SHANGHAI, Nov. 27, 2024 /PRNewswire/ — Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for Mandarin-speaking high-net-worth investors, today announced its unaudited financial results for the third quarter of 2024.
THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS
Net revenues for the third quarter of 2024 were RMB683.7 million (US$97.4 million), an 8.8% decrease from the corresponding period in 2023, primarily due to a 33.0% decrease in net revenues from mainland China, which was partially offset by a 28.9% increase in net revenues from overseas. Net revenues from mainland China for the third quarter of 2024 were RMB306.8 million (US$43.7 million), a 33.0% decrease from the corresponding period in 2023, primarily due to decreases of 89.9% in revenue from distribution of domestic insurance products and 17.3% in revenue from recurring service fees from RMB private equity products. Net revenues from overseas for the third quarter of 2024 were RMB376.9 million (US$53.7 million), a 28.9% increase from the corresponding period in 2023, primarily due to increases of 42.5% in revenue from offshore investment products and 42.4% in revenue from insurance products, which were partially offset by a 38.8% decrease in revenue from other services provided to offshore high-net-worth investors.
Net Revenues by segment is as follows:
(RMB millions,
except percentages)
Q3 2023
Q3 2024
YoY Change
Wealth management
548.8
465.0
(15.3 %)
Asset management
191.4
208.9
9.2 %
Other businesses
9.8
9.8
(0.7 %)
Total net revenues
750.0
683.7
(8.8 %)
Net Revenues by geography is as follows:
(RMB millions,
except percentages)
Q3 2023
Q3 2024
YoY Change
Mainland China
457.7
306.8
(33.0 %)
Overseas
292.3
376.9
28.9 %
Total net revenues
750.0
683.7
(8.8 %)
Income from operations for the third quarter of 2024 was RMB240.8 million (US$34.3 million), a 3.2% decrease from the corresponding period in 2023, mainly due to the 8.8% decrease in net revenues, which was partially offset by an 11.6% decrease in operating costs and expenses driven by various cost control measures. Income from operations increased by 79.7% sequentially for the third quarter of 2024, primarily due to an 11.0% increase in net revenues and an 8.1% decrease in operating costs and expenses.
Income from operations by segment is as follows:
(RMB millions,
except percentages)
Q3 2023
Q3 2024
YoY Change
Wealth management
154.5
138.9
(10.1 %)
Asset management
106.5
122.5
15.0 %
Other businesses
(12.1)
(20.6)
70.5 %
Total income from operations
248.9
240.8
(3.2 %)
Net income attributable to Noah shareholders for the third quarter of 2024 was RMB134.4 million (US$19.2 million), a 42.4% decrease from the corresponding period in 2023, mainly due to (i) a 3.2% decrease in income from operations; (ii) approximately RMB43.6 million in unrealized USD-denominated foreign exchange losses; and (iii) a one-off 30.0% increase in income tax expenses associated with a dividend withholding tax for offshore dividend payments from PRC subsidiaries. Net income attributable to Noah shareholders increased by 34.7% sequentially in the third quarter of 2024, mainly due to a 79.7% increase in income from operations. Non-GAAP[1] net income attributable to Noah shareholders for the third quarter of 2024 was RMB150.5 million (US$21.4 million), a 35.2% decrease from the corresponding period in 2023 and a 41.9% increase from the second quarter of 2024.
THIRD QUARTER 2024 OPERATIONAL UPDATES
Wealth Management Business
Noah offers global investment products and provides value-added services to global Mandarin-speaking high-net-worth investors in its wealth management business. Noah primarily distributes private equity, private secondary, mutual funds and other products denominated in RMB, USD and other currencies.
