Noah Holdings Limited Announces Unaudited Financial Results for the Second Quarter of 2017
SECOND QUARTER 2017 FINANCIAL HIGHLIGHTS
- Net revenues for the second quarter of 2017 were
RMB707.3 million (US$104.3 million ), an 8.5% increase from the corresponding period in 2016.
(RMB millions, except percentages) |
Q2 2016 |
Q2 2017 |
YoY Change |
||||
Wealth management |
505.2 |
550.6 |
9.0% |
||||
Asset management |
135.2 |
130.3 |
(3.6%) |
||||
Internet financial services |
11.3 |
26.4 |
133.0% |
||||
Total net revenues |
651.7 |
707.3 |
8.5% |
- Income from operations for the second quarter of 2017 was
RMB224.3 million (US$33.1 million ), a 15.5% increase from the corresponding period in 2016.
(RMB millions, except percentages) |
Q2 2016 |
Q2 2017 |
YoY Change |
||||
Wealth management |
167.4 |
185.2 |
10.7% |
||||
Asset management |
68.8 |
69.8 |
1.4% |
||||
Internet financial services |
(42.1) |
(30.8) |
(26.9%) |
||||
Total income from operations |
194.1 |
224.3 |
15.5% |
- Net income attributable to Noah shareholders for the second quarter of 2017 was
RMB207.0 million (US$30.5 million ), a 13.6% increase from the corresponding period in 2016. - Non-GAAP[1] net income attributable to Noah shareholders for the second quarter of 2017 was
RMB226.5 million (US$33.4 million ), a 14.4% increase from the corresponding period in 2016.
SECOND QUARTER 2017 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business offers wealth management products and provides comprehensive financial services to high net worth individuals, enterprise and institutional clients. Through its wealth management business, Noah primarily distributes onshore and offshore fixed income products, private equity products, secondary market products and insurance products.
- Total number of registered clients as of
June 30, 2017 was 164,728, a 43.4% increase fromJune 30, 2016 . - Total number of active clients[2] during the second quarter of 2017 was 4,484, a 9.0% decrease from
June 30, 2016 . - Aggregate value of wealth management products distributed during the second quarter of 2017 was
RMB33.0 billion (US$4.9 billion ), an 18.8% increase from the second quarter of 2016.
Product type |
Three months ended June 30, |
|||
2016 |
2017 |
|||
(RMB in billions, except percentages) |
||||
Fixed income |
17.0 |
61.2% |
23.5 |
71.3% |
Private equity |
7.6 |
27.3% |
8.3 |
25.0% |
Secondary market equity |
2.8 |
10.1% |
1.1 |
3.4% |
Other products |
0.4 |
1.4% |
0.1 |
0.3% |
All products |
27.7 |
100.0% |
33.0 |
100.0% |
- Average transaction value per client[3] for the second quarter of 2017 was
RMB7.4 million (US$1.1 million ), a 30.5% increase from the corresponding period in 2016. - Coverage network included 205 branches and sub-branches covering 76 cities as of
June 30, 2017 , up from 199 branches and sub-branches covering 74 cities as ofMarch 31, 2017 , and 175 branches and sub-branches covering 68 cities as ofJune 30, 2016 . - Number of relationship managers was 1,259 as of
June 30, 2017 , relatively flat fromMarch 31, 2017 and a 15.2% increase fromJune 30, 2016 .
[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. |
Asset Management Business
Gopher Asset Management ("Gopher"), a subsidiary of the Company, is a leading alternative asset manager in
- Total assets under management as of
June 30, 2017 wereRMB138.7 billion (US$20.5 billion ), a 7.0% increase fromMarch 31, 2017 and a 37.1% increase fromJune 30, 2016 .
Investment type |
As of March 31, |
Asset |
Asset |
As of June 30, |
|||
(RMB billions, except percentages) |
|||||||
Real estate |
19.8 |
15.3% |
1.6 |
6.0 |
15.4 |
11.1% |
|
Private equity |
66.1 |
51.0% |
6.7 |
0.7 |
72.2 |
52.0% |
|
Secondary market |
6.9 |
5.3% |
0.0 |
0.1 |
6.9 |
4.9% |
|
Credit |
33.2 |
25.6% |
14.5 |
7.0 |
40.7 |
29.4% |
|
Other investments |
3.5 |
2.7% |
- |
- |
3.5 |
2.5% |
|
All Investments |
129.6 |
100.0% |
22.9 |
13.8 |
138.7 |
100.0% |
|
Internet Financial Service Business
The Company's Internet financial service business includes its online wealth management platform as well as micro-lending, payment processing and other online services.
