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Noah Holdings Limited Announces Unaudited Financial Results For The Fourth Quarter And Full Year 2016

SHANGHAI, Feb. 27, 2017 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth and asset management services provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China, today announced its unaudited financial results for the fourth quarter of 2016 and the full year ended December 31, 2016.

FOURTH QUARTER 2016 FINANCIAL HIGHLIGHTS

  • Net revenues in the fourth quarter of 2016 were RMB646.2 million (US$93.1 million), a 12.6% increase from the corresponding period in 2015.

(RMB millions,

except percentages)

Q4 2015



Q4  2016



YoY Change

Wealth management

431.3



488.2



13.2%

Asset management

127.2



136.4



7.2%

Internet finance

15.2



21.6



41.8%

Total net revenues                    

573.7



646.2



12.6%

  • Income from operations in the fourth quarter of 2016 was RMB83.4 million (US$12.0 million), a 77.2% increase from the corresponding period in 2015.

(RMB millions,

except percentages)

Q4 2015



Q4 2016



YoY Change

Wealth management

50.3



82.4



63.8%

Asset management

52.7



43.5



(17.5%)

Internet finance

(56.0)



(42.5)



(24.1%)

Total income from operations

47.0



83.4



77.2%

  • Net income attributable to Noah shareholders in the fourth quarter of 2016 was RMB107.4 million (US$15.5 million), a 28.5% increase from the corresponding period in 2015.
  • Non-GAAP1 net income attributable to Noah shareholders in the fourth quarter of 2016 was RMB131.4 million (US$18.9 million), a 23.7% increase from the corresponding period in 2015.

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

FULL YEAR 2016 FINANCIAL HIGHLIGHTS

  • Net revenues in the full year 2016 were RMB2,513.6 million (US$362.0 million), an 18.6% increase from the full year 2015.

(RMB millions,

except percentages)

FY 2015



FY  2016



YoY Change

Wealth management

1,597.5



1,931.7



20.9%

Asset management

465.0



531.8



14.4%

Internet finance

57.4



50.1



(12.7%)

Total net revenues                    

2,119.9



2,513.6



18.6%

  • Income from operations in the full year 2016 was RMB667.3 million (US$96.1 million), a 19.4% increase from the full year 2015.

(RMB millions,

except percentages)

FY 2015



FY 2016



YoY Change

Wealth management

466.1



526.0



12.9%

Asset management

247.6



321.3



29.8%

Internet finance

(154.8)



(180.0)



16.2%

Total income from operations

558.8



667.3



19.4%

  • Net income attributable to Noah shareholders in the full year 2016 was RMB643.8 million (US$92.7 million), a 20.2% increase from the full year 2015.
  • Non-GAAP net income attributable to Noah shareholders in the full year 2016 was RMB723.0 million (US$104.1 million), a 19.8% increase from the full year 2015.

FOURTH QUARTER AND FULL YEAR 2016 OPERATIONAL UPDATES

Wealth Management Business

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

  • The total number of registered clients as of December 31, 2016 was 135,396, a 36.7% increase since December 31, 2015.             
  • The total number of active clients2 during the fourth quarter of 2016 was 4,532, a 1.5% decrease from the corresponding period in 2015.  The total number of active clients during the full year 2016 was 12,027, a 4.3% decrease from the full year 2015.
  • The aggregate value of wealth management products distributed by the Company during the fourth quarter of 2016 was RMB24.9 billion (US$3.6 billion), a 24.4% increase from the corresponding period in 2015.

Product type

Three months ended December 31,


2015

2016


(RMB in billions, except percentages)

Fixed income products

11.2

55.7%

14.3

57.5%

Private equity products

6.4

32.0%

8.5

34.2%

Secondary market equity fund products

4.8

23.9%

1.7

6.8%

Other products3

(2.3)

(11.6%)

0.4

1.5%

All products

20.0

100%

24.9

100.0%

  • The aggregate value of wealth management products distributed by the Company during the full year 2016 was RMB101.4 billion (US$15.2 billion), a 2.4% increase from the full year 2015.

Product type

Twelve months ended December 31,


2015

2016


(RMB in billions, except percentages)

Fixed income products

36.6

37.0%

64.5

63.6%

Private equity products

31.9

32.2%

27.5

27.2%

Secondary market equity fund products

28.1

28.3%

7.8

7.7%

Other products

2.4

2.4%

1.5

1.5%

All products

99.0

100%

101.4

100.0%

  • The average transaction value per client4  in the fourth quarter of 2016 was RMB5.5 million (US$0.8 million), a 26.3% increase from the corresponding period in 2015. The average transaction value per client in the full year 2016 was RMB8.4 million (US$1.2 million), a 7.1% increase from the full year 2015.
  • The coverage network included 185 branches and sub-branches covering 71 cities as of December 31, 2016, up from 173 branches and sub-branches covering 71 cities as of September 30, 2016, and 135 branches and sub-branches covering 67 cities as of December 31, 2015.
  • The number of relationship managers was 1,169 as of December 31, 2016, up from 1,095 and 1,098 as of September 30, 2016 and December 31, 2015, respectively.

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

 

[3] "Other products" distributed by the wealth management  business in the fourth quarter of  2015 is a negative figure due to the net redemption of mutual fund products; from 2016 mutual fund products are distributed by the internet finance platform and are no longer included in "other products".

 

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

Asset Management Business

Gopher Asset Management, the Company's subsidiary, is a leading alternative asset manager in China. Gopher Asset Management develops and manages private equity, real estate, secondary market and other investments denominated in both Renminbi and foreign currencies.

  • The total assets under management as of December 31, 2016 were RMB120.9 billion (US$17.4 billion), a 5.3% increase from September 30, 2016 and a 39.6% increase from December 31, 2015.

Product type

As of
September 30, 2016

Asset
Growth

Asset
Expiration/
Redemption

As of
December 31, 2016


(RMB billions, except percentages)

Real estate investments

25.0

21.8%

5.3

7.2

23.2

19.2%

Private equity investments

54.7

47.6%

7.0

-

61.7

51.0%

Secondary market investments

10.3

9.0%

0.1

2.1

8.3

6.9%

Other investments

24.9

21.6%

7.0

4.1

27.8

23.0%

All products

114.8

100.0%

19.4

13.3

120.9

100.0%








 

Product type

As of
December 31, 2015

Asset
Growth

Asset
Expiration/
Redemption

As of
December 31, 2016


(RMB billions, except percentages)

Real estate investments

31.8

36.7%

28.4

37.0

23.2

19.2%

Private equity investments

37.9

43.7%

25.2

1.4

61.7

51.0%

Secondary market investments

10.7

12.3%

2.8

5.2

8.3

6.9%

Other investments

6.3

7.3%

28.7

7.2

27.8

23.0%

All products

86.7

100.0%

85.1

50.9

120.9

100.0%

Internet Finance Business

The Company's internet finance business provides financial products and services through a proprietary internet finance platform targeting mass affluent individuals in China.

