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Noah
ISIN: US65487X1028
WKN: A1C8V1
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Noah · ISIN: US65487X1028 · PR Newswire (ID: 20240828CN93395)
28 August 2024 10:45PM

NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2024


SHANGHAI, Aug. 28, 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 second quarter of 2024.

SECOND QUARTER 2024 FINANCIAL HIGHLIGHTS                                                                                                                            

  • Net revenues for the second quarter of 2024 were RMB615.8 million (US$84.7 million), a 34.6% decrease from the corresponding period in 2023, and a 5.2% decrease from the first quarter of 2024,primarily due to a decrease in distribution of insurance products.

Net revenues from mainland China for the second quarter of 2024 were RMB337.2 million (US$46.4 million), a 38.5% decrease from the corresponding period in 2023, mainly due to a decrease in distribution of insurance products as well as private secondary products.

Net revenues from overseas for the second quarter of 2024 were RMB278.6 million (US$38.3 million), a 29.2% decrease from the corresponding period of 2023, mainly due to a decrease in one-time commissions from insurance products.

Net Revenues by segment is as follows:

(RMB millions,

except percentages)

Q2 2023





Q2 2024





YoY Change

Wealth management

745.3





415.6





(44.2 %)

Asset management

183.4





192.3





4.9 %

Other businesses

13.1





7.9





(39.7 %)

Total net revenues

941.8





615.8





(34.6 %)

Net Revenues by geography is as follows:

(RMB millions,

except percentages)

Q2 2023





Q2 2024





YoY Change

Mainland China

548.3





337.2





(38.5 %)

Overseas

393.5





278.6





(29.2 %)

Total net revenues

941.8





615.8





(34.6 %)

  • Income from operations for the second quarter of 2024 was RMB134.0 million (US$18.4 million), a 61.6% decrease from the corresponding period in 2023, mainly due to the 34.6% decrease in net revenues. Income from operations increased 10.3% sequentially, mainly due to the effective cost control measures implemented in the second quarter of 2024.

Income from operations by segment is as follows:

(RMB millions,

except percentages)

Q2 2023





Q2 2024





YoY Change

Wealth management

300.2





65.5





(78.2 %)

Asset management

80.9





86.5





6.9 %

Other businesses

(31.7)





(18.0)





(43.2 %)

Total income from operations

349.4





134.0





(61.6 %)

  • Net income attributable to Noah shareholders for the second quarter of 2024 was RMB99.8 million (US$13.7 million), a 68.4% decrease from the corresponding period in 2023, mainly due to the 61.6% decrease in income from operations and a loss from equity in affiliates recorded in the second quarter of 2024.
  • Non-GAAP[1] net income attributable to Noah shareholders for the second quarter of 2024 was RMB106.1 million (US$14.6 million), a 66.1% decrease from the corresponding period in 2023.

SECOND 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 June 30, 2024, was 459,072, a 2.8% increase from June 30, 2023, and a 0.3% increase from March 31, 2024. Among registered clients as of June 30, 2024, the number of overseas registered clients was 16,786, a 6.7% increase from March 31, 2024, and a 23.0% increase from June 30, 2023.
  • Total number of active clients[2] for the second quarter of 2024 was 8,634, a decrease of 25.2% from the second quarter of 2023 and 16.9% from the first quarter of 2024. Among active clients during the second quarter of 2024, the number of overseas active clients was 3,244, a 62.8% increase from the second quarter of 2023, and an 18.2% increase from the first quarter of 2024.
  • Aggregate value of investment products distributed during the second quarter of 2024 was RMB14.4 billion (US$2.0 billion), a 21.7% decrease from the second quarter of 2023, mainly due to a 29.3% decrease in distribution of mutual fund products. The aggregate value of investment products distributed decreased by 23.7% from the first quarter of 2024, mainly due to the decrease in distribution of mutual fund products. Among the investment products distributed during the second quarter of 2024, Noah distributed RMB7.9 billion (US$1.1 billion) of overseas investment products, a 40.8% increase from the second quarter of 2023, primarily due to an 80.9% increase in distribution of overseas mutual fund products.

