
Q1 2022
YoY Change
Wealth management
418.1
235.4
(43.7%)
Asset management
114.5
93.9
(18.0%)
Other businesses
(30.2)
(15.5)
(48.7%)
Total income from operations
502.4
313.8
(37.5%)
Net income attributable to Noah shareholders for the first quarter of 2022 was RMB305.2 million (US$48.2 million),a 32.8% decrease from the corresponding period in 2021,but an 8.5% increase from the fourth quarter of 2021.
Non-GAAP[1] net income attributable to Noah shareholders for the first quarter of 2022 was RMB313.5 million (US$49.5 million),a 32.1% decrease from the corresponding period in 2021,but an 8.2% increase from the fourth 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 and net of relevant tax impact,if any.See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.
FIRST QUARTER 2022 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. We primarily distribute private equity,private secondary,mutual funds and other products denominated in RMB and other currencies.
Total number of registered clients as of March 31,2022 was 415,082,an 8.1% increase from March 31,2021,and a 0.8% increase from December 31,2021.
Total number of active clients[2],which excluded mutual fund-only clients during the first quarter of 2022 was 2,818,a 55.3% decrease from the first quarter of 2021,and a 21.2% decrease from the fourth quarter of 2021. Including mutual fund-only clients,the number of clients who transacted with us during the first quarter of 2022 was 14,970,a 46.2% decrease from the first quarter of 2021,and a 14.2% decrease from the fourth quarter of 2021. The decreases were mainly related to the adverse performance of secondary market in the first quarter.
Aggregate value of investment products distributed during the first quarter of 2022 was RMB15.0 billion (US$2.4 billion),a 44.6% decrease from the first quarter of 2021,primarily due to a 68.7%,33.2% and 17.8% decrease of private secondary products,private equity products and mutual fund products,respectively. The aggregate value decreased by 28.7% compared with the fourth quarter of 2021,due to a 39.5% and 30.3% decrease of private secondary products and mutual fund products,respectively and partially offset by a 4.6% increase of private equity products.
Product type
Three months ended March 31,
2021
2022
(RMB in billions,except percentages)
Mutual fund products
8.6
31.9%
7.1
47.4%
Private secondary products
12.9
47.5%
4.0
26.9%
Private equity products
4.8
17.6%
3.2
21.2%
Other products[3]
0.8
3.0%
0.7
4.5%
All products
27.1
100.0%
15.0
100.0%
Coverage network in mainland China covered 83 cities as of March 31,2022,compared with 82 cities as of March 31,2021 and 84 cities as of December 31,2021.
Number of relationship managers was 1,281 as of March 31,a 2.8% increase from March 31,but a 2.7% decrease from December 31,2021.
[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] "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,public securities,real estate,multi-strategy and other investments denominated in RMB and other currencies.
Total assets under management as of March 31,2022 remained relatively stable in the amount of RMB156.1 billion (US$24.6 billion),a 1.3% increase from March 31,2021.
Investment type
As of
December 31,
2021
Growth
Allocation/
Redemption
As of
March 31,
2022
(RMB billions,except percentages)Private equity130.9
83.9%
4.8
3.0
132.7
85.0%Public securities[4]11.2
7.2%
0.1
0.9
10.4
6.6%Real estate6.6
4.3%
0.6
1.0
6.2
4.1%Multi-strategies5.9
3.8%
-
0.5
5.4
3.4%Others1.4
0.8%
-
-
1.4
0.9%
All Investments156.0
100.0%
5.5
5.4
156.1
100.0%
[4] The asset allocation/redemption of public securities also includes market appreciation or depreciation.
Other BusinessesOur other businesses segment has been transitioned to "Noah Digital International",and to provide more comprehensive services and investment products to our clients.Ms. Jingbo Wang,co-founder and CEO of Noah,said,"In the first quarter of 2022,I am happy to see the number of our core clients,diamond and black card,continued to grow at 7.3% and 30.6% year-on-year respectively amid volatile market environment,showing the effectiveness of our client-centric reform. Despite weaker transaction value in mutual funds and private secondary products,which is in line with the market trend,and thanks to the sophistication of our clients and our investor education efforts,we allocated 4.6% more long-duration private equity products in the quarter compared with the fourth quarter of 2021. With the successful implementation of our new compensation scheme in 2021,as well as strict cost control and strategic investment,our operating margin restored to nearly 40% in the first quarter. We are mindful of the global macro outlook and the impact of the recent COVID-19 lockdowns in China,and recommend our clients to adopt a Protection before Growth strategy in 2022,by reevaluating and proactively rebalancing the asset allocation to construct a well-positioned portfolio that is safe and effective. We remain confident in the resilience of Chinese economy,the growth of the wealth management and asset management industries here,as well as the support from our clients,and hope to meet the full-year non-GAAP net income guidance that we published in the last earnings release."
