SHANGHAI, Feb. 27, 2017 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth
and asset management services provider with a focus on global
wealth investment and asset allocation services for high net worth
individuals and enterprises in China, today announced its unaudited financial
results for the fourth quarter of 2016 and the full year ended
December 31, 2016.
FOURTH QUARTER 2016 FINANCIAL HIGHLIGHTS
- Net revenues in the fourth quarter of 2016
were RMB646.2 million (US$93.1 million), a 12.6% increase from the
corresponding period in 2015.
(RMB
millions,
except
percentages)
|
Q4 2015
|
|
|
Q4
2016
|
|
|
YoY Change
|
Wealth
management
|
431.3
|
|
|
488.2
|
|
|
13.2%
|
Asset
management
|
127.2
|
|
|
136.4
|
|
|
7.2%
|
Internet
finance
|
15.2
|
|
|
21.6
|
|
|
41.8%
|
Total net revenues
|
573.7
|
|
|
646.2
|
|
|
12.6%
|
- Income from operations in the fourth quarter of 2016 was
RMB83.4 million (US$12.0 million), a 77.2% increase from the
corresponding period in 2015.
(RMB
millions,
except
percentages)
|
Q4 2015
|
|
|
Q4 2016
|
|
|
YoY Change
|
Wealth
management
|
50.3
|
|
|
82.4
|
|
|
63.8%
|
Asset
management
|
52.7
|
|
|
43.5
|
|
|
(17.5%)
|
Internet
finance
|
(56.0)
|
|
|
(42.5)
|
|
|
(24.1%)
|
Total income from
operations
|
47.0
|
|
|
83.4
|
|
|
77.2%
|
- Net income attributable to Noah shareholders in the
fourth quarter of 2016 was RMB107.4
million (US$15.5 million), a
28.5% increase from the corresponding period in 2015.
- Non-GAAP1 net income attributable to Noah
shareholders in the fourth quarter of 2016 was RMB131.4 million (US$18.9
million), a 23.7% increase from the corresponding period in
2015.
[1] Noah's Non-GAAP
financial measures are its corresponding GAAP financial measures as
adjusted by excluding the effects of all forms of share-based
compensation
|
FULL YEAR 2016 FINANCIAL HIGHLIGHTS
- Net revenues in the full year 2016 were
RMB2,513.6 million (US$362.0 million), an 18.6% increase from the
full year 2015.
(RMB
millions,
except
percentages)
|
FY 2015
|
|
|
FY
2016
|
|
|
YoY Change
|
Wealth
management
|
1,597.5
|
|
|
1,931.7
|
|
|
20.9%
|
Asset
management
|
465.0
|
|
|
531.8
|
|
|
14.4%
|
Internet
finance
|
57.4
|
|
|
50.1
|
|
|
(12.7%)
|
Total net revenues
|
2,119.9
|
|
|
2,513.6
|
|
|
18.6%
|
- Income from operations in the full year 2016 was
RMB667.3 million (US$96.1 million), a 19.4% increase from the full
year 2015.
(RMB
millions,
except
percentages)
|
FY 2015
|
|
|
FY 2016
|
|
|
YoY Change
|
Wealth
management
|
466.1
|
|
|
526.0
|
|
|
12.9%
|
Asset
management
|
247.6
|
|
|
321.3
|
|
|
29.8%
|
Internet
finance
|
(154.8)
|
|
|
(180.0)
|
|
|
16.2%
|
Total income from
operations
|
558.8
|
|
|
667.3
|
|
|
19.4%
|
- Net income attributable to Noah shareholders in the full
year 2016 was RMB643.8 million
(US$92.7 million), a 20.2% increase
from the full year 2015.
- Non-GAAP net income attributable to Noah shareholders in
the full year 2016 was RMB723.0
million (US$104.1 million), a
19.8% increase from the full year 2015.
FOURTH QUARTER AND FULL YEAR 2016 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business provides global wealth
investment and asset allocation services to high net worth
individuals and enterprise clients in China.
- The total number of registered clients as of
December 31, 2016 was 135,396, a 36.7% increase since
December 31,
2015.
- The total number of active clients2 during
the fourth quarter of 2016 was 4,532, a 1.5% decrease from the
corresponding period in 2015. The total number of active
clients during the full year 2016 was 12,027, a 4.3%
decrease from the full year 2015.
- The aggregate value of wealth management products
distributed by the Company during the fourth quarter of 2016
was RMB24.9 billion (US$3.6 billion), a 24.4% increase from the
corresponding period in 2015.
Product
type
|
Three months ended
December 31,
|
|
2015
|
2016
|
|
(RMB in billions,
except percentages)
|
Fixed income
products
|
11.2
|
55.7%
|
14.3
|
57.5%
|
Private equity
products
|
6.4
|
32.0%
|
8.5
|
34.2%
|
Secondary market
equity fund products
|
4.8
|
23.9%
|
1.7
|
6.8%
|
Other
products3
|
(2.3)
|
(11.6%)
|
0.4
|
1.5%
|
All
products
|
20.0
|
100%
|
24.9
|
100.0%
|
- The aggregate value of wealth management products
distributed by the Company during the full year 2016 was
RMB101.4 billion (US$15.2 billion), a 2.4% increase from the full
year 2015.
Product
type
|
Twelve months
ended December 31,
|
|
2015
|
2016
|
|
(RMB in billions,
except percentages)
|
Fixed income
products
|
36.6
|
37.0%
|
64.5
|
63.6%
|
Private equity
products
|
31.9
|
32.2%
|
27.5
|
27.2%
|
Secondary market
equity fund products
|
28.1
|
28.3%
|
7.8
|
7.7%
|
Other
products
|
2.4
|
2.4%
|
1.5
|
1.5%
|
All
products
|
99.0
|
100%
|
101.4
|
100.0%
|
- The average transaction value per
client4 in the fourth quarter of
2016 was RMB5.5 million (US$0.8 million), a 26.3% increase from the
corresponding period in 2015. The average transaction
value per client in the full year 2016 was RMB8.4 million (US$1.2
million), a 7.1% increase from the full year 2015.
- The coverage network included 185 branches and
sub-branches covering 71 cities as of December 31, 2016, up
from 173 branches and sub-branches covering 71 cities as of
September 30, 2016, and 135 branches
and sub-branches covering 67 cities as of December 31,
2015.
- The number of relationship managers was 1,169 as of
December 31, 2016, up from 1,095 and 1,098 as of September 30, 2016 and December 31, 2015, respectively.
[2] "Active clients" refers to
registered clients who purchased wealth management products
distributed by Noah during the period specified.
|
[3] "Other products"
distributed by the wealth management business in the fourth
quarter of 2015 is a negative figure due to the net
redemption of mutual fund products; from 2016 mutual fund products
are distributed by the internet finance platform and are no longer
included in "other products".
|
[4] Average transaction value
per client" refers to the average value of wealth management
products distributed by Noah that were purchased by active clients
during the period specified.
|
Asset Management Business
Gopher Asset Management, the Company's subsidiary, is a leading
alternative asset manager in China. Gopher Asset Management develops and
manages private equity, real estate, secondary market and other
investments denominated in both Renminbi and foreign
currencies.
- The total assets under management as of December 31, 2016 were RMB120.9 billion (US$17.4
billion), a 5.3% increase from September 30, 2016 and a 39.6% increase from
December 31, 2015.