- Aggregate value of financial products distributed by the Company's Internet wealth management platform in the second quarter of 2017 was
RMB6.2 billion (US$0.9 billion ), a 7.3% increase from the corresponding period in 2016. - Total number of clients through the Company's Internet wealth management platform as of
June 30, 2017 was 438,981, up from 425,708 and 324,918 as ofMarch 31, 2017 andJune 30, 2016 , respectively.
Mr.
SECOND QUARTER 2017 FINANCIAL RESULTS
Net Revenues
Net revenues for the second quarter of 2017 were
- Wealth Management Business
- Net revenues from one-time commissions for the second quarter of 2017 were
RMB297.6 million (US$43.9 million ), a 2.0% increase from the corresponding period in 2016. The increase was mainly due to the increase in the aggregate value of wealth management products. - Net revenues from recurring service fees for the second quarter of 2017 were
RMB209.3 million (US$30.9 million ), a 7.5% increase from the corresponding period in 2016. The increase was primarily due to the cumulative effect of wealth management products with recurring service fees previously distributed. - Net revenues from performance-based income for the second quarter of 2017 were
RMB22.0 million (US$3.2 million ), compared withRMB0.1 million in the corresponding period of 2016, due to the realization of performance-based income from secondary market equity products and private equity products distributed in previous periods. - Net revenues from other service fees for the second quarter of 2017 were
RMB21.6 million (US$3.2 million ), a 17.4% increase from the corresponding period in 2016, primarily due to the growth of new business within the wealth management segment. - Asset Management Business
- Net revenues from recurring service fees for the second quarter of 2017 were
RMB128.3 million (US$18.9 million ), a 17.0% increase from the corresponding period in 2016. The increase was primarily due to the increase in assets under management. - Net revenues from performance-based income for the second quarter of 2017 were
RMB1.5 million (US$0.2 million ), compared withRMB23.6 million in the corresponding period of 2016. - Internet Financial Service Business
- Net revenues for the second quarter of 2017 were
RMB26.4 million (US$3.9 million ), a 133.0% increase from the corresponding period in 2016. The increase was primarily due to the growth in overall Internet financial services, including online wealth management, micro-lending, payment processing and other services, compared with the corresponding period of 2016.
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 second quarter of 2017 were
- Wealth Management Business
Operating costs and expenses for the second quarter of 2017 wereRMB365.4 million (US$53.9 million ), an 8.2% increase from the corresponding period in 2016. - Compensation and benefits for the second quarter of 2017 were
RMB250.8 million (US$37.0 million ), a 0.3% decrease from the corresponding period in 2016. - Selling expenses for the second quarter of 2017 were
RMB66.9 million (US$9.9 million ), a 0.7% decrease from the corresponding period in 2016. - General and administrative expenses for the second quarter of 2017 were
RMB29.9 million (US$4.4 million ), a 6.2% decrease from the corresponding period in 2016, primarily due to the reduced loss from fixed asset disposal compared with the same period last year. - Other operating expenses were
RMB27.5 million (US$4.1 million ) for the second quarter of 2017, an increase of 30.1% from the corresponding period in 2016. The increase was primarily due to the growth of new business within the wealth management segment. - Government subsidies represent cash subsidies received from local governments for general corporate purposes. The Company's wealth management business received
RMB9.7 million (US$1.4 million ) in government subsidies in the second quarter of 2017, compared withRMB34.2 million in the corresponding period of 2016. - Asset Management Business
Operating costs and expenses for the second quarter of 2017 wereRMB60.5 million (US$8.9 million ), an 8.9% decrease from the corresponding period in 2016. - Compensation and benefits for the second quarter of 2017 were
RMB44.7 million (US$6.6 million ), a 1.5% increase from the corresponding period of 2016. - Selling expenses for the second quarter of 2017 were
RMB1.4 million (US$0.2 million ), compared withRMB4.4 million in the corresponding period of 2016. - General and administrative expenses for the second quarter of 2017 were
RMB11.2 million (US$1.6 million ), a 39.1% decrease from the corresponding period in 2016. The decrease was mainly due to certain expenses that were not VAT deductible in the second quarter last year. - Government subsidies represent cash subsidies received from local governments for general corporate purposes. The asset management business received
RMB0.1 million in government subsidies in the second quarter of 2017, compared withRMB2.0 million in the corresponding period of 2016. - Internet Financial Service Business
Operating costs and expenses for the second quarter of 2017 wereRMB57.1 million (US$8.4 million ), a 7.0% increase from the corresponding period in 2016. Operating costs and expenses for the second quarter of 2017 primarily consisted of compensation and benefits ofRMB35.5 million (US$5.2 million ), selling expenses ofRMB3.0 million (US$0.4 million ), general and administrative expenses ofRMB8.2 million (US$1.2 million ) and other operating expenses ofRMB10.5 million (US$1.5 million ).