  • The aggregate value of financial products distributed by the Company through its internet finance platform in the fourth quarter of 2016 was RMB7.6 billion (US$1,133.6 million), an 81.0% increase from the fourth quarter of 2015. The aggregate value of financial products distributed by the Company through its internet finance platform in the full year 2016 was RMB20.1 billion (US$2,895.6 million), a 68.1% increase from the full year 2015.
  • The total number of clients through its internet finance platform as of December 31, 2016 was 402,815, up from 346,016 and 277,372 as of September 30, 2016 and December 31, 2015, respectively.

Mr. Kenny Lam, Group President of Noah, commented, "We are very pleased with our fourth quarter and full year financial results. We have delivered record profits in 2016 and beat our profit guidance. 2016 was a year in transition – in market, in regulation and in competition.  We have been able to achieve stable operating results amidst the volatile market environment. More importantly, in 2016, we have been able to make substantial progress in building a solid foundation for our medium to long term growth. Our core Wealth Management business has been substantially upgraded in its servicing capabilities and has expanded into new geographies.  Our newer businesses – Asset Management and Internet Finance – are bringing impactful results to the Group, with business models refined and new talent added.  We are entering into 2017 with high confidence and are committed to extending our leadership across our businesses." 

FOURTH QUARTER 2016 FINANCIAL RESULTS

Net Revenues

Net revenues for the fourth quarter of 2016 were RMB646.2 million (US$93.1 million), a 12.6% increase from the corresponding period in 2015, primarily due to increases in one-time commission revenues and recurring service fees more than offsetting the decrease in performance-based income.

  • Wealth Management Business
     
    • Net revenues from one-time commissions for the fourth quarter of 2016 were RMB260.4 million (US$37.5 million), a 27.6% increase from the corresponding period in 2015. The increase was primarily due to an increase in the aggregate value of the wealth management products distributed by the Company.
       
    • Net revenues from recurring service fees for the fourth quarter of 2016 were RMB208.8 million (US$30.1 million), a 17.7% increase from the corresponding period in 2015. The increase was primarily due to the cumulative effect of wealth management products with recurring service fees previously distributed by the Company.
       
    • Net revenues from performance-based income for the fourth quarter of 2016 were RMB3.4 million (US$0.5 million), a 87.4% decrease from the corresponding period in 2015, primarily due to a decrease in performance-based income from secondary market products compared to the corresponding period in 2015.
       
    • Net revenues from other service fees for the fourth quarter of 2016 were RMB15.7 million (US$2.3 million), a 31.6% decrease from the corresponding period in 2015, primarily due to the reclassification of some of the other service fee income starting from the fourth quarter of 2016.
       
  • Asset Management Business
     
    • Net revenues from recurring service fees for the fourth quarter of 2016 were RMB125.7 million (US$18.1 million), a 31.6% increase from the corresponding period in 2015. The increase was primarily due to the increase in assets under management by the Company.
         
    • Net revenues from performance-based income for the fourth quarter of 2016 were RMB10.3 million (US$1.5 million), a 65.8% decrease compared with the corresponding period in 2015, primarily due to a decrease in performance-based income from secondary market products compared to the corresponding period in 2015.
       
  • Internet Finance Business
    • Net revenues for the fourth quarter of 2016 were RMB21.6 million (US$3.1 million), a 41.8% increase from the corresponding period in 2015, primarily due to increased volumes of financial products distributed by the internet wealth management platform compared with the corresponding period in 2015.

Operating costs and expenses

Operating costs and expenses include compensation and benefits, selling expenses, general and administrative expenses, other operating expenses and government subsidies. Operating costs and expenses for the fourth quarter of 2016 were RMB562.8 million (US$81.1 million), a 6.9% increase from the corresponding period in 2015. The increase was primarily due to increased marketing expenses and rental and related expenses associated with the new head office building which was put into use in the first quarter of 2016.

  • Wealth Management Business

    Operating costs and expenses
    for the fourth quarter of 2016 were RMB405.9 million (US$58.5 million), a 6.5% increase from the corresponding period in 2015.
     
    • Compensation and benefits includes compensation for relationship managers and back-office employees. Compensation and benefits for the fourth quarter of 2016 were RMB267.9 million (US$38.6 million), a 4.1% increase from the corresponding period in 2015. In the fourth quarter of 2016, relationship manager compensation increased by 0.7% from the corresponding period in 2015. Other compensation for the fourth quarter of 2016 increased by 8.7% from the corresponding period in 2015, primarily due to an increase in the number of back-office employees.
       
    • Selling expenses for the fourth quarter of 2016 were RMB84.7 million (US$12.2 million), a 13.1% increase from the corresponding period in 2015, primarily due to an increase in  general marketing initiatives. 
       
    • General and administrative expenses for the fourth quarter of 2016 were RMB37.5 million (US$5.4 million), an 21.9% increase from the corresponding period in 2015, primarily due to an increase in rental and related expenses.
       
    • Other operating expenses, which include other costs incurred directly in relation to the Company's revenues, for the fourth quarter of 2016 were RMB24.9 million (US$3.6 million), a decrease of 24.6% from the corresponding period in 2015.
       
    • Government subsidies represent cash subsidies received from local governments for general corporate purposes. The Company received RMB9.2 million (US$1.3 million) in government subsidies in the fourth quarter of 2016, compared to RMB15.0 million in the corresponding period of 2015.
       
  • Asset Management Business
     
    Operating costs and expenses
    for the fourth quarter of 2016 were RMB92.9 million (US$13.4 million), a 24.7% increase from the corresponding period in 2015.
     
    • Compensation and benefits include compensation of investment professionals, fund operation professionals, institutional sales, and other back-office employees. Compensation and benefits for the fourth quarter of 2016 were RMB39.2 million (US$5.6 million), a 10.0% decrease from the corresponding period in 2015. The decrease was primarily due to less performance-based compensation to fund managers as lower performance-based income was recognized in the fourth quarter of 2016 compared with the corresponding period in 2015.
       