The aggregate value of investment products distributed, categorized by product type, is as follows:

Product type

Three months ended June 30,



2023

2024



(RMB in billions, except percentages)











Mutual fund products

12.0

65.4 %

8.5

59.0 %

Private secondary products

4.3

23.3 %

4.1

28.7 %

Private equity products

0.6

3.3 %

1.1

7.7 %

Other products[3]

1.5

8.0 %

0.7

4.6 %

All products

18.4

100.0 %

14.4

100.0 %

The aggregate value of investment products distributed, categorized by geography, is as follows

Type of products in Mainland China

Three months ended June 30,



2023



2024



(RMB in billions, except percentages)

Mutual fund products

10.1



79.1 %



5.0



77.1 %

Private secondary products 

1.9



15.2 %



1.2



18.9 %

Private equity products

0.1



1.1 %



-



0.0 %

Other products

0.6



4.6 %



0.3



4.0 %

All products in Mainland China

12.8



100.0 %



6.5



100.00 %

 

Type of overseas products

Three months ended June 30,



2023



2024



(RMB in billions, except percentages)

Mutual fund products

1.9



34.4 %



3.5



44.2 %

Private secondary products 

2.4



41.7 %



2.9



36.7 %

Private equity products

0.8



13.5 %



1.1



13.9 %

Other products

0.6



10.4 %



0.4



5.2 %

All Overseas products

5.6



100.00 %



7.9



100.00 %

 

  • Coverage network in mainland China included 15 cities as of June 30, 2024, compared with 63 cities as of June 30, 2023, and 18 cities as of March 31, 2024, as the Company continued to streamline its coverage across mainland China.
  • Aggregate number of overseas relationship managers was 113 as of June 30, 2024, a 24.2% increase from March 31, 2024. Since the Company's relationship managers in mainland China are divided into different teams, each focusing on an independent business unit dedicated to offering clients mutual fund and private secondary products, insurance products, or private equity products, the Company no longer considers it meaningful to disclose an aggregate number of relationship managers in mainland China.

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 with global investment capabilities and overseas offices in Hong Kong and the United States. Gopher Asset Management develops and manages 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 June 30, 2024, remained relatively stable at RMB154.0 billion (US$21.2 billion), compared with RMB156.9 billion as of June 30, 2023, and RMB153.3 billion as of March 31, 2024. 

Mainland China assets under management as of June 30, 2024, were RMB114.9 billion (US$15.8billion), compared with RMB122.7 billion as of June 30, 2023, and RMB116.1 billion as of March 31, 2024.

Overseas assets under management as of June 30, 2024, were RMB39.1 billion (US$5.4 billion), compared with RM34.2 billion as of June 30, 2023, and RMB37.2 billion as of March 31, 2024.

Total assets under management, categorized by investment type, are as follows:

Investment type

As of 

March 31, 

2024





Growth





Allocation/

Redemption



As of

June 30, 

2024



(RMB billions, except percentages)

Private equity

131.8



85.9 %



0.7



(0.5) [4] 



133.0



86.4 %

Public securities[5]

10.9



7.1 %



2.5



3.0



10.4



6.7 %

Real estate

5.7



3.7 %



0.2



0.1



5.8



3.8 %

Multi-strategies

4.3



2.9 %



-



0.1



4.2



2.7 %

Others

0.6



0.4 %



-



-



0.6



0.4 %

All Investments

153.3



100.0 %



3.4



2.7



154.0



100.0 %

Total assets under management, categorized by geography, are as follows:

Mainland China Investment type

As of 

March 31, 

2024





Growth



Allocation/

Redemption



As of

June 30, 

2024



(RMB billions, except percentages)

Private equity

103.5



89.2 %



-



0.1



103.4



90.1 %

Public securities

6.9



6.0 %



-



0.9



6.0



5.2 %

Real estate

2.5



2.2 %



-



0.1



2.4



2.1 %

Multi-strategies

2.6



2.2 %



-



0.1



2.5



2.1 %

Others

0.6



0.4 %



-



-



0.6



0.5 %

All Investments

116.1



100.0 %



-



1.2



114.9



100.0 %

 

Overseas

Investment type

As of 

March 31, 

2024





Growth



Allocation/

Redemption



As of

June 30, 

2024



(RMB billions, except percentages)

Private equity

28.3



75.7 %



0.7



(0.6)



29.6



75.5 %

Public securities

4.0



10.8 %



2.5



2.1



4.4



11.2 %

Real estate

3.2



8.6 %



0.2



-



3.4



8.7 %

Multi-strategies

1.7



4.9 %



-



-



1.7



4.6 %

All Investments

37.2



100.0 %



3.4



1.5



39.1



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, non-cash settlement expenses 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, "The pace of our overseas expansion is gaining momentum as client demand for global asset allocation strengthens, with overseas revenue contribution increasing to 46.3% in the first half of 2024. While sluggish domestic markets continued to impact our business during the quarter, our investments in expanding our global product portfolio and distribution networks are starting to yield results, with overseas assets under management increasing 14.3% year-over-year. We have also raised US$338 million for overseas private equity, private credit, and other primary market funds year-to-date, a significant 40.2% year-over-year increase. Additionally, our team of overseas relationship managers directly supporting this expansion grew 101.8% year-over-year and 24.2% sequentially. While we are still in the relatively early stages of our overseas expansion, these results reflect the direction we are headed in going forward."