Operating Margin
Operating margin for the second quarter of 2017 was 31.7%, an increase from 29.8% for the corresponding period in 2016. The increase was mainly due to improved operating margin for the asset management business and reduced operating loss of the Internet financial service business.
- Operating margin for the wealth management business for the second quarter of 2017 increased to 33.6% from 33.1% for the corresponding period in 2016.
- Operating margin for the asset management business for the second quarter of 2017 was 53.5%, compared with 50.9% for the corresponding period in 2016.
- Operating loss for the Internet financial service business for the second quarter of 2017 was
RMB30.8 million (US$4.5 million ), down fromRMB42.1 million for the corresponding period in 2016.
Income Tax Expenses
Income tax expenses for the second quarter of 2017 were
Income from Equity in Affiliates
Income from equity in affiliates for the second quarter of 2017 was
Net Income
- Net Income
- Net income for the second quarter of 2017 was
RMB205.9 million (US$30.4 million ), a 16.9% increase from the corresponding period in 2016. - Net margin for the second quarter of 2017 was 29.1%, up from 27.0% for the corresponding period in 2016.
- Net income attributable to Noah shareholders for the second quarter of 2017 was
RMB207.0 million (US$30.5 million ), a 13.6% increase from the corresponding period in 2016. - Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2017 was
RMB3.67 (US$0.54) andRMB3.52 (US$0.52) , respectively, up fromRMB3.24 andRMB3.10 , respectively, for the corresponding period in 2016. - Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders for the second quarter of 2017 was
RMB226.5 million (US$33.4 million ), a 14.4% increase from the corresponding period in 2016. - Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2017 was 32.0%, up from 30.4% for the corresponding period in 2016.
- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2017 was
RMB3.84 (US$0.57) , up fromRMB3.37 for the corresponding period in 2016.
Balance Sheet and Cash Flow
As of
Net cash inflow from the Company's operating activities during the second quarter of 2017 was
Net cash outflow from the Company's investing activities during the second quarter of 2017 was
Net cash inflow from the Company's financing activities was
On
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
CONFERENCE CALL
Senior management will host a combined English and Chinese language conference call to discuss the Company's second quarter 2017 unaudited financial results and recent business activities.
The conference call may be accessed with the following details:
Conference call details |
|
Date/Time:
|
Monday, August 28, 2017 at 8:00 p.m., U.S. Eastern Time Tuesday, August 29, 2017 at 8:00 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 Second Quarter 2017 Earnings Call |
Participant Password: |
Noah Holdings |
A telephone replay will be available starting one 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 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 attributable to Noah shareholders per diluted ADS and non-GAAP net margin attributable to Noah shareholders 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,
Our wealth management business primarily distributes onshore and offshore fixed income products, private equity products, secondary market products and insurance products. Noah delivers customized financial solutions to clients through a network of 1,259 relationship managers across 205 branches and sub-branches in 76 cities in
