Press Releases
Printer Friendly Version  View printer-friendly version
<< Back
Noah Holdings Limited Announces Unaudited Financial Results For The Third Quarter Of 2015

SHANGHAI, Nov. 16, 2015 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth management services provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China, today announced its unaudited financial results for the third quarter of 2015.

Starting from the fourth quarter of 2014, the Company has presented its financial results in three business segments: (i) wealth management, (ii) asset management and (iii) internet finance. To facilitate comparisons with the third quarter 2015 financial results, the Company has also presented its historical third quarter 2014 financial results organized by the aforementioned business segments.

THIRD QUARTER 2015 FINANCIAL HIGHLIGHTS

  • Net revenues in the third quarter of 2015 were US$82.6 million, a 31.4% increase from the corresponding period in 2014.

 

(US$ millions, except percentages)


Q3 2014



Q3 2014

Segment %



Q3 2015



Q3 2015

Segment %



YoY

Change


Wealth management



48.4




77.0

%



59.3




71.7

%



22.4

%

Asset management



13.8




22.0

%



20.8




25.2

%



50.6

%

Internet finance



0.6




1.0

%



2.5




3.0

%



304.6

%






















Total net revenues



62.9




100.0

%



82.6




100.0

%



31.4

%

 

  • Income from operations in the third quarter of 2015 was US$28.0 million, a 22.3% increase from the corresponding period in 2014.

 

(US$ millions, except percentages)


Q3 2014



Q3 2014

Segment %



Q3 2015



Q3 2015

Segment %



YoY

Change


Wealth management



18.9




82.8

%



18.5




66.1

%



(2.4%)


Asset management



7.8




33.9

%



15.8




56.5

%



103.8

%

Internet finance



(3.8)




(16.8%)




(6.3)




(22.6%)




65.1

%






















Income from operations



22.9




100.0

%



28.0




100.0

%



22.3

%

 

  • Net income attributable to Noah shareholders in the third quarter of 2015 was US$23.9 million, a 33.7% increase from the corresponding period in 2014.
  • Non-GAAP1 net income attributable to Noah shareholders in the third quarter of 2015 was US$26.2 million, a 34.8% increase from the corresponding period in 2014.

 

THIRD QUARTER 2015 OPERATIONAL UPDATES

Wealth Management Business

The Company's wealth management business provides global wealth investment and asset allocation services to high net worth individuals and enterprise clients in China.

  • The total number of registered clients as of September 30, 2015 was 88,663, consisting of 85,664 registered individual clients, 2,880 registered enterprise clients and 119 wholesale clients that have entered into cooperation agreements with the Company, a 34.2% increase since September 30, 2014.
  • The total number of active clients2 during the third quarter of 2015 was 4,014, a 1.9% decrease from the corresponding period in 2014.
  • The aggregate value of wealth management products distributed by the Company during the third quarter of 2015 was US$4.1 billion (approximately RMB26.1 billion), a 41.8% increase from the corresponding period in 2014.

 

Product type


Three months ended September 30,




2014



2015









(RMB in billions, except percentages)


Fixed income products



9.9




53.9

%



7.6




29.0

%






Private equity products



1.8




9.9

%



10.3




39.4

%






Secondary market equity fund products



5.6




30.4

%



4.1




15.6

%






Other products



1.1




5.8

%



4.2




16.0

%




























All products



18.4




100.0

%



26.1




100.0

%






 

  • The average transaction value per client3 in the third quarter of 2015 was US$1.0 million (approximately RMB6.5 million), a 44.5% increase from the corresponding period in 2014, reflecting a change in product mix.
  • The coverage network included 130 branches and sub-branches covering 65 cities as of September 30, 2015, up from 112 branches and sub-branches covering 64 cities as of June 30, 2015, and 91 branches and sub-branches covering 60 cities as of September 30, 2014.
  • The number of relationship managers was 1,038 as of September 30, 2015, up from 775 and 953 as of September 30, 2014 and June 30, 2015, respectively.
     
