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Noah Holdings Limited Announces Financial Results For The Second Quarter Of 2011

Stocks in this article: NOAH

1 Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures as adjusted by excluding the effects of all forms of share-based compensation and gain (loss) on change in fair value of derivative liabilities.

2 “Active clients” refers to those registered clients who purchased wealth management products distributed by Noah during any given period.

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

4 “Average transaction value per client” refers to the average value of wealth management products distributed by Noah that are purchased by active clients during a given period.

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited
Condensed Consolidated Balance Sheets
(In U.S. dollars except for share data)
(unaudited)
 
          As of
March 31,2011       June 30,2011
$ $
Assets
Current assets:
Cash and cash equivalents 125,518,608 128,124,844
Restricted cash 76,356 77,357
Fixed-term deposits 4,734,053 4,796,163
Short-term investments 4,963,120 10,123,076
Accounts receivable, net of allowance for doubtful accounts of nil at March 31, 2011 and June 30, 2011 10,160,640 12,366,703
Deferred tax assets 1,271,451 1,263,257
Amounts due from related parties 180,760 247,122
Other current assets 1,866,738 2,747,964
Total current assets 148,771,726 159,746,486
 
Long-term investments 4,497,350 1,373,288
Investment in affiliates 1,022,723 1,903,328
Property and equipment, net 1,883,090 2,214,145
Non-current deferred tax assets 300,208 466,185
Other non-current assets 833,465 961,717
Total Assets 157,308,562 166,665,149
 
Liabilities and Equity
Current liabilities:
Accrued payroll and welfare expenses 3,432,329 7,740,356
Income tax payable 7,772,233 3,132,627
Deferred tax liabilities 32,549 32,977
Other current liabilities 5,503,075 4,530,061
Total current liabilities 16,740,186 15,436,021
 
Uncertain tax position liabilities 1,415,767 1,474,618
Other non-current liabilities 899,481 1,450,044
Total Liabilities 19,055,434 18,360,683
 
Equity 138,253,128 148,304,466
Total Liabilities and Equity 157,308,562 166,665,149
 
 

Noah Holdings Limited

Condensed Consolidated Income Statements
(In U.S. dollars, except for share data and percentages)
(unaudited)
    Three months ended
June 30,     June 30,     Change
2010 2011
Revenues: $ $
Third-party revenues 6,941,253 21,709,836 212.8%
Related party revenues 1,329,086 2,926,750 120.2%
Total revenues 8,270,339 24,636,586 197.9%
Less: business taxes and related surcharges (479,022) (1,335,257) 178.7%
Net revenues 7,791,317 23,301,329 199.1%
Operating cost and expenses:
Cost of revenues (1,357,085) (4,396,542) 224.0%
Selling expenses (1,618,900) (4,753,026) 193.6%
General and administrative expenses (2,542,291) (3,641,436) 43.2%
Other operating income 93,896 56,745 (39.6%)
Total operating cost and expenses (5,424,380) (12,734,259) 134.8%
Income from operations 2,366,937 10,567,070 346.4%
Other income (expenses):
Interest income 26,015 403,836 1452.3%
Investment income 51,602 275,654 434.2%
Other income (expense) (52) 914,117 -
Gain (loss) on change in fair value of derivative liabilities 236,000 - (100.0%)
Total other income (expenses) 313,565 1,593,607 408.2%
Income before taxes and loss from equity in affiliates 2,680,502 12,160,677 353.7%
Income tax expense (760,233) (3,217,851) 323.3%
Loss from equity in affiliates (7,316) (1,144) (84.4%)
Net income attributable to Noah Shareholders 1,912,953 8,941,682 367.4%
Deemed dividend on Series A convertible redeemable preferred shares (54,473) - (100.0%)
Net income attributable to ordinary shareholders 1,858,480 8,941,682 381.1%
 
Income per ADS, basic 0.05 0.16 220.0%
Income per ADS, diluted 0.04 0.16 300.0%
 

Margin analysis:

 
Operating margin 30.4% 45.3%
Net margin 24.6% 38.4%
Weighted average ADS equivalent: [1]
Basic 26,955,495 55,747,547
Diluted 46,064,057 57,107,622
ADS equivalent outstanding at end of period 26,955,495 55,805,166
    [1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two ADSs
 
 
Noah Holdings Limited
Supplemental Information
(unaudited)
           
As of Change
June 30, June 30,
2010 2011  
 
Number of registered clients 12,353 22,276 80.3%
Number of relationship managers 285 449 57.5%
Number of branch offices 25 45 80.0%
 
 
Three months ended Change
June 30, June 30,
2010 2011  
(in millions of RMB, except percentages)
Number of active clients 343 1,173 242.0%
Transaction value:
Fixed income products 1,197 2,679 123.8%
Private equity fund products 2,566 4,640 80.8%
Securities investment funds and investment-linked insurance products 1 568 567
Total transaction value 3,764 7,887 109.5%
Average transaction value per client 10.97 6.72 (38.7%)
 
 
Noah Holdings Limited
Reconciliation of GAAP to Non-GAAP Results
(In U.S. dollars, except for share data and percentages)
(unaudited)
       
Three months ended
June 30, June 30,
2010 2011
$ $
Net income attributable to Noah Shareholders 1,912,953 8,941,682
Adjustment for share-based compensation related to:
Share options 146,542 358,032
Restricted shares 1,153,059 35,407
Adjustment for loss (gain) on change in fair value of derivative liabilities (236,000) -
Adjusted net income attributable to Noah Shareholders (non-GAAP)* 2,976,554 9,335,121
 
Net income per ADS, diluted 0.04 0.16
Adjustment for share-based compensation 0.03 -
Adjustment for loss (gain) on change in fair value of derivative liabilities (0.01) -
Adjusted net income per ADS, diluted (non-GAAP)* 0.06 0.16
 
Net margin 24.6% 38.4%
Adjusted net margin (non-GAAP)* 38.2% 40.1%
*The non-GAAP adjustments do not take into consideration the impact of taxes on such adjustments.




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