Noah Holdings Limited Announces Unaudited Financial Results for the First Quarter of 2013 and a New Share Repurchase Program

  Noah Holdings Limited Announces Unaudited Financial Results for the First
              Quarter of 2013 and a New Share Repurchase Program

PR Newswire

SHANGHAI, May 6, 2013

SHANGHAI, May 6, 2013 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the
"Company") (NYSE: NOAH), a leading wealth management service provider focusing
on distributing wealth management products to the high net worth population in
China, today announced its unaudited financial results for the first quarter
of 2013.

FIRST QUARTER 2013 FINANCIAL HIGHLIGHTS

  oNet revenues in the first quarter of 2013 were US$32.6 million, a 94.3%
    increase from the corresponding period in 2012.
  oIncome from operations in the first quarter of 2013 was US$11.9 million, a
    352.1% increase from the corresponding period in 2012.
  oNet income attributable to Noah shareholders in the first quarter of 2013
    was US$9.6 million, a 251.6% increase from the corresponding period in
    2012. Non-GAAP[1] net income attributable to Noah shareholders in the
    first quarter of 2013 was US$10.7 million, a 193.8% increase from the
    corresponding period in 2012.
  oNet income per basic and diluted ADS in the first quarter of 2013 were
    US$0.18 and US$0.17, respectively. Non-GAAP net income per diluted ADS in
    the first quarter of 2013 was US$0.19.

FIRST QUARTER 2013 OPERATIONAL HIGHLIGHTS

  oTotal number of registered clients[2] as of March 31, 2013 increased by
    42.9% year-over-year to 42,590; this figure includes 40,915 registered
    individual clients, 1,558 registered enterprise clients and 117 wholesale
    clients that have entered into cooperation agreements with the Company.
  oActive clients[3] during the first quarter of 2013 were 1,778, an 86.8%
    increase from the corresponding period in 2012. The aggregate value of
    wealth management products distributed by the Company during the first
    quarter of 2013 was RMB8.7 billion (approximately US$1.4 billion)[4], a
    63.1% increase from the corresponding period in 2012. Of this aggregate
    value, fixed income products accounted for 74.9%, private equity fund
    products accounted for 18.8%, and other products, including mutual fund
    products, private securities investment funds and investment-linked
    insurance products, accounted for 6.3%. The average transaction value per
    client[5] in the first quarter of 2013 was RMB4.9 million (approximately
    US$0.8 million), a 12.7% decrease from the corresponding period in 2012,
    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 March 31, 2013 included 56 branches, down from 57
    branches as of December 31, 2012 and 60 branches as of March 31, 2012. The
    number of relationship managers decreased to 452 as of March 31, 2013,
    down from 459 as of December 31, 2012 and 580 as of March 31, 2012. Since
    June 30, 2012, the Company started to streamline its operations by closing
    four branches and adjusting the number of relationship managers.

    Noah's Non-GAAP financial measures are its corresponding GAAP financial
[1] measures as adjusted by excluding the effects of all forms of share-based
    compensation.
    "Total number of registered clients" includes clients registered with Noah
[2] Upright (Shanghai) Fund Investment Consulting Co., Ltd., Noah's mutual
    fund distribution business, which began operations in the second quarter
    of 2012.
    "Active clients" refers to those registered clients who purchased wealth
[3] 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.
    The amount in RMB was translated into U.S. dollars using the average rate
[4] for the period as set forth in the H.10 statistical release of the Federal
    Reserve Board.
    "Average transaction value per client" refers to the average value of
[5] 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, "It was a record quarter for the company, with
historical highs set for nearly all operating metrics. These results are
reflections of structural improvements and strategic initiatives we have been
making since the first half of 2012 in organizational structure, management,
and product innovation." Ms. Wang continued, "I am also pleased that all of
our business units, including our mutual business and our Hong Kong business,
continued to make meaningful progress this quarter. In addition, we were able
to continue to grow our asset management business."

Mr. Tom Wu, Chief Financial Officer, said, "It was a robust quarter. We were
able to improve key financial metrics with strong revenue growth driven by
broad client engagement in total transaction value and number of active
clients, which led to improved profitability and record quarterly earnings.
We are committed to delivering profitable and quality growth for our
shareholders."

