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Form 6-K Noah Holdings Ltd For: Mar 14

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March 14, 2022 4:45 PM EDT

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

 

FORM 6-K

 

 

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of March 2022

 

Commission File Number: 001-34936

 

 

 

Noah Holdings Limited

 

 

 

No. 1687 Changyang Road, Changyang Valley, Building 2

Shanghai 200090, People’s Republic of China

(86) 21 8035 9221

(Address of Principal Executive Offices)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

   

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Noah Holdings Limited

   
  By: /s/ Qing Pan
  Name: Qing Pan
  Title: Chief Financial Officer

 

Date: March 14, 2022

 

2

 

  

Exhibit Index

 

Exhibit No.   Description.
Exhibit 99.1   Press Release

 

3

 

 

Exhibit 99.1

 

NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED PRELIMINARY

 

FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2021

 

SHANGHAI, March 15, 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 its unaudited preliminary1 financial results for the fourth quarter of 2021 and the full year ended December 31, 2021.

 

FOURTH QUARTER 2021 FINANCIAL HIGHLIGHTS

 

·Net revenues for the fourth quarter of 2021 were RMB1,260.1 million (US$197.7 million), a 32.2% increase from the corresponding period in 2020, and a 38.6% increase compared with third quarter of 2021, mainly due to increases in one-time commissions.

 

(RMB millions, except percentages)

  Q4 2020   Q4 2021   YoY Change 
Wealth management   643.2    969.3    50.7%
Asset management   306.0    273.8    (10.5)%
Other businesses   4.0    17.0    325.5%
Total net revenues   953.2    1,260.1    32.2%

  

·Income from operations for the fourth quarter of 2021 was RMB132.3 million (US$20.8 million), a 60.6% decrease from the corresponding period in 2020, due to our budgeted continuing strategic investments on talents and client experiences in 2021 and provision for credit loss for our lending business in the fourth quarter of 2021.

 

(RMB millions, except percentages)

  Q4 2020   Q4 2021   YoY Change 
Wealth management   206.3    183.6    (11.0)%
Asset management   151.8    80.8    (46.8)%
Other businesses   (22.6)   (132.1)   481.9%
Total income from operations   335.5    132.3    (60.6)%

  

·Net income attributable to Noah shareholders for the fourth quarter of 2021 was RMB281.3 million (US$44.1 million), compared to net loss attributable to Noah shareholders of RMB1,573.5 million from the corresponding period in 2020, due to the recognition of a one-off settlement expense related to the settlement plan for investors of certain credit funds involving Camsing announced on August 25, 2020 (the “Camsing settlement”) in the amount of RMB1,828.9 million in 2020, and a 3.0% increase compared with the third quarter of 2021.

 

 

1 As of the date hereof, the Company is still in the process of reviewing the financial results of the funds of funds we manage and invest in as the general partner or manager. Any changes in the fair value of those investments could affect the income from equity in affiliates, net income, net income attributable to Noah shareholders, income per ADS and the balance of investments in affiliates in Noah’s consolidated financial statements. If there will be any fair value adjustments associated with the above, which have not been included in these unaudited preliminary financial results in this press release, the Company will include such adjustments in the audited consolidated financial statements in its Form 20-F for the fiscal year 2021 and subsequent reporting if necessary.

 

1

 

 

·Non-GAAP2 net income attributable to Noah shareholders for the fourth quarter of 2021 was RMB289.6 million (US$45.4 million), a 10.3% increase from the corresponding period in 2020, and a 1.9% increase from the third quarter of 2021.

  

FULL YEAR 2021 FINANCIAL HIGHLIGHTS

 

·Net revenues in the full year 2021 were RMB4,293.1 million (US$673.7 million), a 29.9% increase from the full year 2020, mainly due to increases in one-time commissions, recurring service fees as well as performance-based income.

 

(RMB millions, except percentages)

  FY  2020   FY  2021   YoY Change 
Wealth management   2,366.3    3,194.9    35.0%
Asset management   875.5    1,041.5    19.0%
Other businesses   64.0    56.7    (11.4)%
Total net revenues   3,305.8    4,293.1    29.9%

  

·Income from operations in the full year 2021 was RMB1,198.9 million (US$188.1 million), a 4.7% decrease from the full year 2020, due to budgeted continuing strategic investments on talents and client experiences in 2021 as well as less selling and general and administrative expense incurred in 2020 due to the pandemic. We also recorded provision for credit loss for our lending business in 2021.

 

(RMB millions, except percentages)

  FY  2020   FY  2021   YoY Change 
Wealth management   817.5    921.5    12.7%
Asset management   459.8    485.2    5.5%
Other businesses   (18.8)   (207.8)   1,004.8%
Total income from operations   1,258.5    1,198.9    (4.7)%

  

·Net income attributable to Noah shareholders in the full year 2021 was RMB1,314.1 million (US$206.2 million), compared to net loss attributable to Noah shareholders of RMB745.2 million from the full year 2020, due to the recognition of a one-off settlement expense related to the Camsing settlement in the amount of RMB1,828.9 million in 2020.

 

·Non-GAAP net income attributable to Noah shareholders in the full year 2021 was RMB1,372.7 million (US$215.4 million), a 21.5% increase from the full year 2020.

 

FOURTH QUARTER AND FULL YEAR 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 December 31, 2021 was 411,981, a 14.2% increase from December 31, 2020 and a 1.4% increase compared with September 30, 2021.

 

 

2 Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring settlement expense and net of relevant tax impact, if any. See “Reconciliation of GAAP to Non-GAAP Results” at the end of this press release.

 

2

 

  

·Total number of active clients3 which excluded mutual fund-only clients during the fourth quarter of 2021 was 3,575, a 32.1% decrease from the corresponding period in 2020, affected by volatile market condition. Counting in mutual fund-only clients, the total number of clients who transacted with us during the fourth quarter of 2021 was 17,456, a 10.5% decrease from the corresponding quarter of 2020. Total number of active clients which excluded mutual fund-only clients during the full year 2021 was 12,831, a 5.5% increase from the full year 2020, and total number of active clients counting in mutual fund-only clients during the full year 2021 was 42,764, a 25.0% increase from the full year 2020.

