Noah Holdings Limited Announces Unaudited Financial Results for the First Quarter of 2021

Noah Holdings Limited (“Noah” or the “Company”) (NYSE: NOAH), a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors, today announced its unaudited financial results for the first quarter of 2021.

FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS                                                       

  • Net revenues for the first quarter of 2021 were RMB1,224.7 million (US$186.9 million), a 64.1% increase from the corresponding period in 2020, and a 28.5% increase from the fourth quarter of 2020. 
(RMB millions, except percentages)Q1 2020Q1 2021YoY Change
Wealth management552.6946.471.3%
Asset management165.4270.063.2%
Other businesses28.18.3(70.4%)
Total net revenues746.11,224.764.1%
  • Income from operations for the first quarter of 2021 was RMB502.4 million (US$76.7 million), a 96.0% increase from the corresponding period in 2020, and a 49.8% increase from the fourth quarter of 2020.
(RMB millions, except percentages)Q1 2020Q1 2021YoY Change
Wealth management166.2418.1151.6%
Asset management93.5114.522.5%
Other businesses(3.4)(30.2)762.9%
Total income from operations256.3502.496.0%
  • Net income attributable to Noah shareholders for the first quarter of 2021 was RMB454.1 million (US$69.3 million), an 86.9% increase from the corresponding period in 2020. 
  • Non-GAAP[1] net income attributable to Noah shareholders for the first quarter of 2021 was RMB461.9 million(US$70.5 million), a 79.7% increase from the corresponding period in 2020, and a 76.0% increase from the fourth quarter of 2020.

FIRST QUARTER 2021 OPERATIONAL UPDATES

Wealth Management Business

We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. Noah primarily distributes private equity, public securities and other products denominated in RMB and other currencies.

  • Total number of registered clients as of March 31, 2021 was 384,021, a 19.6% increase from March 31, 2020, and a 6.5% increase from December 31, 2020. 
  • Total number of active clients[2]which excluded mutual fund-only clients during the first quarter of 2021 was 6,299, a 54.6% increase from the first quarter of 2020, and a 19.6% increase from the fourth quarter of 2020. Including mutual fund-only clients, the number of clients who transacted with us during the first quarter of 2021 was 27,846, a 65.4% increase from the first quarter of 2020, and a 42.8% increase from the fourth quarter of 2020. 
  • Aggregate value of investment products distributed during the first quarter of 2021 was RMB27.1 billion (US$4.1 billion), including private equity products that was distributed directly by our asset management segment, representing a 16.8% increase from the first quarter of 2020, primarily due to a 62.5% growth of private equity products and a 23.4% growth of secondary market equity products. The aggregate value increased by 27.1% compared with the fourth quarter of 2020 due to the significant growth of public securities products offered by the Company. 
Product typeThree months ended March 31,
20202021
(RMB in billions, except percentages)
Public securities products19.182.4%21.579.4%
Private equity products[3] 2.912.6%4.817.6%
Credit products0.20.8%
Other products1.04.2%0.83.0%
All products23.2100.0%27.1100.0%
  • Coverage network in mainland China covered 82 cities as of March 31, 2021, compared with 78 cities as of March 31, 2020 and 80 cities as of December 31, 2020. 
  • Number of relationship managers was 1,246 as of March 31, 2021, a 3.1% increase from March 31, 2020, and a 1.2% increase from December 31, 2020. The turnover rate of core “elite” relationship managers was 0.3%, compared with 5.1% as of December 31, 2020.

Asset Management Business

Our asset management business is conducted through Gopher Asset Management Co., Ltd. (“Gopher Asset Management”), a leading multi-asset manager in China with overseas offices in Hong Kong, the United States and Canada. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities, credit to multi-strategy investments denominated in Renminbi and other currencies. 