Total number of registered clients as of September 30, 2024, was 460,380, a 1.8% increase from September 30, 2023, and a 0.3% increase from June 30, 2024. Among registered clients as of September 30, 2024, the number of overseas registered clients was 17,287, a 20.9% increase from September 30, 2023, and a 3.0% increase from June 30, 2024. Total number of active clients[2] for the third quarter of 2024 was 7,857, a decrease of 17.2% from the third quarter of 2023 and a 9.0% decrease from the second quarter of 2024. Among active clients during the third quarter of 2024, the number of overseas active clients was 3,139, a 37.4% increase from the third quarter of 2023, and a 3.2% decrease from the second quarter of 2024. Aggregate value of investment products distributed during the third quarter of 2024 was RMB14.3 billion (US$2.0 billion), a 36.1% decrease from the corresponding period in 2023, mainly due to a 42.1% decrease in distribution of mutual fund products. The aggregate value of investment products distributed decreased by 1.1% sequentially, mainly due to a decrease in distribution of private secondary products. Among the investment products distributed during the third quarter of 2024, Noah distributed RMB7.8 billion (US$1.1 billion) of overseas investment products, an 11.4% increase from the corresponding period of 2023, primarily due to a 76.7% increase in distribution of overseas mutual fund products.
The aggregate value of investment products distributed, categorized by product type, is as follows:
Three months ended September 30,
2023
2024
Product type
(RMB in billions, except percentages)
Mutual fund products
14.9
66.9 %
8.6
60.6 %
Private secondary products
5.7
25.4 %
3.6
25.0 %
Private equity products
0.7
3.1 %
1.1
7.5 %
Other products[3]
1.0
4.6 %
1.0
6.9 %
All products
22.3
100.0 %
14.3
100.0 %
The aggregate value of investment products distributed, categorized by geography, is as follows：
Type of products in mainland China
Three months ended September 30,
2023
2024
(RMB in billions, except percentages)
Mutual fund products
12.9
84.0 %
5.2
80.2 %
Private secondary products
1.8
11.4 %
0.8
12.3 %
Private equity products
–
0.3 %
–
0.0 %
Other products
0.7
4.3 %
0.5
7.5 %
All products in mainland China
15.4
100.0 %
6.5
100.0 %
Type of overseas products
Three months ended September 30,
2023
2024
(RMB in billions, except percentages)
Mutual fund products
2.0
28.1 %
3.4
44.6 %
Private secondary products
3.9
56.2 %
2.8
35.7 %
Private equity products
0.7
10.8 %
1.1
13.7 %
Other products
0.3
4.9 %
0.5
6.0 %
All Overseas products
6.9
100.0 %
7.8
100.0 %
Coverage network in mainland China included 13 cities as of September 30, 2024, compared with 59 cities as of September 30, 2023, and 15 cities as of June 30, 2024, primarily due to the continued streamlining of the Company’s coverage network. Aggregate number of overseas relationship managers was 146 as of September 30, 2024, an increase of 89.6% from September 30, 2023, and 29.2% from June 30, 2024.
Asset Management Business
Noah’s asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading multi-asset manager in China, and Olive Asset Management Co., Ltd. ("Olive Asset Management"), the Company’s recently launched overseas asset management brand focused on providing global investment solutions with offices in Hong Kong and the United States. Gopher Asset Management and Olive Asset Management develop and manage assets ranging from private equity, real estate, public securities to multi-strategy investments denominated in RMB, USD and other currencies.
Total assets under management as of September 30, 2024, were RMB150.1 billion (US$21.4 billion), a 2.5% decrease from June 30, 2024, and a 3.1% decrease from September 30, 2023, mainly due to exits in RMB private equity investment products and exchange rate fluctuations affecting the value of overseas assets under management. Mainland China assets under management as of September 30, 2024, were RMB110.6 billion (US$15.8 billion), compared with RMB119.5 billion as of September 30, 2023, and RMB114.9 billion as of June 30, 2024. Overseas assets under management as of September 30, 2024, were RMB39.5 billion (US$5.6 billion), compared with RM35.4 billion as of September 30, 2023, and RMB39.1 billion as of June 30, 2024.