 

·Aggregate value of investment products distributed during the fourth quarter of 2021 was RMB21.0 billion (US$3.3 billion), a 1.3% decrease from the corresponding period in 2020, mainly due to a volatile market conditions in the quarter.

 

Product type  Three months ended December 31, 
   2020   2021 
         
   (RMB in billions, except percentages) 
Mutual fund products   7.2    34.0%   10.2    48.5%
Private secondary products   8.0    37.4%   6.7    31.6%
Private equity products   5.2    24.3%   3.0    14.5%
Other products4   0.9    4.3%   1.1    5.4%
                     
All products   21.3    100.0%   21.0    100.0%

  

·Aggregate value of investment products distributed during the full year 2021 was RMB97.2 billion (US$15.3 billion), a 2.6% increase from the full year 2020, due to an increase in the distribution of private secondary products.

 

Product type  Twelve months ended December 31, 
   2020   2021 
         
   (RMB in billions, except percentages) 
Mutual fund products   38.0    40.1%   37.1    38.2%
Private secondary products   35.2    37.1%   37.8    38.9%
Private equity products   17.9    18.9%   18.1    18.6%
Other products   3.6    3.9%   4.2    4.3%
All products   94.7    100.0%   97.2    100.0%

  

·Coverage network in mainland China included 84 cities as of December 31, 2021, compared with 81 cities as of September 30, 2021, and 80 cities as of December 31, 2020.

 

·Number of relationship managers was 1,316 as of December 31, 2021, a 0.5% decrease from September 30, 2021, and a 6.9% increase from December 31, 2020.

 

 

3 “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.

 

4 Other products” refers to other investment products, which includes insurance products, multi-strategies products and others.

 

3

 

 

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 December 31, 2021 remained relatively stable in the amount of RMB156.0 billion (US$24.5 billion), compared with September 30, 2021 and grew 2.1% from December 31, 2020.

 

Investment type  As of
September 30,
2021		   Growth  

Allocation/

Redemption

   As of
December 31,
2021		 
                 
   (RMB billions, except percentages) 
Private equity   130.4    83.5%   2.3    1.8    130.9    83.9%
Public securities5   11.1    7.1%   1.2    1.1    11.2    7.2%
Real estate   7.4    4.7%   0.1    0.9    6.6    4.3%
Multi-strategies   5.8    3.8%   0.2    0.1    5.9    3.8%
Others   1.4    0.9%   -    -    1.4    0.8%
All Investments   156.1    100.0%   3.8    3.9    156.0    100.0%

  

Investment type  As of
December 31,
2020		   Growth  

Allocation/

Redemption

   As of
December 31,
2021		 
                 
   (RMB billions, except percentages) 
Private equity   117.7    77.0%   15.3    2.1    130.9    83.9%
Public securities   9.8    6.4%   5.4    4.0    11.2    7.2%
Real estate   12.7    8.3%   0.3    6.4    6.6    4.3%
Multi-strategies   7.1    4.6%   1.0    2.2    5.9    3.8%
Others6   5.5    3.7%   -    4.1    1.4    0.8%
All Investments   152.8    100.0%   22.0    18.8    156.0    100.0%

  

Other Businesses

 

Our 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, “Despite the market volatilities we experienced, Noah delivered record high net revenues in the fourth quarter of 2021. Total net revenues rose by 29.9% year-on-year, supported by higher one-time commissions, recurring service fees and performance based income. Our internal strategic investments into digitalization, talent acquisition and client services were all in line with the budget, and helped the Group to report a non-GAAP net income of RMB1.4 billion for the full year, exceeding the higher end of the guidance we had expected. Our clients remained active, with the number of total active clients increased by 25.0% year-on-year in 2021, and I am very happy to see the number of diamond card and black card clients grew 18.2% in 2021, indicating the positive results of our upgraded Noah Triangle client service model and our “client-centric” reform. I remain confident in Noah’s capabilities and that our reform will help to gain more market share and core clients, as well as set a solid structural foundation for long-term growth.”

 

 

5 The allocation/redemption of public securities also includes market appreciation or depreciation.

6 Since the first quarter of 2021, we reclassified all remaining mezzanine financing products linked to corporate merger and acquisitions and buy outs from credit to private equity in the amount of RMB4.7 billion, considering its nature is more akin to equity than credit. We have also revised the comparative period presentation to conform to current period presentation.

 

4

 

 

FOURTH QUARTER 2021 FINANCIAL RESULTS

 

Net Revenues

 

Net revenues for the fourth quarter of 2021 were RMB1,260.1 million (US$197.7 million), a 32.2% increase from the corresponding period in 2020, primarily driven by increased one-time commissions, recurring service fees and other service fees, and partially offset by decreased performance-based income.

 

·Wealth Management Business

 

·Net revenues from one-time commissions for the fourth quarter of 2021 were RMB472.0 million (US$74.1 million), a 100.2% increase from the corresponding period in 2020 due to an increase in insurance products distributed in fourth quarter of 2021.

 

·Net revenues from recurring service fees for the fourth quarter of 2021 were RMB417.0 million (US$65.4 million), a 40.3% 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 income for the fourth quarter of 2021 were RMB47.7 million (US$7.5 million), compared with RMB80.9 million from the corresponding period of 2020, primarily due to a decrease in performance-based income from public securities products.

 

·Net revenues from other service fees for the fourth quarter of 2021 were RMB32.6 million (US$5.1 million), a 11.2% increase from the corresponding period in 2020.

 

·Asset Management Business

 

·Net revenues from recurring service fees for the fourth quarter of 2021 were RMB141.1 million (US$22.1 million), a 1.7% increase from the corresponding period in 2020. The increase was primarily due to an increase in assets under management.

 

·Net revenues from performance-based income for the fourth quarter of 2021 were RMB125.4 million (US$19.7 million), remained relatively stable compared with the corresponding period in 2020, primarily generated from offshore private equity funds.

 

·Other Businesses

 

·Net revenues for the fourth quarter of 2021 were RMB17.0 million (US$2.7 million), compared with RMB4.0 million in the corresponding period in 2020.