Product
type
|
As of
September 30, 2016
|
Asset
Growth
|
Asset
Expiration/
Redemption
|
As of
December 31, 2016
|
|
(RMB billions,
except percentages)
|
Real estate
investments
|
25.0
|
21.8%
|
5.3
|
7.2
|
23.2
|
19.2%
|
Private equity
investments
|
54.7
|
47.6%
|
7.0
|
-
|
61.7
|
51.0%
|
Secondary market
investments
|
10.3
|
9.0%
|
0.1
|
2.1
|
8.3
|
6.9%
|
Other
investments
|
24.9
|
21.6%
|
7.0
|
4.1
|
27.8
|
23.0%
|
All
products
|
114.8
|
100.0%
|
19.4
|
13.3
|
120.9
|
100.0%
|
|
|
|
|
|
|
|
Product
type
|
As of
December 31, 2015
|
Asset
Growth
|
Asset
Expiration/
Redemption
|
As of
December 31, 2016
|
|
(RMB billions,
except percentages)
|
Real estate
investments
|
31.8
|
36.7%
|
28.4
|
37.0
|
23.2
|
19.2%
|
Private equity
investments
|
37.9
|
43.7%
|
25.2
|
1.4
|
61.7
|
51.0%
|
Secondary market
investments
|
10.7
|
12.3%
|
2.8
|
5.2
|
8.3
|
6.9%
|
Other
investments
|
6.3
|
7.3%
|
28.7
|
7.2
|
27.8
|
23.0%
|
All
products
|
86.7
|
100.0%
|
85.1
|
50.9
|
120.9
|
100.0%
|
Internet Finance Business
The Company's internet finance business provides financial
products and services through a proprietary internet finance
platform targeting mass affluent individuals in China.
- The aggregate value of financial products distributed by the
Company through its internet finance platform in the fourth
quarter of 2016 was RMB7.6 billion
(US$1,133.6 million), an 81.0%
increase from the fourth quarter of 2015. The aggregate value of
financial products distributed by the Company through its internet
finance platform in the full year 2016 was RMB20.1 billion (US$2,895.6 million), a 68.1% increase from the
full year 2015.
- The total number of clients through its internet finance
platform as of December 31, 2016
was 402,815, up from 346,016 and 277,372 as of September 30, 2016 and December 31, 2015, respectively.
Mr. Kenny Lam, Group President of
Noah, commented, "We are very pleased with our fourth quarter and
full year financial results. We have delivered record profits in
2016 and beat our profit guidance. 2016 was a year in transition –
in market, in regulation and in competition. We have been
able to achieve stable operating results amidst the volatile market
environment. More importantly, in 2016, we have been able to make
substantial progress in building a solid foundation for our medium
to long term growth. Our core Wealth Management business has been
substantially upgraded in its servicing capabilities and has
expanded into new geographies. Our newer businesses – Asset
Management and Internet Finance – are bringing impactful results to
the Group, with business models refined and new talent added.
We are entering into 2017 with high confidence and are committed to
extending our leadership across our businesses."
FOURTH QUARTER 2016 FINANCIAL RESULTS
Net Revenues
Net revenues for the fourth quarter of 2016 were
RMB646.2 million (US$93.1 million), a 12.6% increase from the
corresponding period in 2015, primarily due to increases in
one-time commission revenues and recurring service fees more than
offsetting the decrease in performance-based income.
- Wealth Management Business
- Net revenues from one-time commissions for the fourth
quarter of 2016 were RMB260.4 million
(US$37.5 million), a 27.6% increase
from the corresponding period in 2015. The increase was primarily
due to an increase in the aggregate value of the wealth management
products distributed by the Company.
- Net revenues from recurring service fees for the fourth
quarter of 2016 were RMB208.8 million
(US$30.1 million), a 17.7% increase
from the corresponding period in 2015. The increase was primarily
due to the cumulative effect of wealth management products with
recurring service fees previously distributed by the Company.
- Net revenues from performance-based income for the
fourth quarter of 2016 were RMB3.4
million (US$0.5 million), a
87.4% decrease from the corresponding period in 2015, primarily due
to a decrease in performance-based income from secondary market
products compared to the corresponding period in 2015.
- Net revenues from other service fees for the fourth
quarter of 2016 were RMB15.7 million
(US$2.3 million), a 31.6% decrease
from the corresponding period in 2015, primarily due to the
reclassification of some of the other service fee income starting
from the fourth quarter of 2016.
- Asset Management Business
- Net revenues from recurring service fees for the fourth
quarter of 2016 were RMB125.7 million
(US$18.1 million), a 31.6% increase
from the corresponding period in 2015. The increase was primarily
due to the increase in assets under management by the Company.
- Net revenues from performance-based income for the
fourth quarter of 2016 were RMB10.3
million (US$1.5 million), a
65.8% decrease compared with the corresponding period in 2015,
primarily due to a decrease in performance-based income from
secondary market products compared to the corresponding period in
2015.
- Internet Finance Business
- Net revenues for the fourth quarter of 2016 were
RMB21.6 million (US$3.1 million), a 41.8% increase from the
corresponding period in 2015, primarily due to increased volumes of
financial products distributed by the internet wealth management
platform compared with the corresponding period in 2015.
Operating costs and expenses
Operating costs and expenses include
compensation and benefits, selling expenses, general and
administrative expenses, other operating expenses and government
subsidies. Operating costs and expenses for the fourth quarter of
2016 were RMB562.8 million
(US$81.1 million), a 6.9% increase
from the corresponding period in 2015. The increase was primarily
due to increased marketing expenses and rental and related expenses
associated with the new head office building which was put into use
in the first quarter of 2016.
- Wealth Management Business
Operating costs and expenses for the fourth quarter of 2016
were RMB405.9 million (US$58.5 million), a 6.5% increase from the
corresponding period in 2015.
- Compensation and benefits includes compensation for
relationship managers and back-office employees. Compensation and
benefits for the fourth quarter of 2016 were RMB267.9 million (US$38.6
million), a 4.1% increase from the corresponding period in
2015. In the fourth quarter of 2016, relationship manager
compensation increased by 0.7% from the corresponding period in
2015. Other compensation for the fourth quarter of 2016 increased
by 8.7% from the corresponding period in 2015, primarily due to an
increase in the number of back-office employees.
- Selling expenses for the fourth quarter of 2016 were
RMB84.7 million (US$12.2 million), a 13.1% increase from the
corresponding period in 2015, primarily due to an increase in
general marketing initiatives.
- General and administrative expenses for the fourth
quarter of 2016 were RMB37.5 million
(US$5.4 million), an 21.9% increase
from the corresponding period in 2015, primarily due to an increase
in rental and related expenses.
- Other operating expenses, which include other costs
incurred directly in relation to the Company's revenues, for the
fourth quarter of 2016 were RMB24.9
million (US$3.6 million), a
decrease of 24.6% from the corresponding period in 2015.
- Government subsidies represent cash subsidies received
from local governments for general corporate purposes. The Company
received RMB9.2 million (US$1.3 million) in government subsidies in the
fourth quarter of 2016, compared to RMB15.0
million in the corresponding period of 2015.
- Asset Management Business
Operating costs and expenses for the fourth quarter of 2016
were RMB92.9 million (US$13.4 million), a 24.7% increase from the
corresponding period in 2015.
- Compensation and benefits include compensation of
investment professionals, fund operation professionals,
institutional sales, and other back-office employees. Compensation
and benefits for the fourth quarter of 2016 were RMB39.2 million (US$5.6
million), a 10.0% decrease from the corresponding period in
2015. The decrease was primarily due to less performance-based
compensation to fund managers as lower performance-based income was
recognized in the fourth quarter of 2016 compared with the
corresponding period in 2015.
- Selling expenses for the fourth quarter of 2016 were
RMB6.0 million (US$0.9 million), compared with RMB3.7 million in the corresponding period of
2015, an increase of 60.4%, primarily due to an increase in
expenses related to brand promotion.
- General and administrative expenses for the fourth
quarter of 2016 were RMB25.3 million
(US$3.6 million), a 17.3% increase
from the corresponding period in 2015, primarily due to increased
rental and related expenses and depreciation of fixed assets.
- Government subsidies represent cash subsidies received
from local governments for general corporate purposes. The Company
received RMB4.8 million (US$0.7 million) in government subsidies in the
fourth quarter of 2016, compared to RMB1.4
million in the corresponding period in 2015
- Internet Finance Business
Operating costs and expenses for the fourth quarter of 2016
were RMB64.1 million (US$9.2 million), a 10.0% decrease from the
corresponding period in 2015. Operating costs and expenses for the
fourth quarter of 2016 primarily consisted of compensation and
benefits of RMB33.4 million
(US$4.8 million), selling expenses of
RMB7.9 million (US$1.1 million), general and administrative
expenses of RMB8.4 million
(US$1.2 million) and other operating
expenses of RMB14.4 million
(US$2.1 million).
