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Noah Holdings Limited (**NYSE: NOAH; HKEX: 6686**) is a leading wealth management service provider specializing in catering to high-net-worth individuals, particularly Mandarin-speaking clients. The company offers global investment and asset allocation advisory services, distributing a wide range of financial products and managing diverse asset portfolios. Its operations span wealth management, asset management, and other financial services, with a strong presence in China and international markets.

1. **Wealth Management** - Distributes investment products such as private equity, private secondary, mutual funds, public securities, and insurance products, while providing customized financial solutions and value-added services like investor education and trust services.  **[0001104659-24-039110_tm249549d1_ex99-1.htm:19]** **[0001104659-24-050790_noah-20231231x20f.htm:83]**   
2. **Asset Management** - Oversees investments in private equity, public securities, real estate, multi-strategy, and other products through Gopher Asset Management and Olive Asset Management.  **[0001104659-24-039110_tm249549d1_ex99-1.htm:19]** **[0001104659-24-050790_noah-20231231x20f.htm:83]**   
3. **Other Businesses** - Includes lending services, such as secured loans to creditworthy clients, though this segment has been strategically de-emphasized since 2019.  **[0001104659-24-039110_tm249549d1_ex99-1.htm:19]** **[0001104659-24-050790_noah-20231231x20f.htm:83]**

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| Name       | Position                          | Start Date          | Short Bio                                                                                                                                                                                                                     |
|------------|-----------------------------------|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jingbo Wang | Co-founder, Chairwoman of the Board | August 2005         | Ms. Jingbo Wang co-founded Noah Holdings Limited in **August 2005** and served as CEO until **December 29, 2023**. She has over **22 years of experience** in wealth and asset management and previously worked at Xiangcai Securities.  **[0001104659-24-051478_tm2412601d1_ex99-1.htm:12]** **[0001104659-24-050790_noah-20231231x20f.htm:166]**  |
| Zhe Yin    | Co-founder, Director, Chief Executive Officer | December 29, 2023 (expected) | Mr. Zhe Yin co-founded Noah Holdings Limited and has been a Director since **June 2007**. He is expected to assume the role of CEO on **December 29, 2023**. He has over **22 years of experience** in wealth and asset management.  **[0001104659-23-130244_tm2333848d1_ex99-1.htm:0]** **[0001104659-24-050790_noah-20231231x20f.htm:166]**  |
| Qing Pan   | Chief Financial Officer           | November 2019       | Qing Pan has been CFO of Noah Holdings Limited since **November 2019**. He previously served as COO at Gopher Asset Management and worked at Deloitte for 17 years. He is a certified public accountant in the U.S., China, and Hong Kong.  **[0001104659-24-050790_noah-20231231x20f.htm:171]**  |

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1. Given the **32.6% year-over-year decrease in revenues from mainland China in the third quarter**  **[NOAH_3410152_4]** , what specific strategies are you implementing to address the declining domestic market performance and when do you expect to see a stabilization or recovery in domestic revenues?

2. While **overseas revenues have grown significantly, accounting for over 50% of total revenue for the first time**  **[NOAH_3410152_4]** , how sustainable is this growth considering potential regulatory challenges and increased competition in international markets?

3. With the **13.8% year-over-year decrease in recurring service fees due to the aging of RMB-denominated AUA and AUM**  **[NOAH_3410152_2]** , what steps are you taking to rejuvenate your asset base and enhance recurring revenue streams domestically?

4. Operating profit remained consistent despite a **reduction in government subsidies to only RMB 37 million year-to-date**  **[NOAH_3410152_6]** ; how do you plan to maintain profitability in light of decreasing subsidies and the increasing costs associated with your international expansion?

5. Considering the **foreign exchange loss of RMB 44 million due to the USD's depreciation against the RMB during the quarter**  **[NOAH_3410152_6]** , how are you managing currency risk with your growing overseas business, and what impact could future currency fluctuations have on your financial performance?

