NOAH HOLDINGS(NOAH)

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NOAH HOLDINGS(NOAH) - 2024 Q3 - Quarterly Report

2024-11-26 21:45
Revenue Performance - Net revenues for Q3 2024 were RMB683.7 million (US$97.4 million), an 8.8% decrease from Q3 2023, primarily due to a 33.0% decrease in revenues from mainland China, partially offset by a 28.9% increase from overseas[4] - Net revenues from mainland China were RMB306.8 million (US$43.7 million), a 33.0% decrease, driven by an 89.9% drop in domestic insurance product distribution revenue and a 17.3% decrease in recurring service fees from RMB private equity products[5] - Net revenues from overseas increased to RMB376.9 million (US$53.7 million), a 28.9% increase, mainly due to a 42.5% rise in offshore investment product revenue and a 42.4% increase in insurance product revenue[6] - Total revenues decreased by 8.8% year-over-year to RMB 688,702,000 for the three months ended September 30, 2024[74] - Net revenues from one-time commissions decreased by 11.8% to RMB175.1 million (US$25.0 million) due to lower distribution of domestic insurance products[31] - Net revenues from recurring service fees fell by 10.3% to RMB251.0 million (US$35.8 million), primarily due to a decrease in assets under management in mainland China[32] - Revenues from the Wealth Management Business decreased from RMB 550,822 million to RMB 466,898 million, a decline of 15.2%[85] Income and Profitability - Income from operations for Q3 2024 was RMB240.8 million (US$34.3 million), a 3.2% decrease year-over-year, but a 79.7% increase sequentially[7] - Net income attributable to shareholders for Q3 2024 was RMB134.4 million (US$19.2 million), a 42.4% decrease from Q3 2023, impacted by unrealized foreign exchange losses and increased income tax expenses[9] - Net income for Q3 2024 was RMB137.8 million (US$19.6 million), a 40.6% decrease from Q3 2023[46] - Non-GAAP net income attributable to shareholders for Q3 2024 was RMB150.5 million (US$21.4 million), a 35.2% decrease from Q3 2023[49] - The net margin attributable to Noah shareholders decreased from 31.1% to 19.7%[96] Client Metrics - Total number of registered clients as of September 30, 2024, was 460,380, a 1.8% increase year-over-year, with overseas registered clients increasing by 20.9%[12] - The number of registered clients reached 460,380 as of September 30, 2024[63] - The number of overseas registered clients grew by 20.9%, from 14,296 to 17,287[93] - The number of active clients decreased by 17.2%, from 9,489 to 7,857 during the same period[80] Assets and Management - Total assets under management as of September 30, 2024, were RMB150.1 billion (US$21.4 billion), a 2.5% decrease from June 30, 2024, and a 3.1% decrease from September 30, 2023[22] - Overseas assets under management increased to RMB39.5 billion (US$5.6 billion), up from RMB35.4 billion a year ago[23] - Cash and cash equivalents as of September 30, 2024, were RMB3,435.8 million (US$489.6 million), down from RMB4,604.9 million as of June 30, 2024[52] - Total current assets decreased to RMB 6,093,338,000, a decline from RMB 7,204,728,000[70] - The company’s total assets were reported at RMB 11,521,125,000, down from RMB 12,467,005,000[70] Operational Efficiency - Operating margin improved to 35.2% in Q3 2024, compared to 33.2% in Q3 2023[41] - Operating costs and expenses decreased by 11.6% to RMB 442,872,000, primarily due to a reduction in compensation and benefits[74] Strategic Initiatives - The company opened a new office in Japan to attract local Mandarin-speaking clients and is exploring opportunities in Canada, Australia, Southeast Asia, and Europe[29] - The company plans to focus on expanding its overseas business and enhancing its product offerings in the coming year[93] Investment Product Distribution - The aggregate value of investment products distributed in Q3 2024 was RMB14.3 billion (US$2.0 billion), a 36.1% decrease from Q3 2023, primarily due to a 42.1% decrease in mutual fund product distribution[14] - Total transaction value dropped by 36.1%, from RMB 22,316 million to RMB 14,258 million[80] - The transaction value of overseas investment products increased by 11.4%, from RMB 7.0 billion to RMB 7.8 billion[93] - One-time commissions from funds managed by Gopher increased significantly by 18,693.8% to RMB 6,014,000[74] - Recurring service fees from funds managed by Gopher decreased by 20.0% to RMB 236,638,000[74]
NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2024

Prnewswire· 2024-11-26 21:30
Core Viewpoint - Noah Holdings Limited reported a decline in net revenues for Q3 2024, primarily driven by a significant decrease in revenues from mainland China, although overseas revenues showed growth, indicating a shift in market dynamics and client demand for global asset allocation services [2][21][20]. Financial Performance - Net revenues for Q3 2024 were RMB683.7 million (US$97.4 million), an 8.8% decrease from Q3 2023 [2][21]. - Revenues from mainland China decreased by 33.0% to RMB306.8 million (US$43.7 million), while overseas revenues increased by 28.9% to RMB376.9 million (US$53.7 million) [3][4]. - Income from operations was RMB240.8 million (US$34.3 million), a 3.2% decrease year-over-year, but a 79.7% increase sequentially [7][20]. - Net income attributable to Noah shareholders was RMB134.4 million (US$19.2 million), a 42.4% decrease from Q3 2023 [8][33]. Revenue Breakdown - Wealth management revenues decreased by 15.3% to RMB465.0 million (US$66.2 million) [5]. - Asset management revenues increased by 9.2% to RMB208.9 million (US$29.7 million) [5]. - Other businesses remained flat at RMB9.8 million (US$1.4 million) [5]. Client Metrics - Total registered clients as of September 30, 2024, reached 460,380, a 1.8% increase year-over-year [10]. - The number of overseas registered clients increased by 20.9% to 17,287 [10]. - Active clients decreased by 17.2% to 7,857 compared to Q3 2023 [10]. Investment Products - The aggregate value of investment products distributed in Q3 2024 was RMB14.3 billion (US$2.0 billion), a 36.1% decrease from Q3 2023 [10][11]. - Distribution of overseas investment products increased by 11.4% to RMB7.8 billion (US$1.1 billion) [10]. Assets Under Management - Total assets under management as of September 30, 2024, were RMB150.1 billion (US$21.4 billion), a 2.5% decrease from June 30, 2024 [15][43]. - Mainland China assets under management were RMB110.6 billion (US$15.8 billion), while overseas assets were RMB39.5 billion (US$5.6 billion) [16]. Operational Updates - The company expanded its team of relationship managers to 146, a 89.6% increase year-over-year [20]. - A new office was opened in Japan to attract local Mandarin-speaking clients, with plans to explore other markets such as Canada and Europe [20].
Noah Holdings Ltd (NOAH) Stock Price Up 6.49% on Oct 2

GuruFocus· 2024-10-02 16:04
Group 1 - Noah Holdings Ltd (NOAH) shares increased by 6.49% on October 2, reaching an intraday high of $14.07 before closing at $13.30, up from $12.49 [1] - The stock is currently 13.86% below its 52-week high of $15.44 and 86.27% above its 52-week low of $7.14 [1] - Trading volume was 566,960 shares, which is 247.3% of the average daily volume of 229,236 [1] Group 2 - The average one-year price target for Noah Holdings Ltd is $11.88, indicating a downside of 10.66% from the current price of $13.30 [2] - The average brokerage recommendation for Noah Holdings Ltd is 2.0, suggesting an "Outperform" status [2] - GuruFocus estimates the GF Value for Noah Holdings Ltd in one year to be $11.68, implying a downside of 12.18% from the current price [2]
诺亚控股(06686) - 2024 - 中期财报

2024-09-10 09:30
Company Information The company's corporate governance structure was strengthened through board appointments and committee adjustments, with its main administrative office in Shanghai and listings on HKEX and NYSE [Board Members and Corporate Governance](index=3&type=section&id=Board%20Members%20and%20Corporate%20Governance) During the reporting period, the company's board underwent several personnel changes, including new non-executive and independent director appointments, to enhance governance and diversify expertise - Dr. Chen Zhiwu retired as an independent director and Mr. Yao Jinbo resigned as an independent director, effective June 30, 2024[5](index=5&type=chunk) - Mr. Zhang Tong was appointed as a non-executive director and independent director, also serving as a member of the Review Committee[5](index=5&type=chunk) - Ms. Li Xiangrong was appointed as an independent director and Chairperson of the Review Committee[5](index=5&type=chunk) [Company Registration and Contact Information](index=3&type=section&id=Company%20Registration%20and%20Contact%20Information) Noah Holdings Private Wealth Asset Management Limited's registered office is in the Cayman Islands, with its main administrative office in Shanghai and primary Hong Kong business location in Causeway Bay, listed on both HKEX and NYSE - Registered office: PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands[6](index=6&type=chunk) - China principal executive office: No. 1226 Shenbin South Road, Minhang District, Shanghai, China[5](index=5&type=chunk) - HKEX stock code: 6686; NYSE stock code: NOAH[6](index=6&type=chunk) Financial Highlights The company experienced a significant decline in total revenue and net income, primarily due to reduced fundraising and performance-based fees, leading to a substantial drop in operating income [Key Financial Performance](index=4&type=section&id=Key%20Financial%20Performance) For the six months ended June 30, 2024, Noah Holdings saw significant declines in total revenue and net income, mainly due to reduced fundraising and performance-based fees, with operating income falling by nearly 60% year-on-year Key Financial Data for H1 2024 (RMB thousands) | Metric | 2023 (Unaudited) | 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue:** | | | | | Fundraising fee income | 570,092 | 313,149 | (45.1%) | | Management fees | 369,063 | 306,634 | (16.9%) | | Performance-based income | 7,758 | 10,043 | 29.5% | | Other service fees | 136,980 | 84,910 | (38.0%) | | Total revenue from Gopher-managed funds | 670,343 | 560,107 | (16.4%) | | **Total Revenue** | **1,754,236** | **1,274,843** | **(27.3%)** | | Net revenue | 1,745,230 | 1,265,389 | (27.5%) | | **Operating income** | **628,302** | **255,501** | **(59.3%)** | | Net income | 555,631 | 235,556 | (57.6%) | | Net income attributable to shareholders | 559,638 | 231,278 | (58.7%) | Operating Costs and Expenses for H1 2024 (RMB thousands) | Metric | 2023 (Unaudited) | 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | Compensation and benefits | (755,208) | (685,795) | (9.2%) | | Selling expenses | (208,672) | (124,222) | (40.5%) | | General and administrative expenses | (109,683) | (151,018) | 37.7% | | Reversal of allowance for credit losses | 5,478 | 428 | (92.2%) | | Other operating expenses, net | (67,875) | (63,153) | (7.0%) | | Government subsidies | 19,032 | 13,872 | (27.1%) | | **Total operating costs and expenses** | **(1,116,928)** | **(1,009,888)** | **(9.6%)** | Executive Summary Amid global economic volatility and cautious investor sentiment, the company strengthened its market position by exiting domestic real estate and expanding its global product portfolio and overseas business [Business Summary](index=7&type=section&id=Business%20Summary) Amid global macroeconomic volatility and a slower-than-expected