Noah Q2 2025 Earnings Report

Noah EPS Results

• Actual EPS: $0.37
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Noah Revenue Results

• Actual Revenue: $87.87 million
• Expected Revenue: $86.31 million
• Beat/Miss: Beat by +$1.56 million
• YoY Revenue Growth: N/A

Noah Announcement Details

• Quarter: Q2 2025
• Date: 8/27/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, August 27, 2025
• Conference Call Time: 8:00PM ET

Noah (NYSE:NOAH) Holdings Limited, together with its subsidiaries, operates as a wealth and asset management service provider with the focus on investment and asset allocation services for high net worth individuals and enterprises in Mainland of China, Hong Kong, and internationally. It operates through three segments: Wealth Management, Asset Management, and Other Services. The company offers investment products, including domestic and overseas mutual fund products, private secondary products, and other products; customized value-added financial services, such as investor education and trust services, as well as insurance brokerage services; and insurance products. It also provides onshore and offshore private equity, real estate, public securities, multi-strategy, and other investment products, as well as lending services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

Noah Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: In Q2, Noah delivered net revenues of RMB 630 million and non-GAAP net income of RMB 189 million, up 78.2% year over year, while H1 non-GAAP net income reached RMB 358 million.
• Positive Sentiment: One-time commissions from investment products hit their highest level in years—accounting for over 30% of total onetime commission revenue—and investment product revenue rose 92% year over year.
• Positive Sentiment: Overseas business now represents 47.1% of net revenues (RMB 297 million in Q2), with a 34.5% increase in overseas relationship managers and AUA up 6.6% to US$9.1 billion.
• Positive Sentiment: Noah has partnered with Coinbase to launch a stablecoin yield fund, marking its first digital asset product and underpinning further growth in this emerging asset class.
• Positive Sentiment: H1 operating expenses fell 11.2% year over year (OpEx ex-compensation down 9.3%), driving a 27.9% operating profit margin—a significant improvement from 20.2% a year ago.

Presentation

[Operator]

I would now like to turn the conference over to Doreen Chew, Senior IR Director. Please go ahead.

[Doreen Chew, Senior IR Director at Noah Holdings]

Thank you. Good morning, and good afternoon, and welcome to Noah's Second Quarter and half year twenty twenty five earnings conference call. Joining me today, we have Ms. Wang Jinbo, the Co Founder and Chairlady Mr. Sandra Ying, Co Founder, Director and CEO and also Mr. Greg Tang, CFO. Mr. Yin will begin with an overview of our recent business highlights, followed by Mr. Peng, who will discuss our financial and operational results. They will all be available to take your questions in the Q and A section that follows.

[Doreen Chew, Senior IR Director at Noah Holdings]

Please note that the discussion today will contain forward looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from those in our forward looking statements. Potential risks and uncertainties included, but are not limited to, those highlighted in our public filings with the SEC and the Hong Kong Stock Exchange. Noah does not undertake any obligation to update any forward looking statements, except as required under applicable law. With that, I would now like to pass the call over to Sandra. Mr. Yin, please go ahead.

[Zhe Yin, Co-founder, Director, CEO & Chairman of Gopher Asset Management at Noah Holdings]

Okay. Good morning to everyone, and thank you for joining Noah's second quarter twenty twenty five earnings conference call.

[Doreen Chew, Senior IR Director at Noah Holdings]

In the 2025, global financial markets experienced significant volatility with the Trump administration's tariff policies and geopolitical risks moving from background noise to center stage. Leveraging the forward looking insights from Noah's CIO report for the first half of the year, our clients achieved strong investment returns with over 95% of our Black Card clients realizing cumulative gains by the end of the quarter. After several years of developing and expanding our overseas business, we have established a comprehensive robot product matrix, including VC and PE funds, private credit funds, infrastructure funds, hedge funds, robot mutual funds, Hong Kong and U. S. Equity structured products and wealth inheritance solutions such as insurance trust and residency planning.

[Doreen Chew, Senior IR Director at Noah Holdings]

These diverse offerings have all been fully integrated, providing clients with one stop allocation capabilities and investment expertise needed to solidify their asset base and enhance wealth resilience amid uncertainty. We are pleased to report that a strong operational and financial performance during the second quarter. Net revenues reached RMB630 million with income from operations increasing by 20.2% year over year and non GAAP net income surged 78.2% year over year and 12% sequentially to RMB189 million. Net revenues for the 2025 were RMB1.2 billion, generating non GAAP net income of RMB358 million. Our revenue mix continues to increase, driven by growing investment product revenue.

