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

SHANGHAI, Nov. 30, 2023 /PRNewswire/ — Noah Holdings Limited (“Noah” or the “Company”) (NYSE: NOAH and HKEX: 6686), a leading wealth management service provider in China offering comprehensive global investment and asset allocation advisory services primarily for high net worth investors, today announced its unaudited financial results for the third quarter of 2023.

THIRD QUARTER 2023 FINANCIAL HIGHLIGHTS

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

(RMB millions,

except percentages)

Q3 2022

Q3 2023

YoY Change

Wealth management

466.0

548.8

17.8 %

Asset management

200.3

191.4

(4.4 %)

Other businesses

18.2

9.8

(46.2 %)

Total net revenues

684.5

750.0

9.6 %

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

(RMB millions,

except percentages)

Q3 2022

Q3 2023

YoY Change

Wealth management

133.2

154.5

16.0 %

Asset management

117.7

106.5

(9.6 %)

Other businesses

(19.1)

(12.1)

(36.6 %)

Total income from operations

231.8

248.9

7.4 %

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

THIRD QUARTER 2023 OPERATIONAL UPDATES

Wealth Management Business

We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. Noah primarily distributes private equity, private secondary, mutual funds and other products denominated in RMB and other currencies.

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

Three months ended September 30,

2022

2023

Product type

(RMB in billions, except percentages)

Mutual fund products

11.7

64.8 %

14.9

66.9 %

Private secondary products

3.3

18.5 %

5.7

25.4 %

Private equity products

2.5

13.9 %

0.7

3.1 %

Other products[3]

0.5

2.8 %

1.0

4.6 %

All products

18.0

100.0 %

22.3

100.0 %

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

Asset Management Business

Our asset management business is conducted through Gopher Asset Management Co., Ltd. (“Gopher Asset Management”), a leading multi-asset manager in China with overseas offices in Hong Kong and the United States. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities to multi-strategies investments denominated in RMB and other currencies.

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

Investment type

As of 
June 30, 
2023


Growth


Distribution/ 
Redemption

As of
September 30, 
2023

(RMB billions, except percentages)

Private equity

132.9

84.7 %

0.2

1.4

131.7

85.0 %

Public securities[4]

11.6

7.4 %

4.2

3.6

12.2

7.9 %

Real estate

6.6

4.2 %

0.3

0.6

6.3

4.0 %

Multi-strategies

4.4

2.8 %

0.2

4.2

2.8 %

Others

1.4

0.9 %

0.9

0.5

0.3 %

All Investments

156.9

100.0 %

4.7

6.7

154.9

100.0 %

 

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

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

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

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

 

Other Businesses

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

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

THIRD QUARTER 2023 FINANCIAL RESULTS

Net Revenues

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

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

Operating Costs and Expenses

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

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

Operating Margin

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

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

Investment Income/loss

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

Income Tax Expenses

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

Loss from Equity in Affiliates

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

Net Income

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

Balance Sheet and Cash Flow

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

Net cash inflow from the Company’s operating activities during the third quarter of 2023 was RMB404.4 million (US$55.4 million), primarily due to operating cash inflow generated by net income and collection of accounts receivables.

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

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

CONFERENCE CALL 

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

Conference title:

Noah Holdings 3Q23 Earnings Conference Call

Date/Time: 

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

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

Dial in:

– Hong Kong Toll Free:

800-963976

– United States Toll Free:

1-888-317-6003

– Mainland China Toll Free:

4001-206115

– International Toll:

1-412-317-6061

Participant Password:

7559504

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

A live and archived webcast of the conference call will be available at the Company’s investor relations website under the “Financial Reports” section at http://ir.noahgroup.com.

DISCUSSION OF NON-GAAP MEASURES

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company’s earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation and net of tax impact, if any. See “Reconciliation of GAAP to Non-GAAP Results” at the end of this press release.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measures used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies.

When evaluating the Company’s operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company’s management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management. 

