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NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2023

November 29, 2023 5:00 PM EST

SHANGHAI, Nov. 29, 2023 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading wealth management service provider in China offering comprehensive global investment and asset allocation advisory services primarily for high net worth investors, today announced its unaudited financial results for the third quarter of 2023.

THIRD QUARTER 2023 FINANCIAL HIGHLIGHTS

  • Net revenues for the third quarter of 2023 were RMB750.0 million (US$102.8 million), a 9.6% increase from the corresponding period in 2022, mainly due to increases in one-time commissions. Net revenues decreased by 20.4% compared with the second quarter of 2023, mainly due to a decrease in distribution of insurance products.

(RMB millions,

except percentages)

Q3 2022



Q3 2023



YoY Change

Wealth management

466.0



548.8



17.8 %

Asset management

200.3



191.4



(4.4 %)

Other businesses

18.2



9.8



(46.2 %)

Total net revenues

684.5



750.0



9.6 %

  • Income from operations for the third quarter of 2023 was RMB248.9 million (US$34.1 million), a 7.4% increase from the corresponding period in 2022, due to a 9.6% increase in net revenues; income from operations decreased by 28.8% compared with the second quarter of 2023, due to a 50.8% decrease in one-time commissions.

(RMB millions,

except percentages)


Q3 2022



Q3 2023



YoY Change

Wealth management


133.2



154.5



16.0 %

Asset management


117.7



106.5



(9.6 %)

Other businesses


(19.1)



(12.1)



(36.6 %)

Total income from operations


231.8



248.9



7.4 %

  • Net income attributable to Noah shareholders for the third quarter of 2023 was RMB233.3 million (US$32.0 million), a 27.9% increase from the corresponding period in 2022, mainly due to a 158.0% increase in interest income as a result of higher interest rate for our US dollar cash deposits. Net income attributable to Noah shareholders decreased by 26.0% compared with the second quarter of 2023, mainly due to a 20.4% decrease in net revenues.
  • Non-GAAP[1] net income attributable to Noah shareholders for the third quarter of 2023 was RMB232.4 million (US$31.9 million), a 21.8% increase from the corresponding period in 2022, and a 25.8% decrease from the second quarter of 2023.

THIRD QUARTER 2023 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, 2023 was 452,222, a 4.4% increase from September 30, 2022, and a 1.3% increase from June 30, 2023.
  • Total number of active clients[2] who transacted with us during the third quarter of 2023 was 9,489, a 58.1% decrease from the third quarter of 2022, and a 17.8% decrease from the second quarter of 2023.
  • Aggregate value of investment products distributed during the third quarter of 2023 was RMB22.3 billion (US$3.1 billion), a 24.2% increase from the third quarter of 2022, and a 21.2% increase from the second quarter of 2023, mainly due to an increase in the distribution of mutual fund products.

Three months ended September 30,


2022


2023

Product type

(RMB in billions, except percentages)

Mutual fund products

11.7


64.8 %


14.9


66.9 %

Private secondary products

3.3


18.5 %


5.7


25.4 %

Private equity products

2.5


13.9 %


0.7


3.1 %

Other products[3]

0.5


2.8 %


1.0


4.6 %

All products

18.0


100.0 %


22.3


100.0 %

  • Coverage network in mainland China covered 59 cities as of September 30, 2023, compared with 76 cities as of September 30, 2022 and 63 cities as of June 30, 2023, as we continue to streamline our domestic coverages and focus on strengthening our operations in central hub cities.
  • Number of relationship managers was 1,408 as of September 30, 2023, a 12.0% increase from September 30, 2022, and a 2.4% increase from June 30, 2023. Among which, we had 77 overseas relationship managers as of September 30, 2023, a 37.5% increase from June 30, 2023.

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-strategies investments denominated in RMB and other currencies.

  • Total assets under management as of September 30, 2023 were RMB154.9 billion (US$21.2 billion), a 1.3% decrease from June 30, 2023 and a 0.9% decrease from September 30, 2022, mainly due to exits in private equity investment products.

Investment type

As of 
June 30
2023



Growth



Distribution/ 
Redemption


As of
September 30
2023


(RMB billions, except percentages)

Private equity

132.9


84.7 %


0.2


1.4


131.7


85.0 %

Public securities[4]

11.6


7.4 %


4.2


3.6


12.2


7.9 %

Real estate

6.6


4.2 %


0.3


0.6


6.3


4.0 %

Multi-strategies

4.4


2.8 %


-


0.2


4.2


2.8 %

Others

1.4


0.9 %


-


0.9


0.5


0.3 %

All Investments

156.9


100.0 %


4.7


6.7


154.9


100.0 %

 

[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.