[Doreen Chew, Senior IR Director at Noah Holdings]

Specifically, one time commission from investment products have reached the highest point in recent years, making up over 30% of onetime commissions revenue. Domestically, our strategy remains focused on enhancing relationship manager incentives, reactivating dormant clients and acquiring new clients. Overseas, we continue to expand our relationship managers teams and grow our local client base. In the first half, we added six twenty seven new qualified investors as clients. We continue to make progress in optimizing internal organization, with each business unit building an end to end process that stems from product development to sales.

[Doreen Chew, Senior IR Director at Noah Holdings]

In addition, we are driving cross selling activities through enhanced client service and increasing overall client activity and engagement. We remain committed to investing in our platform and capabilities, leveraging AI to empower relationship managers and clients while boosting client sophistication. Concurrently, we are advancing the development of our booking centers and digital platforms to enhance cross border synergies for client outreach, product integration, digital infrastructure and risk controls, laying a solid foundation for sustainable growth future growth. I will now dive into the performance and operations of each business unit. Net revenues from overseas reached RMB297 million in the second quarter, accounting for 47.1% of total net revenue, with net revenues from overseas investment products continuing to generate solid growth.

[Doreen Chew, Senior IR Director at Noah Holdings]

Our team of overseas relationship managers expanded to 152 by the end of the quarter, a year on year increase of 34.5%. The ongoing enhancements to our capacities and deepening expertise drove strong investment returns for clients during the quarter, supporting solid growth in both overseas transaction value and net revenues. Net revenues from overseas wealth management were RMB129 million during the quarter, down 14.1% year on year due primarily to our ongoing strategic focus on investment products, which resulted in a decline in revenue contribution from the distribution of insurance products. Overseas AUA grew 6.6% year over year to US9.1 dollars and now accounts for 27.6% of total AUA, primarily driven by increase in distribution of private equity funds. Transaction value of U.

[Doreen Chew, Senior IR Director at Noah Holdings]

S. Dollar denominated private market products in the first half of the year increased by 70.3% compared to the same period last year, reaching US765 million dollars Within U. Dollar private secondary products, transaction value of hedge funds and structural products more than doubled year on year to US424 million dollars We continue to expand and deepen our relationship with reputable product and investment partners globally and have now become rapidly one of the top three distribution channels in Asia for flagship products from leading GPs such as Aris and Hamilton Lane. As for the second quarter, the number of registered overseas clients now exceeded 18,900, a year on year increase of 13%, with the number of active clients now over 3,600, a year on year increase of 12.5%. Net revenues from overseas asset management during the second quarter were RMB108 million, up 11.5% year over year, driven primarily by growth in AUM and recurring service fees.

[Doreen Chew, Senior IR Director at Noah Holdings]

Overseas AUM was dollars US5.8 up 7.4% year over year and accounting for 28.5% of total AUM. Net revenues from overseas insurance and comprehensive services during the quarter were RMB59 million, an increase of 91% year over year. The Hong Kong insurance market remains highly competitive. However, our core to the clients' large policies, strategy and cost effective customized products for major clients is delivering strong results in this environment, with average overseas insurance policy size continuing to increase. Additionally, Gori's team of commission only brokers and external channels has already generated over RMB20 million in revenue, injecting such vitality into new client acquisition.

[Doreen Chew, Senior IR Director at Noah Holdings]

Net revenues from Mainland China during the quarter were RMB333 million, a year on year decrease of 1.3%, but a sequential increase of 7.2%. The recovery in the Asia market this year has driven a substantial improvement in the performance of our domestic business. Renminbi denominated private secondary products continued to gain strong growth momentum in the second quarter, which partially offset a decline in recurring service fees from existing RMB private equity products. Notably, the rebound in the Asian market increased investor confidence in the secondary market and is fueling growth in our domestic public securities business. Net revenues from domestic public securities during the quarter were RMB132 million, a year over year increase of 12.8%.

[Doreen Chew, Senior IR Director at Noah Holdings]

Transaction value of renminbi denominated secondary products continued a strong momentum with transaction value for private secondary products in the first half of the year reaching RMB6.1 billion, a significant year over year increase of 185.3%. The rebound in the Asian market provides a favorable environment for renminbi denominated secondary products, enabling us to achieve continued breakthroughs in this business. Net revenues from domestic asset management during the quarter were renminbi 177,000,000, down 10.6%. This was due to lower recurring service fee from existing renminbi denominated private equity products. In the primary market, Gopher focuses on facilitating excess and distribution of asset managed by the fund, where it record RMB800 million in excess related to private equity products.