    • Selling expenses for the fourth quarter of 2016 were RMB6.0 million (US$0.9 million), compared with RMB3.7 million in the corresponding period of 2015, an increase of 60.4%, primarily due to an increase in expenses related to brand promotion.
       
    • General and administrative expenses for the fourth quarter of 2016 were RMB25.3 million (US$3.6 million), a 17.3% increase from the corresponding period in 2015, primarily due to increased rental and related expenses and depreciation of fixed assets.
       
    • Government subsidies represent cash subsidies received from local governments for general corporate purposes. The Company received RMB4.8 million (US$0.7 million) in government subsidies in the fourth quarter of 2016, compared to RMB1.4 million in the corresponding period in 2015
       
  • Internet Finance Business
     
    Operating costs and expenses
    for the fourth quarter of 2016 were RMB64.1 million (US$9.2 million), a 10.0% decrease from the corresponding period in 2015. Operating costs and expenses for the fourth quarter of 2016 primarily consisted of compensation and benefits of RMB33.4 million (US$4.8 million), selling expenses of RMB7.9 million (US$1.1 million), general and administrative expenses of RMB8.4 million (US$1.2 million) and other operating expenses of RMB14.4 million (US$2.1 million).

Operating Margin

Operating margin for the fourth quarter of 2016 was 12.9%, compared to 8.2% for the corresponding period in 2015.

  • Operating margin for the wealth management business for the fourth quarter of 2016 was 16.9%, compared to 11.7% for the corresponding period in 2015.
  • Operating margin for the asset management business for the fourth quarter of 2016 was 31.9%, compared to 41.4% for the corresponding period in 2015.
  • Operating loss for internet finance business for the fourth quarter of 2016 was RMB42.5 million (US$6.1 million) compared with RMB56.0 million for the corresponding period of the prior year. 

Income Tax Expenses

Income tax expenses for the fourth quarter of 2016 were RMB22.2 million (US$3.2 million), a 210.9% increase from the corresponding period in 2015. The increase was primarily due to the combined impact of a higher effective tax rate and higher taxable income. 

Net Income

  • Net Income
     
    • Net income for the fourth quarter of 2016 was RMB81.7 million (US$11.8 million), a 9.1% increase from the corresponding period in 2015.
       
    • Net margin for the fourth quarter of 2016 was 12.6%, compared to 13.1% for the corresponding period in 2015.
       
    • Net income attributable to Noah shareholders for the fourth quarter of 2016 was RMB107.4 million (US$15.5 million), a 28.5% increase from the corresponding period in 2015.
       
    • Net income per basic and diluted ADS for the fourth quarter of 2016 was RMB1.90(US$0.27) and RMB1.86(US$0.27), respectively, as compared to RMB1.49 and RMB1.46, respectively, for the corresponding period in 2015.
       
  • Non-GAAP Net Income Attributable to Noah Shareholders
       
    • Non-GAAP net income attributable to Noah shareholders for the fourth quarter of 2016 was RMB131.4 million (US$18.9 million), a 23.7% increase from the corresponding period in 2015.
       
    • Non-GAAP net margin attributable to Noah shareholders for the fourth quarter of 2016 was 20.3%, compared to 18.5% for the corresponding period in 2015.
       
    • Non-GAAP net income per diluted ADS for the fourth quarter of 2016 was RMB2.26(US$0.33), as compared to RMB1.84 for the corresponding period in 2015.

FULL YEAR 2016 FINANCIAL RESULTS

Net Revenues

Net revenues for the full year 2016 were RMB2,513.6 million (US$362.0 million), an 18.6% increase from the full year 2015, primarily due to increases in one-time commission revenues and recurring service fees.

  • Wealth Management Business
     
    • Net revenues from one-time commissions for the full year 2016 were RMB1,106.7 million (US$159.4 million), a 39.5% increase from the full year 2015. The increase was primarily due to an increase in the aggregate value of the wealth management products distributed by the Company.
       
    • Net revenues from recurring service fees for the full year 2016 were RMB746.5 million (US$107.5 million), a 19.5% increase from the full year 2015. The increase was primarily due to the cumulative effect of wealth management products with recurring service fees previously distributed by the Company.
       
    • Net revenues from performance-based income for the full year 2016 were RMB11.6 million (US$1.7 million), a 91.3% decrease from the full year 2015, primarily due to a decrease in performance-based income from secondary market products compared with the corresponding period in 2015.
       
    • Net revenues from other service fees for the full year 2016 were RMB66.9 million (US$9.6 million), representing a 48.2% increase from the full year 2015.
       
  • Asset Management Business
     
    • Net revenues from recurring service fees for the full year 2016 were RMB481.2 million (US$69.3 million), a 34.1% increase from the full year 2015. The increase was primarily due to the increase in assets under management by the Company.
       
    • Net revenues from performance-based income for the full year 2016 were RMB46.6 million (US$6.7 million), a 53.9% decrease from the full year 2015, primarily due to a year-over-year decrease in performance-based income received for positive performance of secondary market investments
       
  • Internet Finance Business
     
    • Net revenues for the full year 2016 were RMB50.1 million (US$7.2 million), a 12.7% decrease from the full year 2015, mainly due to the transformation of the business model starting from the second half of 2015.

Operating costs and expenses

Operating costs and expenses include compensation and benefits, selling expenses, general and administrative expenses, other operating expenses and government subsidies. Operating costs and expenses for the full year 2016 were RMB1,846.3 million (US$265.9 million), an 18.3% increase from the full year 2015. The increase in operating costs and expenses was primary driven by increased expenses related to marketing and client engagement events, and increased rental expenses due to office expansion and relocation.

  • Wealth Management Business
     
    Operating costs and expenses for the full year 2016 were RMB1,405.6 million (US$202.5 million), a 24.2% increase from the full year 2015.
     
    • Compensation and benefits includes compensation for relationship managers and back-office employees. Compensation and benefits for the full year 2016 were RMB1,000.3 million (US$144.1 million), a 16.9% increase from the full year 2015. In 2016, relationship manager compensation increased by 9.7% from the full year 2015. Other compensation for the full year 2016 increased by 27.3% from the full year 2015, primarily due to increases in both the number of back-office employees and the amount of share-based compensation.
       
    • Selling expenses for the full year 2016 were RMB281.0 million (US$40.5 million), a 28.1% increase from the full year 2015. The increase was primarily due to an increase in general marketing initiatives and rental expenses.
       
    • General and administrative expenses for the full year 2016 were RMB120.8 million (US$17.4 million), a 53.2% increase from the full year 2015, primarily due to increased rental and related expenses and depreciation.
       