 

Operating Costs and Expenses

 

Operating costs and expenses for the fourth quarter of 2021 were RMB1,127.8 million (US$177.0 million), a 82.6% increase from the corresponding period in 2020. Operating costs and expenses primarily consisted of compensation and benefits of RMB731.2 million (US$114.7 million), selling expenses of RMB139.9 million (US$22.0 million), general and administrative expenses of RMB148.0 million (US$23.2 million), provision of credit losses of RMB100.9 million (US$15.8 million) and other operating expenses of RMB19.6 million (US$3.1 million).

 

·Operating costs and expenses for the wealth management business for the fourth quarter of 2021 were RMB785.7 million (US$123.3 million), a 79.8% increase from the corresponding period in 2020 primarily due to an increase in compensation and benefits, selling expenses and general and administrative expenses.

 

·Operating costs and expenses for the asset management business for the fourth quarter of 2021 were RMB193.0 million (US$30.3 million), a 25.2% increase from the corresponding period in 2020, primarily due to an increase in selling expenses and provision for credit losses.

 

·Operating costs and expenses for other businesses for the fourth quarter of 2021 were RMB149.0 million (US$23.4 million), a 458.9% increase from the corresponding period in 2020, primarily due to a provision of credit loss of RMB85.6 million for loan receivables.

 

5

 

 

Operating Margin

 

Operating margin for the fourth quarter of 2021 was 10.5%, compared with 35.2% for the corresponding period in 2020.

 

·Operating margin for the wealth management business for the fourth quarter of 2021 was 18.9%, compared with 32.1% for the corresponding period in 2020, due to continuously budgeted investments into the acquisition and retaining of talents, as well as the upgrade of client experiences and multiple systems.

 

·Operating margin for the asset management business for the fourth quarter of 2021 was 29.5%, compared with 49.6% for the corresponding period in 2020 due to continuously budgeted investments in client events activity and talents.

 

·Loss from other businesses for the fourth quarter of 2021 was RMB132.1 million (US$20.7 million), compared with RMB22.7 million in the corresponding period of 2020 due to increased provision for credit losses.

 

Investment Income

 

Investment Income for the fourth quarter of 2021 was RMB3.5 million (US$0.5 million), compared with investment loss of RMB109.4 million for the corresponding period in 2020. The loss in 2020 was primarily due to an impairment of certain long-term investment.

 

Income Tax Expenses

 

Income tax expenses for the fourth quarter of 2021 were RMB35.3 million (US$5.5 million), a 28.8% increase from the corresponding period in 2020, primarily due to higher taxable income.

 

Income from Equity in Affiliates

 

Income from equity in affiliates for the fourth quarter of 2021 was RMB160.5 million (US$25.2 million), compared with RMB39.8 million in the corresponding period in 2020. The increase was primarily due to fair value increase of the underling investments of the funds that we manage. We are still reviewing the financial results of the funds of funds we manage and invest in as the general partner or manager. Although we do not anticipate material variance barring unexpected fluctuations in the portfolio companies’ performance, any potential changes in fair value of those investments could affect the income from equity in affiliates.

 

Net Income

 

·Net Income

 

·Net income for the fourth quarter of 2021 was RMB273.9 million (US$43.0 million), compared to net loss of RMB1,572.9 million from the corresponding period in 2020.

 

·Net margin for the fourth quarter of 2021 was 21.7%, compared with negative net margin for the corresponding period in 2020.

 

·Net income attributable to Noah shareholders for the fourth quarter of 2021 was RMB281.3 million (US$44.1 million), compared to net loss attributable to Noah shareholders of RMB1,573.5 million from the corresponding period in 2020.

 

6

 

 

·Net margin attributable to Noah shareholders for the fourth quarter of 2021 was 22.3%, compared with negative for the corresponding period in 2020.

  

·Net income attributable to Noah shareholders per basic and diluted ADS for the fourth quarter of 2021 was RMB4.18 (US$0.66) and RMB4.16 (US$0.65), respectively, compared with net loss attributable to Noah shareholders per basic and diluted ADS of RMB24.92, for the corresponding period in 2020.

 

·Non-GAAP Net Income Attributable to Noah Shareholders

 

·Non-GAAP net income attributable to Noah shareholders for the fourth quarter of 2021 was RMB289.6 million (US$45.4 million), a 10.3% increase from the corresponding period in 2020.

 

·Non-GAAP net margin attributable to Noah shareholders for the fourth quarter of 2021 was 23.0%, down from 27.5% for the corresponding period in 2020.

 

·Non-GAAP net income attributable to Noah shareholders per diluted ADS for the fourth quarter of 2021 was RMB4.28 (US$0.67), up from RMB4.13 for the corresponding period in 2020.

 

FULL YEAR 2021 FINANCIAL RESULTS

 

Net Revenues

 

Net revenues for the full year 2021 were RMB4,293.1 million (US$673.7 million), a 29.9% increase from the full year 2020, primarily due to an increase in one-time commissions, recurring service fees and performance-based income, and partially offset by a decrease in other service fees.

 

·Wealth Management Business

 

·Net revenues from one-time commissions for 2021 were RMB1,174.6 million (US$184.3 million), a 54.1% increase from 2020, primarily due to more insurance products that we distributed.

 

·Net revenues from recurring service fees for 2021 were RMB1,461.8 million (US$229.4 million), a 14.4% increase from 2020. The increase was primarily due to the cumulative effect of investment products with recurring service fees previously distributed.

 

·Net revenues from performance-based income for 2021 were RMB466.6 million (US$73.2 million), a 128.5% increase from 2020, primarily due to an increase in performance-based income from public securities products.

 

·Net revenues from other service fees for 2021 were RMB91.9 million (US$14.4 million), a 25.2% decrease from 2020, primarily due to less service fees recorded from lending business since we significantly reduced this business since the second half year of 2019.

 

·Asset Management Business

 

·Net revenues from recurring service fees for 2021 were RMB636.4 million (US$99.9 million), a 0.9% decrease from 2020.

 

·Net revenues from performance-based income for 2021 were RMB313.6 million (US$49.2 million), a 71.1% increase from 2020, primarily due to an increase in performance-based income from private equity fund products.

 

·Other Businesses

 

·Net revenues for 2021 were RMB56.7 million (US$8.9 million), a 11.4% decrease from 2020.