"Domestically, we are focused on stabilizing operations by streamlining our branch network to reduce overhead costs and adjusting our client service model to comply with evolving regulatory requirements by separating relationship and business development managers into different independent business units. While these initiatives may temporarily impact business activity over the next few quarters, they will ensure our ability to effectively and compliantly serve clients with a comprehensive portfolio of products in the long term."

"In the interim, we are rewarding shareholders with enhanced capital returns for their long-term support with a US$50 million share repurchase program. This share repurchase program, along with the full year 2023 final and special dividend payout we just completed earlier this month, reflects our unwavering commitment to prioritizing shareholder interests and delivering sustained returns. While China's wealth management industry is navigating a challenging period and undergoing a transition, we remain confident in our unique advantages stemming from our deep understanding of Mandarin-speaking high-net-worth individuals' (HNWI) needs and our ability to deliver products and services to this still-growing client base. We are one of a few independent firms that maintains access, through years of investor education, to a large group of qualified individual investors who continue to seek professional services. As such, we believe that our stock is deeply undervalued and does not reflect our growth prospects, robust balance sheet and cash reserves, or the special bond we have formed with Mandarin-speaking HNWIs globally. We value both our long-term and new shareholders and are committed to sharing our success with them through more proactive capital allocation policies moving forward."

SECOND QUARTER 2024 FINANCIAL RESULTS

Net Revenues

Net revenues for the second quarter of 2024 were RMB615.8 million (US$84.7 million), a 34.6% decrease from the corresponding period in 2023, primarily due to a decrease in distribution of insurance products.

  • Wealth Management Business
    • Net revenues from one-time commissions for the second quarter of 2024 were RMB136.4 million (US$18.8 million), a 66.2% decrease from the corresponding period in 2023, primarily due to a decrease in distribution of insurance products.
    • Net revenues from recurring service fees for the second quarter of 2024 were RMB235.5 million (US$32.4 million), a 12.5% decrease from the corresponding period in 2023, primarily due to a decrease in recurring service fees from private secondary products associated with the decrease in assets under management in Mainland China.
    • Net revenues from performance-based income for the second quarter of 2024 were RMB4.5 million (US$0.6 million), a 79.0% decrease from the corresponding period of 2023, primarily due to a decrease in performance-based income from offshore private equity products.
    • Net revenues from other service fees for the second quarter of 2024 were RMB39.2 million (US$5.4 million), a 22.7% decrease from the corresponding period in 2023, primarily due to a decrease in the value-added services Noah offers to its high-net-worth clients.
  • Asset Management Business
    • Net revenues from recurring service fees for the second quarter of 2024 were RMB168.9 million (US$23.2 million), a 4.5% 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 second quarter of 2024 were RMB23.4 million (US$3.2 million), compared with RMB6.5 million in the corresponding period of 2023. The increase was primarily due to an increase in performance-based income realized from private equity products.
  • Other Businesses
    • Net revenues for the second quarter of 2024 were RMB7.9 million (US$1.1 million), compared with RMB13.1 million for the corresponding period in 2023.

Operating Costs and Expenses

Operating costs and expenses for the second quarter of 2024 were RMB481.8 million (US$66.3 million), an 18.7% decrease from the corresponding period in 2023. Operating costs and expenses primarily consisted of 1) compensation and benefits of RMB297.0 million (US$40.9 million); 2) selling expenses of RMB61.9 million (US$8.5 million); 3) general and administrative expenses of RMB79.9 million (US$11.0 million); 4) reversal of credit losses of RMB0.3 million; and 5) other operating expenses of RMB46.0 million (US$6.3 million).

  • Operating costs and expenses for the wealth management business for the second quarter of 2024 were RMB350.1 million (US$48.2 million), a 21.3% decrease from the corresponding period in 2023, primarily due to decreases of 22.6% in compensation and benefits and 49.0% in selling expenses.
  • Operating costs and expenses for the asset management business for the second quarter of 2024 were RMB105.8 million (US$14.6 million), a 3.2% increase from the corresponding period in 2023, primarily due to an increase in other operating expenses which was partially offset by a decrease in compensation and benefits and selling expenses.
  • Operating costs and expenses for other businesses for the second quarter of 2024 were RMB25.9 million (US$3.6 million), compared with RMB44.8 million from the corresponding period in 2023.

Operating Margin

Operating margin for the second quarter of 2024 was 21.8%, a decrease from 37.1% in the corresponding period of 2023.

  • Operating margin for the wealth management business for the second quarter of 2024 was 15.8%, compared with 40.3% for the corresponding period in 2023.
  • Operating margin for the asset management business for the second quarter of 2024 was 45.0%, compared with 44.1% for the corresponding period in 2023.
  • Loss from operation for other businesses for the second quarter of 2024 was RMB18.0 million (US$2.5 million), compared with an operating loss of RMB31.7 million for the corresponding period in 2023.

