SHANGHAI, March 12, 2019 /PRNewswire/ -- Noah Holdings
Limited ("Noah" or the "Company") (NYSE: NOAH), a leading
wealth and asset management service provider in China with a focus on global investment and
asset allocation services for high net worth individuals and
enterprises, today announced its unaudited
preliminary[1] financial
results for the fourth quarter of 2018 and the full year ended
December 31, 2018.
FOURTH QUARTER 2018 FINANCIAL HIGHLIGHTS
- Net revenues for the fourth quarter of
2018 were RMB822.1 million
(US$119.6 million), a 13.8% increase
from the corresponding period in 2017.
(RMB
millions,
except
percentages)
|
Q4 2017
|
|
|
Q4
2018
|
|
|
YoY Change
|
Wealth
management
|
524.8
|
|
|
578.5
|
|
|
10.2%
|
Asset
management
|
166.8
|
|
|
160.2
|
|
|
(3.9%)
|
Other financial
services
|
30.5
|
|
|
83.4
|
|
|
173.1%
|
Total net
revenues
|
722.1
|
|
|
822.1
|
|
|
13.8%
|
- Income from operations for the fourth quarter of 2018
was RMB159.7 million (US$23.2 million), a 17.8% increase from the
corresponding period in 2017.
(RMB
millions,
except
percentages)
|
Q4 2017
|
|
|
Q4 2018
|
|
|
YoY Change
|
Wealth
management
|
79.7
|
|
|
118.4
|
|
|
48.6%
|
Asset
management
|
76.9
|
|
|
41.3
|
|
|
(46.3%)
|
Other financial
services
|
(20.9)
|
|
|
0.0
|
|
|
N.A.
|
Total income from
operations
|
135.7
|
|
|
159.7
|
|
|
17.8%
|
- Net income attributable to Noah shareholders for the
fourth quarter of 2018 was RMB155.6
million (US$22.6 million), a
1.7% increase from the corresponding period in 2017.
- Non-GAAP[2]
net income attributable to Noah shareholders for the fourth
quarter of 2018 was RMB223.2 million
(US$32.5 million), a 29.2% increase
from the corresponding period in 2017.
[1] 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 2018
financial results in this press release, we will include any such
fair value adjustments in the audited consolidated financial
statements in our 2018 Form 20-F and will make a subsequent
announcement when our review concludes, as appropriate.
|
[2] Noah's Non-GAAP financial
measures are its corresponding GAAP financial measures excluding
the effects of all forms of share-based compensation and fair value
changes of equity securities (unrealized) and adjusting for sale of
equity securities, net of relevant tax impact. See
"Reconciliation of GAAP to Non-GAAP Results" at the end of this
press release.
|
FULL YEAR 2018 FINANCIAL HIGHLIGHTS
- Net revenues in the full year 2018 were
RMB3,289.6 million (US$478.5 million), a 16.4% increase from the full
year 2017.
(RMB
millions,
except
percentages)
|
FY 2017
|
|
|
FY
2018
|
|
|
YoY Change
|
Wealth
management
|
2,126.3
|
|
|
2,306.0
|
|
|
8.5%
|
Asset
management
|
588.0
|
|
|
748.5
|
|
|
27.3%
|
Other financial
services
|
112.6
|
|
|
235.1
|
|
|
108.8%
|
Total net
revenues
|
2,826.9
|
|
|
3,289.6
|
|
|
16.4%
|
- Income from operations in the full year 2018 was
RMB926.5 million (US$134.8 million), a 19.2% increase from the full
year 2017.
(RMB
millions,
except
percentages)
|
FY 2017
|
|
|
FY 2018
|
|
|
YoY Change
|
Wealth
management
|
580.9
|
|
|
607.2
|
|
|
4.5%
|
Asset
management
|
302.9
|
|
|
353.2
|
|
|
16.6%
|
Other financial
services
|
(106.8)
|
|
|
(33.9)
|
|
|
68.3%
|
Total income from
operations
|
777.0
|
|
|
926.5
|
|
|
19.2%
|
- Net income attributable to Noah shareholders in the full
year 2018 was RMB811.3 million
(US$118.0 million), a 6.3% increase
from the full year 2017.
- Non-GAAP net income attributable to Noah shareholders in
the full year 2018 was RMB1,010.8
million (US$147.0 million), a
20.7% increase from the full year 2017.
FOURTH QUARTER AND FULL YEAR 2018 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business offers financial
products and provides comprehensive financial services to high net
worth clients. Noah primarily distributes onshore and offshore
fixed income, private equity, secondary market equity and insurance
products.
- Total number of registered clients as of December 31, 2018 was 260,285, a 39.3% increase
from December 31, 2017.
- Total number of active clients[3] during the fourth quarter of 2018
was 4,717, a 24.8% decrease from the fourth quarter of 2017, due to
lower transaction value, especially that of secondary market equity
products. Total number of active clients during the full
year 2018 was 13,628, a 7.1% increase from the full year 2017.
- Aggregate value of financial products
distributed during the fourth quarter of 2018 was RMB25.2 billion (US$3.7
billion), a 10.7% decrease from the fourth quarter of
2017.
[3]
"Active clients" for our wealth management business refers to
registered clients who purchased financial products provided or
distributed by Noah during a given period.
|
Product
type
|
Three months ended
December 31,
|
|
2017
|
2018
|
|
(RMB in billions,
except percentages)
|
Fixed
income
|
15.3
|
54.5%
|
20.2
|
80.3%
|
Private
equity
|
7.4
|
26.1%
|
3.0
|
11.9%
|
Secondary market
equity
|
5.4
|
19.2%
|
1.5
|
5.7%
|
Other
products
|
0.1
|
0.2%
|
0.5
|
2.1%
|
All
products
|
28.2
|
100.0%
|
25.2
|
100.0%
|
- Aggregate value of financial products
distributed during the full year 2018 was RMB110.0 billion (US$16.0
billion), a 6.3% decrease from the full year 2017.
Product
type
|
Twelve months
ended December 31,
|
|
2017
|
2018
|
|
(RMB in billions,
except percentages)
|
Fixed
income
|
71.7
|
61.1%
|
75.5
|
68.6%
|
Private
equity
|
34.3
|
29.2%
|
18.9
|
17.1%
|
Secondary market
equity
|
10.8
|
9.2%
|
13.6
|
12.4%
|
Other
products
|
0.6
|
0.5%
|
2.0
|
1.9%
|
All
products
|
117.4
|
100.0%
|
110.0
|
100.0%
|
- Average transaction value per active
client[4] for the fourth quarter
of 2018 was RMB5.3 million
(US$0.8 million), an 18.8% increase
from the corresponding period in 2017. Average
transaction value per active client for the full year 2018 was
RMB8.1 million (US$1.2 million), a 12.5% decrease from the full
year 2017.
- Coverage network included 313 service centers
covering 83 cities as of December 31,
2018, up from 287 service centers covering 83 cities as of
September 30, 2018, and 237 service
centers covering 79 cities as of December
31, 2017.
- Number of relationship managers was 1,583 as of
December 31, 2018, a 1.5% increase
from September 30, 2018 and an 18.6%
increase from December 31, 2017.
Asset Management Business
The Company's asset management business, Gopher Asset Management
Co., Ltd. ("Gopher Asset Management" or "Gopher"), is a leading
alternative asset manager in China. Gopher Asset Management develops and
manages private equity, real estate, secondary market equity,
credit and other investments denominated in Renminbi and other
currencies.