FIRST QUARTER 2022 FINANCIAL RESULTSNet RevenuesNet revenuesfor the first quarter of 2022 were RMB795.7 million (US$125.5 million),primarily due to decreases in one-time commissions and performance-based income,partially offset by increases in recurring service fees and other service fees.
- Wealth Management BusinessNet revenues from one-time commissions for the first quarter of 2022 were RMB92.6 million (US$14.6 million),a 68.4% decrease from the corresponding period in 2021,primarily due to a 68.7% decrease in transaction value of private secondary products that we distributed.
Net revenues from recurring service fees for the first quarter of 2022 were RMB310.8 million (US$49.0 million),a 0.9% decrease from the corresponding period in 2021.
Net revenues from performance-based income for the first quarter of 2022 were RMB156.0 million (US$24.6 million),compared with RMB325.6 million in the corresponding period of 2021. The decrease was primarily due to less performance-based income that were shared from private secondary products providers.
Net revenues from other service fees for the first quarter of 2022 were RMB19.0 million (US$3.0 million),compared with RMB13.9 million in the corresponding period in 2021,primarily due to more value-added services we offered to our high net worth clients.
- Asset Management BusinessNet revenues from one-time commissions for the first quarter of 2022 was RMB9.2 million (US$1.5 million),a 69.1% decrease from the corresponding period in 2021 due to less private equity products sold.
Net revenues from recurring service fees for the first quarter of 2022 were RMB173.3 million (US$27.3 million),a 7.5% increase from the corresponding period in 2021 due to increase in assets under management.
Net revenues from performance-based income for the first quarter of 2022 were RMB18.1 million (US$2.9 million),compared with RMB77.5 million in the corresponding period of 2021. The decrease was primarily due to less performance-based income realized from private equity products.
- Other BusinessesNet revenues for the first quarter of 2022 were RMB16.6 million (US$2.6 million),compared with RMB8.3 million from the corresponding period in 2021.
Operating Costs and ExpensesOperatingcosts andexpensesfor the first quarter of 2022 were RMB481.9 million (US$76.0 million),a 33.3% decrease from the corresponding period in 2021. Operating costs and expenses primarily consisted of compensation and benefits of RMB357.9 million (US$56.5 million),selling expenses of RMB59.9 million (US$9.5 million),general and administrative expenses of RMB58.2 million (US$9.2 million),reversal of provision of credit losses of RMB9.2 million (US$1.5 million) and other operating expenses of RMB29.6 million (US$4.7 million).
Operating costs and expenses for the wealth management business for the first quarter of 2022 were RMB343.1 million (US$54.1 million),a 35.1% decrease from the corresponding period in 2021,primarily due to less relationship manager compensation relating to transaction value of investment products distributed and less selling,general and administrative expenses incurred.
Operating costs and expenses for the asset management business for the first quarter of 2022 were RMB106.7 million (US$16.8 million),a 31.4% decrease from the corresponding period in 2021,primarily due to less performance fee compensation as well as less selling,general and administrative expenses incurred.
Operating costs and expenses for other businesses for the first quarter of 2022 were RMB32.1 million (US$5.1 million),a 16.6% decrease from the corresponding period in 2021,primarily due to less compensation and benefits.
Operating MarginOperating margin for the first quarter of 2022 was 39.4%,compared with 41.0% for the corresponding period in 2021.
Operating margin for the wealth management business for the first quarter of 2022 was 40.7%,compared with 44.2% for the corresponding period in 2021.
Operating margin for the asset management business for the first quarter of 2022 was 46.8%,compared with 42.4% for the corresponding period in 2021.
Loss from operation for the other businesses for the first quarter of 2022 was RMB15.5 million (US$2.4 million),compared with an operating loss of RMB30.2 million for the corresponding period in 2021,due to more revenues generated in the first quarter of 2022.
Investment IncomeInvestment incomefor the first quarter of 2022 was RMB25.4 million (US$4.0 million),compared with RMB34.4 million for the corresponding period in 2021.
Income Tax ExpensesIncome tax expensesfor the first quarter of 2022 were RMB77.3 million (US$12.2 million),a 40.4% decrease from the corresponding period in 2021. The decrease was primarily due to less taxable income.