28578124d76e750f64933bf6ebea4293deb2a905b5e9999e4f1e953023ac505c

The documents do not provide any explicit guidance metrics or forward-looking financial targets for Noah Holdings in the last four earnings calls. Below is a summary of the findings for each earnings call:

| **Earnings Call Title** | **Issued Period** | **Guided Period** | **Guidance** |
|--------------------------|-------------------|-------------------|--------------|
| Q3 2024 Earnings Call   | Q3 2024           | N/A               | No guidance provided.    |
| Q2 2024 Earnings Call   | Q2 2024           | N/A               | No guidance provided.    |
| Q1 2024 Earnings Call   | Q1 2024           | N/A               | No guidance provided.    |
| Q4 2023 Earnings Call   | Q4 2023           | N/A               | No guidance provided.    |

### Notes:
- **Guidance**: No specific metrics or forward-looking targets were disclosed in any of the earnings calls.
- **Guided Period**: No future periods (e.g., Q# #### or FY ####) were explicitly mentioned for guidance in any of the calls.

If further clarification is needed, please specify.

cca770b4483d43976e154f0f6895df9d089139faa2279832ca58de32076d093a

- **Significant growth in overseas transaction volume**, particularly in US dollar transactions, which increased about **132% year-over-year** in Q3 2023, driven by strong demand from international clients.  **[NOAH_3368550_12]**
- **Substantial growth in Gopher's assets under management (AUM)**, especially in **overseas cash management products**, indicating strong inflow of assets and potential for increased management fee revenue going forward.  **[NOAH_3368550_11]**
- **Positive client engagement at recent Black Card gala events**, with **high attendance** and clients becoming more globally minded and sophisticated, leading to optimism about revenue generation and product placements in Q4 2023.  **[NOAH_3368550_14]**

2f54c1cd11455cbefe3e7504c953288e59847351b7776239353f71b55bae5320

- **Decreasing Domestic Presence and Workforce Reduction**: The company reduced its coverage from 77 cities to 44 by the end of the year, with further consolidation to 18 core cities.  **[NOAH_3378994_3]**  Additionally, the number of domestic relationship managers decreased by **7.6% year-over-year and 12.6% sequentially** to **1,163**, indicating potential challenges in the domestic market.  **[NOAH_3378994_3]**  Executives acknowledged laying off underperforming relationship managers due to **challenging macroeconomic conditions**, which may impact future domestic growth.  **[NOAH_3378994_10]**
- **Decline in Domestic High Net Worth Clients**: The number of **Diamond Card clients decreased by 2.8% year-over-year and 1.2% quarter-over-quarter**, and the total number of Diamond and Black Card clients was **down 0.3% year-over-year**, suggesting difficulty in retaining or attracting high net worth clients domestically.  **[NOAH_3378994_8]**
- **Investment Losses Impacting Financials**: The company reported **CNY 54 million investment losses in the fourth quarter** due to mark-to-market adjustments on certain balance sheet investments, negatively affecting financial performance.  **[NOAH_3378994_11]**

103bc1d901f1c5faa4aebbf2edbd3438b354bf46902f25cbcacdf35d21ba712c

- **Domestic Revenue Under Pressure with Uncertain Recovery**: The company acknowledged that **domestic revenue has been under pressure** and it's **too early to say that revenue growth trend has come into a turning point**.  **[NOAH_3410152_9]**  The CFO mentioned that the **market has been changing drastically**, and while they hope to accelerate transformation, they need to **remain patient**.  **[NOAH_3410152_9]**  This suggests that the domestic business may continue to face challenges, potentially impacting overall revenue growth.
- **Ongoing Transition May Impact Efficiency and Financial Performance**: The company is **still undergoing a transition period** to a new sales model and is **trying to work out the best way to improve efficiency**.  **[NOAH_3410152_9]**  Executives admitted that it has been **a few quarters**, and they are still figuring out the new sales model.  **[NOAH_3410152_9]**  This could lead to operational uncertainties and affect future financial performance.
- **Conservative Approach May Lead to Missed Opportunities in Domestic Market**: Despite improved client sentiment and a **rebound in trading activities and interest** among mainland China clients, the company has not changed its **CIO house view** and continues to advise clients to invest in global beta returns.  **[NOAH_3410152_8]**  This conservative stance might result in **missing out on near-term opportunities** in the domestic A-share market, potentially affecting the company's competitiveness in capturing market share.

