Noah Holdings (NOAH) Q2 2024 earnings summary

Executive summary

• Underwent significant restructuring, separating domestic and international businesses and optimizing the operating model and organizational structure.

• Transitioned to new financial reporting by business units to reflect progress during transformation.

• Overseas expansion accelerated, with overseas revenue contributing 46.3% in H1 2024 and overseas AUM up 14.3% year-over-year.

• Shareholder returns enhanced via a new $50 million share repurchase program and recent dividend payouts.

• Net income attributable to shareholders was RMB99.8 million, a 68.4% decrease year-over-year, impacted by lower operating income and a loss from equity in affiliates.

Financial highlights

• Q2 2024 total revenues were RMB 621 million, down 34.3% YoY and 5.1% sequentially, mainly due to reduced domestic product distribution.

• H1 2024 total revenues were RMB 1.3 billion, a 27.5% YoY decrease.

• Non-GAAP net income was RMB 106 million for Q2 and RMB 267 million for H1.

• Operating profit for Q2 was RMB 134 million, up 10.3% sequentially; operating margin expanded to 21.8%.

• Asset management AUM stable at RMB154.0 billion as of June 30, 2024.

Outlook and guidance

• Anticipates a slowdown in business performance in coming quarters due to external challenges and internal transformation.

• Aims to grow US dollar AUA from $8 billion to over $20 billion in 3–5 years.

• Expects domestic insurance business to pick up from Q3, with strong client interest in healthcare and retirement products.

• Management expects temporary business impact from domestic branch streamlining and regulatory-driven service model adjustments but remains confident in long-term growth and global expansion.

• Corporate Actions Budget for 2024 shareholder returns to be announced with Q4 and full-year results.