PR Newswire | May 10, 2021 04:30PM EDT

Quarter of 2021

05/10 15:30 CDT

Noah Holdings Limited Announces Unaudited Financial Results for the First Quarter of 2021 SHANGHAI, May 10, 2021

SHANGHAI, May 10, 2021 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors, today announced its unaudited financial results for the first quarter of 2021.

FIRST QUARTER 2021 FINANCIAL HIGHLIGHTS

* Net revenues for the first quarter of 2021 were RMB1,224.7 million (US$186.9 million), a 64.1% increase from the corresponding period in 2020, and a 28.5% increase from the fourth quarter of 2020.

(RMB millions, Q1 2020 Q1 2021 YoY Changeexcept percentages)

Wealth management 552.6 946.4 71.3%

Asset management 165.4 270.0 63.2%

Other businesses 28.1 8.3 (70.4%)

Total net revenues 746.1 1,224.7 64.1%

* Income from operations for the first quarter of 2021 was RMB502.4 million (US$76.7 million), a 96.0% increase from the corresponding period in 2020, and a 49.8% increase from the fourth quarter of 2020.

(RMB millions, Q1 2020 Q1 2021 YoY Changeexcept percentages)

Wealth management 166.2 418.1 151.6%

Asset management 93.5 114.5 22.5%

Other businesses (3.4) (30.2) 762.9%

Total income from operations 256.3 502.4 96.0%

* Net income attributable to Noah shareholders for the first quarter of 2021 was RMB454.1 million (US$69.3 million), an 86.9% increase from the corresponding period in 2020. * Non-GAAP[1] net income attributable to Noah shareholders for the first quarter of 2021 was RMB461.9 million (US$70.5 million), a 79.7% increase from the corresponding period in 2020, and a 76.0% increase from the fourth quarter of 2020.

FIRST QUARTER 2021 OPERATIONAL UPDATES

Wealth Management Business

We offer investment products and provide value-added services to high net worth investors in China and overseas for our wealth management business. Noah primarily distributes private equity, public securities and other products denominated in RMB and other currencies.

* Total number of registered clients as of March 31, 2021 was 384,021, a 19.6% increase from March 31, 2020, and a 6.5% increase from December 31, 2020. * Total number of active clients[2], which excluded mutual fund-only clients during the first quarter of 2021 was 6,299, a 54.6% increase from the first quarter of 2020, and a 19.6% increase from the fourth quarter of 2020. Including mutual fund-only clients, the number of clients who transacted with us during the first quarter of 2021 was 27,846, a 65.4% increase from the first quarter of 2020, and a 42.8% increase from the fourth quarter of 2020. * Aggregate value of investment products distributed during the first quarter of 2021 was RMB27.1 billion (US$4.1 billion), including private equity products that was distributed directly by our asset management segment, representing a 16.8% increase from the first quarter of 2020, primarily due to a 62.5% growth of private equity products and a 23.4% growth of secondary market equity products. The aggregate value increased by 27.1% compared with the fourth quarter of 2020 due to the significant growth of public securities products offered by the Company.

Product type Three months ended March 31,

2020 2021

(RMB in billions, except percentages)

Public securities products 19.1 82.4% 21.5 79.4%

Private equity products^[3] 2.9 12.6% 4.8 17.6%

Credit products 0.2 0.8% - -

Other products 1.0 4.2% 0.8 3.0%

All products 23.2 100.0% 27.1 100.0%

* Coverage network in mainland China covered 82 cities as of March 31, 2021, compared with 78 cities as of March 31, 2020 and 80 cities as of December 31, 2020. * Number of relationship managers was 1,246 as of March 31, 2021, a 3.1% increase from March 31, 2020, and a 1.2% increase from December 31, 2020. The turnover rate of core "elite" relationship managers was 0.3%, compared with 5.1% as of December 31, 2020.

Asset Management Business

Our asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading multi-asset manager in China with overseas offices in Hong Kong, the United States and Canada. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities, credit to multi-strategy investments denominated in Renminbi and other currencies.