Total assets under management, categorized by investment type, are as follows:
Investment type
As of June 30, 2024
Growth
Allocation/Redemption
As ofSeptember 30, 2024
(RMB billions, except percentages)
Private equity
133.0
86.4 %
0.5
3.4 [4]
130.1
86.7 %
Public securities[5]
10.4
6.7 %
2.3
2.8
9.9
6.6 %
Real estate
5.8
3.8 %
–
0.3
5.5
3.7 %
Multi-strategies
4.2
2.7 %
–
0.1
4.1
2.7 %
Others
0.6
0.4 %
–
0.1
0.5
0.3 %
All Investments
154.0
100.0 %
2.8
6.7
150.1
100.0 %
Total assets under management, categorized by geography, are as follows:
Mainland China Investment type
As of June 30, 2024
Growth
Allocation/
Redemption
As ofSeptember 30, 2024
(RMB billions, except percentages)
Private equity
103.4
90.1 %
–
3.3
100.1
90.5 %
Public securities
6.0
5.2 %
0.5
1.0
5.5
5.0 %
Real estate
2.4
2.1 %
–
0.2
2.2
2.0 %
Multi-strategies
2.5
2.1 %
–
0.2
2.3
2.0 %
Others
0.6
0.5 %
–
0.1
0.5
0.5 %
All Investments
114.9
100.0 %
0.5
4.8
110.6
100.0 %
Overseas
Investment type
As of
June 30, 2024
Growth
Allocation/
Redemption
As ofSeptember 30, 2024
(RMB billions, except percentages)
Private equity
29.6
75.5 %
0.5
0.1
30.0
75.9 %
Public securities
4.4
11.2 %
1.8
1.8
4.4
11.1 %
Real estate
3.4
8.7 %
–
0.1
3.3
8.4 %
Multi-strategies
1.7
4.6 %
–
(0.1)
1.8
4.6 %
All Investments
39.1
100.0 %
2.3
1.9
39.5
100.0 %
[1] Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation and net of relevant tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.
[2] "Active clients" for a given period refers to registered clients who purchase investment products distributed or receive services provided by the Company during that given period.
[3] "Other products" refers to other investment products, which includes insurance products, multi-strategies products and others.
[4] The asset allocation/redemption of overseas investment products includes the fluctuation result of foreign currencies exchange rate.
[5] The asset allocation/redemption of public securities also includes market appreciation or depreciation.
Other Businesses
Noah’s other businesses mainly include providing clients with additional comprehensive services and investment products. Operating results for other businesses also include headquarter rental income, depreciation and amortization, as well as operating expenses.
Ms. Jingbo Wang, co-founder and chairwoman of Noah, commented, "I’m pleased to report a significant sequential rebound in net revenues, operating margin, and net income as the pace of our overseas expansion gains momentum and client demand for global asset allocation strengthens. Net revenues from overseas grew by 28.9% year-over-year, bolstered by ongoing investments to expand our global footprint. Our team of relationship managers directly supporting this expansion grew to 146 professionals, an increase of 89.6% year-over-year and 29.2% sequentially. We also opened our Japan office during the quarter to attract local Mandarin-speaking clients and are actively evaluating opportunities in other key potential markets such as Canada, Australia, Southeast Asia, and Europe, to capitalize on this momentum. While sluggish domestic markets continue to pose challenges, we are encouraged by initial signs of a recovery and improving client sentiment, driven by recent policies aimed at supporting the broader economy. We remain confident in the substantial potential for wealth management services tailored to global Mandarin-speaking high-net-worth investors, many of whom are currently underserved by local financial institutions. This presents us with significant opportunities to acquire new clients through our competitive global investment solutions and renowned service standards."
THIRD QUARTER 2024 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2024 were RMB683.7 million (US$97.4 million), an 8.8% decrease from the corresponding period in 2023.
Wealth Management Business Net revenues from one-time commissions for the third quarter of 2024 were RMB175.1 million (US$25.0 million), an 11.8% decrease from the corresponding period in 2023, primarily due to a decrease in distribution of domestic insurance products. Net revenues from recurring service fees for the third quarter of 2024 were RMB251.0 million (US$35.8 million), a 10.3% decrease from the corresponding period in 2023, primarily due to a decrease in recurring service fees from private secondary products and private equity products associated with the decrease in assets under management in mainland China. Net revenues from performance-based income for the third quarter of 2024 were RMB3.0 million (US$0.4 million), a 65.8% decrease from the corresponding period of 2023, primarily due to a decrease in performance-based income from private secondary products. Net revenues from other service fees for the third quarter of 2024 were RMB35.9 million (US$5.1 million), a 41.7% decrease from the corresponding period in 2023, primarily due to a decrease in the value-added services offered to high-net-worth clients. Asset Management Business Net revenues from recurring service fees for the third quarter of 2024 were RMB150.6 million (US$21.5 million), a 19.1% decrease from the corresponding period in 2023, primarily due to a decrease in recurring service fees generated from RMB private equity products. Net revenues from performance-based income for the third quarter of 2024 were RMB58.0 million (US$8.3 million), a substantial increase from the corresponding period in 2023, primarily due to an increase in performance-based income realized from offshore private equity products. Other Businesses Net revenues for the third quarter of 2024 were RMB9.8 million (US$1.4 million), remaining flat compared with the corresponding period in 2023.