 

7

 

  

Operating costs and expenses

 

Operating costs and expenses for 2021 were RMB3,094.2 million (US$485.5 million), a 51.1% increase from the full year 2020. Operating costs and expenses for the full year 2021 primarily consisted of compensation and benefits of RMB2,168.9 million (US$340.3 million), selling expenses of RMB437.1 million (US$68.6 million), general and administrative expenses of RMB383.3 million (US$60.2 million), provision for credit losses of RMB113.0 million (US$17.7 million) and other operating expenses of RMB107.8 million (US$16.9 million).

 

·Operating costs and expenses for the wealth management business for 2021 were RMB2,273.4 million (US$356.7 million), a 46.8% increase from 2020, primarily due to an increase in compensation and benefits, as well as selling expenses.

 

·Operating costs and expenses for the asset management business for 2021 were RMB556.2 million (US$87.3 million), a 33.8% increase from 2020, primarily due to an increase in compensation and benefits, as well as selling expenses.

 

·Operating costs and expenses for other businesses for 2021 were RMB264.6 million (US$41.5 million), a 219.5% increase from 2020, primarily due to an increase in provision for credit losses.

  

Operating Margin

 

Operating margin for the full year 2021 was 27.9%, compared to 38.1% for the full year 2020.

 

·Operating margin for the wealth management business for 2021 was 28.8%, compared to 34.5% for 2020, mainly due to continuously budgeted investments in our talents and client experiences as well as less expenses incurred in 2020 due to the COVID-19 pandemic.

 

·Operating margin for the asset management business for 2021 was 46.6%, compared to 52.5% for 2020, due to less expenses incurred in 2020 due to the COVID-19 pandemic.

 

·Loss from other businesses for 2021 was RMB207.8 million (US$32.6 million), compared with RMB18.8 million for 2020 due to increased provision of credit losses.

 

Investment Income

 

Investment income for the full year 2021 was RMB65.4 million (US$10.3 million), compared with investment loss of RMB86.4 million for the full year 2020. The investment loss was primarily due to an impairment of certain long-term investment.

 

Income Tax Expenses

 

Income tax expenses for the full year 2021 were RMB293.9 million (US$46.1 million), a 13.7% increase from the full year 2020 due to higher taxable income.

 

Income from Equity in Affiliates

 

Income from equity in affiliates for the full year 2021 was RMB302.0 million (US$47.4 million), compared with RMB100.3 million in the corresponding period in 2020. The increase was primarily due to fair value increase of the underling investments of the funds that we manage. We are still reviewing the financial results of the funds of funds we manage and invest in as the general partner or manager. Although we do not anticipate material variance barring unexpected fluctuations in the portfolio companies’ performance, any potential changes in fair value of those investments could affect the income from equity in affiliates.

 

8

 

 

Net Income

 

·Net Income

 

·Net income for the full year 2021 was RMB1,306.1 million (US$205.0 million), compared with net loss of RMB743.5 million from the full year 2020.

 

·Net margin for the full year 2021 was 30.4%, compared with negative net margin for the full year 2020.

 

·Net income attributable to Noah shareholders for the full year 2021 was RMB1,314.1 million (US$206.2 million), compared to net loss attributable to Noah shareholders of RMB745.2 million for the full year 2020.

 

·Net margin attributable to Noah shareholders for the full year 2021 was 30.6%, compared with negative for the full year 2020.

 

·Net income attributable to Noah shareholders per basic and diluted ADS for the full year 2021 was RMB19.56 (US$3.07) and RMB19.45 (US$3.05), respectively, compared with net loss attributable to Noah shareholders per basic and diluted ADS of RMB12.01, for the full year 2020.

 

·Non-GAAP Net Income Attributable to Noah Shareholders

 

·Non-GAAP net income attributable to Noah shareholders for the full year 2021 was RMB1,372.7 million (US$215.4 million), a 21.5% increase from the full year 2020.

 

·Non-GAAP net margin attributable to Noah shareholders for the full year 2021 was 32.0%, down from 34.2% for the full year 2020.

 

·Non-GAAP net income attributable to Noah shareholders per diluted ADS for the full year 2021 was RMB20.32 (US$3.19), up from RMB18.12 for the full year 2020.

 

BALANCE SHEET AND CASH FLOW

 

As of December 31, 2021, the Company had RMB3,404.6 million (US$534.2 million) in cash and cash equivalents, compared with RMB5,005.2 million as of December 31, 2020 and RMB2,829.5 million as of September 30, 2021.

 

Net cash inflow from the Company’s operating activities during the fourth quarter of 2021 was RMB659.2 million (US$103.4 million), compared to RMB568.3 million in the corresponding period in 2020. Net cash inflow from the Company’s operating activities during the full year 2021 was RMB1,521.8 million (US$238.8 million), compared to RMB796.3 million during the full year 2020, the variance was mainly due to an increase in net income.

 

Net cash outflow from the Company’s investing activities during the fourth quarter of 2021 was RMB67.4 million (US$10.6 million), compared to net cash inflow of RMB189.5 million in the corresponding period in 2020. Net cash outflow from the Company’s investing activities during the full year 2021 was RMB2,572.1 million (US$403.6 million), compared to net cash inflow of RMB352.6 million during the full year 2020, due to cash payment for the acquisition of our new headquarter in 2021.

 

Net cash inflow from the Company’s financing activities was RMB20.9 million (US$3.3 million) in the fourth quarter of 2021, compared to net cash outflow of RMB255.4 million in the corresponding period in 2020, primarily due to the share repurchase program that started in December 2020. Net cash outflow from the Company’s financing activities during the full year 2021 was RMB513.1 million (US$80.5 million), compared to RMB371.4 million cash outflow during the full year 2020. The cash outflow for both 2020 and 2021 was mainly due to the share repurchase program that lasted from December 2020 till February 2021.

 

9

 

 

NOTE TO FINANCIAL INFORMATION

 

As of the date of this press release, we are still in the process of reviewing the financial results of the funds of funds we manage and invest in as the general partner or manager.  Any changes in the fair value of those investments could affect the income from equity in affiliates, net income, net income attributable to Noah shareholders, income per ADS and the balance of investments in affiliates in our consolidated financial statements. While not included in the unaudited preliminary fourth quarter 2021 financial results in this press release, we will include any such fair value adjustments in the audited consolidated financial statements in our 2021 Form 20-F and will make a subsequent announcement when our review concludes, as appropriate.