FIRST QUARTER 2013 FINANCIAL RESULTS

Net Revenues

Net revenues for the first quarter of 2013 were US$32.6 million, a 94.3%
increase from the corresponding period in 2012, due to increases in both
one-time commission revenues and recurring service fees for the first quarter
of 2013.

Net revenues from one-time commissions for the first quarter of 2013 were
US$15.4 million, a 68.1% increase from the corresponding period in 2012. The
year-over-year increase for the first quarter of 2013 was mainly due to an
increase in transaction value and, to a lesser extent, an increase in average
commission rate.

Net revenues from recurring service fees for the first quarter of 2013 were
US$16.4 million, a 115.2% increase from the corresponding period in 2012. 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 since the second half of 2012.

Operating Margin

Operating margin for the first quarter of 2013 was 36.4%, as compared to 15.7%
for the corresponding period in 2012. The year-over-year increase for the
first quarter of 2013 was driven by growth of net revenues exceeding those in
operating cost and expenses.

Operating cost and expenses for the first quarter of 2013, including cost of
revenues, selling expenses, G&A expenses and other operating income, were
US$20.7 million, a 46.5% increase from the corresponding period in 2012.

Cost of revenues for the first quarter of 2013 totaled US$6.0 million, a 55.9%
increase from the corresponding period in 2012. The year-over-year increase
for the first quarter of 2013 was primarily due to an increase in compensation
expenses paid to relationship managers as a result of the increase in
transaction value.

Selling expenses for the first quarter of 2013 were US$7.9 million, a 29.2%
increase from the corresponding period in 2012. Selling expenses as a
percentage of net revenues for the first quarter of 2013 was 24.3%, as
compared to 36.5% for the corresponding period in 2012.  The year-over-year
increases for the first quarter of 2013 was primarily due to increases in
employee compensations and share-based compensations as the Company
strengthened its selling and marketing functions.

G&A expenses for the first quarter of 2013 were US$6.8 million, a 61.8%
increase from the corresponding period in 2012. G&A expenses as a percentage
of net revenues for the first quarter of 2013 was 20.9%, as compared to 25.2%
for the corresponding period in 2012. The year-over-year increases for the
first quarter of 2013 was primarily due to increases in personnel expenses,
professional consulting fees and rental expenses.

Other operating income for the first quarter of 2013 was US$31.0 thousand, as
compared to US$52.8 thousand for the corresponding period in 2012. Other
operating income is government subsidies received in the PRC from local
governments for general corporate purposes.

Income Tax Expenses

Income tax expenses  for the first quarter of 2013 were US$3.9 million, a
278.1% increase from the corresponding period in 2012. The year-over-year
increase for the first quarter of 2013 was due to an increase in taxable
income.

Net Income

Net income for the first quarter of 2013 was US$9.8 million, a 257.3% increase
from the corresponding period in 2012. Net margin for the first quarter of
2013 was 30.0%, as compared to 16.3% for the corresponding period in 2012.
Non-GAAP net margin for the first quarter of 2013 was 33.4%, as compared to
21.8% for the corresponding period in 2012.

Net income attributable to Noah shareholders for the first quarter of 2013 was
US$9.6 million, a 251.6% increase from the corresponding period in 2012. Net
income per basic and diluted ADS for the first quarter of 2013 were US$0.18
and US$0.17, respectively, as compared to US$0.05 and US$0.05 for the
corresponding period in 2012.

Non-GAAP net income attributable to Noah shareholders for the first quarter of
2013 was US$10.7 million, a 193.8% increase from the corresponding period in
2012. Non-GAAP net income per diluted ADS for the first quarter of 2013 was
US$0.19, as compared to US$0.06 for the corresponding period in 2012.

Balance Sheet and Cash Flow

As of March 31, 2013, the Company had US$120.8 million in cash and cash
equivalents, an increase of US$1.2 million from US$119.6 million as of
December 31, 2012. In the first quarter of 2013, the Company generated US$6.6
million in its operating activities, received US$14.8 million from maturing
fixed income product investments, invested US$14.8 million in fixed income
products and US$8.0 million in equity affiliates, and used US$1.2 million to
acquire property and equipment. In the first quarter of 2013, the Company used
US$2.9 million to repurchase American Depositary Shares ("ADSs") and received
US$5.5 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 March 31, 2013, the
Company has repurchased 2,101,877 ADSs for approximately US$11.4 million,
inclusive of transaction charges.