Operating Costs and Expenses
Operating costs and expenses for the third quarter of 2024 were RMB442.9 million (US$63.1 million), an 11.6% decrease from the corresponding period in 2023. Operating costs and expenses primarily consisted of (i) compensation and benefits of RMB310.0 million (US$44.2 million); (ii) selling expenses of RMB65.9 million (US$9.4 million); (iii) general and administrative expenses of RMB72.3 million (US$10.3 million); (iv) provision for of credit losses of RMB5.4 million (US$0.8 million); and (v) other operating expenses of RMB12.9 million (US$1.8 million).
Operating costs and expenses for the wealth management business for the third quarter of 2024 were RMB326.1 million (US$46.5 million), a 17.3% decrease from the corresponding period in 2023, primarily due to decreases of 23.5% in compensation and benefits and 48.6% in selling expenses. Operating costs and expenses for the asset management business for the third quarter of 2024 were RMB86.4 million (US$12.3 million), a 1.8% increase from the corresponding period in 2023. Operating costs and expenses for other businesses for the third quarter of 2024 were RMB30.4 million (US$4.3 million), compared with RMB21.9 million from the corresponding period in 2023.
Operating Margin
Operating margin for the third quarter of 2024 was 35.2%, compared with 33.2% for the corresponding period in 2023.
Operating margin for the wealth management business for the third quarter of 2024 was 29.9%, compared with 28.2% for the corresponding period in 2023. Operating margin for the asset management business for the third quarter of 2024 was 58.6%, compared with 55.6% for the corresponding period in 2023. Loss from operation for other businesses for the third quarter of 2024 was RMB20.6 million (US$2.9 million), compared with an operating loss of RMB12.1 million for the corresponding period in 2023.
Interest Income
Interest income for the third quarter of 2024 was RMB28.4 million (US$4.0 million), a 34.6% decrease from the corresponding period in 2023.
Investment Income
Investment income for the third quarter of 2024 was RMB16.3 million (US$2.3 million), compared with RMB9.6 million for the corresponding period in 2023.
Income Tax Expenses
Income tax expenses for the third quarter of 2024 were RMB89.0 million (US$12.7 million), a 30.0% increase from the corresponding period in 2023, primarily due to an increase in income tax expenses associated with a dividend withholding tax for offshore dividend payments from PRC subsidiaries.
Net Income
Net Income Net income for the third quarter of 2024 was RMB137.8 million (US$19.6 million), a 40.6% decrease from the corresponding period in 2023. Net margin for the third quarter of 2024 was 20.2%, compared with 30.9% for the corresponding period in 2023. Net income attributable to Noah shareholders for the third quarter of 2024 was RMB134.4 million (US$19.2 million), a 42.4% decrease from the corresponding period in 2023. Net margin attributable to Noah shareholders for the third quarter of 2024 was 19.7%, compared with 31.1% for the corresponding period in 2023. Net income attributable to Noah shareholders per basic and diluted ADS for the third quarter of 2024 was RMB1.91 (US$0.27) and RMB1.91 (US$0.27), respectively, compared with RMB3.36 and RMB3.36 respectively, for the corresponding period in 2023. Non-GAAP Net Income Attributable to Noah Shareholders Non-GAAP net income attributable to Noah shareholders for the third quarter of 2024 was RMB150.5 million (US$21.4 million), a 35.2% decrease from the corresponding period in 2023. Non-GAAP net margin attributable to Noah shareholders for the third quarter of 2024 was 22.0%, compared with 31.0% for the corresponding period in 2023. Non-GAAP net income attributable to Noah shareholders per diluted ADS for the third quarter of 2024 was RMB2.14 (US$0.30), down from RMB3.35 for the corresponding period in 2023.