 

2022 FORECAST

 

Although the pandemic continued to impact the distribution of offshore insurance products and the market remain volatile, the Company is happy to see a growing demand in domestic insurance products, a higher performance based income from PE/VC products we previously distributed, a stabilized AUM after a successful standardization transformation, as well as an increase in diamond and black card clients. Therefore, we are reasonably optimistic about the growth in the number of core clients, net revenues as well as take rate in 2022. Meanwhile, we remain committed to our investments in technology, investment research capabilities and talents to realize growth potentials and capture market opportunities. Given the above considerations, the non-GAAP net income attributable to Noah shareholders for the full year 2021 will be in the range of RMB1.45 billion to RMB1.55 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 fourth quarter and full year 2021 unaudited financial results and recent business activities.

 

The conference call may be accessed with the following details:

 

Conference call details

 

Date/Time:

 

Monday, March 14, 2022 at 8:00 p.m., U.S. Eastern Time

Tuesday, March 15, 2022 at 8:00 a.m., Hong Kong Time

Dial in details:  
- United States Toll Free +1 888-317-6003
- Mainland China Toll Free 4001-206-115
- Hong Kong Toll Free 800-963-976
- International +1-412-317-6061
Conference Title: Noah Holdings 4Q21 Earnings Conference Call
Participant Password: 6337898

 

A telephone replay will be available starting approximately one hour after the end of the conference call until March 22, 2022 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 1095282.

 

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

 

10

 

 

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, non-recurring settlement expense 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 full year 2021, Noah distributed RMB97.2 billion (US$15.3 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB156.0 billion (US$24.5 billion) as of December 31, 2021.

 

Noah’s wealth management business primarily distributes diversified investment products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,316 relationship managers across 84 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. As a leading alternative multi-asset manager in China, Gopher Asset Management develops and manages assets ranging from private equity, public securities, real estate, multi-strategy to other investments denominated in Renminbi 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 fourth quarter of 2021 and full year ended December 31, 2021 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.3726 to US$1.00, the effective noon buying rate for December 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

 

11

 

 

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. 

 

Contacts:

 

Noah Holdings Limited

Sonia Han

Tel: +86-21-8035-9221

[email protected]

 

 

 

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

 

12

 

  

Noah Holdings Limited
Condensed Consolidated Balance Sheets
(unaudited)

 

   As of 
   September 30,   December 31,   December 31, 
   2021   2021   2021 
    RMB'000    RMB'000    USD'000 
Assets               
Current assets:               
Cash and cash equivalents   2,829,481    3,404,603    534,257 
Restricted cash   3,227    510    80 
Short-term investments   108,313    92,803    14,563 
Accounts receivable, net   504,113    808,029    126,797 
Loans receivable, net   634,774    595,766    93,489 
Amounts due from related parties   594,047    451,389    70,833 
Other current assets   209,933    163,710    25,690 
Total current assets   4,883,888    5,516,810    865,709 
Long-term investments, net   665,237    668,572    104,914 
Investment in affiliates   1,296,559    1,402,083    220,017 
Property and equipment, net   2,619,768    2,580,935    405,005 
Operating lease right-of-use assets, net   242,660    223,652    35,096 
Deferred tax assets   223,803    335,905    52,711 
Other non-current assets   171,114    161,832    25,395 
Total Assets   10,103,029    10,889,789    1,708,847 
Liabilities and Equity               
Current liabilities:               
Accrued payroll and welfare expenses   514,420    946,547    148,534 
Income tax payable   105,132    190,260    29,856 
Deferred revenues   103,807    63,631    9,985 
Contingent liabilities   444,935    433,345    68,001 
Other current liabilities   529,049    649,255    101,882 
Total current liabilities   1,697,343    2,283,038    358,258 
Operating lease liabilities, non-current   155,882    130,956    20,550 
Deferred tax liabilities   239,536    234,134    36,741 
Other non-current liabilities   113,670    100,020    15,695 
Total Liabilities   2,206,431    2,748,148    431,244 
Equity   7,896,598    8,141,641    1,277,603 
Total Liabilities and Equity   10,103,029    10,889,789    1,708,847 

 

13

 

 

Noah Holdings Limited
Condensed Consolidated Income Statements
(unaudited)

 

   Three months ended 
   December 31,   December 31,   December 31,    
   2020   2021   2021   Change 
  RMB'000   RMB'000   USD'000     
Revenues:                
Revenues from others:                    
One-time commissions   229,744    472,566    74,156    105.7%
Recurring service fees   199,372    214,835    33,712    7.8%
Performance-based income   81,488    42,115    6,609    (48.3)%
Other service fees   39,361    54,296    8,520    37.9%
Total revenues from others   549,965    783,812    122,997    42.5%
Revenues from funds Gopher manages:                    
One-time commissions   43,531    9,886    1,551    (77.3)%
Recurring service fees   239,144    346,747    54,412    45.0%
Performance-based income   126,382    131,988    20,712    4.4%
Total revenues from funds Gopher manages   409,057    488,621    76,675    19.5%
Total revenues   959,022    1,272,433    199,672    32.7%
Less: VAT related surcharges   (5,805)   (12,379)   (1,943)   113.2%
Net revenues   953,217    1,260,054    197,729    32.2%
Operating costs and expenses:                    
Compensation and benefits                    
Relationship manager compensation   (185,926)   (382,160)   (59,969)   105.5%
Others   (259,872)   (349,004)   (54,766)   34.3%
Total compensation and benefits   (445,798)   (731,164)   (114,735)   64.0%
Selling expenses   (94,648)   (139,906)   (21,954)   47.8%
General and administrative expenses   (84,036)   (148,015)   (23,227)   76.1%
Reversal (Provision) for credit losses   1,789    (100,858)   (15,827)   N.A. 
Other operating expenses   (22,579)   (19,644)   (3,083)   (13.0)%
Government grants   27,518    11,821    1,855    (57.0)%
Total operating costs and expenses   (617,754)   (1,127,766)   (176,971)   82.6%
Income from operations   335,463    132,288    20,758    (60.6)%
Other income (expense):                    
Interest income   22,537    14,571    2,287    (35.3)%
Investment (loss) income   (109,397)   3,469    544    N.A. 
Settlement (expense) reversal   (1,828,907)   719    113    N.A. 
Other expense   (5,033)   (2,313)   (363)   (54.0)%
Total other (expense) income   (1,920,800)   16,446    2,581    N.A. 
                     
