Noah Holdings Limited Announces Unaudited Financial Results for the Second Quarter of 2016
SHANGHAI, Aug. 15, 2016 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth and asset management service provider with a focus on global services for high net worth individuals and enterprises in China, today announced its unaudited financial results for the second quarter of 2016.
Starting from the fourth quarter of 2015, the Company changed its reporting currency from the U.S. dollar ("US$") to the Renminbi ("RMB"). The change in reporting currency is to better reflect the Company's performance, as the majority of the Company's operations are conducted in RMB, to align the Company's reporting currency with its underlying operations and to reduce the impact that the increased volatility of the RMB to US$ exchange rate will have on the Company's reported operating results. This release contains translations of certain RMB amounts into US$ for convenience purpose only[1]. Prior period numbers have been recast into the new reporting currency.
SECOND QUARTER 2016 FINANCIAL HIGHLIGHTS
- Net revenues in the second quarter of 2016 were RMB651.7 million (US$98.1 million), a 12.8% increase from the corresponding period in 2015.
| (RMB millions, except percentages) |
Q2 |
Q2 2015 Segment % |
Q2 |
Q2 2016 |
YoY |
||||
| Wealth management |
450.9 |
78.0% |
505.2 |
77.5% |
12.0% |
||||
| Asset management |
109.7 |
19.0% |
135.2 |
20.7% |
23.2% |
||||
| Internet finance |
17.2 |
3.0% |
11.3 |
1.7% |
(34.3%) |
||||
| Total net revenues |
577.9 |
100.0% |
651.7 |
100.0% |
12.8% |
- Income from operations in the second quarter of 2016 was RMB194.1million (US$29.2 million), a 0.4% increase from the corresponding period in 2015.
| (RMB millions, except percentages) |
Q2 |
Q2 2015 Segment % |
Q2 |
Q2 2016 |
YoY |
||||
| Wealth management |
169.5 |
87.6% |
167.4 |
86.2% |
(1.2%) |
||||
| Asset management |
55.8 |
28.8% |
68.8 |
35.4% |
23.4% |
||||
| Internet finance |
(31.8) |
(16.5%) |
(42.1) |
(21.7%) |
32.2% |
||||
| Total income from |
193.4 |
100.0% |
194.1 |
100.0% |
0.4% |
- Net income attributable to Noah shareholders in the second quarter of 2016 was RMB182.3 million (US$27.4 million), a 7.6% increase from the corresponding period in 2015.
- Non-GAAP[2] net income attributable to Noah shareholders in the second quarter of 2016 was RMB197.9 million (US$29.8 million), a 3.3% increase from the corresponding period in 2015.
| [1] Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.6459 to US$1.00, the effective noon buying rate for June 30, 2016 as set forth in the H.10 statistical release of the Federal Reserve Board. |
| [2] 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. |
SECOND QUARTER 2016 OPERATIONAL UPDATES
Wealth Management Business
The Company's wealth management business provides global wealth investment and asset allocation services to high net worth individuals and enterprise clients in China.
- The total number of registered clients as of June 30, 2016 was 114,870, a 40.2% increase from June 30, 2015, consisting of 111,643 registered individual clients, 3,108 registered enterprise clients and 119 wholesale clients that have entered into cooperation agreements with the Company.
- Total number of active clients[3] during the second quarter of 2016 was 4,927, a 9.0% decrease from the corresponding period in 2015, and a 0.4% decrease from the first quarter of 2016.
- The aggregate value of wealth management products distributed by the Company during the second quarter of 2016 was RMB27.7 billion (US$4.2 billion), a 2.0% decrease from the corresponding period in 2015, and an 11.8% increase from the first quarter of 2016.
| Product type |
Three months ended June 30, |
|||
| 2015 |
2016 |
|||
| (RMB in billions, except percentages) |
||||
| Fixed income products |
5.7 |
20.3% |
17.0 |
61.2% |
| Private equity products |
9.9 |
34.9% |
7.6 |
27.3% |
| Secondary market equity fund products |
12.6 |
44.7% |
2.8 |
10.1% |
| Other products |
0.0 |
0.2% |
0.4 |
1.4% |
| All products |
28.3 |
100.0% |
27.7 |
100.0% |
- The average transaction value per client[4] in the second quarter of 2016 was RMB5.6 million (US$0.8 million), a 7.7% increase from the corresponding period in 2015, reflecting a change in product mix.
- The coverage network included 175 branches and sub-branches covering 68 cities as of June 30, 2016, up from 166 branches and sub-branches covering 68 cities as of March 31, 2016, and 112 branches and sub-branches covering 64 cities as of June 30, 2015.
- The number of relationship managers was 1,093 as of June 30, 2016, up from 953 as of June 30, 2015, and down from 1,137 as of March 31, 2016.
| [3] "Active clients" refers to registered clients who purchased wealth management products distributed by Noah during the period specified. |
| [4] "Average transaction value per client" refers to the average value of wealth management products distributed by Noah that were purchased by active clients during the period specified. |
Asset Management Business
The Company's asset management business develops and manages financial products denominated in both domestic (RMB) and foreign currencies. These financial products include real estate funds and funds of funds, including private equity funds, real estate funds, hedge funds and fixed income funds.
