Release Date: March 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Noah Holdings Ltd (NYSE:NOAH) made significant progress in restructuring its domestic sales team to comply with evolving regulatory requirements, creating independent and licensed business units.

• The company launched new internationally focused brands, such as Arc, Olive, and Glory Family Heritage, to expand its overseas presence.

• Despite a challenging year, Noah Holdings Ltd (NYSE:NOAH) remains confident in its business model's resilience and strong cash flow generation.

• The company has seen a 200% sequential increase in transaction value for private secondary products in the fourth quarter, demonstrating its ability to capitalize on market upturns.

• Noah Holdings Ltd (NYSE:NOAH) is expanding its team of overseas relationship managers, with a 55.1% increase in overseas RMs, and plans to continue this growth in underserved Mandarin-speaking communities.

Negative Points

• Full-year net revenues decreased by 21.1% year over year, primarily due to declines in domestic and overseas insurance product distribution.

• Non-GAAP net income fell by 46% to RMB 550 million, impacted by restructuring costs and an increased effective tax rate of 31.5%.

• The company faced a 27.5% year-over-year decline in net revenues from mainland China due to a subdued market environment.

• Noah Holdings Ltd (NYSE:NOAH) experienced a decline in the number of overseas relationship managers by 5% sequentially in the first quarter, falling short of its target.

• The company is facing fierce competition in the Hong Kong insurance market, impacting its overseas insurance product distribution.

Q & A Highlights

• Warning! GuruFocus has detected 4 Warning Signs with NOAH.

Q: Since the beginning of this year, what has been the demand for investment products among high-level clients? Which type of products have been more popular? What's our CRO's current investment strategy, and which types of products are being promoted? Will the decline in insurance product sales continue into 2025? Which products will be the main source of revenue growth in terms of one-time commissions? A: The demand for investment products among high-level clients has been rebounding, driven by improved market performance and increased client confidence. Popular products include public market securities, hedge funds, and semi-liquid primary market products like private credits and infrastructure. The CRO's strategy emphasizes global asset allocation and suggests clients engage in a diversified investment approach. The decline in insurance product sales is expected to stabilize as we work with insurance firms to offer competitive products. Revenue growth will likely come from overseas investment products and enhanced insurance offerings.