(Loss) income before taxes and income from equity in affiliates   (1,585,337)   148,734    23,339    N.A. 
Income tax expense   (27,430)   (35,329)   (5,544)   28.8%
Income from equity in affiliates   39,836    160,510    25,188    302.9%
Net (loss) income   (1,572,931)   273,915    42,983    N.A. 
Less: net income (loss) attributable to non-controlling interests   576    (7,397)   (1,161)     N.A. 
Net (loss) income attributable to Noah shareholders   (1,573,507)   281,312    44,144    N.A. 
(Loss) income  per ADS, basic   (24.92)   4.18    0.66    N.A. 
(Loss) Income per ADS, diluted   (24.92)   4.16    0.65    N.A. 
                     
Margin analysis:                    
Operating margin   35.2%   10.5%   10.5%     
Net margin   (165.0)%   21.7%   21.7%     
                     
Weighted average ADS equivalent[1]:                    
Basic   63,149,844    67,348,790    67,348,790      
Diluted   63,149,844    67,700,437    67,700,437      
ADS equivalent outstanding at end of period   61,088,680    60,338,054    60,338,054      

 

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

 

14

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(unaudited)

 

   Twelve months ended 
   December 31,   December 31,   December 31,    
   2020   2021   2021   Change 
  RMB'000   RMB'000   USD'000     
Revenues:                
Revenues from others:                    
One-time commissions   679,014    1,130,894    177,462    66.5%
Recurring service fees   700,157    913,700    143,379    30.5%
Performance-based income   180,529    391,903    61,498    117.1%
Other service fees   196,151    161,982    25,419    (17.4)%
Total revenues from others   1,755,851    2,598,479    407,758    48.0%
Revenues from funds Gopher manages:                    
One-time commissions   129,823    140,522    22,051    8.2%
Recurring service fees   1,230,042    1,195,309    187,570    (2.8)%
Performance-based income   208,996    392,290    61,559    87.7%
Total revenues from funds Gopher manages   1,568,861    1,728,121    271,180    10.2%
Total revenues   3,324,712    4,326,600    678,938    30.1%
Less: VAT related surcharges   (18,886)   (33,506)   (5,258)   77.4%
Net revenues   3,305,826    4,293,094    673,680    29.9%
Operating costs and expenses:                    
Compensation and benefits                    
Relationship manager compensation   (613,999)   (920,896)   (144,509)   50.0%
Others   (890,013)   (1,247,984)   (195,836)   40.2%
Total compensation and benefits   (1,504,012)   (2,168,880)   (340,345)   44.2%
Selling expenses   (271,692)   (437,131)   (68,595)   60.9%
General and administrative expenses   (277,879)   (383,321)   (60,151)   37.9%
Provision for credit losses   (8,083)   (112,959)   (17,726)   1,297.5%
Other operating expenses   (99,040)   (107,844)   (16,923)   8.9%
Government grants   113,356    115,939    18,193    2.3%
Total operating costs and expenses   (2,047,350)   (3,094,196)   (485,547)   51.1%
Income from operations   1,258,476    1,198,898    188,133    (4.7)%
Other income (expense):                    
Interest income   67,317    71,866    11,277    6.8%
Investment (loss) income   (86,369)   65,426    10,267    N.A. 
Settlement expenses   (1,828,907)   (19,908)   (3,124)   (98.9)%
Other income (expense)   4,164    (18,240)   (2,862)   N.A. 
Total other (expense) income   (1,843,795)   99,144    15,558    N.A. 
(Loss) Income before taxes and income from equity in affiliates   (585,319)   1,298,042    203,691    N.A. 
Income tax expense   (258,460)   (293,940)   (46,126)   13.7%
Income from equity in affiliates   100,257    301,979    47,387    201.2%
Net (loss) income   (743,522)   1,306,081    204,952    N.A. 
Less: net income (loss) attributable to non-controlling interests   1,703    (8,050)   (1,263)     N.A. 
Net (loss) income attributable to Noah shareholders   (745,225)   1,314,131    206,215    N.A. 
(Loss) income per ADS, basic   (12.01)   19.56    3.07    N.A. 
(Loss) income per ADS, diluted   (12.01)   19.45    3.05    N.A. 
                     
Margin analysis:                    
Operating margin   38.1%   27.9%   27.9%     
Net margin   (22.5)%   30.4%   30.4%     
                     
Weighted average ADS equivalent[1]:                    
Basic   62,040,878    67,171,636    67,171,636      
Diluted   62,040,878    67,563,546    67,563,546      
ADS equivalent outstanding at end of period   61,088,680    60,338,054    60,338,054      

 

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

 

15

 

 

Noah Holdings Limited
Condensed Comprehensive Income Statements
(unaudited)

 

   Three months ended     
   December 31,   December 31,   December 31,    
   2020   2021   2021   Change 
    RMB'000    RMB'000    USD'000      
Net (loss) income   (1,572,931)   273,915    42,983    N.A. 
Other comprehensive income, net of tax:                    
Foreign currency translation adjustments   (98,385)   (14,094)   (2,212)   (85.7)%
Fair value fluctuation of available for sale Investment (after tax)   -    (243)   (38)   N.A. 
Comprehensive (loss) income   (1,671,316)   259,578    40,733    N.A. 
Less: Comprehensive income (loss) attributable to non-controlling interests   469    (7,366)   (1,156)   N.A. 
Comprehensive (loss) income attributable to Noah shareholders   (1,671,785)   266,944    41,889    N.A. 

 

Noah Holdings Limited

Condensed Comprehensive Income Statements
(unaudited)

 

   Twelve months ended     
   December 31,   December 31,   December 31,    
   2020   2021   2021   Change 
    RMB'000    RMB'000    USD'000      
Net (loss) income   (743,522)   1,306,081    204,952    N.A. 
Other comprehensive income, net of tax:                    
Foreign currency translation adjustments   (176,910)   (60,851)   (9,549)   (65.6)%
Fair value fluctuation of available for sale Investment (after tax)   771    -    -    N.A. 
Comprehensive (loss) income   (919,661)   1,245,230    195,403    N.A. 
Less: Comprehensive income (loss) attributable to non-controlling interests   1,727    (8,001)   (1,256)   N.A. 
Comprehensive (loss) income attributable to Noah shareholders   (921,388)   1,253,231    196,659    N.A. 

