Noah Holdings Limited Announces Unaudited Financial Results for the Fourth Quarter and Full Year 2012 and Declares Cash

  Noah Holdings Limited Announces Unaudited Financial Results for the Fourth
            Quarter and Full Year 2012 and Declares Cash Dividend

PR Newswire

SHANGHAI, Feb. 25, 2013

SHANGHAI, Feb. 25, 2013 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the
"Company") (NYSE: NOAH), a leading service provider focusing on distributing
wealth management products to the high net worth population in China, today
announced its unaudited financial results for the fourth quarter of 2012 and
the full year ended December 31, 2012.

FOURTH QUARTER 2012 FINANCIAL HIGHLIGHTS

  oNet revenues for the fourth quarter of 2012 were US$25.1 million, a 73.7%
    increase from the corresponding period in 2011.
  oIncome from operations for the fourth quarter of 2012 was US$6.8 million,
    a 224.2% increase from the corresponding period in 2011.
  oNet income attributable to Noah shareholders for the fourth quarter of
    2012 was US$6.3 million, a 79.6% increase from the corresponding period in
    2011. Non-GAAP[1] net income attributable to Noah shareholders for the
    fourth quarter of 2012 was US$7.6 million, a 77.8% increase from the
    corresponding period in 2011.
  oNet income per basic and diluted ADS for the fourth quarter of 2012 were
    both US$0.12. Non-GAAP net income per diluted ADS for the fourth quarter
    of 2012 was US$0.14.

FULL YEAR 2012 FINANCIAL HIGHLIGHTS

  oNet revenues for the full year 2012 were US$86.7 million, a 20.1% increase
    from 2011.
  oIncome from operations for the full year 2012 was US$25.8 million, a 3.0%
    increase from 2011.
  oNet income attributable to Noah shareholders for the full year 2012 was
    US$22.8 million, a 4.8% decrease from 2011. Non-GAAP net income
    attributable to Noah shareholders for the full year 2012 was US$26.8
    million, a 2.7% increase from 2011.
  oNet income per basic and diluted ADS for the full year 2012 were both
    US$0.41. Non-GAAP net income per diluted ADS for the full year 2012 was
    US$0.48.

FOURTH QUARTER 2012 AND FULL YEAR 2012 OPERATIONAL HIGHLIGHTS

  oTotal number of registered clients[2] as of December 31, 2012 increased by
    48.5% year-over-year to 40,305; this figure includes 38,833 registered
    individual clients, 1,365 registered enterprise clients and 107 wholesale
    clients that have entered into cooperation agreements with the Company.
  oActive clients[3] during the fourth quarter of 2012 were 1,636, a 74.6%
    increase from the corresponding period in 2011. The aggregate value of
    wealth management products distributed by the Company[4] during the fourth
    quarter of 2012 was RMB6.3 billion (approximately US$1.0 billion)[5], a
    46.6% increase from the corresponding period in 2011. Of this aggregate
    value, fixed income products accounted for 80.4%, private equity fund
    products accounted for 19.4%, and other products, including securities
    investment funds and mutual fund products, accounted for 0.2%.  The
    average transaction value per client[6] in the fourth quarter of 2012 was
    RMB3.8 million (approximately US$0.6 million), a 16.0% decrease from the
    corresponding period in 2011, primarily due to changes in product mix as
    clients purchased mutual fund products, which the Company started
    distributing since the second quarter of 2012, and more fixed income
    products. Both product categories have lower minimum investment amount
    than private equity fund products.
  oCoverage network as of December 31, 2012 included 57 branches, down from
    59 branches as of December 31, 2011 but the same as of September 30, 2012.
    The number of relationship managers decreased to 459 as of December 31,
    2012, down from 510 as of December 31, 2011 and 501 as of September 30,
    2012.
  oActive clients for the full year 2012 were 4,152, a 34.2% increase from
    2011. The aggregate value of wealth management products distributed by the
    Company for the full year 2012 was RMB25.1 billion (approximately US$4.0
    billion), an 11.2% increase from 2011. Of this aggregate value, fixed
    income products accounted for 68.5%, private equity fund products
    accounted for 28.0%, and other products, including securities investment
    funds and mutual fund products, accounted for 3.5%. The average
    transaction value per client for the full year 2012 was RMB6.1 million
    (approximately US$1.0 million), a 17.1% decrease from 2011, primarily due
    to changes in product mix as clients purchased mutual fund products, which
    the Company started distributing since the second quarter of 2012, and
    more fixed income products. Both product categories have lower minimum
    investment amount than private equity fund products.