Chinese economic recovery, high-net-worth investors are cautious, prioritizing asset liquidity, safety, and global diversification, leading the company to strengthen its position through early exit from domestic real estate and active overseas expansion - The global macroeconomic environment is volatile, China's economic recovery is below expectations, and the real estate sector is sluggish, leading to negative sentiment among high-net-worth investors[10](index=10&type=chunk) - Chinese high-net-worth individuals are adopting more cautious asset allocation strategies, emphasizing liquidity, safety, and global diversification[11](index=11&type=chunk) - The company has solidified its industry position by strategically exiting domestic residential real estate assets early and adapting to market changes[11](index=11&type=chunk) - The company is actively repositioning its overseas business for sustainable long-term growth, aiming to establish a leading position among global Chinese high-net-worth investors[13](index=13&type=chunk) [Financial Summary](index=9&type=section&id=Financial%20Summary) During the reporting period, the company's net income and net income attributable to shareholders significantly decreased, primarily due to reduced insurance product distribution and compensation and benefits cost pressures; despite challenges, the company remains committed to overseas market investments, achieving growth in both overseas product fundraising and AUM Financial Performance for H1 2024 (RMB millions) | Metric | H1 2023 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net revenue | 1,745.2 | 1,265.4 | (27.5%) | | Net income attributable to shareholders | 559.6 | 231.3 | (58.7%) | | Non-GAAP net income attributable to shareholders | 552.6 | 267.2 | (51.6%) | Overseas Business Growth (RMB billions) | Metric | H1 2023 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Overseas product fundraising volume | 10.9 | 16.3 | 49.3% | | Overseas product AUM | 34.2 | 39.1 | 14.3% | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) The company discloses non-GAAP financial measures, such as adjusted net income attributable to shareholders, to exclude the impact of share-based compensation and non-cash settlement expenses, aiming to provide clearer insights into underlying business trends and operating performance, while emphasizing they should not replace U.S. GAAP - Non-GAAP financial measures exclude the impact of share-based compensation expenses, non-cash settlement expenses (reversal), and related tax effects[20](index=20&type=chunk) - Management believes non-GAAP measures help investors understand underlying business trends and operating performance[21](index=21&type=chunk) - The company encourages investors to review all relevant financial information comprehensively, rather than relying on a single financial measure[21](index=21&type=chunk) Business Review and Outlook The company expanded its global footprint by investing in overseas products and services, achieving significant growth in overseas fundraising and AUM, while streamlining its domestic branch network [Business Review for the Reporting Period](index=11&type=section&id=Business%20Review%20for%20the%20Reporting%20Period) Amid cautious high-net-worth client investments, the company continued to invest in overseas products and services, expanding its global presence, with significant growth in overseas private equity and private credit fundraising, and an increased proportion of overseas AUM, while streamlining its domestic branch network - High-net-worth clients prioritize asset liquidity, safety, and global diversification, leading the company to strategically invest in overseas products and services to meet these demands[23](index=23&type=chunk) Key Overseas Business Metrics (H1 2024) | Metric | H1 2023 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Overseas revenue | - | - | Decreased by 18.1% | | Recurring management fees | - | - | Increased by 7.2% | | Overseas private equity/credit fundraising volume | - | USD 338 million | Increased by 40.2% | | Overseas product AUM | - | USD 5.4 billion | Increased by 14.3% | | Overseas AUM as percentage of total AUM | 21.8% | 25.4% | Increased | | Overseas active clients | - | - | Increased by 62.8% | - The number of domestic branches decreased from 75 to 15, aiming to reduce management expenses and concentrate resources[25](index=25&type=chunk) [Wealth Management Business](index=12&type=section&id=Wealth%20Management%20Business) During the reporting period, total revenue from wealth management business decreased by 34.0% year-on-year, primarily due to reduced insurance product distribution, lower service fees from private securities funds, and decreased performance-based fees from overseas private equity products; fundraising volume also declined due to reduced distribution of public and private securities funds Wealth Management Business Revenue Composition (RMB millions) | Revenue Type | H1 2023 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 1,336.7 | 881.8 | (34.0%) | | Fundraising fee income | 579.5 | 324.1 | (44.1%) | | Recurring service fees | 570.5 | 481.5 | (15.6%) | | Performance-based income | 77.3 | 11.1 | (85.7%) | | Other service fees | 109.4 | 65.1 | (40.5%) | - In H1 2024, wealth management fundraising volume was **RMB 33.3 billion**, a **5.4% year-on-year decrease**, primarily due to reduced distribution of public and private securities funds[26](index=26&type=chunk) [Asset Management Business](index=13&type=section&id=Asset%20Management%20Business) Total revenue from asset management business decreased by 4.3% year-on-year, mainly due to reduced management fees from RMB private equity products and performance-based fees from overseas private equity products; despite challenges, AUM remained largely stable, with overseas AUM growing by 14.3% Asset Management Business Revenue Composition (RMB millions) | Revenue Type | H1 2023 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 373.3 | 389.9 | (4.3%) | | Management fees | - | - | Decreased by 3.1% | | Performance-based income | - | - | Decreased by 9.2% | - As of June 30, 2024, AUM was **RMB 154.0 billion**, a slight **1.8% decrease** compared to June 30, 2023[28](index=28&type=chunk) - Overseas AUM reached **RMB 39.1 billion**, a **14.3% year-on-year increase**, primarily driven by expanded global general partner coverage and new financing for self-managed USD products[28](index=28&type=chunk) [Business Outlook](index=13&type=section&id=Business%20Outlook) Looking ahead, the company anticipates a challenging global macroeconomic environment; to address China's economic challenges, it will meet client overseas investment needs through QDII products and self-managed global discretionary products, while globally, expected Fed rate cuts will boost interest in alternative investments, prompting plans to expand its advisor team and strengthen international market presence in Southeast Asia, North America, and Europe - The global macroeconomic environment is expected to remain challenging in H2 2024, with China's economy facing weak consumption, real estate difficulties, and underperforming capital markets[30](index=30&type=chunk) - The company will meet client overseas investment demands through QDII public funds and self-managed global discretionary products[30](index=30&type=chunk) - Expected Fed rate cuts will increase client interest in alternative investment products, and the company plans to recruit **200-300 wealth advisors** to expand into Southeast Asia, North America, and European markets[31](index=31&type=chunk) Management Discussion and Analysis The company experienced a significant decline in total revenue due to reduced wealth management and asset management activities, while operating costs decreased overall, though administrative expenses rose [Revenue Analysis](index=14&type=section&id=Revenue%20Analysis) The company's total revenue decreased by 27.3% year-on-year, primarily due to reduced insurance product distribution in wealth management and lower performance-based fees from private equity products in asset management, with all business segments experiencing revenue declines, and wealth management showing the largest decrease Total Revenue by Business Segment (RMB thousands) | Business Segment | H1 2023 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Wealth Management Business | 1,336,684 | 881,754 | (34.0%) | | Asset Management Business | 389,930 | 373,272 | (4.3%) | | Other Businesses | 27,622 | 19,817 | (28.3%) | | **Total Revenue** | **1,754,236** | **1,274,843** | **(27.3%)** | - Wealth management fundraising fee revenue decreased by **44.1%**, primarily due to reduced insurance product distribution[37](index=37&type=chunk) - Asset management fundraising fee revenue decreased by **98.2%**, mainly due to reduced revenue from RMB private equity products[38](index=38&type=chunk) [Operating Costs and Expenses Analysis](index=16&type=section&id=Operating%20Costs%20and%20Expenses%20Analysis) The company's total operating costs and expenses decreased by 9.6% year-on-year, primarily due to cost control measures; while sales expenses in wealth management and compensation and benefits and sales expenses in asset management declined, general and administrative expenses increased due to new headquarters depreciation and legal costs Operating Costs and Expenses by Business Segment (RMB thousands) | Business Segment | H1 2023 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Wealth Management | 827,500 | 747,550 | (9.7%) | | Asset Management | 203,905 | 201,272 | (1.3%) | | Other Businesses | 85,523 | 61,066 | (28.6%) | | **Total operating costs and expenses** | **1,116,928** | **1,009,888** | **(9.6%)** | - Total compensation and benefits decreased by **9.2%**, with wealth management advisor compensation declining by **17.9%**[45](index=45&type=chunk) - Wealth management sales expenses decreased by **42.1%**, primarily due to reduced client activities[46](index=46&type=chunk) - Wealth management general and administrative expenses increased by **27.5%**, mainly due to increased depreciation expenses for the new headquarters[47](index=47&type=chunk) - Other operating expenses in asset management significantly increased, primarily due to Gopher's one-time payments as a general partner to its funds[49](index=49&type=chunk) [Earnings and Profit](index=19&type=section&id=Earnings%20and%20Profit) The company's operating income significantly decreased by 59.3% year-on-year, and net income declined by 57.6%; total other income increased, mainly due to higher interest income, but investment income from affiliates turned into a loss, negatively impacting net income Earnings and Profit (RMB thousands) | Metric | H1 2023 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Operating income | 628,302 | 255,501 | (59.3%) | | Total other income | 81,892 | 116,940 | 42.8% | | Investment income (loss) from affiliates | 5,230 | (53,942) | Not applicable | | Net income | 555,631 | 235,556 | (57.6%) | [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) The company primarily funds operations through cash generated from operating activities, with cash and cash equivalents totaling **RMB 4,604.9 million** as of June 30, 2024; it has no interest-bearing debt, and while the leverage ratio increased, the capital structure remains robust - As of June 30, 2024, cash and cash equivalents totaled **RMB 4,604.9 million**[57](index=57&type=chunk) - As