  • Total assets under management as of March 31, 2021 were RMB154.1 billion (US$23.5 billion), a 0.8% increase from December 31, 2020 and a 4.7% decrease from March 31, 2020, primarily due to the voluntary redemptions of certain credit products.
Investment typeAs of 
December 31, 
2020

Growth
Distribution/ 
Redemption
As of
March 31, 
2021
(RMB billions, except percentages)
Private equity117.777.1%4.2121.979.1%
Real estate12.78.3%2.010.77.0%
Public securities[4]9.86.4%1.40.710.56.8%
Credit[5]5.53.6%0.45.13.3%
Multi-strategies7.14.6%0.11.35.93.8%
All Investments152.8100.0%5.74.4154.1100.0%

Other Businesses

Since the fourth quarter of 2020, our other businesses segment has been transitioning to “Noah Digital Intelligence”, aiming to develop a “turnkey asset management platform” (“TAMP”), to create an additional distribution channel beyond our wealth management, as well as to provide more comprehensive services and investment products. 

Ms. Jingbo Wang, co-founder and CEO of Noah, said, “In the first quarter of 2021, I am proud to report that our active clients number, including mutual funds, grew 65.4% year-on-year to record a historical high of almost 28,000, which enabled our net revenues to reach RMB1.2 billion, the highest single quarter in our history, a 64.1% increase year-on-year, consists of the strong growth in all revenue streams including one-time commissions, recurring service fees and performance-based income. As a result, non-GAAP net income was RMB461.9 million, also a historical high. Out of the total transaction value of RMB27.1 billion, public securities accounted for RMB21.5 billion, another record high since our listing, showcasing our continued success since the transformation for standardized products and services. In addition, there was only 0.3% turnover rate of our elite relationship managers during the quarter, evidencing the stability of our sales force after the transformation. We will stay client-centric while continuing to invest in human capital development and IT infrastructure to improve our client experience, as well as stay focused on major economic regions in the country where high net worth clients are concentrated.” 

FIRST QUARTER 2021 FINANCIAL RESULTS

Net Revenues

Net revenues for the first quarter of 2021 were RMB1,224.7 million (US$186.9 million), a 64.1% increase from the corresponding period in 2020, primarily driven by increased one-time commissions and performance-based income, partially offset by the decrease in other service fees.

  • Wealth Management Business

– Net revenues from one-time commissions for the first quarter of 2021 were RMB293.2 million (US$44.8 million), a 39.2% increase from the corresponding period in 2020, primarily due to a 23.4% increase in transaction value of secondary market equity investment products that we distributed. 

– Net revenues from recurring service fees for the first quarter of 2021 were RMB313.7 million (US$47.9 million), an 8.5% increase from the corresponding period in 2020. The increase was primarily due to the cumulative effect of public securities investment products with recurring service fees previously distributed.

– Net revenues from performance-based income for the first quarter of 2021 were RMB325.6 million (US$49.7 million), compared with RMB15.1 million in the corresponding period of 2020, representing a 20.6 times increase. The increase was primarily due to more performance-based income realized from public securities.

– Net revenues from other service fees for the first quarter of 2021 were RMB13.9 million (US$2.1 million), compared with RMB37.6 million in the corresponding period in 2020, primarily due to less value-added services we offered to our high net worth clients.

  • Asset Management Business

– Net revenues from one-time commissions for the first quarter of 2021 was RMB30.0 million (US$4.6 million), represents the one-time commissions earned from all private equity products that we distributed directly from our asset management segment since the fourth quarter of 2020 to comply with new regulation. We still distributed other investment products from our wealth management business segment.

– Net revenues from recurring service fees for the first quarter of 2021 were RMB161.2 million (US$24.6 million), a 0.5% increase from the corresponding period in 2020. 

– Net revenues from performance-based income for the first quarter of 2021 were RMB77.5 million (US$11.8 million), compared with RMB4.6 million in the corresponding period of 2020. The increase was primarily due to more performance-based income realized from private equity products.

  • Other Businesses

– Net revenues for the first quarter of 2021 were RMB8.3 million (US$1.3 million), a 70.4% decrease from the corresponding period in 2020. The decrease was primarily due to continuous reducing volume of loan origination since the second half year of 2019.

