NOAH HOLDINGS LIMITED ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER 2022 AND AUDITED FINANCIAL RESULTS FOR FULL YEAR 2022.

SHANGHAI: Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH and HKEX: 6686), 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 fourth quarter of 2022 and the audited financial results for the full year ended December 31, 2022.

FOURTH QUARTER 2022 FINANCIAL HIGHLIGHTS

Net revenues for the fourth quarter of 2022 were RMB882.1 million (US$127.9 million), a 30.0% decrease from the corresponding period in 2021, mainly due to 1) decreases in one-time commissions, as less insurance products distributed compared with last year and 2) less performance based income generated from public securities products and offshore private equity products amid market volatilities. Net revenues increased by 28.9% compared with the third quarter of 2022, mainly due to an increase in distribution of insurance products and performance-based income.

(RMB millions,

except percentages)

Q4 2021

Q4 2022

YoY Change

Wealth management

969.3

646.9

(33.3 %)

Asset management

273.8

223.2

(18.5 %)

Other businesses

17.0

12.0

(29.2 %)

Total net revenues

1,260.1

882.1

(30.0 %)

Income from operations for the fourth quarter of 2022 was RMB219.7 million (US$31.9 million), a 66.1% increase from the corresponding period in 2021, as we recorded RMB85.6 million credit loss for our other business in the fourth quarter of 2021; income from operations decreased by 5.2% compared with the third quarter of 2022, primarily due to an increase in selling expenses and provision for credit losses.

(RMB millions,

except percentages)

Q4 2021

Q4 2022

YoY Change

Wealth management

183.6

179.1

(2.5 %)

Asset management

80.8

93.5

15.8 %

Other businesses

(132.1)

(52.9)

(60.0 %)

Total income from operations

132.3

219.7

66.1 %

Net income attributable to Noah shareholders for the fourth quarter of 2022 was RMB139.9 million (US$20.3 million), a 50.3% decrease from the corresponding period in 2021, due to a 30.0% decrease in net revenues and a 23.3% decrease from the third quarter of 2022, due to a provision of contingent litigation expenses related to the first-instance ruling disclosed in December 12, 2022.

Non-GAAP[1] net income attributable to Noah shareholders for the fourth quarter of 2022 was RMB149.2 million (US$21.6 million), a 48.5% decrease from the corresponding period in 2021, and a 21.9% decrease from the third quarter of 2022.

FULL YEAR 2022 FINANCIAL HIGHLIGHTS

Net revenues in the full year 2022 was RMB3,100.4 million (US$449.5 million), a 27.8% decrease from the full year 2021, mainly due to decreases in one-time commissions and performance-based income.

(RMB millions,

except percentages)

FY 2021

FY 2022

YoY Change

Wealth management

3,194.9

2,200.0

(31.1 %)

Asset management

1,041.5

834.5

(19.9 %)

Other businesses

56.7

65.9

16.2 %

Total net revenues

4,293.1

3,100.4

(27.8 %)

Income from operations in the full year 2022 was RMB1,088.4 million (US$157.8 million), a 9.2% decrease from the full year 2021.

(RMB millions,

except percentages)

FY 2021

FY 2022

YoY Change

Wealth management

921.5

741.4

(19.5 %)

Asset management

485.2

447.8

(7.7 %)

Other businesses

(207.8)

(100.8)

(51.5 %)

Total income from operations

1,198.9

1,088.4

(9.2 %)

Net income attributable to Noah shareholders in the full year 2022 was RMB976.6 million (US$141.6 million), a 25.7% decrease compared with full year 2021, due to decreases in net revenue and income from equity in affiliates amid market volatilities.

Non-GAAP net income attributable to Noah shareholders in the full year 2022 was RMB1,008.6 million (US$146.2 million), a 26.5% decrease from the full year 2021.

FOURTH QUARTER AND FULL YEAR 2022 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, private secondary, mutual funds and other products denominated in RMB and other currencies.

Total number of registered clients as of December 31, 2022 was 437,288, a 6.1% increase from December 31, 2021 and a 0.9% increase compared with September 30, 2022.

Total number of active clients[2] who transacted with us during the fourth quarter of 2022 was 12,904, a 26.1% decrease from the fourth quarter of 2021, and a 43.0% decrease from the third quarter of 2022. Total number of active clients who transacted with us during the full year 2022 was 35,877, a 16.1% decrease from the full year 2021.

Aggregate value of investment products distributed during the fourth quarter of 2022 was RMB18.0 billion (US$2.6 billion), a 14.5% decrease from the corresponding period in 2021, mainly due to a decrease in the distribution of private secondary products due to the volatile secondary market.

Product type

Three months ended December 31,

2021

2022

(RMB in billions, except percentages)

Mutual fund products

10.2

48.5 %

12.2

67.7 %

Private secondary products

6.7

31.6 %

3.4

18.7 %

Private equity products

3.0

14.5 %

1.4

8.0 %

Other products[3]

1.1

5.4 %

1.0

5.6 %

All products

21.0

100.0 %

18.0

100.0 %

Aggregate value of investment products distributed during the full year 2022 was RMB70.3 billion (US$10.2 billion), a 27.7% decrease from the full year 2021, mainly due to a decrease in the distribution of private secondary products.

Product type

Twelve months ended December 31,

2021

2022

(RMB in billions, except percentages)

Mutual fund products

37.1

38.2 %

43.1

61.4 %

Private secondary products

37.8

38.9 %

13.1

18.6 %

Private equity products

18.1

18.6 %

11.1

15.7 %

Other products

4.2

4.3 %

3.0

4.3 %

All products

97.2

100.0 %

70.3

100.0 %

Coverage network in mainland China included 75 cities as of December 31, 2022, compared with 76 cities as of September 30, 2022, and 84 cities as of December 31, 2021.

Number of relationship managers was 1,276 as of December 31, 2022, a 1.5% increase from September 30, 2022, and a 3.0% decrease from December 31, 2021.

[1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, non-cash settlement expense 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 investors who purchase investment products distributed or receive services...