of June 30, 2024, the company had no interest-bearing debt or pledged assets[29](index=29&type=chunk)[60](index=60&type=chunk)[69](index=69&type=chunk) Leverage Ratio | Metric | December 31, 2023 | June 30, 2024 | | :--- | :--- | :--- | | Leverage ratio (total liabilities/total assets) | 17.8% | 22.0% | [Contingent Liabilities and Capital Expenditures](index=21&type=section&id=Contingent%20Liabilities%20and%20Capital%20Expenditures) As of June 30, 2024, the company's contingent liabilities related to the unresolved Camsing incident amounted to **RMB 475.8 million**; capital expenditures significantly decreased year-on-year, primarily because the renovation and upgrade of the new headquarters were completed in 2023 Contingent Liabilities and Capital Expenditures (RMB millions) | Metric | December 31, 2023 | June 30, 2024 | | :--- | :--- | :--- | | Camsing incident contingent liabilities | 482.8 | 475.8 | | Capital expenditures (H1) | 157.6 | 34.7 | - The decrease in capital expenditures was primarily due to the completion of the company's headquarters renovation and upgrade in 2023[68](index=68&type=chunk) [Employees and Compensation](index=21&type=section&id=Employees%20and%20Compensation) As of June 30, 2024, the company had **2,222 employees** and continuously invests in employee training and education programs, offering competitive compensation and a performance-driven dynamic work environment to attract and retain talent Number of Employees by Function (as of June 30, 2024) | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | Mainland China Public Securities | 330 | 14.9% | | Mainland China Insurance | 156 | 7.0% | | Mainland China Private Equity | 240 | 10.8% | | Overseas Wealth Management | 233 | 10.5% | | Headquarters Business Development | 669 | 30.1% | | Headquarters Back-office Support | 467 | 21.0% | | **Total** | **2,222** | **100.0%** | - The company provides competitive compensation and a performance-driven dynamic work environment for employees, continuously investing in training and education programs[71](index=71&type=chunk)[72](index=72&type=chunk) Other Information This section details directors' and major shareholders' interests, share incentive schemes, corporate governance, use of global offering proceeds, significant litigation, and post-reporting period events [Directors' and Chief Executives' Interests](index=23&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests) As of June 30, 2024, the company's directors and chief executives held shares and related shares, with Ms. Wang Jingbo and Mr. Yin Zhe holding significant proportions through trust beneficiaries Directors' and Chief Executives' Shareholdings (as of June 30, 2024) | Name | Nature of Interest | Number of Shares/Related Shares (L) | Approximate Interest % | | :--- | :--- | :--- | :--- | | Ms. Wang Jingbo | Beneficiary of a trust | 68,386,755 | 20.68% | | Ms. Wang Jingbo | Beneficial owner | 325,000 | 0.09% | | Mr. Yin Zhe | Beneficiary of a trust | 17,180,335 | 5.19% | | Ms. Zhang Jiayu | Interest in a controlled corporation | 20,388,835 | 6.16% | | Mr. He Boquan | Interest in a controlled corporation | 16,398,720 | 4.95% | | Ms. Wu Yihong | Beneficial owner | 190,000 | 0.05% | [Major Shareholders' Interests](index=24&type=section&id=Major%20Shareholders'%20Interests) As of June 30, 2024, excluding directors and chief executives, major shareholders included Ark Trust (Singapore), Jing Investors Co., Ltd., Yiheng Capital Partners, L.P., and FIL Limited, holding significant proportions of the company's shares Major Shareholders' Shareholdings (as of June 30, 2024) | Name | Type/Nature of Interest | Number of Shares/Related Shares (L) | Approximate Interest % | | :--- | :--- | :--- | :--- | | Ark Trust (Singapore) | Trustee | 68,386,755 | 20.68% | | Jing Investors Co., Ltd. | Beneficial owner | 68,386,755 | 20.68% | | Magic Beams Enterprises Ltd. | Interest in a controlled corporation | 68,386,755 | 20.68% | | Yiheng Capital Partners, L.P. | Beneficial owner | 33,598,610 | 10.16% | | FIL Limited | Interest in a controlled corporation | 26,074,280 | 7.88% | | Jia Investment Co., Ltd. | Beneficial owner | 20,388,835 | 6.16% | | Mr. Shen Nanpeng | Interest in a controlled corporation | 16,500,000 | 4.99% | | Mr. Shen Nanpeng | Beneficial owner | 2,022,610 | 0.61% | [Share Incentive Schemes](index=25&type=section&id=Share%20Incentive%20Schemes) The company currently operates the 2022 Share Incentive Scheme and continues to manage outstanding awards under the 2017 scheme; during the reporting period, restricted share units were granted to directors and employees under the 2022 scheme, with detailed disclosures on changes in options and restricted shares across all plans - The company's currently effective scheme is the **2022 Share Incentive Scheme**, while the 2010 and 2017 schemes have terminated, but previously granted unexercised awards remain valid[81](index=81&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk)[90](index=90&type=chunk) - In H1 2024, **929,241 restricted share units** were granted to employees under the 2022 scheme, with **100,000** granted to directors[91](index=91&type=chunk) - As of June 30, 2024, total unrecognized compensation expense related to unvested restricted share awards was **RMB 121,207 thousand**, expected to be recognized over a weighted-average period of **2.65 years**[215](index=215&type=chunk) [2010 Share Incentive Scheme](index=25&type=section&id=2010%20Share%20Incentive%20Scheme) The 2010 Share Incentive Scheme was superseded by the 2017 scheme in 2017, ceasing new awards; as of June 30, 2024, there were no outstanding options or restricted shares issued and circulating under this plan - The **2010 Share Incentive Scheme** has terminated, with no outstanding options or restricted shares as of June 30, 2024[82](index=82&type=chunk)[83](index=83&type=chunk) [2017 Share Incentive Scheme](index=26&type=section&id=2017%20Share%20Incentive%20Scheme) The 2017 Share Incentive Scheme was superseded by the 2022 scheme in 2022, ceasing new awards, but previously granted unexercised awards remain valid; as of June 30, 2024, **8,750 options** were outstanding, and **315 restricted shares** were issued and circulating - The **2017 Share Incentive Scheme** has ceased granting new awards, but previously granted unexercised awards remain valid[84](index=84&type=chunk) - As of June 30, 2024, **8,750 options** were outstanding, and **315 restricted shares** were issued and circulating[84](index=84&type=chunk)[85](index=85&type=chunk)[88](index=88&type=chunk) [2022 Share Incentive Scheme](index=28&type=section&id=2022%20Share%20Incentive%20Scheme) The 2022 Share Incentive Scheme became effective in December 2022; during the reporting period, a significant number of restricted share units were granted to directors and employees, with director grants approved by shareholders, and these awards include vesting schedules and performance assessment mechanisms - The **2022 Share Incentive Scheme** was adopted on December 16, 2022, and became effective on December 23, 2022[90](index=90&type=chunk) Changes in Restricted Share Units under 2022 Share Incentive Scheme (as of June 30, 2024) | Grantee Category | Unvested as of Jan 1 | Granted | Vested | Unvested as of June 30 | | :--- | :--- | :--- | :--- | :--- | | Directors | 4,444 | 100,000 | (25,888) | 39,556 | | Employees Total | 85,279 | 829,241 | (217,578) | 685,145 | | **Total** | **89,723** | **929,241** | **(243,466)** | **763,701** | - Vesting of restricted share units is subject to meeting predetermined thresholds for work performance evaluations and compliance with company internal policies[95](index=95&type=chunk) [Corporate Governance and Compliance](index=30&type=section&id=Corporate%20Governance%20and%20Compliance) The company is committed to maintaining high standards of corporate governance, complying with the Corporate Governance Code and the Model Code for Securities Transactions by Directors during the reporting period, with board member changes further strengthening the governance structure - The company has consistently complied with all code provisions of the Corporate Governance Code during the reporting period[98](index=98&type=chunk) - All directors and relevant employees confirmed compliance with the Model Code and the company's Securities Dealing Code during the reporting period[100](index=100&type=chunk) - Board member changes included the retirement of Dr. Chen Zhiwu and Mr. Yao Jinbo, the appointments of Mr. Zhang Tong and Ms. Li Xiangrong, and Ms. Meng Jinhong's appointment as a member of the Corporate Governance and Nomination Committee[101](index=101&type=chunk)[105](index=105&type=chunk) [Use of Proceeds from Global Offering](index=31&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company's net proceeds from the global offering were approximately **HKD 315.6 million**, with a portion utilized as disclosed in the prospectus; as of June 30, 2024, **HKD 178.8 million** had been used, with **HKD 136.9 million** remaining, and the timeline for funds allocated to potential investments was delayed - Net proceeds from the global offering were approximately **HKD 315.6 million**[104](index=104&type=chunk) Use of Proceeds from Global Offering (as of June 30, 2024, HKD millions) | Purpose | Percentage of Purpose | Net Proceeds | Unutilized as of Jan 1, 2024 | Utilized for the six months ended June 30, 2024 | Utilized as of June 30, 2024 | Unutilized as of June 30, 2024 | Expected Timeline for Unutilized Amounts | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand wealth management business | 35% | 110.5 | 40.9 | 24.3 | 65.2 | 45.3 | Before end of 2024 | | Expand asset management business | 15% | 47.3 | 47.3 | – | 47.3 | – | – | | Selective potential investments | 20% | 63.1 | – | – | – | 63.1 | Before end of 2025 | | Invest in technology R&D | 10% | 31.6 | 6.4 | 15.2 | 21.6 | 10.0 | Before end of 2024 | | Expand overseas business | 10% | 31.6 | 14.2 | 12.1 | 26.3 | 5.3 | Before end of 2024 | | General corporate purposes | 10% | 31.6 | 9.7 | 8.7 | 18.4 | 13.2 | Before end of 2024 | | **Total** | **100%** | **315.6** | **118.5** | **60.3** | **178.8** | **136.9** | | - The timeline for funds allocated to selective potential investments has been delayed, as identifying suitable investment targets took longer than expected[107](index=107&type=chunk) [Significant Litigation and Settlement](index=32&type=section&id=Significant%20Litigation%20and%20Settlement) The company faces unresolved legal proceedings related to the Camsing incident, with claims exceeding **RMB 149.0 million**; in a prior civil lawsuit involving Noah (Shanghai) Financial Leasing Co., Ltd., the appeal upheld the first-instance ruling, and the company has paid a portion and applied for retrial with the Supreme People's Court; the company also voluntarily offered a settlement to affected Camsing clients, granting restricted share units - As of June 30, 2024, **44 investors** filed legal proceedings against Shanghai Gopher regarding the Camsing incident, with total claims exceeding **RMB 149.0 million**[110](index=110&type=chunk) - In a civil lawsuit involving Noah (Shanghai) Financial Leasing Co., Ltd., the appeal judgment upheld the first-instance ruling, and the company has paid **RMB 38.7 million** and applied for retrial with the Supreme People's Court of China[112](index=112&type=chunk)[232](index=232&type=chunk) - The company voluntarily offered a preferential settlement