Operating Costs and Expenses

Operating costs and expenses for the first quarter of 2021 were RMB722.3 million (US$110.3 million), a 47.5% increase from the corresponding period in 2020. Operating costs and expenses primarily consisted of compensation and benefits of RMB582.1 million (US$88.9 million), selling expenses of RMB83.5 million (US$12.7 million), general and administrative expenses of RMB80.3 million (US$12.3 million), provision of credit losses of RMB3.4 million (US$0.5 million) and other operating expenses of RMB27.1 million (US$4.1 million).

  • Operating costs and expenses for the wealth management business for the first quarter of 2021 were RMB528.3 million (US$80.6 million), a 36.7% increase from the corresponding period in 2020, primarily due to less compensation and benefits as well as less expenses incurred in the first quarter of 2020 due to the COVID-19 pandemic, and partially offset by a decrease in other operating expense. 
  • Operating costs and expenses for the asset management business for the first quarter of 2021 were RMB155.6 million (US$23.7 million), a 116.3% increase from the corresponding period in 2020, primarily due to less compensation and benefits as well as less expenses incurred in the first quarter of 2020 due to the COVID-19 pandemic. 
  • Operating costs and expenses for other businesses for the first quarter of 2021 were RMB38.5 million (US$5.9 million), a 22.1% increase from the corresponding period in 2020, primarily due to less compensation and benefits incurred in the first quarter of 2020 due to the COVID-19 pandemic.

Operating Margin

Operating margin for the first quarter of 2021 was 41.0%, compared with 34.3% for the corresponding period in 2020. 

  • Operating margin for the wealth management business for the first quarter of 2021 was 44.2%, compared with 30.1% for the corresponding period in 2020. 
  • Operating margin for the asset management business for the first quarter of 2021 was 42.4%, compared with 56.5% for the corresponding period in 2020. 
  • Loss from operation for the other businesses for the first quarter of 2021 was RMB30.2 million (US$4.6 million), compared with an operating loss of RMB3.5 million for the corresponding period in 2020, due to less revenue generated in the first quarter of 2021. 

Investment Income

Investment income for the first quarter of 2021 was RMB34.4 million (US$5.2 million), compared with RMB17.6 millionfor the corresponding period in 2020. The increase was primarily related to the fluctuation of fair value of equity securities.

Income Tax Expenses

Income tax expensesfor the first quarter of 2021 were RMB129.8 million (US$19.8 million), a 90.2% increase from the corresponding period in 2020. The increase was primarily due to higher taxable income.

Net Income

  • Net Income

– Net income for the first quarter of 2021 was RMB452.9 million (US$69.1 million), an 85.9% increase from the corresponding period in 2020.

– Net margin for the first quarter of 2021 was 37.0%, up from 32.7% for the corresponding period in 2020.

– Net income attributable to Noah shareholders for the first quarter of 2021 was RMB454.1 million (US$69.3 million), an 86.9% increase from the corresponding period in 2020.

– Net margin attributable to Noah shareholders for the first quarter of 2021 was 37.1%, up from 32.6% for the corresponding period in 2020.

– Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2021 was RMB6.77 (US$1.03) and RMB6.72 (US$1.03), respectively, compared with RMB3.94 and RMB3.92 respectively, for the corresponding period in 2020.

  • Non-GAAP Net Income Attributable to Noah Shareholders 

– Non-GAAP net income attributable to Noah shareholders for the first quarter of 2021 was RMB461.9 million(US$70.5 million), a 79.7% increase from the corresponding period in 2020 and a 76.0% increase from the fourth quarter of 2020.

– Non-GAAP net margin attributable to Noah shareholders for the first quarter of 2021 was 37.7%, up from 34.5% for the corresponding period in 2020.

– Non-GAAP net income attributable to Noah shareholders per diluted ADS for the first quarter of 2021 was RMB6.84 (US$1.04), up from RMB4.15 for the corresponding period in 2020.