Net Income- Net IncomeNet income for the first quarter of 2022 was RMB304.2 million (US$48.0 million),a 32.8% decrease from the corresponding period in 2021.
Net margin for the first quarter of 2022 was 38.2%,up from 37.0% for the corresponding period in 2021.
Net income attributable to Noah shareholders for the first quarter of 2022 was RMB305.2 million (US$48.2 million),a 32.8% decrease from the corresponding period in 2021.
Net margin attributable to Noah shareholders for the first quarter of 2022 was 38.4%,up from 37.1% for the corresponding period in 2021.
Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2022 was RMB4.54 (US$0.72) and RMB4.52 (US$0.71),respectively,compared with RMB6.77 and RMB6.72 for the corresponding period in 2021,respectively.-
Non-GAAP Net Income Attributable to Noah Shareholders Non-GAAP net income attributable to Noah shareholders for the first quarter of 2022 was RMB313.5 million (US$49.5 million),but an 8.6% increase from the fourth quarter of 2021.
Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2022 was 39.4%,up from 37.7% for the corresponding period in 2021.
Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2022 was RMB4.65 (US$0.73),down from RMB6.84 for the corresponding period in 2021.
Balance Sheet and Cash FlowAs of March 31,the Company had RMB3,899.9 million (US$615.2 million) in cash and cash equivalents,compared with RMB3,404.6 million as of December 31,2021 and RMB4,904.3 million as of March 31,respectively.Net cash inflow from the Company's operating activities during the first quarter of 2022 was RMB501.2 million (US$79.1 million),primarily due to operating cash inflow generated by net income and collection of accounts receivables.Net cash inflow from the Company's investing activities during the first quarter of 2022 was RMB9.3 million (US$1.5 million),primarily due to the collection of loans originated.Net cash outflow from the Company's financing activities was RMB12.1 million (US$1.9 million) in the first quarter of 2022,primarily due to paymentofassumedliabilityresultingfromcertainassetacquisition.
2022 FORECASTThe Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2022 will be in the range of RMB1.45 billion to RMB1.55 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 first quarter of 2022 unaudited financial results and recent business activities.The conference call may be accessed with the following details:
Conference call details Date/TimeWednesday,May 11,2022at 8:00 p.m.,U.S. Eastern TimeThursday,2022at 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 1Q22 Earnings Conference CallParticipant Password8316018A telephone replay will be available starting one hour after the end of the conference call untilMay 18,2022at +1-877-344-7529 (US Toll Free) or 1-412-317-0088 (International Toll). The replay access code is 9378127.A live and archived webcast of the conference call will be available at Noah's investor relations website under the Announcements & Events section at ir.noahgroup.com.
DISCUSSION ON 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 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 2022,Noah distributed RMB15.0 billion (US$2.4 billion) of investment products. Through Gopher Asset Management,Noah had assets under management of RMB156.1 billion (US$24.6 billion) asof March 31,2022.Noah's wealth management business primarily distributes private equity,public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,281 relationship managers across 83 cities in mainland China,and serves the international investment needs of its clients through offices in Hong Kong,Taiwan,New York,Silicon Valley and Singapore. The Company's wealth management business had 415,082 registered clients as of March 31,2022. Through Gopher Asset Management,Noahmanages private equity,multi-strategyand other investments denominated in Renminbi and other currencies.Noah also provides other businesses.For more information,please visit Noah at ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATIONIn this announcement,the unaudited financial results for the first quarter of 2022 ended March 31,2022 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ 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 RMB6.3393 to US$1.00,the effective noon buying rate for March 31,2022 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 2022 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; investment risks associated with investment products distributed to Noah's investors,including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; 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,
