• Noah Holdings (NOAH, Financial) reported a substantial 27.4% sequential increase in non-GAAP net income for Q1 2025, reaching RMB 168.8 million.
• The company saw 5.0% sequential growth in overseas revenues, now contributing 50% of its total revenue.
• Operating costs decreased by 18.8% year-over-year, highlighting effective cost control measures.
Noah Holdings Limited (NOAH, Financial) has delivered impressive financial results for the first quarter of 2025, emphasizing strong profitability amid declining total revenues. The non-GAAP net income rose by 27.4% quarter-on-quarter to RMB 168.8 million, demonstrating the impact of strategic cost reductions and overseas expansion efforts.
Despite a 5.4% year-over-year decline in total revenues to RMB 614.6 million due to reduced insurance distribution and private equity fees, Noah's operational income surged by 35.2% to RMB 186.0 million, achieving an operating margin of 30.3%. Cost controls played a pivotal role, leading to an 18.8% reduction in operating expenses year-over-year.
Overseas revenues reached RMB 304.2 million, up 5.0% sequentially, now making up half of the company's total revenue. The growth is backed by a 44% year-over-year increase in the overseas relationship manager team to 131 members and expanded USD-denominated assets under management by 14.2% to US$5.9 billion.
Noah maintains a robust balance sheet, with RMB 4.1 billion in cash alongside RMB 1.3 billion in liquid investments, no interest-bearing debt, and a healthy 4.8x current ratio. The company plans a dividend distribution of RMB 550 million, marking an 11% yield at current share prices, and continues its US$50 million share buyback initiative.
The company's CAPEX-light strategy and effective cost management have ensured continued profitability amidst challenges posed by the volatile global macroeconomic environment and low-interest rates in China. Noah's ongoing restructuring positions it well for sustainable growth.