to clients affected by the Camsing incident; as of the reporting period, **6 clients** accepted the offer, and the company granted a total of **45,162 restricted share units**[113](index=113&type=chunk) [Post-Reporting Period Events and Dividends](index=31&type=section&id=Post-Reporting%20Period%20Events%20and%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2024; subsequent to the reporting period, the Board authorized a share repurchase program for up to **USD 50 million** of American Depositary Shares or shares, valid for two years - The Board does not recommend an interim dividend for the six months ended June 30, 2024[103](index=103&type=chunk) - Subsequent to the reporting period, the Board authorized a share repurchase program for up to **USD 50 million** of American Depositary Shares or shares, valid for two years[114](index=114&type=chunk) Review Report on Condensed Consolidated Financial Statements Deloitte Touche Tohmatsu has reviewed Noah Holdings' condensed consolidated financial statements for the six months ended June 30, 2024, in accordance with Hong Kong Standard on Review Engagements 2410; the review concluded that nothing indicated the financial statements were not prepared, in all material respects, in accordance with U.S. GAAP - Deloitte Touche Tohmatsu has reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements 2410[121](index=121&type=chunk)[122](index=122&type=chunk) - The review concluded that nothing indicated the condensed consolidated financial statements were not prepared, in all material respects, in accordance with U.S. GAAP[123](index=123&type=chunk) Condensed Consolidated Balance Sheets As of June 30, 2024, the company's total assets were **RMB 12,467,005 thousand** and total liabilities were **RMB 2,736,654 thousand**; cash and cash equivalents decreased, short-term investments significantly increased, and dividends payable rose substantially due to recent distributions [Condensed Consolidated Balance Sheets](index=35&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summary of Condensed Consolidated Balance Sheets (RMB thousands) | Metric | December 31, 2023 (Audited) | June 30, 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | 5,192,127 | 4,604,946 | (11.3%) | | Short-term investments | 379,456 | 1,287,400 | 239.3% | | Total assets | 12,685,378 | 12,467,005 | (1.7%) | | **Liabilities and Equity** | | | | | Dividends payable | – | 1,018,000 | Not applicable | | Contingent liabilities | 482,802 | 475,777 | (1.5%) | | Total liabilities | 2,257,815 | 2,736,654 | 21.2% | | Total shareholders' equity | 10,427,563 | 9,730,351 | (6.8%) | Condensed Consolidated Statements of Operations For the six months ended June 30, 2024, the company's total revenue decreased by 27.3% year-on-year, and net revenue declined by 27.5%; operating income significantly fell by 59.3%, net income decreased by 57.6%, and both basic and diluted earnings per share dropped to **RMB 0.66** [Condensed Consolidated Statements of Operations](index=37&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Summary of Condensed Consolidated Statements of Operations (RMB thousands) | Metric | H1 2023 (Unaudited) | H1 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 1,754,236 | 1,274,843 | (27.3%) | | Net revenue | 1,745,230 | 1,265,389 | (27.5%) | | Operating income | 628,302 | 255,501 | (59.3%) | | Net income | 555,631 | 235,556 | (57.6%) | | Net income attributable to shareholders | 559,638 | 231,278 | (58.7%) | | Basic earnings per share | 1.61 | 0.66 | (59.0%) | | Diluted earnings per share | 1.61 | 0.66 | (59.0%) | Condensed Consolidated Statements of Comprehensive Income For the six months ended June 30, 2024, the company's comprehensive income was **RMB 318,239 thousand**, a 53.1% year-on-year decrease; foreign currency translation adjustments contributed **RMB 82,683 thousand** to other comprehensive income [Condensed Consolidated Statements of Comprehensive Income](index=39&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Summary of Condensed Consolidated Statements of Comprehensive Income (RMB thousands) | Metric | H1 2023 (Unaudited) | H1 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | Net income | 555,631 | 235,556 | (57.6%) | | Foreign currency translation adjustments | 123,918 | 82,683 | (33.3%) | | Total other comprehensive income, net of tax | 123,918 | 82,683 | (33.3%) | | Comprehensive income | 679,549 | 318,239 | (53.1%) | | Comprehensive income attributable to shareholders | 683,738 | 315,221 | (53.9%) | Condensed Consolidated Statements of Changes in Equity As of June 30, 2024, total shareholders' equity was **RMB 9,730,351 thousand**, a decrease from the beginning of the year; key changes included net income contribution, **RMB 1,018,000 thousand** in dividends distributed, increased share-based compensation, and a reduction in non-controlling interests [Condensed Consolidated Statements of Changes in Equity](index=40&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Summary of Condensed Consolidated Statements of Changes in Equity (RMB thousands) | Metric | January 1, 2024 (Audited) | June 30, 2024 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Total equity attributable to Noah Holdings Limited shareholders | 10,310,334 | 9,667,069 | (643,265) | | Non-controlling interests | 117,229 | 63,282 | (53,947) | | **Total Shareholders' Equity** | **10,427,563** | **9,730,351** | **(697,212)** | | Net income | – | 231,278 | 231,278 | | Dividends declared and distributed | – | (1,018,000) | (1,018,000) | | Share-based compensation | – | 58,479 | 58,479 | | Other comprehensive income (loss) – foreign currency translation adjustments | – | 83,943 | 83,943 | | Decrease in non-controlling interests | – | (51,835) | (51,835) | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2024, net cash used in operating activities was **RMB (132,150) thousand**, net cash used in investing activities was **RMB (607,279) thousand**, and net cash used in financing activities was **RMB (56,877) thousand**, resulting in a net decrease in cash, cash equivalents, and restricted cash [Condensed Consolidated Statements of Cash Flows](index=42&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summary of Condensed Consolidated Statements of Cash Flows (RMB thousands) | Metric | H1 2023 (Unaudited) | H1 2024 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | 721,611 | (132,150) | (853,761) | | Net cash used in investing activities | (352,246) | (607,279) | (255,033) | | Net cash provided by/(used in) financing activities | 2,619 | (56,877) | (59,496) | | Effect of exchange rate changes | 84,588 | 59,267 | (25,321) | | Net increase (decrease) in cash, cash equivalents and restricted cash | 456,572 | (737,040) | (1,193,612) | | Cash, cash equivalents and restricted cash - end of period | 4,891,189 | 4,617,020 | (274,169) | Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations of the company's accounting policies, financial statement line items, and other disclosures, including organization, revenue recognition, fair value measurements, and contingencies [1. Organization and Principal Activities](index=45&type=section&id=1.%20Organization%20and%20Principal%20Activities) Noah Holdings is a leading wealth management service provider in China, primarily offering global investment and asset allocation advisory services to high-net-worth investors; as of June 30, 2024, the Group operates through over **200 subsidiaries** and key consolidated variable interest entities, such as Noah Investment and Gopher Asset Management - The Group is a pioneer and leading wealth management service provider in China, primarily targeting high-net-worth investors[145](index=145&type=chunk) - As of June 30, 2024, the Group conducts business operations through **over 200 subsidiaries**[146](index=146&type=chunk) - Key consolidated variable interest entities include Noah Investment, Gopher Asset Management Co., Ltd., among others, controlled through contractual arrangements[147](index=147&type=chunk) [2. Summary of Significant Accounting Policies](index=48&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the basis of preparation for the Group's condensed consolidated financial statements, including adherence to U.S. GAAP, retrospective adjustments for share splits, consolidation principles (including VIEs and investment funds), application of key accounting estimates, concentration of credit risk, and revenue recognition policies - The condensed consolidated financial statements are prepared in accordance with U.S. GAAP and have been retrospectively adjusted for the share split[148](index=148&type=chunk)[150](index=150&type=chunk) - The Group controls variable interest entities through contractual arrangements and assesses whether investment funds are VIEs and if it is the primary beneficiary to determine consolidation[152](index=152&type=chunk)[154](index=154&type=chunk) - Revenue recognition follows ASC 606 guidance, with primary revenue streams including fundraising fees, management fees, and performance-based fees, detailing recognition timing and variable consideration treatment[164](index=164&type=chunk)[167](index=167&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) - The Expected Credit Loss (CECL) model is used to assess allowance for credit losses on financial instruments, with continuous monitoring of industry regulatory changes for their anticipated financial impact[178](index=178&type=chunk) [2(a) Basis of Presentation](index=48&type=section&id=2(a)%20Basis%20of%20Presentation) The condensed consolidated financial statements are prepared in accordance with U.S. GAAP and comply with Hong Kong Listing Rules and Companies Ordinance requirements; all share and per-share amounts have been retrospectively adjusted to reflect the 1-for-10 share split effective October 26, 2023 - The condensed consolidated financial statements are prepared in accordance with U.S. GAAP and comply with the Hong Kong Listing Rules and Companies Ordinance requirements[148](index=148&type=chunk) - All share and per-share amounts have been retrospectively adjusted to reflect the 1-for-10 share split effective October 26, 2023[150](index=150&type=chunk) [2(b) Principles of Consolidation](index=49&type=section&id=2(b)%20Principles%20of%20Consolidation) The Group consolidates its subsidiaries and variable interest entities, controlling asset management businesses in China through contractual arrangements; for investment funds, the Group assesses whether they are VIEs and if it is the primary beneficiary to determine consolidation; as of June 30, 2024, VIEs contributed **27.0%** of consolidated net revenue and **1.2%** of net income - The Company conducts asset management business and consolidates the financial results of its Chinese subsidiaries and variable interest entities through contractual arrangements[153](index=153&type=chunk) - For investment funds, the Group assesses whether they are variable interest entities and determines if it is the primary beneficiary to decide on consolidation[154](index=154&type=chunk)[155](index=155&type=chunk) VIE Contribution (for the six months ended June 30, 2024) | Metric | Contribution Ratio | | :--- | :--- | | Consolidated net revenue | 27.0% | | Consolidated net income | 1.2% | [2(e) Revenue Recognition](index=54&type=section&id=2(e)%20Revenue%20Recognition) The Group recognizes revenue under ASC 606 guidance, with primary revenue streams including fundraising fees (fund distribution and