Operating Margin
Operating margin for the fourth quarter of 2016 was
12.9%, compared to 8.2% for the corresponding period in 2015.
- Operating margin for the wealth management business for
the fourth quarter of 2016 was 16.9%, compared to 11.7% for the
corresponding period in 2015.
- Operating margin for the asset management
business for the fourth quarter of 2016 was 31.9%, compared to
41.4% for the corresponding period in 2015.
- Operating loss for internet finance business for
the fourth quarter of 2016 was RMB42.5
million (US$6.1 million)
compared with RMB56.0 million for the
corresponding period of the prior year.
Income Tax Expenses
Income tax expenses for the fourth quarter of
2016 were RMB22.2 million
(US$3.2 million), a 210.9% increase
from the corresponding period in 2015. The increase was primarily
due to the combined impact of a higher effective tax rate and
higher taxable income.
Net Income
- Net Income
- Net income for the fourth quarter of 2016 was
RMB81.7 million (US$11.8 million), a 9.1% increase from the
corresponding period in 2015.
- Net margin for the fourth quarter of 2016 was 12.6%,
compared to 13.1% for the corresponding period in 2015.
- Net income attributable to Noah shareholders for
the fourth quarter of 2016 was RMB107.4
million (US$15.5 million), a
28.5% increase from the corresponding period in 2015.
- Net income per basic and diluted ADS for the
fourth quarter of 2016 was RMB1.90
(US$0.27) and RMB1.86 (US$0.27),
respectively, as compared to RMB1.49
and RMB1.46, respectively, for the
corresponding period in 2015.
- Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders
for the fourth quarter of 2016 was RMB131.4
million (US$18.9 million), a
23.7% increase from the corresponding period in 2015.
- Non-GAAP net margin attributable to Noah shareholders
for the fourth quarter of 2016 was 20.3%, compared to 18.5% for the
corresponding period in 2015.
- Non-GAAP net income per diluted ADS for the fourth
quarter of 2016 was RMB2.26
(US$0.33), as compared to
RMB1.84 for the corresponding period
in 2015.
FULL YEAR 2016 FINANCIAL RESULTS
Net Revenues
Net revenues for the full year 2016 were RMB2,513.6 million (US$362.0 million), an 18.6% increase from the
full year 2015, primarily due to increases in one-time commission
revenues and recurring service fees.
- Wealth Management Business
- Net revenues from one-time commissions for the full year
2016 were RMB1,106.7 million
(US$159.4 million), a 39.5% increase
from the full year 2015. The increase was primarily due to an
increase in the aggregate value of the wealth management products
distributed by the Company.
- Net revenues from recurring service fees for the full
year 2016 were RMB746.5 million
(US$107.5 million), a 19.5% increase
from the full year 2015. The increase was primarily due to the
cumulative effect of wealth management products with recurring
service fees previously distributed by the Company.
- Net revenues from performance-based income for the full
year 2016 were RMB11.6 million
(US$1.7 million), a 91.3% decrease
from the full year 2015, primarily due to a decrease in
performance-based income from secondary market products compared
with the corresponding period in 2015.
- Net revenues from other service fees for the full year
2016 were RMB66.9 million
(US$9.6 million), representing a
48.2% increase from the full year 2015.
- Asset Management Business
- Net revenues from recurring service fees for the full
year 2016 were RMB481.2 million
(US$69.3 million), a 34.1% increase
from the full year 2015. The increase was primarily due to the
increase in assets under management by the Company.
- Net revenues from performance-based income for the full
year 2016 were RMB46.6 million
(US$6.7 million), a 53.9% decrease
from the full year 2015, primarily due to a year-over-year decrease
in performance-based income received for positive performance of
secondary market investments
- Internet Finance Business
- Net revenues for the full year 2016 were RMB50.1 million (US$7.2
million), a 12.7% decrease from the full year 2015, mainly
due to the transformation of the business model starting from the
second half of 2015.
Operating costs and expenses
Operating costs and expenses include
compensation and benefits, selling expenses, general and
administrative expenses, other operating expenses and government
subsidies. Operating costs and expenses for the full year 2016 were
RMB1,846.3 million (US$265.9 million), an 18.3% increase from the
full year 2015. The increase in operating costs and expenses was
primary driven by increased expenses related to marketing and
client engagement events, and increased rental expenses due to
office expansion and relocation.
- Wealth Management Business
Operating costs and expenses for the full year 2016 were
RMB1,405.6 million (US$202.5 million), a 24.2% increase from the full
year 2015.
- Compensation and benefits includes compensation for
relationship managers and back-office employees. Compensation and
benefits for the full year 2016 were RMB1,000.3 million (US$144.1 million), a 16.9% increase from the full
year 2015. In 2016, relationship manager compensation increased by
9.7% from the full year 2015. Other compensation for the full year
2016 increased by 27.3% from the full year 2015, primarily due to
increases in both the number of back-office employees and the
amount of share-based compensation.
- Selling expenses for the full year 2016 were
RMB281.0 million (US$40.5 million), a 28.1% increase from the full
year 2015. The increase was primarily due to an increase in general
marketing initiatives and rental expenses.
- General and administrative expenses for the full year
2016 were RMB120.8 million
(US$17.4 million), a 53.2% increase
from the full year 2015, primarily due to increased rental and
related expenses and depreciation.
- Other operating expenses, which include other costs
incurred directly in relation to the Company's revenues, for the
full year 2016 were RMB82.1 million
(US$11.8 million), an increase of
53.7% from the full year 2015. The increase was primarily due to
the growth of other businesses within the wealth management
segment.
- Government subsidies represent cash subsidies received
from local governments for general corporate purposes. The Company
received RMB78.4 million
(US$11.3 million) in government
subsidies in the full year 2016, compared to RMB76.0 million in 2015.
- Asset Management Business
Operating costs and expenses for the full
year 2016 were RMB210.5 million
(US$30.3 million), a 3.2% decrease
from the full year 2015.
- Compensation and benefits include compensation of
investment professionals, fund operation professionals,
institutional sales and other back-office employees. Compensation
and benefits for the full year 2016 were RMB165.2 million (US$23.8
million), a 10.0% decrease from the full year 2015. The
decrease was primarily due to less performance-based compensation
to fund managers as lower performance-based income was recognized
in the full year 2016 compared with the corresponding period in
2015.
- Selling expenses for the full year 2016 were
RMB16.2 million (US$2.3 million), a 6.4% decrease from the full
year 2015, primarily due to an increase in expenses related to
brand promotion.
- General and administrative expenses for the full year
2016 were RMB77.2 million
(US$11.1 million), a 44.2% increase
from the full year 2015, primarily due to increased consulting
fee.
- Government subsidies represent cash subsidies received
from local governments for general corporate purposes. The Company
received RMB83.9 million
(US$12.1 million) in government
subsidies in the full year 2016, compared to RMB56.3 million in 2015.
- Internet Finance Business
Operating costs and expenses for the full year 2016 were
RMB230.1 million (US$33.1 million), an increase of 8.4% from the
full year 2015. Operating costs and expenses primarily consisted of
compensation and benefits of RMB135.0
million (US$19.4 million),
selling expenses of RMB25.5 million
(US$3.7 million), general and
administrative expenses of RMB36.5
million (US$5.3 million) and
other operating expenses of RMB33.1
million (US$4.8 million).
Operating Margin
Operating margin for the full year 2016 was 26.5%,
compared to 26.4% for the full year 2015.
- Operating margin for the wealth management business for
the full year 2016 was 27.2%, compared to 29.2% for the full year
2015.
- Operating margin for the asset management business for
the full year 2016 was 60.4%, compared to 53.2% for the full year
2015.
- Operating loss for internet finance business for the
full year 2016 was RMB180.0 million
(US$25.9 million), compared to
RMB154.8 million for 2015.
Income Tax Expenses
Income tax expenses for the full year 2016
were RMB158.0 million (US$22.8 million), a 21.6% increase from the full
year 2015, primarily due to an increase in taxable income.