     

Asset Management Business

The Company's asset management business develops and manages financial products denominated in both Renminbi and U.S. dollar. These financial products include real estate funds and funds of funds, including private equity funds, real estate funds, hedge funds and fixed income funds.

  • The total assets under management as of September 30, 2015 were US$12.1 billion (approximately RMB77.0 billion), a 63.8% increase from September 30, 2014 and a 19.4% increase from June 30, 2015.

 

Product type


As of June 30,

2015



Asset

Growth



Asset

Expiration



As of September 30,

2015






(RMB in billions, except percentages)



Real estate funds and real estate funds of funds



30.1




46.7

%



5.2




4.6




30.7




39.9

%



Private equity funds of funds



22.0




34.1

%



10.1







32.1




41.7

%



Secondary market equity funds of funds



9.2




14.3

%



1.3




0.1




10.4




13.5

%



Other fixed income funds of funds



3.1




4.9

%



0.8




0.2




3.8




4.9

%






























All products



64.4




100.0

%



17.4




4.9




77.0




100.0

%



Internet Finance Business

The Company's internet finance business provides financial products and services through a proprietary internet finance platform targeting white-collar professionals in China.

  • The aggregate value of financial products distributed by the Company through its internet finance platform in the third quarter of 2015 was US$358.0 million (approximately RMB2.3 billion), an 820.8% increase from the third quarter of 2014.
  • The total number of enterprise clients as of September 30, 2015 was 414, up from 40 and 354 as of September 30, 2014 and June 30, 2015, respectively.

Mr. Kenny Lam, Group President of Noah, said, "The macro environment in the third quarter was one of the most volatile in recent years. With our cautious approach to risk management and product selection, we have effectively managed this volatility and continue to deliver solid results. Our clients recognize the benefits of our commitment to long term value investing and we believe that the volatile market conditions create an opportunity for us to expand our client base even further."

"Going forward we will continue to invest in our research, product selection and asset management capabilities, as well as technology platforms to support the sustainable growth of our business. We are pleased to see that this strategy is already bearing fruit and are confident that we will continue to cement Noah's position as a leading wealth and asset management in China," added Mr. Lam.

THIRD QUARTER 2015 FINANCIAL RESULTS

Net Revenues

Net revenues for the third quarter of 2015 were US$82.6 million, a 31.4% increase from the corresponding period in 2014, primarily due to increases in one-time commission revenues, recurring service fees and performance-based income.

  • Wealth Management Business
    • Net revenues from one-time commissions for the third quarter of 2015 were US$27.8 million, a 10.9% increase from the corresponding period in 2014, primarily due to an increase in the aggregate value of the wealth management products distributed by the Company.
    • Net revenues from recurring service fees for the third quarter of 2015 were US$24.8 million, a 8.3% increase from the corresponding period in 2014, mainly due to the cumulative effect of finance products previously distributed by the Company with chargeable recurring service fees, which was partially offset by the impact of lower recurring service fee rates due to a change in product mix.
    • Net revenues from performance-based income for the third quarter of 2015 were US$5.4 million, primarily consisting of performance-based income received for the positive performance of the secondary equity market fund products distributed by the Company.
    • Net revenues from other service fees for the third quarter of 2015 were US$1.3 million, compared with US$0.2 million in the corresponding period of 2014.
  • Asset Management Business
    • Net revenues from recurring service fees for the third quarter of 2015 were US$16.2 million, a 35.8% increase from the corresponding period in 2014, primarily due to the increase in assets under management by the Company, partially offset by the impact of lower management fee rates due to a change in composition of asset types under management.
    • Net revenues from performance-based income for the third quarter of 2015 were US$4.2 million, a 119.7% increase compared with the corresponding period in 2014, primarily consisting of performance-based income received for the positive performance of secondary equity market funds managed by the Company.
  • Internet Finance Business
    • Net revenues for the third quarter of 2015 were US$2.5 million, a 304.6% increase from the corresponding period in 2014, primarily because this is a new and fast growing business segment for the Company.

