Noah Holdings Limited Announces Unaudited Financial Results for the Third Quarter of 2017
THIRD QUARTER 2017 FINANCIAL HIGHLIGHTS
- Net revenues for the third quarter of 2017 were
RMB684.3 million (US$102.9 million ), a 12.5% increase from the corresponding period in 2016.
(RMB millions, except percentages) |
Q3 2016 |
Q3 2017 |
YoY Change |
||||
Wealth management |
474.6 |
488.9 |
3.0% |
||||
Asset management |
122.5 |
164.6 |
34.3% |
||||
Internet financial services |
11.4 |
30.9 |
172.0% |
||||
Total net revenues |
608.5 |
684.3 |
12.5% |
- Income from operations for the third quarter of 2017 was
RMB160.3 million (US$24.1 million ), a 1.3% decrease from the corresponding period in 2016.
(RMB millions, except percentages) |
Q3 2016 |
Q3 2017 |
YoY Change |
||||
Wealth management |
143.1 |
106.8 |
(25.3%) |
||||
Asset management |
62.4 |
77.5 |
24.3% |
||||
Internet financial services |
(43.0) |
(24.0) |
(44.1%) |
||||
Total income from operations |
162.5 |
160.3 |
(1.3%) |
- Net income attributable to Noah shareholders for the third quarter of 2017 was
RMB185.9 million (US$27.9 million ), a 19.8% increase from the corresponding period in 2016. - Non-GAAP[1] net income attributable to Noah shareholders for the third quarter of 2017 was
RMB215.4 million (US$32.4 million ), a 19.9% increase from the corresponding period in 2016.
THIRD QUARTER 2017 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business offers financial 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
September 30, 2017 was 175,979, a 34.9% increase fromSeptember 30, 2016 . - Total number of active clients[2] during the third quarter of 2017 was 4,456, a 2.7% increase from
September 30, 2016 . - Aggregate value of financial products distributed during the third quarter of 2017 was
RMB23.5 billion (US$3.5 billion ), a 1.5% decrease from the third quarter of 2016.
Product type |
Three months ended September 30, |
|||
2016 |
2017 |
|||
(RMB in billions, except percentages) |
||||
Fixed income |
17.0 |
71.2% |
10.8 |
45.8% |
Private equity |
5.4 |
22.5% |
9.6 |
40.7% |
Secondary market equity |
1.0 |
4.3% |
3.1 |
13.2% |
Other products |
0.5 |
2.0% |
0.1 |
0.3% |
All products |
23.9 |
100.0% |
23.5 |
100.0% |
- Average transaction value per client[3] for the third quarter of 2017 was
RMB5.3 million (US$0.8 million ), a 4.1% decrease from the corresponding period in 2016. - Number of relationship managers was 1,286 as of
September 30, 2017 , a 2.1% increase fromJune 30, 2017 and a 17.4% increase fromSeptember 30, 2016 .
Asset Management Business
- Total assets under management as of
September 30, 2017 wereRMB142.9 billion (US$21.5 billion ), a 3.0% increase fromJune 30, 2017 and a 24.4% increase fromSeptember 30, 2016 .
Investment type |
As of June 30, 2017 |
Asset Growth |
Asset Expiration/ Redemption |
As of September 30, 2017 |
|||
(RMB billions, except percentages) |
|||||||
Real estate |
15.4 |
11.1% |
0.8 |
4.6 |
11.6 |
8.1% |
|
Private equity |
72.2 |
52.0% |
9.3 |
0.2 |
81.3 |
56.9% |
|
Secondary market |
6.9 |
4.9% |
0.1 |
1.0 |
6.0 |
4.2% |
|
Credit |
40.7 |
29.4% |
8.9 |
9.2 |
40.4 |
28.3% |
|
Other investments |
3.5 |
2.5% |
0.1 |
- |
3.6 |
2.5% |
|
All Investments |
138.7 |
100.0% |
19.2 |
14.9 |
142.9 |
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.
Mr.