ANNOUNCEMENT OF A NEW SHARE REPURCHASE PROGRAM

The Company also announced today that the Board has approved a new share
repurchase program, effective on May 22, 2013, which authorizes the Company to
repurchase up to US$30 million worth of its issued and outstanding ADSs over
the course of one year. The proposed share repurchase may be made on the open
market at prevailing market prices pursuant to Rule 10b5-1 and/or Rule 10b-18,
in privately negotiated transactions, in block trades or otherwise from time
to time depending on market conditions and 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.

2013 FORECAST

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, May 6, 2013 at 8:00
pm (Eastern) / 5:00 pm (Pacific) / 8:00 am (Hong Kong, Tuesday, May 7, 2013)
to discuss its first quarter 2013 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 #                 40379992

A telephone replay will be available shortly after the call until May 13, 2013
at +1-646-254-3697 (US Local Toll) or +61-2-8199-0299 (International).
Conference ID # 40379992.

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 wealth management service provider focusing
on distributing wealth management products to the high net worth population in
China. Noah distributes wealth management products, including primarily fixed
income products, private equity funds, private securities investment funds and
mutual funds. Noah is also equipped with asset management services capability,
managing its own fund of funds and real estate fund products. With over 450
relationship managers in 56 branch offices as of March 31, 2013, 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: its goals and strategies; its
future business development, financial condition and results of operations;
the expected growth of the wealth management market in China and
internationally; its expectations regarding demand for and market acceptance
of the products it distributes; its expectations regarding keeping and
strengthening its relationships with key clients; relevant government policies
and regulations relating to its industry; its ability to attract and retain
quality employees; its ability to stay abreast of market trends and
technological advances; its plans to invest in research and development to
enhance its product choices and service offerings; competition in its industry
in China and internationally; general economic and business conditions in
China; and its ability to effectively protect its intellectual property rights
and not 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
                                             December 31, 2012  March 31, 2013
                                             $                  $
Assets
 Current assets:
  Cash and cash equivalents                  119,561,152        120,791,189
  Restricted cash                            80,256             80,505
  Short-term investments                     49,035,610         49,291,869
  Accounts receivable, net of allowance for
  doubtful accounts of nil at December 31,   10,055,724         15,670,930
  2012 and March 31, 2013
  Deferred tax assets                        2,837,892          2,858,422
  Amounts due from related parties           4,492,523          9,090,741
  Other current assets                       3,624,590          5,929,676
  Total current assets                       189,687,747        203,713,332
 Long-term investments                       3,106,692          3,116,346
 Investment in affiliates                    6,055,343          10,875,216
 Property and equipment, net                 4,387,953          5,330,136
 Non-current deferred tax assets             1,105,816          1,153,037
 Other non-current assets                    1,025,917          1,097,492
Total Assets                                 205,369,468        225,285,559
Liabilities and Equity
 Current liabilities:
  Accrued payroll and welfare expenses       11,926,784         9,997,862
  Income tax payable                         2,446,040          4,726,018
  Deferred revenues                          5,320,260          9,831,309
  Dividend payable                           -                  7,726,426
  Other current liabilities                  6,631,634          7,008,991
  Total current liabilities                  26,324,718         39,290,606
 Non-current uncertain tax position          1,451,897          1,496,704
 liabilities
 Other non-current liabilities               2,087,028          2,497,773
 Total Liabilities                           29,863,643         43,285,083
 Equity                                      175,505,825        182,000,476
Total Liabilities and Equity                 205,369,468        225,285,559