* Total assets under management as of March 31, 2021 were RMB154.1 billion (US$23.5 billion), a 0.8% increase from December 31, 2020 and a 4.7% decrease from March 31, 2020, primarily due to the voluntary redemptions of certain credit products.

As of Distribution/ As ofInvestment type December 31, Growth Redemption March 31, 2020 2021

(RMB billions, except percentages)

Private equity 117.7 77.1% 4.2 - 121.9 79.1%

Real estate 12.7 8.3% - 2.0 10.7 7.0%

Public securities^[4] 9.8 6.4% 1.4 0.7 10.5 6.8%

Credit^[5] 5.5 3.6% - 0.4 5.1 3.3%

Multi-strategies 7.1 4.6% 0.1 1.3 5.9 3.8%

All Investments 152.8 100.0% 5.7 4.4 154.1 100.0%

Other Businesses

Since the fourth quarter of 2020, our other businesses segment has been transitioning to "Noah Digital Intelligence", aiming to develop a "turnkey asset management platform" ("TAMP"), to create an additional distribution channel beyond our wealth management, as well as to provide more comprehensive services and investment products.

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "In the first quarter of 2021, I am proud to report that our active clients number, including mutual funds, grew 65.4% year-on-year to record a historical high of almost 28,000, which enabled our net revenues to reach RMB1.2 billion, the highest single quarter in our history, a 64.1% increase year-on-year, consists of the strong growth in all revenue streams including one-time commissions, recurring service fees and performance-based income. As a result, non-GAAP net income was RMB461.9 million, also a historical high. Out of the total transaction value of RMB27.1 billion, public securities accounted for RMB21.5 billion, another record high since our listing, showcasing our continued success since the transformation for standardized products and services. In addition, there was only 0.3% turnover rate of our elite relationship managers during the quarter, evidencing the stability of our sales force after the transformation. We will stay client-centric while continuing to invest in human capital development and IT infrastructure to improve our client experience, as well as stay focused on major economic regions in the country where high net worth clients are concentrated."

FIRST QUARTER 2021 FINANCIAL RESULTS

Net Revenues

Net revenues for the first quarter of 2021 were RMB1,224.7 million (US$186.9 million), a 64.1% increase from the corresponding period in 2020, primarily driven by increased one-time commissions and performance-based income, partially offset by the decrease in other service fees.

* Wealth Management Business

- Net revenues from one-time commissions for the first quarter of 2021 were RMB293.2 million (US$44.8 million), a 39.2% increase from the corresponding period in 2020, primarily due to a 23.4% increase in transaction value of secondary market equity investment products that we distributed.

- Net revenues from recurring service fees for the first quarter of 2021 were RMB313.7 million (US$47.9 million), an 8.5% increase from the corresponding period in 2020. The increase was primarily due to the cumulative effect of public securities investment products with recurring service fees previously distributed.

- Net revenues from performance-based income for the first quarter of 2021 were RMB325.6 million (US$49.7 million), compared with RMB15.1 million in the corresponding period of 2020, representing a 20.6 times increase. The increase was primarily due to more performance-based income realized from public securities.

- Net revenues from other service fees for the first quarter of 2021 were RMB13.9 million (US$2.1 million), compared with RMB37.6 million in the corresponding period in 2020, primarily due to less value-added services we offered to our high net worth clients.

* Asset Management Business

- Net revenues from one-time commissionsfor the first quarter of 2021 was RMB30.0 million (US$4.6 million), represents the one-time commissions earned from all private equity products that we distributed directly from our asset management segment since the fourth quarter of 2020 to comply with new regulation. We still distributed other investment products from our wealth management business segment.

- Net revenues from recurring service feesfor the first quarter of 2021 were RMB161.2 million (US$24.6 million), a 0.5% increase from the corresponding period in 2020.

- Net revenues from performance-based incomefor the first quarter of 2021 were RMB77.5 million (US$11.8 million), compared with RMB4.6 million in the corresponding period of 2020. The increase was primarily due to more performance-based income realized from private equity products.

* Other Businesses

- Net revenuesfor the first quarter of 2021 were RMB8.3 million (US$1.3 million), a 70.4% decrease from the corresponding period in 2020. The decrease was primarily due to continuous reducing volume of loan origination since the second half year of 2019.