Net Income
- Net Income
- Net income for the full year 2016 was RMB597.9 million (US$86.1
million), a 13.6% increase from the full year 2015.
- Net margin for the full year 2016 was 23.8%, compared to
24.8% for 2015.
- Net income attributable to Noah shareholders for the
full year 2016 was RMB643.8 million
(US$92.7 million), a 20.2% increase
from the full year 2015.
- Net income per basic and diluted ADS for the full year
2016 was RMB11.44 (US$1.65) and RMB11.04 (US$1.59),
respectively, as compared to RMB9.54
and RMB9.15, respectively, for
2015.
- Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders
for the full year 2016 was RMB723.0
million (US$104.1 million), a
19.8% increase from the full year 2015.
- Non-GAAP net margin attributable to Noah shareholders
for the full year 2016 was 28.8%, compared to 28.5% for 2015.
- Non-GAAP net income per diluted ADS for the full year
2016 was RMB12.36 (US$1.78), compared to RMB10.28 for 2015.
Balance Sheet and Cash Flow
As of December 31, 2016, the
Company had RMB2,982.5 million
(US$429.6 million) in cash and cash
equivalents, compared to RMB1,756.9
million as of September 30,
2016 and RMB2,132.9 million as
of December 31, 2015.
Cash inflow from the Company's operating activities during the
fourth quarter of 2016 was RMB613.3
million (US$88.3 million).
Cash inflow from the Company's operating activities for the full
year of 2016 was RMB686.2 million
(US$98.8 million), compared to
RMB675.1 million for the full year of
2015.
Cash outflow from the Company's investing activities during the
fourth quarter of 2016 was RMB208.3
million (US$30.0 million).
Cash outflow from the Company's investing activities for the full
year of 2016 was RMB883.8 million
(US$127.3 million), compared to
RMB759.5 million for the full year of
2015.
Cash inflow from the Company's financing activities for the
fourth quarter of 2016 was RMB788.0
million (US$113.5 million).
Cash inflow from the Company's financing activities was
RMB994.6 million (US$143.3 million) for the full year of 2016, an
increase from RMB462.8 million for
the full year of 2015, primarily due to fund raisings for our
subsidiaries completed in the fourth quarter of 2016.
On July 8, 2016, the Company's
board of directors authorized a share repurchase program of up to
US$50 million worth of its issued and
outstanding ADSs over the course of one year. As of December 31, 2016, the Company had repurchased
26,082 ADSs for approximately US$0.6
million under this program, inclusive of transaction
charges.
2017 FORECAST
The Company estimates that non-GAAP net income attributable to
Noah shareholders for the full year 2017 will be in the range of
RMB825 million to RMB860 million, an
increase of 14.1% to 18.9% compared to the full year 2016. This
estimate reflects management's current business outlook and is
subject to change.
CONFERENCE CALL
Senior management will host a combined English and Chinese
language conference call to discuss the Company's fourth quarter
and full year 2016 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time
|
Monday, February 27,
2017 at 8:00 p.m., U.S. Eastern Time
Tuesday, February 28,
2017 at 9:00 a.m., Hong Kong Time
|
Dial in
details
|
|
- United States
Toll Free
|
+1-888-346-8982
|
- Mainland China
Toll Free
|
4001-201203
|
- Hong Kong Toll
Free
|
800-905-945
|
- International
|
+1-412-902-4272
|
Conference
Title
|
Noah Holdings Limited
Fourth Quarter and Full Year 2016 Earnings Call
|
Participant
Password
|
Noah
Holdings
|
A telephone replay will be available starting one hour after the
end of the conference call until March 6,
2017 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088
(International Toll). The replay access code is 10101376.
A live and archived webcast of the conference call will be
available at Noah's investor relations website under the News &
Events section at http://ir.noahwm.com.
DISCUSSION OF NON-GAAP FINANCIAL MEASURES
In addition to disclosing financial results prepared in
accordance with U.S. GAAP, the Company's earnings release contains
non-GAAP financial measures that exclude the effects of all forms
of share-based compensation. The reconciliation of these non-GAAP
financial measures to the nearest GAAP measures is set forth in the
table captioned "Reconciliation of GAAP to Non-GAAP Results"
below.
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
measure 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 non-GAAP net income
attributable to Noah shareholders results reflecting adjustments to
exclude the impact of share-based compensation to supplement U.S.
GAAP financial data. As such, the Company believes that the
presentation of the non-GAAP net income attributable to Noah
shareholders, non-GAAP net income per diluted ADS and non-GAAP net
margin provides important supplemental information to investors
regarding financial and business trends relating to the Company's
financial condition and results of operations in a manner
consistent with that used by management. Pursuant to U.S. GAAP, the
Company recognized significant amounts of expenses for the
restricted shares and share options in the periods presented. The
Company utilized the non-GAAP financial results to make financial
results comparable period to period and to better understand its
historical business operations.
ABOUT NOAH HOLDINGS LIMITED
Founded in 2005, Noah Holdings Limited (NYSE: NOAH) is a leading
wealth and asset management services provider with a focus on
global services for high net worth individuals and enterprises in
China. In the full year 2016, Noah
distributed over RMB101.4 billion
(US$15.2 billion) of wealth
management products. As of December 31,
2016, Noah had assets under management of RMB120.9 billion (US$17.4
billion).
Noah distributes a wide array of wealth management products,
including fixed income products, private equity fund products,
secondary market products and insurance products. Gopher Asset
Management, the Company's subsidiary, is a leading alternative
asset manager in China. Gopher
Asset Management develops and manages private equity, real estate,
secondary market and other investments denominated in both Renminbi
and foreign currencies. In addition, in 2014, the Company launched
a proprietary internet finance platform to provide financial
products and services to mass affluent clients in China. Noah delivers customized financial
solutions to clients through a network of 1,169 relationship
managers across 185 branches and sub-branches in 71 cities in
China, and serves the
international investment needs of its clients through wholly owned
subsidiaries in Hong Kong and
the United States. The Company's
wealth management business had 135,396 registered clients as of
December 31, 2016.
For more information please visit Noah at
ir.noahwm.com.
FOREIGN CURRENCY TRANSLATION
Effective October 1, 2015, the
Company changed its reporting currency from U.S. dollars ("US$") to
Chinese Renminbi ("RMB"). The change in reporting currency is to
better reflect the Company's performance, as the majority of the
Company's operations are conducted in RMB, to align the Company's
reporting currency with its underlying operations and to reduce the
impact that the increased volatility of the RMB to US$ exchange
rate will have on the Company's reported operating results. Prior
to October 1, 2015, the Company
reported its annual and quarterly consolidated balance sheets and
consolidated statements of income and comprehensive income and
shareholder's equity and cash flows in US$. In this announcement,
the unaudited financial results for the fourth quarter of 2016 and
the full year ended December 31, 2016
are stated in RMB. The related financial statements prior to
October 1, 2015 have been recast to
reflect RMB as the reporting currency for comparison to the
financial results for the full year ended December 31, 2016.