THIRD QUARTER 2017 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2017 were
- Wealth Management Business
- Net revenues from one-time commissions for the third quarter of 2017 were
RMB211.3 million (US$31.8 million ), a 24.3% decrease from the corresponding period in 2016, primarily due to a decline in sales of insurance products. - Net revenues from recurring service fees for the third quarter of 2017 were
RMB209.6 million (US$31.5 million ), a 19.9% increase from the corresponding period in 2016. The increase was primarily due to the cumulative effect of financial products with recurring service fees previously distributed. - Net revenues from performance-based income for the third quarter of 2017 were
RMB48.0 million (US$7.2 million ), compared withRMB1.2 million in the corresponding period of 2016, primarily due to the realization of performance-based income from a real estate product distributed in previous periods. - Net revenues from other service fees for the third quarter of 2017 were
RMB19.9 million (US$3.0 million ), a 2.6% increase from the corresponding period in 2016. - Asset Management Business
- Net revenues from recurring service fees for the third quarter of 2017 were
RMB132.9 million (US$20.0 million ), a 12.0% 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 third quarter of 2017 were
RMB26.3 million (US$4.0 million ), compared withRMB3.5 million in the corresponding period of 2016, primarily due to the realization of performance-based income from a real estate project. - Internet Financial Service Business
- Net revenues for the third quarter of 2017 were
RMB30.9 million (US$4.6 million ), a 172.0% increase from the corresponding period in 2016. The increase was primarily due to the growth in overall Internet financial services compared with the corresponding period of 2016.
Operating costs and expenses
Operating costs and expenses for the third quarter of 2017 were
- Operating costs and expenses for the wealth management business for the third quarter of 2017 were
RMB382.0 million (US$57.4 million ), a 15.2% increase from the corresponding period in 2016, primarily due to an increase in relationship manager compensation, resulting from higher PE/VC product sales volume which have relatively higher commissions. - Operating costs and expenses for the asset management business for the third quarter of 2017 were
RMB87.0 million (US$13.1 million ), a 44.8% increase from the corresponding period in 2016, primarily due to an increase in staff compensation. - Operating costs and expenses for the Internet financial service business for the third quarter of 2017 were
RMB54.9 million (US$8.3 million ), a 1.1% increase from the corresponding period in 2016.
Operating Margin
Operating margin for the third quarter of 2017 was 23.4%, a decrease from 26.7% for the corresponding period in 2016. The decrease was mainly due to decreased government subsidies.
- Operating margin for the wealth management business for the third quarter of 2017 decreased to 21.9% from 30.1% for the corresponding period in 2016.
- Operating margin for the asset management business for the third quarter of 2017 was 47.1%, compared with 50.9% for the corresponding period in 2016.
- Operating loss for the Internet financial service business for the third quarter of 2017 was
RMB24.0 million (US$3.6 million ), down fromRMB43.0 million for the corresponding period in 2016.
Income Tax Expenses
Income tax expenses for the third quarter of 2017 were
Income from Equity in Affiliates
Income from equity in affiliates for the third quarter of 2017 was
Net Income
- Net Income
- Net income for the third quarter of 2017 was
RMB183.4 million (US$27.6 million ), a 24.3% increase from the corresponding period in 2016. - Net margin for the third quarter of 2017 was 26.8%, up from 24.3% for the corresponding period in 2016.
- Net income attributable to Noah shareholders for the third quarter of 2017 was
RMB185.9 million (US$27.9 million ), a 19.8% increase from the corresponding period in 2016. - Net income attributable to Noah shareholders per basic and diluted ADS for the third quarter of 2017 was
RMB3.28 (US$0.49) andRMB3.13 (US$0.47) , respectively, up fromRMB2.75 andRMB2.65 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 third quarter of 2017 was
RMB215.4 million (US$32.4 million ), a 19.9% increase from the corresponding period in 2016. - Non-GAAP net margin attributable to Noah shareholders for the third quarter of 2017 was 31.5%, up from 29.5% for the corresponding period in 2016.
- Non-GAAP net income attributable to Noah shareholders per diluted ADS for the third quarter of 2017 was
RMB3.62 (US$0.54) , up fromRMB3.05 for the corresponding period in 2016.