[2]  "Active clients" for a given period refers to registered high net worth investors who purchase investment products distributed or receive services provided by us during that given period.

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

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

 

Other Businesses

Our other businesses segment mainly provides more comprehensive services and investment products to our clients. 

Ms. Jingbo Wang, co-founder, Chairwoman and CEO of Noah, said, "I'm pleased to report a strong quarter with net revenues increasing 9.6% year-over-year to RMB750.0 million, primarily driven by one-time commissions from the distribution of insurance products. With a robust balance sheet and nearly RMB5 billion in cash and cash equivalents, ample liquidity, and a standardized product offering, we are well-positioned to fuel future growth and execute on our strategic plans. Our clean Assets Under Advisory (AUA) with no legacy private credit or residential real estate exposure has built us a solid reputation as a trusted advisor to mandarin-speaking HNW clients, which we are leveraging to drive our global expansion, as demand for global asset allocation grows. We continue to recruit Relationship Managers in Hong Kong and Singapore; meanwhile, our client service centre in Los Angeles is up and running, and we are preparing to commence operations in Dubai. We are also offering clients sophisticated market intelligence and asset allocation strategies through our innovative 'CCI' model (composed of the Chief Investment Office, Client Strategy Office, and Investment Product & Solution department) and its solutions-driven wealth management approach. As we rapidly approach the end of the year, we are increasingly confident in our abilities to carefully navigate an increasingly complex macroeconomic environment and create value for our shareholders."

THIRD QUARTER 2023 FINANCIAL RESULTS

Net Revenues

Net revenues for the third quarter of 2023 were RMB750.0 million (US$102.8 million), a 9.6% increase from the corresponding period in 2022, mainly due to increases in one-time commissions.

  • Wealth Management Business
    • Net revenues from one-time commissions for the third quarter of 2023 were RMB198.5 million (US$27.2 million), a 115.5% increase from the corresponding period in 2022, primarily due to an increase in distribution of insurance products.
    • Net revenues from recurring service fees for the third quarter of 2023 were RMB279.7 million (US$38.3 million), an 8.8% decrease from the corresponding period in 2022, due to a shift in product mix and clients' investment preferences, as well as less recurring service fees generated from private secondary and private equity products.
    • Net revenues from performance-based income for the third quarter of 2023 were RMB8.8 million (US$1.2 million), a 51.3% decrease from the corresponding period of 2022, primarily due to less performance-based income from private secondary products.
    • Net revenues from other service fees for the third quarter of 2023 were RMB61.7 million (US$8.5 million), a 25.5% increase from the corresponding period in 2022, primarily due to more value-added services Noah offered to its high net worth clients.
  • Asset Management Business
    • Net revenues from recurring service fees for the third quarter of 2023 were RMB186.3 million (US$25.5million), a 1.8% increase from the corresponding period in 2022, due to an increase in the amount of real estate investments managed by our Gopher New York team. 
    • Net revenues from performance-based income for the third quarter of 2023 were RMB5.1 million (US$0.7 million), a 46.3% decrease from the corresponding period in 2022, primarily due to a decrease in performance-based income from private equity investments managed by Gopher compared with the third quarter of 2022.
  • Other Businesses
    • Net revenues for the third quarter of 2023 were RMB9.8 million (US$1.3 million), compared with RMB18.2 million for the corresponding period in 2022, as we continued to wind down our loan portfolio.

Operating Costs and Expenses

Operating costs and expenses for the third quarter of 2023 were RMB501.1 million (US$68.7 million), a 10.7% increase from the corresponding period in 2022. Operating costs and expenses primarily consisted of compensation and benefits of RMB400.8 million (US$54.9 million), selling expenses of RMB119.7 million (US$16.4 million), general and administrative expenses of RMB67.4 million (US$9.2 million), provision for credit losses of RMB0.5 million (US$0.1 million) and other operating expenses of RMB19.0 million (US$2.6 million).