- The total assets under management as of June 30, 2016 were RMB101.2 billion (US$15.2 billion), a 57.0% increase from June 30, 2015 and a 6.9% increase from March 31, 2016.
| Product type |
As of March 31, |
Asset |
Asset |
As of June 30, |
||
| (RMB billions, except percentages) |
||||||
| Real estate funds and real |
27.4 |
28.9% |
8.0 |
13.7 |
21.6 |
21.4% |
| Private equity funds of funds |
44.4 |
46.9% |
6.8 |
0.8 |
50.4 |
49.8% |
| Secondary market equity funds |
10.0 |
10.6% |
1.4 |
0.9 |
10.6 |
10.5% |
| Other fixed income funds of |
12.8 |
13.6% |
6.5 |
0.8 |
18.5 |
18.3% |
| All products |
94.6 |
100.0% |
22.8 |
16.2 |
101.2 |
100.0% |
Internet Finance Business
The Company's internet finance business provides financial products and services through a proprietary internet finance platform targeting aspiring high net worth individuals in China.
- The aggregate value of financial products distributed by the Company through its internet finance platform in the second quarter of 2016 was RMB5.8 billion (US$874.6 million), a 72.4% increase from the second quarter of 2015.
- Total number of enterprise clients as of June 30, 2016 was 651, up from 354 and 645 as of June 30, 2015 and March 31, 2016, respectively.
- Total number of individual clients as of June 30, 2016 was 324,267, up from 131,985 and 294,151 as of June 30, 2015 and March 31, 2016, respectively.
Mr. Kenny Lam, Group President of Noah, commented, "In the context of a challenging macro environment in our home market, volatile capital markets, and heightened risk aversion among investors, we are pleased to have delivered steady results in the second quarter. This sustained performance was due primarily to our continuous efforts in product and service differentiation and innovation. The current environment does present strong headwinds but we will continue to invest in building a leading wealth and asset management platform both in China and globally. We are focused on long-term sustainable growth and are very excited about our long-term prospects."
SECOND QUARTER 2016 FINANCIAL RESULTS
Net Revenues
Net revenues for the second quarter of 2016 were RMB651.7 million (US$98.1 million), a 12.8% increase from the corresponding period in 2015, primarily due to increases in one-time commissions and recurring service fees.
- Wealth Management Business
- Net revenues from one-time commissions for the second quarter of 2016 were RMB291.9 million (US$43.9 million), a 31.6% increase from the corresponding period in 2015. The increase was primarily due to the change in the product mix.
- Net revenues from recurring service fees for the second quarter of 2016 were RMB194.7 million (US$29.3 million), a 25.4% increase from the corresponding period in 2015. The increase was mainly due to the cumulative effect of financial products with recurring service fees previously distributed by the Company.
- Net revenues from performance-based income for the second quarter of 2016 were RMB0.1 million (US$20.9 thousand), compared to RMB64.4 million in the corresponding period in 2015, mainly due to a decrease in performance-based income from secondary market products compared to the corresponding period in 2015.
- Net revenues from other service fees for the second quarter of 2016 were RMB18.4 million (US$2.8 million), compared with RMB9.4 million in the corresponding period of 2015.
- Asset Management Business
- Net revenues from recurring service fees for the second quarter of 2016 were RMB109.7 million (US$16.5 million), a 35.9% increase from the corresponding period in 2015. The increase was primarily due to the increase in assets under management by the Company.
- Net revenues from performance-based income for the second quarter of 2016 were RMB23.6 million (US$3.6 million), a 17.1% decrease compared with the corresponding period in 2015, mainly due to a decrease in performance-based income from secondary market products compared to the corresponding period in 2015.
- Internet Finance Business
- Net revenues for the second quarter of 2016 were RMB11.3 million (US$1.7 million), a 34.3% decrease from the corresponding period in 2015, primarily due to the Company's internet finance business' strategic change to focus more on standardized wealth management products.
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 2016 were RMB457.6 million (US$68.9 million), a 19.0% increase from the corresponding period in 2015. The increase was mainly driven by growth in compensation and benefits, increased rental and related expenses associated with the new head office building which was put into use in the first quarter of 2016 and increased marketing expenses.
- Wealth Management Business
Operating costs and expenses for the second quarter of 2016 were RMB337.8 million (US$50.8 million), a 20.0% increase from the corresponding period in 2015.
- Compensation and benefits includes compensation for relationship managers and back-office employees. Compensation and benefits for the second quarter of 2016 were RMB251.6 million (US$37.9 million), a 10.4% increase from the corresponding period in 2015. In the second quarter of 2016, relationship manager compensation increased by 7.2% from the corresponding period in 2015, primarily driven by an increase in the number of relationship managers and a change of product mix. Other compensation for the second quarter of 2016 increased by 15.0% from the corresponding period in 2015, primarily driven by an increase in the number of back-office employees.
- Selling expenses for the second quarter of 2016 were RMB67.4 million (US$10.1 million), a 51.0% increase from the corresponding period in 2015, primarily due to an increase in rental expenses and client marketing initiatives.
- General and administrative expenses for the second quarter of 2016 were RMB31.9 million (US$4.8million), a 98.9% increase from the corresponding period in 2015, mainly due to an increase in depreciation, consulting fees and training costs.
- Other operating expenses, which include other costs incurred directly in relation to the Company's revenues, for the second quarter of 2016 were RMB21.1 million (US$3.2 million), an increase of 273.1% from the corresponding period in 2015. The increase was primarily due to the growth of other businesses within the wealth management segment.
- Government subsidies represent cash subsidies received from local governments for general corporate purposes. The Company received RMB34.2 million (US$5.1 million) in government subsidies for the wealth management business in the second quarter of 2016, compared to RMB12.8 million in the corresponding period of 2015.