Balance Sheet and Cash Flow
As of
Net cash inflow from the Company's operating activities during the third quarter of 2017 was
Net cash inflow from the Company's investing activities during the third quarter of 2017 was
Net cash outflow 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 third 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, November 20, 2017 at 8:00 p.m., U.S. Eastern Time Tuesday, November 21, 2017 at 9:00 a.m., Hong Kong Time |
Dial in details: |
|
- United States Toll Free |
+1-866-311-7654 |
- Mainland China Toll Free |
4001-201203 |
- Hong Kong Toll Free |
800-905-945 |
- International |
+1-412-317-5227 |
Conference Title: |
Noah Holdings Limited Third 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,
Noah's 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 1,286 relationship managers across 222 branches and sub-branches in 78 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 |
||||||||||||||||||||||||
June 30, 2017 |
September 30, 2017 |
September 30, 2017 |
||||||||||||||||||||||
RMB'000 |
RMB'000 |
USD'000 |
||||||||||||||||||||||
Assets |
||||||||||||||||||||||||
Current assets: |
||||||||||||||||||||||||
Cash and cash equivalents |
2,003,529 |
1,987,798 |
298,769 |
|||||||||||||||||||||
Restricted cash |
- |
- |
- |
|||||||||||||||||||||
Short-term investments (including short-term |
569,513 |
424,692 |
63,832 |
|||||||||||||||||||||
Accounts receivable, net of allowance for |
165,765 |
144,724 |
21,752 |
|||||||||||||||||||||
Loans receivable |
295,923 |
401,229 |
60,305 |
|||||||||||||||||||||
Amounts due from related parties |
723,124 |
701,756 |
105,475 |
|||||||||||||||||||||
Loans receivable from factoring business |
570,769 |
440,794 |
66,252 |
|||||||||||||||||||||
Other current assets |
78,510 |
238,830 |
35,896 |
|||||||||||||||||||||
Total current assets |
4,407,133 |
4,339,823 |
652,281 |
|||||||||||||||||||||
Long-term investments (including long-term |
687,967 |
690,747 |
103,820 |
|||||||||||||||||||||
Investment in affiliates |
588,933 |
640,820 |
96,316 |
|||||||||||||||||||||
Property and equipment, net |
252,803 |
248,090 |
37,288 |
|||||||||||||||||||||
Non-current deferred tax assets |
52,332 |
52,083 |
7,828 |
|||||||||||||||||||||
Other non-current assets |
81,720 |
104,438 |
15,700 |
|||||||||||||||||||||
Total Assets |
6,070,888 |
6,076,001 |
913,233 |
|||||||||||||||||||||
Liabilities and Equity |
||||||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||||||
Accrued payroll and welfare expenses |
431,467 |
491,929 |
73,938 |
|||||||||||||||||||||
Income tax payable |
52,118 |
70,051 |
10,529 |
|||||||||||||||||||||
Amounts due to related parties |
12,273 |
273 |
41 |
|||||||||||||||||||||
Deferred revenues |
177,279 |
211,861 |
31,843 |
|||||||||||||||||||||
Loans payable from factoring business |
328,562 |
303,866 |
45,671 |
|||||||||||||||||||||
Other current liabilities |
266,696 |
366,450 |
55,079 |
|||||||||||||||||||||
Convertible notes |
542,344 |
498,998 |
75,000 |
|||||||||||||||||||||
Total current liabilities |
1,810,739 |
1,943,428 |
292,101 |
|||||||||||||||||||||
Non-current uncertain tax position liabilities |
4,437 |
4,424 |
665 |
|||||||||||||||||||||
Other non-current liabilities |
100,322 |
71,807 |
10,793 |
|||||||||||||||||||||
Total Liabilities |
1,915,498 |
2,019,659 |
303,559 |
|||||||||||||||||||||
Mezzanine Equity - Redeemable non-controlling Interest of Subsidiary |
337,481 |
- |
- |
|||||||||||||||||||||
Equity |
3,817,909 |
4,056,342 |
609,674 |
|||||||||||||||||||||
Total Liabilities and Equity |
6,070,888 |
6,076,001 |
913,233 |
Noah Holdings Limited |
|||||||||||||
