Noah Holdings Ltd (NYSE: NOAH)

Noah Holdings Limited is a leading provider of wealth management and asset management services primarily targeting Mandarin speaking high net worth individuals and institutions. The company was founded in August 2005 when Noah Investment was incorporated in the Cayman Islands and later established operations in mainland China through contractual arrangements. It obtained a primary listing on the New York Stock Exchange in November 2010 and a secondary listing on the Hong Kong Stock Exchange in July 2022, becoming the first independent wealth manager from mainland China to trade on both exchanges. Noah Holdings Limited conducts its wealth management and asset management activities through subsidiaries and consolidated affiliated entities, with a strong presence in mainland China and offshore platforms in Hong Kong, the United States, Singapore and Jersey Island. The firm offers a comprehensive suite of services including investment product distribution, portfolio management, investor education, trust services and insurance referrals. Its wealth management business focuses on distributing investment products and providing advisory services, while its asset management business manages funds across private equity, real estate, public securities and multi strategy strategies. The company leverages its licensed distribution channels in mainland China and offshore entities to reach clients globally.

Noah Holdings Limited generates revenue mainly from commissions and fees associated with the distribution of investment products, recurring service fees from asset management, performance based income, and fees from value added services such as investor education and trust services. In 2024 the wealth management business contributed 69.2 percent of total net revenues, the asset management business contributed 29.5 percent, and other businesses contributed the remaining 1.3 percent. Revenue from wealth management arises from one time commissions paid by fund partners, recurring service fees, sharing of performance based income, and fees for investor education and trust programs. Asset management revenue includes one time commissions from funds managed by Gopher or Olive, recurring service fees over the investment period, and performance based income from funds where the firm acts as manager. The modest other business segment primarily consists of secured lending activities to creditworthy clients. Revenue from wealth management also includes fees from investor education programs under the Enoch Education brand and trust services offered through Ark Trust entities in Hong Kong, Jersey Island and Singapore. Asset management earnings are derived from management fees and performance based income generated by Gopher and Olive funds that invest in a broad range of asset classes.

The company operates through the following segments: domestic public securities, domestic insurance, overseas wealth management, overseas insurance and comprehensive services, domestic asset management, overseas asset management, and headquarters operations. This segmentation was adopted starting in the fourth quarter of 2024 to provide clearer insight into financial performance across distinct business lines and geographic markets. The six segments are defined by business line and geographic region, allowing the firm to allocate resources efficiently and monitor performance with greater granularity.

• Domestic public securities segment distributes mutual fund and private secondary products on behalf of third party product partners and internal asset management arms, contributed 18.8 percent of total net revenues in 2024, and is operated through Noah Upright which holds the fund distribution license from the CSRC.

• Domestic insurance segment refers clients to insurance products through Glory and earns commissions representing 1.6 percent of total net revenues in 2024, with Glory holding insurance brokerage licenses in Hong Kong and other jurisdictions.

• Overseas wealth management segment provides global investment products and advisory services via ARK Wealth Management accounting for 26.0 percent of total net revenues in 2024, and operates through offices in Los Angeles, Silicon Valley, New York and Singapore.

• Overseas insurance and comprehensive services segment offers international trust services and insurance referrals through Glory Family Heritage contributing 5.3 percent of total net revenues in 2024, and provides trust services in Hong Kong, Jersey Island and Singapore.

• Domestic asset management segment manages private equity real estate public securities and multi strategy investments through Gopher Asset Management representing 29.7 percent of total net revenues in 2024, and oversaw approximately RMB108.9 billion of assets under management as of December 31 2024.

• Overseas asset management segment manages USD denominated private equity and secondary products via Olive Asset Management contributing 16.9 percent of total net revenues in 2024, and managed approximately RMB42.6 billion of assets under management as of December 31 2024.

• Headquarters segment includes general corporate operations not allocated to the six business segments accounting for 1.7 percent of total net revenues in 2024.

Noah Holdings Limited holds a leading position in the mainland China high net worth wealth management industry, benefiting from an early mover advantage, a broad ecosystem of product and investment partners, and a diversified product mix that spans domestic and overseas offerings. The firm has built relationships with over 100 product partners and investment partners, including top tier private equity, venture capital and hedge fund managers globally. Its competitive advantages stem from proprietary technology platforms such as the WeNoah mobile application, the GIMSP automated investment management system, and strong risk management and compliance frameworks. These capabilities enable Noah Holdings Limited to deliver tailored asset allocation solutions, maintain high client loyalty, and differentiate itself from domestic peers and the private banking arms of commercial banks. Furthermore, its integrated online platforms such as WeNoah, Fund Smile and iArk facilitate seamless transaction processing and client engagement, reinforcing its market leadership.

The company serves Chinese high net worth clients residing in mainland China or overseas with investable assets exceeding RMB6.0 million, including individual clients and institutional clients such as family offices and affiliated entities. As of December 31 2024, it had approximately 17,210 active clients including mutual fund only clients, with black card clients numbering 2,277 and diamond card clients numbering 7,057, reflecting high levels of assets under advice per client. The firm also reports that its client base exhibits strong loyalty and high net worth characteristics, supporting recurring revenue streams from wealth management and asset management activities. As of the same date, the average assets under advice for black card clients stood at RMB94.9 million per client and for diamond card clients at RMB17.7 million per client, underscoring the concentration of wealth among its top tier clientele.