2021
2022
2022
RMB'000
RMB'000
USD'000
Assets
Current assets:
Cash and cash equivalents3,404,603
3,899,892
615,193
Restricted cash510
512
81
Short-term investments92,803
64,347
10,150
Accounts receivable,net808,029
396,485
62,544
Loans receivable,net595,766
578,355
91,233
Amounts due from related parties451,389
532,533
84,005
Other current assets163,710
170,813
26,945
Total current assets5,516,810
5,642,937
890,151
Long-term investments,net668,572
699,174
110,292
Investment in affiliates1,402,083
1,430,346
225,632
Property and equipment,net2,580,935
2,544,521
401,388
Operating lease right-of-use assets,net223,652
212,993
33,599
Deferred tax assets335,905
335,911
52,989
Other non-current assets161,832
162,206
25,587
Total Assets10,889,789
11,028,088
1,739,638
Liabilities and Equity
Current liabilities:
Accrued payroll and welfare expenses946,547
880,353
138,872
Income tax payable190,260
236,915
37,372
Deferred revenues63,631
79,970
12,615
Other current liabilities649,255
518,214
81,746
Contingent liabilities433,345
431,080
68,001
Total current liabilities2,283,038
2,146,532
338,606
Operating lease liabilities,non-current130,956
120,790
19,054
Deferred tax liabilities234,134
232,848
36,731
Other non-current liabilities100,020
83,931
13,240
Total Liabilities2,748,148
2,584,101
407,631
Equity8,141,641
8,443,987
1,332,007
Total Liabilities and Equity10,638
Noah Holdings LimitedCondensed Consolidated Income Statements(In RMB'000,except for ADS data,per ADS data and percentages)(unaudited)
Three months ended
March 31,
Change
2021
2022
2022
Revenues:RMB'000
RMB'000
USD'000
Revenues from others:
One-time commissions278,704
81,154
12,802
(70.9%)Recurring service fees220,513
193,379
30,505
(12.3%)Performance-based income276,524
142,911
22,544
(48.3%)Other service fees23,713
38,760
6,114
63.5%Total revenues from others799,454
456,204
71,965
(42.9%)Revenues from funds Gopher
manages:
One-time commissions46,146
21,155
3,337
(54.2%)Recurring service fees256,697
293,052
46,228
14.2%Performance-based income128,556
32,067
5,058
(75.1%)Total revenues from funds Gopher
manages431,399
346,274
54,623
(19.7%)Total revenues1,230,853
802,478
126,588
(34.8%)Less: VAT related surcharges(6,117)
(6,786)
(1,070)
10.9%
Net revenues1,224,736
795,692
125,518
(35.0%)Operating costs and expenses:
Compensation and benefits
Relationship manager
compensation(206,872)
(109,995)
(17,351)
(46.8%)Others(375,253)
(247,910)
(39,107)
(33.9%)Total compensation and benefits(582,125)
(357,905)
(56,458)
(38.5%)Selling expenses(83,455)
(59,906)
(9,450)
(28.2%)General and administrative
expenses(80,285)
(58,207)
(9,182)
(27.5%)(Provision for) reversal of credit
losses(3,407)
9,198
1,451
N.A.Other operating expenses(27,088)
(29,635)
(4,675)
9.4%Government subsidies54,014
14,558
2,296
(73.0%)Total operating costs and
expenses(722,346)
(481,897)
(76,018)
(33.3%)
Income from operations502,390
313,795
49,500
(37.5%)Other income:
Interest income22,927
12,637
1,993
(44.9%)Investment income34,361
25,373
4,002
(26.2%)Other expense(486)
(278)
(44)
(42.8%)Total other income56,802
37,732
5,951
(33.6%)Income before taxes and income
from equity in affiliates559,192
351,527
55,451
(37.1%)Income tax expense(129,846)
(77,336)
(12,199)
(40.4%)Income from equity in affiliates23,513
30,020
4,736
27.7%
Net income452,859
304,211
47,988
(32.8%)Less: net loss attributable to non-
controlling interests(1,234)
(1,031)
(163)
(16.5%)
Net income attributable to Noah
shareholders454,093
305,242
48,151
(32.8%)
Income per ADS,basic6.77
4.54
0.72
(32.9%)Income per ADS,diluted6.72
4.52
0.71
(32.7%)
Margin analysis:
Operating margin41.0%
39.4%
39.4%
Net margin37.0%
38.2%
38.2%
Weighted average ADS
equivalent[1]:
Basic67,091,780
67,235,270
67,270
Diluted67,572,038
67,480,826
67,826
ADS equivalent outstanding at
end of period59,976,690
60,173,494
60,494
[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
March 31,
2021
March 31,
2022
March 31,
2022
Change
RMB'000
RMB'000
USD'000
Net income452,988
(32.8%)Other comprehensive income,net of tax:
Foreign currency translation
adjustments8,409
(9,148)
(1,443)
