SHANGHAI, Nov. 26, 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 third quarter of 2024.
THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS
Net Revenues by segment is as follows:
(RMB millions,
except percentages)
Q3 2023
Q3 2024
YoY Change
Wealth management
548.8
465.0
(15.3 %)
Asset management
191.4
208.9
9.2 %
Other businesses
9.8
9.8
(0.7 %)
Total net revenues
750.0
683.7
(8.8 %)
Net Revenues by geography is as follows:
(RMB millions,
except percentages)
Q3 2023
Q3 2024
YoY Change
Mainland China
457.7
306.8
(33.0 %)
Overseas
292.3
376.9
28.9 %
Total net revenues
750.0
683.7
(8.8 %)
Income from operations by segment is as follows:
(RMB millions,
except percentages)
Q3 2023
Q3 2024
YoY Change
Wealth management
154.5
138.9
(10.1 %)
Asset management
106.5
122.5
15.0 %
Other businesses
(12.1)
(20.6)
70.5 %
Total income from operations
248.9
240.8
(3.2 %)
THIRD QUARTER 2024 OPERATIONAL UPDATES
Wealth Management Business
Noah offers global investment products and provides value-added services to global Mandarin-speaking high-net-worth investors in its wealth management business. Noah primarily distributes private equity, private secondary, mutual funds and other products denominated in RMB, USD and other currencies.
The aggregate value of investment products distributed, categorized by product type, is as follows:
Three months ended September 30,
2023
2024
Product type
(RMB in billions, except percentages)
Mutual fund products
14.9
66.9 %
8.6
60.6 %
Private secondary products
5.7
25.4 %
3.6
25.0 %
Private equity products
0.7
3.1 %
1.1
7.5 %
Other products[3]
1.0
4.6 %
1.0
6.9 %
All products
22.3
100.0 %
14.3
100.0 %
The aggregate value of investment products distributed, categorized by geography, is as follows：
Type of products in mainland China
Three months ended September 30,
2023
2024
(RMB in billions, except percentages)
Mutual fund products
12.9
84.0 %
5.2
80.2 %
Private secondary products
1.8
11.4 %
0.8
12.3 %
Private equity products
–
0.3 %
–
0.0 %
Other products
0.7
4.3 %
0.5
7.5 %
All products in mainland China
15.4
100.0 %
6.5
100.0 %
Type of overseas products
Three months ended September 30,
2023
2024
(RMB in billions, except percentages)
Mutual fund products
2.0
28.1 %
3.4
44.6 %
Private secondary products
3.9
56.2 %
2.8
35.7 %
Private equity products
0.7
10.8 %
1.1
13.7 %
Other products
0.3
4.9 %
0.5
6.0 %
All Overseas products
6.9
100.0 %
7.8
100.0 %
Asset Management Business
Noah’s asset management business is conducted through Gopher Asset Management Co., Ltd. (“Gopher Asset Management”), a leading multi-asset manager in China, and Olive Asset Management Co., Ltd. (“Olive Asset Management”), the Company’s recently launched overseas asset management brand focused on providing global investment solutions with offices in Hong Kong and the United States. Gopher Asset Management and Olive Asset Management develop and manage assets ranging from private equity, real estate, public securities to multi-strategy investments denominated in RMB, USD and other currencies.
Total assets under management, categorized by investment type, are as follows:
Investment type
As of
June 30,
2024
Growth
Allocation/
Redemption
As of
September 30,
2024
(RMB billions, except percentages)
Private equity
133.0
86.4 %
0.5
3.4 [4]
130.1
86.7 %
Public securities[5]
10.4
6.7 %
2.3
2.8
9.9
6.6 %
Real estate
5.8
3.8 %
–
0.3
5.5
3.7 %
Multi-strategies
4.2
2.7 %
–
0.1
4.1
2.7 %
Others
0.6
0.4 %
–
0.1
0.5
0.3 %
All Investments
154.0
100.0 %
2.8
6.7
150.1
100.0 %
Total assets under management, categorized by geography, are as follows:
Mainland China
Investment type
As of
June 30,
2024
Growth
Allocation/
Redemption
As of
September 30,
2024
(RMB billions, except percentages)
Private equity
103.4
90.1 %
–
3.3
100.1
90.5 %
Public securities
6.0
5.2 %
0.5
1.0
5.5
5.0 %
Real estate
2.4
2.1 %
–
0.2
2.2
2.0 %
Multi-strategies
2.5
2.1 %
–
0.2
2.3
2.0 %
Others
0.6
0.5 %
–
0.1
0.5
0.5 %
All Investments
114.9
100.0 %
0.5
4.8
110.6
100.0 %
Overseas
Investment type
As of
June 30,
2024
Growth
Allocation/
Redemption
As of
September 30,
2024
(RMB billions, except percentages)
Private equity
29.6
75.5 %
0.5
0.1
30.0
75.9 %
Public securities
4.4
11.2 %
1.8
1.8
4.4
11.1 %
Real estate
3.4
8.7 %
–
0.1
3.3
8.4 %
Multi-strategies
1.7
4.6 %
–
(0.1)
1.8
4.6 %
All Investments
39.1
100.0 %
2.3
1.9
39.5
100.0 %
[1] Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation 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 clients who purchase investment products distributed or receive services provided by the Company during that given period.
[3] “Other products” refers to other investment products, which includes insurance products, multi-strategies products and others.
[4] The asset allocation/redemption of overseas investment products includes the fluctuation result of foreign currencies exchange rate.
[5] The asset allocation/redemption of public securities also includes market appreciation or depreciation.
Other Businesses
Noah’s other businesses mainly include providing clients with additional comprehensive services and investment products. Operating results for other businesses also include headquarter rental income, depreciation and amortization, as well as operating expenses.
Ms. Jingbo Wang, co-founder and chairwoman of Noah, commented, “I’m pleased to report a significant sequential rebound in net revenues, operating margin, and net income as the pace of our overseas expansion gains momentum and client demand for global asset allocation strengthens. Net revenues from overseas grew by 28.9% year-over-year, bolstered by ongoing investments to expand our global footprint. Our team of relationship managers directly supporting this expansion grew to 146 professionals, an increase of 89.6% year-over-year and 29.2% sequentially. We also opened our Japan office during the quarter to attract local Mandarin-speaking clients and are actively evaluating opportunities in other key potential markets such as Canada, Australia, Southeast Asia, and Europe, to capitalize on this momentum. While sluggish domestic markets continue to pose challenges, we are encouraged by initial signs of a recovery and improving client sentiment, driven by recent policies aimed at supporting the broader economy. We remain confident in the substantial potential for wealth management services tailored to global Mandarin-speaking high-net-worth investors, many of whom are currently underserved by local financial institutions. This presents us with significant opportunities to acquire new clients through our competitive global investment solutions and renowned service standards.”
THIRD QUARTER 2024 FINANCIAL RESULTS
Net Revenues
Net revenues for the third quarter of 2024 were RMB683.7 million (US$97.4 million), an 8.8% decrease from the corresponding period in 2023.
Operating Costs and Expenses
Operating costs and expenses for the third quarter of 2024 were RMB442.9 million (US$63.1 million), an 11.6% decrease from the corresponding period in 2023. Operating costs and expenses primarily consisted of (i) compensation and benefits of RMB310.0 million (US$44.2 million); (ii) selling expenses of RMB65.9 million (US$9.4 million); (iii) general and administrative expenses of RMB72.3 million (US$10.3 million); (iv) provision for of credit losses of RMB5.4 million (US$0.8 million); and (v) other operating expenses of RMB12.9 million (US$1.8 million).