- Asset Management Business
Operating costs and expenses for the second quarter of 2016 included compensation and benefits and operation expenses of RMB66.4 million (US$10.0 million), a 23.1% increase from the corresponding period in 2015.
- Compensation and benefits include compensation of managers of institutional client relationships, fund managers and back-office employees. Compensation and benefits for the second quarter of 2016 were RMB44.0 million (US$6.6 million), a 12.4% decrease from the corresponding period in 2015. The decrease was primarily due to a decrease in performance fee compensation related to performance-based income.
- Selling expenses for the second quarter of 2016 were RMB4.4 million (US$0.7 million), compared with RMB4.7 million in the corresponding period of 2015, representing a decrease of 5.6% year over year.
- General and administrative expenses for the second quarter of 2016 were RMB18.4 million (US$2.8 million), a 101.1% increase from the corresponding period in 2015, primarily due to increased conference fees.
- Government subsidies represent cash subsidies received from local governments for general corporate purposes. The Company received RMB2.0 million (US$0.3 million) in government subsidies for the asset management business in the second quarter of 2016, compared to RMB15.9 million in the corresponding period in 2015
- Internet Finance Business
Operating costs and expenses for the second quarter of 2016 were RMB53.4 million (US$8.0 million), a 8.8% increase from the corresponding period in 2015, and represented the Company's expenses in human resources, marketing and internet infrastructure, as well as expenses incurred in promoting the Company's internet finance business. Operating costs and expenses for the second quarter of 2016 primarily consisted of compensation and benefits of RMB32.6 million (US$4.9 million), selling expenses of RMB6.5 million (US$1.0 million), general and administrative expenses of RMB8.0 million (US$1.2 million) and other operating expenses of RMB6.4 million (US$1.0 million).
Operating Margin
Operating margin for the second quarter of 2016 was 29.8% compared to 33.5% for the corresponding period in 2015.
- Wealth Management Business
Operating margin for the second quarter of 2016 was 33.1%, compared to 37.6% for the corresponding period in 2015 and 28.7% in the first quarter of 2016. The year-on-year decrease was mainly because operating costs and expenses grew faster than net revenues in the second quarter of 2016, as compared to the second quarter of 2015.
- Asset Management Business
Operating margin for the second quarter of 2016 was 50.9%, flat compared to the corresponding period in 2015.
- Internet Finance Business
Operating loss for the second quarter of 2016 was RMB42.1 million (US$6.3 million) compared to RMB31.8 million for the corresponding period of the prior year and RMB52.5 million in the first quarter of 2016.
Income Tax Expenses
Income tax expenses for the second quarter of 2016 were RMB48.5 million (US$7.3 million), a 5.5% increase from the corresponding period in 2015, in line with the year-over-year growth in taxable income.
Net Income
- Net Income
- Net income attributable to Noah shareholders for the second quarter of 2016 was RMB182.3 million (US$27.4 million), a 7.6% increase from the corresponding period in 2015.
- Net margin for the second quarter of 2016 was 27.0%, compared to 29.6% for the corresponding period in 2015.
- Net income per basic and diluted ADS for the second quarter of 2016 was RMB3.24 (US$0.49) and RMB3.10 (US$0.47), respectively, compared to RMB3.01 and RMB2.87, respectively, for the corresponding period in 2015.
- Non-GAAP Net Income Attributable to Noah Shareholders
- Non-GAAP net income attributable to Noah shareholders for the second quarter of 2016 was RMB197.9 million (US$29.8 million), a 3.3% increase from the corresponding period in 2015.
- Non-GAAP net margin for the second quarter of 2016 was 29.4%, compared to 33.5% for the corresponding period in 2015.
- Non-GAAP net income per diluted ADS for the second quarter of 2016 was RMB3.37 (US$0.51), compared to RMB3.24 for the corresponding period in 2015.
Balance Sheet and Cash Flow
As of June 30, 2016, the Company had RMB1,398.9 million (US$210.5 million) in cash and cash equivalents, compared to RMB1,561.7 million as of June 30, 2015 and RMB2,480.3 million as of March 31, 2016.
Cash outflow from the Company's operating activities during the second quarter of 2016 was RMB750.0 million (US$112.9 million).The decrease was mainly due to the temporary impact of other current assets and liabilities.
Cash outflow from the Company's investing activities during the second quarter of 2016 was RMB550.5 million (US$82.8 million), primarily due to an increase in investments in affiliates and the temporary impact of amounts due from related parties.
Cash inflow from the Company's financing activities for the second quarter of 2016 was RMB197.8 million (US$29.8 million), primarily due to the impact of other current liabilities.
2016 FORECAST
The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2016 will be in the range of RMB690 million to RMB720 million, an increase of 14.4% to 19.4% compared to the full year 2015. This estimate reflects management's current business outlook and is subject to change.
CONFERENCE CALL
Senior management will host a combined English and Chinese language conference call to discuss the Company's second quarter 2016 unaudited financial results and recent business activities.
The conference calls may be accessed with the following details:
|
Conference call details |
|
| Date/Time
|
Monday, August 15, 2016 at 8:00 p.m., U.S. Eastern Time Tuesday, August 16, 2016 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 2016 Earnings Call |
| Participant Password |
Noah Holdings |
A telephone replay will be available starting one hour after the end of the conference call until August 22, 2016 at +1-877-344-7529 (US Toll Free) or +1-412-317-0088 (International Toll). The replay access code is 10090864.
A live and archived webcast of the conference call will be available at Noah's investor relations website under the News & Events section at http://ir.noahwm.com.