Balance Sheet and Cash Flow
As of September 30, 2024, the Company had RMB3,435.8 million (US$489.6 million) in cash and cash equivalents, compared with RMB4,604.9 million as of June 30, 2024 and RMB4,959.6 million as of September 30, 2023. The sequential decrease in cash and cash equivalents was primarily due to the payment of dividends in the amount of RMB1,007.9 million (US$143.6 million) to shareholders and a reclassification of a short-term time deposit in the amount of RMB252.7 million (US$36.0 million) from cash and cash equivalents to short-term investments.
Net cash inflow from the Company’s operating activities during the third quarter of 2024 was RMB237.2 million (US$33.8 million), mainly due to cash inflow generated from net income from operations.
Net cash outflow from the Company’s investing activities during the third quarter of 2024 was RMB53.7 million (US$7.7 million), mainly due to cash used for long-term investments.
Net cash outflow from the Company’s financing activities was RMB1,010.8 million (US$144.0 million) in the third quarter of 2024, primarily due to payment of the final dividend to the Company’s shareholders.
CONFERENCE CALL
The Company’s senior management will host an earnings conference call to discuss its Q3 Results and recent business activities. Details of the conference call are as follows:
Conference title: Noah Holdings 3Q24 Earnings Conference Call
Date/Time: Tuesday, November 26, 2024, at 7:00 p.m., U.S. Eastern Time
Wednesday, November 27, 2024, at 8:00 a.m., Hong Kong Time
Dial in:
– Hong Kong Toll Free:
800-963976
– United States Toll Free:
1-888-317-6003
– Mainland China Toll Free:
4001-206115
– International Toll:
1-412-317-6061
Participant Password:
5468333
A telephone replay will be available starting approximately one hour after the end of the conference until December 3, 2024 at 1-877-344-7529 (US Toll Free) and 1-412-317-0088 (International Toll) with the access code 6914431.
A live and archived webcast of the conference call will be available at the Company’s investor relations website under the "News & Events" section at http://ir.noahgroup.com.
DISCUSSION OF NON-GAAP MEASURES
In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company’s earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation and net of tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.
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 measures 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 the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company’s management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH and HKEX: 6686) is a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for mandarin-speaking high-net-worth investors. Noah’s American depositary shares, or ADSs, are listed on the New York Stock Exchange under the symbol "NOAH", and its shares are listed on the main board of the Hong Kong Stock Exchange under the stock code "6686." One ADS represents five ordinary shares, par value $0.00005 per share.
In the first nine months of 2024, Noah distributed RMB47.6 billion (US$6.8 billion) of investment products. Through Gopher Asset Management and Olive Asset Management, Noah had assets under management of RMB150.1 billion (US$21.4 billion) as of September 30, 2024.
Noah’s wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah’s network covers major cities in mainland China, as well as Hong Kong (China), New York, Silicon Valley, Singapore, and Los Angeles. The Company’s wealth management business had 460,380 registered clients as of September 30, 2024. Through Gopher Asset Management and Olive Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. The Company also operates other services.
For more information, please visit Noah at ir.noahgroup.com.
FOREIGN CURRENCY TRANSLATION
In this announcement, the unaudited financial results for the third quarter of 2024 ended September 30, 2024 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ 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 RMB7.0176 to US$1.00, the effective noon buying rate for September 30, 2024 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. 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 announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), 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. These statements include, but are not limited to, estimates regarding the sufficiency of Noah’s cash and cash equivalents and liquidity risk. 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 and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with investment products distributed to Noah’s investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; 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 industries 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 and the Hong Kong Stock Exchange. 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.
