This article first appeared on GuruFocus .
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Net Revenue:RMB626 million, up 1.8% year-over-year, down 14.7% quarter-over-quarter.
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Operating Profit:RMB236 million, up 27.1% year-over-year.
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Operating Margin:37.8%, one of the highest quarterly levels in recent years.
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Non-GAAP Net Income:RMB134 million.
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Active Clients:10,742, up 21.8% year-over-year.
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Transaction Value:RMB23.3 billion, up 44.8% year-over-year.
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Domestic Mutual Fund Transaction Value:RMB9.9 billion, up 131% year-over-year.
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Domestic Private Secondary Products Transaction Value:RMB5.3 billion, up 61% year-over-year.
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Noah Upright Net Revenue:RMB208 million, up 63% year-over-year.
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Overseas Registered Clients:20,373, up 11.9% year-over-year.
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Overseas AUA:USD9.6 billion, up approximately 5.9% year-over-year.
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Cash, Cash Equivalents, and Short-term Investments:RMB5.13 billion.
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Interest-bearing Debt:0.
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Dividend Proposal:Total payout of 100% of full year 2025 non-GAAP net income.
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Headcount:Declined by approximately 3% quarter-over-quarter.
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Performance-based Income:RMB100 million, up 253% year-over-year.
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Recurring Management Fees:RMB379 million, down 3.4% year-over-year.
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SG&A Expenses:RMB103 million, down 10.8% year-over-year.
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Total AUM:RMB140.2 billion.
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Total AUA:RMB233.5 billion.
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Overseas AUM:USD6.2 billion, up 5% year-over-year.
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Balance Sheet:Total assets of RMB11.6 billion, total liabilities of RMB1.7 billion.
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Asset Liability Ratio:14.5%.
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Current Ratio:4.8x.
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Share Repurchase:2 million ADS for approximately USD20 million since 2020.
Release Date: May 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Noah Holdings Ltd ( NYSE:NOAH ) achieved a significant improvement in profitability structure, with operating margin reaching one of the highest quarterly levels in recent years at 37.8%.
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The company observed double-digit growth in both active clients and transaction value, indicating strong momentum in its domestic business.
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Noah Holdings Ltd ( NYSE:NOAH ) successfully expanded its global footprint with the commencement of operations in Japan and the final approval of its U.S. broker-dealer license.
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The company's AI strategy is enhancing operational efficiency, with AI-driven tools supporting client engagement and operational processes, leading to a leaner organizational structure.
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Noah Holdings Ltd ( NYSE:NOAH ) maintained a strong balance sheet with RMB5.13 billion in cash, cash equivalents, and short-term investments, and zero interest-bearing debt.
Negative Points
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Net revenues decreased by 14.7% quarter-over-quarter, primarily due to a decline in contribution from the insurance business and a seasonal decrease in performance fee income.
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The overseas business faced challenges with a sequential decline in transaction value, active client numbers, and RM numbers.
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Reported net income was affected by non-operational volatility, including mark-to-market accounting adjustments on specific listed investments.
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The company's total AUM and AUA at the group level declined, despite growth in the U.S. dollar-denominated base.
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The regulatory landscape in China poses potential challenges, although the company emphasizes compliance with legal requirements across different jurisdictions.
Q & A Highlights
Q: Last Friday, China tightened regulations on cross-product brokerage businesses. What is the management's view on the evolving regulatory landscape, and what is the potential impact on Noah's domestic market business? A: The CEO, Zhe Yin, emphasized that the company has always complied with legal requirements across different jurisdictions. The recent regulatory changes are seen as a reinforcement of existing rules. The securities business contributes less than 1% to Noah's total revenue, so the impact is minimal. The company remains confident in its compliance with regulations in Hong Kong, Singapore, and the U.S.
Q: Wealth management product transaction volume has picked up in the first quarter. What is the operating trend in the second quarter, and how is client demand for domestic and overseas investment products? A: CEO Zhe Yin noted that investment sentiment has improved compared to two years ago. The company focuses on helping clients diversify their assets into different classes and products. AI-related products are gaining traction, and AI is being used to support relationship managers in client risk analysis, enhancing selling efficiency.
Q: Could you share the full-year guidance for headcount growth and operating expense trends? A: CFO Qing Pan stated that there is no set target for frontline team growth. The focus is on performance-driven efficiency, with AI helping to consolidate roles and optimize back-office structures. While there may be some key hires globally, the emphasis remains on AI and technology investments.
Q: Transaction value, active client numbers, and RM numbers for overseas business declined. What is the growth outlook for this segment? A: CEO Zhe Yin acknowledged the sequential drop but highlighted year-over-year growth. The company is focusing on strategic booking centers and applying for asset management licenses in key markets like the U.S. AI is being used to enhance client service efficiency, particularly in Singapore, which has shown strong results.
Q: How does AI help relationship managers develop their business, particularly in the Singapore market? A: Chairwoman Jingbo Wang explained that AI supports relationship managers by enhancing client service without increasing human resources. The AI + Wealth Management department and AI + Ecosystem are key components. Singapore serves as a test market, showing significant growth in AUA and validating the AI-driven approach.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