DISCUSSION OF NON-GAAP FINANCIAL MEASURES:
In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures that exclude the effects of all forms of share-based compensation. The reconciliation of these non-GAAP financial measures to the nearest GAAP measures is set forth in the table captioned "Reconciliation of GAAP to Non-GAAP Results" below.
The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measure used by the Company may be prepared differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
When evaluating the Company's operating performance in the periods presented, management reviewed non-GAAP net income results reflecting adjustments to exclude the 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, non-GAAP income per diluted ADS and non-GAAP net margin provides important supplemental information to investors regarding financial and business trends relating to the Company's financial condition and results of operations in a manner consistent with that used by management. Pursuant to U.S. GAAP, the Company recognized significant amounts of expenses for the restricted shares and share options in the periods presented. The Company utilized the non-GAAP financial results to make financial results comparable period to period and to better understand its historical business operations.
ABOUT NOAH HOLDINGS LIMITED
Founded in 2005, Noah Holdings Limited (NYSE: NOAH) is a leading wealth and asset management services provider with a focus on global services for high net worth individuals and enterprises in China. In the second quarter of 2016, Noah distributed over RMB27.7 billion (US$4.2 billion) of wealth management products. As of June 30, 2016, Noah had assets under management of RMB101.2 billion (US$15.2 billion).
Noah distributes a wide array of wealth management products, including fixed income products, private equity fund products, mutual fund products and insurance products. Noah also develops and manages financial products denominated in both domestic (RMB) and foreign currencies, including real estate funds and real estate funds of funds, private equity funds of funds, secondary market equity funds of funds and fixed income funds of funds through Gopher Asset Management. In addition, in 2014, the Company launched a proprietary internet finance platform to provide financial products and services to aspiring high net worth individuals and enterprise clients in China. Noah delivers customized financial solutions to clients through a network of 1,093 relationship managers across 175 branches and sub-branches in 68 cities in China, and serves the international investment needs of its clients through a wholly owned subsidiary in Hong Kong. The Company's wealth management business had 114,870 registered clients as of June 30, 2016.
For more information please visit Noah at ir.noahwm.com.
FOREIGN CURRENCY TRANSLATION
Effective October 1, 2015, the Company changed its reporting currency from U.S. dollars ("US$") to Chinese Renminbi ("RMB"). The change in reporting currency is to better reflect the Company's performance, as the majority of the Company's operations are conducted in RMB, to align the Company's reporting currency with its underlying operations and to reduce the impact that the increased volatility of the RMB to US$ exchange rate will have on the Company's reported operating results. Prior to October 1, 2015, the Company reported its annual and quarterly consolidated balance sheets and consolidated statements of income and comprehensive income and shareholder's equity and cash flows in US$. In this announcement, the unaudited financial results for the quarter ended June 30, 2016 are stated in RMB. The related financial statements prior to October 1, 2015 have been recast to reflect RMB as the reporting currency for comparison to the financial results for the quarter ended June 30, 2016.
This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.6459 to US$1.00, the effective noon buying rate for June 30, 2016 as set forth in the H.10 statistical release of the Federal Reserve Board.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the outlook for 2016 and quotations from management in this announcement, as well as Noah's strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industry; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industry in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.
Contacts:
Noah Holdings Limited
Steve Zeng
Noah Holdings Limited
Tel: +86-21-8035-9221
[email protected]
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
| Noah Holdings Limited |
||||||||||||||
| Condensed Consolidated Balance Sheets |
||||||||||||||
| (In RMB) |
||||||||||||||