  • Operating costs and expenses for the wealth management business for the third quarter of 2023 were RMB394.2 million (US$54.0 million), a 18.5% increase from the corresponding period in 2022, primarily due to an increase in compensation and benefits, selling expenses and general and administrative expenses, as less expenses incurred during the corresponding quarter of the preceding year due to various pandemic restrictions.
  • Operating costs and expenses for the asset management business for the third quarter of 2023 were RMB84.9 million (US$11.6 million), a 2.9% increase from the corresponding period in 2022, primarily due to increased selling expenses.
  • Operating costs and expenses for other businesses for the third quarter of 2023 were RMB21.9 million (US$3.0 million), compared with RMB37.4 million from the corresponding period in 2022, due to decreased other operating expenses.

Operating Margin

Operating margin for the third quarter of 2023 was 33.2%, compared with 33.9% for the corresponding period in 2022.

  • Operating margin for the wealth management business for the third quarter of 2023 was 28.2%, compared with 28.6% for the corresponding period in 2022.
  • Operating margin for the asset management business for the third quarter of 2023 was 55.6%, compared with 58.8% for the corresponding period in 2022.
  • Loss from operation for other businesses for the third quarter of 2023 was RMB12.1 million (US$1.7 million), compared with an operating loss of RMB19.1 million for the corresponding period in 2022.

Investment Income/loss

Investment income for the third quarter of 2023 was RMB9.6 million (US$1.3 million), compared with investment loss of RMB7.2 million for the corresponding period in 2022.

Income Tax Expenses

Income tax expenses for the third quarter of 2023 were RMB68.5 million (US$9.4 million), a 34.1% increase from the corresponding period in 2022, primarily due to more taxable income compared with the third quarter of 2022. 

Loss from Equity in Affiliates

Loss from equity in affiliates for the third quarter of 2023 was RMB3.9 million (US$0.5 million), compared with loss from equity in affiliates of RMB22.4 million for the corresponding period in 2022, as we recorded such loss from decrease in net income of the funds of funds that we manage and invest in as the general partner or fund manager in 2022.

Net Income

  • Net Income
    • Net income for the third quarter of 2023 was RMB232.0 million (US$31.8 million), a 30.4% increase from the corresponding period in 2022.
    • Net margin for the third quarter of 2023 was 30.9%, up from 26.0% for the corresponding period in 2022.
    • Net income attributable to Noah shareholders for the third quarter of 2023 was RMB233.3 million (US$32.0 million), a 27.9% increase from the corresponding period in 2022.
    • Net margin attributable to Noah shareholders for the third quarter of 2023 was 31.1%, up from 26.7% for the corresponding period in 2022.
    • Net income attributable to Noah shareholders per basic and diluted ADS for the third quarter of 2023 was RMB3.36 (US$0.46) and RMB3.36 (US$0.46), respectively, up from RMB2.64 and RMB2.63 respectively, for the corresponding period in 2022.
  • Non-GAAP Net Income Attributable to Noah Shareholders
    • Non-GAAP net income attributable to Noah shareholders for the third quarter of 2023 was RMB232.4 million (US$31.9 million), a 21.8% increase from the corresponding period in 2022.
    • Non-GAAP net margin attributable to Noah shareholders for the third quarter of 2023 was 31.0%, compared with 27.9% for the corresponding period in 2022.
    • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the third quarter of 2023 was RMB3.35 (US$0.46), up from RMB2.76 for the corresponding period in 2022.

Balance Sheet and Cash Flow

As of September 30, 2023, the Company had RMB4,959.6 million (US$679.8 million) in cash and cash equivalents, compared with RMB4,740.4 million as of June 30, 2023 and RMB4,312.8 million as of September 30, 2022.

Net cash inflow from the Company's operating activities during the third quarter of 2023 was RMB404.4 million (US$55.4 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 third quarter of 2023 was RMB4.0 million (US$0.5 million), primarily due to collection of loan receivables.

Net cash outflow from the Company's financing activities was RMB196.3 million (US$26.9 million) in the third quarter of 2023, primarily due to payment of the final dividend.

CONFERENCE CALL 

The Company's senior management will host an earnings conference call to discuss its Q3 Results and recent business activities. Details of the conference call are as follows:

Conference title:

Noah Holdings 3Q23 Earnings Conference Call

Date/Time: 

Wednesday, November 29, 2023 at 8:00 p.m., U.S. Eastern Time

Thursday, November 30, 2023 at 9:00 a.m., Hong Kong Time

Dial in:



– Hong Kong Toll Free:

800-963976


– United States Toll Free:

1-888-317-6003


– Mainland China Toll Free:

4001-206115


– International Toll:

1-412-317-6061


Participant Password:

7559504


A telephone replay will be available starting approximately one hour after the end of the conference until December 6, 2023 at 1-877-344-7529 (US Toll Free) and 1-412-317-0088 (International Toll) with the access code 1973272.

