Noah's 4Q/FY24 Earnings Showcase Resilient Profitability and Overseas Expansion
Rhea-AI Summary
Noah Holdings (NYSE: NOAH) reported its Q4 and FY2024 financial results, showing resilience despite challenging market conditions. Full-year net revenues declined 21.1% to RMB2.6 billion (US$356.3 million), with overseas revenues accounting for 48% of total. Q4 net revenues decreased 18.5% to RMB651.9 million.
The company's Non-GAAP net income for 2024 fell 46% to RMB550.2 million, impacted by reduced government subsidies and increased tax expenses. Noah underwent significant domestic restructuring while expanding globally, with overseas AUM growing 15% to US$5.8 billion. The company raised US$663 million for overseas investments, a 44.9% increase year-over-year.
The Board approved both an annual and special dividend totaling RMB550 million, equivalent to 100% of 2024 non-GAAP net income. Noah continues to focus on expanding its global presence and diversifying product offerings for 2025.
Positive
- Overseas AUM grew 15% to US$5.8 billion
- Raised US$663 million for overseas investments, up 44.9% YoY
- Overseas revenues represent 48% of total net revenues
- Board approved total dividend of RMB550 million (100% of non-GAAP net income)
- Business remains profitable and generates solid cash flow
Negative
- Full-year net revenues decreased 21.1% to RMB2.6 billion
- Q4 net revenues declined 18.5% YoY
- Non-GAAP net income fell 46% due to reduced subsidies and higher taxes
- Decline in overseas insurance product distribution
- Additional restructuring expenses impacted domestic business performance
News Market Reaction
On the day this news was published, NOAH declined 6.91%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
2024 was one of the most challenging years for Noah. A sluggish macroeconomic environment, increasingly stringent regulatory requirements, and shifting client preferences created significant headwinds for its business. While these challenges impacted its financial performance throughout the year, Noah's business remains profitable and continues to generate solid cash flow.
Noah continued to drive the transformation of its business despite these challenges, restructuring its domestic operations to fully comply with evolving regulatory requirements and building the global infrastructure to serve clients worldwide. While these efforts require upfront investments and will take time to scale, these foundational changes will position it for sustainable growth in the years ahead.
Financial Highlights
For full-year 2024, net revenues were
In the fourth quarter of 2024, net revenues were
For full-year 2024, Non-GAAP net income attributable to Noah shareholders was
Domestic Restructuring
In 2024, Noah undertook a significant compliance-driven restructuring of its domestic business to align with increasingly stringent regulatory requirements. These efforts included consolidating operations into core cities and separating domestic sales teams into independent and licensed business units, which led to additional upfront restructuring expenses during the year but will reduce fixed costs and improve operational efficiency going forward.
While this restructuring significantly impacted the performance of its domestic business in 2024, it has also established a solid foundation for Noah to build upon to drive long-term growth and capitalize on short-term opportunities. This is best exemplified by the
Expanding Global Infrastructure
Internationally, Noah made substantial progress in expanding its global footprint to serve Mandarin-speaking HNWIs worldwide. The Company launched three internationally focused brands—ARK Wealth Management, Olive Asset Management, and Glory Family Heritage—to provide tailored solutions for existing clients and expand into new markets. Booking centers were established in key financial hubs such as
Noah also strengthened its alternative investment offerings during the year by leveraging its extensive ecosystem of global product partners. The Company raised
Ms. Jingbo Wang, Co-Founder and Chairwoman of Noah, commented, "2024 was a transformative year for Noah as we navigated a challenging macroeconomic environment while laying the foundation for long-term growth both domestically and overseas. Despite short-term headwinds impacting our performance, our business remains profitable and continues to generate solid cash flow."
Zander Yin, Co-founder and CEO of Noah, added, "We're extremely excited about the huge potential that the overseas Mandarin-speaking wealth management market presents. It reminds us of the early days of Noah's founding in 2005 when we were full of optimism and had a clear vision for the future. We're committed to growing our overseas presence and building strong teams to support it. This is a costly process that requires time and patience, but we're confident that in the long run, it will position us as the preferred wealth management platform for global Mandarin-speaking clients."
Commitment to Driving Shareholder Returns
In appreciation of the longstanding support that shareholders have given Noah, the Board of Directors approved an annual dividend of
"We remain committed to delivering value to our clients and shareholders as we continue our journey of transformation," said Ms. Wang.
2025 Outlook
Looking ahead to 2025, Noah plans to build on its progress by expanding its client base both domestically and overseas while continuing to diversify its product offerings to provide clients with more competitive investment portfolios and asset allocation strategies. The Company also aims to further enhance its global operations by recruiting and expanding its team of relationship managers in
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH and HKEX: 6686) is 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.
Noah's American depositary shares, or ADSs, are listed on the New York Stock Exchange under the symbol "NOAH", and its shares are listed on the main board of the Hong Kong Stock Exchange under the stock code "6686."
Through Gopher Asset Management and Olive Asset Management, Noah had assets under management of
For more information, please visit Noah at ir.noahgroup.com.
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SOURCE Noah Holdings Limited
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