ABOUT NOAH HOLDINGS LIMITED

Noah Holdings Limited (NYSE: NOAH and HKEX:6686) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. Noah is a Cayman Islands holding company and carries on business in Hong Kong as Noah Holdings Private Wealth and Asset Management Limited. In the first nine months of 2023, Noah distributed RMB57.5 billion (US$7.9 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB154.9 billion (US$21.2 billion) as of September 30, 2023.

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

For more information, please visit Noah at ir.noahgroup.com.

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the third quarter of 2023 ended September 29, 2023 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.296 to US$1.00, the effective noon buying rate for September 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These statements include, but are not limited to, estimates regarding the sufficiency of Noah’s cash and cash equivalents and liquidity risk. A number of factors could cause Noah’s actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with investment products distributed to Noah’s investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah’s filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

Contacts: 

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

— FINANCIAL AND OPERATIONAL TABLES FOLLOW —

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)

As of

June 30,

September
30, 

September
30, 

2023

2023

2023

RMB’000

RMB’000

USD’000

Assets

Current assets:

Cash and cash equivalents

4,740,434

4,959,550

679,763

Restricted cash

143,255

153,908

21,095

Short-term investments

445,485

407,872

55,904

Accounts receivable, net

534,885

445,386

61,045

Loans receivable, net

341,083

315,785

43,282

Amounts due from related parties

429,202

406,764

55,752

Other current assets 

200,588

189,473

25,969

Total current assets 

6,834,932

6,878,738

942,810

Long-term investments, net

980,257

995,746

136,478

Investment in affiliates

1,464,702

1,491,173

204,382

Property and equipment, net

2,525,732

2,510,839

344,139

Operating lease right-of-use assets, net

152,040

145,410

19,930

Deferred tax assets

436,240

435,632

59,708

Other non-current assets 

169,454

171,083

23,449

Total Assets

12,563,357

12,628,621

1,730,896

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses 

562,029

545,240

74,731

Income tax payable

141,693

166,959

22,884

Deferred revenues

71,440

88,377

12,113

Dividend payable

177,502

49

7

Other current liabilities

584,384

578,296

79,262

Contingent liabilities

592,097

595,137

81,570

Total current liabilities

2,129,145

1,974,058

270,567

Operating lease liabilities, non-current

79,267

77,418

10,611

Deferred tax liabilities

230,797

229,003

31,387

Other non-current liabilities

54,495

45,058

6,176

Total Liabilities 

2,493,704

2,325,537

318,741

Equity

10,069,653

10,303,084

1,412,155

Total Liabilities and Equity

12,563,357

12,628,621

1,730,896

 

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)

Three months ended

September 30,

September
30,

September 30,

Change

2022

2023

2023

Revenues:

RMB’000

RMB’000

USD’000

Revenues from others:

One-time commissions

92,551

199,286

27,314

115.3 %

Recurring service fees

195,429

171,408

23,493

(12.3 %)

Performance-based income

17,658

8,440

1,157

(52.2 %)

Other service fees

71,290

74,355

10,191

4.3 %

Total revenues from others

376,928

453,489

62,155

20.3 %

Revenues from funds Gopher
     manages:

One-time commissions

7,846

32

4

(99.6 %)

Recurring service fees

296,648

295,982

40,568

(0.2 %)

Performance-based income

10,109

5,543

760

(45.2 %)

Total revenues from funds
     Gopher manages

 

314,603

 

301,557

 

41,332

 

(4.1 %)

Total revenues

691,531

755,046

103,487

9.2 %

Less: VAT related surcharges 

(7,063)

(5,088)

(697)

(28.0 %)

Net revenues

684,468

749,958

102,790

9.6 %

Operating costs and expenses:

Compensation and benefits

Relationship managers

(108,971)

(185,748)

(25,459)

70.5 %

Others

(234,055)

(215,047)

(29,475)

(8.1 %)

Total compensation and
      benefits

(343,026)

(400,795)

(54,934)

16.8 %

Selling expenses

(75,995)

(119,707)

(16,407)

57.5 %

General and administrative
      expenses

(57,511)

(67,407)

(9,239)

17.2 %

Reversal of credit losses

5,274

525

72

(90.0 %)

Other operating expenses 

(25,084)

(18,982)

(2,602)

(24.3 %)

Government subsidies 

43,645

105,297

14,432

141.3 %

Total operating costs and
   expenses 

 

(452,697)

 

(501,069)

 

(68,678)

 

10.7 %

Income from operations 

231,771

248,889

34,112

7.4 %

Other income:

Interest income 

16,847

43,465

5,957

158.0 %

Investment (loss) income

(7,233)

9,640

1,321

N.A.