A live and archived webcast of the conference call will be available at the Company's investor relations website under the "Financial Reports" 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 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 and HKEX: 6686) 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. Noah is a Cayman Islands holding company and carries on business in Hong Kong as Noah Holdings Private Wealth and Asset Management Limited. In the first nine months of 2023, Noah distributed RMB57.5 billion (US$7.9 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB154.9 billion (US$21.2 billion) as of September 30, 2023.

Noah's wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah's network covers major cities in mainland China, as well as offices in Hong Kong (China), Taiwan (China), New York, Silicon Valley and Singapore. A total of 1,408 relationship managers across 59 cities provide customized financial solutions for clients through this network, and meet their international investment needs. The Company's wealth management business had 452,222 registered clients as of September 30, 2023. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. The Company also provides other services.

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 2023 ended September 29, 2023 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 RMB7.296 to US$1.00, the effective noon buying rate for September 29, 2023 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. 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 announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), 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. These statements include, but are not limited to, estimates regarding the sufficiency of Noah's cash and cash equivalents and liquidity risk. 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 and the Hong Kong Stock Exchange. 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: 

Noah Holdings Limited
Melo Xi
Tel: +86-21-8035-8292
[email protected] 

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)



As of


June 30,


September
30, 


September
30, 


2023


2023


2023


RMB'000


RMB'000


USD'000

Assets







Current assets:








Cash and cash equivalents

4,740,434


4,959,550


679,763



Restricted cash

143,255


153,908


21,095



Short-term investments

445,485


407,872


55,904



Accounts receivable, net

534,885


445,386


61,045



Loans receivable, net

341,083


315,785


43,282



Amounts due from related parties

429,202


406,764


55,752



Other current assets 

200,588


189,473


25,969



Total current assets 

6,834,932


6,878,738


942,810


Long-term investments, net

980,257


995,746


136,478


Investment in affiliates

1,464,702


1,491,173


204,382


Property and equipment, net

2,525,732


2,510,839


344,139


Operating lease right-of-use assets, net

152,040


145,410


19,930


Deferred tax assets

436,240


435,632


59,708


Other non-current assets 

169,454


171,083


23,449

Total Assets

12,563,357


12,628,621


1,730,896

Liabilities and Equity







Current liabilities:








Accrued payroll and welfare expenses 

562,029


545,240


74,731



Income tax payable

141,693


166,959


22,884



Deferred revenues

71,440


88,377


12,113



Dividend payable

177,502


49


7



Other current liabilities

584,384


578,296


79,262



Contingent liabilities

592,097


595,137


81,570


Total current liabilities

2,129,145


1,974,058


270,567


Operating lease liabilities, non-current

79,267


77,418


10,611


Deferred tax liabilities

230,797


229,003


31,387


Other non-current liabilities

54,495


45,058


6,176


Total Liabilities 

2,493,704


2,325,537


318,741


Equity

10,069,653


10,303,084


1,412,155

Total Liabilities and Equity

12,563,357


12,628,621


1,730,896

 

Noah Holdings Limited



Condensed Consolidated Income Statements



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



(unaudited)








Three months ended



September 30,


September
30,


September 30,


Change



2022


2023


2023



Revenues:


RMB'000


RMB'000


USD'000



Revenues from others:









One-time commissions


92,551


199,286


27,314


115.3 %

Recurring service fees


195,429


171,408


23,493


(12.3 %)

Performance-based income


17,658


8,440


1,157


(52.2 %)

Other service fees


71,290


74,355


10,191


4.3 %

Total revenues from others


376,928


453,489


62,155


20.3 %

Revenues from funds Gopher
     manages:









One-time commissions


7,846


32


4


(99.6 %)

Recurring service fees


296,648


295,982


40,568


(0.2 %)

Performance-based income


10,109


5,543


760


(45.2 %)

Total revenues from funds
     Gopher manages


 

314,603


 

301,557


 

41,332


 

(4.1 %)

Total revenues


691,531


755,046


103,487


9.2 %

Less: VAT related surcharges 


(7,063)


(5,088)