- Total assets under management as of December 31, 2018 were RMB169.2 billion (US$24.6
billion), a 3.1% increase from September 30, 2018 and a 14.1% increase from
December 31, 2017.
[4]
"Average transaction value per active client" refers to the average
value of financial products that were purchased by active clients
during the period specified.
|
Investment
type
|
As of
September
30, 2018
|
Asset
Growth
|
Asset
Expiration/
Redemption
|
As of December
31, 2018
|
|
(RMB billions,
except percentages)
|
Private
equity
|
96.9
|
59.0%
|
3.4
|
0.1
|
100.2
|
59.2%
|
Credit
|
40.3
|
24.6%
|
4.5
|
5.4
|
39.4
|
23.3%
|
Real
estate
|
16.6
|
10.1%
|
0.5
|
0.4
|
16.7
|
9.9%
|
Secondary market
equity[5]
|
4.9
|
3.0%
|
1.4
|
0.1
|
6.2
|
3.6%
|
Other
investments
|
5.4
|
3.3%
|
1.3
|
-
|
6.7
|
4.0%
|
All
Investments
|
164.1
|
100.0%
|
11.1
|
6.0
|
169.2
|
100.0%
|
|
|
|
|
|
|
|
|
Investment
type
|
As of December
31, 2017
|
Asset
Growth
|
Asset
Expiration/
Redemption
|
As of December
31, 2018
|
|
(RMB billions,
except percentages)
|
Private
equity
|
86.9
|
58.6%
|
15.7
|
2.4
|
100.2
|
59.2%
|
Credit
|
40.0
|
27.0%
|
27.4
|
28.0
|
39.4
|
23.3%
|
Real
estate
|
11.6
|
7.8%
|
11.8
|
6.7
|
16.7
|
9.9%
|
Secondary market
equity
|
6.2
|
4.2%
|
3.7
|
3.7
|
6.2
|
3.6%
|
Other
investments
|
3.6
|
2.5%
|
3.2
|
0.1
|
6.7
|
4.0%
|
All
Investments
|
148.3
|
100.0%
|
61.8
|
40.9
|
169.2
|
100.0%
|
|
|
|
|
|
|
|
|
[5] The
asset expiration/redemption of secondary market equity investments
also includes market appreciation or depreciation.
|
Other Financial Services Business
The Company's other financial services business includes its
lending services, online wealth management and payment technology
services.
Ms. Jingbo Wang, Chairlady and
CEO of Noah, said, "We are pleased with our 2018 full year results,
and we have met the guidance we provided to the market. We have
been upgrading our business model over the past few years, which we
believe will make us less sensitive to economic cycles and be able
to maintain sustainable growth in both revenues and net
income."
FOURTH QUARTER 2018 FINANCIAL RESULTS
Net Revenues
Net revenues for the fourth quarter of 2018 were
RMB822.1 million (US$119.6 million), a 13.8% increase from the
corresponding period in 2017, primarily driven by increased
recurring service fees and other service fees.
- Wealth Management Business
-
- Net revenues from one-time commissions for the fourth
quarter of 2018 were RMB240.9 million
(US$35.0 million), which was
substantially the same as the corresponding period in 2017.
- Net revenues from recurring service fees for the fourth
quarter of 2018 were RMB297.9 million
(US$43.3 million), a 17.8% increase
from the corresponding period in 2017. The increase was primarily
due to the cumulative effect of financial products with recurring
service fees previously distributed.
- Net revenues from performance-based income for the
fourth quarter of 2018 were RMB0.1
million (US$21.2 thousand),
compared with RMB10.6 million in the
corresponding period of 2017. The decrease was primarily due to
less performance-based income generated from secondary market
equity products.
- Net revenues from other
service fees for the fourth quarter of 2018 were RMB39.6 million (US$5.8 million), a 95.5% increase from the
corresponding period in 2017, primarily due to the growth of
value-added financial services within the wealth management
segment, such as investor education and trust services.
- Asset Management Business
- Net revenues from recurring
service fees for the fourth quarter of 2018 were RMB147.9 million (US$21.5
million), a 5.0% increase from the corresponding period in
2017. The increase was primarily due to the increase in assets
under management.
- Net revenues from
performance-based income for the fourth quarter of 2018 were
RMB10.8 million (US$1.6 million), compared with RMB19.1 million in the corresponding period of
2017, primarily due to a decrease in performance-based income from
secondary market equity products.
- Other Financial Service Business
- Net revenues for the
fourth quarter of 2018 were RMB83.4
million (US$12.1 million), a
173.1% increase from the corresponding period in 2017. The increase
was primarily due to the growth of the Company's lending
business.
Operating costs and expenses
Operating costs
and expenses for the fourth quarter of 2018
were RMB662.4 million (US$96.3 million), a 12.9% increase from the
corresponding period in 2017. Operating costs and expenses
primarily consisted of compensation and benefits of RMB428.1 million (US$62.3
million), selling expenses of RMB104.8 million (US$15.2
million), general and administrative expenses of
RMB94.9 million (US$13.8 million) and other operating expenses of
RMB51.7 million (US$7.5 million).
- Operating costs and expenses for the wealth
management business for the fourth quarter of 2018 were
RMB460.1 million (US$66.9 million), a 3.4% increase from the
corresponding period in 2017, primarily due to an increase in
compensation and benefits and partially offset by a decrease in
selling expense.
- Operating costs and expenses for the asset management
business for the fourth quarter of 2018 were RMB118.9 million (US$17.3
million), a 32.2% increase from the corresponding period in
2017, primarily due to an increase in compensation and benefits as
well as selling expenses for this business.
- Operating costs and expenses for the other financial
services business for the fourth quarter of 2018 were
RMB83.4 million (US$12.1 million), a 62.2% increase from the
corresponding period in 2017 due to the expansion of the Company's
lending business.
Operating Margin
Operating margin for the fourth quarter of 2018 was
19.4%, an increase from 18.8% for the corresponding period in 2017.
The increase was mainly due to improved cost control.
- Operating margin for the wealth management business for
the fourth quarter of 2018 was 20.5%, compared with 15.2% for the
corresponding period in 2017.
- Operating margin for the asset management
business for the fourth quarter of 2018 was 25.8%, compared
with 46.1% for the corresponding period in 2017.
- Income from operations for the other financial
services business for the fourth quarter of 2018 was
break-even, improving from a loss of RMB20.9
million for the corresponding period in 2017.
Investment Income
Investment income for the fourth quarter of 2018
was RMB6.5 million (US$1.0 million), compared with RMB35.0 million in the corresponding period in
2017. The decrease was primarily due to changes in fair value of
the Company's investments in equity securities. See "Discussion of
Recently Adopted Accounting Standard and Non-GAAP Financial
Measures" below for more
details.
Income Tax Expenses
Income tax expenses for the fourth
quarter of 2018 were RMB29.2 million
(US$4.2 million), a 16.8% decrease
from the corresponding period in 2017. The decrease was primarily
due to a lower effective tax rate.
Income from Equity in Affiliates
Income from equity in affiliates for the fourth
quarter of 2018 was RMB2.5 million
(US$0.4 million), compared with
RMB17.4 million in the corresponding
period in 2017. We are still reviewing the financial results of the
funds of funds we manage and invest in as the general partner. 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 2018 was
RMB151.4 million (US$22.0 million), a 3.5% decrease from the
corresponding period in 2017.
- Net margin for the fourth quarter of 2018 was 18.4%,
down from 21.7% for the corresponding period in 2017.
- Net income attributable to Noah shareholders for the
fourth quarter of 2018 was RMB155.6
million (US$22.6 million), a
1.7% increase from the corresponding period in 2017.
