Question · Q1 2025
Helen Li of UBS inquired about the impact of Chinese tax authorities investigating overseas assets on high-net-worth client sentiment, and questioned the sustainability of recent reductions in G&A and selling expenses.
Answer
CFO Qing Pan acknowledged that clients are receiving tax inquiries, framing it as an enforcement of existing laws. An unnamed executive added that this presents a long-term opportunity for Noah to deepen client relationships through comprehensive wealth and tax planning. Regarding expenses, Qing Pan explained the reduction resulted from both improved back-office efficiency, with a 25% headcount optimization, and fewer Q1 marketing events, noting the lower marketing spend is not considered sustainable.