#China #Shanghai #Wealth Management #Noah Holdings #investment products

Noah Holdings Reports Strong Q2 2025 Earnings

Noah Holdings Limited, recognized as a leading pioneer in wealth management services, has unveiled its financial results for the second quarter of 2025. The company, primarily catering to high-net-worth investors, reported robust growth amidst evolving market conditions. Here’s a comprehensive overview of their financial performance and strategic initiatives.

Financial Performance Overview

In Q2 2025, Noah Holdings achieved net revenues of RMB 630 million (approximately US$87.9 million), marking a 2.2% increase from the previous year. Additionally, non-GAAP net income surged by 78.2% year-over-year, reaching RMB 189 million (around US$26.4 million). The income from operations also saw a significant boost, up 20.2% year-over-year to RMB 161 million (US$22.5 million). These figures highlight the company's adherence to disciplined cost management and operational efficiency.

For the first half of 2025, Noah generated impressive net revenues of RMB 1.24 billion, with a non-GAAP net income of RMB 358 million—a 33.9% increase compared to the same period last year.

Strategic Initiatives and Expanding Overseas Presence

Zander Yin, Co-Founder and CEO of Noah, attributed the company’s solid performance to its adaptable strategies during the economic challenges faced by the wealth management industry. The rebound in profitability and increased revenue from investment products result from strategic initiatives aimed at improving operational efficiencies and expanding overseas markets. Notably, overseas revenue now constitutes nearly 50% of Noah's total net revenues.

Noah is also excited to announce its partnership with Coinbase Asset Management, launching its first stablecoin yield fund under the Olive brand. This initiative emphasizes Noah's commitment to broadening its digital asset offerings and utilizing licensed institutions to tap into the growing digital asset market.

Enhanced Revenue Structure

The second quarter saw Noah optimizing its revenue mix significantly, with a staggering 92.0% year-on-year growth in revenues from investment product distribution. The company’s strategic focus on this area has resulted in over 30% of its commission revenue now coming directly from one-time commissions related to investment products.

Transaction values also demonstrated growth, with RMB-denominated products increasing by 35.0% and USD-denominated products seeing a 5.2% rise year-over-year. In total, transaction values reached RMB 17.0 billion, evidencing a 17.7% year-over-year growth.

By June 30, 2025, Noah's assets under management totaled RMB 145.1 billion (US$20.3 billion), with notable increases in both USD-denominated assets and advisory capabilities, emphasizing the firm’s strength in a competitive market landscape.

Growth from International Markets

The increase in revenues from overseas products stood out in the second quarter, reaching RMB 297 million (US$41.4 million), accounting for 47.1% of total revenues. The momentum is further reflected by the fact that 85% of newly generated revenue in the first half of the year came from overseas markets. Noah has expanded its team by 34.5% year-on-year, bringing on 152 relationship managers focused on international markets and increasing its registered overseas client base to over 18,900.

Outlook for the Future

Looking ahead, Noah Holdings is committed to sustaining its growth trajectory through three key strategic priorities:
1. Expanding the Global Client Base: The introduction of a new “Business Partner” model will target mature markets, aligning local expertise with Noah’s global product capabilities.
2. Broaden Product Offerings: The company will enhance its investment solutions, particularly within emerging asset classes, driven by research initiatives and partnerships.
3. Operational Efficiency and Client Service: A focus on integrating AI technology throughout operations is aimed at enhancing service and operational efficiency, thus enabling further growth.

Zander Yin concluded, “While the economic environment presents challenges, we remain focused on executing our strategies for sustainable growth and delivering value to our stakeholders. With a strong balance sheet, operational improvements, and an expanding international footprint, we are well-positioned to navigate uncertainties in global markets.”

Conclusion

Noah Holdings Limited continues to thrive in the dynamic landscape of wealth management amid revitalized market conditions. Through strategic partnerships and an emphasis on operational excellence, Noah is set to capitalize on opportunities, ensuring long-term growth for its stakeholders while reinforcing its status as a leader in wealth management services.

For more information, visit Noah's Investor Relations.