This announcement contains currency conversions of certain RMB
amounts into US$ 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 RMB6.943 to
US$1.00, the effective noon buying
rate for December 31, 2016 as set
forth in the H.10 statistical release of the Federal Reserve
Board.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the outlook for 2017 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 market in China and internationally; its expectations
regarding demand for and market acceptance of the products it
distributes; its expectations regarding keeping and strengthening
its relationships with key clients; relevant government policies
and regulations relating to its industry; 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 industry 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
Steve Zeng
Noah Holdings Limited
Tel: +86-21-8035-9221
ir@noahwm.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(In
RMB)
|
(unaudited)
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
September
30,
2016
|
|
December
31,
2016
|
|
December
31,
2016
|
|
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,756,854,969
|
|
2,982,509,565
|
|
429,570,728
|
|
|
|
Restricted
cash
|
|
1,000,000
|
|
1,000,000
|
|
144,030
|
|
|
|
Short-term
investments
|
|
494,312,947
|
|
299,174,435
|
|
43,090,081
|
|
|
|
Accounts receivable,
net of allowance for
doubtful accounts of nil at September 30,
2016 and December 31, 2016
|
|
225,246,430
|
|
204,131,815
|
|
29,401,097
|
|
|
|
Loans receivable,
net
|
|
119,965,144
|
|
113,919,956
|
|
16,407,887
|
|
|
|
Amounts due from
related parties
|
|
504,291,995
|
|
438,839,542
|
|
63,206,041
|
|
|
|
Other current
assets
|
|
669,257,766
|
|
692,954,883
|
|
99,806,263
|
|
|
|
Total current
assets
|
|
3,770,929,251
|
|
4,732,530,196
|
|
681,626,126
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
investments
|
|
322,657,930
|
|
346,920,327
|
|
49,966,920
|
|
|
Investment in
affiliates
|
|
458,513,861
|
|
539,176,511
|
|
77,657,570
|
|
|
Property and
equipment, net
|
|
219,148,582
|
|
243,489,512
|
|
35,069,784
|
|
|
Non-current deferred
tax assets
|
|
43,574,044
|
|
55,726,799
|
|
8,026,329
|
|
|
Other non-current
assets
|
|
36,645,231
|
|
38,646,355
|
|
5,566,233
|
|
Total
Assets
|
|
4,851,468,899
|
|
5,956,489,700
|
|
857,912,963
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
|
422,789,431
|
|
555,228,116
|
|
79,969,482
|
|
|
|
Income tax
payable
|
|
29,871,285
|
|
23,161,986
|
|
3,336,020
|
|
|
|
Amounts due to
related parties
|
|
1,060
|
|
12,273,000
|
|
1,767,680
|
|
|
|
Deferred
revenues
|
|
82,739,667
|
|
93,252,362
|
|
13,431,134
|
|
|
|
Deferred tax
liabilities
|
|
1,699,213
|
|
-
|
|
-
|
|
|
|
Other current
liabilities
|
|
544,277,187
|
|
891,796,304
|
|
128,445,384
|
|
|
|
Total current
liabilities
|
|
1,081,377,843
|
|
1,575,711,768
|
|
226,949,700
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible
notes
|
|
533,480,000
|
|
555,440,000
|
|
80,000,000
|
|
|
Non-current Deferred
tax liabilities
|
|
-
|
|
4,456,335
|
|
641,846
|
|
|
Other non-current
liabilities
|
|
110,310,153
|
|
98,945,858
|
|
14,251,168
|
|
|
Total
Liabilities
|
|
1,725,167,996
|
|
2,234,553,961
|
|
321,842,714
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine Equity -
Redeemable
non-controlling Interest of Subsidiary
|
|
-
|
|
330,664,322
|
|
47,625,568
|
|
|
Equity
|
|
3,126,300,903
|
|
3,391,271,417
|
|
488,444,681
|
|
Total Liabilities
and Equity
|
|
4,851,468,899
|
|
5,956,489,700
|
|
857,912,963
|
|
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB, except
for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2015
|
|
2016
|
|
2016
|
|
|
Revenues:
|
RMB
|
|
RMB
|
|
USD
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions5
|
127,057,777
|
|
164,146,291
|
|
23,641,983
|
|
29.2%
|
Recurring service fees
|
118,933,264
|
|
126,922,910
|
|
18,280,701
|
|
6.7%
|
Performance-based
income
|
29,759,827
|
|
6,013,181
|
|
866,078
|
|
(79.8%)
|
Other
service fees
|
39,394,494
|
|
37,178,460
|
|
5,354,812
|
|
(5.6%)
|
Total third-party
revenues
|
315,145,362
|
|
334,260,842
|
|
48,143,574
|
|
6.1%
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions5
|
88,915,817
|
|
98,615,887
|
|
14,203,642
|
|
10.9%
|
Recurring service fees
|
168,054,455
|
|
209,605,221
|
|
30,189,431
|
|
24.7%
|
Performance-based income
|
30,194,600
|
|
7,719,089
|
|
1,111,780
|
|
(74.4%)
|
Other
service fees
|
158,108
|
|
391,621
|
|
56,405
|
|
147.7%
|
Total related party
revenues
|
287,322,980
|
|
316,331,818
|
|
45,561,258
|
|
10.1%
|
Total
revenues
|
602,468,342
|
|
650,592,660
|
|
93,704,832
|
|
8.0%
|
Less:
business taxes and related surcharges
|
(28,745,806)
|
|
(4,361,781)
|
|
(628,227)
|
|
(84.8%)
|
Net
revenues
|
573,722,536
|
|
646,230,879
|
|
93,076,605
|
|
12.6%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(147,065,089)
|
|
(150,033,244)
|
|
(21,609,282)
|
|
2.0%
|
Performance fee compensation
|
(2,477,428)
|
|
-
|
|
-
|
|
(100.0%)
|
Other Compensations
|
(191,731,525)
|
|
(190,475,463)
|
|
(27,434,173)
|
|
(0.7%)
|
Total compensation
and benefits
|
(341,274,042)
|
|
(340,508,707)
|
|
(49,043,455)
|
|
(0.2%)
|
Selling
expenses
|
(90,525,777)
|
|
(98,672,303)
|
|
(14,211,768)
|
|
9.0%
|
General
and administrative expenses
|
(64,781,699)
|
|
(71,144,431)
|
|
(10,246,929)
|
|
9.8%
|
Other
operating expenses
|
(46,919,354)
|
|
(66,591,568)
|
|
(9,591,181)
|
|
41.9%
|
Government subsidies
|
16,822,156
|
|
14,067,709
|
|
2,026,172
|
|
(16.4%)
|
Total operating costs
and expenses
|
(526,678,716)
|
|
(562,849,300)
|
|
(81,067,161)
|
|
6.9%
|
Income from
operations
|
47,043,820
|
|
83,381,579
|
|
12,009,444
|
|
77.2%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
11,754,938
|
|
7,930,682
|
|
1,142,256
|
|
(32.5%)
|
Interest
expenses
|
(4,508,093)
|
|
(4,871,269)
|
|
(701,609)
|
|
8.1%
|
Investment income
|
24,680,396
|
|
18,892,961
|
|
2,721,153
|
|
(23.4%)
|
Other
income (expense)
|
1,345,430
|
|
(3,605,958)
|
|
(519,366)
|
|
(368.0%)
|
Total other
income
|
33,272,671
|
|
18,346,416
|
|
2,642,434
|
|
(44.9%)
|
Income before taxes
and loss from equity in affiliates
|
80,316,491
|
|
101,727,995
|
|
14,651,878
|
|
26.7%
|
Income tax
expense
|
(7,126,689)
|
|
(22,157,108)
|
|
(3,191,287)
|
|
210.9%
|
Income from equity in
affiliates
|
1,688,567
|
|
2,144,635
|
|
308,892
|
|
27.0%
|
Net
income
|
74,878,369
|
|
81,715,522
|
|
11,769,483
|
|
9.1%
|
Less: loss
attributable to non-controlling Interests
|
(8,658,997)
|
|
(20,311,844)
|
|
(2,925,514)
|
|
134.6%
|
Loss attributable to
redeemable
non-controlling interest of Subsidiary
|
-
|
|
(5,335,678)
|
|
(768,498)
|
|
-
|
Net income
attributable to Noah Shareholders
|
83,537,366
|
|
107,363,044
|
|
15,463,495
|
|
28.5%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
1.49
|
|
1.90
|
|
0.27
|
|
27.5%
|
Income per ADS,
diluted
|
1.46
|
|
1.86
|
|
0.27
|
|
27.4%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
8.2%
|
|
12.9%
|
|
12.9%
|
|
|
Net margin
|
13.1%
|
|
12.6%
|
|
12.6%
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
|
|
Basic
|
56,078,056
|
|
56,482,118
|
|
56,482,118
|
|
|
Diluted
|
60,204,346
|
|
60,329,884
|
|
60,329,884
|
|
|
ADS equivalent
outstanding at end of period
|
56,143,075
|
|
56,462,655
|
|
56,462,655
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs
|
|
[5] To realign the
Company's services provided under different business segments,
starting from the first quarter of 2016, the Company reclassifies
some of the revenues under "other service fees" to "one-time
commissions". Presentation of prior periods has been reclassified
to reflect the same criteria.