For more information, please visit Noah at ir.noahwm.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the quarter ended
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
Contacts:
Noah Holdings Limited
Tel: +86-21-8035-9221
ir@noahwm.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Noah Holdings Limited |
||||||||||||||
Condensed Consolidated Balance Sheets |
||||||||||||||
(unaudited) |
||||||||||||||
As of |
||||||||||||||
March 31, 2017 |
June 30, 2017 |
June 30, 2017 |
||||||||||||
RMB'000 |
RMB'000 |
USD'000 |
||||||||||||
Assets |
||||||||||||||
Current assets: |
||||||||||||||
Cash and cash equivalents |
2,609,190 |
2,003,529 |
295,536 |
|||||||||||
Restricted cash |
1,000 |
- |
- |
|||||||||||
Short-term investments |
410,237 |
569,513 |
84,008 |
|||||||||||
Accounts receivable, net of allowance for |
206,698 |
165,765 |
24,452 |
|||||||||||
Loans receivable |
115,878 |
295,923 |
43,651 |
|||||||||||
Amounts due from related parties |
599,928 |
723,124 |
106,666 |
|||||||||||
Factoring receivables |
573,674 |
570,769 |
84,193 |
|||||||||||
Other current assets |
305,948 |
78,510 |
11,581 |
|||||||||||
Total current assets |
4,822,553 |
4,407,133 |
650,087 |
|||||||||||
Long-term investments |
465,156 |
687,967 |
101,481 |
|||||||||||
Investment in affiliates |
543,280 |
588,933 |
86,872 |
|||||||||||
Property and equipment, net |
246,843 |
252,803 |
37,290 |
|||||||||||
Non-current deferred tax assets |
52,577 |
52,332 |
7,719 |
|||||||||||
Other non-current assets |
38,728 |
81,720 |
12,054 |
|||||||||||
Total Assets |
6,169,137 |
6,070,888 |
895,503 |
|||||||||||
Liabilities and Equity |
||||||||||||||
Current liabilities: |
||||||||||||||
Accrued payroll and welfare expenses |
384,235 |
431,467 |
63,645 |
|||||||||||
Income tax payable |
81,487 |
52,118 |
7,688 |
|||||||||||
Amounts due to related parties |
12,273 |
12,273 |
1,810 |
|||||||||||
Deferred revenues |
183,354 |
177,279 |
26,150 |
|||||||||||
Payable to individual investors of factoring |
579,975 |
328,562 |
48,465 |
|||||||||||
Other current liabilities |
350,842 |
266,696 |
39,341 |
|||||||||||
Convertible notes |
550,656 |
542,344 |
80,000 |
|||||||||||
Total current liabilities |
2,142,822 |
1,810,739 |
267,099 |
|||||||||||
Non-current uncertain tax position liabilities |
4,449 |
4,437 |
654 |
|||||||||||
Other non-current liabilities |
92,314 |
100,322 |
14,798 |
|||||||||||
Total Liabilities |
2,239,585 |
1,915,498 |
282,551 |
|||||||||||
Mezzanine Equity - Redeemable non- |
334,590 |
337,481 |
49,781 |
|||||||||||
Equity |
3,594,962 |
3,817,909 |
563,172 |
|||||||||||
Total Liabilities and Equity |
6,169,137 |
6,070,888 |
895,504 |
|||||||||||
Noah Holdings Limited |
|||||||||||||
Condensed Consolidated Income Statements |
|||||||||||||
(In RMB'000, except for USD data, per ADS data and percentages) |
|||||||||||||
(unaudited) |
|||||||||||||
Three months ended |
|||||||||||||
June 30, |
June 30, |
June 30, |
Change |
||||||||||
2016 |
2017 |
2017 |
|||||||||||
Revenues: |
RMB'000 |
RMB'000 |
USD'000 |
||||||||||
Third-party revenues |
|||||||||||||
One-time commissions |
209,490 |
123,321 |
18,191 |
(41.1%) |
|||||||||
Recurring service fees |
127,815 |
130,923 |
19,312 |
2.4% |
|||||||||
Performance-based income |
817 |
16,179 |
2,387 |
1880.3% |
|||||||||
Other service fees |
29,682 |
42,046 |
6,202 |
41.7% |
