Noah Holdings announced its unaudited financial results for the first quarter of 2025, reporting a robust recovery in profitability. Non-GAAP net income rebounded 27.4% sequentially to RMB 168.8 million (US$23.3 million), and income from operations jumped 35.2% sequentially to RMB 186.0 million (US$25.6 million). This drove the operating margin to 30.3%, reflecting the success of operational efficiency initiatives and a CAPEX-light strategy.
Total net revenues for the quarter were RMB 614.6 million (US$84.7 million), a decrease of 5.4% year-over-year, primarily due to a decline in insurance product distribution and RMB-denominated private equity recurring service fees. However, overseas net revenues continued to grow sequentially, expanding 5.0% to RMB 304.2 million (US$41.9 million) and now accounting for nearly 50% of total net revenues, showcasing progress in international expansion.
Overseas business growth was significant, with revenue from overseas investment products increasing 20.3% year-over-year. USD-denominated assets under management climbed 14.2% year-over-year to US$5.9 billion, and USD-denominated assets under advisory rose 8.7% to US$9.1 billion. The overseas relationship manager team expanded 44% year-over-year to 131, and a newly formed overseas commission-only insurance agent team grew to 75 agents, contributing approximately RMB 10 million in revenue.
Domestically, net revenues were RMB 310.4 million, down 9.4% year-over-year, but transaction value for RMB-denominated private secondary products surged 257.7% year-over-year to RMB 3.3 billion. Noah continues to prioritize shareholder interests, having repurchased over 1.3 million ADSs as part of its US$50 million buyback program. The company also plans to distribute RMB 550 million in annual and special dividends in July 2025, representing 100% of 2024's non-GAAP net income.
As of March 31, 2025, cash and cash equivalents stood at RMB 4.1 billion, supplemented by RMB 1.3 billion in highly liquid short-term investments, with no interest-bearing debt. The company's strategic priorities for 2025 include balancing quality and quantity of overseas growth, expanding local teams, investing in AI and technology, and diversifying its product suite with trusts, emigration advisory services, and cross-border solutions.
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