— FINANCIAL AND OPERATIONAL TABLES FOLLOW –
Noah Holdings Limited
Condensed Consolidated Balance Sheets
(unaudited)
As of
June 30,
September 30,
September 30,
2024
2024
2024
RMB’000
RMB’000
USD’000
Assets
Current assets:
Cash and cash equivalents
4,604,946
3,435,758
489,592
Restricted cash
4,574
5,786
824
Short-term investments
1,287,400
1,297,914
184,951
Accounts receivable, net
429,417
460,076
65,560
Amounts due from related parties
444,937
468,264
66,727
Loans receivable, net
207,122
179,089
25,520
Other current assets
226,332
246,451
35,120
Total current assets
7,204,728
6,093,338
868,294
Long-term investments, net
742,322
960,572
136,880
Investment in affiliates
1,445,356
1,404,501
200,140
Property and equipment, net
2,416,072
2,395,438
341,347
Operating lease right-of-use assets, net
102,301
121,435
17,304
Deferred tax assets
400,401
400,447
57,063
Other non-current assets
155,825
145,394
20,718
Total Assets
12,467,005
11,521,125
1,641,746
Liabilities and Equity
Current liabilities:
Accrued payroll and welfare expenses
346,543
270,282
38,515
Income tax payable
76,318
130,136
18,544
Deferred revenues
73,857
76,867
10,953
Dividend payable
1,018,000
–
–
Contingent liabilities
475,777
459,436
65,469
Other current liabilities
420,527
437,260
62,309
Total current liabilities
2,411,022
1,373,981
195,790
Deferred tax liabilities
245,609
243,466
34,694
Operating lease liabilities, non-current
55,043
77,652
11,065
Other non-current liabilities
24,980
22,985
3,275
Total Liabilities
2,736,654
1,718,084
244,824
Equity
9,730,351
9,803,041
1,396,922
Total Liabilities and Equity
12,467,005
11,521,125
1,641,746
Noah Holdings Limited
Condensed Consolidated Income Statements
(In RMB’000, except for ADS data, per ADS data and percentages)
(unaudited)
Three months ended
September 30,
September 30,
September 30,
Change
2023
2024
2024
Revenues:
RMB’000
RMB’000
USD’000
Revenues from others:
One-time commissions
199,286
170,023
24,228
(14.7 %)
Recurring service fees
171,408
166,138
23,674
(3.1 %)
Performance-based income
8,440
2,974
424
(64.8 %)
Other service fees
74,355
48,764
6,949
(34.4 %)
Total revenues from others
453,489
387,899
55,275
(14.5 %)
Revenues from funds Gopher manages:
One-time commissions
32
6,014
857
18693.8 %
Recurring service fees
295,982
236,638
33,721
(20.0 %)
Performance-based income
5,543
58,151
8,286
949.1 %
Total revenues from funds Gopher manages
301,557
300,803
42,864
(0.3 %)
Total revenues
755,046
688,702
98,139
(8.8 %)
Less: VAT related surcharges
(5,088)
(5,016)
(715)
(1.4 %)
Net revenues
749,958
683,686
97,424
(8.8 %)
Operating costs and expenses:
Compensation and benefits
Relationship managers
(185,748)
(137,082)
(19,534)
(26.2 %)
Others
(215,047)
(172,902)
(24,639)
(19.6 %)
Total compensation and benefits
(400,795)
(309,984)
(44,173)
(22.7 %)
Selling expenses
(119,707)
(65,939)
(9,396)
(44.9 %)
General and administrative expenses
(67,407)
(72,250)
(10,296)
7.2 %
Reversal of (Provision for) credit losses
525
(5,416)
(772)
N.A.
Other operating expenses
(18,982)
(12,859)
(1,832)
(32.3 %)
Government subsidies
105,297
23,576
3,360
(77.6 %)
Total operating costs and expenses
(501,069)
(442,872)
(63,109)
(11.6 %)
Income from operations
248,889
240,814
34,315
(3.2 %)
Other income:
Interest income
43,465
28,416
4,049
(34.6 %)
Investment income
9,640
16,334
2,328
69.4 %
Other income (expenses)
2,446
(43,577)
(6,210)
N.A.
Total other income
55,551
1,173
167
(97.9 %)
Income before taxes and income from equity in affiliates
304,440
241,987
34,482
(20.5 %)
Income tax expense
(68,499)
(89,036)
(12,688)
30.0 %
Loss from equity in affiliates
(3,897)
(15,184)
(2,164)
289.6 %
Net income
232,044
137,767
19,630
(40.6 %)
Less: net (loss) gain attributable to non-controlling interests
(1,282)
3,351
478
N.A.