Operating costs and expenses

Operating costs and expenses include compensation and benefits, selling expenses, G&A expenses, other operating expenses and government subsidies. Operating cost and expenses for the third quarter of 2015 were US$54.7 million, a 36.6% increase from the corresponding period in 2014.

  • Wealth Management Business

Operating costs and expenses for the third quarter of 2015 were US$40.8 million, a 38.3% increase from the corresponding period in 2014.

    • Compensation and benefits includes compensation for relationship managers and back-office employees. Compensation and benefits for the third quarter of 2015 were US$34.1 million, a 59.6% increase from the corresponding period in 2014. In the third quarter of 2015, relationship manager compensation increased by 61.8% from the corresponding period in 2014, reflecting an increase in the aggregate value of financial products distributed and an increase in commission rate to relationship managers driven by the change in product mix. Other compensation for the third quarter of 2015 increased by 56.2% from the corresponding period in 2014, primarily due to increases in both the number of back-office employees and share-based compensation.
    • Selling expenses for the third quarter of 2015 were US$9.8 million, a 76.8% increase from the corresponding period in 2014, primarily due to increased general marketing expenses resulting from an increase in the Company's marketing efforts, as well as increased employee activities and rental fees.
    • G&A expenses for the third quarter of 2015 were US$2.9 million, a 2.5% increase from the corresponding period in 2014.
    • Other operating expenses, which include other costs incurred directly in relation to the Company's revenues, for the third quarter of 2015 were US$1.6 million, an increase of 22.4% from the corresponding period in 2014. The increase was primarily due to the growth of other businesses within the wealth management segment.
    • Government subsidies represent cash subsidies received from local governments for general corporate purposes. The Company received US$7.6 million in government subsidies in the third quarter of 2015, compared to US$1.6 million in the corresponding period of 2014.
  • Asset Management Business

Operating costs and expenses for the third quarter of 2015 were US$5.0 million, a 17.4% decrease from the corresponding period in 2014.

    • Compensation and benefits include compensation of managers of institutional client relationships, fund managers and back-office employees. Compensation and benefits for the third quarter of 2015 were US$7.9 million, a 48.2% increase from the corresponding period in 2014, primarily due to an increase in performance fee compensation to fund managers as higher performance-based income was recognized in the third quarter of 2015 compared to the corresponding period in 2014.
    • Selling expenses for the third quarter of 2015 were US$1.0 million, compared with US$0.2 million in the corresponding period of 2014.
    • G&A expenses for the third quarter of 2015 were US$1.4 million, a 33.9% decrease from the corresponding period in 2014, primarily due to decreased legal fees.
    • Government subsidies represent cash subsidies received from local governments for general corporate purposes. The Company received US$6.2 million in government subsidies in the third quarter of 2015, compared to US$1.6 million in the corresponding period in 2014

 

  • Internet Finance Business

Operating costs and expenses represent the Company's expenses in human resources, marketing and internet infrastructure, as well as other expenses incurred in promoting the Company's internet finance business. Operating costs and expenses for the third quarter of 2015 were US$8.8 million, primarily consisting of compensation and benefits of US$5.1 million, selling expenses of US$1.1 million, G&A expenses of US$1.9 million and other operating expenses of US$0.7 million.

Operating Margin

Operating margin for the third quarter of 2015 was 33.9%, as compared to 36.4% for the corresponding period in 2014.

  •  Wealth Management Business

Operating margin for the third quarter of 2015 was 31.2%, compared to 39.1% for the corresponding period in 2014. The decrease was mainly due to higher growth rate of operating costs and expenses compared to the growth rate of net revenues in the third quarter of 2015.