[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial
measures as adjusted by excluding the effects of all forms of share-based
compensation.
[2] "Total number of registered clients" includes clients registered with Noah
Upright (Shanghai) Fund Investment Consulting Co., Ltd., Noah's mutual fund
distribution business, which began operations in the second quarter of 2012.
[3] "Active clients" refers to those registered clients who purchased wealth
management products distributed by Noah during any given period. Active
clients include clients who have purchased mutual fund products that were
distributed since the second quarter of 2012.


[4] "The aggregate value of wealth management products distributed by the
Company" includes, among others, (i) the incremental value of mutual fund
products distributed by the Company since the second quarter of 2012; and (ii)
the value of real estate fund products managed and distributed by the Company.


[5] The amount in RMB was translated into U.S. dollars using the average rate
for the period as set forth in the H.10 statistical release of the Federal
Reserve Board.


[6] "Average transaction value per client" refers to the average value of
wealth management products distributed by Noah that are purchased by active
clients during a given period.

Ms. Jingbo Wang, Co-founder, Chairwoman of the Board of Directors and Chief
Executive Officer, commented, "We concluded 2012 with a strong fourth quarter,
with transaction value increasing 46.6% year-over-year to over US$1.0 billion,
and full year non-GAAP net income exceeding our forecast. Despite a
challenging 2012, we made a number of strategic investments that will lay
further foundation for sustainable growth. They include a mutual fund
distribution license and an offshore Hong Kong office, both of which will
increase our product portfolio and client engagement. In addition, we have
achieved significant growth in our asset management business. We began
managing real estate fund products in the second half of the year. With over
US$1.2 billion of assets under management, including our fund of private
equity funds, our asset management business will complement our distribution
business, providing another engine for growth." Ms. Wang further remarked, "We
are also pleased to announce our second annual dividend, which we believe is
in the best interests of our shareholders."

Mr. Tom Wu, Chief Financial Officer, said, "Robust results of our fourth
quarter, and second half of 2012, reflect significant investments and
improvements we have made in our business, which we expect to leverage in the
coming years. In 2013, we will continue to focus on growth, profitability and
productivity. Our second annual dividend again reflects our commitment to
shareholders and the Company's strong cash flow."

FOURTH QUARTER 2012 AND FULL YEAR 2012 FINANCIAL RESULTS

Net Revenues

Net revenues for the fourth quarter of 2012 were US$25.1 million, a 73.7%
increase from the corresponding period in 2011, due to increases in both
one-time commission revenues and recurring service fees.

Net revenues from one-time commissions for the fourth quarter of 2012 were
US$11.6 million, a 53.6% increase from the corresponding period in 2011. The
year-over-year increase was primarily due to increases in both transaction
value and average commission rate.

Net revenues from recurring service fees for the fourth quarter of 2012 were
US$13.1 million, a 90.1% increase from the corresponding period in 2011. The
year-over-year increase was mainly due to the cumulative effect of private
equity funds previously distributed by the Company and an increase in assets
under management by the Company in the second half of 2012, primarily real
estate funds managed by the Company.

Net revenues for the full year 2012 were US$86.7 million, a 20.1% increase
from 2011, due to an increase of US$17.1 million in net revenues from
recurring service fees, which were partially offset by a decrease in net
revenues from one-time commissions.

Net revenues from one-time commissions for the full year 2012 were US$46.2
million, a 7.0% decrease from 2011 due to a decrease in average commission
rate in 2012, despite an increase in transaction value.

Net revenues from recurring service fees for the full year 2012 were US$39.6
million, a 76.3% increase from 2011, mainly driven by the cumulative effect of
private equity fund and securities investment fund products distributed
previously and an increase in assets under management in second half of 2012,
primarily real estate funds managed by the Company.