    • Other operating expenses, which include other costs incurred directly in relation to the Company's revenues, for the full year 2016 were RMB82.1 million (US$11.8 million), an increase of 53.7% from the full year 2015. The increase was primarily due to the growth of other businesses within the wealth management segment.
       
    • Government subsidies represent cash subsidies received from local governments for general corporate purposes. The Company received RMB78.4 million (US$11.3 million) in government subsidies in the full year 2016, compared to RMB76.0 million in 2015.
       
  • Asset Management Business
     
    Operating costs and expenses for the full year 2016 were RMB210.5 million (US$30.3 million), a 3.2% decrease from the full year 2015.
     
    • Compensation and benefits include compensation of investment professionals, fund operation professionals, institutional sales and other back-office employees. Compensation and benefits for the full year 2016 were RMB165.2 million (US$23.8 million), a 10.0% decrease from the full year 2015. The decrease was primarily due to less performance-based compensation to fund managers as lower performance-based income was recognized in the full year 2016 compared with the corresponding period in 2015.
       
    • Selling expenses for the full year 2016 were RMB16.2 million (US$2.3 million), a 6.4% decrease from the full year 2015, primarily due to an increase in expenses related to brand promotion.
       
    • General and administrative expenses for the full year 2016 were RMB77.2 million (US$11.1 million), a 44.2% increase from the full year 2015, primarily due to increased consulting fee.
       
    • Government subsidies represent cash subsidies received from local governments for general corporate purposes. The Company received RMB83.9 million (US$12.1 million) in government subsidies in the full year 2016, compared to RMB56.3 million in 2015.
       
  • Internet Finance Business
     
    Operating costs and expenses
    for the full year 2016 were RMB230.1 million (US$33.1 million), an increase of 8.4% from the full year 2015. Operating costs and expenses primarily consisted of compensation and benefits of RMB135.0 million (US$19.4 million), selling expenses of RMB25.5 million (US$3.7 million), general and administrative expenses of RMB36.5 million (US$5.3 million) and other operating expenses of RMB33.1 million (US$4.8 million).

Operating Margin

Operating margin for the full year 2016 was 26.5%, compared to 26.4% for the full year 2015.

  • Operating margin for the wealth management business for the full year 2016 was 27.2%, compared to 29.2% for the full year 2015.
  • Operating margin for the asset management business for the full year 2016 was 60.4%, compared to 53.2% for the full year 2015.
  • Operating loss for internet finance business for the full year 2016 was RMB180.0 million (US$25.9 million), compared to RMB154.8 million for 2015.

Income Tax Expenses

Income tax expenses for the full year 2016 were RMB158.0 million (US$22.8 million), a 21.6% increase from the full year 2015, primarily due to an increase in taxable income.

Net Income

  • Net Income
     
    • Net income for the full year 2016 was RMB597.9 million (US$86.1 million), a 13.6% increase from the full year 2015.
       
    • Net margin for the full year 2016 was 23.8%, compared to 24.8% for 2015.
       
    • Net income attributable to Noah shareholders for the full year 2016 was RMB643.8 million (US$92.7 million), a 20.2% increase from the full year 2015.
       
    • Net income per basic and diluted ADS for the full year 2016 was RMB11.44(US$1.65) and RMB11.04(US$1.59), respectively, as compared to RMB9.54 and RMB9.15, respectively, for 2015.
       
  • Non-GAAP Net Income Attributable to Noah Shareholders
     
    • Non-GAAP net income attributable to Noah shareholders for the full year 2016 was RMB723.0 million (US$104.1 million), a 19.8% increase from the full year 2015.
       
    • Non-GAAP net margin attributable to Noah shareholders for the full year 2016 was 28.8%, compared to 28.5% for 2015.
       
    • Non-GAAP net income per diluted ADS for the full year 2016 was RMB12.36(US$1.78), compared to RMB10.28 for 2015.

Balance Sheet and Cash Flow

As of December 31, 2016, the Company had RMB2,982.5 million (US$429.6 million) in cash and cash equivalents, compared to RMB1,756.9 million as of September 30, 2016 and RMB2,132.9 million as of December 31, 2015.

Cash inflow from the Company's operating activities during the fourth quarter of 2016 was RMB613.3 million (US$88.3 million). Cash inflow from the Company's operating activities for the full year of 2016 was RMB686.2 million (US$98.8 million), compared to RMB675.1 million for the full year of 2015.

Cash outflow from the Company's investing activities during the fourth quarter of 2016 was RMB208.3 million (US$30.0 million). Cash outflow from the Company's investing activities for the full year of 2016 was RMB883.8 million (US$127.3 million), compared to RMB759.5 million for the full year of 2015.

Cash inflow from the Company's financing activities for the fourth quarter of 2016 was RMB788.0 million (US$113.5 million). Cash inflow from the Company's financing activities was RMB994.6 million (US$143.3 million) for the full year of 2016, an increase from RMB462.8 million for the full year of 2015, primarily due to fund raisings for our subsidiaries completed in the fourth quarter of 2016.

On July 8, 2016, the Company's board of directors authorized a share repurchase program of up to US$50 million worth of its issued and outstanding ADSs over the course of one year. As of December 31, 2016, the Company had repurchased 26,082 ADSs for approximately US$0.6 million under this program, inclusive of transaction charges.

2017 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2017 will be in the range of RMB825 million to RMB860 million, an increase of 14.1% to 18.9% compared to the full year 2016. This estimate reflects management's current business outlook and is subject to change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's fourth quarter and full year 2016 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

Conference call details

Date/Time

 

Monday, February 27, 2017 at 8:00 p.m., U.S. Eastern Time

Tuesday, February 28, 2017 at 9:00 a.m., Hong Kong Time

Dial in details


- United States Toll Free

+1-888-346-8982

- Mainland China Toll Free

4001-201203

- Hong Kong Toll Free

800-905-945

- International

+1-412-902-4272

Conference Title

Noah Holdings Limited Fourth Quarter and Full Year 2016 Earnings Call

Participant Password

Noah Holdings

A telephone replay will be available starting one hour after the end of the conference call until March 6, 2017 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10101376.

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

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

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

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

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

ABOUT NOAH HOLDINGS LIMITED

Founded in 2005, Noah Holdings Limited (NYSE: NOAH) is a leading wealth and asset management services provider with a focus on global services for high net worth individuals and enterprises in China. In the full year 2016, Noah distributed over RMB101.4 billion (US$15.2 billion) of wealth management products. As of December 31, 2016, Noah had assets under management of RMB120.9 billion (US$17.4 billion).

