Noah Holdings announced its unaudited financial results for the second quarter of 2025, reporting a significant rebound in profitability. Non-GAAP net income surged by 78.2% year-over-year and 12% sequentially to RMB 189 million. Income from operations increased by 20.2% year-over-year to RMB 161.0 million (US$22.5 million), with the operating margin expanding to 25.6%.
Net revenues for the quarter were RMB 629.5 million (US$87.9 million), a 2.2% increase from the corresponding period in 2024. Overseas net revenues were a primary growth driver, reaching RMB 297 million in Q2 2025 and accounting for 47.1% of total net revenue. Over 85% of newly generated revenue in the first half of 2025 originated from offshore products, highlighting the success of the international expansion strategy.
Despite domestic market challenges, where Mainland China net revenues decreased by 1.3% year-on-year, the domestic public securities business saw a 12.8% year-over-year increase in net revenues to RMB 131.8 million. This was fueled by a 185.3% year-over-year surge in transaction value for Renminbi-denominated private secondary products in the first half of the year. Total operating costs and expenses for the first half of 2025 decreased by 11.2% year-over-year to RMB 897 million, reflecting disciplined cost management.
Noah's balance sheet remains robust, with combined cash and short-term investments totaling RMB 5.4 billion as of June 30, 2025, and no interest-bearing liabilities. The company aims to grow overseas AUA to USD 20 billion over the next three to five years, supported by an overseas relationship manager team that expanded to 152 by the end of Q2 2025, a 34.5% year-on-year increase. Management plans to distribute RMB 550 million in annual and special dividends in July 2025, representing 100% of its non-GAAP net income for 2024.
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