Noah Holdings Limited Announces 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
- 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 sinceSeptember 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 (approximatelyRMB26.1 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 (approximatelyRMB6.5 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 ofJune 30, 2015 , and 91 branches and sub-branches covering 60 cities as ofSeptember 30, 2014 . - The number of relationship managers was 1,038 as of
September 30, 2015 , up from 775 and 953 as ofSeptember 30, 2014 andJune 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 wereUS$12.1 billion (approximatelyRMB77.0 billion ), a 63.8% increase fromSeptember 30, 2014 and a 19.4% increase fromJune 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
- 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 (approximatelyRMB2.3 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 ofSeptember 30, 2014 andJune 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
THIRD QUARTER 2015 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2015 were
- 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 withUS$0.2 million in the corresponding period of 2014.
- Net revenues from one-time commissions for the third quarter of 2015 were
- 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.
- Net revenues from recurring service fees for the third quarter of 2015 were
- 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.
- Net revenues for the third quarter of 2015 were
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
- Wealth Management Business
Operating costs and expenses for the third quarter of 2015 were
- 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 toUS$1.6 million in the corresponding period of 2014. - Asset Management Business
Operating costs and expenses for the third quarter of 2015 were
- 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 withUS$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 toUS$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
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
Income Tax Expenses
Income tax expenses for the third quarter of 2015 were
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 andUS$0.41 , respectively, as compared toUS$0.32 andUS$0.32 , respectively, for the corresponding period in 2014.
- Net income attributable to Noah shareholders for the third quarter of 2015 was
- 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 toUS$0.34 for the corresponding period in 2014.
- Non-GAAP net income attributable to Noah shareholders for the third quarter of 2015 was
Balance Sheet and Cash Flow
As of September 30, 2015, the Company had
Cash inflow from the Company's operating activities during the third quarter of 2015 was
Cash outflow from the Company's investing activities during the third quarter of 2015 was
Cash outflow from the Company's financing activities for the third quarter of 2015 was
On
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
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
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
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
Founded in 2005,
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
Noah has won numerous awards and recognition, including top 5 in Fortune's list of Fastest-Growing Companies in 2015,
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
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
Contacts:
Luyao Ye
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 |
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