  • Asset Management Business

Operating margin increased to 75.9% for the third quarter of 2015 from 56.1% for the corresponding period in 2014. The increase was primarily due to the increase of revenues in the third quarter of 2015, compared to the corresponding period in 2014.

  • Internet Finance Business

Operating loss for the third quarter of 2015 was US$6.3 million compared with US$3.8 million for the corresponding period of the prior year.

Income Tax Expenses

Income tax expenses for the third quarter of 2015 were US$6.2 million, a 4.9% increase from the corresponding period in 2014. The increase was primarily due to higher taxable income.

Net Income

  • Net Income
    • Net income attributable to Noah shareholders for the third quarter of 2015 was US$23.9 million, a 33.7% increase from the corresponding period in 2014.
    • Net margin for the third quarter of 2015 was 29.2%, as compared to 29.8% for the corresponding period in 2014.
    • Net income per basic and diluted ADS for the third quarter of 2015 was US$0.43 and US$0.41, respectively, as compared to US$0.32 and US$0.32, respectively, for the corresponding period in 2014.
  • Non-GAAP Net Income Attributable to Noah Shareholders
    • Non-GAAP net income attributable to Noah shareholders for the third quarter of 2015 was US$26.2 million, a 34.8% increase from the corresponding period in 2014.
    • Non-GAAP net margin for the third quarter of 2015 was 31.8%, as compared to 31.0% for the corresponding period in 2014.
    • Non-GAAP net income per diluted ADS for the third quarter of 2015 was US$0.44, as compared to US$0.34 for the corresponding period in 2014.

Balance Sheet and Cash Flow

As of September 30, 2015, the Company had US$281.4 million in cash and cash equivalents, compared to US$258.5 million as of September 30, 2014 and US$251.9 million as of June 30, 2015.

Cash inflow from the Company's operating activities during the third quarter of 2015 was US$64.2 million, an increase from US$16.9 million in the second quarter of 2015, mainly due to the impact from the increase in accrual for compensation and benefits, and income tax payables.

Cash outflow from the Company's investing activities during the third quarter of 2015 was US$28.8 million, a decrease from US$41.0 million in the second quarter of 2015, primarily due to a decrease in investments in short-term investments.

Cash outflow from the Company's financing activities for the third quarter of 2015 was US$1.6 million, due to share repurchases of $7.0 million, which was partially offset by cash inflow from a minority shareholder investment of $5.3 million.

On July 8, 2015, the Company's board of directors authorized a share repurchase program of up to US$50 million worth of its issued and outstanding ADSs over the course of one year. As of September 30, 2015, the Company has repurchased 356,515 ADSs for approximately US$7.0 million under this program, inclusive of transaction charges.

2015 FORECAST

The Company reiterates its estimate that non-GAAP net income attributable to Noah shareholders for the full year 2015 is expected to be in the range of US$90.0 million to US$95.0 million, an increase of 15.9% to 22.3% compared to the full year 2014. This estimate reflects management's current business outlook and is subject to change.

CONFERENCE CALLS

Senior management will host two conference calls to discuss the Company's third quarter unaudited financial results and recent business activities, one in English and one in Mandarin Chinese.

The conference calls may be accessed with the following details:

English language conference call

Date/Time

 

Monday, November 16, 2015 at 8:00 p.m., U.S. Eastern Time

Tuesday, November 17, 2015 at 9:00 a.m., Hong Kong Time

Dial in details

- United States Toll Free

+1-888-346-8982

- Mainland China Toll Free

4001-201203

- Hong Kong Toll Free

800-905-945

- International

+1-412-902-4272

Conference Title

Noah Holdings Limited Third Quarter 2015 Earnings Call

Participant Password

Noah Holdings

A telephone replay will be available starting 1 hour after the end of the conference call until November 23, 2015 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10075604.