Operating Margin

Operating margin for the fourth quarter of 2012 was 27.0%, as compared to
14.5% for the corresponding period in 2011. The year-over-year increase for
the fourth quarter of 2012 was driven by growth of net revenues exceeding
those in operating cost and expenses; Operating margin for the full year 2012
was 29.8%, as compared to 34.8% for 2011. The decrease in operating margin for
the full year 2012 was primarily due to an increase in operating cost and
expenses mainly in employee compensation and rental expenses outpacing growth
in net revenues.

Operating cost and expenses for the fourth quarter of 2012, including cost of
revenues, selling expenses, G&A expenses and other operating income, were
US$18.3 million, a 48.2% increase from the corresponding period in 2011.
Operating cost and expenses for the full year 2012 were US$60.9 million, a
29.3% increase from 2011.

Cost of revenues for the fourth quarter of 2012 totaled US$4.8 million, a
25.4% increase from the corresponding period in 2011. Cost of revenues for the
full year 2012 totaled US$18.0 million, a 21.4% increase from 2011. The
year-over-year increases for the fourth quarter of 2012 and the full year 2012
were both primarily due to increases in compensation expenses paid to
relationship managers as a result of the increase in transaction value.

Selling expenses for the fourth quarter of 2012 were US$7.6 million, a 40.6%
increase from the corresponding period in 2011. Selling expenses as a
percentage of net revenues for the fourth quarter of 2012 was 30.4%, as
compared to 37.5% for the corresponding period in 2011. Selling expenses for
the full year 2012 were US$27.3 million, a 41.9% increase from 2011. The
year-over-year increases for the fourth quarter of 2012 and the full year 2012
were both primarily due to increases in personnel expenses, rental expenses,
general marketing activities and share-based compensation expenses as the
Company strengthened its selling and marketing functions.

G&A expenses for the fourth quarter of 2012 were US$6.2 million, a 96.5%
increase from the corresponding period in 2011. G&A expenses as a percentage
of net revenues for the fourth quarter of 2012 was 24.6%, as compared to 21.7%
for the corresponding period in 2011. G&A expenses for the full year 2012 were
US$19.8 million, a 46.3% increase from 2011. The year-over-year increases for
the fourth quarter of 2012 were primarily due to increases in personnel
expenses, professional consulting fees, and share-based compensation; and for
full year 2012 were primarily due to increases in personnel expenses,
share-based compensation and depreciation expenses.

Other operating income for the fourth quarter of 2012 was US$0.3 million, as
compared to US$17.6 thousand for the corresponding period in 2011. Other
operating income for the full year 2012 was US$4.3 million, as compared to
US$0.6 million for 2011. Other operating income includes government subsidies
received in the PRC from local governments for general corporate purposes.

Income Tax Expenses

Income tax expenses  for the fourth quarter of 2012 were US$2.7 million, a
538.1% increase from the corresponding period in 2011. The year-over-year
increase for the fourth quarter of 2012 was due to an increase in taxable
income and changes in deferred tax assets. Income tax expenses for the full
year 2012 were US$9.0 million, a 15.4% increase from US$7.8 million in 2011.
The increase for the full year 2012 was primarily due to changes in deferred
tax assets with taxable income essentially unchanged on a year-over-year
basis.

Net Income

Net income attributable to Noah shareholders for the fourth quarter of 2012
was US$6.3 million, a 79.6% increase from the corresponding period in 2011.
Net margin for the fourth quarter of 2012 was 25.6%, as compared to 24.5% for
the corresponding period in 2011. Net income per basic and diluted ADS for the
fourth quarter of 2012 were both US$0.12, as compared to US$0.06 for the
corresponding period in 2011. Net income attributable to Noah shareholders for
the full year 2012 was US$22.8 million, a 4.8% decrease from 2011. Net margin
for the full year 2012 was 26.4%, as compared to 33.2% for 2011. Net income
per basic and diluted ADS for the full year 2012 were both US$0.41 as compared
to US$0.43 and US$0.42, respectively for 2011

Non-GAAP net income attributable to Noah shareholders for the fourth quarter
of 2012 was US$7.6 million, a 77.8% increase from the corresponding period in
2011. Non-GAAP net margin for the fourth quarter of 2012 was 30.1%, as
compared to 29.4% for the corresponding period in 2011. Non-GAAP net income
per diluted ADS for the fourth quarter of 2012 was US$0.14, as compared to
US$0.07 for the corresponding period in 2011. Non-GAAP net income attributable
to Noah shareholders for the full year 2012 was US$26.8 million, a 2.7%
increase from 2011. Non-GAAP net margin for the full year 2012 was 30.9%, as
compared to 36.2% for 2011. Non-GAAP net income per diluted ADS for the full
year 2012 was US$0.48, as compared to US$0.46 for 2011.