204eec244d106dab99d8003300e600b7baafb9ad7e3e504a68e3478c987645b1

- **Reliance on Government Subsidies with Uncertain Future**: The company reported that government subsidies for the quarter were **RMB 105.3 million**, a sharp increase of **141% year-over-year**.  **[NOAH_3368550_3]**  However, management acknowledged that the timing and amount of these subsidies are unpredictable going forward. CFO Mr. Pan stated, "I'm not sure whether or not safe to say that it will remain consistent. It's pretty hard to predict."  **[NOAH_3368550_13]**  This uncertainty poses a risk to future profitability.
- **Significant Decrease in Active Clients**: The number of active clients in Q3 was **9,489**, down **58% year-over-year**.  **[NOAH_3368550_9]**  This decline was attributed to clients adopting a conservative approach due to market conditions. A shrinking active client base could negatively impact future revenues.
- **Potential Regulatory Risks Affecting Insurance Commissions**: An analyst questioned whether regulatory changes affecting bank insurance commission rates might impact Noah's insurance brokerage commissions.  **[NOAH_3368550_14]**  Chairlady Wang responded that if regulations change to include independent brokers, "we would be -- have no choice, but to follow".  **[NOAH_3368550_14]**  Given that insurance products contributed **94% of total one-time commission fees in Q3**  **[NOAH_3368550_7]** , any reduction in commission rates could significantly affect the company's revenue.

ee8c2fe3d124b53247c8d4d70b3ce3e7a6476a61692134b8d9fef1ad6d574dbc

1. **Revenue Outlook**  
   **Q:** Is NOAH's revenue trend improving, and what will drive it?  
   **A:** Management feels it's **too early** to say if revenue growth has turned a corner due to drastic market changes.  **[NOAH_3410152_9]**  They note that growth is shifting, with more resources going into **international expansion**.  **[NOAH_3410152_9]**  They expect **U.S. dollar-denominated investments** to become more dominant and aim to accelerate transformation without deviating from their overall strategy.  **[NOAH_3410152_9]** 

2. **Client Behavior and Products**  
   **Q:** Have client behaviors changed after China's stimulus, and will Q4 revenue improve?  
   **A:** Clients are increasingly willing to engage, providing opportunities to offer **long-term asset allocation** advice.  **[NOAH_3410152_9]**  NOAH focuses on three areas: providing a **safety net** with global protection and inheritance tools; **cash management** portfolios for liquidity and inflation protection; and pursuing growth via **private equity, venture capital, and AI investments**.  **[NOAH_3410152_9]**  They are optimizing a new sales model, which they believe will reflect in future financial performance.  **[NOAH_3410152_9]** 

3. **Equity Market Participation**  
   **Q:** How does NOAH participate in rising equity sentiment, and impact on revenue?  
   **A:** Third-quarter results were largely **not impacted** by recent policy changes or the stock market rebound.  **[NOAH_3410152_8]**  Client sentiment is improving, with increased activity among **mainland China clients**.  **[NOAH_3410152_8]**  NOAH maintains a long-term view, advising clients to use **RMB assets to invest in global beta returns**.  **[NOAH_3410152_8]**  They've enhanced RMB product offerings but continue to advocate investing globally through **QDII and QDLP products**.  **[NOAH_3410152_8]** 