 

16

 

 

 

Noah Holdings Limited

Supplemental Information

(unaudited)

 

   As of     
   December 31,
2020		   December 31,
2021		   Change 
Number of registered clients   360,637    411,981    14.2%
Number of relationship managers   1,231    1,316    6.9%
Number of cities in mainland China under coverage   80    84    5.0%

 

   Three months ended     
   December 31,
2020		   December 31,
2021		   Change 
             
   (in millions of RMB, except number of active clients and
percentages)		 
Number of active clients   5,268    3,575    (32.1)%
Number of active clients including mutual fund-only clients   19,501    17,456    (10.5)%
Transaction value:               
Private equity products   5,172    3,041    (41.2)%
Private secondary products   7,977    6,659    (16.5)%
Mutual fund products   7,240    10,207    41.0%
Other products   930    1,136    22.2%
Total transaction value   21,319    21,043    (1.3)%

 

   Twelve months ended     
   December 31,
2020		   December 31,
2021		   Change 
             
   (in millions of RMB, except number of active clients and
percentages)		 
Number of active clients   12,161    12,831    5.5%
Number of active clients including mutual fund-only clients   34,213    42,764    25.0%
Transaction value:               
Private equity products   17,876    18,069    1.1%
Private secondary products   35,162    37,776    7.4%
Mutual fund products   37,981    37,169    (2.1)%
Other products   3,717    4,189    12.7%
Total transaction value   94,736    97,203    2.6%

 

17

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)  

 

   Three months ended December 31, 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   472,566    -    -    472,566 
Recurring service fees   214,835    -    -    214,835 
Performance-based income   42,115    -    -    42,115 
Other service fees   32,814    -    21,482    54,296 
Total revenues from others   762,330    -    21,482    783,812 
Revenues from funds Gopher manages                    
One-time commissions   2,488    7,398    -    9,886 
Recurring service fees   204,919    141,828    -    346,747 
Performance-based income   5,905    126,083    -    131,988 
Total revenues from funds Gopher manages   213,312    275,309    -    488,621 
Total revenues   975,642    275,309    21,482    1,272,433 
Less: VAT related surcharges   (6,358)   (1,496)   (4,525)   (12,379)
Net revenues   969,284    273,813    16,957    1,260,054 
Operating costs and expenses:                    
Compensation and benefits                    
Relationship managers   (371,788)   (10,372)   -    (382,160)
Others   (204,386)   (127,455)   (17,163)   (349,004)
Total compensation and benefits   (576,174)   (137,827)   (17,163)   (731,164)
Selling expenses   (112,287)   (19,709)   (7,910)   (139,906)
General and administrative expenses   (103,142)   (22,247)   (22,626)   (148,015)
Provision for credit losses   (2,691)   (12,574)   (85,593)   (100,858)
Other operating expenses   (2,507)   (687)   (16,450)   (19,644)
Government grants   11,101    13    707    11,821 
Total operating costs and expenses   (785,700)   (193,031)   (149,035)   (1,127,766)
Income (loss) from operations   183,584    80,782    (132,078)   132,288 

 

18

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

 

   Three months ended December 31, 2020 
   Wealth
Management
Business		   Asset
Management
Business		   Other
Businesses		   Total 
   RMB'000   RMB'000   RMB'000   RMB'000 
Revenues:                    
Revenues from others                    
One-time commissions   229,418    326    -    229,744 
Recurring service fees   198,347    1,025    -    199,372 
Performance-based income   81,351    137    -    81,488 
Other service fees   29,484    5,804    4,073    39,361 
Total revenues from others   538,600    7,292    4,073    549,965 
Revenues from funds Gopher manages                    
One-time commissions   7,710    35,821    -    43,531 
Recurring service fees   100,651    138,493    -    239,144 
Performance-based income   -    126,382    -    126,382 
Total revenues from funds Gopher manages   108,361    300,696    -    409,057 
Total revenues   646,961    307,988    4,073    959,022 
Less: VAT related surcharges   (3,770)   (1,957)   (78)   (5,805)
Net revenues   643,191    306,031    3,995    953,217 
Operating costs and expenses:                    
Compensation and benefits                    
Relationship managers   (185,471)   -    (455)   (185,926)
Others   (120,349)   (124,714)   (14,809)   (259,872)
Total compensation and benefits   (305,820)   (124,714)   (15,264)   (445,798)
Selling expenses   (84,160)   (9,822)   (666)   (94,648)
General and administrative expenses   (58,837)   (18,291)   (6,908)   (84,036)
Provision for doubtful credit looses   3,113    (251)   (1,073)   1,789 
Other operating expenses   (18,287)   (1,435)   (2,857)   (22,579)
Government grants   27,100    316    102    27,518 
Total operating costs and expenses   (436,891)   (154,197)   (26,666)   (617,754)
Income (loss) from operations   206,300    151,834    (22,671)   335,463 

 

19

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

 

   Twelve months ended December 31, 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   1,130,653    241    -    1,130,894 
Recurring service fees   912,506    1,194    -    913,700 
Performance-based income   391,903    -    -    391,903 
Other service fees   92,352    1,390    68,240    161,982 
Total revenues from others   2,527,414    2,825    68,240    2,598,479 
Revenues from funds Gopher manages                    
One-time commissions   50,247    90,275    -    140,522 
Recurring service fees   557,094    638,215    -    1,195,309 
Performance-based income   77,218    315,072    -    392,290 
Total revenues from funds Gopher manages   684,559    1,043,562    -    1,728,121 
Total revenues   3,211,973    1,046,387    68,240    4,326,600 
Less: VAT related surcharges   (17,076)   (4,923)   (11,507)   (33,506)
Net revenues   3,194,897    1,041,464    56,733    4,293,094 
Operating costs and expenses:                    
Compensation and benefits                    
Relationship managers   (900,921)   (19,975)   -    (920,896)
Others   (753,368)   (430,059)   (64,557)   (1,247,984)
Total compensation and benefits   (1,654,289)   (450,034)   (64,557)   (2,168,880)
Selling expenses   (354,128)   (55,790)   (27,213)   (437,131)
General and administrative expenses   (270,253)   (70,686)   (42,382)   (383,321)
Provision for credit losses   (6,490)   (13,275)   (93,194)   (112,959)
Other operating expenses   (53,616)   (4,347)   (49,881)   (107,844)
Government grants   65,368    37,905    12,666    115,939 
Total operating costs and expenses   (2,273,408)   (556,227)   (264,561)   (3,094,196)
Income (loss) from operations   921,489    485,237    (207,828)   1,198,898 