Balance Sheet and Cash Flow

As of December 31, 2012, the Company had US$119.6 million in cash and cash
equivalents, a decrease of US$2.4 million from US$122.0 million as of
September 30, 2012. In the fourth quarter of 2012, the Company generated
US$9.4 million in operating activities and invested US$11.2 million in
investment activities mainly for fixed income products. In the fourth quarter
of 2012, the Company used US$2.3 million to repurchase ADSs and received
US$0.6 million from third-party minority investments in PRC affiliated
entities of the Company.

On May 22, 2012, the Company's Board of Directors (the "Board") authorized a
share repurchase program of up to US$30 million worth of its issued and
outstanding ADSs over the course of one year. As of December 31, 2012, the
Company has repurchased 1,690,278 ADSs for approximately US$8.5 million,
inclusive of transaction charges.

DECLARATION OF CASH DIVIDEND

Noah also announced today that its Board has authorized and approved the
Company's payment of an annual cash dividend of US$0.14 per American
depositary share ("ADS"), or US$0.28 per ordinary share (two ADSs represent
one ordinary share). The annual dividend will be payable on or about April 9,
2013 to holders of ordinary shares (which includes holders of ADSs) of record
as of the close of business on March 20, 2013. Dividends to be paid to the
Company's ADS holders through the depositary bank will be subject to the terms
of the deposit agreement, including the fees and expenses payable thereunder.
Declaration and payment of future dividends is at the discretion of the Board
and may be adjusted as the Board may deem necessary or appropriate in the
future.

2013 OUTLOOK

The Company estimates that non-GAAP net income attributable to Noah
shareholders for the full year 2013 is expected to be in a range of US$33.0
million and US$37.0 million, representing a year-over-year increase in the
range of 23.0% and 37.9%. This estimate reflects management's current business
outlook and is subject to change.

CONFERENCE CALL

Senior management will host a conference call on Monday, February 25, 2013 at
8:00 pm (Eastern) / 5:00 pm (Pacific) / 9:00 am (Hong Kong, Tuesday, February
26, 2013) to discuss its fourth quarter 2012 unaudited financial results and
recent business activity. The conference call may be accessed by calling the
following numbers:

                        Toll Free       Toll
- United States         +1-866-519-4004 +1-718-354-1231
- China
 - Domestic        800-819-121
 - Domestic Mobile 400-620-8038
- Hong Kong             800-93-0346
- United Kingdom        080-8234-6646
Conference ID #         94967423

A telephone replay will be available shortly after the call until March 4,
2013 at +1-646-254-3697 (US Local Toll) or +61-2-8199-0299 (International).
Conference ID # 94967423.

A live webcast of the conference call and replay will be available in the
investor relations section of the Company's website at http://ir.noahwm.com.

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

In addition to disclosing financial results prepared in accordance with U.S.
GAAP, the Company's earnings release contains non-GAAP financial measures that
exclude the effects of all forms of share-based compensation. The
reconciliation of these non-GAAP financial measures to the nearest GAAP
measures is set forth in the table captioned "Reconciliation of GAAP to
Non-GAAP Results" below.

The non-GAAP financial measures disclosed by the Company should not be
considered a substitute for financial measures prepared in accordance with
U.S. GAAP. The financial results reported in accordance with U.S. GAAP and
reconciliation of GAAP to non-GAAP results should be carefully evaluated. The
non-GAAP financial measure used by the Company may be prepared differently
from and, therefore, may not be comparable to similarly titled measures used
by other companies.