Condensed Consolidated Income Statements |
|||||||||||||
(In RMB'000, except for USD data, per ADS data and percentages) |
|||||||||||||
(unaudited) |
|||||||||||||
Three months ended |
|||||||||||||
September 30, |
September 30, |
September 30, |
Change |
||||||||||
2016 |
2017 |
2017 |
|||||||||||
Revenues: |
RMB'000 |
RMB'000 |
USD'000 |
||||||||||
Revenues from third party |
|||||||||||||
One-time commissions |
208,917 |
87,455 |
13,145 |
(58.1%) |
|||||||||
Recurring service fees |
113,230 |
125,702 |
18,893 |
11.0% |
|||||||||
Performance-based income |
3,258 |
48,759 |
7,329 |
1396.6% |
|||||||||
Other service fees |
30,903 |
50,866 |
7,645 |
64.6% |
|||||||||
Total third-party revenues |
356,308 |
312,782 |
47,012 |
(12.2%) |
|||||||||
Revenues from related party |
|||||||||||||
One-time commissions |
72,276 |
125,598 |
18,878 |
73.8% |
|||||||||
Recurring service fees |
181,689 |
218,684 |
32,869 |
20.4% |
|||||||||
Performance-based income |
1,467 |
26,020 |
3,911 |
1673.7% |
|||||||||
Other service fees |
32 |
5,335 |
802 |
16571.9% |
|||||||||
Total related party revenues |
255,464 |
375,637 |
56,460 |
47.0% |
|||||||||
Total revenues |
611,772 |
688,419 |
103,470 |
12.5% |
|||||||||
Less: business taxes and related surcharges |
(3,314) |
(4,106) |
(617) |
23.9% |
|||||||||
Net revenues |
608,458 |
684,313 |
102,855 |
12.5% |
|||||||||
Operating costs and expenses: |
|||||||||||||
Compensation and benefits |
|||||||||||||
Relationship manager compensation |
(130,889) |
(158,310) |
(23,794) |
20.9% |
|||||||||
Other Compensations |
(187,514) |
(197,871) |
(29,740) |
5.5% |
|||||||||
Total compensation and benefits |
(318,403) |
(356,181) |
(53,534) |
11.9% |
|||||||||
Selling expenses |
(77,845) |
(76,967) |
(11,568) |
(1.1%) |
|||||||||
General and administrative expenses |
(54,879) |
(60,738) |
(9,129) |
10.7% |
|||||||||
Other operating expenses |
(38,040) |
(35,330) |
(5,310) |
(7.1%) |
|||||||||
Government subsidies |
43,172 |
5,234 |
787 |
(87.9%) |
|||||||||
Total operating costs and expenses |
(445,995) |
(523,982) |
(78,754) |
17.5% |
|||||||||
Income from operations |
162,463 |
160,331 |
24,101 |
(1.3%) |
|||||||||
Other income: |
|||||||||||||
Interest income |
11,836 |
12,962 |
1,948 |
9.5% |
|||||||||
Interest expenses |
(4,891) |
(4,728) |
(711) |
(3.3%) |
|||||||||
Investment income |
4,503 |
11,271 |
1,694 |
150.3% |
|||||||||
Other (expense) income |
2,495 |
(290) |
(44) |
(111.6%) |
|||||||||
Total other income |
13,943 |
19,215 |
2,887 |
37.8% |
|||||||||
Income before taxes and income from equity in affiliates |
176,406 |
179,546 |
26,988 |
1.8% |
|||||||||
Income tax expense |
(33,974) |
(41,845) |
(6,289) |
23.2% |
|||||||||
Income from equity in affiliates |
5,134 |
45,712 |
6,871 |
790.4% |
|||||||||
Net income |
147,566 |
183,413 |
27,570 |
24.3% |
|||||||||
Less: net loss attributable to non-controlling Interests |
(7,643) |
(2,136) |
(321) |
(72.1%) |
|||||||||
Less: Loss attributable to redeemable non-controlling interest of Subsidiary |
- |
(333) |
(50) |
- |
|||||||||
Net income attributable to Noah Shareholders |
155,209 |
185,882 |
27,941 |
19.8% |
|||||||||
Income per ADS, basic |
2.75 |
3.28 |
0.49 |
19.3% |
|||||||||
Income per ADS, diluted |
2.65 |
3.13 |
0.47 |
18.1% |
|||||||||
Margin analysis: |
|||||||||||||
Operating margin |
26.7% |
23.4% |
23.4% |
||||||||||
Net margin |
24.3% |
26.8% |
26.8% |
||||||||||
Weighted average ADS equivalent: [1] |
|||||||||||||
Basic |
56,382,358 |
56,594,562 |
56,594,562 |
||||||||||
Diluted |
60,444,632 |
60,749,462 |
60,749,462 |
||||||||||
ADS equivalent outstanding at end of period |
56,432,189 |
