Zhitong Finance App learned that Noah Holdings Limited (NYSE: NOAH.US, Hong Kong Stock Exchange: 06686), as a leading wealth management service provider, mainly provides comprehensive one-stop global investment and asset allocation consulting services for high-net-worth investors who speak Mandarin. It recently announced its results for the first quarter of 2024, demonstrating the company's unwavering determination to transform its strategy and optimize its business in a complex economic environment, with the aim of stabilizing the foundation for long-term healthy development.

In the first quarter, Noah was steady and steady in a challenging economic environment. Uncertainty in domestic and foreign markets prompted high-net-worth individuals to invest more prudently. At the same time, it is expected that the Federal Reserve's long-term high interest rate policy may increase market pressure. Despite this, Noah continued to drive operational efficiency improvements and overseas market expansion. Along with important leadership adjustments, the first quarter's financial performance revealed positive signals.

Yin Zhe, CEO of Noah Holdings, said, “In the face of continuing macroeconomic challenges, we are actively responding through strategic adjustments, and we firmly believe this is the only path to future success. We stick to our principles. Since Noah's inception, we have never had a capital pool business to avoid mismatches of terms and the business of allocating highly leveraged funds to customers. Up to now, Noah's stock of non-standard fixed income private equity products and RMB residential real estate funds is basically zero. This strategy has shown its forward-looking and effective during the current turbulent period. Currently, the restructuring of the company's domestic wealth management business has entered a critical moment. We are integrating and optimizing operations. At the same time, the pace of overseas expansion has not abated. Although more resources and investment are needed, it will stabilize our development foundation in the long run. We look forward to these changes leading to a steady recovery in performance in the second half of the year.”

This quarter, Noah achieved net revenue of 650 million yuan, including 460 million yuan from wealth management business and 180 million yuan from asset management business. These changes reflect the company's active restructuring of its business to fuel long-term growth. Overseas business contributed 77.1% of revenue, and domestic business accounted for 22.9%, showing remarkable results from overseas strategies, with an operating profit margin of 18.7%.

In terms of international business, Noah has greatly improved the category coverage and product quality of overseas product shelves since 2022, and has adhered to the “Big White Horse Manager+ Select Flagship Products in the Segmentation Strategy” strategy. In the first quarter, overseas AUM for Noah actively managed products increased 11.6% year-on-year, accounting for 24.4% of total AUM, and overseas AUA accounting for 24.1% of total AUA, demonstrating Noah's ability to seize opportunities in the global market. The number of overseas registered customers and active high-net-worth customers increased by 17.1% and 39.6% respectively; in the first quarter, Noah's distribution of overseas investment products increased 58.5% year over year.

With the company's co-founder and director, and Mr. Yin Zhe, chairman of Gefei Asset Management Co., Ltd. taking over as CEO, Noah further strengthened corporate governance, demonstrating its commitment to the highest standards of governance. The company is continuously improving operational efficiency through restructuring its domestic business, focusing on investing in the development of core regions and cities. At the same time, strengthening the global market layout may experience short-term fluctuations, but I am convinced that this will lay the foundation for the company's sustainable development.

Ms. Wang Jingbo, co-founder and chairman of the board of directors of Noah Holdings, reiterated Noah's commitment to financial principles and compliance and the importance it attaches to investor education during the performance conference call. “With the protection of our clients' assets as our core, we select high-quality investment opportunities around the world to ensure asset safety. In the midst of market fluctuations, we are more focused on seeking the world's top investment opportunities for our customers and safeguarding their fundamental interests, which is the cornerstone of Noah's future growth.” Ms. Wang Jingbo stressed that by improving domestic operations and drawing on advanced international experience, Noah is continuously improving its international competitiveness and serving Chinese customers around the world with a more flexible attitude. At the same time, she also thanks investors for their patience and support, and looks forward to growing with customers and welcoming a more open global market.