Noah distributes a wide array of wealth management products, including fixed income products, private equity fund products, secondary market products and insurance products. Gopher Asset Management, the Company's subsidiary, is a leading alternative asset manager in China. Gopher Asset Management develops and manages private equity, real estate, secondary market and other investments denominated in both Renminbi and foreign currencies. In addition, in 2014, the Company launched a proprietary internet finance platform to provide financial products and services to mass affluent clients in China. Noah delivers customized financial solutions to clients through a network of 1,169 relationship managers across 185 branches and sub-branches in 71 cities in China, and serves the international investment needs of its clients through wholly owned subsidiaries in Hong Kong and the United States. The Company's wealth management business had 135,396 registered clients as of December 31, 2016.

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

FOREIGN CURRENCY TRANSLATION

Effective October 1, 2015, the Company changed its reporting currency from U.S. dollars ("US$") to Chinese Renminbi ("RMB"). The change in reporting currency is to better reflect the Company's performance, as the majority of the Company's operations are conducted in RMB, to align the Company's reporting currency with its underlying operations and to reduce the impact that the increased volatility of the RMB to US$ exchange rate will have on the Company's reported operating results. Prior to October 1, 2015, the Company reported its annual and quarterly consolidated balance sheets and consolidated statements of income and comprehensive income and shareholder's equity and cash flows in US$. In this announcement, the unaudited financial results for the fourth quarter of 2016 and the full year ended December 31, 2016 are stated in RMB. The related financial statements prior to October 1, 2015 have been recast to reflect RMB as the reporting currency for comparison to the financial results for the full year ended December 31, 2016.

This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.943 to US$1.00, the effective noon buying rate for December 31, 2016 as set forth in the H.10 statistical release of the Federal Reserve Board.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the outlook for 2017 and quotations from management in this announcement, as well as Noah's strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industry; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industry in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

Contacts:

Noah Holdings Limited
Steve Zeng
Noah Holdings Limited
Tel: +86-21-8035-9221
ir@noahwm.com  

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --


Noah Holdings Limited

Condensed Consolidated Balance Sheets

(In RMB)

(unaudited)








As of






September 30,

2016


December 31,

2016


December 31,

2016






RMB


RMB


USD


Assets









Current assets:









Cash and cash equivalents


1,756,854,969


2,982,509,565


429,570,728




Restricted cash


1,000,000


1,000,000


144,030




Short-term investments


494,312,947


299,174,435


43,090,081




Accounts receivable, net of allowance for
    doubtful accounts of nil at September 30,
    2016 and December 31, 2016


225,246,430


204,131,815


29,401,097




Loans receivable, net


119,965,144


113,919,956


16,407,887




Amounts due from related parties


504,291,995


438,839,542


63,206,041




Other current assets


669,257,766


692,954,883


99,806,263




Total current assets


3,770,929,251


4,732,530,196


681,626,126













Long-term investments


322,657,930


346,920,327


49,966,920



Investment in affiliates


458,513,861


539,176,511


77,657,570



Property and equipment, net


219,148,582


243,489,512


35,069,784



Non-current deferred tax assets


43,574,044


55,726,799


8,026,329



Other non-current assets


36,645,231


38,646,355


5,566,233


Total Assets


4,851,468,899


5,956,489,700


857,912,963












Liabilities and Equity









Current liabilities:










Accrued payroll and welfare expenses


422,789,431


555,228,116


79,969,482




Income tax payable


29,871,285


23,161,986


3,336,020




Amounts due to related parties


1,060


12,273,000


1,767,680




Deferred revenues


82,739,667


93,252,362


13,431,134




Deferred tax liabilities


1,699,213


-


-




Other current liabilities


544,277,187


891,796,304


128,445,384




Total current liabilities


1,081,377,843


1,575,711,768


226,949,700













Convertible notes


533,480,000


555,440,000


80,000,000



Non-current Deferred tax liabilities


-


4,456,335


641,846



Other non-current liabilities


110,310,153


98,945,858


14,251,168



Total Liabilities


1,725,167,996


2,234,553,961


321,842,714













Mezzanine Equity - Redeemable
non-controlling Interest of Subsidiary


-


330,664,322


47,625,568



Equity


3,126,300,903


3,391,271,417


488,444,681


Total Liabilities and Equity


4,851,468,899


5,956,489,700


857,912,963












Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)



Three months ended


December 31,


December 31,


December 31,


Change


2015


2016


2016



Revenues:

RMB


RMB


USD



Third-party revenues








   One-time commissions5

127,057,777


164,146,291


23,641,983


29.2%

   Recurring service fees

118,933,264


126,922,910


18,280,701


6.7%

 Performance-based income

29,759,827


6,013,181


866,078


(79.8%)

   Other service fees

39,394,494


37,178,460


5,354,812


(5.6%)

Total third-party revenues

315,145,362


334,260,842


48,143,574


6.1%

Related party revenues








   One-time commissions5

88,915,817


98,615,887


14,203,642


10.9%

   Recurring service fees

168,054,455


209,605,221


30,189,431


24.7%

   Performance-based income

30,194,600


7,719,089


1,111,780


(74.4%)

   Other service fees

158,108


391,621


56,405


147.7%

Total related party revenues

287,322,980


316,331,818


45,561,258


10.1%

Total revenues

602,468,342


650,592,660


93,704,832


8.0%

   Less: business taxes and related surcharges

 

(28,745,806)


 

(4,361,781)


 

(628,227)


 

(84.8%)

Net revenues

573,722,536


646,230,879


93,076,605


12.6%

Operating costs and expenses:








  Compensation and benefits








    Relationship manager compensation

(147,065,089)


(150,033,244)


(21,609,282)


2.0%

    Performance fee compensation

(2,477,428)


-


-


(100.0%)

    Other Compensations

(191,731,525)


(190,475,463)


(27,434,173)


(0.7%)

Total compensation and benefits

(341,274,042)


(340,508,707)


(49,043,455)


(0.2%)

   Selling expenses

(90,525,777)


(98,672,303)


(14,211,768)


9.0%

   General and administrative expenses

(64,781,699)


(71,144,431)


(10,246,929)


9.8%

   Other operating expenses

(46,919,354)


(66,591,568)


(9,591,181)


41.9%

   Government subsidies

16,822,156


14,067,709


2,026,172


(16.4%)

Total operating costs and expenses

(526,678,716)


(562,849,300)


(81,067,161)