(697)


(28.0 %)

Net revenues


684,468


749,958


102,790


9.6 %

Operating costs and expenses:









Compensation and benefits









Relationship managers


(108,971)


(185,748)


(25,459)


70.5 %

Others


(234,055)


(215,047)


(29,475)


(8.1 %)

Total compensation and
      benefits


(343,026)


(400,795)


(54,934)


16.8 %

Selling expenses


(75,995)


(119,707)


(16,407)


57.5 %

General and administrative
      expenses


(57,511)


(67,407)


(9,239)


17.2 %

Reversal of credit losses


5,274


525


72


(90.0 %)

Other operating expenses 


(25,084)


(18,982)


(2,602)


(24.3 %)

Government subsidies 


43,645


105,297


14,432


141.3 %

Total operating costs and
   expenses 


 

(452,697)


 

(501,069)


 

(68,678)


 

10.7 %

Income from operations 


231,771


248,889


34,112


7.4 %

Other income:









Interest income 


16,847


43,465


5,957


158.0 %

Investment (loss) income


(7,233)


9,640


1,321


N.A.

Other income


10,066


2,446


335


(75.7 %)

Total other income


19,680


55,551


7,613


182.3 %

Income before taxes and
  income from equity in affiliates


251,451


304,440


41,725


21.1 %

Income tax expense


(51,078)


(68,499)


(9,389)


34.1 %

Loss from equity in affiliates


(22,406)


(3,897)


(534)


(82.6 %)

Net income


177,967


232,044


31,802


30.4 %

Less: net loss attributable to
   non-controlling interests


 

(4,448)


 

(1,282)


 

(176)


 

(71.2 %)

Net income attributable to
   Noah shareholders 


182,415


233,326


31,978


27.9 %










Income per ADS, basic


2.64


3.36


0.46


27.3 %

Income per ADS, diluted


2.63


3.36


0.46


27.8 %

 

Margin analysis:









Operating margin


33.9 %


33.2 %


33.2 %



Net margin


26.0 %


30.9 %


30.9 %



 

Weighted average ADS
equivalent[1]:









Basic


 

69,212,818


 

69,472,282


 

69,472,282



Diluted


69,255,667


69,485,287


69,485,287



ADS equivalent outstanding at
end of period


 

62,558,122


 

63,154,215


 

63,154,215












 

[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,


September
30
,


Change


2022


2023


2023




RMB'000


RMB'000


USD'000



Net income

177,967


232,044


31,802


30.4 %

Other comprehensive income, net of tax:








     Foreign currency translation
    adjustments

107,640


21,405


2,934


(80.1 %)

Comprehensive income

285,607


253,449


34,736


(11.3 %)

    Less: Comprehensive loss attributable
to non-controlling interests

(4,428)


(1,169)


(160)


73.6 %

Comprehensive income attributable to
    Noah
shareholders

290,035


254,618


34,896


(12.2 %)

 

Noah Holdings Limited

Supplemental Information 

(unaudited) 



As of 




September 30
2022


September 30
2023


Change







Number of registered clients 

433,250


452,222


4.4 %

Number of relationship managers 

1,257


1,408


12.0 %

Number of cities in mainland China under
coverage

76


59


(22.4 %)


























Three months ended 




September 30,
2022


September 30
2023


Change


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

Number of active clients

22,641


9,489


(58.1 %)

Transaction value: 






Private equity products 

2,487


693


(72.1 %)

Private secondary products

3,326


5,670


70.5 %

Mutual fund products 

11,650


14,929


28.1 %

Other products

507


1,024


102.1 %

Total transaction value

17,970


22,316


24.2 %

   

Noah Holdings Limited

Segment Condensed Income Statements 

(unaudited)




Three months ended September 30, 2023


Wealth 
Management
Business


Asset 
Management
Business


Other 
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others








One-time commissions

199,286


-


-


199,286

Recurring service fees

171,408


-


-


171,408

Performance-based income

8,440


-


-


8,440

Other service fees

61,915


-


12,440


74,355

Total revenues from others

441,049


-


12,440


453,489

Revenues from funds Gopher
     manages








One-time commissions

-


32


-


32

Recurring service fees

109,368


186,614


-


295,982

Performance-based income

405


5,138


-


5,543

Total revenues from funds Gopher
     manages

109,773


191,784


-


301,557

Total revenues

550,822


191,784


12,440


755,046

Less: VAT related surcharges 

(2,074)