When evaluating the Company's operating performance in the periods presented,
management reviewed non-GAAP net income results reflecting adjustments to
exclude the impacts of share-based compensation to supplement U.S. GAAP
financial data. As such, the Company believes that the presentation of the
non-GAAP net income, non-GAAP income per diluted ADS and non-GAAP net margin
provides important supplemental information to investors regarding financial
and business trends relating to the Company's financial condition and results
of operations in a manner consistent with that used by management. Pursuant to
U.S. GAAP, the Company recognized significant amounts of expenses for the
restricted shares and share options in the periods presented. To make
financial results comparable period by period, the Company utilized the
non-GAAP financial results to better understand its historical business
operations.

ABOUT NOAH HOLDINGS LIMITED

Noah Holdings Limited is a leading service provider focusing on distributing
wealth management products to the high net worth population in China. Noah
primarily distributes wealth management products that are originated in China,
including primarily fixed income products, private equity funds, securities
investment funds, investment-linked insurance products and mutual fund
products. Noah also manages proprietary fund products. With over 450
relationship managers in 57 branch offices as of December 31, 2012, Noah's
total coverage network encompasses China's most economically developed regions
where the high net worth population is concentrated. Through this extensive
coverage network, product sophistication, and client knowledge, the Company
caters to the wealth management needs of China's high net worth population.
For more information please visit the Company's website at
http://www.noahwm.com.

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 the full year  2013 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 actual results to
differ materially from those contained in any forward-looking statement,
including but not limited to the following: our goals and strategies; our
future business development, financial condition and results of operations;
the expected growth of the wealth management market in China and
internationally; our expectations regarding demand for and market acceptance
of the products we distribute; our expectations regarding keeping and
strengthening our relationships with key clients; relevant government policies
and regulations relating to our industry; our ability to attract and retain
quality employees; our ability to stay abreast of market trends and
technological advances; our plans to invest in research and development to
enhance our product choices and service offerings; competition in our industry
in China and internationally; general economic and business conditions in
China; and our ability to effectively protect our intellectual property rights
and not infringe on the intellectual property rights of others. Further
information regarding these and other risks is included in Noah's filings with
the Securities and Exchange Commission, including its annual report on Form
20-F. Noah does not undertake any obligation to update any forward-looking
statement as a result of new information, future events or otherwise, except
as required under applicable law. All information provided in this press
release and in the attachments is as of the date of this press release, and
Noah undertakes no duty to update such information, except as required under
applicable law.

Contacts:

Noah Holdings Limited
Shang Chuang, Director of IR
Tel: +86 21 3860 2388
ir@noahwm.com

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --



Noah Holdings Limited

Condensed Consolidated Balance Sheets

(In U.S. dollars)

(unaudited)
                                         As of
                                         September 30,2012  December 31,2012
                                         $                   $
Assets
 Current assets:
  Cash and cash equivalents              122,012,859         119,561,152
  Restricted cash                        79,557              80,256
  Short-term investments                 41,248,860          49,035,610
  Accounts receivable, net of allowance
  for doubtful accounts of nil at        13,013,433          10,055,724
  September 30, 2012 and December 31,
  2012
  Deferred tax assets                    2,814,290           2,837,892
  Amounts due from related parties       3,077,780           4,492,523
  Other current assets                   3,741,739           3,624,590
  Total current assets                   185,988,518         189,687,747
 Long-term investments                   -                   3,106,692
 Investment in affiliates                5,198,962           6,055,343
 Property and equipment, net             4,115,478           4,387,953
 Non-current deferred tax assets         586,740             1,105,816
 Other non-current assets                735,842             1,025,917
Total Assets                             196,625,540         205,369,468
Liabilities and Equity
 Current liabilities:
  Accrued payroll and welfare expenses   7,539,102           11,926,784
  Income tax payable                     3,423,152           2,446,040
  Other current liabilities              13,979,724          11,951,894
  Total current liabilities              24,941,978          26,324,718
 Non-current uncertain tax position      1,400,484           1,451,897
 liabilities
 Other non-current liabilities           1,825,132           2,087,028
 Total Liabilities                       28,167,594          29,863,643
 Equity                                  168,457,946         175,505,825
Total Liabilities and Equity             196,625,540         205,369,468



Noah Holdings Limited

Condensed Consolidated Income Statements

(In U.S. dollars, except for ADS data, per ADS data and percentages)