insurance brokerage), management fees, and performance-based fees; fundraising fees are recognized upon investment product establishment or insurance contract effectiveness, management fees are recognized daily, and performance-based fees are recognized when significant reversal is improbable; the Group also applies practical expedients for sales commissions and unfulfilled performance obligations - Revenue recognition follows ASC 606 guidance, involving the identification of contracts, performance obligations, allocation of transaction prices, and timing of revenue recognition[164](index=164&type=chunk) - Fundraising fee revenue is recognized upon investment product establishment or insurance contract effectiveness, management fees are recognized daily, and performance-based fees are recognized when significant reversal is improbable[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) - The Group applies practical expedients, expensing sales commissions and not disclosing the value of unfulfilled performance obligations for certain revenue streams[176](index=176&type=chunk) [2(g) Allowance for Credit Losses](index=59&type=section&id=2(g)%20Allowance%20for%20Credit%20Losses) The Group assesses financial instruments measured at amortized cost (e.g., loans receivable, amounts due from related parties, accounts receivable) using the Expected Credit Loss (CECL) model; loan loss allowances are estimated using probability of default and loss given default, while allowances for accounts receivable and other financial assets are assessed by grouping based on risk characteristics, considering historical experience, current economic conditions, and future forecasts - The Group uses the Expected Credit Loss (CECL) model to estimate credit losses for financial instruments measured at amortized cost[178](index=178&type=chunk) - Loan loss allowances are estimated using assumptions for probability of default and loss given default, considering collateral value, loan term, and historical loss data[179](index=179&type=chunk) - Allowances for accounts receivable and other financial assets are assessed by grouping based on risk characteristics, considering historical credit loss experience, current economic conditions, and future forecasts[180](index=180&type=chunk) Changes in Allowance for Credit Losses (RMB thousands) | Asset Class | Beginning of 2023 | Beginning of 2024 | End of 2024 | | :--- | :--- | :--- | :--- | | Amounts due from related parties | 25,666 | 23,394 | 22,019 | | Accounts receivable | 3,647 | 6,862 | 12,993 | [3. Earnings Per Share](index=62&type=section&id=3.%20Earnings%20Per%20Share) For the six months ended June 30, 2024, the company's basic and diluted earnings per share were both **RMB 0.66**, a significant decrease from **RMB 1.61** in the prior year period; the calculation included shares issuable to Camsing incident investors and excluded anti-dilutive instruments Earnings Per Share (RMB) | Metric | H1 2023 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Basic earnings per share | 1.61 | 0.66 | | Diluted earnings per share | 1.61 | 0.66 | - Shares issuable to Camsing incident investors have been included in the calculation of basic earnings per share[182](index=182&type=chunk) - Diluted earnings per share did not include anti-dilutive instruments such as stock options and unvested restricted share awards under share incentive schemes[183](index=183&type=chunk)[184](index=184&type=chunk) [4. Accounts Receivable, Net](index=63&type=section&id=4.%20Accounts%20Receivable,%20Net) As of June 30, 2024, the company's net accounts receivable amounted to **RMB 429,417 thousand**, a decrease from December 31, 2023; **90.6%** of these receivables are due within one year Accounts Receivable, Net (RMB thousands) | Metric | December 31, 2023 (Audited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Total accounts receivable | 510,840 | 442,410 | | Allowance for credit losses | (6,862) | (12,993) | | **Accounts Receivable, Net** | **503,978** | **429,417** | - As of June 30, 2024, **90.6%** of the accounts receivable balance is due within one year[63](index=63&type=chunk)[185](index=185&type=chunk) [5. Investments](index=64&type=section&id=5.%20Investments) As of June 30, 2024, the company's total investments were **RMB 2,029,722 thousand**, a significant increase from December 31, 2023; held-to-maturity investments and time deposits within short-term investments grew substantially, while long-term investments slightly decreased; consolidated investment funds reflect their investments at fair value Total Investments (RMB thousands) | Investment Type | December 31, 2023 (Audited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Total short-term investments | 379,456 | 1,287,400 | | Total long-term investments | 810,484 | 742,322 | | **Total Investments** | **1,189,940** | **2,029,722** | - Held-to-maturity investments and time deposits within short-term investments increased from **RMB 158,728 thousand** to **RMB 952,194 thousand**[186](index=186&type=chunk) - Consolidated investment funds reflect their investments at fair value, with unrealized gains and losses recognized in the condensed consolidated statements of operations[187](index=187&type=chunk) [6. Fair Value Measurements](index=65&type=section&id=6.%20Fair%20Value%20Measurements) The company uses fair value measurements for various assets, categorized into three levels based on active market quotes, observable inputs, and unobservable inputs; as of June 30, 2024, trading debt securities and some equity securities are classified as Level 1, certain consolidated investment funds and asset management schemes as Level 2, and private equity funds as Level 3, with their valuations involving subjective judgments and assumptions - Trading debt securities and short-term equity securities measured at fair value are classified as Level 1[190](index=190&type=chunk) - Bond products and asset management schemes held by consolidated investment funds not traded in active markets are classified as Level 2[191](index=191&type=chunk) - Private equity funds are classified as Level 3, with their valuations using market comparable analysis, involving subjective judgments and unobservable inputs[192](index=192&type=chunk) Changes in Level 3 Investments (RMB thousands) | Metric | December 31, 2023 (Audited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Beginning balance | 546,543 | 557,074 | | Transfers from Level 2 to Level 3 | 15,777 | 15,777 | | Fair value changes recognized in investment income | (1,210) | (1,210) | | Settlements | (10,682) | (10,682) | | Exchange adjustments | 6,646 | 6,646 | [7. Investments in Affiliates](index=69&type=section&id=7.%20Investments%20in%20Affiliates) As of June 30, 2024, the company's total investments in affiliates were **RMB 1,445,356 thousand**, a slight decrease; key investments include Kunshan Jingzhao, Wanjia Gongying, and various private equity funds-of-funds and real estate funds where Gopher acts as general partner or fund manager, all accounted for using the equity method Investments in Affiliates Balance (RMB thousands) | Investment Type | December 31, 2023 (Audited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Kunshan Jingzhao | 8,690 | 8,370 | | Wanjia Gongying | 89,249 | 88,014 | | Funds where Gopher acts as general partner | 1,412,766 | 1,337,304 | | **Total** | **1,526,544** | **1,445,356** | - The Group invests in private equity funds-of-funds, real estate funds, and other funds where Gopher acts as general partner or fund manager, and these are accounted for using the equity method[196](index=196&type=chunk) [8. Property and Equipment, Net](index=71&type=section&id=8.%20Property%20and%20Equipment,%20Net) As of June 30, 2024, the company's net property and equipment amounted to **RMB 2,416,072 thousand**, a slight decrease; depreciation expense was **RMB 81,638 thousand**, and a loss of **RMB 4,741 thousand** was recognized from the disposal of property and equipment Property and Equipment, Net (RMB thousands) | Metric | December 31, 2023 (Audited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Buildings | 2,478,634 | 2,478,741 | | Accumulated depreciation | (581,306) | (628,329) | | **Property and Equipment, Net** | **2,482,199** | **2,416,072** | - For the six months ended June 30, 2024, depreciation expense was **RMB 81,638 thousand**, and a loss of **RMB 4,741 thousand** was recognized from the disposal of property and equipment[198](index=198&type=chunk) [9. Other Current Liabilities](index=72&type=section&id=9.%20Other%20Current%20Liabilities) As of June 30, 2024, the company's total other current liabilities were **RMB 420,527 thousand**, a significant decrease from December 31, 2023; key reductions included accrued payroll and benefits expenses, amounts payable to individual investors in other businesses, and litigation payables Composition of Other Current Liabilities (RMB thousands) | Metric | December 31, 2023 (Audited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Accrued expenses | 94,044 | 46,160 | | Customer prepayments | 30,172 | 32,753 | | Amounts payable to individual investors in other businesses | 188,697 | 15,877 | | Amounts payable for property and equipment purchases | 37,018 | 37,848 | | Litigation payables | 99,000 | 60,319 | | **Total** | **681,802** | **420,527** | [10. Revenue](index=73&type=section&id=10.%20Revenue) For the six months ended June 30, 2024, the company's total revenue was **RMB 1,274,843 thousand**, a 27.3% year-on-year decrease; wealth management revenue declined by 34.0%, and asset management revenue by 4.3%; both revenue recognized at a point in time and over time decreased; by product type, both mainland China and overseas revenues decreased, with mainland China insurance product revenue significantly declining Revenue by Segment (RMB thousands) | Business Segment | H1 2023 (Unaudited) | H1 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | Wealth Management Business | 1,336,684 | 881,754 | (34.0%) | | Asset Management Business | 389,930 | 373,272 | (4.3%) | | Other Businesses | 27,622 | 19,817 | (28.3%) | | **Total Revenue** | **1,754,236** | **1,274,843** | **(27.3%)** | Revenue by Timing of Recognition (RMB thousands) | Timing of Recognition | H1 2023 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue recognized at a point in time | 801,798 | 435,683 | | Revenue recognized over time | 952,438 | 839,160 | | **Total Revenue** | **1,754,236** | **1,274,843** | Revenue by Product Type (RMB thousands) | Product Type | H1 2023 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Mainland China public securities products | 309,004 | 237,891 | | Mainland China private equity products | 451,208 | 393,596 | | Mainland China insurance products | 236,745 | 30,616 | | Overseas investment products | 323,913 | 266,757 | | Overseas insurance products | 292,623 | 250,799 | | **Total Revenue** | **1,754,236** | **1,274,843** | [11. Income Taxes](index=75&type=section&id=11.