(389)


(2,625)


(5,088)

Net revenues

548,748


191,395


9,815


749,958

Operating costs and expenses:








Compensation and benefits








Relationship managers

(179,854)


(5,894)


-


(185,748)

Others

(144,256)


(64,041)


(6,750)


(215,047)

Total compensation and benefits

(324,110)


(69,935)


(6,750)


(400,795)

Selling expenses

(94,088)


(18,723)


(6,896)


(119,707)

General and administrative
     expenses 

 

(53,401)


 

(9,217)


 

(4,789)


 

(67,407)

(Provision for) reversal of credit
     losses

 

(894)


 

(400)


 

1,819


 

525

Other operating expenses

(11,677)


(298)


(7,007)


(18,982)

Government subsidies 

89,925


13,656


1,716


105,297

Total operating costs and expenses 

(394,245)


(84,917)


(21,907)


(501,069)

Income (loss) from operations

154,503


106,478


(12,092)


248,889

 

Noah Holdings Limited 


Segment Condensed Income Statements 


(unaudited) 





Three months ended September 30, 2022


Wealth 
Management
Business


Asset 
Management
Business


Other 
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Revenues from others








One-time commissions

92,551


-


-


92,551

Recurring service fees

195,429


-


-


195,429

Performance-based income

17,658


-


-


17,658

Other service fees

49,368


-


21,922


71,290

Total revenues from others

355,006


-


21,922


376,928

Revenues from funds Gopher
     manages








One-time commissions

-


7,846


-


7,846

Recurring service fees

112,636


184,012


-


296,648

Performance-based income

515


9,594


-


10,109

Total revenues from funds Gopher
      manages

 

113,151


 

201,452


-


 

314,603

Total revenues

468,157


201,452


21,922


691,531

Less: VAT related surcharges 

(2,212)


(1,139)


(3,712)


(7,063)

Net revenues

465,945


200,313


18,210


684,468

Operating costs and expenses:








Compensation and benefits








Relationship managers

(103,275)


(5,696)


-


(108,971)

Others

(165,245)


(58,758)


(10,052)


(234,055)

Total compensation and benefits

(268,520)


(64,454)


(10,052)


(343,026)

Selling expenses

(65,988)


(8,796)


(1,211)


(75,995)

General and administrative
     expenses 

 

(39,345)


 

(10,947)


 

(7,219)


 

(57,511)

Reversal of (provision for) credit
     losses

 

931


 

(14)


 

4,357


 

5,274

Other operating expenses

(1467)


(357)


(23,260)


(25,084)

Government subsidies 

41,610


2,005


30


43,645

Total operating costs and expenses 

(332,779)


(82,563)


(37,355)


(452,697)

Income (loss) from operations

133,166


117,750


(19,145)


231,771

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)




Three months ended September 30, 2023


Wealth 
Management
Business


Asset 
Management
Business


Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

333,911


116,355


12,440


462,706

Hong Kong

165,361


42,668


-


208,029

Others

51,550


32,761


-


84,311

Total revenues

 

550,822


 

191,784


12,440


755,046

 


Three months ended September 30, 2022


Wealth 
Management
Business


Asset 
Management
Business


Other
Businesses


Total


RMB'000


RMB'000


RMB'000


RMB'000









Revenues:








Mainland China

302,088


173,771


21,922


497,781

Hong Kong

125,240


6,945


-


132,185

Others

40,829


20,736


-


61,565

Total revenues

468,157


201,452


21,922


691,531

 

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, 


September 

30,


Change 


2022


2023




RMB'000


RMB'000









Net income attributable to Noah shareholders

182,415


233,326


27.9 %

Adjustment for share-based compensation

11,148


(1,161)


N.A.

Less: tax effect of adjustments

2,684


(281)


N.A.

Adjusted net income attributable to Noah shareholders
        (non-GAAP)

190,879


232,446


21.8 %

 

Net margin attributable to Noah shareholders

 

26.7 %


 

31.1 %



Non-GAAP net margin attributable to Noah shareholders

27.9 %


31.0 %









Net income attributable to Noah shareholders per ADS,
         diluted

2.63


3.36


27.8 %

Non-GAAP net income attributable to Noah shareholders
         per ADS, diluted

2.76


3.35


21.4 %

 

Cision View original content:https://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2023-302000666.html

SOURCE Noah Holdings Limited



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