Noah Holdings Limited reported third‑quarter 2025 results that showed a 7.4% year‑over‑year decline in net revenue to RMB632.9 million (US$88.9 million) while non‑GAAP net income rose 52.2% to RMB229.1 million. The company’s operating margin contracted to 27.2% from 35.2% in the same quarter a year earlier, reflecting higher operating expenses and a shift toward lower‑margin overseas insurance and comprehensive‑services segments. Non‑GAAP earnings per share of RMB3.26 matched analyst expectations, indicating that the company’s cost‑control program successfully offset revenue headwinds.
Net revenue fell mainly because overseas wealth‑management revenue dropped 22.7% YoY to RMB146.2 million, driven by a decline in referral fees for overseas insurance distribution. Domestic insurance revenue also slipped 44.8% to RMB53.1 million as one‑time commissions from insurance product sales weakened. In contrast, domestic asset‑management revenue grew 4.9% to RMB189.3 million, supported by recurring service fees from private‑equity products, and domestic public‑securities revenue increased 8.7% to RMB115.9 million, buoyed by one‑time commissions from domestic private‑secondary products. The mixed segment performance explains the overall revenue decline despite sequential growth of 0.5% from Q2 2025.
Operating margin compression was driven by a 28.6% decline in operating income, largely due to the revenue drop and a 12% rise in operating costs. Higher expenses were concentrated in overseas insurance and comprehensive‑services operations, as well as in headquarters functions where compensation and benefits increased. The shift in revenue mix toward lower‑margin segments further eroded profitability, even as the company maintained disciplined cost management across its global booking centers.
Strategic milestones highlighted in the release include the acquisition of a U.S. broker‑dealer license, the launch of an AI platform to streamline client acquisition and back‑office processes, and the growth of overseas assets under administration to US$9.3 billion as of September 30 2025. While the company did not specify a five‑year AUA target, the current level represents a 6.8% year‑over‑year increase and signals continued momentum in its overseas expansion strategy.
Management emphasized disciplined cost control and the importance of AI integration. CEO Zander Yin said the company was “making steady progress on its transformation strategy, with AI driving efficiency gains and expanding our overseas client base.” CFO Grant Peng noted that the firm’s “high total transaction value and growing RMB and USD‑denominated products” underpin the robust non‑GAAP earnings growth, while acknowledging that “ongoing softness in domestic and overseas insurance businesses” could moderate fourth‑quarter performance.
Market reaction to the results was muted. Shares traded with little change in after‑hours and early morning Hong Kong trading, reflecting investors’ cautious stance. Analysts noted that while the company’s profitability beat expectations, the revenue decline and margin compression tempered enthusiasm, and they highlighted the need for continued focus on high‑margin investment products and AI‑driven growth to sustain long‑term upside.
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