[Doreen Chew, Senior IR Director at Noah Holdings]

Net revenues from domestic insurance during the quarter were RMB716 million, a year over year decrease of 38.7%. This was a result of our strategic decision to reduce the promotion of domestic insurance products. Looking ahead to the second half of the year, we will focus our efforts on the following three strategic priorities. First, we will concentrate on high net worth clients and actively expand our customer base. We are proactively entering mature financial markets such as United States, Canada and Japan to serve global Chinese clients.

[Doreen Chew, Senior IR Director at Noah Holdings]

In these established markets, we will adopt a business partner cooperation model to attract more talent and broaden our client base. Our positioning is clear to be a wealth management platform delegated to certain global Chinese high net worth investors. Second, we will continue to enrich our global product offerings across various categories to meet the diverse needs of our clients. Our robust product portfolio enables us to provide more competitive investment solutions. In the primary market, we will expand our ecosystem partnership to develop customized investment solutions and exclusive opportunities.

[Doreen Chew, Senior IR Director at Noah Holdings]

In the secondary market, leveraging our global investment research capabilities, we will carefully select high quality strategies from top tier managers to enhance our ability to deliver robust asset allocation solutions. We will also actively explore new opportunities in digital assets, pushing the boundaries of wealth and asset management to provide clients with a more comprehensive and cutting edge investment experience. Today, we are also pleased to announce that we have selected Coinbase Asset Management as a strategic partner to establish OLIFT's stablecoin yield fund. We shall extend our digital asset related product lines and and collaborate with licensed compliant institutions to capture opportunities in this rapidly growing emerging asset class. This initiative aims to open new growth engines for our clients.

[Doreen Chew, Senior IR Director at Noah Holdings]

Global asset allocation strategies with future expansion opportunities in compliance digit asset fund management. Third, we remain committed to enhancing operational efficiency while pursuing growth. We continue to integrate AI across our operations to empower relationship managers, clients and middle and back office staff. These initiatives have significantly improved the client experience and reduced operational costs. Amidst the vast opportunities presented by the global expansion of Chinese enterprise, we aspire to have Noah's Ark present wherever there are Chinese clients around the world.

[Doreen Chew, Senior IR Director at Noah Holdings]

I will now pass over to our CFO, Gren, to go over our financials in more details. Thank you all.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

So warm greetings to everyone joining us today. I'm very excited to announce our financial performance in the 2025 that reflects steady progress and resilience across our operations. Supported by revenue growth, disciplined cost management and investment income, we achieved non GAAP net profit RMB189 million. This represented 78.2% year over year growth and a 12% sequential increase.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

For the 2025, non GAAP net income totaled RMB358 million, a 33.9% year over year increase. More importantly, management is very encouraged by the structural improvements in our operations this quarter. We achieved substantial growth in revenues related to investment products with a 92 year over year increase and a 30.6% sequential rise in that category, Driven by clients' more uplifting investment sentiment, it also attributed to wider selection of quality investment solutions that were provided to our clients, both onshore and offshore. In terms of transaction values, RMB denominated products recorded a 35% year over year growth and 8.3% sequential increase, while USD denominated products grew 5.2% year over year and 3.8% sequentially. As a result, our total transaction values reached RMB17 billion, reflecting a 17.7 year over year increase and a 5.4% sequential rise.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

For the first half, commissions from investment products grew by 95.9% year over year with transaction values for RMB denominated private secondary products stood out growing by 185.3 year over year to RMB6.1 billion. Similarly, S. Dollar private secondary products, excluding cash management products, grew by impressive 282.2% year over year to US424 million dollars despite volatility in U. S. Equity markets.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

So in this context, one time commissions contributed million in the second quarter, marking a 14% year over year increase. Recurring service fees and performance based income remained steady at RMB406 million and RMB23 million, respectively. Total net revenue reached million for the quarter, reflecting a 2.2% year over year increase and a 2.4% sequential growth. Breaking revenue down by region, overseas net revenues continues to drive growth, recorded RMB601 million in the 2025. Not only did it account for 48.3% of total net revenues in the first half of the year, but over 85% of newly generated revenue that was originated from offshore products.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

In the meantime, we continue to stay cautious of costs and expenses. Total operating costs expenses for the first half were RMB897 million, down 11.2% year over year. Key reductions were achieved in managing a more optimal head headcount structure, while maintaining investments in growth area. Total OpEx excluding total compensation benefits declined by 9.3% year over year. This efficiency enabled us to achieve an operating profit of million for the first half, up 35.8 year over year, with an operating profit margin of 27.9% compared to 20.2% in the same period last year.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

