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

Insights

Financial Analyst

Noah's FY2024 results reflect significant challenges with 21.1% revenue decline to $356.3 million and 46% drop in non-GAAP net income to $75.4 million. The overseas segment now contributes 48% of total revenues, becoming increasingly critical as domestic operations face headwinds.

While financial metrics show substantial deterioration, three positive developments stand out: (1) successful capital raising of $663 million for overseas alternative investments (44.9% YoY increase), (2) 15% growth in overseas AUM to $5.8 billion, and (3) aggressive international expansion with a 55% increase in overseas relationship managers.

The dividend strategy is particularly noteworthy – a combined $75.4 million in annual and special dividends represents 100% of non-GAAP net income, reflecting management's commitment to shareholder returns during transition. This payout ratio appears unsustainable long-term but serves as a bridge to maintain investor confidence.

Noah's domestic restructuring carries short-term costs but addresses regulatory compliance issues while potentially reducing fixed expenses. The company's strategic pivot toward global operations targeting the Mandarin-speaking HNWI diaspora represents a logical evolution given China's wealth management market challenges, though execution risks remain substantial as they build infrastructure across multiple jurisdictions.

Wealth Management Strategist

Noah's international expansion strategy demonstrates clear strategic vision amid domestic market constraints. Their three-brand approach (ARK Wealth Management, Olive Asset Management, Glory Family Heritage) creates distinct value propositions catering to different segments within the high-net-worth Mandarin-speaking market globally.

The geographic expansion model – establishing booking centers in Hong Kong, Singapore, and the US to serve broader regions – efficiently leverages regulatory advantages while minimizing infrastructure costs. This hub-and-spoke approach enables Noah to target underserved markets like Southeast Asia, Japan, and Canada with minimal physical presence.

The 44.9% increase in overseas alternative investments to $663 million signals client appetite for diversification beyond traditional products. This product evolution is critical as wealthy Chinese investors increasingly seek global asset allocation amid domestic market volatility. The company's ability to raise substantial capital for alternatives during a challenging year demonstrates relationship strength with global product partners and underlying client trust.

However, the 55% expansion in overseas relationship managers presents integration challenges – rapidly scaling advisory capacity while maintaining service quality requires robust training and compliance systems. The transition from insurance-heavy distribution (which drove previous profitability) toward a broader product mix will likely compress margins before reaching scale.

Noah's experience navigating China's evolving regulatory landscape provides valuable institutional knowledge for international expansion, but the company faces entrenched Western wealth management competitors with established platforms serving the same client demographic.

SHANGHAI, March 26, 2025 /PRNewswire/ -- Noah Holdings Limited ("Noah" or "the Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneering wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for Mandarin-speaking high-net-worth investors (HNWIs), today announced its unaudited financial results for the fourth quarter of 2024 and audited results for the full year ended December 31, 2024.

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 RMB2.6 billion (US$356.3 million), a 21.1% decrease compared to 2023, primarily due to a decrease in insurance product distribution. Net revenues from overseas were RMB1.3 billion (US$171.5 million) in 2024, accounting for 48% of total net revenues.

In the fourth quarter of 2024, net revenues were RMB651.9 million (US$89.3 million), an 18.5% decrease from the corresponding period in 2023. Net revenues from overseas were RMB289.8 million (US$39.7 million) during the quarter, a decrease from the same period in 2023 primarily due to a decline in the distribution of overseas insurance products. Excluding insurance products, net revenues from overseas investment products grew on a year-over-year basis during the quarter and year, reflecting the progress it has made in expanding its portfolio of alternative investment products.

For full-year 2024, Non-GAAP net income attributable to Noah shareholders was RMB550.2 million (US$75.4 million), a decline of 46.0% from 2023, reflecting the impact of reduced government subsidies and increased tax expenses associated with dividend payouts.

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 Hong Kong and mainland China market rally at the end of September 2024 which drove demand for its global RMB-denominated ETF, QDII, and QDLP products, generating solid returns for clients and showcasing the resilience its domestic business. 

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 Hong Kong (China), Singapore, and the U.S. (currently in progress), which will service markets such as Southeast Asia, Japan, and Canada with large and underserved communities of Mandarin-speaking HNWIs. Its team of overseas relationship managers continues to grow, increasing by 55% year-over-year to 138, and is driving this expansion.

Noah also strengthened its alternative investment offerings during the year by leveraging its extensive ecosystem of global product partners. The Company raised US$663 million for overseas private equity, private credit, and other primary market funds—a significant increase of 44.9% year-over-year—while overseas assets under management (AUM) grew by 15% to US$5.8 billion as of December 31, 2024.

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 RMB275 million (US$37.7 million) and a special dividend of RMB275 million (US$37.7 million), representing a total payout equivalent to 100% of full-year 2024 non-GAAP net income attributable to Noah shareholders.

"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 Hong Kong (China) and Singapore, with additional hiring anticipated in the U.S. and other regions. In addition, Noah plans to further strengthen the team of commission-only agents it began building from the ground up in 2024 for its insurance businesses.

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 RMB151.5 billion (US$20.8 billion) as of December 31, 2024.

For more information, please visit Noah at ir.noahgroup.com. 

 

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SOURCE Noah Holdings Limited

FAQ

What was Noah Holdings (NOAH) revenue performance in FY2024?

Noah's FY2024 net revenues decreased 21.1% to RMB2.6 billion (US$356.3 million), with overseas revenues accounting for 48% of total.

How much did NOAH's overseas assets under management (AUM) grow in 2024?

Noah's overseas AUM grew by 15% to reach US$5.8 billion as of December 31, 2024.

What dividend did Noah Holdings announce for shareholders in 2024?

Noah approved a total dividend of RMB550 million, combining an annual and special dividend, representing 100% of 2024 non-GAAP net income.

How much capital did NOAH raise for overseas investments in 2024?

Noah raised US$663 million for overseas private equity, private credit, and other primary market funds, a 44.9% increase year-over-year.

What was NOAH's Q4 2024 revenue performance?

Q4 2024 net revenues were RMB651.9 million (US$89.3 million), an 18.5% decrease from Q4 2023.