Noah Holdings Limited

Condensed Consolidated Income Statements

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

(unaudited)
                                       Three months ended
                                       March 31,      March 31,     Change
                                       2012            2013
Revenues:                              $               $
 Third-party revenues                14,521,729      18,952,544     30.5%
 Related party revenues              3,230,408       15,542,850     381.1%
Total revenues                         17,752,137      34,495,394     94.3%
 Less: business taxes and related    (974,968)       (1,891,384)    94.0%
surcharges
Net revenues                           16,777,169      32,604,010     94.3%
Operating cost and expenses:
 Cost of revenues                    (3,853,533)     (6,008,317)    55.9%
 Selling expenses                    (6,128,402)     (7,918,718)    29.2%
 General and administrative expenses (4,220,228)     (6,828,071)    61.8%
 Other operating income              52,812          30,983         (41.3%)
Total operating cost and expenses      (14,149,351)    (20,723,990)   46.5%
Income from operations                 2,627,818       11,880,020     352.1%
Other income:
 Interest income                     713,210         653,300        (8.4%)
 Investment income                   533,026         1,138,767      113.6%
 Other (expense) income              (43,713)        19,052         (143.6%)
Total other income                     1,202,523       1,811,119      50.6%
Income before taxes and loss from      3,830,341       13,691,139     257.4%
equity in affiliates
Income tax expense                     (1,041,470)     (3,937,910)    278.1%
(Loss) income from equity in           (55,561)        14,206         (125.6%)
affiliates
Net income                             2,733,310       9,767,435      257.3%
Less: net income attributable to       -               157,544        -
non-controlling interests
Net income attributable to Noah        2,733,310       9,609,891      251.6%
Shareholders
Income per ADS, basic                  0.05            0.18           260.0%
Income per ADS, diluted                0.05            0.17           240.0%


Margin analysis:
Operating margin                       15.7%           36.4%
Net margin                             16.3%           30.0%
Weighted average ADS equivalent: [1]
Basic                                  55,940,872      54,828,514
Diluted                                56,674,694      55,650,945
ADS equivalent outstanding at end of   55,972,765      54,677,482
period


[1] Assumes all outstanding ordinary shares are represented by ADSs. Each
ordinary share represents two ADSs





Noah Holdings Limited

Condensed Comprehensive Income Statements

(In U.S. dollars)

(unaudited)
                                            Three months ended
                                            March 31,  March 31,  Change
                                            2012        2013
                                            $           $
Net income                                  2,733,310   9,767,435   257.3%
Other comprehensive income, net of tax:
 Foreign currency translation           (29,754)    389,515     (1,409.1%)
adjustments
Comprehensive income                        2,703,556   10,156,950  275.7%
Less: Comprehensive income attributable to  -           200,233     -
noncontrolling interests
Comprehensive income attributable to Noah   2,703,556   9,956,717   268.3%
Shareholders



Noah Holdings Limited
Supplemental Information
(unaudited)
                                                        As of
                                                        March   March   Change
                                                        31,     31,
                                                                        
                                                        2012    2013
Number of registered clients                           29,814  42,590  42.9%
Number of relationship managers                        580     452     (22.1%)
Number of branch offices                               60      56      (6.7%)
                                                        Three months
                                                        ended           Change
                                                        March   March
                                                        31,     31,     
                                                        2012    2013
                                                        (in millions of RMB,
                                                        except number of active
                                                        clients and
                                                        percentages)
Number of active clients                               952     1,778   86.8%
Transaction value:
 Fixed income products                           2,819   6,495   130.4%
 Private equity fund products                    2,362   1,627   (31.1%)
 Other products, including mutual fund
 products, private securities                  137     553     303.6%
 investment funds and
 investment-linked insuranceproducts
Total transaction value                                5,318   8,675   63.1%
Averagetransactionvalueperclient 5.59    4.88    (12.7%)









Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

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

(unaudited)
                                                                                               Three months ended     Change
                                                                                               March 31,  March 31,
                                                                                                                      
                                                                                               2012       2013
                                                                                               $          $
Net income                                                                                     2,733,310  9,767,435   257.3%
 Adjustment for share-based compensation related to:
 Share options                                                                       886,766    54,096      (93.9%)
 Restricted shares                                                                   35,407     1,076,665   2,940.8%
Adjusted net income (non-GAAP)*                                                               3,655,483  10,898,196  198.1%
Net margin                                                                                     16.3%      30.0%
Adjusted net margin (non-GAAP)*                                                                21.8%      33.4%
Net income attributable to Noah Shareholders                                                   2,733,310  9,609,891   251.6%
 Adjustment for share-based compensation related to:
 Share options                                                                       886,766    54,096      (93.9%)
 Restricted shares                                                                   35,407     1,076,665   2,940.8%
Adjusted net income attributable to Noah Shareholders (non-GAAP)*                             3,655,483  10,740,652  193.8%
NetincomeperADS,diluted 0.05       0.17        240.0%
Adjusted net income per ADS, diluted (non-GAAP)*                                              0.06       0.19        199.2%


*The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments.





SOURCE Noah Holdings Limited

Website: http://ir.noahwm.com
 
Press spacebar to pause and continue. Press esc to stop.