%20Income%20Taxes) The company has tax arrangements in the Cayman Islands, Hong Kong, and mainland China; the mainland China corporate income tax rate is 25%, with some companies enjoying preferential rates; for the six months ended June 30, 2024, income tax expense was **RMB 82,943 thousand**, and the effective income tax rate was **22.27%** - The Cayman Islands has no income or capital gains tax, while Hong Kong subsidiaries are taxed at **8.25% or 16.5%**[205](index=205&type=chunk)[206](index=206&type=chunk) - The corporate income tax rate in mainland China is **25%**, with Zigong Noah Financial Services Co., Ltd. and Shanghai Nuorong Information Technology Co., Ltd. enjoying a **15% preferential tax rate**[207](index=207&type=chunk) Income Tax Expense (RMB thousands) | Metric | H1 2023 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Current tax | 182,665 | 69,177 | | Deferred tax | (22,872) | 13,766 | | **Total** | **159,793** | **82,943** | | Effective income tax rate | 22.50% | 22.27% | [12. Loans Receivable, Net](index=76&type=section&id=12.%20Loans%20Receivable,%20Net) As of June 30, 2024, the company's net loans receivable amounted to **RMB 207,122 thousand**, a decrease from December 31, 2023; overdue loans still represent a high proportion, but the allowance for credit losses decreased; most loans are short-term and secured by collateral Loans Receivable, Net (RMB thousands) | Metric | December 31, 2023 (Unaudited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Within credit period | 98,925 | 36,092 | | Overdue | 267,506 | 244,519 | | Total loans receivable | 366,431 | 280,611 | | Allowance for credit losses | (79,510) | (73,489) | | **Loans Receivable, Net** | **286,921** | **207,122** | - As of June 30, 2024, loan interest rates ranged from **3.9% to 15%**, with most loans being short-term and secured by collateral[209](index=209&type=chunk) Changes in Allowance for Loan Losses (RMB thousands) | Metric | H1 2023 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Beginning allowance for loan losses | 93,859 | 79,510 | | Reversal of allowance for loan losses | (1,689) | (3,926) | | Write-offs | (3,931) | (2,153) | | **Ending allowance for loan losses** | **88,239** | **73,489** | [13. Leases](index=77&type=section&id=13.%20Leases) As of June 30, 2024, the company's operating lease right-of-use assets were **RMB 102,301 thousand**, and total operating lease liabilities were **RMB 102,538 thousand**; operating lease expense was **RMB 35,268 thousand**, with a weighted-average remaining lease term of **2.87 years** Lease-Related Data (RMB thousands) | Metric | December 31, 2023 (Audited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Operating lease right-of-use assets | 139,019 | 102,301 | | Total operating lease liabilities | 138,359 | 102,538 | | Weighted-average remaining lease term (years) | 2.70 | 2.87 | | Weighted-average discount rate | 4.73% | 4.71% | - For the six months ended June 30, 2024, operating lease expense was **RMB 35,268 thousand**[211](index=211&type=chunk) [14. Share-Based Compensation](index=78&type=section&id=14.%20Share-Based%20Compensation) For the six months ended June 30, 2024, the company's total share-based compensation was **RMB 58,479 thousand**, primarily from unvested restricted share awards; the company granted restricted share units to employees and directors under the 2022 Share Incentive Scheme, with related unrecognized compensation expense expected to be recognized over the next **2.65 years** Share-Based Compensation (RMB thousands) | Award Type | H1 2023 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Stock options | (3,318) | 9 | | Unvested restricted share awards | (5,926) | 58,470 | | **Total** | **(9,244)** | **58,479** | - For the six months ended June 30, 2024, **929,241 restricted share units** were granted to employees under the 2022 Share Incentive Scheme, with **100,000** granted to directors[215](index=215&type=chunk) - As of June 30, 2024, total unrecognized compensation expense related to unvested restricted share awards was **RMB 121,207 thousand**, expected to be recognized over a weighted-average period of **2.65 years**[215](index=215&type=chunk) [15. Camsing Settlement](index=79&type=section&id=15.%20Camsing%20Settlement) To maintain relationships with affected investors, the company voluntarily offered a Camsing incident settlement plan, granting restricted share units to accepting investors; as of June 30, 2024, **601 investors** accepted the settlement, representing **76.3%** of the total outstanding investment; during the reporting period, the company recognized a gain of **RMB 11.5 million** due to the reversal of settlement expenses - The company voluntarily offered a preferential settlement to investors affected by the Camsing incident, granting restricted share units in exchange for waiving legal rights[217](index=217&type=chunk) - As of June 30, 2024, **601 (approximately 73.5%)** of **818 investors** accepted the settlement, representing **RMB 2.6 billion** of the total outstanding investment of **RMB 3.4 billion**[218](index=218&type=chunk) - For the six months ended June 30, 2024, the company recognized a gain of **RMB 11.5 million** due to the reversal of settlement expenses[218](index=218&type=chunk) [16. Employee Benefit Plans](index=79&type=section&id=16.%20Employee%20Benefit%20Plans) Most of the company's full-time employees participate in government-mandated multi-employer defined contribution plans in China, including pension, medical, and unemployment insurance; for the six months ended June 30, 2024, total employee benefit contributions were **RMB 131,225 thousand** - Most of the company's full-time employees participate in government-mandated multi-employer defined contribution plans in China, including pension insurance, unemployment insurance, maternity insurance, work-related injury insurance, medical insurance, and housing provident funds[219](index=219&type=chunk) - For the six months ended June 30, 2024, total employee benefit contributions were **RMB 131,225 thousand**[219](index=219&type=chunk) [17. Segment Information](index=80&type=section&id=17.%20Segment%20Information) The company primarily operates in three reportable segments: wealth management, asset management, and other businesses; for the six months ended June 30, 2024, both wealth management and asset management segments experienced declines in revenue and operating income, while other businesses recorded an operating loss; revenue is primarily derived from mainland China and Hong Kong - The company primarily operates in three reportable segments: wealth management, asset management, and other businesses[220](index=220&type=chunk) Revenue and Operating Income by Business Segment (RMB thousands) | Metric | Wealth Management Business | Asset Management Business | Other Businesses | Total | | :--- | :--- | :--- | :--- | :--- | | **H1 2024 Revenue** | | | | | | Total revenue | 881,754 | 373,272 | 19,817 | 1,274,843 | | Net revenue | 878,306 | 372,670 | 14,413 | 1,265,389 | | **H1 2024 Operating Income** | | | | | | Operating income (loss) | 130,756 | 171,398 | (46,653) | 255,501 | Revenue by Geographic Region (RMB thousands) | Region | H1 2023 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Mainland China | 1,039,337 | 689,454 | | Overseas | 714,899 | 585,389 | | **Total Revenue** | **1,754,236** | **1,274,843** | [18. Related Party Transactions](index=84&type=section&id=18.%20Related%20Party%20Transactions) The company engages in transactions with multiple related parties, including Gopher Asset-managed funds and Gopher Capital GP Ltd.-managed funds; for the six months ended June 30, 2024, total related party transaction revenue was **RMB 565,195 thousand**, primarily from management fees; total trade and non-trade amounts due from related parties were **RMB 418,074 thousand** and **RMB 48,882 thousand**, respectively - Key related parties include Sequoia Capital Investment Management (Tianjin) Co., Ltd., Wanjia Gongying, Gopher Asset-managed funds, among others[226](index=226&type=chunk) Related Party Transaction Revenue (RMB thousands) | Revenue Type | H1 2023 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Fundraising fee income | 11,878 | 10,956 | | Total management fees | 562,901 | 521,982 | | Total performance-based income | 103,960 | 32,257 | | **Total** | **678,739** | **565,195** | Amounts Due from Related Parties (RMB thousands) | Type | December 31, 2023 (Audited) | June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Total trade amounts due from related parties | 331,531 | 418,074 | | Total non-trade amounts due from related parties | 85,754 | 48,882 | [19. Contingencies](index=87&type=section&id=19.%20Contingencies) The company faces contingent liabilities of **RMB 475.8 million** related to the Camsing incident, along with legal proceedings from **44 investors** claiming over **RMB 149.0 million**; in a prior civil lawsuit involving Noah (Shanghai) Financial Leasing Co., Ltd., the appeal upheld the first-instance ruling, and the company had reserved **RMB 99.0 million** in contingent liabilities and made partial payments - As of June 30, 2024, the company's contingent liabilities related to the unresolved Camsing incident amounted to **RMB 475.8 million**[230](index=230&type=chunk) - Legal proceedings filed by **44 investors** against Shanghai Gopher and/or its affiliates remain unresolved, with total claims exceeding **RMB 149.0 million**[230](index=230&type=chunk) - In a civil lawsuit involving Noah (Shanghai) Financial Leasing Co., Ltd., the appeal judgment upheld the first-instance ruling, and the company had reserved **RMB 99.0 million** in contingent liabilities and paid **RMB 38.7 million**[232](index=232&type=chunk) [20. Dividends](index=88&type=section&id=20.%20Dividends) Total 2023 final dividend and special non-recurring dividend declared during the interim period, approximately **RMB 1,018.0 million**, remained unpaid as of June 30, 2024, but were fully distributed on August 29, 2024; the company does not recommend any interim dividend for the six months ended June 30, 2024 - Total 2023 final dividend and special non-recurring dividend declared during the interim period, approximately **RMB 1,018.0 million**, were fully distributed on August 29, 2024[234](index=234&type=chunk) - The company does not recommend any interim dividend for the six months ended June 30, 2024[234](index=234&type=chunk) [21. Adjustments between U.S. GAAP and IFRS](index=89&type=section&id=21.%20Adjustments%20between%20U.S.%20GAAP%20and%20IFRS) This section details the main differences and adjustment impacts between U.S. GAAP and IFRS in financial statement preparation, primarily concerning the classification of cash and cash equivalents, recognition of share-based compensation, and deferred income tax treatment arising from asset acquisitions - Under IFRS, deposits in money market funds are classified as short-term investments, not cash equivalents[241](index=241&type=chunk) - Share-based compensation under IFRS features graded vesting, leading to accelerated expense recognition, differing from the straight-line method under U.S. GAAP[242](index=242&type=chunk) - Under IFRS, deferred tax liabilities are not recognized for taxable temporary differences arising from non-business acquisitions, which differs from U.S. GAAP[243](index=243&type=chunk)[244](index=244&type=chunk) Definitions and Acronyms This section provides definitions for key terms and acronyms used in the interim report, covering company names, share incentive schemes, financial metrics, regulatory bodies, and geographical regions, to ensure clear understanding of the report content - This section provides definitions for key terms and acronyms used in the report, including share incentive schemes (e.g., **2022 Share Incentive Scheme**), financial metrics (e.g., **AUM**, **fundraising volume**), and regulatory bodies (e.g., **HKEX**, **SEC**)[245](index=245&type=chunk)[247](index=247&type=chunk)[249](index=249&type=chunk)[252](index=252&type=chunk)