Operating Costs and Expenses

Operatingcosts andexpenses for the first quarter of 2021 were RMB722.3 million (US$110.3 million), a 47.5% increase from the corresponding period in 2020. Operating costs and expenses primarily consisted of compensation and benefits of RMB582.1 million (US$88.9 million), selling expenses of RMB83.5 million (US$12.7 million), general and administrative expenses of RMB80.3 million (US$12.3 million), provision of credit losses of RMB3.4 million (US$0.5 million) and other operating expenses of RMB27.1 million (US$4.1 million).

* Operating costs and expenses for the wealth management business for the first quarter of 2021 were RMB528.3 million (US$80.6 million), a 36.7% increase from the corresponding period in 2020, primarily due to less compensation and benefits as well as less expenses incurred in the first quarter of 2020 due to the COVID-19 pandemic, and partially offset by a decrease in other operating expense. * Operating costs and expenses for the asset management business for the first quarter of 2021 were RMB155.6 million (US$23.7 million), a 116.3% increase from the corresponding period in 2020, primarily due to less compensation and benefits as well as less expenses incurred in the first quarter of 2020 due to the COVID-19 pandemic. * Operating costs and expenses for other businesses for the first quarter of 2021 were RMB38.5 million (US$5.9 million), a 22.1% increase from the corresponding period in 2020, primarily due to less compensation and benefits incurred in the first quarter of 2020 due to the COVID-19 pandemic.

Operating Margin

Operating marginfor the first quarter of 2021 was 41.0%, compared with 34.3% for the corresponding period in 2020.

* Operating margin for the wealth management business for the first quarter of 2021 was 44.2%, compared with 30.1% for the corresponding period in 2020. * Operating margin for the asset management business for the first quarter of 2021 was 42.4%, compared with 56.5% for the corresponding period in 2020. * Loss from operation for the other businesses for the first quarter of 2021 was RMB30.2 million (US$4.6 million), compared with an operating loss of RMB3.5 million for the corresponding period in 2020, due to less revenue generated in the first quarter of 2021.

Investment Income

Investment income for the first quarter of 2021 was RMB34.4 million (US$5.2 million), compared with RMB17.6 million for the corresponding period in 2020. The increase was primarily related to the fluctuation of fair value of equity securities.

Income Tax Expenses

Income tax expensesfor the first quarter of 2021 were RMB129.8 million (US$19.8 million), a 90.2% increase from the corresponding period in 2020. The increase was primarily due to higher taxable income.

Net Income

* Net Income

- Net incomefor the first quarter of 2021 was RMB452.9 million (US$69.1 million), an 85.9% increase from the corresponding period in 2020.

- Net marginfor the first quarter of 2021 was 37.0%, up from 32.7% for the corresponding period in 2020.

- Net income attributable to Noah shareholdersfor the first quarter of 2021 was RMB454.1 million (US$69.3 million), an 86.9% increase from the corresponding period in 2020.

- Net margin attributable to Noah shareholdersfor the first quarter of 2021 was 37.1%, up from 32.6% for the corresponding period in 2020.

- Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2021 was RMB6.77(US$1.03) and RMB6.72(US$1.03), respectively, compared with RMB3.94 and RMB3.92 respectively, for the corresponding period in 2020.

* Non-GAAP Net Income Attributable to Noah Shareholders

- Non-GAAP net income attributable to Noah shareholdersfor the first quarter of 2021 was RMB461.9 million (US$70.5 million), a 79.7% increase from the corresponding period in 2020 and a 76.0% increase from the fourth quarter of 2020.

- Non-GAAP net margin attributable to Noah shareholdersfor the first quarter of 2021 was 37.7%, up from 34.5% for the corresponding period in 2020.

- Non-GAAP net income attributable to Noah shareholders per diluted ADSfor the first quarter of 2021 was RMB6.84(US$1.04), up from RMB4.15 for the corresponding period in 2020.