For the second quarter, operating profit were RMB161 million, with operating margin of 25.6%. Net income for the first half was RMB322 million, representing a 39.4% year over year increase despite the booking of about million in withholding taxes related to dividends distributed during this period. As of 06/30/2025, total AUM stood at billion, reflecting some pressure from redemptions of RMB denominated products. However, U. S.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

Dollar denominated AUM grew by 7.4% year over year to RMB5.8 billion dollars while U. S. Dollar denominated AUA increased by 6.6% year over year to US9.1 billion dollars demonstrating our ability to continue to capture share of client U. S. Dollar investment allocations.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

At the end of the second quarter, our overseas new client base continued to grow with a number of overseas registered clients increasing by 13% year over year and 4.2% sequentially. The total number of overseas diamond and black card clients now exceeds sixteen forty. Overseas active clients reached 3,650, up 12.5% year over year and 7.9% sequentially. Notably, we saw meaningful growth in our new golden clients that is qualified investors or qualified professional investors by definition increased by 627% within the first six months of this year. Although it takes time for brand new clients to mature into the core client group, namely Black and Diamond client.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

We're very confident that with a continuous global expanding mindset, the company is steadily gaining new market share worldwide. Our balance sheet remains sound. As of 06/30/2025 combined cash and short term investments totaled RMB5.4 billion and we continue to carry zero interest bearing liability. Additionally, net investment gains for the quarter exceeded million, reflecting the realization of potentials from our past strategic investments. In closing, the 2025 represents a meaningful step forward for our business in the right direction, marking important milestone of restructuring efforts and confirming the positive impact.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

Enhancing shareholder returns remains our priority and I'm pleased to share that we have returned over RMB1.8 billion cumulatively to shareholders through dividend payments, share buybacks for the past three years and the Board and management is committed to discipline capital distributions to our shareholders in the long run. Moreover, with a book value per ADR of US18.35 dollars per share, we believe that the current share price still remain undervalued offering shareholders an attractive opportunity. Looking ahead, we remain focused on enhancing shareholder value, driving sustainable growth and achieving long term success. Thank you, shareholders for your trust and support. We'll now open the floor for questions.

[Operator]

Thank you. We will now begin the question and answer session. Our first question today will come from Helen Li of UBS. Please go ahead.

[Heqing (Helen) Li, Equity Research Analyst at UBS]

Let me translate my question. This is Helen from UBS. I've got two questions. The first is, could you please provide more details on the private credit digital yield front, including the strategic considerations behind this move, the maintenance fee structure and client interest in such products? Additionally, are there any other plans in the cryptocurrency field besides the stablecoin yield fund?

[Heqing (Helen) Li, Equity Research Analyst at UBS]

My second question is, what's the CIO house view regarding client asset allocation? How would you describe the current client investment appetite, particularly the demand for offshore products compared to onshore products? Do you anticipate a strong growth momentum in investment product distribution to continue into the third and fourth quarters? Thank you.

[Doreen Chew, Senior IR Director at Noah Holdings]

Sure. Thank you, Sender. So this is it's the first cooperation in the market to launch this stablecoin UFund. And as we mentioned in our CIL report, indeed, from last year to this year, in our CIL report, report, we have been emphasizing the importance to for our clients to distribute assets in stablecoin, this new asset class for two years now. And that's why we have been proud to announce that we've been partnered with Conbase to launch our first fund.

[Doreen Chew, Senior IR Director at Noah Holdings]

And having said that, we still emphasize that the prudency that we needed to maintain being a wealth management company, and that's why the partner we've chosen this time is Convey. And then in terms of the fee structure, we would just say it's the same as any other investment products we have been distributing to our clients. That's not much special between the different types of products. Regarding your questions about the investment products that clients may have a high interest. So what we've seen is we have seen in the first two quarters this year, we saw that clients are having more interest in deploying the asset and wealth into investment products.

[Doreen Chew, Senior IR Director at Noah Holdings]

The reason behind this, we believe that in the previous years during 2020 to 2022 because of the geopolitical situation and other noises in the market, investors become more cautious, but that they are also learning as well. So after a few years of learning and adapting to the current environment, we believe that clients are now more confident and clear about what they should buy and they still need to deploy the asset because after all, wealth management should be a long term planning instead of just very defensive investment or very short term investment. So when clients' incentive is going upward, domestically, mainly it's driven also by the Asian market. But being a very prudent organization, we have been also observing the secondary markets in China if there's an overheat in the moment because of it's been driven by money flows, obviously. And then, however, overseas, overseas, we've seen more options.