Net income attributable to Noah shareholders
233,326
134,416
19,152
(42.4 %)
Income per ADS, basic
3.36
1.91
0.27
(43.2 %)
Income per ADS, diluted
3.36
1.91
0.27
(43.2 %)
Margin analysis:
Operating margin
33.2 %
35.2 %
35.2 %
Net margin
30.9 %
20.2 %
20.2 %
Weighted average ADS equivalent[1]:
Basic
69,472,282
70,334,784
70,334,784
Diluted
69,485,287
70,396,502
70,396,502
ADS equivalent outstanding at end of period
63,154,215
65,824,608
65,824,608
[1] Assumes all outstanding ordinary shares are represented by ADSs. Five ordinary share represents one ADS.
Noah Holdings Limited
Condensed Comprehensive Income Statements
(unaudited)
Three months ended
September 30,
September 30,
September 30,
Change
2023
2024
2024
RMB’000
RMB’000
USD’000
Net income
232,044
137,767
19,630
(40.6 %)
Other comprehensive income, net of tax:
Foreign currency translation adjustments
21,405
(92,022)
(13,113)
N.A.
Comprehensive income
253,449
45,745
6,517
(82.0 %)
Less: Comprehensive (loss) income attributable to non-controlling interests
(1,169)
4,822
687
N.A.
Comprehensive income attributable to Noah shareholders
254,618
40,923
5,830
(83.9 %)
Noah Holdings Limited
Supplemental Information
(unaudited)
As of
September 30, 2023
September 30, 2024
Change
Number of registered clients
452,222
460,380
1.8 %
Three months ended
September 30, 2023
September 30, 2024
Change
(in millions of RMB, except number of active clients and percentages)
Number of active clients
9,489
7,857
(17.2 %)
Transaction value:
Private equity products
693
1,070
54.3 %
Private secondary products
5,670
3,560
(37.2 %)
Mutual fund products
14,929
8,651
(42.1 %)
Other products
1,024
977
(4.5 %)
Total transaction value
22,316
14,258
(36.1 %)
Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
Three months ended September 30, 2024
Wealth ManagementBusiness
Asset ManagementBusiness
Other Businesses
Total
RMB’000
RMB’000
RMB’000
RMB’000
Revenues:
Revenues from others
One-time commissions
170,023
–
–
170,023
Recurring service fees
166,138
–
–
166,138
Performance-based income
2,974
–
–
2,974
Other service fees
36,087
–
12,677
48,764
Total revenues from others
375,222
–
12,677
387,899
Revenues from funds Gopher manages
One-time commissions
5,776
238
–
6,014
Recurring service fees
85,850
150,788
–
236,638
Performance-based income
50
58,101
–
58,151
Total revenues from funds Gopher manages
91,676
209,127
–
300,803
Total revenues
466,898
209,127
12,677
688,702
Less: VAT related surcharges
(1,881)
(208)
(2,927)
(5,016)
Net revenues
465,017
208,919
9,750
683,686
Operating costs and expenses:
Compensation and benefits
Relationship managers
(129,395)
(7,687)
–
(137,082)
Others
(118,388)
(47,556)
(6,958)
(172,902)
Total compensation and benefits
(247,783)
(55,243)
(6,958)
(309,984)
Selling expenses
(48,392)
(11,704)
(5,843)
(65,939)
General and administrative expenses
(45,766)
(17,500)
(8,984)
(72,250)
Provision for credit losses
(1,758)
(2,203)
(1,455)
(5,416)
Other operating expenses
(5,708)
(22)
(7,129)
(12,859)
Government subsidies
23,350
226
–
23,576
Total operating costs and expenses
(326,057)
(86,446)
(30,369)
(442,872)
Income (loss) from operations
138,960
122,473
(20,619)
240,814
Noah Holdings Limited
Segment Condensed Income Statements
(unaudited)
Three months ended September 30, 2023
Wealth ManagementBusiness
Asset ManagementBusiness
Other Businesses
Total
RMB’000
RMB’000
RMB’000
RMB’000
Revenues:
Revenues from others
One-time commissions
199,286
–
–
199,286
Recurring service fees
171,408
–
–
171,408
Performance-based income
8,440
–
–
8,440
Other service fees
61,915
–
12,440
74,355
Total revenues from others
441,049
–
12,440
453,489
Revenues from funds Gopher manages
One-time commissions
–
32
–
32
Recurring service fees
109,368
186,614
–
