SHANGHAI, Nov. 26, 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 of
September 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 of
September 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 of
September 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 expensesfor 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 expensesfor 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 expensesfor 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 marginfor 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
Management
Business
|
|
Asset
Management
Business
|
|
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
Management
Business
|
|
Asset
Management
Business
|
|
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
Management
Business
|
|
Asset
Management
Business
|
|
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
Management
Business
|
|
Asset
Management
Business
|
|
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 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/noah-holdings-limited-announces-unaudited-financial-results-for-the-third-quarter-of-2024-302316560.html
SOURCE Noah Holdings Limited