Other income

10,066

2,446

335

(75.7 %)

Total other income

19,680

55,551

7,613

182.3 %

Income before taxes and
  income from equity in affiliates

251,451

304,440

41,725

21.1 %

Income tax expense

(51,078)

(68,499)

(9,389)

34.1 %

Loss from equity in affiliates

(22,406)

(3,897)

(534)

(82.6 %)

Net income

177,967

232,044

31,802

30.4 %

Less: net loss attributable to
   non-controlling interests

 

(4,448)

 

(1,282)

 

(176)

 

(71.2 %)

Net income attributable to
   Noah shareholders 

182,415

233,326

31,978

27.9 %

Income per ADS, basic

2.64

3.36

0.46

27.3 %

Income per ADS, diluted

2.63

3.36

0.46

27.8 %

 

Margin analysis:

Operating margin

33.9 %

33.2 %

33.2 %

Net margin

26.0 %

30.9 %

30.9 %

 

Weighted average ADS
equivalent[1]:

Basic

 

69,212,818

 

69,472,282

 

69,472,282

Diluted

69,255,667

69,485,287

69,485,287

ADS equivalent outstanding at
end of period

 

62,558,122

 

63,154,215

 

63,154,215

 

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

 

 Noah Holdings Limited 

Condensed Comprehensive Income Statements 

(unaudited) 

Three months ended 

September
30
,

September 30,

September
30
,

Change

2022

2023

2023

RMB’000

RMB’000

USD’000

Net income

177,967

232,044

31,802

30.4 %

Other comprehensive income, net of tax:

     Foreign currency translation
    adjustments

107,640

21,405

2,934

(80.1 %)

Comprehensive income

285,607

253,449

34,736

(11.3 %)

    Less: Comprehensive loss attributable
to non-controlling interests

(4,428)

(1,169)

(160)

73.6 %

Comprehensive income attributable to
    Noah
shareholders

290,035

254,618

34,896

(12.2 %)

 

Noah Holdings Limited

Supplemental Information 

(unaudited) 

As of 

September 30
2022

September 30
2023

Change

Number of registered clients 

433,250

452,222

4.4 %

Number of relationship managers 

1,257

1,408

12.0 %

Number of cities in mainland China under
coverage

76

59

(22.4 %)

Three months ended 

September 30,
2022

September 30
2023

Change

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

Number of active clients

22,641

9,489

(58.1 %)

Transaction value: 

Private equity products 

2,487

693

(72.1 %)

Private secondary products

3,326

5,670

70.5 %

Mutual fund products 

11,650

14,929

28.1 %

Other products

507

1,024

102.1 %

Total transaction value

17,970

22,316

24.2 %

   

Noah Holdings Limited

Segment Condensed Income Statements 

(unaudited)

Three months ended September 30, 2023

Wealth 
Management
Business

Asset 
Management
Business

Other 
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Revenues from others

One-time commissions

199,286

199,286

Recurring service fees

171,408

171,408

Performance-based income

8,440

8,440

Other service fees

61,915

12,440

74,355

Total revenues from others

441,049

12,440

453,489

Revenues from funds Gopher
     manages

One-time commissions

32

32

Recurring service fees

109,368

186,614

295,982

Performance-based income

405

5,138

5,543

Total revenues from funds Gopher
     manages

109,773

191,784

301,557

Total revenues

550,822

191,784

12,440

755,046

Less: VAT related surcharges 

(2,074)

(389)