Balance Sheet and Cash Flow

As of March 31, 2021, the Company had RMB4,904.3 million (US$748.5 million) in cash and cash equivalents, compared with RMB5,005.2 million as of December 31, 2020 and RMB4,045.8 million as of March 31, 2020.

Net cash inflow from the Company’s operating activities during the first quarter of 2021 was RMB495.9 million (US$75.7 million), primarily due to operating cash inflow generated by net income.

Net cash outflow from the Company’s investing activities during the first quarter of 2021 was RMB68.9 million (US$10.5 million), primarily due to the net loans initiated to borrowers.

Net cash outflow from the Company’s financing activities was RMB533.7 million (US$81.5 million) in the first quarter of 2021, primarily due to repurchasing ordinary shares as well as acquiring additional shares from non-controlling interest shareholder in one of our subsidiaries.

RECENT DEVELOPMENTS

On May 9, 2021, the Company, through certain of its subsidiaries, entered into definitive agreements (“Transaction Agreements”) with certain subsidiaries and affiliates of Sunny World Group to purchase new office premises, with a gross floor area of approximately 72,000 square meters in Shanghai Hongqiao Central Business District for a total cash consideration of approximately RMB2.2 billion (US$340.0 million). The premises will primarily be used as our global headquarters to meet the demand arising from the continuing growth of the Company’s businesses and branding image.

The Company plans to finance the transaction by cash from our balance sheet. The consideration will be made in installments according to the condition precedents set up by Transaction Agreements. The transaction is subject to the satisfaction of certain conditions in the Transaction Agreements.

Ms. Jingbo Wang, co-founder and CEO of Noah, commented,” After fifteen years of operations, Noah is very glad to purchase this commercial property, consisting of four high-end, well-designed office buildings located at the center of the Hongqiao comprehensive transportation hub in Shanghai, one of the nation’s busiest transportation hubs, to be our new global headquarters. I believe this space will also serve as an upgraded client interface for Noah and robust activity center connecting clients in Eastern China to us, enhancing their overall client experience and improving our corporate image.”

[1] Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring 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 high net worth clients who purchase investment products distributed or provided by Noah during that given period, excluding clients who transacted only on our online mutual fund platform.
[3]  Since the fourth quarter of 2020, we distributed all private equity products directly from our asset management business, but for consistency purposes, we included those transaction values herein. 
[4] The asset distribution/redemption of public securities also includes market appreciation or depreciation.
[5] Since this quarter, we reclassified all remaining mezzanine financing products linked to corporate merger and acquisitions and buy outs from credit to private equity in the amount of RMB4.7 billion, considering its nature is more akin to equity than credit. We have also revised the comparative period presentation to conform to current period presentation.

2021 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2021 will be in the range of RMB1.2 billion to RMB1.3 billion. This estimate reflects management’s current business outlook and is subject to change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company’s first quarter 2021 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

 Conference call details 
Date/Time Monday, May 10, 2021 at 8:00 p.m., U.S. Eastern TimeTuesday, May 11, 2021 at 8:00 a.m., Hong Kong Time
Dial in details
– United States Toll Free1-888-317-6003
– Mainland China Toll Free4001-206-115
– Hong Kong Toll Free800-963-976
– International1-412-317-6061
Conference TitleNoah Holdings 1Q21 Earnings Conference Call
Participant Elite Entry Number0955316

Participants will need to dial in 10-15 minutes early and use the above Elite Entry Number in order to join the conference. A telephone replay will be available starting one hour after the end of the conference call until May 17, 2021 at +1-877-344-7529 (US Toll Free) or 1-412-317-0088 (International Toll). The replay access code is 10154694.

A live and archived webcast of the conference call will be available at Noah’s investor relations website under the News & Events section at 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-recurring 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) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. In the first quarter of 2021, Noah distributed RMB27.1 billion (US$4.1 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB154.1 billion (US$23.5 billion) as of March 31, 2021.