Balance Sheet and Cash Flow

As of March 31, 2021, the Company had RMB4,904.3 million (US$748.5 million) in cash and cash equivalents, compared with RMB5,005.2 million as of December 31, 2020 and RMB4,045.8 million as of March 31, 2020.

Net cash inflow from the Company's operating activities during the first quarter of 2021 was RMB495.9 million (US$75.7 million), primarily due to operating cash inflow generated by net income.

Net cash outflow from the Company's investing activities during the first quarter of 2021 was RMB68.9 million (US$10.5 million), primarily due to the net loans initiated to borrowers.

Net cash outflow from the Company's financing activities was RMB533.7 million (US$81.5 million) in the first quarter of 2021, primarily due to repurchasing ordinary shares as well as acquiring additional shares from non-controlling interest shareholder in one of our subsidiaries.

RECENT DEVELOPMENTS

On May 9, 2021, the Company, through certain of its subsidiaries, entered into definitive agreements ("Transaction Agreements") with certain subsidiaries and affiliates of Sunny World Group to purchase new office premises, with a gross floor area of approximately 72,000 square meters in Shanghai Hongqiao Central Business District for a total cash consideration of approximately RMB2.2 billion (US$340.0 million). The premises will primarily be used as our global headquarters to meet the demand arising from the continuing growth of the Company's businesses and branding image.

The Company plans to finance the transaction by cash from our balance sheet. The consideration will be made in installments according to the condition precedents set up by Transaction Agreements. The transaction is subject to the satisfaction of certain conditions in the Transaction Agreements.

Ms. Jingbo Wang, co-founder and CEO of Noah, commented," After fifteen years of operations, Noah is very glad to purchase this commercial property, consisting of four high-end, well-designed office buildings located at the center of the Hongqiao comprehensive transportation hub in Shanghai, one of the nation's busiest transportation hubs, to be our new global headquarters. I believe this space will also serve as an upgraded client interface for Noah and robust activity center connecting clients in Eastern China to us, enhancing their overall client experience and improving our corporate image."

^[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring settlement expenses and net of relevant tax impact, if any. See"Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

^[2] "Active clients" for a given period refers to registered high net worthclients who purchase investment products distributed or provided by Noah during that given period, excluding clients who transacted only on our onlinemutual fund platform.

^[3] Since the fourth quarter of 2020, we distributed all private equity products directly from our asset management business, but for consistency purposes, we included those transaction values herein.

^[4] The asset distribution/redemption of public securities also includes market appreciation or depreciation.

^[5] Since this quarter, we reclassified all remaining mezzanine financing products linked to corporate merger and acquisitions and buy outs from creditto private equity in the amount of RMB4.7 billion, considering its nature is more akin to equity than credit. We have also revised the comparative period presentation to conform to current period presentation.

2021 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2021 will be in the range of RMB1.2 billion to RMB1.3 billion. This estimate reflects management's current business outlook and is subject to change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company's first quarter 2021 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:



Conference call details

Date/Time Monday, May 10, 2021 at 8:00 p.m., U.S. Eastern Time

Tuesday, May 11, 2021 at 8:00 a.m., Hong Kong Time

Dial in details

- United States Toll Free 1-888-317-6003

- Mainland China Toll Free 4001-206-115

- Hong Kong Toll Free 800-963-976

- International 1-412-317-6061

Conference Title Noah Holdings 1Q21 Earnings Conference Call

Participant Elite Entry Number 0955316

Participants will need to dial in 10-15 minutes early and use the above Elite Entry Number in order to join the conference. A telephone replay will be available starting one hour after the end of the conference call until May 17, 2021 at +1-877-344-7529 (US Toll Free) or 1-412-317-0088 (International Toll). The replay access code is 10154694.

A live and archived webcast of the conference call will be available at Noah's investor relations website under the News & Events section at ir.noahgroup.com.

DISCUSSION OF NON-GAAP MEASURES

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company's earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation, non-recurring settlement expenses and net of tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

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

When evaluating the Company's operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company's management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.

ABOUT NOAH HOLDINGS LIMITED

Noah Holdings Limited (NYSE: NOAH) is a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors. In the first quarter of 2021, Noah distributed RMB27.1 billion (US$4.1 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB154.1 billion (US$23.5 billion) as of March 31, 2021.