- Net margin attributable to Noah shareholders for the
fourth quarter of 2018 was 18.9%, down from 21.2% for the
corresponding period in 2017.
- Net income attributable to
Noah shareholders per basic and diluted ADS for the fourth
quarter of 2018 was RMB2.61
(US$0.38) and RMB2.54 (US$0.37),
respectively, down from RMB2.69 and
RMB2.60 respectively, for the
corresponding period in 2017.
- Non-GAAP Net Income Attributable to Noah
Shareholders
-
- Non-GAAP net income attributable to Noah shareholders
for the fourth quarter of 2018 was RMB223.2
million (US$32.5 million), a
29.2% increase from the corresponding period in 2017.
- Non-GAAP net margin attributable to Noah
shareholders for the fourth quarter of 2018 was 27.1%, up from
23.9% for the corresponding period in 2017.
- Non-GAAP net income
attributable to Noah shareholders per diluted ADS for the
fourth quarter of 2018 was RMB3.64
(US$0.53), up from RMB2.92 for the corresponding period in
2017.
FULL YEAR 2018 FINANCIAL RESULTS
Net Revenues
Net revenues for the full year 2018 were
RMB3,289.6 million (US$478.5 million), a 16.4% increase from the full
year 2017, primarily due to increases in recurring service fees and
other service fees.
- Wealth Management Business
-
- Net revenues from one-time commissions for 2018 were
RMB1,018.9 million (US$148.2 million), a 6.7% decrease from 2017,
primarily due to a decline in the transaction value of financial
products purchased by active clients.
- Net revenues from recurring service fees for 2018 were
RMB1,130.0 million (US$164.4 million), a 29.6% increase from 2017.
The increase was primarily due to the cumulative effect of
financial products with recurring service fees previously
distributed by the Company.
- Net revenues from performance-based income for 2018
were RMB44.1 million (US$6.4 million), a 52.3% decrease from 2017,
primarily due to a decrease in performance-based income from
private equity products.
- Net revenues from other
service fees for 2018 were RMB113.0
million (US$16.4 million),
representing a 61.6% increase from 2017, primarily due to the
growth of value-added financial services within the wealth
management segment.
- Net revenues from
performance-based income for 2018 were RMB98.9 million (US$14.4
million), a 107.5% increase from the year 2017, primarily
due to an increase in performance-based income from real estate and
secondary market equity funds.
- Other Financial Services Business
- Net revenues for the full
year 2018 were RMB235.1 million
(US$34.2 million), a 108.8%
increase from 2017. The increase was primarily due to the growth of
the Company's lending services business.
Operating costs and expenses
Operating costs
and expenses for the full year 2018 were
RMB2,363.1 million (US$343.7 million), a 15.3% increase from the full
year 2017. Operating costs and expenses for the full year 2018
primarily consisted of compensation and benefits of RMB1,564.2 million (US$227.5 million), selling expenses of
RMB412.7 million (US$60.0 million), general and administrative
expenses of RMB279.4 million
(US$40.6 million) and other operating
expenses of RMB169.4 million
(US$24.6 million).
- Operating costs and expenses for the wealth
management business for 2018 were RMB1,698.8 million (US$247.1 million), a 9.9% increase from 2017,
primarily due to an increase in compensation and benefits as well
as selling expenses.
- Operating costs and expenses for the asset management
business for 2018 were RMB395.3
million (US$57.5 million), a
38.6% increase from 2017, primarily due to an increase in
compensation and benefits and a decrease in government
subsidies.
- Operating costs and expenses for the other financial
services business for 2018 were RMB268.9
million (US$39.1 million), a
22.6% increase from 2017 due to the expansion of the Company's
lending business.
Operating Margin
Operating margin for the full year 2018 was 28.2%,
compared to 27.5% for the full year 2017, mainly due to
increased operating efficiency and reduced losses for the other
financial services business.
- Operating margin for the wealth management business for
2018 was 26.3%, compared to 27.3% for 2017.
- Operating margin for the asset management business for
2018 was 47.2%, compared to 51.5% for 2017.
- Operating loss for other financial services business for
2018 was RMB33.9 million
(US$4.9 million), compared to a loss
of RMB106.8 million for 2017.
Investment Income
Investment income for the full year 2018 was
RMB48.6 million (US$7.0 million), a 27.8% decrease from the
corresponding period in 2017. The decrease was primarily due to
changes in fair value of equity securities. See "Discussion of
Recently Adopted Accounting Standard and Non-GAAP Financial
Measures" below for more details.
Income Tax Expenses
Income tax expenses for the full year
2018 were RMB222.3 million
(US$32.3 million), an 11.7% increase
from the full year 2017, primarily due to an increase in taxable
income offset in part by a lower effective tax rate.
Net Income
- Net Income
-
- Net income for the full year 2018 was RMB803.7 million (US$116.9
million), a 5.5% increase from the full year
2017.
- Net margin for the full year 2018 was 24.4%, compared
to 27.0% for the full year 2017.
- Net income attributable to Noah shareholders for the
full year 2018 was RMB811.3 million
(US$118.0 million), a 6.3% increase
from the full year 2017.
- Net margin attributable to Noah shareholders for the
full year 2018 was 24.7%, down from 27.0% for the corresponding
period in 2017.
- Net income attributable to
Noah shareholders per basic and diluted ADS for the full year
2018 was RMB13.85 (US$2.01) and RMB13.33 (US$1.94),
respectively, as compared to RMB13.49
and RMB12.95, respectively, for the
full year 2017.
- Non-GAAP Net Income Attributable to Noah
Shareholders
-
- Non-GAAP net income attributable to Noah shareholders
for the full year 2018 was RMB1,010.8
million (US$147.0 million), a
20.7% increase from the full year 2017.
- Non-GAAP net margin attributable to Noah
shareholders for the full year 2018 was 30.7%, compared to
29.6% for the full year 2017.
- Non-GAAP net income
attributable to Noah shareholders per diluted ADS for the full
year 2018 was RMB16.58 (US$2.41), compared to RMB14.18 for the full year 2017.
Balance Sheet and Cash Flow
As of December 31, 2018, the
Company had RMB2,706.6 million
(US$393.7 million) in cash and
cash equivalents, compared with RMB2,360.1
million as of September 30,
2018 and RMB1,906.8 million as
of December 31, 2017.
Net cash inflow from the Company's operating activities during
the fourth quarter of 2018 was RMB511.3
million (US$74.4 million). Net
cash inflow from the Company's operating activities during the full
year 2018 was RMB1,029.4 million
(US$149.7 million), compared to
RMB628.4 million during the full year
2017, driven by profit earned from business operations and enhanced
collection of factoring receivables.
Net cash outflow from the Company's investing activities during
the fourth quarter of 2018 was RMB188.4
million (US$27.4 million). Net
cash outflow from the Company's investing activities during the
full year 2018 was RMB395.7 million
(US$57.5 million), compared to
RMB833.9 million during the full year
2017. In 2018, this primarily consisted of net cash outflow for
purchasing various investments and properties and equipment in the
amount of RMB544.8 million, partially
offset by cash inflow from net of loan disbursement of RMB149.1 million.
Net cash inflow from the Company's financing activities was
RMB7.5 million (US$1.1 million) in the fourth quarter of 2018.
Net cash inflow from the Company's financing activities during the
full year 2018 was RMB109.8 million
(US$16.0 million), compared to
RMB791.8 million cash outflow during
the full year 2017. The cash inflow for 2018 was mainly due to the
proceeds related to share-based compensation and contribution of
non-controlling interest.