N.A.Comprehensive income461,268
295,063
46,545
(36.0%)Less: Comprehensive loss attributable
to non-controlling interests(1,201)
(882)
(139)
(26.6%)Comprehensive income attributable to
Noah shareholders462,469
295,945
46,684
(36.0%)
Noah Holdings LimitedSupplemental Information(unaudited)
As of
March 31,
2022
Change
Number of registered clients384,021
415,082
8.1%Number of relationship managers1,246
1,281
2.8%Number of cities under coveragein
mainland China82
83
1.2%
Three months ended
March 31,
2022
Change
(in millions of RMB,except number of active clients and
percentages)Number of active clients6,299
2,818
(55.3%)Number of active clients including mutual
fund-only clients27,846
14,970
(46.2%)Transaction value:
Private equity products4,763
3,180
(33.2%)Private secondary products12,864
4,027
(68.7%)Mutual fund products8,645
7,110
(17.8%)Other products820
679
(17.2%)Total transaction value27,092
14,996
(44.6%)
Noah Holdings LimitedSegment Condensed Income Statements(unaudited)
Three months ended March 31,2022
Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total
RMB'000
RMB'000
RMB'000
RMB'000
Revenues:
Revenues from others:
One-time commissions81,154
-
-
81,154Recurring service fees193,379
-
-
193,379Performance-based income142,911
-
-
142,911Other service fees19,113
-
19,647
38,760Total revenues from others436,557
-
19,647
456,204Revenues from funds Gopher
manages:
One-time commissions11,859
9,296
-
21,155Recurring service fees118,871
174,181
-
293,052Performance-based income13,868
18,199
-
32,067Total revenues from funds Gopher
manages144,598
201,676
-
346,274Total revenues581,155
201,676
19,647
802,478Less: VAT related surcharges(2,711)
(1,039)
(3,036)
(6,786)
Net revenues578,444
200,637
16,611
795,692Operating costs and expenses:
Compensation and benefits
Relationship manager
compensation(99,688)
(10,307)
-
(109,995)Other compensations(148,135)
(89,517)
(10,258)
(247,910)Total compensation and benefits(247,823)
(99,824)
(10,258)
(357,905)Selling expenses(52,043)
(4,234)
(3,629)
(59,906)General and administrative
expenses(42,754)
(10,029)
(5,424)
(58,207)(Provision for) reversal of credit
losses(603)
(227)
10,028
9,198Other operating expenses(5,516)
(1,270)
(22,849)
(29,635)Government subsidies5,639
8,885
34
14,558Total operating costs and expenses(343,100)
(106,699)
(32,098)
(481,897)
Income (loss) from operations235,344
93,938
(15,487)
313,795
Noah Holdings LimitedSegment Condensed Income Statements (unaudited) Three months ended March 31,2021
Wealth ManagementBusiness
Asset ManagementBusiness
Other Businesses
Total
RMB'000
RMB'000
RMB'000
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 operations 418,135
114,475
(30,220)
502,390
Noah Holdings LimitedSupplement Revenue Information for Segment (unaudited)
Three months ended March 31,2022
Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total
RMB'000
RMB'000
RMB'000
RMB'000
Revenues:
Mainland China425,237
166,774
19,647
611,658Hong Kong90,431
11,991
-
102,422Others65,487
22,911
-
88,398
Total revenues581,478
Three months ended March 31,2021
Wealth
Management
Business
Asset
Management
Business
Other
Businesses
Total
RMB'000
RMB'000
RMB'000
RMB'000
Revenues:
Mainland China697,471
187,621
8,306
893,398Hong Kong230,621
76,431
-
307,052Others23,198
7,205
-
30,403
Total revenues951,853
Noah Holdings LimitedReconciliation of GAAP to Non-GAAP Results(In RMB,except for per ADS data and percentages)(unaudited)[5]
Three months ended
March 31,
Change
2021
2022
RMB'000
RMB'000
Net income attributable to Noah shareholders454,242
(32.8%)
Adjustment for share-based compensation10,144
10,846
6.9%
Less: Tax effect of adjustments2,354
2,607
10.7%
Adjusted net income attributable to Noah
shareholders (non-GAAP)461,883
313,481
(32.1%)
Net marginattributable to Noah shareholders37.1%
38.4%
Non-GAAP net margin attributable to Noah
shareholders37.7%
39.4%
Net income attributable to Noah shareholders per
ADS,diluted6.72
4.52
(32.7%)
Non-GAAP net income attributable to Noah
shareholders per ADS,diluted6.84
4.65
(32.0%)
[5] Noah's Non-GAAP financial measures reflect the respective most directly comparable GAAP financial measures excluding the effects of all forms of share-based compensation and net of relevant tax impact,if any.
View original content:https://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-first-quarter-of-2022-301544807.html