Noah's wealth management business primarily distributes private equity, public securities and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,246 relationship managers across 82 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, United States, Canada and Singapore. The Company's wealth management business had 384,021 registered clients as of March 31, 2021. As a leading alternative multi-asset manager in China, Gopher Asset Management manages private equity, real estate, public securities, credit and multi-strategy investments denominated in Renminbi and other currencies. The Company also provides lending and other services.

For more information, please visit Noah at ir.noahgroup.com.

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the first quarter of 2021 ended March 31, 2021 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.5518 to US$1.00, the effective noon buying rate for March 31, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the outlook for 2021 and quotations from management in this announcement, as well as Noah's strategic and operational plans, contain forward-looking statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)

As of

December 31, March 31, March 31,

2020 2021 2021

RMB'000 RMB'000 USD'000

Assets

Current assets:

Cash and cash equivalents 5,005,211 4,904,316 748,545

Restricted cash 9,993 9,995 1,526

Short-term investments 114,928 143,140 21,847

Accounts receivable, net 434,458 444,421 67,832

Loans receivable, net 418,947 407,595 62,211

Amounts due from related parties 520,178 715,396 109,191

Other current assets 199,447 203,938 31,127

Total current assets 6,703,162 6,828,801 1,042,279

Long-term investments, net 536,384 556,166 84,888

Investment in affiliates 1,264,685 1,268,909 193,673

Property and equipment, net 248,669 235,974 36,017

Operating lease right-of-use assets, net 274,154 268,395 40,965

Deferred tax assets 224,240 223,783 34,155

Other non-current assets 148,292 214,807 32,786

Total Assets 9,399,586 9,596,835 1,464,763

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses 705,622 844,021 128,823

Income tax payable 140,777 244,518 37,321

Deferred revenues 71,613 85,143 12,995

Other current liabilities 432,650 448,127 68,398

Contingent liabilities 530,433 532,612 81,292

Total current liabilities 1,881,095 2,154,421 328,829

Operating lease liabilities, non-current 194,384 180,308 27,520

Deferred tax liabilities 45,881 46,139 7,042

Other non-current liabilities 855 844 129

Total Liabilities 2,122,215 2,381,712 363,520

Equity 7,277,371 7,215,123 1,101,243

Total Liabilities and Equity 9,399,586 9,596,835 1,464,763

Noah Holdings Limited

Condensed Consolidated Income Statements

(In RMB'000, except for ADS data, per ADS data and percentages)

(unaudited)

Three months ended

March 31, March 31, March 31, Change

2020 2021 2021

Revenues: RMB'000 RMB'000 USD'000

Revenues from others:

One-time commissions 207,185 278,704 42,539 34.5%

Recurring service fees 148,457 220,513 33,657 48.5%

Performance-based income 14,618 276,524 42,206 1,791.7%

Other service fees 66,608 23,713 3,619 (64.4%)

Total revenues from others 436,868 799,454 122,021 83.0%

Revenues from funds Gopher manages:

One-time commissions 4,749 46,146 7,043 871.7%

Recurring service fees 303,450 256,697 39,180 (15.4%)

Performance-based income 5,175 128,556 19,621 2,384.2%

Total revenues from funds Gopher 313,374 431,399 65,844 37.7% manages

Total revenues 750,242 1,230,853 187,865 64.1%

Less: VAT related surcharges (4,125) (6,117) (934) 48.3%

Net revenues 746,117 1,224,736 186,931 64.1%

Operating costs and expenses:

Compensation and benefits

Relationship manager compensation (170,052) (31,575) 21.7% (206,872)

Others (194,787) (375,253) (57,275) 92.6%

Total compensation and benefits (364,839) (582,125) (88,850) 59.6%

Selling expenses (44,540) (83,455) (12,738) 87.4%

General and administrative expenses (63,685) (80,285) (12,254) 26.1%

Provision for credit losses (2,809) (3,407) (520) 21.3%

Other operating expenses (32,617) (27,088) (4,134) (17.0%)

Government subsidies 18,635 54,014 8,244 189.9%

Total operating costs and (489,855) (722,346) (110,252) 47.5% expenses

Income from operations 256,262 502,390 76,679 96.0%

Other income:

Interest income 22,170 22,927 3,499 3.4%

Investment income 17,566 34,361 5,245 95.6%

Other income (expense) 858 (486) (74) N.A.