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 2018 financial results in this press release, we will
include any such fair value adjustments in the audited consolidated
financial statements in our 2018 Form 20-F and will make a
subsequent announcement when our review conclude, as
appropriate.
OTHER COMPANY DEVELOPMENTS
The Company also announced today that Mr. Yi Zhao has been appointed as Group President,
succeeding Mr. Kenny Lam who has
decided to depart Noah for new professional pursuits.
Mr. Zhao has more than twenty years of experience in the
financial industry. He has been leading Noah's wealth management
business since 2013 and implemented a serious of core strategies,
which led to robust growth in both transaction value and
profitability for the segment. During his tenure as the head of our
wealth management segment, he enhanced the management of our sales
network and created an elite relationship managers program. Prior
to joining Noah, Mr. Zhao worked for several insurance companies,
including Ping An Insurance, AXA-Minmetals Assurance, and Great
Wall Life Insurance. Mr. Zhao received his Bachelor's Degree from
Shenyang Sports University.
Ms. Jingbo Wang, Chairlady and
CEO of Noah, commented, "Mr. Zhao is an experienced veteran in the
financial services industry and has worked with the Company for
seven years. Under his leadership, our core wealth management
business realized milestone achievements, which solidified our
leading position in the industry. We are confident that in his new
role he will continue to deliver meaningful impact and further
strengthen Noah's competitive advantages. Meanwhile, we want to
extend our warm appreciation to Kenny for his services during the
last four years in planning and promoting key strategic initiatives
of Noah. We respect his decision to return to Hong Kong to pursue new professional endeavors
and sincerely wish him the best."
2019 FORECAST
The Company estimates that non-GAAP net income attributable to
Noah shareholders for the full year 2019 will be in the range of
RMB1.13 billion to RMB1.18 billion, an increase of 11.9% to 16.8%
compared with the full year 2018. 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 2018 unaudited financial results and recent business
activities.
The conference call may be accessed with the following
details:
Conference call
details
|
Date/Time:
|
Tuesday, March 12,
2019 at 8:00 p.m., U.S. Eastern Time
Wednesday, March 13,
2019 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 Fourth
Quarter and Full Year 2018 Earnings Call
|
Participant Entry
No.:
|
1611659
|
Participants will need to dial in 10-15 minutes early and use
this Entry Number in order to join the conference.
A telephone replay will be available starting one hour after the
end of the conference call until March 19,
2019 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088
(International Toll). The replay access code is 10129228.
A live and archived webcast of the conference call will be
available at Noah's investor relations website under the News &
Events section at http://ir.noahgroup.com.
DISCUSSION OF RECENTLY ADOPTED ACCOUNTING STANDARD AND
NON-GAAP
MEASURES
On January 1, 2018, the Company
adopted ASU 2016-01 Financial Instruments-Overall (Subtopic
825-10): Recognition and Measurement of Financial Assets and
Financial Liabilities, which requires that equity investments,
except for those accounted for under the equity method or those
that result in consolidation of the investee, be measured at fair
value, with subsequent changes in fair value recognized in net
income.
The accounting standard also includes a transition requirement
on presentation that requires the amounts reported in accumulated
other comprehensive income for equity securities that exist as of
the date of adoption previously classified as available-for-sale to
be reclassified to retained earnings.
As a result, upon adoption of this new standard, Noah recorded a
cumulative effect adjustment from other comprehensive income to
retained earnings of RMB251.6 million
(US$38.7 million), net of tax, for
the unrealized gains related to equity securities previously
classified as available-for-sale securities. This adjustment had no
overall impact on shareholders' equity; however, since these net
unrealized gains are now included within retained earnings, they
will not appear as realized gains on Noah's consolidated income
statement when sold.
The future impact to Noah's consolidated income statement from
period to period will vary depending upon the level of volatility
in the performance of the securities held in Noah's equity
portfolio and the overall market. ASU 2016-01 does not affect the
treatment of equity investments accounted for under the equity
method or those that result in consolidation of the investee.
In addition to disclosing financial results prepared in
accordance with U.S. GAAP, the Company's earnings release contains
non-GAAP financial measures excluding the effects of all forms of
share-based compensation and fair value changes of equity
investments (unrealized) and adjusting for sale of equity
securities, after including any current and deferred income tax
expense impact of those adjustments. 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 wealth and asset
management service provider in China with a focus on global investment and
asset allocation services for high net worth individuals and
enterprises. In the full year 2018, Noah distributed RMB110.0 billion (US$16.0
billion) of financial products. Through Gopher Asset
Management, Noah had assets under management of RMB169.2 billion (US$24.6
billion) as of December 31,
2018.
Noah's wealth management business primarily distributes onshore
and offshore fixed income, private equity, secondary market equity
and insurance products. Noah delivers customized financial
solutions to clients through a network of 1,583 relationship
managers across 313 service centers in 83 cities in mainland
China, and serves the
international investment needs of its clients through offices in
Hong Kong, Taiwan, United
States, Canada,
Australia and Singapore. The Company's wealth management
business had 260,285 registered clients as of December 31, 2018. As a leading alternative asset
manager in China, Gopher Asset
Management manages private equity, real estate, secondary market
equity, credit and other investments denominated in Renminbi and
other currencies. The Company also provides other financial
services, including lending services, online wealth management and
payment technology services.
For more information, please visit Noah at ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the
fourth quarter of 2018 and the full year ended December 31, 2018 are stated in RMB. This
announcement contains currency conversions of certain RMB amounts
into US$ 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 RMB6.8755 to
US$1.00, the effective noon buying
rate for December 31, 2018 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 2019 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 and manages; 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.
