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
one-stop 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.
Noah recorded total net revenue of RMB
616 million in the second quarter of 2024. The wealth
management business generated net revenues of RMB 416 million, while the asset management
business reported net revenues of RMB 192
million.
Strategically Overseas Expansion and Comprehensive investment
Solutions
Noah's overseas expansion is gaining momentum as client demand
for global asset allocation strengthens, with overseas net revenue
contribution increasing to 46.3% in the first half of 2024 and
asset under management increasing 14.1% year-over-year during the
quarter. Noah 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.
Income from operations was RMB 134
million, an increase of 10.3% sequentially, with an
operating margin of 21.8%, an increase from 18.7% in the first
quarter of 2024. These results directly reflect the early success
of Noah's strategic transformation as it implements effective cost
control measures, restructures its domestic business, and
accelerates its expansion overseas.
"The pace of our overseas expansion is gaining momentum," said
Zhe Yin, the Chief Executive Officer
of Noah Holdings. "Our team of overseas relationship managers
directly supporting this expansion grew 101.8% year-over-year and
24.2% sequentially during the quarter. While we are still in the
relatively early stages of our overseas expansion, these results
reflect the direction we are headed in going forward."
"Domestically, we are focused on stabilizing operations by
streamlining our branch network to reduce overhead costs and
adjusting our client service model to comply with evolving
regulatory requirements by separating relationship and business
development managers into different independent business units.
While these initiatives may temporarily impact business activity
over the next few quarters, they will ensure our ability to
effectively and compliantly serve clients with a comprehensive
portfolio of products in the long term. I am pleased with the
progress we have made this quarter in expanding overseas, and
confident in both our long-term growth potential and ability to
consistently generate returns for shareholders."
As of June 30, 2024, the number of
overseas registered clients increased by 6.7% sequentially 23.0%
year-over-year to 16,786, further reflecting the growing demand for
overseas asset allocation. Notably, the number of overseas diamond
and black card clients saw an even more substantial year-on-year
increase of 14.2%.
The Company also observed a shift in product preferences, a
trend that aligns with the forward-looking strategies outlined in
Noah's Chief Investment Office's (CIO) house view. Interest in
investment products increased substantially as a result of
expectations for a potential Federal Reserve rate cut during the
second half of the year. Known for its expertise and ability to
offer clients alternative investments on a global basis, Noah is
uniquely positioned to capitalize on this opportunity to grow its
USD AUA.
As of June 30, 2024, Noah's
overseas relationship manager team grew to 113, a 24.2% increase
sequentially. This expansion reflects Noah's commitment to building
a robust presence in key international financial hubs, and enhances
its ability to serve high-net-worth clients with comprehensive
global investment solutions.
Prioritizing Shareholder Interests and Delivering Sustained
Returns
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.
Noah announced in November 2023
that a new capital management and shareholder return policy (the
"Policy") had been adopted, pursuant to which up to 50% the
Company's non-GAAP net income attributable to shareholders of the
preceding financial year will be allocated to a Corporate Actions
Budget which will serve various purposes, including dividend
distribution and share repurchases. The share repurchase program
announced on August 29 2024 does not
form a part of the Corporate Actions Budget under the Policy. The
Corporate Actions Budget based on Noah's financial performance in
2024 is expected to be determined and announced alongside the
Company's earnings results for the fourth quarter and full year
ending on December 31, 2024.
Ms. Jingbo Wang, co-founder and
chairwoman of Noah, commented, "This share repurchase program,
along with the dividend payout we just completed, reflects our
unwavering commitment to prioritizing shareholder interests and
delivering sustained returns. While China's wealth management industry is
navigating a challenging period and undergoing a transition, we
remain confident in Noah's unique advantages stemming from our deep
understanding of Mandarin-speaking high-net-worth individuals'
(HNWI) needs and our ability to deliver products and services to
this still-growing client base. We are one of a few independent
firms that maintains access, through years of investor education,
to a large group of qualified individual investors who continue to
seek professional services."
"As such, 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."
Strengthening Commitment to ESG Principles
In the first half of 2024, Noah published its 10th Annual
environmental, social, and governance (ESG) report, highlighting
its decade-long commitment to corporate responsibility and
sustainable practices. Additionally, Gopher Asset Management,
Noah's asset management arm, also joined the latest Nature
Responsible Management initiative, Spring, announced by Principles
for Responsible Investment (PRI) in 2024, reinforcing its role in
driving responsible investment practices in order to halt and
reverse biodiversity loss by 2030.
By aligning with the PRI, Noah reaffirms its commitment to
integrating ESG factors into its investment processes, fostering
sustainable and responsible investment practices that benefit all
stakeholders.
Noah continues to adapt and evolve amidst a challenging market
environment. The Company's strategic initiatives, focused on global
expansion, technological innovation, and sustainable practices, are
beginning to yield tangible results, laying a strong foundation for
continued success in the years to come.
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SOURCE Noah Holdings Limited