|||||||||
Total third-party revenues |
367,804 |
312,469 |
46,092 |
(15.0%) |
|||||||||
Related party revenues |
|||||||||||||
One-time commissions |
89,971 |
177,333 |
26,158 |
97.1% |
|||||||||
Recurring service fees |
182,166 |
209,213 |
30,861 |
14.8% |
|||||||||
Performance-based income |
23,317 |
7,570 |
1,117 |
(67.5%) |
|||||||||
Other service fees |
745 |
6,562 |
968 |
780.8% |
|||||||||
Total related party revenues |
296,199 |
400,678 |
59,104 |
35.3% |
|||||||||
Total revenues |
664,003 |
713,147 |
105,196 |
7.4% |
|||||||||
Less: business taxes and related |
(12,277) |
(5,836) |
(861) |
(52.5%) |
|||||||||
Net revenues |
651,726 |
707,311 |
104,335 |
8.5% |
|||||||||
Operating costs and expenses: |
|||||||||||||
Compensation and benefits |
|||||||||||||
Relationship manager compensation |
(147,103) |
(140,078) |
(20,663) |
(4.8%) |
|||||||||
Performance fee compensation |
(4,799) |
- |
- |
(100.0%) |
|||||||||
Other Compensations |
(176,245) |
(190,895) |
(28,159) |
8.3% |
|||||||||
Total compensation and benefits |
(328,147) |
(330,973) |
(48,822) |
0.9% |
|||||||||
Selling expenses |
(78,248) |
(71,376) |
(10,529) |
(8.8%) |
|||||||||
General and administrative expenses |
(58,251) |
(49,231) |
(7,262) |
(15.5%) |
|||||||||
Other operating expenses |
(29,158) |
(41,268) |
(6,087) |
41.5% |
|||||||||
Government subsidies |
36,183 |
9,791 |
1,444 |
(72.9%) |
|||||||||
Total operating costs and expenses |
(457,621) |
(483,057) |
(71,256) |
5.6% |
|||||||||
Income from operations |
194,105 |
224,254 |
33,079 |
15.5% |
|||||||||
Other income: |
|||||||||||||
Interest income |
11,094 |
10,440 |
1,540 |
(5.9%) |
|||||||||
Interest expenses |
(4,862) |
(4,894) |
(722) |
0.7% |
|||||||||
Investment income |
17,074 |
10,943 |
1,614 |
(35.9%) |
|||||||||
Other (expense) income |
(2,067) |
2,056 |
303 |
(199.5%) |
|||||||||
Total other income |
21,239 |
18,545 |
2,735 |
(12.7%) |
|||||||||
Income before taxes and income from |
215,344 |
242,799 |
35,814 |
12.7% |
|||||||||
Income tax expense |
(48,471) |
(60,244) |
(8,886) |
24.3% |
|||||||||
Income from equity in affiliates |
9,161 |
23,308 |
3,438 |
154.4% |
|||||||||
Net income |
176,034 |
205,863 |
30,366 |
16.9% |
|||||||||
Less: net loss attributable to non- |
(6,222) |
(4,070) |
(600) |
(34.6%) |
|||||||||
Less: Gain attributable to redeemable |
- |
2,891 |
426 |
- |
|||||||||
Net income attributable to Noah |
182,256 |
207,042 |
30,540 |
13.6% |
|||||||||
Income per ADS, basic |
3.24 |
3.67 |
0.54 |
13.3% |
|||||||||
Income per ADS, diluted |
3.10 |
3.52 |
0.52 |
13.5% |
|||||||||
Margin analysis: |
|||||||||||||
Operating margin |
29.8% |
31.7% |
31.7% |
||||||||||
Net margin |
27.0% |
29.1% |
29.1% |
||||||||||
Weighted average ADS equivalent: [1] |
|||||||||||||
Basic |
56,271,504 |
56,461,612 |
56,461,612 |
||||||||||
Diluted |
60,174,258 |
60,205,429 |
60,205,429 |
||||||||||
ADS equivalent outstanding at end of |
56,346,740 |
56,547,380 |
56,547,380 |
||||||||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs. |
|||||||||||||
Noah Holdings Limited |
||||||||||||||||||
Condensed Consolidated Income Statements |
||||||||||||||||||
(In RMB'000, except for USD data, per ADS data and percentages) |
||||||||||||||||||
(unaudited) |
||||||||||||||||||
Six months ended |
||||||||||||||||||
June 30, |
June 30, |
June 30, |
Change |
|||||||||||||||
2016 |
2017 |
2017 |
||||||||||||||||
Revenues: |
RMB'000 |
RMB'000 |
USD'000 |
|||||||||||||||
Third-party revenues |