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB, except
for ADS data, per ADS data and percentages)
|
(unaudited)
|
|
|
Twelve months
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2015
|
|
2016
|
|
2016
|
|
|
Revenues:
|
RMB
|
|
RMB
|
|
USD
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions[6]
|
413,178,932
|
|
810,645,359
|
|
116,757,217
|
|
96.2%
|
Recurring service fees
|
401,292,465
|
|
475,000,278
|
|
68,414,270
|
|
18.4%
|
Performance-based
income
|
193,939,030
|
|
19,740,213
|
|
2,843,182
|
|
(89.8%)
|
Other
service fees
|
106,299,714
|
|
117,793,855
|
|
16,965,844
|
|
10.8%
|
Total third-party
revenues
|
1,114,710,141
|
|
1,423,179,705
|
|
204,980,513
|
|
27.7%
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions6
|
428,923,066
|
|
321,441,733
|
|
46,297,239
|
|
(25.1%)
|
Recurring service fees
|
634,913,375
|
|
775,726,326
|
|
111,727,830
|
|
22.2%
|
Performance-based income
|
53,825,293
|
|
39,500,382
|
|
5,689,238
|
|
(26.6%)
|
Other
service fees
|
324,231
|
|
1,787,923
|
|
257,514
|
|
451.4%
|
Total related party
revenues
|
1,117,985,965
|
|
1,138,456,364
|
|
163,971,821
|
|
1.8%
|
Total
revenues
|
2,232,696,106
|
|
2,561,636,069
|
|
368,952,334
|
|
14.7%
|
Less:
business taxes and related
surcharges
|
(112,768,265)
|
|
(48,063,299)
|
|
(6,922,555)
|
|
(57.4%)
|
Net
revenues
|
2,119,927,841
|
|
2,513,572,770
|
|
362,029,779
|
|
18.6%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(524,629,723)
|
|
(563,619,789)
|
|
(81,178,135)
|
|
7.4%
|
Performance fee compensation
|
(24,786,763)
|
|
(8,145,016)
|
|
(1,173,126)
|
|
(67.1%)
|
Other Compensations
|
(615,075,893)
|
|
(728,639,155)
|
|
(104,945,867)
|
|
18.5%
|
Total compensation
and benefits
|
(1,164,492,379)
|
|
(1,300,403,960)
|
|
(187,297,128)
|
|
11.7%
|
Selling
expenses
|
(263,815,409)
|
|
(322,667,518)
|
|
(46,473,789)
|
|
22.3%
|
General
and administrative expenses
|
(170,929,513)
|
|
(234,488,066)
|
|
(33,773,306)
|
|
37.2%
|
Other
operating expenses
|
(94,624,304)
|
|
(151,087,419)
|
|
(21,761,115)
|
|
59.7%
|
Government subsidies
|
132,709,712
|
|
162,364,268
|
|
23,385,319
|
|
22.3%
|
Total operating costs
and expenses
|
(1,561,151,893)
|
|
(1,846,282,695)
|
|
(265,920,019)
|
|
18.3%
|
Income from
operations
|
558,775,948
|
|
667,290,075
|
|
96,109,760
|
|
19.4%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
39,698,790
|
|
39,537,775
|
|
5,694,624
|
|
(0.4%)
|
Interest
expenses
|
(16,050,359)
|
|
(19,288,813)
|
|
(2,778,167)
|
|
20.2%
|
Investment income
|
51,954,918
|
|
48,537,737
|
|
6,990,888
|
|
(6.6%)
|
Other
income (expense)
|
455,030
|
|
(2,531,621)
|
|
(364,629)
|
|
(656.4%)
|
Total other
income
|
76,058,379
|
|
66,255,078
|
|
9,542,716
|
|
(12.9%)
|
Income before taxes
and loss from equity
in affiliates
|
634,834,327
|
|
733,545,153
|
|
105,652,476
|
|
15.5%
|
Income tax
expense
|
(129,885,747)
|
|
(157,996,588)
|
|
(22,756,242)
|
|
21.6%
|
Income from equity in
affiliates
|
21,352,767
|
|
22,342,896
|
|
3,218,046
|
|
4.6%
|
Net
income
|
526,301,347
|
|
597,891,461
|
|
86,114,280
|
|
13.6%
|
Less: loss
attributable to non-controlling
Interests
|
(9,522,737)
|
|
(40,601,294)
|
|
(5,847,803)
|
|
326.4%
|
Loss attributable to
redeemable
non-controlling interest of Subsidiary
|
-
|
|
(5,335,678)
|
|
(768,498)
|
|
-
|
Net income
attributable to
Noah Shareholders
|
535,824,084
|
|
643,828,433
|
|
92,730,581
|
|
20.2%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
9.54
|
|
11.44
|
|
1.65
|
|
19.9%
|
Income per ADS,
diluted
|
9.15
|
|
11.04
|
|
1.59
|
|
20.7%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
26.4%
|
|
26.5%
|
|
26.5%
|
|
|
Net margin
|
24.8%
|
|
23.8%
|
|
23.8%
|
|
|
Weighted average ADS
equivalent: [1]
|
|
|
|
|
|
|
|
Basic
|
56,171,042
|
|
56,300,278
|
|
56,300,278
|
|
|
Diluted
|
60,291,952
|
|
60,073,525
|
|
60,073,525
|
|
|
ADS equivalent
outstanding at end of period
|
56,143,075
|
|
56,462,655
|
|
56,462,655
|
|
|
|
[1] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs
|
|
Noah Holdings Limited
|
Condensed
Comprehensive Income Statements
|
(In RMB)
(unaudited)
|
|
Three months
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2015
|
|
2016
|
|
2016
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Net
income
|
74,878,369
|
|
81,715,522
|
|
11,769,483
|
|
9.1%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments
|
2,707,480
|
|
14,343,397
|
|
2,065,879
|
|
429.8%
|
Fair value fluctuation of
available
for sale Investment (after tax)
|
1,228,939
|
|
(12,478,953)
|
|
(1,797,343)
|
|
(1115.4%)
|
Comprehensive
income
|
78,814,788
|
|
83,579,966
|
|
12,038,019
|
|
6.0%
|
Less: Comprehensive
loss attributable to
non-controlling interests
|
(8,669,054)
|
|
(20,314,230)
|
|
(2,925,858)
|
|
134.3%
|
Loss attributable to
redeemable
non-controlling interest of Subsidiary
|
-
|
|
(5,335,678)
|
|
(768,498)
|
|
-
|
Comprehensive
income attributable to
Noah Shareholders
|
87,483,842
|
|
109,229,874
|
|
15,732,374
|
|
24.9%
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(In RMB)
(unaudited)
|
|
Twelve months
ended
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2015
|
|
2016
|
|
2016
|
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Net
income
|
526,301,347
|
|
597,891,461
|
|
86,114,282
|
|
13.6%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments
|
4,884,837
|
|
19,242,060
|
|
2,771,433
|
|
293.9%
|
Fair value fluctuation of
available for
sale Investment (after tax)
|
718,414
|
|
(3,000,729)
|
|
(432,195)
|
|
(517.7%)
|
Comprehensive
income
|
531,904,598
|
|
614,132,792
|
|
88,453,520
|
|
15.5%
|
Less: Comprehensive
loss attributable to
non-controlling interests
|
(9,520,184)
|
|
(40,683,799)
|
|
(5,859,686)
|
|
327.3%
|
Loss attributable to
redeemable
non-controlling interest of Subsidiary
|
-
|
|
(5,335,678)
|
|
(768,498)
|
|
-
|
Comprehensive
income attributable to
Noah Shareholders
|
541,424,782
|
|
660,152,269
|
|
95,081,704
|
|
21.9%
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
As
of
|
|
Change
|
|
December 31,
2015
|
|
December 31,
2016
|
|
|
|
|
|
|
|
Number of
registered clients
|
99,019
|
|
135,396
|
|
36.7%
|
Number of
relationship managers
|
1,098
|
|
1,169
|
|
6.5%
|
Number of
cities under coverage
|
67
|
|
71
|
|