Interest Income

Interest income for the second quarter of 2024 was RMB42.6 million (US$5.9 million), a 7.3% increase from the corresponding period in 2023, mainly due to an increase in US dollar cash balances.

Investment Income

Investment income for the second quarter of 2024 was RMB10.4 million (US$1.4 million), compared with investment loss RMB4.0 million for the corresponding period in 2023.

Income Tax Expenses

Income tax expenses for the second quarter of 2024 were RMB40.3 million (US$5.5 million), a 55.4% decrease from the corresponding period in 2023, primarily due to less taxable income compared with the second quarter of 2023. 

Net Income

  • Net Income
    • Net income for the second quarter of 2024 was RMB103.7 million (US$14.3 million), a 66.8% decrease from the corresponding period in 2023.
    • Net margin for the second quarter of 2024 was 16.8%, a decrease from 33.2% in the corresponding period of 2023.
    • Net income attributable to Noah shareholders for the second quarter of 2024 was RMB99.8 million (US$13.7 million), a 68.4% decrease from the corresponding period in 2023.
    • Net margin attributable to Noah shareholders for the second quarter of 2024 was 16.2%, a decrease from 33.5% in the corresponding period of 2023.
    • Net income attributable to Noah shareholders per basic and diluted ADS for the second quarter of 2024 was RMB1.42 (US$0.20) and RMB1.42 (US$0.20), respectively, a decrease from RMB4.54 and RMB4.54 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 second quarter of 2024 was RMB106.1 million (US$14.6 million), a 66.1% decrease from the corresponding period in 2023.
    • Non-GAAP net margin attributable to Noah shareholders for the second quarter of 2024 was 17.2%, compared with 33.2% for the corresponding period in 2023.
    • Non-GAAP net income attributable to Noah shareholders per diluted ADS for the second quarter of 2024 was RMB1.51 (US$0.21), down from RMB4.51 for the corresponding period in 2023.

Balance Sheet and Cash Flow

As of June 30, 2024, the Company had RMB4,604.9 million (US$633.7 million) in cash and cash equivalents, compared with RMB 5,129.4 million as of March 31, 2024.

Net cash inflow from the Company's operating activities during the second quarter of 2024 was RMB49.6 million (US$6.8 million), mainly due to cash inflow generated from net income from operations.

Net cash outflow from the Company's investing activities during the second quarter of 2024 was RMB548.2 million (US$75.4 million), mainly due to cash used for short-term investments.

Net cash outflow from the Company's financing activities was RMB44.6 million (US$6.1 million) in the second quarter of 2024, compared to net cash inflow of RMB87.0 million in the corresponding period in 2023.

SHARE REPURCHASE PROGRAM

As announced earlier today, as part of its commitment to enhancing shareholder returns, the board of directors of the Company ("the Board") authorized a share repurchase program under which the Company may repurchase up to US$50 million of its American depositary shares or ordinary shares, effective immediately. The authorized term for carrying out this share repurchase program is two years.

The Company announced in November 2023 that a new capital management and shareholder return policy (the "Policy") had been adopted, pursuant to which up to 50% the Company's non-GAAP net income attributable to shareholders of the preceding financial year will be allocated to a Corporate Actions Budget which will serve various purposes, including dividend distribution and share repurchases. The share repurchase program announced today does not form a part of the Corporate Actions Budget under the Policy. The Corporate Actions Budget based on the Company's financial performance in 2024 is expected to be determined and announced alongside the Company's earnings results for the fourth quarter and full year ending on December 31, 2024.

The share repurchases under the repurchase program announced today will be carried out from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades or through other legally permissible means, depending on market conditions and will be implemented in accordance with applicable rules and regulations. The Board will review the share repurchase program periodically and may authorize adjustments of its terms and size. The Company expects to fund repurchases made under this program from its existing cash balance and cash generated from operations.

CONFERENCE CALL 

Senior management will host a combined English and Chinese language conference call to discuss its unaudited financial results and recent business activities for the second quarter and six months ended June 30, 2024. The conference call may be accessed with the following details:

Dial-in details:



Conference Title:

Noah Second Quarter and Half Year 2024 Earnings Conference Call

Date/Time:

 

Wednesday, August 28, 2024, at 8:00 p.m., U.S. Eastern Time

Thursday, August 29, 2024, at 8:00 a.m., Hong Kong Time

Dial in:



- Hong Kong Toll Free

800-963-976

- United States Toll Free

+1-888-317-6003

- Mainland China Toll Free

4001-206-115

- International

+1-412-317-6061

Participant Password:

3101709

A telephone replay will be available starting approximately one hour after the end of the conference until September 4, 2024 at 1-877-344-7529 (US Toll Free) and 1-412-317-0088 (International Toll) with the access code 3826921. 