 

20

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

 

   Twelve months ended December 31, 2020 
   Wealth
Management
Business		   Asset
Management
Business		   Other
Businesses		   Total 
   RMB'000   RMB'000   RMB'000   RMB'000 
Revenues:                    
Revenues from others                    
One-time commissions   677,726    1,288    -    679,014 
Recurring service fees   697,140    3,017    -    700,157 
Performance-based income   180,385    144    -    180,529 
Other service fees   123,458    7,451    65,242    196,151 
Total revenues from others   1,678,709    11,900    65,242    1,755,851 
Revenues from funds Gopher manages                    
One-time commissions   88,520    41,303    -    129,823 
Recurring service fees   587,307    642,735    -    1,230,042 
Performance-based income   24,920    184,076    -    208,996 
Total revenues from funds Gopher manages   700,747    868,114    -    1,568,861 
Total revenues   2,379,456    880,014    65,242    3,324,712 
Less: VAT related surcharges   (13,123)   (4,521)   (1,242)   (18,886)
Net revenues   2,366,333    875,493    64,000    3,305,826 
Operating costs and expenses:                    
Compensation and benefits                    
Relationship managers   (613,101)   -    (898)   (613,999)
Others   (486,668)   (339,691)   (63,654)   (890,013)
Total compensation and benefits   (1,099,769)   (339,691)   (64,552)   (1,504,012)
Selling expenses   (228,853)   (34,302)   (8,537)   (271,692)
General and administrative expenses   (197,511)   (59,440)   (20,928)   (277,879)
Provision for credit losses   (3,785)   (251)   (4,047)   (8,083)
Other operating expenses   (76,983)   (6,443)   (15,614)   (99,040)
Government grants   58,046    24,443    30,867    113,356 
Total operating costs and expenses   (1,548,855)   (415,684)   (82,811)   (2,047,350)
Income (loss) from operations   817,478    459,809    (18,811)   1,258,476 

 

21

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)  

 

   Three months ended December 31, 2021 
   Wealth Management
Business		   Asset
Management
Business		   Other
Businesses		   Total 
   RMB’000   RMB’000   RMB’000   RMB’000 
Revenues:                    
Mainland China   849,846    205,797    21,482    1,077,125 
Hong Kong   116,154    57,337    -    173,491 
Others   9,642    12,175    -    21,817 
Total revenues   975,642    275,309    21,482    1,272,433 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)  

 

   Three months ended December 31, 2020 
   Wealth Management
Business		   Asset
Management
Business		   Other
Businesses		   Total 
   RMB’000   RMB’000   RMB’000   RMB’000 
Revenues:                    
Mainland China   513,690    262,719    4,073    780,482 
Hong Kong   114,285    39,536    -    153,821 
Others   18,986    5,733    -    24,719 
Total revenues   646,961    307,988    4,073    959,022 

 

22

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)  

 

   Twelve months ended December 31, 2021 
   Wealth Management
Business		   Asset
Management
Business		   Other
Businesses		   Total 
   RMB’000   RMB’000   RMB’000   RMB’000 
Revenues:                    
Mainland China   2,479,576    768,203    68,240    3,316,019 
Hong Kong   629,587    240,136    -    869,723 
Others   102,810    38,048    -    140,858 
Total revenues   3,211,973    1,046,387    68,240    4,326,600 

 

 

   Twelve months ended December 31, 2020 
   Wealth Management
Business		   Asset
Management
Business		   Other
Businesses		   Total 
   RMB’000   RMB’000   RMB’000   RMB’000 
Revenues:                    
Mainland China   1,787,611    742,743    65,242    2,595,596 
Hong Kong   452,810    111,431    -    564,241 
Others   139,035    25,840    -    164,875 
Total revenues   2,379,456    880,014    65,242    3,324,712 

 

23

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)

 

   Three months ended     
   December 31,   December 31,     
   2020   2021   Change 
   RMB'000   RMB'000     
Net (loss) income attributable to Noah shareholders   (1,573,507)   281,312    N.A. 
Adjustment for share-based compensation   9,041    12,435    37.5%
Add: settlement expense (reversal)   1,828,907    (719)   N.A. 
Less: tax effect of adjustments   1,985    3,421    72.3%
Adjusted net income attributable to Noah shareholders (non-GAAP)   262,456    289,607    10.3%
                
Net margin attributable to Noah shareholders   (165.1)%   22.3%     
Non-GAAP net margin attributable to Noah shareholders   27.5%   23.0%     
Net (loss) income attributable to Noah shareholders per ADS, diluted   (24.92)   4.16     N.A. 
Non-GAAP net income attributable to Noah shareholders per ADS, diluted   4.13    4.28    3.6%

 

24

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)

 

   Twelve months ended     
   December 31   December 31     
   2020   2021   Change 
   RMB'000   RMB'000     
Net (loss) income attributable to Noah shareholders   (745,225)   1,314,131    N.A. 
Adjustment for share-based compensation   59,789    51,036    (14.6)%
Add: settlement expense   1,828,907    19,908    (98.9)%
Less: tax effect of adjustments   13,821    12,374    (10.5)%
Adjusted net income attributable to Noah shareholders (non-GAAP)   1,129,650    1,372,701    21.5%
                
Net margin attributable to Noah shareholders   (22.5)%   30.6%     
Non-GAAP net margin attributable to Noah shareholders   34.2%   32.0%     
Net (loss) income attributable to Noah shareholders per ADS, diluted   (12.01)   19.45    N.A. 
Non-GAAP net income attributable to Noah shareholders per ADS, diluted   18.12    20.32    12.2%

 

25


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