||||||||||||||||||
One-time commissions |
437,582 |
323,107 |
47,661 |
(26.2%) |
||||||||||||||
Recurring service fees |
234,847 |
266,472 |
39,307 |
13.5% |
||||||||||||||
Performance-based income |
10,469 |
28,728 |
4,238 |
174.4% |
||||||||||||||
Other service fees |
49,712 |
68,411 |
10,091 |
37.6% |
||||||||||||||
Total third-party revenues |
732,610 |
686,718 |
101,297 |
(6.3%) |
||||||||||||||
Related party revenues |
||||||||||||||||||
One-time commissions |
150,550 |
321,889 |
47,481 |
113.8% |
||||||||||||||
Recurring service fees |
384,432 |
400,583 |
59,089 |
4.2% |
||||||||||||||
Performance-based income |
30,315 |
7,649 |
1,128 |
(74.8%) |
||||||||||||||
Other service fees |
1,364 |
13,438 |
1,982 |
885.2% |
||||||||||||||
Total related party revenues |
566,661 |
743,559 |
109,680 |
31.2% |
||||||||||||||
Total revenues |
1,299,271 |
1,430,277 |
210,977 |
10.1% |
||||||||||||||
Less: business taxes and related |
(40,388) |
(9,799) |
(1,445) |
(75.7%) |
||||||||||||||
Net revenues |
1,258,883 |
1,420,478 |
209,532 |
12.8% |
||||||||||||||
Operating costs and expenses: |
||||||||||||||||||
Compensation and benefits |
||||||||||||||||||
Relationship manager compensation |
(282,698) |
(290,391) |
(42,835) |
2.7% |
||||||||||||||
Performance fee compensation |
(8,145) |
- |
- |
(100.0%) |
||||||||||||||
Other Compensations |
(350,650) |
(381,164) |
(56,225) |
8.7% |
||||||||||||||
Total compensation and benefits |
(641,493) |
(671,555) |
(99,060) |
4.7% |
||||||||||||||
Selling expenses |
(146,150) |
(131,979) |
(19,468) |
(9.7%) |
||||||||||||||
General and administrative expenses |
(108,464) |
(108,869) |
(16,059) |
0.4% |
||||||||||||||
Other operating expenses |
(46,456) |
(70,714) |
(10,431) |
52.2% |
||||||||||||||
Government subsidies |
105,125 |
43,723 |
6,449 |
(58.4%) |
||||||||||||||
Total operating costs and expenses |
(837,438) |
(939,394) |
(138,569) |
12.2% |
||||||||||||||
Income from operations |
421,445 |
481,084 |
70,963 |
14.2% |
||||||||||||||
Other income: |
||||||||||||||||||
Interest income |
19,771 |
19,147 |
2,824 |
(3.2%) |
||||||||||||||
Interest expenses |
(9,527) |
(9,806) |
(1,446) |
2.9% |
||||||||||||||
Investment income |
25,142 |
21,089 |
3,111 |
(16.1%) |
||||||||||||||
Other (expense) income |
(1,421) |
3,193 |
471 |
(324.7%) |
||||||||||||||
Total other income |
33,965 |
33,623 |
4,960 |
(1.0%) |
||||||||||||||
Income before taxes and income from |
455,410 |
514,707 |
75,923 |
13.0% |
||||||||||||||
Income tax expense |
(101,866) |
(122,160) |
(18,020) |
19.9% |
||||||||||||||
Income from equity in affiliates |
15,064 |
29,034 |
4,283 |
92.7% |
||||||||||||||
Net income |
368,608 |
421,581 |
62,186 |
14.4% |
||||||||||||||
Less: net loss attributable to non- |
(12,646) |
(9,270) |
(1,367) |
(26.7%) |
||||||||||||||
Less: Gain attributable to redeemable |
- |
6,817 |
1,006 |
- |
||||||||||||||
Net income attributable to Noah |
381,254 |
424,034 |
62,547 |
11.2% |
||||||||||||||
Noah Holdings Limited |
||||||||||||||||||
Condensed Comprehensive Income Statements |
||||||||||||||||||
(unaudited) |
||||||||||||||||||
Three months ended |
||||||||||||||||||
June 30, |
June 30, |
June 30, |
Change |
|||||||||||||||
2016 |
2017 |
2017 |
||||||||||||||||
RMB'000 |
RMB'000 |
USD'000 |
||||||||||||||||
Net income |
176,034 |
205,863 |
30,366 |
16.9% |
||||||||||||||
Other comprehensive income, net of tax: |
||||||||||||||||||
Foreign currency translation |
7,072 |
(6,321) |
