Revenue and profit grew steadily, and the quality of performance growth continued

August 29, 2023 - Noah Holdings Limited (NYSE: NOAH, HKEX: 6686, hereinafter referred to as Noah) announced unaudited results for the second quarter of 2023. Data show that in the second quarter of 2023, the company's net income increased by 27.6% year-on-year and 17.2% quarter-on-quarter. In terms of revenue segment, wealth management net income increased by 46.5% year-on-year and 27.0% quarter-on-quarter; In terms of revenue type, the revenue from raising fees increased by 95.2% year-on-year and 129.6% quarter-on-quarter. Among them, operating profit increased by 8.1% year-on-year and 25.3% quarter-on-quarter. According to the financial report data, thanks to Noah's continuous and effective operation and management and customer strategy, the total assets exceeded 12 billion (unit: RMB, the same below) and the net assets exceeded 10 billion.

Ms. Wang Jingbo, co-founder, Chairman and CEO of Noah Holdings, pointed out in the performance call: "As an independent wealth management institution, Noah's long-term survival is fundamentally based on adhering to the core strategy of" customer-centric, survival as the bottom line "and adhering to the common sense and bottom line thinking of the financial industry. Since its establishment 20 years ago in 2003, Noah has always taken compliance operations as the bottom line and respected the common sense of the financial industry. From the first day of the exhibition, it has never set up a capital pool, does not do leverage allocation, has no deadline mismatch, and insists on not just trading and does not carry out any form of cross-border operations of customer funds. The three businesses of wealth management, asset management and comprehensive service are complementary to each other for Noah. We adhere to research and product quality as the first priority, continue to deepen investor education, and meet customers' wealth management needs with professional asset allocation capabilities, so that we can fully meet the needs of different customers such as individuals, institutions and family inheritance. At the same time, it brings greater internal stability and balance to our business."

In recent years, with the steady development of China's economy and the increase of residents' wealth, the domestic wealth management market has continued to grow, and the expansion of the wealth management market has also brought about the diversification of customer needs. The ability of personalized service and global asset allocation are becoming the breakthrough point for the development of wealth management institutions in the future. At the same time, concerns about international geopolitical conflicts and global economic recession have become the primary concern of high net worth clients in Asia, and in the short term, macro uncertainties will become the core factor for investors to adjust strategic asset allocation. However, innovations and breakthroughs in artificial intelligence technology like ChatGPT have also made professional investors in the global market look forward to a new round of technology cycles and growth opportunities that it may bring.

In the first half of 2023, the company as a whole recorded net income of 1.75 billion yuan, an increase of 13.8% year-on-year. Single quarter data show that the company's net income in the second quarter increased by 27.6% year-on-year and 17.2% quarter-on-quarter. By revenue segment, wealth management net income increased by 46.5% year-on-year and 27.0% quarter-on-quarter; According to the revenue type, the revenue of raising fees increased by 95.2% year-on-year, and increased by 129.6% quarter-on-quarter. Thanks to Noah International's forward-looking layout and continuous investment in channels, products and integrated services, in the first half of 2023, overseas business contributed 710 million yuan, an increase of 104.1%, accounting for the proportion of total revenue increased from 22.6% last year to 40.8%. The quarterly data show that the net income of the overseas sector increased by 146.8% year-on-year and 22.5% quarter-on-quarter.