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, non-cash settlement expenses 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 half of 2024, Noah distributed RMB33.3 billion (US$4.6 billion) of investment products. As of June 30, 2024, through Gopher Asset Management, Noah managed assets totaling RMB154.0 billion (US$21.2 billion).

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 459,072 registered clients as of June 30, 2024. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in RMB and other currencies. Noah also operates other businesses.

For more information, please visit Noah at ir.noahgroup.com.

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the second quarter of 2024 ended June 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 RMB7.2672 to US$1.00, the effective noon buying rate for June 28, 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





March 31,



June 30, 



June 30, 



2024



2024



2024



RMB'000



RMB'000



USD'000

Assets













Current assets:















Cash and cash equivalents

5,129,437



4,604,946



633,662





Restricted cash

2,276



4,574



629





Short-term investments

747,084



1,287,400



177,152





Accounts receivable, net

435,114



429,417



59,090





Amounts due from related parties

508,236



444,937



61,225





Loans receivable, net

222,516



207,122



28,501





Other current assets 

178,644



226,332



31,145





Total current assets 

7,223,307



7,204,728



991,404



Long-term investments, net

803,598



742,322



102,147



Investment in affiliates

1,522,996



1,445,356



198,888



Property and equipment, net

2,450,271



2,416,072



332,462



Operating lease right-of-use assets, net                                                         

125,475



102,301



14,077



Deferred tax assets

427,680



400,401



55,097



Other non-current assets 

189,794



155,825



21,442

Total Assets

12,743,121



12,467,005



1,715,517

Liabilities and Equity













Current liabilities:















Accrued payroll and welfare expenses 

585,886



346,543



47,686





Income tax payable

98,998



76,318



10,502





Deferred revenues

88,182



73,857



10,163





Dividend payable

-



1,018,000



140,082





Contingent liabilities

490,989



475,777



65,469





Other current liabilities

490,529



420,527



57,866



Total current liabilities

1,754,584



2,411,022



331,768



Deferred tax liabilities

260,976



245,609



33,797



Operating lease liabilities, non-current

70,335



55,043



7,574



Other non-current liabilities

25,564



24,980



3,437



Total Liabilities 

2,111,459



2,736,654



376,576



Equity

10,631,662



9,730,351



1,338,941

Total Liabilities and Equity

12,743,121



12,467,005



1,715,517



















 

Noah Holdings Limited



Condensed Consolidated Income Statements



(In RMB'000, except for ADS data, per ADS data and percentages)



(unaudited)





Three months ended 





June 30,



June 30,



June 30,



Change





2023



2024



2024







Revenues:

RMB'000



RMB'000



USD'000





Revenues from others:















One-time commissions

399,521



127,894



17,599



(68.0 %)

Recurring service fees

176,355



151,469



20,843



(14.1 %)

Performance-based income

4,328



4,515



621



4.3 %

Other service fees

64,114



49,950



6,873



(22.1 %)

Total revenues from others

644,318



333,828



45,936



(48.2 %)

Revenues from funds Gopher manages:















One-time commissions

5,982



9,129



1,256



52.6 %

Recurring service fees

271,033



254,205



34,980



(6.2 %)

Performance-based income

23,635



23,413



3,222



(0.9 %)

Total revenues from funds Gopher manages

 

300,650



 

286,747



 

39,458



 

(4.6 %)

Total revenues

944,968



620,575



85,394



(34.3 %)

Less: VAT related surcharges 

(3,211)



(4,721)



(650)



47.0 %

Net revenues

941,757



615,854



84,744



(34.6 %)

Operating costs and expenses:















Compensation and benefits















Relationship managers

(180,304)



(131,505)



(18,096)



(27.1 %)

Others

(204,798)



(165,505)



(22,775)



(19.2 %)

Total compensation and benefits

(385,102)



(297,010)



(40,871)



(22.9 %)

Selling expenses

(112,003)



(61,890)



(8,516)



(44.7 %)

General and administrative expenses

 

(63,983)



 

(79,902)



 

(10,995)



 

24.9 %

(Provision for) reversal of credit losses

 

(220)



 

331



 

46



 

N.A.

Other operating expenses 

(37,078)



(46,007)



(6,331)



24.1 %

Government subsidies 

6,048



2,639



363



(56.4 %)

Total operating costs and expenses 

(592,338)



(481,839)



(66,304)



(18.7 %)

Income from operations 

349,419



134,015



18,440



(61.6 %)

Other income:















Interest income 

39,684



42,587



5,860



7.3 %

Investment (loss) income

(3,976)



10,400



1,431



N.A.

Settlement reversal

-



11,476



1,579



N.A.

Other income (expenses)

15,821



(2,828)



(389)



N.A.