| (unaudited) |
||||||||||||||
| As of |
||||||||||||||
| March 31, 2016 |
June 30, 2016 |
June 30, 2016 |
||||||||||||
| RMB |
RMB |
USD |
||||||||||||
| Assets |
||||||||||||||
| Current assets: |
||||||||||||||
| Cash and cash equivalents |
2,480,303,362 |
1,398,912,715 |
210,492,592 |
|||||||||||
| Restricted cash |
1,000,000 |
1,000,000 |
150,469 |
|||||||||||
| Short-term investments |
594,827,536 |
619,235,058 |
93,175,500 |
|||||||||||
| Accounts receivable, net of allowance for |
158,429,494 |
177,944,949 |
26,775,147 |
|||||||||||
| Loans receivable |
140,904,788 |
135,277,584 |
20,355,044 |
|||||||||||
| Amounts due from related parties |
290,000,245 |
625,554,748 |
94,126,416 |
|||||||||||
| Other current assets |
174,747,211 |
823,292,955 |
123,879,829 |
|||||||||||
| Total current assets |
3,840,212,636 |
3,781,218,009 |
568,954,996 |
|||||||||||
| Long-term investments |
412,329,808 |
300,365,549 |
45,195,617 |
|||||||||||
| Investment in affiliates |
385,289,302 |
479,367,925 |
72,129,873 |
|||||||||||
| Property and equipment, net |
210,713,490 |
214,012,805 |
32,202,231 |
|||||||||||
| Non-current deferred tax assets |
43,720,740 |
43,693,665 |
6,574,529 |
|||||||||||
| Other non-current assets |
34,390,714 |
38,001,361 |
5,718,016 |
|||||||||||
| Total Assets |
4,926,656,690 |
4,856,659,314 |
730,775,262 |
|||||||||||
| Liabilities and Equity |
||||||||||||||
| Current liabilities: |
||||||||||||||
| Accrued payroll and welfare expenses |
323,473,235 |
411,009,653 |
61,844,092 |
|||||||||||
| Income tax payable |
86,414,268 |
54,410,981 |
8,187,150 |
|||||||||||
| Amounts due to related parties |
1,060 |
1,060 |
159 |
|||||||||||
| Deferred revenues |
124,322,025 |
68,069,246 |
10,242,292 |
|||||||||||
| Deferred tax liabilities |
1,239,554 |
1,696,765 |
255,310 |
|||||||||||
| Other current liabilities |
1,045,695,407 |
756,454,329 |
113,822,707 |
|||||||||||
| Total current liabilities |
1,581,145,549 |
1,291,642,034 |
194,351,711 |
|||||||||||
| Non-current uncertain tax position liabilities |
67,248 |
- |
- |
|||||||||||
| Convertible notes |
515,840,000 |
531,672,000 |
80,000,000 |
|||||||||||
| Other non-current liabilities |
84,752,980 |
97,410,830 |
14,657,282 |
|||||||||||
| Total Liabilities |
2,181,805,777 |
1,920,724,864 |
289,008,993 |
|||||||||||
| Equity |
2,744,850,913 |
2,935,934,450 |
441,766,269 |
|||||||||||
| Total Liabilities and Equity |
4,926,656,690 |
4,856,659,314 |
730,775,262 |
|||||||||||
| Noah Holdings Limited |
|||||||||||||
| Condensed Consolidated Income Statements |
|||||||||||||
| (In RMB, except for ADS data, per ADS data and percentages) |
|||||||||||||
| (unaudited) |
|||||||||||||
| Three months ended |
|||||||||||||
| June 30, |
June 30, |
June 30, |
Change |
||||||||||
| 2015 |
2016 |
2016 |
|||||||||||
| Revenues: |
RMB |
RMB |
USD |
||||||||||
| Third-party revenues |
|||||||||||||
| One-time commissions[5] |
104,371,558 |
209,490,198 |
31,521,720 |
100.7% |
|||||||||
| Recurring service fees |
98,229,792 |
127,815,164 |
19,232,183 |
30.1% |
|||||||||
| Performance-based income |
95,669,020 |
817,307 |
122,979 |
(99.1%) |
|||||||||
| Other service fees |
28,085,776 |
29,681,569 |
4,466,147 |
5.7% |
|||||||||
| Total third-party revenues |
326,356,146 |
367,804,238 |
55,343,029 |
12.7% |
|||||||||
| Related party revenues |
|||||||||||||
| One-time commissions5 |
129,924,861 |
89,970,664 |
13,537,770 |
(30.8%) |
|||||||||
| Recurring service fees |
150,511,712 |
182,165,855 |
27,410,261 |
21.0% |
|||||||||
| Performance-based income |
2,243,237 |
23,316,750 |
3,508,441 |
939.4% |
|||||||||
| Other service fees |
25,364 |
744,748 |
112,061 |
2836.2% |
|||||||||
| Total related party revenues |
282,705,174 |
296,198,017 |
44,568,534 |
4.8% |
|||||||||
| Total revenues |
609,061,320 |
664,002,255 |
99,911,563 |
9.0% |
|||||||||
| Less: business taxes and related |
(31,183,765) |
(12,277,297) |
(1,847,349) |
(60.6%) |
|||||||||
| Net revenues |
577,877,555 |
651,724,958 |
98,064,214 |
12.8% |
|||||||||
| Operating costs and expenses: |
|||||||||||||
| Compensation and benefits |
|||||||||||||
| Relationship manager compensation |
(142,363,113) |
(147,103,056) |
(22,134,407) |
3.3% |
|||||||||
| Performance fee compensation |
(7,200,000) |
(4,798,507) |
(722,025) |
(33.4%) |
|||||||||
| Other Compensations |
(157,002,659) |
(176,245,129) |
(26,519,377) |
12.3% |
|||||||||
| Total compensation and benefits |
(306,565,772) |
(328,146,692) |
(49,375,809) |
7.0% |
|||||||||
| Selling expenses |
(54,505,170) |
(78,248,146) |
(11,773,898) |
43.6% |
|||||||||
| General and administrative expenses |
(31,448,235) |
(58,250,809) |
(8,764,924) |
85.2% |
|||||||||