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

Chinese language conference call

Date/Time

 

Monday, November 16, 2015 at 9:30 p.m., U.S. Eastern Time

Tuesday, November 17, 2015 at 10:30 a.m., Hong Kong Time

Dial in details

- Mainland China 

400-681-0220

- Hong Kong Toll Free

800-968-112


- International

+86-23-86829200

Conference Title

Noah Holdings Limited Third Quarter 2015 Earnings Call (Chinese Language)

Participant Password

34319372#

A telephone replay will be available starting 1 hour after the end of the conference call until November 23, 2015 at 400 681 0221 (Mainland China) or +86 23 8682 9250 (International). The conference reference number is 223450, and the replay password is 50762573.

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

DISCUSSION OF NON-GAAP FINANCIAL MEASURES:

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures that exclude the effects of all forms of share-based compensation. The reconciliation of these non-GAAP financial measures to the nearest GAAP measures is set forth in the table captioned "Reconciliation of GAAP to Non-GAAP Results" below.

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

When evaluating the Company's operating performance in the periods presented, management reviewed non-GAAP net income results reflecting adjustments to exclude the impacts of share-based compensation to supplement U.S. GAAP financial data. As such, the Company believes that the presentation of the non-GAAP net income, non-GAAP income per diluted ADS and non-GAAP net margin provides important supplemental information to investors regarding financial and business trends relating to the Company's financial condition and results of operations in a manner consistent with that used by management. Pursuant to U.S. GAAP, the Company recognized significant amounts of expenses for the restricted shares and share options in the periods presented. The Company utilized the non-GAAP financial results to make financial results comparable period to period and to better understand its historical business operations.

ABOUT NOAH HOLDINGS LIMITED

Founded in 2005, Noah Holdings Limited (NYSE: NOAH) is a leading wealth management services provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. In the third quarter of 2015, Noah distributed over US$4.1 billion of wealth management products. As of September 30, 2015, Noah had assets under management of US$12.1 billion.

Noah distributes a wide array of wealth management products, including fixed income products, private equity fund products, mutual fund products and insurance products. Noah also develops and manages financial products denominated in both Renminbi and U.S. dollar, covering real estate funds and funds of funds, including private equity funds, real estate funds, hedge funds and fixed income funds through Gopher Asset Management. In addition, in the third quarter of 2014, the Company launched a proprietary internet finance platform to provide financial products and services to white-collar professionals and enterprise clients in China. Noah delivers customized financial solutions to clients through a network of 1,038 relationship managers across 130 branches and sub-branches in 65 cities in China, and serves the international investment needs of its clients through a wholly owned subsidiary in Hong Kong. The Company's wealth management business had 88,663 registered clients as of September 30, 2015.

Noah has won numerous awards and recognition, including top 5 in Fortune's list of Fastest-Growing Companies in 2015, Forbes' Best Potential Business in China award in 2015, STCN's Best Third Party Wealth Management Company award in 2014, Hurun Report's Popular Independent Wealth Management Institution award in 2013 and 2014, and Deloitte's Technology Fast 500 Asia Pacific award in 2013.

For more information please visit Noah at www.noahwm.com.

Foreign Currency Translation

This release contains translations of certain Renminbi ("RMB") amounts into U.S. dollar ("US$"). Assets and liabilities are translated at the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on September 30, 2015, which was US$1.00 to RMB6.3556. Equity accounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average of the exchange rates set forth in the H.10 statistical release of the Federal Reserve Board for the three months ended September 30, 2015, which was US$1.00 to RMB6.3015. Translation adjustments are reported as cumulative translation adjustments and are a separate component of other comprehensive income. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized, or settled into US$ at that rate or any other rate.

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 2015 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 actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industry; its ability to attract and retain quality 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 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 applicable law.

Contacts:
Noah Holdings Limited
Luyao Ye
Noah Holdings Limited
Tel: +86-21-3860-2308
ir@noahwm.com

1 Noah's Non-GAAP financial measures are its corresponding GAAP financial measures as adjusted by excluding the effects of all forms of share-based compensation.

