SHANGHAI, Aug. 29,
2024 /PRNewswire/ -- Noah Holdings Limited ("Noah" or
the "Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer
wealth management service provider offering comprehensive advisory
services on global investment and asset allocation primarily for
Mandarin-speaking high-net-worth investors, today announced its
unaudited financial results for the second quarter of 2024.
The Company recorded total net revenues of RMB 616 million (US$ 85
million) in the second quarter of 2024, with overseas
businesses contributing RMB 279
million (US$ 38 million).
Noah's operating profit reached RMB 134
million (US$ 18 million) in
the second quarter of this year, representing an operating profit
margin of 21.8%, an increase from 18.7% in the first quarter of
2024. The second quarter also marked a significant milestone in
Noah's strategic transformation, as the Company continues to pivot
towards international markets.
Financial Results Breakdown
In the second quarter of 2024, Noah achieved total net revenues
of RMB 616 million (US$85 million), driven by the strong performance
of its overseas business. The overseas segment generated
RMB 279 million (US$ 38 million), underscoring the Company's
successful global expansion. For the first half of 2024, Noah's
total revenues reached RMB 1.3
billion (US$ 174 million),
with the overseas segment contributing RMB
585 million (US$ 81
million).
Notably, the Company made significant strides in expanding its
international client base in the first half of 2024, with the
number of overseas registered clients increasing by 23.0%
year-over-year. The number of overseas Diamond and Black Card
clients also expanded by 14.2% year-over-year, demonstrating the
growing appeal of Noah's wealth management services among
high-net-worth individuals globally.
Global Strategy Drives Growth
In response to the evolving macroeconomic environment, Noah has
implemented its unique global asset allocation strategies that
align with market trends and client needs. The U.S. Consumer Price
Index (CPI) cooled to 2.9% in July
2024, the first time the inflation rate dipped below 3%
since March 2021. During the quarter,
Noah raised approximately $152
million for US private equity (PE) products, a significant
increase of 46.2% year-over-year. The increment reflects the
alignment of clients' interests with market expectations of a
potential Fed rate cut and reflects the accuracy of Noah's previous
CIO investment report forecasts, showcasing the Company's
integrated research and investment capabilities in supporting
client portfolio decisions that may contribute to the growth of the
Company's US$ AUA.
The strategic adjustments, aimed at realigning Noah's business
towards overseas markets, had a temporary impact on profitability.
Yet the Company's goals become clearer and compliance is further
strengthened. By continuing to expand its overseas private banking
team and enhancing its professional service capabilities in
Hong Kong, Singapore, Japan, and the
United States, Noah will strengthen its position among high
net worth overseas Chinese clients, which may contribute
significantly to future growth.
Share Repurchase Signals Undervaluation
As part of its commitment to enhancing shareholder returns, the
board of directors of the Company authorized a share repurchase
program under which the Company may repurchase up to US$50 million of its American depositary shares
or ordinary shares, effective immediately. The authorized term for
carrying out this share repurchase program is two years.
Mr Zhe Yin, CEO of Noah, said,
"This quarter marked a pivotal moment for Noah as we continue to
realign our strategy to drive growth in a dynamic global market.
Our overseas revenue contribution increase to 46.3% in the first
half of 2024 and asset under management increasing 14.1%
year-over-year during the quarter. We also raised US$ 338 million for overseas private equity,
private credit, and other primary market funds year-to-date, a
significant 40.2% year-over-year increase."
"In addition, our team of overseas relationship manager hits
over 110, a dramatic growth of 101.8% year-over-year and 24.2%
sequentially during the quarter. This achievement underscore our
commitment to providing innovative solutions that meet the evolving
needs of our clients worldwide. We believe that wealth management
is a long-term career. Our business is built on the premise that it
will bring long-term value to our clients, shareholders, and
management broad. "Yin said.
China's wealth management
industry is currently facing a challenging period and undergoing a
transition. This share repurchase program, along with the recently
completed dividend payout, reflects the unwavering commitment to
prioritizing shareholder interests and delivering sustained returns
from the Company. Furthermore, it demonstrates the Company's
confidence in its future growth.
Ms. Jingbo Wang, co-founder and
chairwoman of Noah, commented, " We believe that our stock is
deeply undervalued and does not reflect our growth prospects,
robust balance sheet and cash reserves, or the special bond we have
formed with the Mandarin-speaking HNWIs globally. We value both our
long-term and new shareholders and are committed to sharing our
success with them through more proactive capital allocation
policies moving forward. "
Looking ahead, the Company's ongoing focus on international
markets, coupled with its expertise in global allocation strategies
and a strong emphasis on compliance, positions Noah for sustainable
growth.
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SOURCE Noah Holdings Limited