Total other income

51,529



61,635



8,481



19.6 %

Income before taxes and income from

equity in affiliates

400,948



195,650



26,921



(51.2 %)



Income tax expense

(90,213)



(40,257)



(5,540)



(55.4 %)



Income (loss) from equity in affiliates

1,561



(51,700)



(7,114)



N.A.



Net income

312,296



103,693



14,267



(66.8 %)



Less: net (loss) income attributable to

non-controlling interests

 

(3,132)



 

3,906



 

537



 

N.A.



Net income attributable to Noah

shareholders 

315,428



99,787



13,730



(68.4 %)





















Income per ADS, basic

4.54



1.42



0.20



(68.7 %)



Income per ADS, diluted

4.54



1.42



0.20



(68.7 %)



 

Margin analysis:

















Operating margin

37.1 %



21.8 %



21.8 %







Net margin

33.2 %



16.8 %



16.8 %







 

Weighted average ADS equivalent[1]:

















Basic

  

69,469,110



 

70,229,503



 

70,229,503







Diluted

 

69,492,786



 

70,429,388



 

70,429,388







ADS equivalent outstanding at end of period

  

63,137,912



 

65,806,082



 

65,806,082





























 

[1]   Assumes all outstanding ordinary shares are represented by ADSs. Five ordinary share represents one ADSs.























 

Noah Holdings Limited

Condensed Consolidated Income Statements

(In RMB'000, except for USD data, per ADS data and percentages)

(unaudited)



Six months ended 



June 30,



June 30,



June 30,



Change



2023



2024



2024





Revenues:

RMB'000



RMB'000



USD'000





Revenues from others:















One-time commissions

570,092



313,149



43,091



(45.1 %)

Recurring service fees

369,063



306,634



42,194



(16.9 %)

Performance-based income

7,758



10,043



1,382



29.5 %

Other service fees

136,980



84,910



11,684



(38.0 %)

Total revenues from others

1,083,893



714,736



98,351



(34.1 %)

Revenues from funds Gopher manages:















One-time commissions

11,878



10,956



1,508



(7.8 %)

Recurring service fees

554,505



516,894



71,127



(6.8 %)

Performance-based income

103,960



32,257



4,439



(69.0 %)

Total revenues from funds Gopher manages          

 

670,343



 

560,107



 

77,074



 

(16.4 %)

Total revenues

1,754,236



1,274,843



175,425



(27.3 %)

Less: VAT related surcharges 

(9,006)



(9,454)



(1,301)



5.0 %

Net revenues

1,745,230



1,265,389



174,124



(27.5 %)

Operating costs and expenses:















Compensation and benefits















Relationship managers

(329,039)



(275,800)



(37,951)



(16.2 %)

Others

(426,169)



(409,995)



(56,417)



(3.8 %)

Total compensation and benefits

 

(755,208)



 

(685,795)



 

(94,368)



 

(9.2 %)

Selling expenses

(208,672)



(124,222)



(17,094)



(40.5 %)

General and administrative expenses 

 

(109,683)



 

(151,018)



 

(20,781)



 

37.7 %

Reversal of credit losses

5,478



428



59



(92.2 %)

Other operating expenses 

(67,875)



(63,153)



(8,690)



(7.0 %)

Government subsidies 

19,032



13,872



1,909



(27.1 %)

Total operating costs and expenses 

 

(1,116,928)



(1,009,888)



(138,965)



(9.6 %)

Income from operations 

628,302



255,501



35,159



(59.3 %)

Other income:















Interest income 

74,072



88,772



12,215



19.8 %

Investment (loss) income

(17,559)



15,585



2,145



N.A.

Settlement reversal

-



11,476



1,579



N.A.

Other income

25,379



1,107



152



(95.6 %)

Total other income

81,892



116,940



16,091



42.8 %

Income before taxes and

income from equity in affiliates

710,194



372,441



51,250



(47.6 %)

Income tax expense

(159,793)



(82,943)



(11,413)



(48.1 %)

Income (loss) from equity in affiliates

 

5,230



 

(53,942)



 

(7,423)



 

N.A.

Net income

555,631



235,556



32,414



(57.6 %)

Less: net (loss) income

attributable to non-controlling

interests

 

 

(4,007)



 

 

4,278



 

 

589



 

 

N.A.

Net income attributable to

Noah shareholders 

559,638



231,278



31,825



(58.7 %)

















Income per ADS, basic

8.06



3.30



0.45



(59.1 %)

Income per ADS, diluted

8.05



3.30



0.45



(59.0 %)

 

Margin analysis:















Operating margin

36.0 %



20.2 %



20.2 %





Net margin

31.8 %



18.6 %



18.6 %





 

Weighted average ADS equivalent[1]:















Basic

 

69,468,036



70,036,724



70,036,724





Diluted

69,498,956



70,163,305



70,163,305





ADS equivalent outstanding at

end of period

 

63,137,912



 

65,806,082



 

65,806,082























[1] Assumes all outstanding ordinary shares are represented by ADSs. Five ordinary share represents one ADSs.





