(932) |
(189.4%) |
||||||||||||||
Fair value fluctuation of available for |
(5,556) |
2,606 |
384 |
(146.9%) |
||||||||||||||
Comprehensive income |
177,550 |
202,148 |
29,818 |
13.9% |
||||||||||||||
Less: Comprehensive loss attributable to |
(6,250) |
(4,029) |
(594) |
(35.5%) |
||||||||||||||
Less: Gain attributable to redeemable |
- |
2,891 |
426 |
- |
||||||||||||||
Comprehensive income attributable to |
183,800 |
203,286 |
29,986 |
10.6% |
||||||||||||||
Noah Holdings Limited |
|||||||||||
Condensed Comprehensive Income Statements |
|||||||||||
(unaudited) |
|||||||||||
Six months ended |
|||||||||||
June 30, |
June 30, |
June 30, |
Change |
||||||||
2016 |
2017 |
2017 |
|||||||||
RMB'000 |
RMB'000 |
USD'000 |
|||||||||
Net income |
368,608 |
421,581 |
62,187 |
14.4% |
|||||||
Other comprehensive income, net of tax: |
|||||||||||
Foreign currency translation |
5,526 |
(10,459) |
(1,543) |
(289.3%) |
|||||||
Fair value fluctuation of available for |
(849) |
4,121 |
608 |
(585.4%) |
|||||||
Comprehensive income |
373,285 |
415,243 |
61,252 |
11.2% |
|||||||
Less: Comprehensive loss attributable to |
(12,687) |
(9,345) |
(1,378) |
(26.3%) |
|||||||
Less: Gain attributable to redeemable |
- |
6,817 |
1,006 |
- |
|||||||
Comprehensive income attributable to |
385,972 |
417,771 |
61,624 |
8.2% |
|||||||
Noah Holdings Limited |
|||||
Supplemental Information |
|||||
(unaudited) |
|||||
As of |
Change |
||||
June 30, 2016 |
June 30, 2017 |
||||
Number of registered clients |
114,870 |
164,728 |
43.4% |
||
Number of relationship managers |
1,093 |
1,259 |
15.2% |
||
Number of cities under coverage |
68 |
76 |
11.8% |
||
Three months ended |
Change |
||||
June 30, 2016 |
June 30, 2017 |
||||
(in millions of RMB, except number of active clients and |
|||||
Number of active clients |
4,927 |
4,484 |
(9.0%) |
||
Transaction value: |
|||||
Fixed income products |
16,987 |
23,505 |
38.4% |
||
Private equity products |
7,571 |
8,252 |
9.0% |
||
Secondary market equity products |
2,810 |
1,111 |
(60.5%) |
||
Other products |
379 |
94 |
(75.3%) |
||
Total transaction value |
27,747 |
32,962 |
18.8% |
||
Average transaction value per client |
5.63 |
7.35 |
30.5% |
Noah Holdings Limited |
|||||||
Segment Condensed Income Statements |
|||||||
(unaudited) |
|||||||
Three months ended June 30, 2017 |
|||||||
Wealth Business |
Asset Business |
Internet |
Total |
||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||
Revenues: |
|||||||
Third-party revenues |
|||||||
One-time commissions |
122,956 |
366 |
- |
123,321 |
|||
Recurring service fees |
122,860 |
8,063 |
- |
130,923 |
|||
Performance-based income |
15,015 |
1,164 |
- |
16,179 |
|||
Other service fees |
21,841 |
94 |
20,110 |
42,046 |
|||
Total third-party revenues |
282,672 |
9,687 |
20,110 |
312,469 |
|||
Related party revenues |
|||||||
One-time commissions |
177,333 |
- |
- |
177,333 |
|||
Recurring service fees |
88,366 |
120,846 |
- |
209,213 |
|||
Performance-based income |
7,194 |
376 |
- |
7,570 |
|||
Other service fees |
- |
- |
6,562 |
6,562 |
|||
Total related party revenues |
272,893 |
121,222 |
6,562 |
400,678 |
|||
Total revenues |
555,565 |
130,909 |
26,672 |
713,147 |
|||
Less: business taxes and related |
(4,964) |
(580) |
(293) |
(5,836) |
|||
Net revenues |
550,601 |
130,329 |
26,379 |
707,311 |
|||
Operating costs and expenses: |
|||||||
Compensation and benefits |
|||||||
Relationship manager |
(138,330) |
(1) |
(1,747) |
(140,078) |
|||
Other compensation |