6.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Change
|
|
December 31,
2015
|
|
December 31,
2016
|
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of
active clients
|
4,603
|
|
4,532
|
|
(1.5%)
|
Transaction
value:
|
|
|
|
|
|
Fixed
income products
|
11,164
|
|
14,337
|
|
28.4%
|
Private
equity fund products
|
6,407
|
|
8,519
|
|
33.0%
|
Secondary
market equity fund products
|
4,785
|
|
1,700
|
|
(64.5%)
|
Other
products
|
(2,317)
|
|
364
|
|
(115.7%)
|
Total
transaction value
|
20,039
|
|
24,920
|
|
24.4%
|
Average
transaction value per client
|
4.35
|
|
5.50
|
|
26.3%
|
|
Twelve months ended
|
|
Change
|
|
December 31,
2015
|
|
December 31,
2016
|
|
|
(in millions of RMB,
except number of active clients and percentages)
|
Number of
active clients
|
12,573
|
|
12,027
|
|
(4.3%)
|
Transaction
value:
|
|
|
|
|
|
Fixed
income products
|
36,621
|
|
64,494
|
|
76.1%
|
Private
equity fund products
|
31,917
|
|
27,545
|
|
(13.7%)
|
Secondary
market equity fund products
|
28,054
|
|
7,846
|
|
(72.0%)
|
Other
products
|
2,402
|
|
1,499
|
|
(37.6%)
|
Total
transaction value
|
98,994
|
|
101,385
|
|
2.4%
|
Average
transaction value per client
|
7.87
|
|
8.43
|
|
7.1%
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In RMB,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
Three months ended
December 31, 2016
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Finance
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
163,809,499
|
|
336,792
|
|
-
|
|
164,146,291
|
Recurring service
fees
|
109,457,782
|
|
17,465,128
|
|
-
|
|
126,922,910
|
Performance-based
income
|
2,771,496
|
|
3,241,685
|
|
-
|
|
6,013,181
|
Other service
fees
|
15,773,528
|
|
-
|
|
21,404,932
|
|
37,178,460
|
Total third-party
revenues
|
291,812,305
|
|
21,043,605
|
|
21,404,932
|
|
334,260,842
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
98,591,458
|
|
24,429
|
|
-
|
|
98,615,887
|
Recurring service
fees
|
100,947,935
|
|
108,657,286
|
|
-
|
|
209,605,221
|
Performance-based
income
|
649,764
|
|
7,069,325
|
|
-
|
|
7,719,089
|
Other service
fees
|
-
|
|
-
|
|
391,621
|
|
391,621
|
Total related party
revenues
|
200,189,157
|
|
115,751,040
|
|
391,621
|
|
316,331,818
|
Total
revenues
|
492,001,462
|
|
136,794,645
|
|
21,796,553
|
|
650,592,660
|
Less: business taxes
and related
surcharges
|
(3,766,556)
|
|
(420,761)
|
|
(174,464)
|
|
(4,361,781)
|
Net
revenues
|
488,234,906
|
|
136,373,884
|
|
21,622,089
|
|
646,230,879
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(147,168,654)
|
|
(325,122)
|
|
(2,539,468)
|
|
(150,033,244)
|
Other
compensation
|
(120,756,029)
|
|
(38,872,854)
|
|
(30,846,580)
|
|
(190,475,463)
|
Total compensation and
benefits
|
(267,924,683)
|
|
(39,197,976)
|
|
(33,386,048)
|
|
(340,508,707)
|
Selling
expenses
|
(84,740,172)
|
|
(6,011,625)
|
|
(7,920,506)
|
|
(98,672,303)
|
General and
administrative expenses
|
(37,491,894)
|
|
(25,297,021)
|
|
(8,355,516)
|
|
(71,144,431)
|
Other operating
expenses
|
(24,917,734)
|
|
(27,243,590)
|
|
(14,430,244)
|
|
(66,591,568)
|
Government
subsidies
|
9,222,251
|
|
4,845,458
|
|
-
|
|
14,067,709
|
Total operating costs
and expenses
|
(405,852,232)
|
|
(92,904,754)
|
|
(64,092,314)
|
|
(562,849,300)
|
Income from
operations
|
82,382,674
|
|
43,469,130
|
|
(42,470,225)
|
|
83,381,579
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In RMB,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
Three months ended December 31, 2015
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Finance
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
126,830,277
|
|
227,500
|
|
-
|
|
127,057,777
|
Recurring service
fees
|
103,525,654
|
|
15,407,610
|
|
-
|
|
118,933,264
|
Performance-based
income
|
28,313,104
|
|
1,446,723
|
|
-
|
|
29,759,827
|
Other service
fees
|
23,887,822
|
|
-
|
|
15,506,672
|
|
39,394,494
|
Total third-party
revenues
|
282,556,857
|
|
17,081,833
|
|
15,506,672
|
|
315,145,362
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
87,393,071
|
|
1,522,746
|
|
-
|
|
88,915,817
|
Recurring service
fees
|
82,789,078
|
|
85,265,377
|
|
-
|
|
168,054,455
|
Performance-based
income
|
-
|
|
30,194,600
|
|
-
|
|
30,194,600
|
Other service
fees
|
158,108
|
|
-
|
|
-
|
|
158,108
|
Total related party
revenues
|
170,340,257
|
|
116,982,723
|
|
-
|
|
287,322,980
|
Total
revenues
|
452,897,114
|
|
134,064,556
|
|
15,506,672
|
|
602,468,342
|
Less: business taxes
and related
surcharges
|
(21,623,140)
|
|
(6,860,507)
|
|
(262,159)
|
|
(28,745,806)
|
Net
revenues
|
431,273,974
|
|
127,204,049
|
|
15,244,513
|
|
573,722,536
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(146,135,190)
|
|
(1,242,154)
|
|
312,255
|
|
(147,065,089)
|
Performance Fee
Compensation
|
-
|
|
(2,477,428)
|
|
-
|
|
(2,477,428)
|
Other
compensation
|
(111,121,819)
|
|
(39,855,764)
|
|
(40,753,942)
|
|
(191,731,525)
|
Total compensation and
benefits
|
(257,257,009)
|
|
(43,575,346)
|
|
(40,441,687)
|
|
(341,274,042)
|
Selling
expenses
|
(74,895,758)
|
|
(3,747,660)
|
|
(11,882,359)
|
|
(90,525,777)
|
General and
administrative expenses
|
(30,752,315)
|
|
(21,561,697)
|
|
(12,467,687)
|
|
(64,781,699)
|
Other operating
expenses
|
(33,052,868)
|
|
(7,017,494)
|
|
(6,848,992)
|
|
(46,919,354)
|
Government
subsidies
|
14,980,060
|
|
1,397,228
|
|
444,868
|
|
16,822,156
|
Total operating costs
and expenses
|
(380,977,890)
|
|
(74,504,969)
|
|
(71,195,857)
|
|
(526,678,716)
|
Income from
operations
|
50,296,084
|
|
52,699,080
|
|
(55,951,344)
|
|
47,043,820
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In RMB,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
Twelve months ended December 31, 2016
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Finance
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
809,461,138
|
|
1,184,221
|
|
-
|
|
810,645,359
|
Recurring service
fees
|
413,085,113
|
|
61,915,165
|
|
-
|
|
475,000,278
|
Performance-based
income
|
11,143,779
|
|
8,596,434
|
|
-
|
|
19,740,213
|
Other service
fees
|
67,435,787
|
|
-
|
|
50,358,068
|
|
117,793,855
|
Total third-party
revenues
|
1,301,125,817
|
|
71,695,820
|
|
50,358,068
|
|
1,423,179,705
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
318,554,406
|
|
2,887,327
|
|
-
|
|
321,441,733
|
Recurring service
fees
|