 

 

Noah Holdings Limited 



Condensed Comprehensive Income Statements 



(unaudited)





Three months ended 







June 30,



June 30,



June 30,



Change





2023



2024



2024









RMB'000



RMB'000



USD'000







Net income

312,296



103,693



14,267



(66.8 %)



Other comprehensive income, net of tax:

















Foreign currency translation adjustments

140,753



29,283



4,029



(79.2 %)



Comprehensive income

453,049



132,976



18,296



(70.6 %)



Less: Comprehensive (loss) income

attributable to non-controlling interests

 

(3,269)



 

3,510



483



 

N.A.



Comprehensive income attributable to

Noah
shareholders

456,318



129,466



17,813



(71.6 %)



 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)



Six months ended 





June 30,



June 30,



June 30,



Change



2023



2024



2024







RMB'000



RMB'000



USD'000





Net income

555,631



235,556



32,414



(57.6 %)

Other comprehensive income, net of tax:















Foreign currency translation adjustments

123,918



82,683



11,378



(33.3%).

Comprehensive income

679,549



318,239



43,792



(53.2 %)

Less: Comprehensive (loss) income

attributable to non-controlling interests

(4,189)



3,018



 

415



N.A.

Comprehensive income attributable to

Noah
shareholders

683,738



315,221



43,377



(53.9 %)

 

Noah Holdings Limited

Supplemental Information 

(unaudited) 



As of 







June 30, 

2023



June 30, 

2024



Change













Number of registered clients 

446,557



459,072



2.8 %















Three months ended 







June 30,

2023



June 30, 

2024



Change



(in millions of RMB, except number of active clients and percentages)

Number of active clients

11,548



8,634



(25.2 %)

Transaction value: 











Private equity products 

618



1,103



78.5 %

Private secondary products

4,293



4,137



(3.6 %)

Mutual fund products 

12,031



8,501



(29.3 %)

Other products

1,465



676



(53.9 %)

Total transaction value

18,407



14,417



(21.7 %)

 

Noah Holdings Limited 

Segment Condensed Income Statements 

(unaudited) 





Three months ended June 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

127,894



-



-



127,894



Recurring service fees

151,469



-



-



151,469



Performance-based income

4,515



-



-



4,515



Other service fees

39,382



-



10,568



49,950



Total revenues from others

323,260



-



10,568



333,828



Revenues from funds Gopher manages

















One-time commissions

9,119



10



-



9,129



Recurring service fees

85,165



169,040



-



254,205



Performance-based income

-



23,413



-



23,413



Total revenues from funds Gopher manages

94,284



192,463



-



286,747



Total revenues

417,544



192,463



10,568



620,575



Less: VAT related surcharges 

(1,918)



(162)



(2,641)



(4,721)



Net revenues

415,626



192,301



7,927



615,854



Operating costs and expenses:

















Compensation and benefits

















Relationship managers

(124,857)



(6,648)



-



(131,505)



Others

(114,162)



(48,285)



(3,058)



(165,505)



Total compensation and benefits

(239,019)



(54,933)



(3,058)



(297,010)



Selling expenses

(43,303)



(12,411)



(6,176)



(61,890)



General and administrative expenses 

(53,575)



(16,356)



(9,971)



(79,902)



Reversal of credit losses

60



78



193



331



Other operating expenses

(16,517)



(22,487)



(7,003)



(46,007)



Government subsidies 

2,221



343



75



2,639



Total operating costs and expenses 

(350,133)



(105,766)



(25,940)



(481,839)



Income (loss) from operations

65,493



86,535



(18,013)



134,015



 

Noah Holdings Limited 



Segment Condensed Income Statements 



(unaudited) 









Three months ended June 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

399,521



-



-



399,521

Recurring service fees

176,355



-



-



176,355

Performance-based income

4,328



-



-



4,328

Other service fees

50,878



-



13,236



64,114

Total revenues from others

631,082



-



13,236



644,318

Revenues from funds Gopher manages















One-time commissions

5,920



62



-



5,982

Recurring service fees

93,914



177,119



-



271,033

Performance-based income

17,115



6,520



-



23,635

Total revenues from funds Gopher manages

 

116,949



 

183,701



-



 

300,650

Total revenues

748,031



183,701



13,236



944,968

Less: VAT related surcharges 

(2,755)



(312)



(144)



(3,211)

Net revenues

745,276



183,389



13,092



941,757

Operating costs and expenses:















Compensation and benefits















Relationship managers

(175,446)



(4,858)



-



(180,304)

Others

(133,409)



(63,949)



(7,440)



(204,798)