Noah Holdings: Q2 Results Miss And New Buyback Plan Draw Attention

Seeking Alpha· 2024-08-30 09:56
Core Viewpoint - Noah Holdings Limited's Q2 2024 results were disappointing, missing consensus estimates, but the company has announced a new share buyback program that could enhance shareholder yield to a mid-teens percentage range [1][7]. Financial Performance - Noah Holdings reported Q2 2024 revenue of RMB 615.8 million and a net profit of RMB 99.8 million, which were -4% and -17% below consensus estimates of RMB 642.0 million and RMB 120.0 million, respectively [3]. - Year-over-year, the company's revenue and net income fell by -35% and -68%, respectively [3]. - Revenue from Mainland China and international operations dropped by -39% YoY and -29% YoY, amounting to RMB 337.2 million and RMB 278.6 million, respectively [3]. Business Challenges - The company has temporarily suspended the distribution of domestic insurance products due to concerns over the underlying asset quality of insurance firms in Mainland China [3]. - The slowdown in revenue from global insurance products is attributed to a competitive market environment [3]. - Management indicated that both domestic and international businesses are facing challenges from a shift away from riskier insurance offerings and increased competition [3]. Cost Management - Noah Holdings implemented cost control measures, including streamlining its branch network, resulting in a -19% decline in total operating expenses [4]. - Despite these measures, the decline in revenue led to a contraction in operating profit margin and net margin by -15.3 percentage points and -16.4 percentage points YoY, respectively [4]. Share Buyback Program - The company announced a two-year $50 million share buyback plan, which is expected to enhance return on equity (ROE) and capital allocation efficiency [5][6]. - Noah Holdings is currently trading at a low trailing price-to-book (P/B) multiple of 0.35 times, with a recent ROE of 10.3%, lower than its historical average of 14.2% [6]. - The potential annualized buyback yield could reach 5%, and adjusted forward dividend yields for FY 2024 and FY 2025 are estimated to be in the range of 9.0%-9.5% [6]. Conclusion - While Noah Holdings' Q2 2024 results were below expectations and a quick turnaround seems unlikely, the new share buyback program could provide an attractive shareholder yield in the mid-teens percentage range [7].
NOAH HOLDINGS(NOAH) - 2024 Q2 - Earnings Call Transcript

2024-08-29 12:55
Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were RMB 621 million, a decrease of 34.3% year-on-year and 5.1% sequentially, primarily due to a strategic decision to reduce the distribution of various products domestically [10][25][29] - For the first half of 2024, total revenues were RMB 1.3 billion, a decrease of 27.5% year-on-year, attributed to challenges from the ongoing transformation [25][28] - Operating profits for Q2 increased by 10.3% sequentially to RMB 134 million, with an operating margin of 21.8% [34] Business Line Data and Key Metrics Changes - Domestic public security segment generated RMB 118 million in revenue, a decrease of 20.8% year-on-year [11] - Domestic asset management segment generated total revenue of RMB 198 million, a decrease of 5.4% year-on-year [12] - Domestic insurance brokerage segment revenue was RMB 12 million, a 93.1% year-on-year decrease due to concerns over underlying asset quality [14] - International wealth management business saw revenues from online services increase by 221.9% year-on-year, reaching RMB 7 million [18] Market Data and Key Metrics Changes - Overseas AUA reached US$8.5 billion, a 7.4% year-on-year increase [16] - The number of overseas registered clients exceeded 16,700, an increase of 23% year-on-year [17] - Transaction value for US dollar private equity products reached US$152 million, a significant increase of 46.2% year-on-year [20] Company Strategy and Development Direction - The company is focusing on a clear separation between domestic and international business, optimizing its operating model and organizational structure [5][6] - New brands such as ARK Wealth Management and Olive Asset Management have been launched to enhance service offerings and expand market reach [7][8] - The strategic direction includes enhancing product competitiveness and expanding the global market, particularly targeting Mandarin-speaking high-net-worth clients [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging investment and regulatory environment but remains confident in the demand for RMB asset allocation from high-net-worth clients [9][10] - The company expects a slowdown in performance in the next few quarters due to external challenges and internal transformation, viewing this as a necessary phase for future growth [22][36] - Management emphasizes a commitment to client asset protection and compliance, prioritizing long-term sustainability [10][23] Other Important Information - The board has authorized a US$50 million share repurchase program, reflecting confidence in the company's valuation and commitment to shareholder returns [24][37] - The company maintains a healthy liquidity position with a current ratio of 3.0 times and zero interest-bearing debt [35] Q&A Session Summary Question: What is the driver behind the RMB 50 million loss from equity affiliates recorded in Q2? - The loss is related to co-investments in funds where valuation adjustments of underlying funds impacted equity pickups [39][40] Question: What is the expected duration of the transition period and the drivers for growth in overseas AUA? - Management expects the transition period to take time due to internal adjustments and market conditions, but sees strong growth potential in the high-net-worth individual market [39][41] Question: How is the company addressing challenges in the domestic insurance market? - The company has repositioned its insurance focus towards healthcare and retirement products, with early marketing efforts showing promising interest [42][43]
诺亚控股(06686) - 2024 - 中期业绩

2024-08-28 22:17
Financial Performance - For the six months ending June 30, 2024, the company's net income was RMB 1,265.4 million, a decrease of 27.5% compared to RMB 1,743.0 million in the same period of 2023, primarily due to reduced insurance product distribution[6]. - Shareholders' net profit dropped 58.7% from RMB 559.6 million for the six months ending June 30, 2023, to RMB 231.3 million for the same period in 2024[6]. - Non-GAAP shareholders' net income decreased by 51.6% from RMB 552.6 million to RMB 267.2 million, attributed to lower net income and increased employee compensation and benefits costs[6]. - Total revenue for the six months ended June 30, 2024, was RMB 1,274,843, a decrease of 27.3% compared to RMB 1,754,236 for the same period in 2023[52]. - Net income for the same period was RMB 235,556, down 57.6% from RMB 555,631 in 2023[56]. - The company reported a total comprehensive income of RMB 318,239 for the six months ended June 30, 2024, compared to RMB 679,549 in 2023[56]. - The company's operating income for the six months ended June 30, 2024, was RMB 255,501, a significant decrease from RMB 628,302 in 2023[54]. Revenue Breakdown - Wealth management business generated total revenue of RMB 881.8 million, a decrease of 34.0% compared to RMB 1,336.7 million in the first half of 2023[14]. - Total revenue from fundraising fees decreased by 44.1% from RMB 579.5 million to RMB 324.1 million, primarily due to reduced distribution of insurance products[18]. - Total revenue from management fees decreased by 15.6% from RMB 570.5 million to RMB 481.5 million, mainly due to a decrease in service fees charged to fund managers[18]. - Performance fee revenue dropped by 85.7% from RMB 77.3 million to RMB 11.1 million, attributed to reduced performance fees from overseas private equity products[18]. - Total revenue from asset management business was RMB 373.3 million, down 4.3% from RMB 389.9 million in the same period last year[15]. - Total revenue from wealth management decreased by 9.7% to RMB 747.6 million for the six months ending June 30, 2024, from RMB 827.5 million[20]. Asset Management - The overseas product fundraising volume increased by 49.3% from RMB 10.9 billion to RMB 16.3 billion during the reporting period[6]. - The asset management scale of overseas products grew by 14.3% from RMB 34.2 billion to RMB 39.1 billion as of June 30, 2024[6]. - The asset management scale remained stable at RMB 154 billion, a slight decrease of 1.8% from RMB 156.9 billion[15]. - The overseas asset management scale grew by 14.3% to RMB 39.1 billion, benefiting from expanded coverage of global general partners and hedge fund managers[15]. - Regular management fees increased by 7.2% year-on-year, indicating a higher proportion of asset management scale from dollar-denominated products[12]. Cost Management - Operating costs and expenses decreased by 9.6% to RMB 1,009.9 million for the six months ending June 30, 2024, from RMB 1,116.9 million[21]. - Compensation and benefits decreased by 9.2% to RMB 685.8 million for the six months ending June 30, 2024, compared to RMB 755.2 million[25]. - Sales expenses for wealth management dropped by 42.1% to RMB 90.9 million for the six months ending June 30, 2024, from RMB 156.9 million[26]. - General and administrative expenses for wealth management increased by 27.5% to RMB 97.2 million for the six months ending June 30, 2024, from RMB 76.2 million[27]. Shareholder Returns - The company plans to distribute up to 50% of the annual net profit attributable to shareholders as part of its capital management and shareholder return policy, which includes dividends and share buybacks[5]. - The company paid a final dividend of RMB 509.0 million (approximately USD 71.7 million), equivalent to 50% of its 2023 net profit attributable to shareholders[5]. - The company did not recommend an interim dividend for the six months ended June 30, 2024[50]. Governance and Management - The board has appointed new independent directors to enhance governance and strategic direction[4]. - The company has maintained compliance with corporate governance codes throughout the reporting period[43]. - The board of directors includes Chairwoman Wang Jingbo and several other directors, indicating a diverse leadership team[91]. Legal Matters - The company is involved in ongoing legal proceedings with 44 investors, with total claims exceeding RMB 149 million[48]. - The company is currently involved in a legal matter related to the "承興事件," with potential liabilities amounting to RMB 3.4 billion[77]. - The company has not identified any significant unresolved legal or administrative proceedings that could materially impact its business or financial condition[80]. Future Plans - The company plans to launch company secretary and real estate brokerage services in Dubai, with similar services expected in Japan and other markets[12]. - The company plans to expand its QDII product offerings and enhance partnerships with QDLP distributors to increase the supply of quality overseas assets[16]. - The company aims to recruit 200 financial advisors in the short term and 300 in the medium term to strengthen its presence in key international markets[16]. - The company has set a timeline to fully utilize the remaining proceeds by the end of 2024 for various business expansions[46].