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
|
|
|
|
|
As of
|
|
|
|
|
September
30,
2018
|
|
December
31,
2018
|
|
December
31,
2018
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,360,111
|
|
2,704,091
|
|
393,294
|
|
|
Restricted
cash
|
|
-
|
|
2,500
|
|
364
|
|
|
Short-term
investments (including short-term
investments measured at fair value of
RMB162,153 thousands and RMB438,077
thousands, as of September 30, 2018 and
December 31, 2018, respectively)
|
|
213,153
|
|
450,477
|
|
65,519
|
|
|
Accounts receivable
and contract assets, net of
allowance for doubtful accounts of nil as of
September 30, 2018 and December 31, 2018
|
|
255,051
|
|
282,431
|
|
41,078
|
|
|
Loans receivable,
net
|
|
688,890
|
|
620,219
|
|
90,207
|
|
|
Amounts due from
related parties
|
|
625,948
|
|
572,201
|
|
83,223
|
|
|
Loans receivable from
factoring business
|
|
23,943
|
|
18,893
|
|
2,748
|
|
|
Other current
assets
|
|
455,958
|
|
453,269
|
|
65,925
|
|
|
Total current
assets
|
|
4,623,054
|
|
5,104,081
|
|
742,358
|
|
|
|
|
|
|
|
|
|
|
Long-term investments
(including long-term
investments measured at fair value of RMB860,828
thousands and RMB609,151 thousands, as of
September 30, 2018 and December 31, 2018,
respectively)
|
|
895,328
|
|
1,025,065
|
|
149,090
|
|
Investment in
affiliates
|
|
1,314,862
|
|
1,375,110
|
|
200,001
|
|
Property and
equipment, net
|
|
295,785
|
|
346,653
|
|
50,419
|
|
Non-current deferred
tax assets
|
|
97,205
|
|
113,384
|
|
16,491
|
|
Other non-current
assets
|
|
23,093
|
|
49,971
|
|
7,266
|
Total
Assets
|
|
7,249,327
|
|
8,014,264
|
|
1,165,625
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
|
565,346
|
|
671,200
|
|
97,622
|
|
|
Income tax
payable
|
|
67,170
|
|
54,296
|
|
7,897
|
|
|
Amounts due to
related parties
|
|
1,691
|
|
-
|
|
-
|
|
|
Deferred
revenues
|
|
172,171
|
|
142,925
|
|
20,788
|
|
|
Other current
liabilities
|
|
420,508
|
|
722,652
|
|
105,105
|
|
|
Total current
liabilities
|
|
1,226,886
|
|
1,591,073
|
|
231,412
|
|
Non-current deferred
tax liabilities
|
|
51,256
|
|
67,092
|
|
9,758
|
|
Convertible
notes
|
|
228,121
|
|
145,004
|
|
21,090
|
|
Other non-current
liabilities
|
|
75,824
|
|
35,718
|
|
5,195
|
|
Total
Liabilities
|
|
1,582,087
|
|
1,838,887
|
|
267,455
|
|
Equity
|
|
5,667,240
|
|
6,175,377
|
|
898,170
|
|
Total Liabilities
and Equity
|
|
7,249,327
|
|
8,014,264
|
|
1,165,625
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
|
|
|
Three months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2017
|
|
2018
|
|
2018
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others[1]:
|
|
|
|
|
|
|
|
One-time
commissions
|
130,462
|
|
173,814
|
|
25,280
|
|
33.2%
|
Recurring service fees
|
170,738
|
|
142,435
|
|
20,716
|
|
(16.6%)
|
Performance-based
income
|
9,006
|
|
147
|
|
21
|
|
(98.4%)
|
Other service
fees
|
57,023
|
|
126,212
|
|
18,357
|
|
121.3%
|
Total revenues from
others
|
367,229
|
|
442,608
|
|
64,374
|
|
20.5%
|
Revenues from funds
Gopher manages[1]:
|
|
|
|
|
|
|
|
One-time
commissions
|
113,572
|
|
69,098
|
|
10,050
|
|
(39.2%)
|
Recurring service fees
|
225,674
|
|
305,937
|
|
44,497
|
|
35.6%
|
Performance-based income
|
20,833
|
|
10,861
|
|
1,580
|
|
(47.9%)
|
Total revenues from
funds Gopher manages
|
360,079
|
|
385,896
|
|
56,127
|
|
7.2%
|
Total
revenues
|
727,308
|
|
828,504
|
|
120,501
|
|
13.9%
|
Less:
business taxes and related surcharges
|
(5,194)
|
|
(6,401)
|
|
(931)
|
|
23.2%
|
Net
revenues
|
722,114
|
|
822,103
|
|
119,570
|
|
13.8%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(167,363)
|
|
(162,638)
|
|
(23,655)
|
|
(2.8%)
|
Performance fee
compensation
|
(11,291)
|
|
(3,800)
|
|
(553)
|
|
(66.3%)
|
Other compensations
|
(200,982)
|
|
(261,677)
|
|
(38,059)
|
|
30.2%
|
Total compensation
and benefits
|
(379,636)
|
|
(428,115)
|
|
(62,267)
|
|
12.8%
|
Selling
expenses
|
(111,516)
|
|
(104,765)
|
|
(15,237)
|
|
(6.1%)
|
General
and administrative expenses
|
(79,271)
|
|
(94,938)
|
|
(13,808)
|
|
19.8%
|
Other
operating expenses
|
(41,274)
|
|
(51,710)
|
|
(7,521)
|
|
25.3%
|
Government subsidies
|
25,199
|
|
17,145
|
|
2,494
|
|
(32.0%)
|
Total operating costs
and expenses
|
(586,498)
|
|
(662,383)
|
|
(96,339)
|
|
12.9%
|
Income from
operations
|
135,616
|
|
159,720
|
|
23,231
|
|
17.8%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
12,910
|
|
14,104
|
|
2,051
|
|
9.2%
|
Interest
expense
|
(9,593)
|
|
(1,002)
|
|
(146)
|
|
(89.6%)
|
Investment income (loss), net
|
34,983
|
|
6,547
|
|
952
|
|
(81.3%)
|
Other
income (expense)
|
640
|
|
(1,326)
|
|
(193)
|
|
(307.2%)
|
Total other
income
|
38,940
|
|
18,323
|
|
2,664
|
|
(52.9%)
|
Income before taxes
and income from
equity in affiliates
|
174,556
|
|
178,043
|
|
25,895
|
|
2.0%
|
Income tax
expense
|
(35,081)
|
|
(29,203)
|
|
(4,247)
|
|
(16.8%)
|
Income from equity in
affiliates
|
17,390
|
|
2,526
|
|
367
|
|
(85.5%)
|
Net
income
|
156,865
|
|
151,366
|
|
22,015
|
|
(3.5%)
|
Less: net loss
attributable to non-
controlling Interests
|
(2,339)
|
|
(4,273)
|
|
(621)
|
|
82.7%
|
Less: effect on
retained earnings caused
by termination of redeemable non-
controlling interest of a subsidiary
|
6,201
|
|
-
|
|
-
|
|
N.A
|
Net income
attributable to Noah
shareholders
|
153,003
|
|
155,639
|
|
22,636
|
|
1.7%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
2.69
|
|
2.61
|
|
0.38
|
|
(3.0%)
|
Income per ADS,
diluted
|
2.60
|
|
2.54
|
|
0.37
|
|
(2.3%)
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
18.8%
|
|
19.4%
|
|
19.4%
|
|
|
Net margin
|
21.7%
|
|
18.4%
|
|
18.4%
|
|
|
Weighted average ADS
equivalent[2]:
|
|
|
|
|
|
|
|
Basic
|
56,782,875
|
|
59,676,698
|
|
59,676,698
|
|
|
Diluted
|
61,147,734
|
|
61,590,911
|
|
61,590,911
|
|
|
ADS equivalent
outstanding at end of
period
|
56,902,300
|
|
60,129,547
|
|
60,129,547
|
|
|
|
|
|
[1] Starting from the
first quarter of 2018, we report revenue streams in two
categories—revenues from funds Gopher manages
and revenues from others, instead of the previous
categories—third-party revenues and related party revenues, to
provide
more relevant and accurate information. We also revised the
comparative period presentation to conform to current period
classification.