[Doreen Chew, Senior IR Director at Noah Holdings]

And particularly, we have seen the opportunity among the overseas Chinese because they got wealth in the overseas market, but they may not get as good service as they could have in the domestic market. And particularly, they may lack of information in different investment products. So what Noah's been doing, we partnered with all these prominent GPs in globally. And that we've been trying to provide more information to our clients when they are trying to deploy the asset. And as we've emphasized in our CIO report, it's always about balance between growth, return and the risks.

[Doreen Chew, Senior IR Director at Noah Holdings]

And we will always follow our principle as listed in CIO report. Now this is the investment triangle that we try to use the different assets to balance recent return. And particularly, the new FIM that we have introduced this round in CIO report is a deflation caused by technology. And that we believe that that's the major reason why we have been advising our clients to invest in AI or con based related investment products. So from our Chairlady, she emphasized that con base in this world, we must emphasize that the risk could still be very high.

[Doreen Chew, Senior IR Director at Noah Holdings]

High. And that's why being a responsible wealth management company, we've been emphasizing in compliance while we are looking at innovation. So this round, we've chosen the partner, which have been, widely agreed on their compliance standard. And as mentioned in CIO report, we have been suggesting our clients to invest around 1% to 5% of their asset total assets to be in the CONVACE related product. And most importantly, we believe that Noah could be the bridge to be the bridge to provide compliant products in this area.

[Doreen Chew, Senior IR Director at Noah Holdings]

And last but not least, not only this one product that we launched that I just mentioned, going forward, we will continue to study and going to launch more related products. It depends on our clients' needs. We believe that by by time, they will learn more about this asset class, and they should have more demand in this area.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

Helen, did we answer your question, Helen? Next question, please.

[Operator]

Our next question today will come from Peter Zhao of JPMorgan. Please go ahead.

[Nanxin Peter Zhao, VP - Product Design at JP Morgan]

Thanks for giving me the questions giving me the opportunity to ask the questions. This is Peter from JPMorgan. I have two questions. First is, we wish to understand what's the third quarter operating trend for Noah. We have seen there's strong pickup in domestic investment sentiment lately.

[Nanxin Peter Zhao, VP - Product Design at JP Morgan]

We wish to understand what Noah has observed about the investment sentiment on your platform and the wealth management product transaction volume trend in third quarter to quarter to date and how is this compared to second quarter? My second question is about the overseas expansion. We noticed that management has mentioned the plan to expand into The U. S, Canada and Japan. We wish to understand how the progress so far and what you expect in second half of this year and next year?

[Nanxin Peter Zhao, VP - Product Design at JP Morgan]

And when do you expect this new market can meaningfully contribute to your client growth and revenues? And we also wish to understand how this overseas expansion plan will have impact on our operating expense trend going forward. Thank you.

[Doreen Chew, Senior IR Director at Noah Holdings]

So Peter, regarding your question about investment sentiment looking forward to the third quarter. And yes, we have to say that during different client different events that we've been organizing when we met with clients, we have seen strong interest from them. And unlike in the previous period, they would be more prudent and prefer lower risk return lower risk product. We have seen that because of the Asian market and also because of The U. S.

[Doreen Chew, Senior IR Director at Noah Holdings]

Interest rate environment, they are now showing more interest in investing in different types of investment products. And also, when we talk to clients, one of the reflection that we've been collecting is that we've been able to provide more and more diversified products with different GPs. And that is because we have set up the product center in The U. S. A, and that's why we've been able to contact and have connection with more reputable GPs from Broccoli.

[Doreen Chew, Senior IR Director at Noah Holdings]

And that's why we've been able to provide a better product matrix to our clients. However, we must emphasize that being a wealth management company or what the core of wealth management should be long term return. So it's not about any short term environment changes or client feelings about the market or any sentiment driven investment. So emphasize on long term return instead of just selling products according to market sentiment. So about our global strategy, and as mentioned by Chairlazy, we have been developing our overseas market over the last three years.

[Doreen Chew, Senior IR Director at Noah Holdings]

And what has been achieved must be the product metrics. And being a wealth management company, this is one of the very important criteria that we have already achieved. So next step, we would say, is more about branding. When we talked about branding, it's we what we've seen is that we serve Chinese globally. But then currently, we don't see much of other organizations being able to serve Chinese across different legal jurisdiction.