2 "Active clients" refers to registered clients who purchased wealth management products distributed by Noah during the period specified.

3 "Average transaction value per client" refers to the average value of wealth management products distributed by Noah that were purchased by active clients during the period specified.

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

 

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(In U.S. dollars)

(unaudited)



As of


June 30,

2015


September 30,

2015


$


$

Assets






Current assets:






Cash and cash equivalents


251,883,093



281,398,738

Restricted cash


161,290



157,342

Short-term investments


133,088,055



115,236,123

Accounts receivable, net of allowance for doubtful accounts of nil at June 30, 2015
     and September 30, 2015


34,349,714



22,389,805

Loans receivable


9,958,993



15,956,866

Deferred tax assets


3,524,609



3,440,242

Amounts due from related parties


35,040,481



44,197,207

Other current assets


14,691,017



7,959,828







Total current assets


482,697,252



490,736,151



Long-term investments


25,970,160



31,311,220

Investment in affiliates


43,631,358



48,887,089

Property and equipment, net


17,521,403



21,999,357

Non-current deferred tax assets


2,186,726



2,124,222

Other non-current assets


2,447,791



2,517,619







Total Assets


574,454,690



597,575,658







Liabilities and Equity






Current liabilities:






Accrued payroll and welfare expenses


51,241,141



55,436,845

Income tax payable


10,174,139



13,552,684

Amounts due to related parties


252



490,917

Deferred revenues


16,994,631



14,747,973

Other current liabilities


39,296,687



38,702,701







Total current liabilities


117,706,850



122,931,120



Non-current uncertain tax position liabilities


1,794,215



1,769,245

Convertible notes


80,000,000



80,000,000

Other non-current liabilities


7,921,589



9,872,545







Total Liabilities


207,422,654



214,572,910



Equity


367,032,036



383,002,748







Total Liabilities and Equity


574,454,690



597,575,658







 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(In U.S. dollars, except for ADS data, per ADS data and percentages)

(unaudited)




Three months ended



Change




September 30,



September 30,







2014



2015







$



$





Revenues:













Third-party revenues













One-time commissions



21,135,919




8,957,670




(57.6%)


Recurring service fees



12,883,079




16,674,855




29.4

%

Performance-based income



1,993,269




6,688,687




235.6

%

Other service fees



773,121




3,915,940




406.5

%














Total third-party revenues



36,785,388




36,237,152




(1.5%)


Related party revenues













One-time commissions



5,425,115




21,068,446




288.4

%

Recurring service fees



23,932,765




26,694,415




11.5

%

Performance-based income



248,344




3,394,044




1266.7

%

Other service fees



117,773







(100%)















Total related party revenues



29,723,997




51,156,905




72.1

%

Total revenues



66,509,385




87,394,057




31.4

%

Less: business taxes and related surcharges



(3,616,959)




(4,764,459)




31.7

%














Net revenues



62,892,426




82,629,598




31.4

%














Operating costs and expenses:













Compensation and benefits













Relationship manager compensation



(12,940,397)




(21,479,838)




66.0

%

Performance fee compensation






(1,546,174)





Other compensation



(17,010,925)




(24,052,008)




41.4

%














Total compensation and benefits



(29,951,322)




(47,078,020)




57.2

%

Selling expenses



(5,803,016)




(11,938,852)




105.7

%

General and administrative expenses



(5,913,091)




(6,239,296)




5.5

%

Other operating expenses



(1,524,943)




(3,226,739)




111.6

%

Government subsidies



3,171,460




13,830,131




336.1

%














Total operating costs and expenses



(40,020,912)




(54,652,776)




36.6

%














Income from operations



22,871,514




27,976,822




22.3

%














Other income:













Interest income



1,894,561




1,613,320




(14.8%)


Interest expenses






(706,753)





Investment income



584,770




977,668




67.2

%

Other income



(1,883,864)




(295,361)




(84.3%)















