August 28, 2025 – Noah Holdings Limited (NYSE: NOAH, HKEX: 6686) announced its unaudited financial results for the second quarter of 2025.
Amid heightened global financial market volatility and rising geopolitical risk, Noah Holdings has demonstrated remarkable anti-fragility, powered by its forward-looking professional judgment and steadfast global strategy. Guided by the forward-looking insights from its H1 CIO report, Noah's clients achieved strong investment performance in the second quarter. As of the end of the quarter, over 95% of its "Black Card clients" had realized cumulative profits.
Central to this result is the company's end-to-end global product matrix, which has been built over several years and now covers eight major categories, including VC/PE funds, hedge funds, infrastructure funds, and global public funds. These offerings combined with Noah Holdings' one-stop global asset allocation capabilities, has effectively helped clients build a "ballast" for their assets, continuously enhancing their wealth's resilience in an increasingly uncertain world.
Noah Holdings has continued to deepen its strategic position as a "Global Chinese Wealth Management Platform," and achieved positive results through sustained investment in its platform and capabilities. On one hand, its international presence continues to expand, with the successful rolling out of its service network across key global markets. On the other hand, AI is profoundly empowering the professional capabilities of its relationship managers and enhancing the client service experience, while the development of its digital platform has significantly boosted cross-border collaboration and operational efficiency.
During the reporting period, the company delivered outstanding core performance, with several key metrics showing significant growth. Non-GAAP net income for the second quarter reached RMB 189 million, a substantial year-over-year increase of 78.2%, while operating profit grew 20.2% YoY. Notably, Noah Holdings achieved a major milestone in its globalization strategy, with net revenue from overseas operations rising to 47.1% of the Group's total revenue. This marks a critical step forward for Noah in serving high-net-worth Chinese clients globally and elevates its international operational capabilities to a new level.
Q2 2025 Financial Highlights
Optimized Revenue Structure
Leveraging its end-to-end global product matrix (covering eight major categories including VC/PE, hedge funds, and infrastructure funds), Noah Holdings has broken down barriers between markets in Europe, America, and Asia:
Strong Growth in Overseas Products: transaction value for USD-denominated private secondary products, including hedge funds and structured products, exceeded US$420 million in the first half of the year, a YoY increase of over 200%.
Diversified Revenue Engines: The proportion of one-time commissions from investment products reached a multi-year high, exceeding 30% of total one-time commissions.
Efficiency Gains from Technology: Full-process AI integration has reduced operational costs, and the digital platform has enhanced asset allocation efficiency.
Leap in Profitability
Through sustained and effective strategic cost controls driving a structural decline in operating costs, profitability continues to improve:
Non-GAAP Net Income: RMB 189 million, up 78.2% YoY and 12.0% sequentially.
Income from Operation: RMB 161 million, up 20.2% YoY; operating margin was 25.6%, a YoY increase of 3.8 percentage points.
Cash Position: Cash and short-term investments stood at RMB 5.4 billion, with the current ratio remaining at a healthy level.
Strong Momentum in "Glocalization"
The strong growth of our overseas business is being driven by our meticulously crafted strategy of "localized talent + customized products + a centralized technology platform." This approach has systematically built up our powerful cross-regional service capability, and serves as our core engine for capturing global market share, achieving sustained revenue growth, and continuously driving up revenue contribution from our overseas business.
Net Revenue from Overseas: RMB 297 million, up 6.5% YoY, accounting for 47.1% of the Group's total revenue.
Overseas AUA (Assets Under Management): US$9.1 billion, up 6.6% YoY.
Breakthroughs with Top-Tier Global Partners: Became a top three distribution channel in Asia for leading global GPs such as Ares and Hamilton Lane.
Talent and Client Expansion: The number of overseas relationship managers increased by 34.5% YoY; over 600 new qualified investors were added in the first half of the year; the number of registered overseas clients exceeded 18,900, a YoY increase of 13.0%.
Business Highlights: Strategic Focus Yields Results
Globalization Strategy Deepens
By cultivating the global high-net-worth Chinese client market through localized strategies and partnerships with top-tier product providers, Noah Holdings is enhancing both the scale and quality of its overseas business:
Overseas active clients increased by 12.5% YoY; with commission-only agent team generated over RMB 20 million in revenue.
Transaction value for USD-denominated private equity products reached US$770 million in the first half of the year, a YoY increase of 70.3%.
The global research platform selects top-tier managers to create customized solutions covering markets in Europe, America, and Asia.
Digital Asset Strategy Implementation
Noah Holdings is actively embracing fintech innovation to expand the boundaries of digital assets in a compliant manner to open up new growth engines:
Launched First Stablecoin Fund: Olive US partnered with Coinbase to issue its first compliant stablecoin fund, continuing to monitor and deploy capital into new asset classes.
Leading in the Secondary Market: Transaction value for RMB-denominated private secondary products reached RMB 6.13 billion in the first half of the year, a significant YoY increase of 185.3%.
Continuous Optimization of Operational Efficiency
By focusing on core capabilities and resources, Noah Holdings continues to enhance operational performance through technology and strategic optimization:
Gopher Asset Management achieved RMB 800 million in private equity exits in a single quarter, releasing liquidity dividends.
The coverage network in mainland China continues to be optimized, now covering 12 cities, with ongoing improvements in operational efficiency.
At the same time, delivering long-term, sustainable shareholder returns remains a key strategy. Over the past three years, the company has returned over RMB 1.8 billion to shareholders through dividends and buybacks. The Board of Directors and management are committed to continuing the strict execution of a prudent capital allocation policy. Looking ahead, Noah Holdings will remain focused on enhancing shareholder value, driving sustainable growth, and achieving long-term success.
Management's Strategic Insights
Jingbo Wang
Co-Founder and Chairwoman of the Board, Noah Holdings
"With overseas revenue accounting for nearly 50% of our total, the forward-looking nature of our globalization strategy has been validated. We have demonstrated our 'anti-fragile' capability amid market volatility. In the future, we will leverage the dual engines of compliance and technology to continue locking in definitive value for our high-net-worth clients."
Zander Yin
Co-Founder, Director, and CEO of Noah Holdings
"We are continuously upgrading our 'Global Chinese Wealth Management Platform.' By deepening our 'business partner' model in mature markets like the US, Canada, and Japan, we are actively attracting top-tier talent to perfect our global network. We are proactively exploring the new frontier of digital assets and seizing opportunities by partnering with compliant institutions like Coinbase. We are also strengthening our global centralized operations with AI and our digital platform to enhance cross-border risk management and client service efficiency, striving to realize our vision: 'Where there are Chinese people, there is NOAH's ARK.'"
H2 Strategic Allocation Recommendations
Noah's CIO Office notes that we are entering a dual-track era where "technological deflation" and "policy reinflation" run in parallel. Noah Holdings has developed a proprietary "Three Pillars" dynamic allocation model. With inflation-hedged assets (50%) as the ballast, deflation-hedged assets (30%) to capture new growth engines, and bridge assets (20%) to enhance liquidity, the model aims to help investors navigate the cycle and lock in definitive value amid global volatility.