(unaudited)
                                    Three months ended
                                    December 31,    December 31,   Change
                                    2011             2012
Revenues:                           $                $
 Third-party revenues             10,261,158       15,183,802      48.0%
 Related party revenues           5,017,108        11,376,781      126.8%
Total revenues                      15,278,266       26,560,583      73.8%
 Less: business taxes and related (831,955)        (1,471,202)     76.8%
surcharges
Net revenues                        14,446,311       25,089,381      73.7%
Operating cost and expenses:
 Cost of revenues                 (3,811,751)      (4,780,493)     25.4%
 Selling expenses                 (5,424,318)      (7,629,050)     40.6%
 General and administrative       (3,137,689)      (6,165,242)     96.5%
expenses
 Other operating income           17,618           261,020         1381.6%
Total operating cost and expenses   (12,356,140)     (18,313,765)    48.2%
Income from operations              2,090,171        6,775,616       224.2%
Other income:
 Interest income                  521,724          708,777         35.9%
 Investment income                486,815          769,371         58.0%
 Foreign exchange gain            850,015          199,718         (76.5%)
 Other income                     44,373           42,827          (3.5%)
Total other income                  1,902,927        1,720,693       (9.6%)
Income before taxes and loss from   3,993,098        8,496,309       112.8%
equity in affiliates
Income tax expense                  (430,094)        (2,744,450)     538.1%
(Loss) income from equity in        (28,746)         678,090         (2458.9%)
affiliates
Net income                          3,534,258        6,429,949       81.9%
Less: net income attributable to    -                82,653          -
non-controlling interests
Net income attributable to Noah     3,534,258        6,347,296       79.6%
Shareholders
Income per ADS, basic               0.06             0.12            99.3%
Income per ADS, diluted             0.06             0.12            97.6%
Other comprehensive income, net of
tax:
 Foreign currency translation   977,011          1,018,175       4.2%
adjustments
Comprehensive income attributable   4,511,269        7,365,471       63.3%
to Noah Shareholders
Margin analysis:
Operating margin                    14.5%            27.0%
Net margin                          24.5%            25.6%
Weighted average ADS equivalent:
[1]
Basic                               55,892,072       54,976,942
Diluted                             56,755,513       55,457,310
ADS equivalent outstanding at end   55,925,172       54,868,777
of period
[1] Assumes all outstanding ordinary shares are represented by ADSs. Each
ordinary share represents two ADSs



Noah Holdings Limited

Condensed Consolidated Income Statements

(In U.S. dollars, except for ADS data, per ADS data and percentages)

(unaudited)
                                     Twelve months ended
                                     December 31,     December 31,   Change
                                     2011             2012
                                     $                $
Revenues:
 Third-party revenues              63,636,367       65,780,848     3.4%
 Related party revenues            12,724,077       25,982,724     104.2%
Total revenues                       76,360,444       91,763,572     20.2%
 Less: business taxes and related  (4,197,118)      (5,068,066)    20.8%
surcharges
Net revenues                         72,163,326       86,695,506     20.1%
Operating cost and expenses:
 Cost of revenues                  (14,805,431)     (17,971,305)   21.4%
 Selling expenses                  (19,262,014)     (27,338,878)   41.9%
 General and administrative        (13,556,787)     (19,835,319)   46.3%
expenses
 Other operating income            562,333          4,295,029      663.8%
Total operating cost and expenses    (47,061,899)     (60,850,473)   29.3%
Income from operations               25,101,427       25,845,033     3.0%
Other income(expenses):
 Interest income                   1,953,619        2,451,731      25.5%
 Investment income                 1,368,358        3,044,856      122.5%
 Foreign exchange gain (loss)      3,218,876        (180,856)      (105.6%)
 Other income                      128,425          110,690        (13.8%)
Total other income                   6,669,278        5,426,421      (18.6%)
Income before taxes and loss from    31,770,705       31,271,454     (1.6%)
equity in affiliates
Income tax expenses                  (7,779,408)      (8,979,649)    15.4%
(Loss) income from equity in         (21,347)         617,361        (2992.0%)
affiliates
Net income                           23,969,950       22,909,166     (4.4%)
Less: net income attributable to     -                82,712         -
non-controlling interests
Net income attributable to Noah      23,969,950       22,826,454     (4.8%)
Shareholders
Income per ADS, basic                0.43             0.41           (4.4%)
Income per ADS, diluted              0.42             0.41           (2.3%)
Other comprehensive income, net of
tax:
 Foreign currency translation    2,583,548        1,303,069      (49.6%)
adjustments
Comprehensive income attributable to 26,553,498       24,129,523     (9.1%)
Noah Shareholders
Margin analysis:
Operating margin                    34.8%            29.8%
Net margin                          33.2%            26.4%
Weighted average ADS equivalent: [2]
Basic                                55,789,906       55,502,670
Diluted                              57,042,544       56,147,462
[2] Assumes all outstanding ordinary shares are represented by ADSs. Each
ordinary share represents two ADSs