347,818,641
|
|
427,907,685
|
|
-
|
|
775,726,326
|
Performance-based
income
|
706,390
|
|
38,793,992
|
|
-
|
|
39,500,382
|
Other service
fees
|
722,009
|
|
-
|
|
1,065,914
|
|
1,787,923
|
Total related party
revenues
|
667,801,446
|
|
469,589,004
|
|
1,065,914
|
|
1,138,456,364
|
Total
revenues
|
1,968,927,263
|
|
541,284,824
|
|
51,423,982
|
|
2,561,636,069
|
Less: business taxes
and related
surcharges
|
(37,274,715)
|
|
(9,474,316)
|
|
(1,314,268)
|
|
(48,063,299)
|
Net
revenues
|
1,931,652,548
|
|
531,810,508
|
|
50,109,714
|
|
2,513,572,770
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(556,553,499)
|
|
(1,452,611)
|
|
(5,613,679)
|
|
(563,619,789)
|
Performance Fee
Compensation
|
-
|
|
(8,145,016)
|
|
-
|
|
(8,145,016)
|
Other
compensation
|
(443,704,242)
|
|
(155,567,371)
|
|
(129,367,542)
|
|
(728,639,155)
|
Total compensation and
benefits
|
(1,000,257,741)
|
|
(165,164,998)
|
|
(134,981,221)
|
|
(1,300,403,960)
|
Selling
expenses
|
(280,993,783)
|
|
(16,171,723)
|
|
(25,502,012)
|
|
(322,667,518)
|
General and
administrative expenses
|
(120,763,794)
|
|
(77,200,486)
|
|
(36,523,786)
|
|
(234,488,066)
|
Other operating
expenses
|
(82,058,856)
|
|
(35,922,504)
|
|
(33,106,059)
|
|
(151,087,419)
|
Government
subsidies
|
78,444,752
|
|
83,919,516
|
|
-
|
|
162,364,268
|
Total operating costs
and expenses
|
(1,405,629,422)
|
|
(210,540,195)
|
|
(230,113,078)
|
|
(1,846,282,695)
|
Income from
operations
|
526,023,126
|
|
321,270,313
|
|
(180,003,364)
|
|
667,290,075
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(In RMB,
except for ADS data, per ADS data and percentages)
|
(unaudited)
|
Twelve months ended December 31, 2015
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Internet
Finance
|
|
Total
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Third-party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
412,658,931
|
|
520,001
|
|
-
|
|
413,178,932
|
Recurring service
fees
|
334,983,117
|
|
66,309,348
|
|
-
|
|
401,292,465
|
Performance-based
income
|
141,773,493
|
|
52,165,537
|
|
-
|
|
193,939,030
|
Other service
fees
|
47,456,998
|
|
512,475
|
|
58,330,241
|
|
106,299,714
|
Total third-party
revenues
|
936,872,539
|
|
119,507,361
|
|
58,330,241
|
|
1,114,710,141
|
Related party
revenues
|
|
|
|
|
|
|
|
One-time
commissions
|
424,590,048
|
|
4,333,018
|
|
-
|
|
428,923,066
|
Recurring service
fees
|
324,182,643
|
|
310,730,732
|
|
-
|
|
634,913,375
|
Performance-based
income
|
-
|
|
53,825,293
|
|
-
|
|
53,825,293
|
Other service
fees
|
158,108
|
|
-
|
|
166,123
|
|
324,231
|
Total related party
revenues
|
748,930,799
|
|
368,889,043
|
|
166,123
|
|
1,117,985,965
|
Total
revenues
|
1,685,803,338
|
|
488,396,404
|
|
58,496,364
|
|
2,232,696,106
|
Less: business taxes
and related
surcharges
|
(88,285,200)
|
|
(23,408,513)
|
|
(1,074,552)
|
|
(112,768,265)
|
Net
revenues
|
1,597,518,138
|
|
464,987,891
|
|
57,421,812
|
|
2,119,927,841
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship manager
compensation
|
(507,400,087)
|
|
(8,044,612)
|
|
(9,185,024)
|
|
(524,629,723)
|
Performance Fee
Compensation
|
|
|
(24,786,763)
|
|
-
|
|
(24,786,763)
|
Other
compensation
|
(348,504,061)
|
|
(150,661,189)
|
|
(115,910,643)
|
|
(615,075,893)
|
Total compensation and
benefits
|
(855,904,148)
|
|
(183,492,564)
|
|
(125,095,667)
|
|
(1,164,492,379)
|
Selling
expenses
|
(219,286,283)
|
|
(17,278,343)
|
|
(27,250,783)
|
|
(263,815,409)
|
General and
administrative expenses
|
(78,850,681)
|
|
(53,554,038)
|
|
(38,524,794)
|
|
(170,929,513)
|
Other operating
expenses
|
(53,374,913)
|
|
(19,411,331)
|
|
(21,838,060)
|
|
(94,624,304)
|
Government
subsidies
|
75,960,496
|
|
56,304,348
|
|
444,868
|
|
132,709,712
|
Total operating costs
and expenses
|
(1,131,455,529)
|
|
(217,431,928)
|
|
(212,264,436)
|
|
(1,561,151,893)
|
Income from
operations
|
466,062,609
|
|
247,555,963
|
|
(154,842,624)
|
|
558,775,948
|
Noah Holdings
Limited
|
Reconciliation of GAAP to Non-GAAP
Results
|
(In RMB,
except for ADS data and percentages)
|
(unaudited)
|
|
|
Three months
ended
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2015
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Net margin
|
13.1%
|
|
12.6%
|
|
|
Adjusted net margin
attributable to
Noah shareholders (non-GAAP)*
|
18.5%
|
|
20.3%
|
|
|
|
|
|
|
|
|
Net income
attributable to
Noah Shareholders
|
83,537,366
|
|
107,363,044
|
|
28.5%
|
Adjustment for
share-based
compensation related to:
|
|
|
|
|
|
Share options
|
13,888,693
|
|
11,853,518
|
|
(14.7%)
|
Restricted shares
|
8,805,247
|
|
12,177,664
|
|
38.3%
|
Adjusted net income
attributable to
Noah Shareholders (non-GAAP)*
|
106,231,306
|
|
131,394,226
|
|
23.7%
|
|
|
|
|
|
|
Net income
attributable to
Noah Shareholders per ADS,
diluted
|
1.46
|
|
1.86
|
|
27.4%
|
Adjusted net income
attributable to
Noah Shareholders per ADS,
diluted (non-GAAP)*
|
1.84
|
|
2.26
|
|
22.8%
|
|
|
|
|
|
|
*The non-GAAP
adjustments do not take into consideration the impact of taxes on
such adjustments.
|
Noah Holdings
Limited
|
Reconciliation of GAAP to Non-GAAP
Results
|
(In RMB,
except for ADS data and percentages)
|
(unaudited)
|
|
|
Twelve months
ended
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2015
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
|
Net margin
|
24.8%
|
|
23.8%
|
|
|
Adjusted net margin
attributable to
Noah shareholders (non-GAAP)*
|
28.5%
|
|
28.8%
|
|
|
|
|
|
|
|
|
Net income
attributable to
Noah Shareholders
|
535,824,084
|
|
643,828,433
|
|
20.2%
|
Adjustment for
share-based
compensation related to:
|
|
|
|
|
|
Share options
|
33,912,040
|
|
39,008,208
|
|
15.0%
|
Restricted shares
|
33,760,448
|
|
40,163,109
|
|
19.0%
|
Adjusted net income
attributable to
Noah Shareholders (non-GAAP)*
|
603,496,572
|
|
722,999,750
|
|
19.8%
|
|
|
|
|
|
|
Net income
attributable to
Noah Shareholders per ADS,
diluted
|
9.15
|
|
11.04
|
|
20.7%
|
Adjusted net income
attributable to
Noah Shareholders per ADS,
diluted (non-GAAP)*
|
10.28
|
|
12.36
|
|
20.2%
|
|
|
|
|
|
|
*The non-GAAP
adjustments do not take into consideration the impact of taxes on
such adjustments.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-fourth-quarter-and-full-year-2016-300413836.html
SOURCE Noah Holdings Limited