56,704,721 |
56,704,721 |
||||||||||
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs. |
Condensed Comprehensive Income Statements |
|||||||||||
(unaudited) |
|||||||||||
Three months ended |
|||||||||||
September 30, |
September 30, |
September 30, |
Change |
||||||||
2016 |
2017 |
2017 |
|||||||||
RMB'000 |
RMB'000 |
USD'000 |
|||||||||
Net income |
147,566 |
183,413 |
27,570 |
24.3% |
|||||||
Other comprehensive income, net of tax: |
|||||||||||
Foreign currency translation adjustments |
(627) |
(10,362) |
(1,557) |
1552.6% |
|||||||
Fair value fluctuation of available for sale investment (after tax) |
10,327 |
4,930 |
741 |
(52.3%) |
|||||||
Comprehensive income |
157,266 |
177,981 |
26,754 |
13.2% |
|||||||
Less: Comprehensive loss attributable to non-controlling interests |
(7,683) |
(2,089) |
(314) |
(72.8%) |
|||||||
Less: Loss attributable to redeemable non-controlling interest of Subsidiary |
- |
(333) |
(50) |
- |
|||||||
Comprehensive income attributable to Noah Shareholders |
164,949 |
180,403 |
27,118 |
9.4% |
|||||||
Noah Holdings Limited |
|||||
Supplemental Information |
|||||
(unaudited) |
|||||
As of |
Change |
||||
September 30, 2016 |
September 30, 2017 |
||||
Number of registered clients |
130,491 |
175,979 |
34.9% |
||
Number of relationship managers |
1,095 |
1,286 |
17.4% |
||
Number of cities under coverage |
71 |
78 |
9.9% |
||
Three months ended |
Change |
||||
September 30, 2016 |
September 30, 2017 |
||||
(in millions of RMB, except number of active clients and percentages) |
|||||
Number of active clients |
4,337 |
4,456 |
2.7% |
||
Transaction value: |
|||||
Fixed income products |
17,027 |
10,785 |
(36.7%) |
||
Private equity products |
5,390 |
9,578 |
77.7% |
||
Secondary market equity products |
1,018 |
3,105 |
204.8% |
||
Other products |
470 |
79 |
(83.1%) |
||
Total transaction value |
23,904 |
23,546 |
(1.5%) |
||
Average transaction value per client |
5.51 |
5.28 |
(4.1%) |
Noah Holdings Limited |
|||||||
Segment Condensed Income Statements |
|||||||
(unaudited) |
|||||||
Three months ended September 30, 2017 |
|||||||
Wealth Management Business |
Asset Management Business |
Internet Financial Service Business |
Total |
||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||
Revenues: |
|||||||
Revenues from third party |
|||||||
One-time commissions |
87,139 |
316 |
- |
87,455 |
|||
Recurring service fees |
119,193 |
6,509 |
- |
125,702 |
|||
Performance-based income |
48,349 |
410 |
- |
48,759 |
|||
Other service fees |
19,991 |
4,974 |
25,901 |
50,866 |
|||
Total third-party revenues |
274,672 |
12,209 |
25,901 |
312,782 |
|||
Revenues from related party |
|||||||
One-time commissions |
125,517 |
81 |
- |
125,598 |
|||
Recurring service fees |
91,733 |
126,951 |
- |
218,684 |
|||
Performance-based income |
- |
26,020 |
- |
26,020 |
|||
Other service fees |
- |
- |
5,335 |
5,335 |
|||
Total related party revenues |
217,250 |
153,052 |
5,335 |
375,637 |
|||
Total revenues |
491,922 |
165,261 |
31,236 |
688,419 |
|||
Less: business taxes and related surcharges |
(3,059) |
(709) |
(338) |
(4,106) |
|||
Net revenues |
488,863 |
164,552 |
30,898 |
684,313 |
|||
Operating costs and expenses: |
|||||||
Compensation and benefits |
|||||||
Relationship manager compensation |
(157,561) |
- |
(749) |
(158,310) |
|||
Other compensation |
(116,828) |
(52,178) |
(28,865) |
(197,871) |
|||
Total compensation and benefits |
(274,389) |
(52,178) |
(29,614) |
(356,181) |
|||
Selling expenses |
(69,769) |
(3,801) |
(3,397) |
(76,967) |
|||
General and administrative expenses |
(26,216) |
(21,803) |
(12,719) |
(60,738) |
|||
Other operating expenses |