Noah’s wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,246 relationship managers across 82 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, United States, Canada and Singapore. The Company’s wealth management business had 384,021 registered clients as of March 31, 2021. As a leading alternative multi-asset manager in China, Gopher Asset Management manages private equity, real estate, public securities, credit and multi-strategy investments denominated in Renminbi and other currencies. The Company also provides lending and other services. 

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

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the first quarter of 2021 ended March 31, 2021 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 RMB6.5518 to US$1.00, the effective noon buying rate for March 31, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the outlook for 2021 and quotations from management in this announcement, as well as Noah’s strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah’s actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its 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, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law. 

— FINANCIAL AND OPERATIONAL TABLES FOLLOW —

Noah Holdings Limited 
Condensed Consolidated Balance Sheets
(unaudited)
As of
December 31,March 31, March 31, 
202020212021
RMB’000RMB’000USD’000
Assets
Current assets:
Cash and cash equivalents5,005,2114,904,316748,545
Restricted cash9,9939,9951,526
Short-term investments114,928143,14021,847
Accounts receivable, net 434,458444,42167,832
Loans receivable, net418,947407,59562,211
Amounts due from related parties520,178715,396109,191
Other current assets 199,447203,93831,127
Total current assets 6,703,1626,828,8011,042,279
Long-term investments, net536,384556,16684,888
Investment in affiliates1,264,6851,268,909193,673
Property and equipment, net248,669235,97436,017
Operating lease right-of-use assets, net274,154268,39540,965
Deferred tax assets224,240223,78334,155
Other non-current assets 148,292214,80732,786
Total Assets9,399,5869,596,8351,464,763
Liabilities and Equity
Current liabilities:
Accrued payroll and welfare expenses 705,622844,021128,823
Income tax payable140,777244,51837,321
Deferred revenues71,61385,14312,995
Other current liabilities432,650448,12768,398
Contingent liabilities530,433532,61281,292
Total current liabilities1,881,0952,154,421328,829
Operating lease liabilities, non-current194,384180,30827,520
Deferred tax liabilities45,88146,1397,042
Other non-current liabilities855844129
Total Liabilities 2,122,2152,381,712363,520
Equity7,277,3717,215,1231,101,243
Total Liabilities and Equity9,399,5869,596,8351,464,763
Noah Holdings Limited
Condensed Consolidated Income Statements
(In RMB’000, except for ADS data, per ADS data and percentages)
(unaudited)
Three months ended 
March 31,March 31,March 31,Change
202020212021
Revenues:RMB’000RMB’000USD’000
Revenues from others:
     One-time commissions207,185278,70442,53934.5%
Recurring service fees148,457220,51333,65748.5%
Performance-based income14,618276,52442,2061,791.7%
Other service fees66,60823,7133,619(64.4%)
Total revenues from others436,868799,454122,02183.0%
Revenues from funds Gopher manages:
One-time commissions4,74946,1467,043871.7%
Recurring service fees303,450256,69739,180(15.4%)
Performance-based income5,175128,55619,6212,384.2%
Total revenues from funds Gopher 
   manages
313,374431,39965,84437.7%
Total revenues750,2421,230,853187,86564.1%
Less: VAT related surcharges (4,125)(6,117)(934)48.3%
Net revenues746,1171,224,736186,93164.1%
Operating costs and expenses:
Compensation and benefits
Relationship manager 
compensation
(170,052) (206,872)(31,575)21.7%
Others(194,787)(375,253)(57,275)92.6%
Total compensation and benefits(364,839)(582,125)(88,850)59.6%