Total other income 40,594 56,802 8,670 39.9%

Income before taxes and income 296,856 559,192 85,349 88.4% from equity in affiliates

Income tax expense (68,276) (129,846) (19,818) 90.2%

Income from equity in affiliates 15,076 23,513 3,589 56.0%

Net income 243,656 452,859 69,120 85.9%

Less: net income (loss) attributable 631 (1,234) (188) N.A. to non-controlling interests

Net income attributable to Noah 243,025 454,093 69,308 86.9% shareholders

Income per ADS, basic 3.94 6.77 1.03 71.8%

Income per ADS, diluted 3.92 6.72 1.03 71.4%



Margin analysis:

Operating margin 34.3% 41.0% 41.0%

Net margin 32.7% 37.0% 37.0%



Weighted average ADS equivalent^[1]:

Basic 61,619,852 67,091,780 67,091,780

Diluted 61,991,117 67,572,038 67,572,038

ADS equivalent outstanding at end of period 61,635,280 59,976,690 59,976,690



^[1] Assumes all outstanding ordinary shares are represented by ADSs. Eachordinary share represents twoADSs.

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

Three months ended

March 31, March 31, March 31, Change

2020 2021 2021

RMB'000 RMB'000 USD'000

Net income 243,656 452,859 69,120 85.9%

Other comprehensive income, net of tax:

Foreign currency translation adjustments 1,283 (77.5%) 37,319 8,409

Fair value fluctuation of available for sale Investment (after tax) - N.A. (4) -

Comprehensive income 280,971 461,268 70,403 64.2%

Less: Comprehensive income (loss) attributable to non-controlling 626 (1,201) (183) N.A. interests

Comprehensive income attributable to 280,345 462,469 70,586 65.0% Noah shareholders

Noah Holdings Limited

Supplemental Information

(unaudited)

As of

March 31, March 31, Change 2020 2021

Number of registered clients 321,148 384,021 19.6%

Number of relationship managers 1,209 1,246 3.1%

Number of cities under coverage in mainland 78 82 5.1% China

Three months ended

March 31, March 31, Change 2020 2021

(in millions of RMB, except number of active clients and percentages)

Number of active clients^[6] 4,075 6,299 54.6%

Number of active clients including mutual fund- 16,831 27,846 65.4%only clients

Transaction value:

Private equity products 2,931 4,763 62.5%

Public securities products 19,111 21,509 12.5%

Credit products 183 - N.A.

Other products 969 820 (15.4%)

Total transaction value 23,194 27,092 16.8%

^[6] "Active clients" for a given period refers to registered high net worthclients who purchase investment products distributed or provided by Noah duringthat given period, excluding clients who only transacted on our online mutualfund platform.

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended March 31, 2021

Wealth Asset Other Management Management Businesses Total Business Business

RMB'000 RMB'000 RMB'000 RMB'000

Revenues:

Revenues from others:

One-time commissions 278,463 241 - 278,704

Recurring service fees 219,319 1,194 - 220,513

Performance-based income 276,524 - - 276,524

Other service fees 14,017 1,390 8,306 23,713

Total revenues from others 788,323 2,825 8,306 799,454

Revenues from funds Gopher manages:

One-time commissions 16,270 29,876 - 46,146

Recurring service fees 95,971 160,726 - 256,697

Performance-based income 50,726 77,830 - 128,556

Total revenues from funds Gopher 162,967 268,432 - 431,399 manages

Total revenues 951,290 271,257 8,306 1,230,853

Less: VAT related surcharges (4,838) (1,229) (50) (6,117)

Net revenues 946,452 270,028 8,256 1,224,736

Operating costs and expenses:

Compensation and benefits

Relationship manager compensation (206,790) (82) - (206,872)