Total compensation and benefits

(308,855)



(68,807)



(7,440)



(385,102)

Selling expenses

(84,883)



(20,839)



(6,281)



(112,003)

General and administrative expenses 

 

(47,431)



 

(11,721)



 

(4,831)



 

(63,983)

(Provision for) reversal of credit losses

 

(294)



 

74



 

-



 

(220)

Other operating expenses

(9,637)



(1,230)



(26,211)



(37,078)

Government subsidies 

6,002



46



-



6,048

Total operating costs and expenses 

(445,098)



(102,477)



(44,763)



(592,338)

Income (loss) from operations

300,178



80,912



(31,671)



349,419

 

Noah Holdings Limited

Supplement Revenue Information by Geography

(unaudited)





Three months ended June 30, 2024



Wealth 

Management

Business



Asset 

Management

Business



Other

Businesses



Total



RMB'000



RMB'000



RMB'000



RMB'000

















Revenues:















Mainland China

218,785



112,596



10,568



341,949

Overseas

198,759



79,867



-



278,626

Total revenues

417,544



192,463



10,568



620,575

 



Three months ended June 30, 2023



Wealth 

Management

Business



Asset 

Management

Business



Other

Businesses



Total



RMB'000



RMB'000



RMB'000



RMB'000

















Revenues:















Mainland China

419,220



118,972



13,236



551,428

Overseas

328,811



64,729



-



393,540

Total revenues

748,031



183,701



13,236



944,968

 

Noah Holdings Limited

Supplement Revenue Information by Product Types

 (unaudited)

 



Three months ended 







June 30,

2023



June 30, 

2024



Change



(in thousands of RMB, except percentages)













Mainland China: 











Public securities products [1]

148,702



117,740



(20.8 %)

Private equity products

209,505



198,208



(5.4 %)

Insurance products

171,543



11,753



(93.1 %)

Others

21,678



14,248



(34.3 %)

Subtotal

551,428



341,949



(38.0 %)













Overseas: 











Investment products [2]

136,381



136,519



0.1 %

Insurance products

212,226



100,582



(52.6 %)

Online business [3]

2,251



7,246



221.9 %

Others

42,682



34,279



(19.7 %)

Subtotal

393,540



278,626



(29.2 %)

Total revenue

944,968



620,575



(34.3 %)

 



[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 







June 30,

2023



June 30, 

2024



Change

















Net Revenues from Overseas (RMB, million)

393.5



278.6



(29.2 %)

Number of Overseas Registered Clients

13,650



16,786



23.0 %

Number of Overseas Active Clients

1,993



3,244



62.8 %

Transaction Value of Overseas Investment Products (RMB, billion)

5.6



7.9



40.8 %

Number of Overseas Relationship Managers 

56



113



101.8 %

Overseas Assets Under Management (RMB, billion)

34.2



39.1



14.3 %

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

(In RMB, except for per ADS data and percentages) 

(unaudited) 



Three months ended 









June 30, 



June 30, 



Change 





2023



2024









RMB'000



RMB'000





















Net income attributable to Noah shareholders

315,428



99,787



(68.4 %)



Adjustment for share-based compensation

(3,055)



21,880



N.A.



Add: settlement reversal

-



(11,476)



N.A.



Less: tax effect of adjustments

(740)



4,139



N.A.



Adjusted net income attributable to Noah shareholders (non-GAAP)

313,113



106,052



(66.1 %)



 

Net margin attributable to Noah shareholders

 

33.5 %



 

16.2 %







Non-GAAP net margin attributable to Noah shareholders

33.2 %



17.2 %





















Net income attributable to Noah shareholders per ADS, diluted

4.54



1.42



(68.7 %)



Non-GAAP net income attributable to Noah shareholders per ADS, diluted

4.51



1.51



(66.5 %)

















 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results 

(In RMB, except for per ADS data and percentages) 

(unaudited) 



Six months ended 









June 30, 



June 30, 



Change 





2023



2024









RMB'000



RMB'000





















Net income attributable to Noah shareholders

559,638



231,278



(58.7 %)



Adjustment for share-based compensation

(9,244)



58,479



N.A.



Add: settlement reversal

-



(11,476)



N.A.



Less: tax effect of adjustments

(2,239)



11,061



N.A.



Adjusted net income attributable to Noah shareholders (non-GAAP)

552,633



267,220



(51.6 %)



 

Net margin attributable to Noah shareholders

 

32.1 %



 

18.3 %







Non-GAAP net margin attributable to Noah shareholders

31.7 %



21.1 %





















Net income attributable to Noah shareholders per ADS, diluted

8.05



3.30



(59.0 %)



Non-GAAP net income attributable to Noah shareholders per ADS, diluted

7.95



3.81



(52.1 %)

















 

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SOURCE Noah Holdings Limited

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