6.9%

Income from operations

47,043,820


83,381,579


12,009,444


77.2%

Other income:








   Interest income

11,754,938


7,930,682


1,142,256


(32.5%)

   Interest expenses

(4,508,093)


(4,871,269)


(701,609)


8.1%

   Investment income

24,680,396


18,892,961


2,721,153


(23.4%)

   Other income (expense)

1,345,430


(3,605,958)


(519,366)


(368.0%)

Total other income

33,272,671


18,346,416


2,642,434


(44.9%)

Income before taxes and loss from equity in affiliates

80,316,491


101,727,995


14,651,878


 

26.7%

Income tax expense

(7,126,689)


(22,157,108)


(3,191,287)


210.9%

Income from equity in affiliates

1,688,567


2,144,635


308,892


27.0%

Net income

74,878,369


81,715,522


11,769,483


9.1%

Less: loss attributable to non-controlling Interests

 

(8,658,997)


 

(20,311,844)


 

(2,925,514)


 

134.6%

Loss attributable to redeemable
non-controlling interest of Subsidiary

 

-


 

(5,335,678)


 

(768,498)


 

-

Net income attributable to Noah Shareholders

 

83,537,366


 

107,363,044


 

15,463,495


 

28.5%









Income per ADS, basic

1.49


1.90


0.27


27.5%

Income per ADS, diluted

1.46


1.86


0.27


27.4%

Margin analysis:








Operating margin

8.2%


12.9%


12.9%



Net margin

13.1%


12.6%


12.6%



Weighted average ADS equivalent: [1]








Basic

56,078,056


56,482,118


56,482,118



Diluted

60,204,346


60,329,884


60,329,884



ADS equivalent outstanding at end of period

56,143,075


56,462,655


56,462,655




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


[5] To realign the Company's services provided under different business segments, starting from the first quarter of 2016, the Company reclassifies some of the revenues under "other service fees" to "one-time commissions". Presentation of prior periods has been reclassified to reflect the same criteria.

 

Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)



Twelve months ended


December 31,


December 31,


December 31,


Change


2015


2016


2016



Revenues:

RMB


RMB


USD



Third-party revenues








   One-time commissions[6]

413,178,932


810,645,359


116,757,217


96.2%

   Recurring service fees

401,292,465


475,000,278


68,414,270


18.4%

 Performance-based income

193,939,030


19,740,213


2,843,182


(89.8%)

   Other service fees

106,299,714


117,793,855


16,965,844


10.8%

Total third-party revenues

1,114,710,141


1,423,179,705


204,980,513


27.7%

Related party revenues








   One-time commissions6

428,923,066


321,441,733


46,297,239


(25.1%)

   Recurring service fees

634,913,375


775,726,326


111,727,830


22.2%

   Performance-based income

53,825,293


39,500,382


5,689,238


(26.6%)

   Other service fees

324,231


1,787,923


257,514


451.4%

Total related party revenues

1,117,985,965


1,138,456,364


163,971,821


1.8%

Total revenues

2,232,696,106


2,561,636,069


368,952,334


14.7%

   Less: business taxes and related
surcharges

(112,768,265)


(48,063,299)


(6,922,555)


(57.4%)

Net revenues

2,119,927,841


2,513,572,770


362,029,779


18.6%

Operating costs and expenses:








  Compensation and benefits








    Relationship manager compensation

(524,629,723)


(563,619,789)


(81,178,135)


7.4%

    Performance fee compensation

(24,786,763)


(8,145,016)


(1,173,126)


(67.1%)

    Other Compensations

(615,075,893)


(728,639,155)


(104,945,867)


18.5%

Total compensation and benefits

(1,164,492,379)


(1,300,403,960)


(187,297,128)


11.7%

   Selling expenses

(263,815,409)


(322,667,518)


(46,473,789)


22.3%

   General and administrative expenses

(170,929,513)


(234,488,066)


(33,773,306)


37.2%

   Other operating expenses

(94,624,304)


(151,087,419)


(21,761,115)


59.7%

   Government subsidies

132,709,712


162,364,268


23,385,319


22.3%

Total operating costs and expenses

(1,561,151,893)


(1,846,282,695)


(265,920,019)


18.3%

Income from operations

558,775,948


667,290,075


96,109,760


19.4%

Other income:








   Interest income

39,698,790


39,537,775


5,694,624


(0.4%)

   Interest expenses

(16,050,359)


(19,288,813)


(2,778,167)


20.2%

   Investment income

51,954,918


48,537,737


6,990,888


(6.6%)

   Other income (expense)

455,030


(2,531,621)


(364,629)


(656.4%)

Total other income

76,058,379


66,255,078


9,542,716


(12.9%)

Income before taxes and loss from equity
in affiliates

634,834,327


733,545,153


105,652,476


 

15.5%

Income tax expense

(129,885,747)


(157,996,588)


(22,756,242)


21.6%

Income from equity in affiliates

21,352,767


22,342,896


3,218,046


4.6%

Net income

526,301,347


597,891,461


86,114,280


13.6%

Less: loss attributable to non-controlling
Interests

(9,522,737)


(40,601,294)


(5,847,803)


326.4%

Loss attributable to redeemable
non-controlling interest of Subsidiary

-


(5,335,678)


(768,498)


-

Net income attributable to
Noah Shareholders

535,824,084


643,828,433


92,730,581


20.2%









Income per ADS, basic

9.54


11.44


1.65


19.9%

Income per ADS, diluted

9.15


11.04


1.59


20.7%

Margin analysis:








Operating margin

26.4%


26.5%


26.5%



Net margin

24.8%


23.8%


23.8%



Weighted average ADS equivalent: [1]








Basic

56,171,042


56,300,278


56,300,278



Diluted

60,291,952


60,073,525


60,073,525



ADS equivalent outstanding at end of period

56,143,075


56,462,655


56,462,655




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



Noah Holdings Limited

 Condensed Comprehensive Income Statements

(In RMB)

(unaudited)


Three months ended


December 31,


December 31,


December 31,


Change


2015


2016


2016




RMB


RMB


USD



Net income

74,878,369


81,715,522


11,769,483


9.1%

Other comprehensive income, net of tax:








     Foreign currency translation adjustments

2,707,480


 

14,343,397


 

2,065,879


429.8%

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

 

1,228,939


 

(12,478,953)


 

(1,797,343)


(1115.4%)

Comprehensive income

 

78,814,788


83,579,966


12,038,019


6.0%

Less: Comprehensive loss attributable to
non-controlling interests

(8,669,054)


(20,314,230)