Other compensations (215,289) (138,854) (21,110) (375,253)

Total compensation and benefits (422,079) (138,936) (21,110) (582,125)

Selling expenses (66,827) (12,001) (4,627) (83,455)

General and administrative expenses (55,924) (18,094) (6,267) (80,285)

Provision for credit losses - - (3,407) (3,407)

Other operating expenses (22,083) (1,805) (3,200) (27,088)

Government subsidies 38,596 15,283 135 54,014

Total operating costs and expenses (528,317) (155,553) (38,476) (722,346)

Income (loss) from operations 418,135 114,475 (30,220) 502,390

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended March 31, 2020

Wealth Management Asset Management Other Businesses Total Business Business

RMB'000 RMB'000 RMB'000 RMB'000

Revenues:

Revenues from others:

One-time commissions 206,944 241 - 207,185

Recurring service fees 147,763 694 - 148,457

Performance-based income 14,618 - - 14,618

Other service fees 37,819 134 28,655 66,608

Total revenues from others 407,144 1,069 28,655 436,868

Revenues from funds Gopher manages:

One-time commissions 4,749 - - 4,749

Recurring service fees 142,860 160,590 - 303,450

Performance-based income 556 4,619 - 5,175

Total revenues from funds Gopher 148,165 165,209 - 313,374 manages

Total revenues 555,309 166,278 28,655 750,242

Less: VAT related surcharges (2,670) (868) (587) (4,125)

Net revenues 552,639 165,410 28,068 746,117

Operating costs and expenses:

Compensation and benefits

Relationship manager compensation (170,052) - - (170,052)

Other compensations (118,227) (61,313) (15,247) (194,787)

Total compensation and benefits (288,279) (61,313) (15,247) (364,839)

Selling expenses (36,555) (7,314) (671) (44,540)

General and administrative (47,582) (10,730) (5,373) (63,685) expenses

Provision for credit losses - - (2,809) (2,809)

Other operating expenses (23,602) (1,546) (7,469) (32,617)

Government subsidies 9,607 8,981 47 18,635

Total operating costs and expenses (386,411) (71,922) (31,522) (489,855)

Income (loss) from operations 166,228 93,488 (3,454) 256,262

Noah Holdings Limited

Supplement Revenue Information for Segment

(unaudited)

Three months ended March 31, 2021

Wealth Asset Management Management Other Businesses Total Business Business

RMB'000 RMB'000 RMB'000 RMB'000

Revenues:

Mainland China 697,471 187,621 8,306 893,398

Hong Kong 230,621 76,431 - 307,052

Others 23,198 7,205 - 30,403

Total revenues 951,290 271,257 8,306 1,230,853

Three months ended March 31, 2020

Wealth Asset Management Management Other Businesses Total Business Business

RMB'000 RMB'000 RMB'000 RMB'000

Revenues:

Mainland China 368,817 145,086 28,655 542,558

Hong Kong 140,765 16,567 - 157,332

Others 45,727 4,625 - 50,352

Total revenues 555,309 166,278 28,655 750,242

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In RMB, except for per ADS data and percentages)

(unaudited) ^[7]

Three months ended

March 31, March 31, Change

2020 2021

RMB'000 RMB'000

Net income attributable to Noah shareholders 243,025 454,093 86.9%

Adjustment for share-based compensation 18,291 10,144 (44.5%)

Less: Tax effect of adjustments 4,235 2,354 (44.4%)

Adjusted net income attributable to Noah shareholders 257,081 461,883 79.7% (non-GAAP)

32.6% 37.1%Net margin attributable to Noah shareholders

Non-GAAP net margin attributable to Noah shareholders 34.5% 37.7%

Net income attributable to Noah shareholders per ADS, diluted 3.92 6.72 71.4%

Non-GAAP net income attributable to Noah shareholders 4.15 6.84 64.8% per ADS, diluted

^[7] Noah's Non-GAAP financial measures reflect the respective most directlycomparable GAAP financialmeasures excluding the effects of all forms of share-based compensation and netof relevant tax impact, ifany.

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SOURCE Noah Holdings Limited