Total other income



595,467




1,588,874




166.8

%














Income before taxes and loss from equity in affiliates



23,466,981




29,565,696




26.0

%

Income tax expense



(5,865,157)




(6,153,088)




4.9

%

Income from equity in affiliates



1,162,466




720,061




(38.1%)















Net income



18,764,290




24,132,669




28.6

%

Less: net income attributable to non-controlling Interests



859,002




191,801




(77.7%)















Net income attributable to Noah shareholders



17,905,288




23,940,868




33.7

%














Income per ADS, basic



0.32




0.43




34.4

%

Income per ADS, diluted



0.32




0.41




28.1

%

Margin analysis:













Operating margin



36.4

%



33.9

%



(6.9%)


Net margin



29.8

%



29.2

%



(2.1%)


Weighted average ADS equivalent: 1













Basic



55,825,466




56,230,450




0.7

%

Diluted



56,489,300




60,193,378




6.6

%

ADS equivalent outstanding at end of period



55,956,509




56,021,823




0.1

%


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

 

 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(In U.S. dollars)

(unaudited)



 

Three months ended


Change


September 30,


September 30,




2014


2015




$


$




Net income

18,764,290


24,132,669


28.6

%

Other comprehensive income, net of tax:







Foreign currency translation adjustments

3,015,916


(8,917,687)


(395.7%)


Fair value fluctuation of available for sale investment (after tax)

357,449


216,988


(39.3%)









Comprehensive income

22,137,655


15,431,970


(30.3%)


Less: Comprehensive income (loss) attributable to non-controlling interests

954,374


(393,383)


(141.2%)









Comprehensive income attributable to Noah shareholders

21,183,281


15,825,353


(25.3%)









 

 

Noah Holdings Limited

Supplemental Information

(unaudited)




As of



Change




September 30, 2014



September 30, 2015





Number of registered clients


 

66,069



 

88,663



 

34.2

%

Number of relationship managers


 

775



 

1,038



 

33.9

%

Number of cities


 

60



 

65



 

8.3

%

 

 



Three months ended



September 30,

2014




September 30,

2015


Change



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

percentages)


Number of active clients


4,091





4,014



(1.9%)


Transaction value:












Fixed income products


9,912





7,553



(23.8%)


Private equity fund products


1,817





10,257



464.5

%

Secondary market equity fund products


5,581





4,076



(27.0%)


Other products, including mutual fund products, and insurance products


1,069





4,173



290.4

%

Total transaction value


18,379





26,058



41.8

%

Average transaction value per client


4.49





6.49



44.5

%


 

 

Noah Holdings Limited

Segment Condensed Income Statements

(In U.S. dollars, except for ADS data, per ADS data and percentages)

(unaudited)




Three months ended September 30, 2014




Wealth

Management

Business



Asset

Management

Business



Internet

Finance



Total





$



$



$



$



Revenues:


















Third-party revenues


















One-time commissions



21,135,919










21,135,919



Recurring service fees



9,710,207




3,172,872







12,883,079



Performance-based income






1,993,269







1,993,269



Other service fees



224,232







548,889




773,121





















Total third-party revenues



31,070,358




5,166,141




548,889




36,785,388





















Related party revenues


















One-time commissions



5,425,115










5,425,115



Recurring service fees



14,554,148




9,378,617







23,932,765



Performance-based income



248,344










248,344



Other service fees



8,934







108,839




117,773





















Total related party revenues



20,236,541




9,378,617




108,839




29,723,997





















Total revenues



51,306,899




14,544,758




657,728




66,509,385



Less: business taxes and related surcharges



(2,870,527)




(710,701)




(35,731)




(3,616,959)





















Net revenues



48,436,372




13,834,057




621,997




62,892,426





















Operating costs and expenses:


















Compensation and benefits


















Relationship manager compensation



(12,902,151)




(38,246)







(12,940,397)



Performance Fee Compensation














Other compensation



(8,454,520)