(2,925,858)


134.3%

Loss attributable to redeemable
non-controlling interest of Subsidiary

-


(5,335,678)


(768,498)


-

Comprehensive income attributable to
Noah Shareholders

87,483,842


109,229,874


15,732,374


24.9%









 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(In RMB)

(unaudited)


Twelve months ended


December 31,


December 31,


December 31,


Change


2015


2016


2016




RMB


RMB


USD



Net income

526,301,347


597,891,461


86,114,282


13.6%

Other comprehensive income, net of tax:








     Foreign currency translation adjustments

4,884,837


19,242,060


2,771,433


293.9%

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

718,414


(3,000,729)


(432,195)


(517.7%)

Comprehensive income

531,904,598


614,132,792


88,453,520


15.5%

Less: Comprehensive loss attributable to
non-controlling interests

(9,520,184)


(40,683,799)


(5,859,686)


327.3%

Loss attributable to redeemable
non-controlling interest of Subsidiary

-


(5,335,678)


(768,498)


-

Comprehensive income attributable to
Noah Shareholders

541,424,782


660,152,269


95,081,704


21.9%









 

Noah Holdings Limited

Supplemental Information

(unaudited)


 As of 


 Change


December 31, 2015


December 31, 2016








 Number of registered clients

99,019


135,396


36.7%

 Number of relationship managers

1,098


1,169


6.5%

 Number of cities under coverage

67


71


6.0%














Three months ended


 Change


December 31, 2015


December 31, 2016



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

 Number of active clients

4,603


4,532


(1.5%)

 Transaction value:






        Fixed income products

11,164


14,337


28.4%

        Private equity fund products

6,407


8,519


33.0%

        Secondary market equity fund products

4,785


1,700


(64.5%)

        Other products

(2,317)


364


(115.7%)

 Total transaction value

20,039


24,920


24.4%

 Average transaction value per client

4.35


5.50


26.3%




Twelve months ended


 Change


December 31, 2015


December 31, 2016



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

 Number of active clients

12,573


12,027


(4.3%)

 Transaction value:






        Fixed income products

36,621


64,494


76.1%

        Private equity fund products

31,917


27,545


(13.7%)

        Secondary market equity fund products

28,054


7,846


(72.0%)

        Other products

2,402


1,499


(37.6%)

 Total transaction value

98,994


101,385


2.4%

 Average transaction value per client

7.87


8.43


7.1%

 

Noah Holdings Limited

Segment Condensed Income Statements

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

 (unaudited)

Three months ended December 31, 2016



Wealth Management

Business


Asset Management

Business


Internet Finance


Total


RMB


RMB


RMB


RMB









Revenues:








Third-party revenues








One-time commissions

163,809,499


336,792


-


164,146,291

Recurring service fees

109,457,782


17,465,128


-


126,922,910

Performance-based income

2,771,496


3,241,685


-


6,013,181

Other service fees

15,773,528


-


21,404,932


37,178,460

Total third-party revenues

291,812,305


21,043,605


21,404,932


334,260,842

Related party revenues








One-time commissions

98,591,458


24,429


-


98,615,887

Recurring service fees

100,947,935


108,657,286


-


209,605,221

Performance-based income

649,764


7,069,325


-


7,719,089

Other service fees

-


-


391,621


391,621

Total related party revenues

200,189,157


115,751,040


391,621


316,331,818

Total revenues

492,001,462


136,794,645


21,796,553


650,592,660

Less: business taxes and related 
   surcharges

(3,766,556)


(420,761)


(174,464)


(4,361,781)

Net revenues

488,234,906


136,373,884


21,622,089


646,230,879

Operating costs and expenses:








Compensation and benefits








Relationship manager compensation

(147,168,654)


(325,122)


(2,539,468)


(150,033,244)

Other compensation

(120,756,029)


(38,872,854)


(30,846,580)


(190,475,463)

Total compensation and benefits

(267,924,683)


(39,197,976)


(33,386,048)


(340,508,707)

Selling expenses

(84,740,172)


(6,011,625)


(7,920,506)


(98,672,303)

General and administrative expenses

(37,491,894)


(25,297,021)


(8,355,516)


(71,144,431)

Other operating expenses

(24,917,734)


(27,243,590)


(14,430,244)


(66,591,568)

Government subsidies

9,222,251


4,845,458


-


14,067,709

Total operating costs and expenses

(405,852,232)


(92,904,754)


(64,092,314)


(562,849,300)

Income from operations

82,382,674


43,469,130


(42,470,225)


83,381,579

 

Noah Holdings Limited

Segment Condensed Income Statements

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

 (unaudited)

         Three months ended December 31, 2015


Wealth Management

 Business


Asset Management

Business


Internet Finance


Total


RMB


RMB


RMB


RMB









Revenues:








Third-party revenues








One-time commissions

126,830,277


227,500


-


127,057,777

Recurring service fees

103,525,654


15,407,610


-


118,933,264

Performance-based income

28,313,104


1,446,723


-


29,759,827

Other service fees

23,887,822


-


15,506,672


39,394,494

Total third-party revenues

282,556,857


17,081,833


15,506,672


315,145,362

Related party revenues








One-time commissions

87,393,071


1,522,746


-


88,915,817

Recurring service fees

82,789,078


85,265,377


-


168,054,455

Performance-based income

-


30,194,600


-


30,194,600

Other service fees

158,108


-


-


158,108

Total related party revenues

170,340,257


116,982,723


-


287,322,980

Total revenues

452,897,114


134,064,556


15,506,672


602,468,342

Less: business taxes and related
    surcharges

(21,623,140)


(6,860,507)


(262,159)


(28,745,806)

Net revenues

431,273,974


127,204,049


15,244,513


573,722,536

Operating costs and expenses:








Compensation and benefits








Relationship manager compensation

(146,135,190)


(1,242,154)


312,255


(147,065,089)

Performance Fee Compensation

-


(2,477,428)


-


(2,477,428)

Other compensation

(111,121,819)


(39,855,764)


(40,753,942)


(191,731,525)

Total compensation and benefits

(257,257,009)


(43,575,346)


(40,441,687)


 

(341,274,042)

Selling expenses

(74,895,758)


(3,747,660)


(11,882,359)


(90,525,777)

General and administrative expenses

(30,752,315)


(21,561,697)


(12,467,687)


(64,781,699)

Other operating expenses

(33,052,868)


(7,017,494)


(6,848,992)


(46,919,354)

Government subsidies

14,980,060


1,397,228


444,868


16,822,156

Total operating costs and expenses

(380,977,890)