[2] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs.
|
Noah Holdings
Limited
|
Condensed
Consolidated Income Statements
|
(In RMB'000,
except for USD data, per ADS data and percentages)
|
(unaudited)
|
|
|
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2017
|
|
2018
|
|
2018
|
|
|
Revenues:
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Revenues from
others[1]:
|
|
|
|
|
|
|
|
One-time
commissions
|
541,025
|
|
733,009
|
|
106,612
|
|
35.5%
|
Recurring service fees
|
605,092
|
|
593,856
|
|
86,373
|
|
(1.9%)
|
Performance-based
income
|
86,494
|
|
43,101
|
|
6,269
|
|
(50.2%)
|
Other service
fees
|
195,073
|
|
361,886
|
|
52,634
|
|
85.5%
|
Total revenues from
others
|
1,427,684
|
|
1,731,852
|
|
251,888
|
|
21.3%
|
Revenues from funds
Gopher manages[1]:
|
|
|
|
|
|
|
|
One-time
commissions
|
561,059
|
|
294,984
|
|
42,904
|
|
(47.4%)
|
Recurring service fees
|
802,761
|
|
1,182,693
|
|
172,016
|
|
47.3%
|
Performance-based income
|
54,502
|
|
100,533
|
|
14,622
|
|
84.5%
|
Total revenues from
funds Gopher manages
|
1,418,322
|
|
1,578,210
|
|
229,542
|
|
11.3%
|
Total
revenues
|
2,846,006
|
|
3,310,062
|
|
481,430
|
|
16.3%
|
Less:
business taxes and related surcharges
|
(19,098)
|
|
(20,454)
|
|
(2,975)
|
|
7.1%
|
Net
revenues
|
2,826,908
|
|
3,289,608
|
|
478,455
|
|
16.4%
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation
and benefits
|
|
|
|
|
|
|
|
Relationship manager compensation
|
(616,064)
|
|
(633,599)
|
|
(92,153)
|
|
2.8%
|
Performance fee
compensation
|
(11,291)
|
|
(21,175)
|
|
(3,080)
|
|
87.5%
|
Other compensations
|
(780,017)
|
|
(909,418)
|
|
(132,269)
|
|
16.6%
|
Total compensation
and benefits
|
(1,407,372)
|
|
(1,564,192)
|
|
(227,502)
|
|
11.1%
|
Selling
expenses
|
(320,462)
|
|
(412,720)
|
|
(60,028)
|
|
28.8%
|
General
and administrative expenses
|
(248,878)
|
|
(279,387)
|
|
(40,635)
|
|
12.3%
|
Other
operating expenses
|
(147,318)
|
|
(169,368)
|
|
(24,634)
|
|
15.0%
|
Government subsidies
|
74,156
|
|
62,583
|
|
9,102
|
|
(15.6%)
|
Total operating costs
and expenses
|
(2,049,874)
|
|
(2,363,084)
|
|
(343,697)
|
|
15.3%
|
Income from
operations
|
777,034
|
|
926,524
|
|
134,758
|
|
19.2%
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
45,020
|
|
69,841
|
|
10,158
|
|
55.1%
|
Interest
expense
|
(24,128)
|
|
(10,028)
|
|
(1,459)
|
|
(58.4%)
|
Investment income (loss), net
|
67,343
|
|
48,616
|
|
7,070
|
|
(27.8%)
|
Other
income (expense)
|
3,542
|
|
(23,356)
|
|
(3,397)
|
|
(759.4%)
|
Total other
income
|
91,777
|
|
85,073
|
|
12,372
|
|
(7.3%)
|
Income before taxes
and income from
equity in affiliates
|
868,811
|
|
1,011,597
|
|
147,130
|
|
16.4%
|
Income tax
expense
|
(199,085)
|
|
(222,320)
|
|
(32,335)
|
|
11.7%
|
Income from equity in
affiliates
|
92,136
|
|
14,469
|
|
2,104
|
|
(84.3%)
|
Net
income
|
761,862
|
|
803,746
|
|
116,899
|
|
5.5%
|
Less: net loss
attributable to non-
controlling Interests
Less: income
attributable to redeemable
non-controlling interest of Subsidiary
|
(13,745)
6,483
|
|
(7,551)
-
|
|
(1,098)
-
|
|
(45.1%)
N.A
|
Less: effect on
retained earnings caused
by termination of redeemable non-
controlling interest of a subsidiary
|
6,201
|
|
-
|
|
-
|
|
N.A
|
Net income
attributable to Noah
shareholders
|
762,923
|
|
811,297
|
|
117,997
|
|
6.3%
|
|
|
|
|
|
|
|
|
Income per ADS,
basic
|
13.49
|
|
13.85
|
|
2.01
|
|
2.7%
|
Income per ADS,
diluted
|
12.95
|
|
13.33
|
|
1.94
|
|
2.9%
|
Margin
analysis:
|
|
|
|
|
|
|
|
Operating
margin
|
27.5%
|
|
28.2%
|
|
28.2%
|
|
|
Net margin
|
27.0%
|
|
24.4%
|
|
24.4%
|
|
|
Weighted average ADS
equivalent[2]:
|
|
|
|
|
|
|
|
Basic
|
56,551,274
|
|
58,576,802
|
|
58,576,802
|
|
|
Diluted
|
60,467,645
|
|
61,421,080
|
|
61,421,080
|
|
|
ADS equivalent
outstanding at end of
period
|
56,902,300
|
|
60,129,547
|
|
60,129,547
|
|
|
|
|
|
[1] Starting from the
first quarter of 2018, we report revenue streams in two
categories—revenues from funds Gopher manages
and revenues from others, instead of the previous
categories—third-party revenues and related party revenues, to
provide
more relevant and accurate information. We also revised the
comparative period presentation to conform to current period
classification.
[2] Assumes all
outstanding ordinary shares are represented by ADSs. Each ordinary
share represents two ADSs.
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
|
|
|
|
Three months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2017
|
|
2018
|
|
2018
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
156,865
|
|
151,366
|
|
22,015
|
|
(3.5%)
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Change in foreign currency translation
adjustments
|
(13,047)
|
|
7,357
|
|
1,070
|
|
(156.4%)
|
Fair value fluctuation of available-for-s
ale Investment, net of tax of nil
|
243,655
|
|
(47)
|
|
(7)
|
|
(100.0%)
|
Comprehensive
income
|
387,473
|
|
158,676
|
|
23,078
|
|
(59.0%)
|
Less: Comprehensive
loss attributable to
non-controlling interests
|
(2,342)
|
|
(4,260)
|
|
(620)
|
|
81.9%
|
Less: effect on
retained earnings caused
by termination of redeemable non-
controlling interest of a subsidiary
|
6,201
|
|
-
|
|
-
|
|
N.A
|
Comprehensive
income attributable to
Noah shareholders
|
383,614
|
|
162,936
|
|
23,698
|
|
(57.5%)
|
Noah Holdings
Limited
|
Condensed
Comprehensive Income Statements
|
(unaudited)
|
|
|
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2017
|
|
2018
|
|
2018
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
Net
income
|
761,862
|
|
803,746
|
|
116,899
|
|
5.5%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Change in foreign currency translation
adjustments
|
(33,876)
|
|
75,752
|
|
11,018
|
|
(323.6%)
|
Fair value fluctuation of
available-for-
sale investment, net of tax of nil
|
252,706
|
|
(1,429)
|
|
(208)
|
|
(100.6%)
|
Comprehensive
income
|
980,692
|
|
878,069
|
|
127,709
|
|
(10.5%)
|
Less: Comprehensive
loss attributable to
non-controlling interests
|
(13,776)
|
|
(7,638)
|
|
(1,111)
|
|
(44.6%)
|
Less: Loss
attributable to redeemable non-
controlling interest of Subsidiary
|
6,483
|
|
-
|
|
-
|
|
N.A
|
Less: effect on