Noah Holdings Limited
Supplemental Information
(unaudited)
                                                        As of
                                                        December  December
                                                        31,       31,       Change
                                                        2011      2012
Number of registered clients                            27,144    40,305    48.5%
Number of relationship managers                         510       459       (10.0%)
Number of branch offices                                59        57        (3.4%)
                                                        Three months ended
                                                        December  December
                                                        31,       31,       Change
                                                        2011      2012
                                                        (in millions of RMB, except
                                                        number of active clients
                                                        and percentages)
Number of active clients                                937       1,636     74.6%
Transaction value:
 Fixed income products                             2,794     5,051     80.8%
 Private equity fund products                      1,467     1,222     (16.7%)
Otherproducts,includingsecuritiesinvestment
 funds, investment-linked insurance products and     26        13        (50.0%)
 mutual fund products [3]
Total transaction value                                 4,287     6,286     46.6%
Average transaction value per client                    4.58      3.84      (16.0%)
                                                        Twelve months
                                                        ended
                                                        December  December
                                                        31,       31,       Change
                                                        2011      2012
                                                        (in millions of RMB, except
                                                        number of active clients
                                                        and percentages)
Number of active clients                                3,095     4,152     34.2%
Transaction value:
 Fixed income products                             9,638     17,199    78.4%
 Private equity fund products                      10,835    7,051     (34.9%)
 Other products, including securities investment
 funds, investment-linked insurance products and     2,113     872       (58.7%)
 mutual fund products [3]
Total transaction value                                 22,586    25,122    11.2%
Average transaction value per client                    7.30      6.05      (17.1%)


[3] The mutual fund products refers to the incremental value of mutual fund
products distributed by the Company





Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In U.S. dollars, except for ADS data and percentages)

(unaudited)
                                            Three months ended
                                           December 31,  December 31,
                                                                       Change
                                           2011          2012
                                           $             $
Net income attributable to Noah            3,534,258     6,347,296     79.6%
Shareholders
 Adjustment for share-based compensation
related to:
 Share options                   681,258       94,600        (86.1%)
 Restricted shares               35,796        1,118,230     3023.9%
Adjusted net income attributable to Noah
Shareholders                              4,251,312     7,560,126     77.8%
(non-GAAP) [4]
Net income per ADS, diluted                0.06          0.12          97.6%
Adjusted net income per ADS, diluted      0.07          0.14          86.2%
(non-GAAP) [4]
Net margin                                 24.5%         25.6%         4.5%
Adjusted net margin (non-GAAP) [4]         29.4%         30.1%         2.4%



Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In U.S. dollars, except for ADS data and percentages)

(unaudited)
                                         Twelve months ended
                                         December 31,  December 31,  Change
                                         2011           2012
                                         $              $
Net income attributable to Noah          23,969,950     22,826,454     (4.8%)
Shareholders
 Adjustment for share-based
compensation related to:
 Share options                 2,014,692      1,437,201      (28.7%)
 Restricted shares             142,018        2,561,347      1703.5%
Adjusted net income attributable to Noah
Shareholders                            26,126,660     26,825,002     2.7%
(non-GAAP) [4]
Net income per ADS, diluted              0.42           0.41           (2.3%)
Adjusted net income per ADS, diluted    0.46           0.48           4.4%
(non-GAAP) [4]
Net margin                               33.2%          26.4%          (20.5%)
Adjusted net margin (non-GAAP) [4]       36.2%          30.9%          (14.5%)
[4] The non-GAAP adjustments do not take into consideration the impact of
taxes on such adjustments.

SOURCE Noah Holdings Limited
 
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