(74,504,969)


 

(71,195,857)


(526,678,716)

Income from operations

50,296,084


52,699,080


(55,951,344)


47,043,820

 

Noah Holdings Limited

Segment Condensed Income Statements

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

 (unaudited)

         Twelve months ended December 31, 2016


Wealth Management

 Business


Asset Management

Business


Internet Finance


Total


RMB


RMB


RMB


RMB









Revenues:








Third-party revenues








One-time commissions

809,461,138


1,184,221


-


810,645,359

Recurring service fees

413,085,113


61,915,165


-


475,000,278

Performance-based income

11,143,779


8,596,434


-


19,740,213

Other service fees

67,435,787


-


50,358,068


117,793,855

Total third-party revenues

1,301,125,817


71,695,820


50,358,068


1,423,179,705

Related party revenues








One-time commissions

318,554,406


2,887,327


-


321,441,733

Recurring service fees

347,818,641


427,907,685


-


775,726,326

Performance-based income

706,390


38,793,992


-


39,500,382

Other service fees

722,009


-


1,065,914


1,787,923

Total related party revenues

667,801,446


469,589,004


1,065,914


1,138,456,364

Total revenues

1,968,927,263


541,284,824


51,423,982


2,561,636,069

Less: business taxes and related
    surcharges

(37,274,715)


(9,474,316)


(1,314,268)


(48,063,299)

Net revenues

1,931,652,548


531,810,508


50,109,714


2,513,572,770

Operating costs and expenses:








Compensation and benefits








Relationship manager compensation

(556,553,499)


(1,452,611)


(5,613,679)


(563,619,789)

Performance Fee Compensation

-


(8,145,016)


-


(8,145,016)

Other compensation

(443,704,242)


(155,567,371)


(129,367,542)


(728,639,155)

Total compensation and benefits

(1,000,257,741)


(165,164,998)


(134,981,221)


(1,300,403,960)

Selling expenses

(280,993,783)


(16,171,723)


(25,502,012)


(322,667,518)

General and administrative expenses

(120,763,794)


(77,200,486)


(36,523,786)


(234,488,066)

Other operating expenses

(82,058,856)


(35,922,504)


(33,106,059)


(151,087,419)

Government subsidies

78,444,752


83,919,516


-


162,364,268

Total operating costs and expenses

(1,405,629,422)


(210,540,195)


(230,113,078)


(1,846,282,695)

Income from operations

526,023,126


321,270,313


(180,003,364)


667,290,075

 

 

 

Noah Holdings Limited

Segment Condensed Income Statements

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

 (unaudited)

         Twelve months ended December 31, 2015


Wealth Management

 Business


Asset Management

Business


Internet Finance


Total


RMB


RMB


RMB


RMB









Revenues:








Third-party revenues








One-time commissions

412,658,931


520,001


-


413,178,932

Recurring service fees

334,983,117


66,309,348


-


401,292,465

Performance-based income

141,773,493


52,165,537


-


193,939,030

Other service fees

47,456,998


512,475


58,330,241


106,299,714

Total third-party revenues

936,872,539


119,507,361


58,330,241


1,114,710,141

Related party revenues








One-time commissions

424,590,048


4,333,018


-


428,923,066

Recurring service fees

324,182,643


310,730,732


-


634,913,375

Performance-based income

-


53,825,293


-


53,825,293

Other service fees

158,108


-


166,123


324,231

Total related party revenues

748,930,799


368,889,043


166,123


1,117,985,965

Total revenues

1,685,803,338


488,396,404


58,496,364


2,232,696,106

Less: business taxes and related
    surcharges

(88,285,200)


(23,408,513)


(1,074,552)


(112,768,265)

Net revenues

1,597,518,138


464,987,891


57,421,812


2,119,927,841

Operating costs and expenses:








Compensation and benefits








Relationship manager compensation

(507,400,087)


(8,044,612)


(9,185,024)


(524,629,723)

Performance Fee Compensation



(24,786,763)


-


(24,786,763)

Other compensation

(348,504,061)


(150,661,189)


(115,910,643)


(615,075,893)

Total compensation and benefits

(855,904,148)


(183,492,564)


(125,095,667)


 

(1,164,492,379)

Selling expenses

(219,286,283)


(17,278,343)


(27,250,783)


(263,815,409)

General and administrative expenses

(78,850,681)


(53,554,038)


(38,524,794)


(170,929,513)

Other operating expenses

(53,374,913)


(19,411,331)


(21,838,060)


(94,624,304)

Government subsidies

75,960,496


56,304,348


444,868


132,709,712

Total operating costs and expenses

(1,131,455,529)


(217,431,928)


 

(212,264,436)


 

(1,561,151,893)

Income from operations

466,062,609


247,555,963


(154,842,624)


558,775,948

 

Noah Holdings Limited

 Reconciliation of GAAP to Non-GAAP Results

 (In RMB, except for ADS data and percentages)

 (unaudited)



Three months ended


 December 31,


December 31,


 Change


2015


2016



RMB


RMB









Net margin

13.1%


12.6%



Adjusted net margin attributable to
Noah shareholders (non-GAAP)*

18.5%


20.3%









Net income attributable to
Noah Shareholders

83,537,366


107,363,044


28.5%

Adjustment for share-based
compensation related to:






           Share options

13,888,693


11,853,518


(14.7%)

           Restricted shares

8,805,247


12,177,664


38.3%

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

106,231,306


131,394,226


23.7%







Net income attributable to
Noah Shareholders per ADS,
diluted

1.46


1.86


27.4%

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

1.84


2.26


22.8%







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

 

Noah Holdings Limited

 Reconciliation of GAAP to Non-GAAP Results

 (In RMB, except for ADS data and percentages)

 (unaudited)



Twelve months ended


 December 31,


December 31,


 Change


2015


2016



RMB


RMB









Net margin

24.8%


23.8%



Adjusted net margin attributable to
Noah shareholders (non-GAAP)*

28.5%


28.8%









Net income attributable to
Noah Shareholders

535,824,084


643,828,433


20.2%

Adjustment for share-based
compensation related to:






           Share options

33,912,040


39,008,208


15.0%

           Restricted shares

33,760,448


40,163,109


19.0%

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

603,496,572


722,999,750


19.8%







Net income attributable to
Noah Shareholders per ADS,
diluted

9.15


11.04


20.7%

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

10.28


12.36


20.2%







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


To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-fourth-quarter-and-full-year-2016-300413836.html

SOURCE Noah Holdings Limited

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