295,982
Performance-based income
405
5,138
–
5,543
Total revenues from funds Gopher manages
109,773
191,784
–
301,557
Total revenues
550,822
191,784
12,440
755,046
Less: VAT related surcharges
(2,074)
(389)
(2,625)
(5,088)
Net revenues
548,748
191,395
9,815
749,958
Operating costs and expenses:
Compensation and benefits
Relationship managers
(179,854)
(5,894)
–
(185,748)
Others
(144,256)
(64,041)
(6,750)
(215,047)
Total compensation and benefits
(324,110)
(69,935)
(6,750)
(400,795)
Selling expenses
(94,088)
(18,723)
(6,896)
(119,707)
General and administrative expenses
(53,401)
(9,217)
(4,789)
(67,407)
(Provision for) reversal of credit losses
(894)
(400)
1,819
525
Other operating expenses
(11,677)
(298)
(7,007)
(18,982)
Government subsidies
89,925
13,656
1,716
105,297
Total operating costs and expenses
(394,245)
(84,917)
(21,907)
(501,069)
Income (loss) from operations
154,503
106,478
(12,092)
248,889
Noah Holdings Limited
Supplement Revenue Information by Geography
(unaudited)
Three months ended September 30, 2024
Wealth ManagementBusiness
Asset ManagementBusiness
Other Businesses
Total
RMB’000
RMB’000
RMB’000
RMB’000
Revenues:
Mainland China
225,569
73,589
12,677
311,835
Overseas
241,329
135,538
–
376,867
Total revenues
466,898
209,127
12,677
688,702
Three months ended September 30, 2023
Wealth ManagementBusiness
Asset ManagementBusiness
Other Businesses
Total
RMB’000
RMB’000
RMB’000
RMB’000
Revenues:
Mainland China
333,911
116,355
12,440
462,706
Overseas
216,911
75,429
–
292,340
Total revenues
550,822
191,784
12,440
755,046
Noah Holdings Limited
Supplement Revenue Information by Product Types
(unaudited)
Three months ended
September 30, 2023
September 30, 2024
Change
(in thousands of RMB, except percentages)
Mainland China:
Public securities products [1]
137,967
108,038
(21.7 %)
Private equity products
218,502
180,636
(17.3 %)
Insurance products
85,445
8,617
(89.9 %)
Others
20,792
14,544
(30.1 %)
Subtotal
462,706
311,835
(32.6 %)
Overseas:
Investment products [2]
134,209
191,200
42.5 %
Insurance products
101,754
144,942
42.4 %
Online business [3]
2,706
7,865
190.7 %
Others
53,671
32,860
(38.8 %)
Subtotal
292,340
376,867
28.9 %
Total revenues
755,046
688,702
(8.8 %)
[1] Includes mutual funds and private secondary products.
[2] Includes non-money market mutual fund products, discretionary products, private secondary products, private equity products, real estate products and private credit products.
[3] Includes money market mutual fund products, securities brokerage business.
Noah Holdings Limited
Supplement Information of Overseas Business
(unaudited)
Three months ended
September 30, 2023
September 30, 2024
Change
Net Revenues from Overseas (RMB, million)
292.3
376.9
28.9 %
Number of Overseas Registered Clients
14,296
17,287
20.9 %
Number of Overseas Active Clients
2,284
3,139
37.4 %
Transaction Value of Overseas Investment Products (RMB, billion)
7.0
7.8
11.4 %
Number of Overseas Relationship Managers
77
146
89.6 %
Overseas Assets Under Management (RMB, billion)
35.4
39.5
11.6 %
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
2023
2024
RMB’000
RMB’000
Net income attributable to Noah shareholders
233,326
134,416
(42.4 %)
Adjustment for share-based compensation
(1,161)
19,846
N.A.
Less: tax effect of adjustments
(281)
3,745
N.A.
Adjusted net income attributable to Noah shareholders (non-GAAP)
232,446
150,517
(35.2 %)
Net margin attributable to Noah shareholders
31.1 %
19.7 %
Non-GAAP net margin attributable to Noah shareholders
31.0 %
22.0 %
Net income attributable to Noah shareholders per ADS, diluted
3.36
1.91
(43.2 %)
Non-GAAP net income attributable to Noah shareholders per ADS, diluted
3.35
2.14
(36.1 %)
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