Selling expenses(44,540)(83,455)(12,738)87.4%
General and administrative 
   expenses 
 (63,685) (80,285) (12,254) 26.1%
Provision for credit losses(2,809)(3,407)(520)21.3%
Other operating expenses (32,617)(27,088)(4,134)(17.0%)
Government subsidies 18,63554,0148,244189.9%
Total operating costs and 
   expenses 
(489,855)(722,346)(110,252)47.5%
Income from operations 256,262502,39076,67996.0%
Other income:
Interest income 22,17022,9273,4993.4%
Investment income 17,56634,3615,24595.6%
Other income (expense)858(486)(74)N.A.
Total other income40,59456,8028,67039.9%
Income before taxes and income 
   from equity in affiliates
296,856559,19285,34988.4%
Income tax expense(68,276)(129,846)(19,818)90.2%
Income from equity in affiliates15,07623,5133,58956.0%
Net income243,656452,85969,12085.9%
Less: net income (loss) attributable 
  to non-controlling interests
631(1,234)(188)N.A.
Net income attributable to Noah 
  shareholders 
243,025454,09369,30886.9%
Income per ADS, basic3.946.771.0371.8%
Income per ADS, diluted3.926.721.0371.4%
 Margin analysis:
Operating margin34.3%41.0%41.0%
Net margin32.7%37.0%37.0%
 Weighted average ADS equivalent[1]:
Basic61,619,85267,091,78067,091,780
Diluted61,991,11767,572,03867,572,038
ADS equivalent outstanding at end 
  of period
 61,635,280 59,976,690 59,976,690
 [1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two 
ADSs.
Noah Holdings Limited 
Condensed Comprehensive Income Statements 
(unaudited)
Three months ended 
March 31,March 31,March 31,Change
202020212021
RMB’000RMB’000USD’000
Net income243,656452,85969,12085.9%
Other comprehensive income, net of tax:
Foreign currency translation 
adjustments
 37,319 8,4091,283(77.5%)
Fair value fluctuation of available for
sale Investment (after tax)
 (4) –N.A.
Comprehensive income280,971461,26870,40364.2%
Less: Comprehensive income (loss) 
         attributable to non-controlling 
         interests
626(1,201)(183)N.A.
Comprehensive income attributable to 
         Noah shareholders
280,345462,46970,58665.0%
Noah Holdings Limited
Supplemental Information 
(unaudited) 
As of 
March 31, 
2020
March 31, 
2021
Change
Number of registered clients 321,148384,02119.6%
Number of relationship managers 1,2091,2463.1%
Number of cities under coverage in mainland 
   China
78825.1%
Three months ended 
March 31, 
2020
March 31, 
2021
Change
(in millions of RMB, except number of active clients and 
percentages)
Number of active clients[6] 4,0756,29954.6%
Number of active clients including mutual fund-
only clients
16,83127,84665.4%
Transaction value: 
Private equity products 2,9314,76362.5%
Public securities products19,11121,50912.5%
Credit products 183N.A.
Other products969820(15.4%)
Total transaction value23,19427,09216.8%
[6]  “Active clients” for a given period refers to registered high net worth clients who purchase investment products distributed or provided by Noah during that given period, excluding clients who only transacted on our online mutual fund platform.
Noah Holdings Limited 
Segment Condensed Income Statements 
(unaudited) 
Three months ended March 31, 2021
Wealth 
Management
Business
Asset 
Management
Business
Other 
Businesses 
Total
RMB’000RMB’000RMB’000RMB’000
Revenues:
Revenues from others:
One-time commissions278,463241278,704
Recurring service fees219,3191,194220,513
Performance-based income276,524276,524
Other service fees14,0171,3908,30623,713
Total revenues from others788,3232,8258,306799,454
Revenues from funds Gopher manages:
One-time commissions16,27029,87646,146
Recurring service fees95,971160,726256,697
Performance-based income50,72677,830128,556
Total revenues from funds Gopher
    manages
162,967268,432431,399
Total revenues951,290271,2578,3061,230,853
Less: VAT related surcharges (4,838)(1,229)(50)(6,117)
