#China #Shanghai #financial results #Wealth Management #Noah Holdings

Noah Holdings Reports Third Quarter 2025 Financial Results

Noah Holdings Limited, a recognized leader in wealth management services focusing on global investment and asset allocation, has announced its unaudited financial results for the third quarter of 2025. This update reflects the company's strategic realignment and operational adjustments amidst a shifting financial landscape, particularly as it adapts to the unique demands of high-net-worth Chinese investors.

Financial Performance Overview

In Q3 2025, Noah reported net revenues amounting to RMB 632.9 million (approximately USD 88.9 million), displaying a decrease of 7.4% compared to the same period in the previous year. This decline has been attributed mainly to a slowdown in one-time commissions related to insurance distribution products and performance-based income. However, on a quarter-to-quarter basis, revenues showed stability.

Despite the decline in net revenues, the company experienced a positive shift in profitability. Income from operations stood at RMB 171.9 million (about USD 24.1 million), which is down 28.6% year-over-year, correlating with the drop in revenues. Interestingly, net income attributable to Noah's shareholders surged to RMB 218.5 million (USD 30.7 million), marking a remarkable 62.6% increase from the prior year. This substantial growth was largely fueled by the rising fair value of investments in affiliates.

Non-GAAP Financial Metrics and Operational Insights

The non-GAAP net income attributable to Noah shareholders for this quarter rose to RMB 229.1 million (around USD 32.2 million), indicating a 52.2% year-on-year increase. Such figures underscore Noah's resilient financial management and its ability to enhance profitability, even amid fluctuating market conditions.

In terms of operations, Noah’s wealth management division has shown considerable progress. As of September 30, 2025, the company registered 466,153 clients, reflecting a modest growth of 1.3% compared to the previous year. Particularly notable is the rise in overseas clients, which increased by 13.1%, showcasing Noah's expanding international footprint.

Moreover, active client transactions jumped 35.5% year-over-year to 10,650 clients engaging in transactions during Q3, signaling a robust client engagement across Noah’s service offerings. The total value of investment products distributed reached RMB 17.0 billion (USD 2.4 billion), a 19.1% increase from the previous year's Q3, driven by an impressive 66.9% rise in private secondary product distribution.

Geographical and Product Segmentation

Noah's operations in Mainland China encompassed significant growth in mutual fund products, while overseas operations also demonstrated promising trends with the collective value of overseas investment products rising to RMB 8.6 billion (USD 1.2 billion).

The company shifted to a refined segment reporting structure in Q4 of 2024, allowing better insights into its operational performance across various business segments. This adjustment aims to furnish stakeholders with a clearer overview of how each division contributes to overall revenue.

Forward-Looking Statements and Initiatives

Noah's strategy heading into Q4 2025 includes leveraging technology innovations such as AI to enhance operational efficiencies and refine client acquisition strategies. The recent acquisition of a U.S. broker-dealer license signals Noah's commitment to broadening its global reach and elevating service delivery standards.

As highlighted by Ms. Jingbo Wang, Co-founder and Chairwoman, Noah is poised to build on its strong capital foundation to fuel future growth, focusing on delivering sustainable value to shareholders while prioritizing sound market oversight.

Conclusion

As Noah Holdings continues to navigate a complex investment landscape, its financial results for Q3 2025 reflect both the challenges and opportunities present. With ongoing strategic initiatives aimed at enhancing service offerings and client engagement, Noah is well-positioned to further solidify its status in the wealth management sector and continue delivering value to its clients and shareholders alike.