HONG KONG, Mar 27, 2024 - Noah Holdings Limited (the "Company," or "Noah") (NYSE: NOAH and HKEX: 6686), a leading wealth management service provider offering comprehensive global investment and asset allocation advisory services primarily for high-net-worth investors, today announced its unaudited financial results for the fourth quarter and the financial results for the full year ended December 31, 2023.
Despite a challenging year for the global wealth management industry and a sluggish post-pandemic economic recovery, Noah continued to drive revenue and non-GAAP net income growth and keep a healthy operating margin. This robust performance was driven by Noah's strategic foresight and adaptability as it transitioned from a product-focused model to a solution-driven approach. This strategic shift allowed Noah to assist in building portfolios that are resilient in the face of challenging market cycles, earning it significant trust from existing and prospective clients.
Ms. Jingbo Wang, co-founder and Chairwoman of Noah, said "Noah's relentless focus on client needs, spearheaded our transition from a product-focused model to a solutions-driven approach over the past year, strengthening our ability guide clients through this challenging market environment. The pace of our international expansion continues to increase as our clients' demand for global asset allocation grows. Our balance sheet is robust, clean and is generating sufficient capital to support Noah's overseas expansion. By enhancing operational efficiency, attracting top talent, and strategically cutting costs while simultaneously investing in new international markets, channels, technologies and the development of a global product and service matrix, we are ideally positioned to help clients traverse this market."
Noah generated total net revenues of RMB 3.3 billion in 2023, an increase of 6.3% from 2022, with RMB 2.5 billion from wealth management and RMB 766.2 million from asset management. Operating profit for the year achieved a slight increase of 0.9% YoY, while operating profit margin for the year remained at a healthy level of 33.3%.
Noah made significant progress in expanding its international presence in 2023. As demand for asset security and global diversification grows, Noah is directly aligning itself with client priorities and investing in overseas products and services. Through its enriched product offerings and enhanced cooperation with top global primary and secondary market funds and insurance companies, Noah drove increases of 10.7% in overseas AUM, 73% in overseas net revenues, 14.2% and 38.0% in overseas registered clients and active clients, respectively. As a percentage of total net revenues, overseas net revenues accounted for 43.5% in 2023.
Noah's international footprint also expanded in 2023. Following extensive research to identify overseas markets with high concentrations of HNW Chinese-speaking investors, Noah opened an office in Los Angeles. To support this expanding presence, Noah onboarded 89 overseas relationship managers as of the end of 2023, ramped up campus recruitment to ensure a steady pipeline of highly qualified graduates, offered overseas relocation opportunities to high-performing employees, and continued to recruit capable professionals from global top tier private banks in our target markets. This diverse and highly skilled professional team will better serve clients with overseas assets and deepen Noah's share of their USD wallet, allowing it to attract new clients across the globe.
The Company's performance in 2023 was widely acknowledged by the industry with numerous awards, including 'Best Independent Wealth Manager - China' by Asian Private Banker for the seventh straight year, 'Best Wealth Manager for Overseas Asset Management' by Asiamoney, and 'Best Wealth Manager' by Euromoney in 2023, underscoring its status as a leader in overseas wealth management. Recently, Noah achieved a notable milestone by receiving full membership to the Private Wealth Management Association (PWMA), becoming the first non-bank institution to be welcomed into this distinguished organization.
The Company's CIO house view and CCI model reflect this international focus and combine it with the latest asset allocation advice and a full suite of wealth management products and services. This strategic approach has further resonated with clients during recent market volatility. At the end of the fourth quarter of 2023, Diamond Card clients decreased by 2.8% from the same period last year and 1.2% sequentially. However, the number of Black Card clients increased by 8.8% year-over-year and 1.7% sequentially, reflecting a growing trend of Diamond clients upgrading to Black Card status. This underscoring the trust and loyalty clients place in Noah, especially in these challenging market conditions. Starting from 2024, the semi-annual CIO report begins issuing both domestic and overseas versions to provide clients with strengthened overseas investment advice.
Noah continued to invest in its technology stack throughout the year to improve the client experience globally and maximize internal efficiency. iNoah One Account, the Company's wealth management platform, expanded in 2023 with cash management, hedge funds, structured products, and one-click access to research and recommendations. It also gave clients access to one-click CCI portfolio reports, enhanced its CRM system to generate significant time savings for relationship managers, and streamlined insurance services in Hong Kong as it works to extend those improvements globally. These efforts were widely recognized by the industry, with Noah being named "Best Wealth Management Platform for Investments and Digital Innovation" in 2023.
In March 2024, the Company's Board of Directors approved an annual dividend of approximately RMB 509 million (USD 71.7 million) in total, equivalent to 50% of 2023 non-GAAP net income attributable to Noah shareholders, and a non-recurring special dividend of approximately RMB 509 million (USD 71.7 million) in total for 2023. Thus, the amount of total shareholder returns for 2023 will be RMB 1 billion, equivalent to 100% of 2023 non-GAAP net income, subject to final approval of AGM in June 2024. The dividends reflect Noah’s confidence in its future business prospects and commitment to returning capital to shareholders while ensuring that it has the resources necessary to fuel future growth.
Noah's full financial results for the fourth quarter and year ended December 31, 2023 are available at ir.noahgroup.com.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH and HKEX:6686) is a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for mandarin-speaking high-net-worth investors. In 2023, Noah distributed RMB 74.1 billion (US$10.4 billion) of investment products. Through Gopher Asset Management, Noah had assets under management of RMB 154.6 billion (US$21.8 billion) as of December 31, 2023.
Noah's wealth management business primarily distributes private equity, private secondary, mutual fund and other products denominated in RMB and other currencies. Noah's network covers 44 cities in mainland China, as well as Hong Kong (China), New York, Silicon Valley, Los Angeles and Singapore. A total of 1,252 relationship managers provide customized financial solutions for clients through this network, and meet their international investment needs. The Company's wealth management business had 455,827 registered clients as of December 31, 2023. Through Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy and other investments denominated in Renminbi and other currencies. The Company also provides other businesses.
For more information, please visit Noah at ir.noahgroup.com.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Noah may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Noah's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These statements include, but are not limited to, estimates regarding the sufficiency of Noah's cash and cash equivalents and liquidity risk. A number of factors could cause Noah's actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; investment risks associated with investment products distributed to Noah's investors, including the risk of default by counterparties or loss of value due to market or business conditions or misconduct by counterparties; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions globally and in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah's filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.
Contact info:
Noah Holdings Limited E-mail: in_communication@noahgroup.com
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