(14,749) |
(11,403) |
(9,178) |
(35,330) |
|||
Government subsidies |
3,097 |
2,137 |
- |
5,234 |
|||
Total operating costs and expenses |
(382,026) |
(87,048) |
(54,908) |
(523,982) |
|||
Income (loss) from operations |
106,837 |
77,504 |
(24,010) |
160,331 |
Noah Holdings Limited |
|||||||
Segment Condensed Income Statements |
|||||||
(unaudited) |
|||||||
Three months ended September 30, 2016 |
|||||||
Wealth Management Business |
Asset Management Business |
Internet Financial Service Business |
Total |
||||
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||
Revenues: |
|||||||
Revenues from third party |
|||||||
One-time commissions |
208,687 |
230 |
- |
208,917 |
|||
Recurring service fees |
99,738 |
13,492 |
- |
113,230 |
|||
Performance-based income |
1,146 |
2,112 |
- |
3,258 |
|||
Other service fees |
19,437 |
- |
11,466 |
30,903 |
|||
Third party revenues |
329,008 |
15,834 |
11,466 |
356,308 |
|||
Revenues from related party |
|||||||
One-time commissions |
72,151 |
125 |
- |
72,276 |
|||
Recurring service fees |
76,047 |
105,642 |
- |
181,689 |
|||
Performance-based income |
57 |
1,410 |
- |
1,467 |
|||
Other service fees |
32 |
- |
- |
32 |
|||
Related party revenues |
148,287 |
107,177 |
- |
255,464 |
|||
Total revenues |
477,295 |
123,011 |
11,466 |
611,772 |
|||
Less: business taxes and related surcharges |
(2,691) |
(514) |
(109) |
(3,314) |
|||
Net revenues |
474,604 |
122,497 |
11,357 |
608,458 |
|||
Operating costs and expenses: |
|||||||
Compensation and benefits |
|||||||
Relationship manager compensation |
(128,869) |
(3) |
(2,017) |
(130,889) |
|||
Other compensation |
(115,908) |
(38,530) |
(33,076) |
(187,514) |
|||
Total compensation and benefits |
(244,777) |
(38,533) |
(35,093) |
(318,403) |
|||
Selling expenses |
(70,124) |
(3,834) |
(3,887) |
(77,845) |
|||
General and administrative expenses |
(26,742) |
(21,191) |
(6,946) |
(54,879) |
|||
Other operating expenses |
(24,889) |
(4,743) |
(8,408) |
(38,040) |
|||
Government subsidies |
34,992 |
8,180 |
- |
43,172 |
|||
Total operating costs and expenses |
(331,540) |
(60,121) |
(54,334) |
(445,995) |
|||
Income (loss) from operations |
143,064 |
62,376 |
(42,977) |
162,463 |
Noah Holdings Limited |
||||||
Reconciliation of GAAP to Non-GAAP Results |
||||||
(In RMB, except for per ADS data and percentages) |
||||||
(unaudited) |
||||||
Three months ended |
||||||
September 30, |
September 30, |
Change |
||||
2016 |
2017 |
|||||
RMB'000 |
RMB'000 |
|||||
Net income attributable to Noah Shareholders |
155,209 |
185,882 |
19.8% |
|||
Adjustment for share-based compensation related to: |
||||||
Share options |
5,410 |
15,105 |
179.2% |
|||
Restricted shares |
19,082 |
14,396 |
(24.6%) |
|||
Adjusted net income attributable to Noah Shareholders (non-GAAP)* |
179,701 |
215,383 |
19.9% |
|||
Net margin |
24.3% |
26.8% |
||||
Adjusted net margin (non-GAAP)* |
28.3% |
31.1% |
||||
Net income attributable to Noah Shareholders per ADS, diluted |
2.65 |
3.13 |
18.1% |
|||
Adjusted net income attributable to Noah Shareholders per ADS, diluted (non-GAAP)* |
3.05 |
3.62 |
18.7% |
|||
*The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments. |
||||||
[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 financial products distributed by Noah during the period specified. |
[3] "Average transaction value per client" refers to the average value of financial products distributed by Noah that were purchased by active clients during the period specified. |
View original content:http://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2017-300559285.html
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