(2,625)

(5,088)

Net revenues

548,748

191,395

9,815

749,958

Operating costs and expenses:

Compensation and benefits

Relationship managers

(179,854)

(5,894)

(185,748)

Others

(144,256)

(64,041)

(6,750)

(215,047)

Total compensation and benefits

(324,110)

(69,935)

(6,750)

(400,795)

Selling expenses

(94,088)

(18,723)

(6,896)

(119,707)

General and administrative
     expenses 

 

(53,401)

 

(9,217)

 

(4,789)

 

(67,407)

(Provision for) reversal of credit
     losses

 

(894)

 

(400)

 

1,819

 

525

Other operating expenses

(11,677)

(298)

(7,007)

(18,982)

Government subsidies 

89,925

13,656

1,716

105,297

Total operating costs and expenses 

(394,245)

(84,917)

(21,907)

(501,069)

Income (loss) from operations

154,503

106,478

(12,092)

248,889

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 

Three months ended September 30, 2022

Wealth 
Management
Business

Asset 
Management
Business

Other 
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Revenues from others

One-time commissions

92,551

92,551

Recurring service fees

195,429

195,429

Performance-based income

17,658

17,658

Other service fees

49,368

21,922

71,290

Total revenues from others

355,006

21,922

376,928

Revenues from funds Gopher
     manages

One-time commissions

7,846

7,846

Recurring service fees

112,636

184,012

296,648

Performance-based income

515

9,594

10,109

Total revenues from funds Gopher
      manages

 

113,151

 

201,452

 

314,603

Total revenues

468,157

201,452

21,922

691,531

Less: VAT related surcharges 

(2,212)

(1,139)

(3,712)

(7,063)

Net revenues

465,945

200,313

18,210

684,468

Operating costs and expenses:

Compensation and benefits

Relationship managers

(103,275)

(5,696)

(108,971)

Others

(165,245)

(58,758)

(10,052)

(234,055)

Total compensation and benefits

(268,520)

(64,454)

(10,052)

(343,026)

Selling expenses

(65,988)

(8,796)

(1,211)

(75,995)

General and administrative
     expenses 

 

(39,345)

 

(10,947)

 

(7,219)

 

(57,511)

Reversal of (provision for) credit
     losses

 

931

 

(14)

 

4,357

 

5,274

Other operating expenses

(1467)

(357)

(23,260)

(25,084)

Government subsidies 

41,610

2,005

30

43,645

Total operating costs and expenses 

(332,779)

(82,563)

(37,355)

(452,697)

Income (loss) from operations

133,166

117,750

(19,145)

231,771

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)

Three months ended September 30, 2023

Wealth 
Management
Business

Asset 
Management
Business

Other
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Mainland China

333,911

116,355

12,440

462,706

Hong Kong

165,361

42,668

208,029

Others

51,550

32,761

84,311

Total revenues

 

550,822

 

191,784

12,440

755,046

 

Three months ended September 30, 2022

Wealth 
Management
Business

Asset 
Management
Business

Other
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Mainland China

302,088

173,771

21,922

497,781

Hong Kong

125,240

6,945

132,185

Others

40,829

20,736

61,565

Total revenues

468,157

201,452

21,922

691,531

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

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

(unaudited) 

Three months ended 

September
30, 

September 

30,

Change 

2022

2023

RMB’000

RMB’000

Net income attributable to Noah shareholders

182,415

233,326

27.9 %

Adjustment for share-based compensation

11,148

(1,161)

N.A.

Less: tax effect of adjustments

2,684

(281)

N.A.

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

190,879

232,446

21.8 %

 

Net margin attributable to Noah shareholders

 

26.7 %

 

31.1 %

Non-GAAP net margin attributable to Noah shareholders

27.9 %

31.0 %

Net income attributable to Noah shareholders per ADS,
         diluted

2.63

3.36

27.8 %

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

2.76

3.35

21.4 %

 

Cision View original content:https://www.prnewswire.com/apac/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2023-302000676.html

SOURCE Noah Holdings Limited