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Noah Holdings Limited Announces 2010 Fourth Quarter And Fiscal Year 2010 Financial Results

Noah Holdings Limited (“Noah” or the “Company”) (NYSE: NOAH), the leading independent service provider focusing on distributing wealth management products to the high net worth population in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2010.

FOURTH QUARTER 2010 FINANCIAL HIGHLIGHTS

  • Net revenues were US$14.0 million, representing an increase of 157.1% from US$5.4 million in the fourth quarter of 2009.
  • Income from operations was US$6.1 million, representing an increase of 184.9% from US$2.1 million in the fourth quarter of 2009. Operating margin was 43.4%, as compared to 39.2% in the fourth quarter of 2009.
  • Net income attributable to Noah shareholders was US$4.2 million, representing an increase of 88.9% from US$2.2 million in the fourth quarter of 2009. Non-GAAP 1 net income attributable to Noah shareholders was US$4.7 million, representing an increase of 110.6% from US$2.2 million in the fourth quarter of 2009. Net margin was 30.3%, as compared to 41.3% in the fourth quarter of 2009. Non-GAAP net margin was 33.3%, as compared to 40.7% in the fourth quarter of 2009.
  • Net income per basic and diluted ADS were US$0.08, as compared to US$0.06 and US$0.04, respectively, in the fourth quarter of 2009. Non-GAAP net income per diluted ADS was US$0.09, as compared to US$0.04 in the fourth quarter of 2009.

FISCAL YEAR 2010 FINANCIAL HIGHLIGHTS

  • Net revenues were US$37.9 million, representing an increase of 160.0% from US$14.6 million in the previous year.
  • Income from operations was US$15.7 million, representing an increase of 235.0% from US$4.7 million in the previous year. Operating margin was 41.4%, as compared to 32.1% in the full year 2009.
  • Net income attributable to Noah shareholders was US$11.5 million, representing an increase of 216.0% from US$3.6 million in the full year 2009. Non-GAAP net income attributable to Noah shareholders was US$13.4 million, representing an increase of 149.9% from US$5.4 million in the full year 2009. Net margin was 30.5%, as compared to 25.1% in the full year 2009. Non-GAAP net margin was 35.5%, as compared to 36.9% in the full year 2009.
  • Net income per basic and diluted ADS were US$0.26 and US$0.23, respectively, as compared to US$0.10 and US$0.07, respectively, in the full year 2009. Non-GAAP net income per diluted ADS was US$0.28, as compared to US$0.12 in the full year 2009.

FOURTH QUARTER 2010 and FISCAL YEAR 2010 OPERATIONAL HIGHLIGHTS

  • As of December 31, 2010, the Company’s total number of registered clients grew 69.0% year-over-year to 16,296, including 15,857 registered individual clients, 399 registered enterprise clients and 40 wholesale clients that have entered into cooperation agreements with the Company.
  • The Company had 621 active clients 2 during the fourth quarter of 2010, representing a 22.7% increase from 506 during the fourth quarter of 2009.
  • The aggregate value of wealth management products distributed by the Company during the fourth quarter of 2010 was RMB4.4 billion (approximately US$661.8 million) 3, representing a 79.0% increase from the fourth quarter of 2009. Of this aggregate value, fixed income products accounted for 45.9%, private equity fund products accounted for 53.0%, and securities investment funds and investment-linked insurance products accounted for 1.1%.
  • The average transaction value per client 4 in the fourth quarter of 2010 increased 45.8% to RMB7.1 million (approximately US$1.1 million), as compared to RMB4.9 million (approximately US$0.7 million) for the fourth quarter of 2009.
  • As of December 31, 2010, Noah’s coverage network included 39 branches, as compared to 16 branches as of December 31, 2009. The number of relationship managers increased to 341 as of December 31, 2010, as compared to 192 as of December 31, 2009.
  • The Company had 1,631 active clients during the full year 2010, representing a 32.1% increase from 1,235 during the full year 2009.
  • The aggregate value of wealth management products distributed by the Company during the full year 2010 was RMB14.4 billion (approximately US$2.1 billion), representing a 158.7% increase from the full year 2009. Of this aggregate value, fixed income products accounted for 41.0%, private equity fund products accounted for 57.3%, and securities investment funds and investment-linked insurance products accounted for 1.7%.
  • The average transaction value per client for the full year 2010 was RMB8.8 million (approximately US$1.3 million), representing a 95.9% increase from RMB4.5 million (approximately US$0.7 million) for the full year 2009.

Ms. Jingbo Wang, Co-founder, Chairwoman of the board of directors and Chief Executive Officer, commented, “We are pleased to announce strong results for the fourth quarter and for fiscal year 2010. The results reflect continued strong outlook for our industry. We believe there would be a secular growth in China’s high net worth population as a result of China’s economic expansion. And we will continue to focus on value creation for our clients – the high net worth population of China.”

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