At a glance
- Company
- Noah Holdings Limited
- Ticker
- HKEX: 6686
- Announcement
- Earnings
- Location
- Hong Kong
Key figures
- Q1 2023 net revenue
- 800 million RMB
- Net revenue year-over-year change
- 1.0%
- Overseas operations net income
- 320 million RMB
- Overseas operations net income year-over-year change
- 68.4%
- Overseas products AUM
- 330 million RMB
- Expected overseas share of group revenue
- more than half
People
- Wang JingboCo-Founder, Chairwoman and CEO
Hong Kong, June 15, 2023 -- Noah Holdings Limited ("Noah" or the "Company") (NYSE: and HKEX: 6686), a leading and pioneer wealth management service provider in China offering comprehensive one-stop advisory services on global investment and asset allocation primarily for high net worth investors, announced its unaudited financial results for the first quarter of 2023.
The figures show that in Q1 2023, Noah achieved a net revenue of 800 million RMB, marking a 1.0% year-on-year increase. Furthermore, the company's operating profit margin grew by 9.8% from the previous quarter, with the Non-GAAP net profit margin also increasing by 12.9% on a quarter-to-quarter basis.
Breaking it down by segment, wealth management net income rose by 1.5% year-on-year, with the overseas division particularly strong – posting growth of 52.7% year-on-year and 14.8% quarter-on-quarter. The asset management net income showed a year-on-year increase of 2.3%, with its overseas division growing by a remarkable 138.8% year-on-year and 8.2% quarter-on-quarter.
Looking geographically, the AUM of Noah's overseas products reached 330 million RMB, a quarter-on-quarter increase of 2.8%. The overseas operations contributed a net income of 320 million RMB, up 68.4% from the previous year and 13.0% from the previous quarter. The overseas division also expanded its share of total revenue from 23.8% in Q1 2022 to 39.7%.
In the context of the globalization of capital flows, the wealth management industry is experiencing a trend towards internationalization. Asset allocation, being at the heart of wealth management, has gained even more prominence due to the complexity and volatility of the past year. This has led many investors and institutions to appreciate the importance of diversification and risk dispersion in their portfolios, with a subsequent increase in demand for globally allocated assets.
Amid the ongoing globalization of capital flows, the wealth management industry is witnessing a shift towards internationalization. Asset allocation, being the cornerstone of wealth management, has become even more critical given the complexity and volatility of the past year. This dynamic has led many investors and institutions to value the importance of diversification and risk dispersion in their portfolios, consequently raising the demand for globally allocated assets.
Noah continues to prioritize its international development strategy, a commitment driven by customer demand. Following its dual primary listing in 2022, Noah is leveraging its strong foothold in the Hong Kong capital market to serve global clients from its China base, thus establishing a dual domestic-international growth cycle. As Noah deepens its international focus, it expects overseas revenues to account for more than half of the group's total within the next 3-5 years.
By the end of the fourth quarter of 2022, Noah Holdings had expanded its presence in Hong Kong and Taiwan in China, Silicon Valley, New York in the U.S., and Singapore. Since its listing on the NYSE, Noah has distributed RMB 948.9 billion of investment products to clients.
Looking ahead, Ms. Wang Jingbo, the Co-Founder, Chairwoman and CEO of Noah Holdings, emphasized the company's commitment to becoming a leading wealth management firm serving the global Chinese community. She acknowledged that while the goal offers vast growth opportunities, it also requires unwavering dedication and continued effort. She urged the company to maintain its focus and strive even further to achieve its ambitious targets.
On July 13, 2022, Noah went public on the Hong Kong Stock Exchange, thus becoming China’s first independent wealth management institution dually listed in the Hong Kong Stock Exchange and the New York Stock Exchange.
Contact Info:
Name: Yoyo Luo
Email: Send Email
Organization: Shanghai Noah Investment (Group) Co., Ltd.
Website: https://noahgroup.com/
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In brief
Noah Holdings reported unaudited first-quarter 2023 results, with net revenue of RMB 800 million, up 1.0% year over year. The company said operating profit margin rose 9.8% from the prior quarter, while its Non-GAAP net profit margin increased 12.9% quarter over quarter. Wealth management and asset management net income grew year over year, with overseas divisions recording stronger growth. Noah also reported RMB 320 million in overseas operations net income, up from both the prior year and prior quarter. The company said overseas products’ assets under management reached RMB 330 million. Chairwoman and CEO Wang Jingbo reiterated the firm’s goal of serving the global Chinese community. Noah said it expects overseas revenue to exceed half of group revenue within the next 3–5 years.
Key takeaways
- First-quarter net revenue was RMB 800 million, a 1.0% year-over-year increase.
- Overseas operations generated RMB 320 million in net income, up 68.4% year over year.
- Overseas products’ assets under management reached RMB 330 million, up 2.8% quarter over quarter.
- Noah expects overseas revenue to account for more than half of group revenue within the next 3–5 years.