| Other operating expenses |
(20,673,257) |
(29,158,009) |
(4,387,368) |
41.0% |
|||||||||
| Government subsidies |
28,737,436 |
36,183,227 |
5,444,443 |
25.9% |
|||||||||
| Total operating costs and expenses |
(384,454,998) |
(457,620,429) |
(68,857,556) |
19.0% |
|||||||||
| Income from operations |
193,422,557 |
194,104,529 |
29,206,658 |
0.4% |
|||||||||
| Other income: |
|||||||||||||
| Interest income |
8,989,185 |
11,093,668 |
1,669,250 |
23.4% |
|||||||||
| Interest expenses |
(4,031,144) |
(4,861,995) |
(731,578) |
20.6% |
|||||||||
| Investment income |
12,484,724 |
17,074,328 |
2,569,152 |
36.8% |
|||||||||
| Other income (expense) |
193,259 |
(2,067,157) |
(311,042) |
(1169.6%) |
|||||||||
| Total other income |
17,636,024 |
21,238,844 |
3,195,781 |
20.4% |
|||||||||
| Income before taxes and loss from equity |
211,058,581 |
215,343,373 |
32,402,440 |
2.0% |
|||||||||
| Income tax expense |
(45,934,769) |
(48,470,810) |
(7,293,340) |
5.5% |
|||||||||
| Income from equity in affiliates |
5,857,184 |
9,160,758 |
1,378,407 |
56.4% |
|||||||||
| Net income |
170,980,996 |
176,033,321 |
26,487,507 |
3.0% |
|||||||||
| Less: net loss attributable to non- |
1,630,163 |
(6,221,769) |
(936,182) |
(481.7%) |
|||||||||
| Net income attributable to Noah |
169,350,833 |
182,255,090 |
27,423,688 |
7.6% |
|||||||||
| Income per ADS, basic |
3.01 |
3.24 |
0.49 |
7.6% |
|||||||||
| Income per ADS, diluted |
2.87 |
3.10 |
0.47 |
8.0% |
|||||||||
| Margin analysis: |
|||||||||||||
| Operating margin |
33.5% |
29.8% |
29.8% |
||||||||||
| Net margin |
29.6% |
27.0% |
27.0% |
||||||||||
| Weighted average ADS equivalent: [1] |
|||||||||||||
| Basic |
56,248,968 |
56,271,504 |
56,271,504 |
||||||||||
| Diluted |
60,565,019 |
60,174,258 |
60,174,258 |
||||||||||
| ADS equivalent outstanding at end of |
56,313,035 |
56,346,740 |
56,346,740 |
||||||||||
| [1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs |
|||||||||||||
| [5] To realign the Company's services provided under different business segments, starting from the first quarter of 2016, the Company reclassifies some of the revenues under "other service fees" to "one-time commissions". Presentation of prior periods has been reclassified to reflect the same criteria. |
|||||||||||||
| Noah Holdings Limited |
|||||||||||
| Condensed Consolidated Income Statements |
|||||||||||
| (In RMB, except for ADS data, per ADS data and percentages) |
|||||||||||
| (unaudited) |
|||||||||||
| Six months ended |
|||||||||||
| June 30, |
June 30, |
June 30, |
Change |
||||||||
| 2015 |
2016 |
2016 |
|||||||||
| Revenues: |
RMB |
RMB |
USD |
||||||||
| Third-party revenues |
|||||||||||
| One-time commissions[6] |
229,358,071 |
437,581,851 |
66,895,736 |
90.8% |
|||||||
| Recurring service fees |
177,284,717 |
234,846,946 |
35,831,405 |
32.5% |
|||||||
| Performance-based income |
122,030,661 |
10,469,142 |
1,619,852 |
(91.4%) |
|||||||
| Other service fees |
42,546,132 |
49,712,352 |
7,572,658 |
16.8% |
|||||||
| Total third-party revenues |
571,219,581 |
732,610,291 |
111,919,650 |
28.3% |
|||||||
| Related party revenues |
|||||||||||
| One-time commissions[5] |
207,249,994 |
150,549,671 |
22,932,777 |
(27.4%) |
|||||||
| Recurring service fees |
298,648,588 |
384,431,697 |
58,779,033 |
28.7% |
|||||||
| Performance-based income |
2,243,237 |
30,314,701 |
4,593,731 |
1251.4% |
|||||||
| Other service fees |
166,123 |
1,364,101 |
208,115 |
721.1% |
|||||||
| Total related party revenues |
508,307,942 |
566,660,170 |
86,513,657 |
11.5% |
|||||||
| Total revenues |
1,079,527,523 |
1,299,270,461 |
198,433,307 |
20.4% |
|||||||
| Less: business taxes and related |
(53,999,374) |
(40,387,911) |
(6,206,936) |
(25.2%) |
|||||||
| Net revenues |
1,025,528,149 |
1,258,882,550 |
192,226,372 |
22.8% |
|||||||
| Operating costs and expenses: |
|||||||||||
| Compensation and benefits |
|||||||||||
| Relationship manager compensation |
(242,210,536) |
(282,697,761) |
(43,163,362) |
16.7% |
|||||||
| Performance fee compensation |
(12,566,169) |
(8,145,016) |
(1,241,025) |
(35.2%) |
|||||||
| Other Compensations |
(271,785,221) |
(350,649,838) |
(53,567,254) |
29.0% |
|||||||
| Total compensation and benefits |
(526,561,926) |
(641,492,615) |
(97,971,641) |
21.8% |
|||||||
| Selling expenses |
(98,057,375) |
(146,150,179) |
(22,304,610) |
49.0% |
|||||||
| General and administrative expenses |
(66,831,559) |
(108,464,470) |
(16,552,402) |
62.3% |
|||||||
| Other operating expenses |
(27,371,801) |
(46,456,105) |
(7,070,075) |
69.7% |
|||||||
| Government subsidies |
28,737,436 |
105,124,789 |
16,136,373 |
265.8% |
|||||||
| Total operating costs and expenses |
(690,085,225) |
(837,438,580) |