诺亚控股(06686) - 2024 Q2 - 季度业绩

2024-08-28 22:12
Financial Performance - In Q2 2024, net revenue was RMB 615.8 million (USD 84.7 million), a decrease of 34.6% year-over-year and 5.2% quarter-over-quarter, primarily due to reduced distribution of insurance products[4]. - Net income from mainland China in Q2 2024 was RMB 337.2 million (USD 46.4 million), down 38.5% compared to Q2 2023, mainly due to decreased distribution of insurance and private equity fund products[4]. - Operating income for Q2 2024 was RMB 134.0 million (USD 18.4 million), a decline of 61.6% year-over-year, but an increase of 10.3% quarter-over-quarter due to effective cost control measures[6]. - The company reported a net income attributable to shareholders of RMB 99.8 million (USD 13.7 million) in Q2 2024, down 68.4% year-over-year[7]. - Non-GAAP net income attributable to shareholders for Q2 2024 was RMB 106.1 million (USD 14.6 million), a decrease of 66.1% year-over-year[9]. - Q2 2024 net profit was RMB 103.7 million (USD 14.3 million), a decrease of 66.8% compared to Q2 2023[25]. - The net profit margin for Q2 2024 was 16.8%, down from 33.2% in Q2 2023[25]. - For Q2 2024, the non-GAAP net income attributable to Noah shareholders was RMB 106.1 million (USD 14.6 million), a decrease of 66.1% compared to the same period in 2023[26]. - The diluted net income per American Depositary Share for Q2 2024 was RMB 1.51 (USD 0.21), a decline from RMB 4.51 in the same quarter of 2023[26]. - The company achieved a net income of RMB 312,296 thousand for the three months ended June 30, 2024, a 66.8% increase from RMB 103,693 thousand in the same period of 2023[44]. Client Metrics - The number of registered clients as of June 30, 2024, was 459,072, an increase of 2.8% year-over-year and 0.3% quarter-over-quarter[10]. - Active clients in Q2 2024 totaled 8,634, a decrease of 25.2% year-over-year and 16.9% quarter-over-quarter[10]. - The number of overseas financial advisors increased by 24.2% to 113 as of June 30, 2024, compared to March 31, 2024[14]. - The number of registered overseas clients increased by 23.0% to 16,786 as of June 30, 2024, compared to 13,650 in the previous year[52]. - The number of active overseas clients surged by 62.8% to 3,244 from 1,993 year-over-year[52]. Investment Products - Total value of distributed investment products in Q2 2024 was RMB 14.4 billion (USD 2 billion), a decrease of 21.7% year-over-year, primarily due to a 29.3% decline in mutual fund product distribution[10]. - The company distributed RMB 79 billion (USD 11 billion) in overseas investment products in Q2 2024, an increase of 40.8% year-over-year, driven by a significant rise in overseas mutual fund product distribution[10]. - The total value of public fund products in mainland China was RMB 10.1 billion, accounting for 79.1% of the total investment products as of June 30, 2023[12]. - The total value of overseas public fund products was RMB 1.9 billion, representing 34.4% of the total overseas investment products as of June 30, 2023[13]. - The total value of private securities fund products in mainland China was RMB 1.9 billion, accounting for 15.2% of the total investment products as of June 30, 2023[12]. - The total value of other products in mainland China was RMB 0.6 billion, representing 4.6% of the total investment products as of June 30, 2023[13]. - The revenue from insurance products in mainland China surged by 93.1%, reaching RMB 171,543 thousand from RMB 11,753 thousand[51]. - Public fund products saw a significant growth of 29.3%, rising to RMB 12,031 million from RMB 8,501 million[47]. Asset Management - As of June 30, 2024, the total asset management scale remained relatively stable at RMB 154 billion (USD 21.2 billion), compared to RMB 156.9 billion as of June 30, 2023[15]. - The asset management scale in mainland China was RMB 114.9 billion (USD 15.8 billion) as of June 30, 2024, down from RMB 122.7 billion as of June 30, 2023[15]. - The total asset management scale for overseas products was RMB 39.1 billion as of June 30, 2024, with a growth of 3.4%[18]. - The overseas assets under management grew by 14.3% to RMB 39.1 billion, up from RMB 34.2 billion[52]. Cash Flow and Financing - As of June 30, 2024, the company's cash and cash equivalents amounted to RMB 4,604.9 million (USD 633.7 million), down from RMB 5,129.4 million as of March 31, 2024[27]. - The net cash inflow from operating activities for Q2 2024 was RMB 49.6 million (USD 6.8 million), primarily due to cash inflows from operating net income[28]. - The net cash outflow from investing activities for Q2 2024 was RMB 548.2 million (USD 75.4 million), mainly due to cash used for short-term investments[28]. - The net cash outflow from financing activities for Q2 2024 was RMB 44.6 million (USD 6.1 million), compared to a net cash inflow of RMB 87.0 million in the same period of 2023[28]. - The company has authorized a share repurchase plan to buy back up to USD 50 million of its American Depositary Shares or common stock, effective immediately for a period of two years[29]. - The company initiated a USD 50 million share repurchase plan to enhance capital returns to shareholders[19]. Future Strategies - The company plans to continue investing in research and development to enhance its product offerings and services[38]. - Future business development strategies will focus on maintaining and strengthening relationships with key clients and expanding market presence[38]. - The company plans to expand its product offerings and enhance its market presence through strategic initiatives and new technology developments[50].
NOAH HOLDINGS(NOAH) - 2024 Q2 - Quarterly Report

2024-08-28 21:00
Financial Performance - Net revenues for Q1 2024 were RMB649.5 million (US$90.0 million), a 19.2% decrease year-over-year, primarily due to declines in performance-based income from USD private equity products and recurring service fees from RMB private equity products[2]. - Income from operations for Q1 2024 was RMB121.5 million (US$16.8 million), a 56.4% decrease from the same period in 2023, driven by a 19.2% drop in net revenues and a 55.6% increase in general and administrative expenses[5]. - Net income attributable to Noah shareholders for Q1 2024 was RMB131.5 million (US$18.2 million), a 46.2% decrease year-over-year, mainly due to the significant decline in income from operations[7]. - Non-GAAP net income attributable to Noah shareholders for Q1 2024 was RMB161.2 million (US$22.3 million), a 32.7% decrease from the same period in 2023[8]. - Net income for Q1 2024 was RMB131.9 million (US$18.3 million), a 45.8% decrease from the same period in 2023, with a net margin of 20.3% compared to 30.3% in Q1 2023[35]. - Comprehensive income attributable to Noah shareholders decreased by 18.3% from RMB 227,427,000 to RMB 185,755,000[57]. - The company reported a diluted earnings per ADS of RMB 1.88 for the three months ended March 31, 2024, down 46.4% from RMB 3.51 for the same period in 2023[68]. Client Metrics - Total number of registered clients as of March 31, 2024, was 457,705, reflecting a 3.9% increase from the previous year, with overseas registered clients increasing by 17.1%[9]. - The number of registered clients reached 457,705 as of March 31, 2024, reflecting the company's growing client base[47]. - The number of active clients decreased by 7.5% from 11,236 to 10,391 during the same period[59]. Revenue Sources - Net revenues from mainland China in Q1 2024 were RMB342.8 million (US$47.5 million), a 28.8% decrease year-over-year, primarily due to declines in recurring service fees[3]. - Net revenues from one-time commissions increased by 7.4% year-over-year to RMB186.4 million (US$25.8 million), driven by a 4.6% rise in insurance product distribution revenues[26]. - Revenues from the Wealth Management Business decreased from RMB 588,653 thousand to RMB 464,210 thousand, a decline of 21.2%[63]. - Net revenues for the three months ended March 31, 2024, were RMB 649,535 thousand, compared to RMB 803,473 thousand for the same period in 2023, reflecting a decrease of 19.1%[61]. - The aggregate value of investment products distributed in Q1 2024 was RMB18.9 billion (US$2.6 billion), a 12.4% increase from Q1 2023, largely due to a 26.4% rise in mutual fund product distribution[10]. - Revenue from mutual fund products increased by 26.4% from RMB 9,975 million to RMB 12,610 million[59]. Operational Changes - The company streamlined its coverage network in mainland China to 18 cities as of March 31, 2024, down from 68 cities a year earlier[15]. - The number of relationship managers decreased by 16.4% year-over-year to 1,109 as of March 31, 2024, indicating a strategic focus on central hub cities[16]. - Total operating costs and expenses for the three months ended March 31, 2024, were RMB 528,049 thousand, compared to RMB 524,590 thousand for the same period in 2023, showing a slight increase of 0.9%[63]. - Operating costs and expenses for Q1 2024 were RMB528.0 million (US$73.1 million), a 0.7% increase from Q1 2023[31]. - The operating margin for Q1 2024 was 18.7%, down from 34.7% in the same period last year[33]. Asset Management - Total assets under management as of March 31, 2024, were RMB153.3 billion (US$21.2 billion), remaining stable compared to RMB154.6 billion as of December 31, 2023[18]. - The company managed assets totaling RMB153.3 billion (US$21.2 billion) through Gopher Asset Management as of March 31, 2024[47]. Foreign Currency and Interest Income - The company reported a foreign currency translation adjustment of RMB 53,400,000 in Q1 2024, compared to a loss of RMB 16,834,000 in Q1 2023[57]. - Interest income increased by 34.3% from RMB 34,388,000 to RMB 46,185,000[55].
NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2024

Prnewswire· 2024-08-28 20:45
SHANGHAI, Aug. 28, 2024 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for Mandarin-speaking high-net-worth investors, today announced its unaudited financial results for the second quarter of 2024.SECOND QUARTER 2024 FINANCIAL HIGHLIGHTS ...