[Doreen Chew, Senior IR Director at Noah Holdings]

And that we believe is going to be our very committed target going forward. And in terms of the strategic planning, so in we have three booking centers in The U. S, Hong Kong and Singapore. And also for the non booking centers such as Singapore such as Japan, Canada that we have already mentioned previously, it's going to be the asset management for the clients using the oldest blank. So we believe that Noah's strength is we have trust across with our clients.

[Doreen Chew, Senior IR Director at Noah Holdings]

And with this trust, we have seen that some of our clients from domestic markets are already moving to overseas market. And that should be our strong client base when we're developing our overseas market.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

Okay. So I'll take the third question on OpEx, Peter. So we basically have reached a stage of rather comfortable structure in terms of frontline and mid back office. I think we're pretty much after a couple of years of transaction, a transition period, we're actually pretty comfortable with the mix of frontline and mid back office. Secondly, also the balance between fixed salary and also variable costs, both onshore and offshore.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

We probably are looking to maintain that structure, but obviously not excluding some short term spikes when we as Chairlady and CEO, Zander mentioned, with international expansion, we'll probably get on new talents in new markets or new business segments. But I think overall, the big picture comp and benefits wise, we're pretty comfortable. In terms of selling and marketing expenses, obviously, we have seasonality. We typically are a little bit slower after spring festival than summer vacation, but we have traditionally busier schedules coming up in the third quarter, obviously towards the end of the year as well. But I think on the annual basis, I'm also pretty comfortable in terms of maintaining a similar range of operating margin. Peter, does that answer your question?

[Nanxin Peter Zhao, VP - Product Design at JP Morgan]

That's very clear. Thank you.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

Okay. Thanks.

[Operator]

The next question will come from Xian Zhongjian of CICC. Please go ahead.

[Xueqing Zhang, Analyst at iQIYI]

I will translate my questions. I have two questions. The first one is other operating expenses decreased over 80% year over year and income from equity affiliates increases to over million. These changes affect the net income. Could you please explain the reasons behind and future change?

[Xueqing Zhang, Analyst at iQIYI]

The second question is the cash balance remains high at billion. So do you have any dividends planned? Thank you.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

Sure, Ms. Chen. I'll take the question for the two fluctuations. So basically, the overall impact, especially the RMB47 million actually comes from some of the strategic investment portions that we have as the CoGP investment in the past. So some of the companies actually became successful listed.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

So the total market value in the fund actually has a markup. So that quarter actually will have a pretty positive impact. Hopefully, it doesn't reflect in the future. But it seems that from the company's current performance, we're optimistic that we'll maintain a rather strong performance and obviously feedback to our balance sheet and P and L. In terms of dividend scheme, I think the only thing I can say on behalf of management board, as we have mentioned in the earnings release that we're very committed to returning some of the obviously operational results to our shareholders and we have cumulatively distributed a rather large amount, I think probably ranking very, very high in Chinese ADR companies that cumulatively RMB1.8 billion to our shareholders and obviously another full payout of twenty twenty four's net profit.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

So I believe that in 2025, obviously, I can't say this prematurely, but we're pretty confident that we probably will be returning or distributing our profit operational results to our shareholders on a very similar scale this year, at least in the foreseeable future.

[Xueqing Zhang, Analyst at iQIYI]

Thank you. Very clear.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

Thank you.

[Operator]

At this time, we will conclude our question and answer session. And I'd like to turn the conference back over to management for any closing remarks.

[Qing Pan, Group Chief Financial Officer at Noah Holdings]

Zander, anything to add? Okay. Well, thank you very much. Thank you very much, everybody, and hope to hear from you in the subsequent calls. Thanks.

[Doreen Chew, Senior IR Director at Noah Holdings]

Thanks, everyone. And please feel free to contact IR team if you have any further questions, and we will be conducting MDRs these few weeks. So feel free to reach out if you want to talk to any of us. Thank you very much for today.

[Operator]

The conference has now concluded. Thank you for attending today's presentation and you may now disconnect your lines.

Participants

Executives

• Doreen Chew, Senior IR Director
• Zhe Yin, Co-founder, Director, CEO & Chairman of Gopher Asset Management
• Qing Pan, Group Chief Financial Officer

Analysts

• Heqing (Helen) Li, Equity Research Analyst at UBS
• Nanxin Peter Zhao, VP - Product Design at JP Morgan
• Xueqing Zhang, Analyst at iQIYI