(127,762,356) |
21.4% |
|||||||
| Income from operations |
335,442,924 |
421,443,970 |
64,464,015 |
25.6% |
|||||||
| Other income: |
|||||||||||
| Interest income |
17,778,002 |
19,771,364 |
3,015,047 |
11.2% |
|||||||
| Interest expenses |
(7,089,484) |
(9,526,884) |
(1,455,041) |
34.4% |
|||||||
| Investment income |
21,113,636 |
25,141,708 |
3,820,297 |
19.1% |
|||||||
| Other income (expense) |
970,439 |
(1,420,600) |
(210,770) |
(246.4%) |
|||||||
| Total other income |
32,772,593 |
33,965,588 |
5,169,532 |
3.6% |
|||||||
| Income before taxes and loss from equity |
368,215,517 |
455,409,558 |
69,633,548 |
23.7% |
|||||||
| Income tax expense |
(83,985,326) |
(101,865,654) |
(15,574,178) |
21.3% |
|||||||
| Income from equity in affiliates |
15,126,762 |
15,064,041 |
2,293,929 |
(0.4%) |
|||||||
| Net income |
299,356,953 |
368,607,945 |
56,353,299 |
23.1% |
|||||||
| Less: net loss attributable to non- |
(2,072,353) |
(12,646,445) |
(1,932,565) |
510.2% |
|||||||
| Net income attributable to Noah |
301,429,306 |
381,254,390 |
58,285,862 |
26.5% |
|||||||
| [5] To realign the Company's services provided under different business segments, starting from the first quarter of 2016, the Company reclassifies some of the revenues under "other service fees" to "one-time commissions". Presentation of prior periods has been reclassified to reflect the same criteria. |
|||||||||||
| [6] To realign the Company's services provided under different business segments, starting from the first quarter of 2016, the Company reclassifies some of the revenues under "other service fees" to "one-time commissions". Presentation of prior periods has been reclassified to reflect the same criteria. |
|||||||||||
| Noah Holdings Limited |
|||||||||||
| Condensed Comprehensive Income Statements |
|||||||||||
| (In RMB) (unaudited) |
|||||||||||
| Three months ended |
|||||||||||
| June 30, |
June 30, |
June 30, |
Change |
||||||||
| 2015 |
2016 |
2016 |
|||||||||
| RMB |
RMB |
USD |
|||||||||
| Net income |
170,980,996 |
176,033,321 |
26,487,507 |
3.0% |
|||||||
| Other comprehensive income, net of tax: |
|||||||||||
| Foreign currency translation |
(188,468) |
7,072,279 |
1,064,157 |
(3852.5%) |
|||||||
| Fair value fluctuation of available for |
(2,044,059) |
(5,555,722) |
(835,962) |
171.8% |
|||||||
| Comprehensive income |
168,748,469 |
177,549,878 |
26,715,701 |
5.2% |
|||||||
| Less: Comprehensive loss attributable to |
1,630,059 |
(6,250,296) |
(940,474) |
(483.4%) |
|||||||
| Comprehensive income attributable to |
167,118,410 |
183,800,174 |
27,656,175 |
10.0% |
|||||||
| Noah Holdings Limited |
|||||
| Supplemental Information |
|||||
| (unaudited) |
|||||
| As of |
Change |
||||
| June 30, 2015 |
June 30, 2016 |
||||
| Number of registered clients |
81,939 |
114,870 |
40.2% |
||
| Number of relationship managers |
953 |
1,093 |
14.7% |
||
| Number of branch offices |
64 |
68 |
6.3% |
||
| Three months ended |
Change |
||||
| June 30, 2015 |
June 30, 2016 |
||||
| (in millions of RMB, except number of active clients and percentages) |
|||||
| Number of active clients |
5,412 |
4,927 |
(9.0%) |
||
| Transaction value: |
|||||
| Fixed income products |
5,746 |
16,987 |
195.6% |
||
| Private equity fund products |
9,874 |
7,571 |
(23.3%) |
||
| Secondary market equity fund |
12,647 |
2,810 |
(77.8%) |
||
| Other products, including mutual |
44 |
405
|
819.3% |
||
| Total transaction value |
28,311 |
27,747 |
(2.0%) |
||
| Average transaction value per client |
5.23 |
5.63 |
7.7% |
||
| Noah Holdings Limited |
|||||||||||
| Segment Condensed Income Statements |
|||||||||||
| (In RMB, except for ADS data, per ADS data and percentages) |
|||||||||||
| (unaudited) |
|||||||||||
| Three months ended Jun 30, 2015 |
|||||||||||
| Wealth Business |
Asset Business |
Internet |
Total |
||||||||
| RMB |
RMB |
RMB |
RMB |
||||||||
| Revenues: |
|||||||||||
| Third-party revenues |
|||||||||||
| One-time commissions |
104,256,557 |
115,001 |
- |
104,371,558 |
|||||||
| Recurring service fees |
83,568,566 |
14,661,226 |
- |
98,229,792 |
|||||||
| Performance-based income |
68,050,993 |
27,618,027 |
- |
95,669,020 |
|||||||
| Other service fees |
9,942,756 |
512,475 |
17,630,545 |
28,085,776 |
|||||||
| Total third-party revenues |
265,818,872 |
42,906,729 |
17,630,545 |
326,356,146 |
|||||||
| Related party revenues |
|||||||||||
| One-time commissions |
129,924,861 |
- |
- |
129,924,861 |
|||||||
| Recurring service fees |
80,494,872 |
70,016,840 |
- |
150,511,712 |
|||||||
| Performance-based income |
- |
2,243,237 |
- |
2,243,237 |
|||||||
| Other service fees |
- |
- |
25,364 |
25,364 |
|||||||
| Total related party revenues |
210,419,733 |