(5,261,573)




(3,294,832)




(17,010,925)





















Total compensation and benefits



(21,356,671)




(5,299,819)




(3,294,832)




(29,951,322)



Selling expenses



(5,538,385)




(235,222)




(29,409)




(5,803,016)



General and administrative expenses



(2,866,978)




(2,067,324)




(978,789)




(5,913,091)



Other operating expenses



(1,323,262)




(41,524)




(160,157)




(1,524,943)



Government subsidies



1,595,710




1,571,360




4,390




3,171,460





















Total operating costs and expenses



(29,489,586)




(6,072,529)




(4,458,797)




(40,020,912)





















Income from operations



18,946,786




7,761,528




(3,836,800)




22,871,514








































 

 

Noah Holdings Limited

Segment Condensed Income Statements

(In U.S. dollars, except for ADS data, per ADS data and percentages)

(unaudited)




Three months ended September 30, 2015




Wealth

Management

Business



Asset

Management

Business



Internet

Finance



Total





$



$



$



$



Revenues:


















Third-party revenues


















One-time commissions



8,929,502




28,168







8,957,670



Recurring service fees



13,280,899




3,393,956







16,674,855



Performance-based income



5,716,232




972,455







6,688,687



Other service fees



1,344,891







2,571,049




3,915,940





















Total third-party revenues



29,271,524




4,394,579




2,571,049




36,237,152





















Related party revenues


















One-time commissions



20,622,475




445,971







21,068,446



Recurring service fees



13,086,369




13,608,046







26,694,415



Performance-based income






3,394,044







3,394,044



Other service fees
































Total related party revenues



33,708,844




17,448,061







51,156,905





















Total revenues



62,980,368




21,842,640




2,571,049




87,394,057



Less: business taxes and related surcharges



(3,698,754)




(1,011,422)




(54,283)




(4,764,459)





















Net revenues



59,281,614




20,831,218




2,516,766




82,629,598





















Operating costs and expenses:


















Compensation and benefits


















Relationship manager compensation



(20,875,619)




(226,190)




(378,029)




(21,479,838)



Performance fee compensation






(1,546,174)







(1,546,174)



Other compensation



(13,204,223)




(6,082,516)




(4,765,269)




(24,052,008)





















Total compensation and benefits



(34,079,842)




(7,854,880)




(5,143,298)




(47,078,020)



Selling expenses



(9,791,930)




(1,040,445)




(1,106,477)




(11,938,852)



General and administrative expenses



(2,939,408)




(1,365,859)




(1,934,029)




(6,239,296)



Other operating expenses



(1,620,123)




(940,630)




(665,986)




(3,226,739)



Government subsidies



7,643,458




6,186,673







13,830,131





















Total operating costs and expenses



(40,787,845)




(5,015,141)




(8,849,790)




(54,652,776)





















Income from operations



18,493,769




15,816,077




(6,333,024)




27,976,822








































 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In U.S. dollars, except for ADS data and percentages)

(unaudited)




Three months ended




September 30,



September 30,



Change




2014



2015







$



$





Net margin



29.8

%



29.2

%



(2.1%)


Adjusted net margin (non-GAAP)*



32.3

%



32.0

%



(1.0%)






Net income attributable to Noah shareholders



17,905,288




23,940,868




33.7

%

Adjustment for share-based compensation related to:













Share options



519,324




995,361




91.7

%

Restricted shares



1,046,438




1,309,308




25.1

%














Adjusted net income attributable to Noah Shareholders (non-GAAP)*



19,471,050




26,245,537




34.8

%





Net income attributable to Noah shareholders per ADS, diluted



0.32




0.41




28.1

%

Adjusted net income attributable to Noah shareholders per ADS, diluted (non-GAAP)*



0.34




0.44




29.4

%


* The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments.

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2015-300179120.html

SOURCE Noah Holdings Limited

Investor Toolkit