retained earnings caused
by termination of redeemable non-c
ontrolling interest of a subsidiary
|
6,201
|
|
-
|
|
-
|
|
N.A
|
Comprehensive
income attributable to
Noah shareholders
|
981,784
|
|
885,707
|
|
128,820
|
|
(9.8%)
|
Noah Holdings
Limited
|
Supplemental
Information
|
(unaudited)
|
|
|
As
of
|
|
Change
|
|
December 31,
2017
|
|
December 31,
2018
|
|
|
|
|
|
|
|
Number of
registered clients
|
186,918
|
|
260,285
|
|
39.3%
|
Number of
relationship managers
|
1,335
|
|
1,583
|
|
18.6%
|
Number of
cities under coverage
|
79
|
|
83
|
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Change
|
|
December 31,
2017
|
|
December 31,
2018
|
|
|
(in millions of
RMB, except number of active clients and
percentages)
|
Number of
active clients
|
6,276
|
|
4,717
|
|
(24.8%)
|
Transaction
value:
|
|
|
|
|
|
Fixed
income products
|
15,367
|
|
20,224
|
|
31.6%
|
Private
equity products
|
7,360
|
|
2,999
|
|
(59.3%)
|
Secondary
market equity products
|
5,412
|
|
1,426
|
|
(73.6%)
|
Other
products
|
48
|
|
521
|
|
981.4%
|
Total
transaction value
|
28,188
|
|
25,170
|
|
(10.7%)
|
Average
transaction value per client
|
4.49
|
|
5.34
|
|
18.8%
|
|
Twelve
months ended
|
|
Change
|
|
December 31,
2017
|
|
December 31,
2018
|
|
|
(in millions of
RMB, except number of active clients and
percentages)
|
Number of
active clients
|
12,720
|
|
13,628
|
|
7.1%
|
Transaction
value:
|
|
|
|
|
|
Fixed
income products
|
71,759
|
|
75,498
|
|
5.2%
|
Private
equity products
|
34,261
|
|
18,864
|
|
(44.9%)
|
Secondary
market equity products
|
10,754
|
|
13,605
|
|
26.5%
|
Other
products
|
598
|
|
2,062
|
|
245.0%
|
Total
transaction value
|
117,371
|
|
110,030
|
|
(6.3%)
|
Average
transaction value per client
|
9.23
|
|
8.07
|
|
(12.5%)
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Three months ended December 31, 2018
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Financial
Services
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
173,415
|
|
399
|
|
-
|
|
173,814
|
Recurring service
fees
|
139,996
|
|
2,439
|
|
-
|
|
142,435
|
Performance-based
income
|
147
|
|
-
|
|
-
|
|
147
|
Other service
fees
|
39,831
|
|
1,028
|
|
85,353
|
|
126,212
|
Total revenues from
others
|
353,389
|
|
3,866
|
|
85,353
|
|
442,608
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
69,018
|
|
80
|
|
-
|
|
69,098
|
Recurring service
fees
|
159,812
|
|
146,125
|
|
-
|
|
305,937
|
Performance-based
income
|
-
|
|
10,861
|
|
-
|
|
10,861
|
Total revenues from
funds Gopher
manages
|
228,830
|
|
157,066
|
|
-
|
|
385,896
|
Total
revenues
|
582,219
|
|
160,932
|
|
85,353
|
|
828,504
|
Less: business taxes
and related
surcharges
|
(3,751)
|
|
(730)
|
|
(1,920)
|
|
(6,401)
|
Net
revenues
|
578,468
|
|
160,202
|
|
83,433
|
|
822,103
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(162,215)
|
|
-
|
|
(423)
|
|
(162,638)
|
Performance fee
compensation
|
-
|
|
(3,800)
|
|
-
|
|
(3,800)
|
Other
compensation
|
(152,045)
|
|
(80,332)
|
|
(29,300)
|
|
(261,677)
|
Total compensation and
benefits
|
(314,260)
|
|
(84,132)
|
|
(29,723)
|
|
(428,115)
|
Selling
expenses
|
(91,429)
|
|
(7,278)
|
|
(6,058)
|
|
(104,765)
|
General and
administrative expenses
|
(52,444)
|
|
(27,838)
|
|
(14,656)
|
|
(94,938)
|
Other operating expenses
|
(15,241)
|
|
(1,722)
|
|
(34,747)
|
|
(51,710)
|
Government
subsidies
|
13,300
|
|
2,090
|
|
1,755
|
|
17,145
|
Total operating costs
and expenses
|
(460,074)
|
|
(118,880)
|
|
(83,429)
|
|
(662,383)
|
Income from
operations
|
118,394
|
|
41,322
|
|
4
|
|
159,720
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Three months ended December 31, 2017
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Financial
Services
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
130,190
|
|
272
|
|
-
|
|
130,462
|
Recurring service
fees
|
165,156
|
|
5,582
|
|
-
|
|
170,738
|
Performance-based
income
|
8,854
|
|
152
|
|
-
|
|
9,006
|
Other service
fees
|
20,397
|
|
5,643
|
|
30,983
|
|
57,023
|
Total revenues from
others
|
324,597
|
|
11,649
|
|
30,983
|
|
367,229
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
112,656
|
|
916
|
|
-
|
|
113,572
|
Recurring service
fees
|
89,647
|
|
136,027
|
|
-
|
|
225,674
|
Performance-based
income
|
1,826
|
|
19,007
|
|
-
|
|
20,833
|
Total revenues from
funds Gopher
manages
|
204,129
|
|
155,950
|
|
-
|
|
360,079
|
Total
revenues
|
528,726
|
|
167,599
|
|
30,983
|
|
727,308
|
Less: business taxes
and related
surcharges
|
(3,911)
|
|
(840)
|
|
(443)
|
|
(5,194)
|
Net
revenues
|
524,815
|
|
166,759
|
|
30,540
|
|
722,114
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(166,699)
|
|
-
|
|
(664)
|
|
(167,363)
|
Performance Fee
Compensation
|
-
|
|
(11,291)
|
|
-
|
|
(11,291)
|
Other
compensation
|
(117,186)
|
|
(53,406)
|
|
(30,390)
|
|
(200,982)
|
Total compensation and
benefits
|
(283,885)
|
|
(64,697)
|
|
(31,054)
|
|
(379,636)
|
Selling
expenses
|
(104,538)
|
|
(1,965)
|
|
(5,013)
|
|
(111,516)
|
General and
administrative expenses
|
(54,695)
|
|
(22,379)
|
|
(2,197)
|
|
(79,271)
|
Other operating
expenses
|
(22,800)
|
|
(3,992)
|
|
(14,482)
|
|
(41,274)
|
Government
subsidies
|
20,768
|
|
3,131
|
|
1,300
|
|
25,199
|
Total operating costs
and expenses
|
(445,150)
|
|
(89,902)
|
|
(51,446)
|
|
(586,498)
|
Income (loss) from
operations
|
79,665
|
|
76,857
|
|
(20,906)
|
|
135,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Twelve months ended December 31, 2018
|
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Financial
Services
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
731,424
|
|
1,585
|
|
-
|
|
733,009
|
Recurring service
fees
|
571,782
|
|
22,074
|
|
-
|
|
593,856
|
Performance-based
income
|
42,570
|
|
531
|
|
-
|
|
43,101
|
Other service
fees
|
113,570
|
|
8,225
|
|
240,091
|
|
361,886
|
Total revenues from
others
|
1,459,346
|
|
32,415
|
|
240,091
|
|
1,731,852
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
292,899
|
|
2,085
|
|
-
|
|
294,984
|
Recurring service
fees
|
564,228
|
|
618,465
|
|
-
|
|
1,182,693
|
Performance-based
income
|
1,739
|
|
98,794
|
|
-
|
|
100,533
|
Total revenues from
funds Gopher
manages
|