Net revenues946,452270,0288,2561,224,736
Operating costs and expenses:
Compensation and benefits
Relationship manager compensation(206,790)(82)(206,872)
Other compensations(215,289)(138,854)(21,110)(375,253)
Total compensation and benefits(422,079)(138,936)(21,110)(582,125)
Selling expenses(66,827)(12,001)(4,627)(83,455)
General and administrative expenses (55,924)(18,094)(6,267)(80,285)
Provision for credit losses(3,407)(3,407)
Other operating expenses(22,083)(1,805)(3,200)(27,088)
Government subsidies 38,59615,28313554,014
Total operating costs and expenses (528,317)(155,553)(38,476)(722,346)
Income (loss) from operations418,135114,475(30,220)502,390
Noah Holdings Limited
Segment Condensed Income Statements 
 (unaudited) 
Three months ended March 31, 2020
Wealth Management BusinessAsset ManagementBusinessOther BusinessesTotal
RMB’000RMB’000RMB’000RMB’000
Revenues:
Revenues from others:
One-time commissions206,944241207,185
Recurring service fees147,763694148,457
Performance-based income14,61814,618
Other service fees37,81913428,65566,608
Total revenues from others407,1441,06928,655436,868
Revenues from funds Gopher 
   manages:
One-time commissions4,7494,749
Recurring service fees142,860160,590303,450
Performance-based income5564,6195,175
Total revenues from funds Gopher 
   manages 
148,165165,209313,374
Total revenues555,309166,27828,655750,242
Less: VAT related surcharges (2,670)(868)(587)(4,125)
Net revenues552,639165,41028,068746,117
Operating costs and expenses:
Compensation and benefits
Relationship manager 
compensation
 (170,052) – – (170,052)
Other compensations(118,227)(61,313)(15,247)(194,787)
Total compensation and benefits(288,279)(61,313)(15,247)(364,839)
Selling expenses(36,555)(7,314)(671)(44,540)
General and administrative 
   expenses 
(47,582)(10,730)(5,373)(63,685)
Provision for credit losses(2,809)(2,809)
Other operating expenses(23,602)(1,546)(7,469)(32,617)
Government subsidies9,6078,9814718,635
Total operating costs and expenses (386,411)(71,922)(31,522)(489,855)
Income (loss) from operations 166,22893,488(3,454)256,262
Noah Holdings Limited
Supplement Revenue Information for Segment
(unaudited) 
Three months ended March 31, 2021
Wealth 
Management
Business
Asset 
Management
Business
Other Businesses Total
RMB’000RMB’000RMB’000RMB’000
Revenues:
Mainland China697,471187,6218,306893,398
Hong Kong230,62176,431307,052
Others23,1987,20530,403
Total revenues951,290271,2578,3061,230,853
Three months ended March 31, 2020
Wealth 
Management
Business
Asset 
Management
Business
Other Businesses Total
RMB’000RMB’000RMB’000RMB’000
Revenues:
Mainland China368,817145,08628,655542,558
Hong Kong140,76516,567157,332
Others45,7274,62550,352
Total revenues555,309166,27828,655750,242
Noah Holdings Limited
Reconciliation of GAAP to Non-GAAP Results 
(In RMB, except for per ADS data and percentages) 
(unaudited) [7]
Three months ended 
March 31, March 31, Change 
20202021
RMB’000RMB’000
Net income attributable to Noah shareholders243,025454,09386.9%
Adjustment for share-based compensation18,29110,144(44.5%)
Less: Tax effect of adjustments4,2352,354(44.4%)
Adjusted net income attributable to Noah shareholders 
    (non-GAAP)
257,081461,88379.7%
 Net margin attributable to Noah shareholders32.6%37.1%
Non-GAAP net margin attributable to Noah shareholders34.5%37.7%
Net income attributable to Noah shareholders per ADS, 
    diluted
3.926.72 71.4%
Non-GAAP net income attributable to Noah shareholders 
    per ADS, diluted
4.156.8464.8%
[7]   Noah’s Non-GAAP financial measures reflect the respective most directly comparable GAAP financial 
measures excluding the effects of all forms of share-based compensation and net of relevant tax impact, if 
any.

SOURCE Noah Holdings Limited

Related Links

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