(112,455) |
(44,687) |
(33,754) |
(190,895) |
|||
Total compensation and benefits |
(250,785) |
(44,688) |
(35,501) |
(330,973) |
|||
Selling expenses |
(66,619) |
(1,432) |
(3,025) |
(71,376) |
|||
General and administrative expenses |
(29,912) |
(11,168) |
(8,152) |
(49,231) |
|||
Other operating expenses |
(27,495) |
(3,314) |
(10,460) |
(41,268) |
|||
Government subsidies |
9,731 |
60 |
- |
9,791 |
|||
Total operating costs and expenses |
(365,380) |
(60,542) |
(57,138) |
(483,057) |
|||
Income (loss) from operations |
185,221 |
69,787 |
(30,759) |
224,254 |
Noah Holdings Limited |
|||||||
Segment Condensed Income Statements |
|||||||
(unaudited) |
|||||||
Three months ended June 30, 2016 |
|||||||
Wealth Business |
Asset Business |
Internet |
Total |
||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||
Revenues: |
|||||||
Third-party revenues |
|||||||
One-time commissions |
209,149 |
341 |
- |
209,490 |
|||
Recurring service fees |
110,292 |
17,523 |
- |
127,815 |
|||
Performance-based income |
142 |
676 |
- |
817 |
|||
Other service fees |
18,717 |
- |
10,964 |
29,682 |
|||
Total third-party revenues |
338,300 |
18,540 |
10,964 |
367,804 |
|||
Related party revenues |
|||||||
One-time commissions |
88,307 |
1,664 |
- |
89,971 |
|||
Recurring service fees |
88,177 |
93,989 |
- |
182,166 |
|||
Performance-based income |
- |
23,317 |
- |
23,317 |
|||
Other service fees |
76 |
- |
669 |
745 |
|||
Total related party revenues |
176,560 |
118,970 |
669 |
296,199 |
|||
Total revenues |
514,860 |
137,510 |
11,633 |
664,003 |
|||
Less: business taxes and related |
(9,688) |
(2,278) |
(312) |
(12,277) |
|||
Net revenues |
505,172 |
135,232 |
11,321 |
651,726 |
|||
Operating costs and expenses: |
|||||||
Compensation and benefits |
|||||||
Relationship manager |
(144,951) |
(1,095) |
(1,057) |
(147,103) |
|||
Performance fee compensation |
- |
(4,799) |
- |
(4,799) |
|||
Other compensation |
(106,630) |
(38,114) |
(31,501) |
(176,245) |
|||
Total compensation and benefits |
(251,581) |
(44,008) |
(32,558) |
(328,147) |
|||
Selling expenses |
(67,372) |
(4,425) |
(6,451) |
(78,248) |
|||
General and administrative expenses |
(31,885) |
(18,352) |
(8,013) |
(58,251) |
|||
Other operating expenses |
(21,127) |
(1,665) |
(6,366) |
(29,158) |
|||
Government subsidies |
34,167 |
2,016 |
- |
36,183 |
|||
Total operating costs and expenses |
(337,798) |
(66,434) |
(53,388) |
(457,621) |
|||
Income (loss) from operations |
167,374 |
68,798 |
(42,067) |
194,105 |
Noah Holdings Limited |
||||||
Reconciliation of GAAP to Non-GAAP Results |
||||||
(In RMB, except for per ADS data and percentages) |
||||||
(unaudited) |
||||||
Three months ended |
||||||
June 30, |
June 30, |
Change |
||||
2016 |
2017 |
|||||
RMB'000 |
RMB'000 |
|||||
Net income attributable to Noah |
182,256 |
207,042 |
13.6% |
|||
Adjustment for share-based compensation related to: |
||||||
Share options |
9,379 |
12,622 |
34.6% |
|||
Restricted shares |
6,306 |
6,849 |
8.6% |
|||
Adjusted net income |
197,941 |
226,513 |
14.4% |
|||
Net margin |
27.0% |
29.1% |
||||
Adjusted net margin (non-GAAP)* |
29.4% |
31.9% |
||||
Net income attributable to |
3.10 |
3.52 |
13.5% |
|||
Adjusted net income |
3.37 |
3.84 |
13.9% |
|||
*The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments. |
View original content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-second-quarter-of-2017-300510058.html
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