Noah Fortune will lose 745 million yuan in 2020

Noah Wealth (NOAH.NYSE) released an unaudited financial report stating that in 2020, net income was 3.306 billion yuan, down 2.5% year-on-year; the net loss attributable to shareholders for the whole year was 745 million yuan, and the profit in 2019 was 829 million yuan.

Noah Fortune will lose 745 million yuan in 2020

Source: Noah Wealth Announcement

The financial report shows that in 2020, Noah Wealth achieved a net income of 3.306 billion yuan, a decrease of 2.5% year-on-year, mainly due to the decrease in other service expenses, which was partially offset by the increase in performance income.

Among them, in the wealth management business sector, Noah’s net one-time commission income in 2020 was 762 million yuan, a year-on-year decrease of 17.5%, mainly due to the decrease in insurance products sold on agency due to the epidemic; recurring service fee income was 1.277 billion yuan , A year-on-year increase of 11.1%, mainly due to the cumulative impact of previously allocated recurring service fees on financial products.

In addition, Noah’s performance-based net income was 204 million yuan, an increase of 775.4% over 2019, mainly due to the increase in performance income from public securities products and private equity fund products; other service fee net income was 123 million yuan, a year-on-year decrease of 44.7 %, mainly due to the decrease in value-added services provided to high-net-worth customers during the epidemic.

In terms of asset management business, Noah Wealth has developed its business through Gopher Asset Management. Data show that as of the end of 2020, Noah’s total assets under management were 152.8 billion yuan, a year-on-year decrease of 10.2%. The annual recurring service fee was 642 million yuan, a year-on-year decrease of 6.4%. The decrease was mainly due to the decrease in assets under credit product management; performance-based net income was 183 million yuan, a year-on-year increase of 105.5%, mainly because private equity fund products were based on Performance revenue increases.

It is worth mentioning that Noah Wealth included part of the settlement expenses of the “Chengxing case” into the financial data of the fourth quarter.

The financial report shows that on August 25, 2020, Noah Wealth announced a settlement agreement with investors in the Chengxing case. The relevant one-time settlement fee amounted to 1.829 billion yuan.

Noah Wealth said that the decline in net income for the year was mainly due to the decrease in other service fees. The reason for the annual loss was 1.8 billion “Chengxing Case” settlement fees.

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