858,866
|
|
719,344
|
|
-
|
|
1,578,210
|
Total
revenues
|
2,318,212
|
|
751,759
|
|
240,091
|
|
3,310,062
|
Less: business taxes
and related
surcharges
|
(12,206)
|
|
(3,228)
|
|
(5,020)
|
|
(20,454)
|
Net
revenues
|
2,306,006
|
|
748,531
|
|
235,071
|
|
3,289,608
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(631,234)
|
|
-
|
|
(2,365)
|
|
(633,599)
|
Performance Fee
Compensation
|
-
|
|
(21,175)
|
|
-
|
|
(21,175)
|
Other
compensation
|
(534,516)
|
|
(251,923)
|
|
(122,979)
|
|
(909,418)
|
Total compensation and
benefits
|
(1,165,750)
|
|
(273,098)
|
|
(125,344)
|
|
(1,564,192)
|
Selling
expenses
|
(367,589)
|
|
(22,200)
|
|
(22,931)
|
|
(412,720)
|
General and
administrative expenses
|
(164,802)
|
|
(80,873)
|
|
(33,712)
|
|
(279,387)
|
Other operating expenses
|
(54,291)
|
|
(25,310)
|
|
(89,767)
|
|
(169,368)
|
Government
subsidies
|
53,620
|
|
6,148
|
|
2,815
|
|
62,583
|
Total operating costs
and expenses
|
(1,698,812)
|
|
(395,333)
|
|
(268,939)
|
|
(2,363,084)
|
Income (loss) from
operations
|
607,194
|
|
353,198
|
|
(33,868)
|
|
926,524
|
Noah Holdings
Limited
|
Segment Condensed
Income Statements
|
(unaudited)
|
|
Twelve months ended December 31, 2017
|
|
Wealth
Management
Business
|
|
Asset
Management
Business
|
|
Other
Financial
Services
Business
|
|
Total
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Revenues from
others:
|
|
|
|
|
|
|
|
One-time
commissions
|
539,938
|
|
1,087
|
|
-
|
|
541,025
|
Recurring service
fees
|
577,544
|
|
27,548
|
|
-
|
|
605,092
|
Performance-based
income
|
84,105
|
|
2,389
|
|
-
|
|
86,494
|
Other service
fees
|
70,390
|
|
10,712
|
|
113,971
|
|
195,073
|
Total revenues from
others
|
1,271,977
|
|
41,736
|
|
113,971
|
|
1,427,684
|
Revenues from funds
Gopher
manages:
|
|
|
|
|
|
|
|
One-time
commissions
|
560,047
|
|
1,012
|
|
-
|
|
561,059
|
Recurring service
fees
|
300,352
|
|
502,409
|
|
-
|
|
802,761
|
Performance-based
income
|
9,019
|
|
45,483
|
|
-
|
|
54,502
|
Total revenues from
funds Gopher
manages
|
869,418
|
|
548,904
|
|
-
|
|
1,418,322
|
Total
revenues
|
2,141,395
|
|
590,640
|
|
113,971
|
|
2,846,006
|
Less: business taxes
and related
surcharges
|
(15,128)
|
|
(2,599)
|
|
(1,371)
|
|
(19,098)
|
Net
revenues
|
2,126,267
|
|
588,041
|
|
112,600
|
|
2,826,908
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
|
|
|
|
|
Relationship
manager
compensation
|
(611,550)
|
|
(4)
|
|
(4,510)
|
|
(616,064)
|
Performance Fee
Compensation
|
-
|
|
(11,291)
|
|
-
|
|
(11,291)
|
Other
compensation
|
(463,370)
|
|
(190,032)
|
|
(126,615)
|
|
(780,017)
|
Total compensation and
benefits
|
(1,074,920)
|
|
(201,327)
|
|
(131,125)
|
|
(1,407,372)
|
Selling
expenses
|
(295,798)
|
|
(9,271)
|
|
(15,393)
|
|
(320,462)
|
General and
administrative expenses
|
(146,122)
|
|
(70,618)
|
|
(32,138)
|
|
(248,878)
|
Other operating
expenses
|
(77,490)
|
|
(27,773)
|
|
(42,055)
|
|
(147,318)
|
Government
subsidies
|
49,008
|
|
23,848
|
|
1,300
|
|
74,156
|
Total operating costs
and expenses
|
(1,545,322)
|
|
(285,141)
|
|
(219,411)
|
|
(2,049,874)
|
Income (loss) from
operations
|
580,945
|
|
302,900
|
|
(106,811)
|
|
777,034
|
Noah Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for per ADS data and percentages)
|
(unaudited) [6]
|
|
|
Three months ended
|
|
December
31,
|
|
December
31,
|
|
Change
|
|
2017
|
|
2018
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income
attributable to Noah
shareholders
|
153,003
|
|
155,639
|
|
1.7%
|
Adjustment for
share-based
compensation related to:
|
|
|
|
|
|
Share options
|
10,796
|
|
12,862
|
|
19.1%
|
Restricted shares
|
13,625
|
|
21,312
|
|
56.4%
|
Less: loss from fair
value
changes of equity securities
(unrealized)
|
-
|
|
(4,596)
|
|
N.A
|
Add: Gains from sales
of equity
securities
|
-
|
|
12,011
|
|
N.A
|
Less: Tax effect of
adjustments[7]
|
4,739
|
|
(16,730)
|
|
N.A
|
Non-GAAP net
income
attributable to Noah shareholders
|
172,685
|
|
223,150
|
|
29.2%
|
|
|
|
|
|
|
Net margin
attributable to Noah
shareholders
|
21.2%
|
|
18.9%
|
|
|
Non-GAAP net
margin
attributable to Noah shareholders
|
23.9%
|
|
27.1%
|
|
|
Net income
attributable to Noah
shareholders per ADS, diluted
|
2.60
|
|
2.54
|
|
(2.3%)
|
Non-GAAP net
income
attributable to Noah shareholders
per ADS, diluted
|
2.92
|
|
3.64
|
|
24.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[6] Noah's Non-GAAP financial
measures are its corresponding GAAP financial measures excluding
the effects of all forms of share-based compensation and fair value
changes of equity securities (unrealized) and adjusting for sale of
equity securities, after including any income tax effect
|
[7] Starting from the fourth quarter
of 2018, we include current and deferred income tax expense impact
of all non-GAAP adjustments to arrive at a non-GAAP measure. We
also revised the comparative period presentation to conform to
current period measurement.
|
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,
|
|
Change
|
|
2017
|
|
2018
|
|
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
Net income
attributable to
Noah shareholders
|
762,923
|
|
811,297
|
|
6.3%
|
Adjustment for
share-based
compensation related to:
|
|
|
|
|
|
Share options
|
51,054
|
|
45,973
|
|
(10.0%)
|
Restricted
shares
|
42,581
|
|
66,790
|
|
56.9%
|
Less: loss from fair
value
changes of equity securities
(unrealized)
|
-
|
|
(39,557)
|
|
N.A
|
Add: Gains from
sales
of equity securities
|
-
|
|
45,240
|
|
N.A
|
Less: Tax effect of
a
djustments
|
19,185
|
|
1,966
|
|
(110.2%)
|
Non-GAAP net
income
attributable to Noah
shareholders
|
837,373
|
|
1,010,823
|
|
20.7%
|
|
|
|
|
|
|
Net margin
attributable to
Noah shareholders
|
27.0%
|
|
24.7%
|
|
|
Non-GAAP net margin
a
ttributable to Noah
shareholders
|
29.6%
|
|
30.7%
|
|
|
Net income
attributable to
Noah shareholders per ADS,
diluted
|
12.95
|
|
13.33
|
|
2.9%
|
Non-GAAP net
income
attributable to Noah
shareholders per ADS, diluted
|
14.18
|
|
16.58
|
|
16.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-preliminary-financial-results-for-the-fourth-quarter-and-full-year-2018-300810977.html
SOURCE Noah Holdings Limited