72,260,077 |
25,364 |
282,705,174 |
|||||||
| Total revenues |
476,238,605 |
115,166,806 |
17,655,909 |
609,061,320 |
|||||||
| Less: business taxes and related |
(25,322,488) |
(5,425,550) |
(435,727) |
(31,183,765) |
|||||||
| Net revenues |
450,916,117 |
109,741,256 |
17,220,182 |
577,877,555 |
|||||||
| Operating costs and expenses: |
|||||||||||
| Compensation and benefits |
|||||||||||
| Relationship manager compensation |
(135,197,807) |
(2,282,885) |
(4,882,421) |
(142,363,113) |
|||||||
| Performance Fee Compensation |
- |
(7,200,000) |
- |
(7,200,000) |
|||||||
| Other compensation |
(92,732,020) |
(40,774,307) |
(23,496,332) |
(157,002,659) |
|||||||
| Total compensation and benefits |
(227,929,827) |
(50,257,192) |
(28,378,753) |
(306,565,772) |
|||||||
| Selling expenses |
(44,623,149) |
(4,687,639) |
(5,194,382) |
(54,505,170) |
|||||||
| General and administrative expenses |
(16,028,641) |
(9,126,827) |
(6,292,767) |
(31,448,235) |
|||||||
| Other operating expenses |
(5,662,518) |
(5,828,725) |
(9,182,014) |
(20,673,257) |
|||||||
| Government subsidies |
12,815,434 |
15,922,002 |
- |
28,737,436 |
|||||||
| Total operating costs and expenses |
(281,428,701) |
(53,978,381) |
(49,047,916) |
(384,454,998) |
|||||||
| Income from operations |
169,487,416 |
55,762,875 |
(31,827,734) |
193,422,557 |
|||||||
| Noah Holdings Limited |
|||||||||
| Segment Condensed Income Statements |
|||||||||
| (In RMB, except for ADS data, per ADS data and percentages) |
|||||||||
| (unaudited) |
|||||||||
| Three months ended Jun 30, 2016 |
|||||||||
| Wealth Business |
Asset Business |
Internet |
Total |
||||||
| RMB |
RMB |
RMB |
RMB |
||||||
| Revenues: |
|||||||||
| Third-party revenues |
|||||||||
| One-time commissions |
209,149,472 |
340,726 |
- |
209,490,198 |
|||||
| Recurring service fees |
110,291,809 |
17,523,355 |
- |
127,815,164 |
|||||
| Performance-based income |
141,521 |
675,786 |
- |
817,307 |
|||||
| Other service fees |
18,717,134 |
- |
10,964,435 |
29,681,569 |
|||||
| Total third-party revenues |
338,299,936 |
18,539,867 |
10,964,435 |
367,804,238 |
|||||
| Related party revenues |
|||||||||
| One-time commissions |
88,306,826 |
1,663,838 |
- |
89,970,664 |
|||||
| Recurring service fees |
88,176,972 |
93,988,883 |
- |
182,165,855 |
|||||
| Performance-based income |
- |
23,316,750 |
- |
23,316,750 |
|||||
| Other service fees |
75,614 |
- |
669,134 |
744,748 |
|||||
| Total related party revenues |
176,559,412 |
118,969,471 |
669,134 |
296,198,017 |
|||||
| Total revenues |
514,859,348 |
137,509,338 |
11,633,569 |
664,002,255 |
|||||
| Less: business taxes and related |
(9,687,926) |
(2,277,686) |
(311,685) |
(12,277,297) |
|||||
| Net revenues |
505,171,422 |
135,231,652 |
11,321,884 |
651,724,958 |
|||||
| Operating costs and expenses: |
|||||||||
| Compensation and benefits |
|||||||||
| Relationship manager compensation |
(144,950,980) |
(1,095,316) |
(1,056,760) |
(147,103,056) |
|||||
| Performance fee compensation |
- |
(4,798,507) |
- |
(4,798,507) |
|||||
| Other compensation |
(106,630,074) |
(38,114,148) |
(31,500,907) |
(176,245,129) |
|||||
| Total compensation and benefits |
(251,581,054) |
(44,007,971) |
(32,557,667) |
(328,146,692) |
|||||
| Selling expenses |
(67,372,110) |
(4,425,087) |
(6,450,949) |
(78,248,146) |
|||||
| General and administrative expenses |
(31,885,314) |
(18,352,172) |
(8,013,323) |
(58,250,809) |
|||||
| Other operating expenses |
(21,126,909) |
(1,664,721) |
(6,366,379) |
(29,158,009) |
|||||
| Government subsidies |
34,166,731 |
2,016,496 |
- |
36,183,227 |
|||||
| Total operating costs and expenses |
(337,798,656) |
(66,433,455) |
(53,388,318) |
(457,620,429) |
|||||
| Income from operations |
167,372,766 |
68,798,197 |
(42,066,434) |
194,104,529 |
|||||
| Noah Holdings Limited |
||||||
| Reconciliation of GAAP to Non-GAAP Results |
||||||
| (In RMB, except for ADS data and percentages) |
||||||
| (unaudited) |
||||||
| Three months ended |
||||||
| June 30, |
June 30, |
Change |
||||
| 2015 |
2016 |
|||||
| RMB |
RMB |
|||||
| Net margin |
29.6% |
27.0% |
||||
| Adjusted net margin (non- |
33.5% |
29.4% |
||||
| Net income attributable to |
169,350,833 |
182,255,090 |
7.6% |
|||
| Adjustment for share-based |
||||||
| Share options |
10,910,694 |
9,378,522 |
(14.0%) |
|||
| Restricted shares |
11,427,366 |
6,306,101 |
(44.8%) |
|||
| Adjusted net income |
191,688,893 |
197,939,713 |
3.3% |
|||
| Net income attributable to |
2.87 |
3.10 |
8.0% |
|||
| Adjusted net income |
3.24 |
3.37 |
4.0% |
|||
| *The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments. |
||||||
SOURCE Noah Holdings Limited
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