911942f4217aba7956af86fcceda555426c84ad2fb32bff3ab1fc522c5bf52e4

- **International expansion is becoming more dominant**, with more resources and expansion efforts going into international markets, particularly in accumulation of U.S. dollar-denominated investment opportunities, which is expected to drive future growth.  **[NOAH_3410152_9]**
- **Increased client engagement** is providing Noah with opportunities to offer more asset allocation advice and drive more client transactions, potentially leading to improved future financial performance.  **[NOAH_3410152_9]**
- **Enhanced product offerings** on the RMB side to meet increasing client interest in domestic markets, while still advising clients on global investment strategies, could lead to increased revenue and profitability.  **[NOAH_3410152_8]**

1ba15b3d339ccba6736a5cee3bb5c1b97e85bc0ec8823018dc52d0f70efbc3d7

- **Significant Return of Capital to Shareholders through Special Dividend**: Noah Holdings announced a special dividend for 2023, amounting to RMB 509 million, in addition to the regular annual dividend of RMB 509 million, effectively returning **100% of the 2023 non-GAAP net income** to shareholders. This decision reflects the company's confidence in its strong cash flows and financial position. The management stated, "we believe that it's the right time to return to our shareholders with heavier ratio in terms of special dividend".  **[NOAH_3378994_11]**
- **Improved Operational Efficiency and Increased Productivity per Relationship Manager (RM)**: The company has been optimizing its domestic network by consolidating branches and focusing on high-performing RMs. Despite a decrease in RM headcount by **11% in the fourth quarter**, the top performers' KPIs and transaction value per head have increased by **more than 30% over the past year**.  **[NOAH_3378994_10]**  This strategic focus is expected to enhance operational efficiency and drive growth.
- **Growth Opportunities in Structured Products and Hedge Funds**: Noah Holdings is experiencing an increasing penetration rate for structured products, especially those with principal protection mechanisms. In the first quarter of 2024, the penetration rate for these products has been **increasing**, and the company sees an opportunity to convert clients from cash management products to alternative investment products, including hedge funds and structured products, as interest rates are expected to trend down in the future.  **[NOAH_3378994_10]**

22a5dfe254394737c9eacc9ee88757a71425dd24944607bc6bcfd5229001d170

1. **Government Subsidies**  
   **Q:** Will government subsidies remain stable?  
   **A:** Management stated that year-to-date government subsidies have remained stable compared to last year.  **[NOAH_3368550_12]**  However, they cautioned that future subsidies are difficult to predict, as they depend on domestic RMB revenue and government fiscal situations.  **[NOAH_3368550_13]**  Increased domestic revenue might lead to higher subsidies, but there could be volatility.  **[NOAH_3368550_13]** 

2. **Gopher Fund Commissions**  
   **Q:** Why did Gopher's one-time commissions drop?  
   **A:** The sharp decline in one-time commissions to **RMB 32,000** was due to AUM growth coming mainly from USD cash management products and discretionary portfolio investments for deposits, which generate revenue through management fees rather than upfront commissions.  **[NOAH_3368550_11]**  These products don't have high subscription fees, so immediate revenue doesn't reflect the AUM increase.  **[NOAH_3368550_11]** 

3. **Transaction Volume Drivers**  
   **Q:** What's driving the increased transaction volume?  
   **A:** The primary driver was USD products, with approximately **$1 billion** in transaction value, up **132% year-over-year**.  **[NOAH_3368550_12]**  The RMB side also remained healthy, with **RMB 12.9 billion** in mutual fund transactions from corporate and institutional clients via Smile Treasury.  **[NOAH_3368550_12]** 

4. **Insurance Commission Rates**  
   **Q:** Will regulatory changes affect insurance commissions?  
   **A:** Currently, regulatory adjustments impacting bank insurance channels do not affect independent brokers like Noah.  **[NOAH_3368550_14]**  If regulations expand to include independent brokers, Noah will comply.  **[NOAH_3368550_14]**  Overseas insurance brokerage remains unaffected and has been generating more revenue since COVID.  **[NOAH_3368550_14]** 

5. **Client Investment Sentiment**  
   **Q:** What is the latest client investment sentiment?  
   **A:** Clients remain rational, seeking balanced and diversified global asset allocations.  **[NOAH_3368550_12]**  There's a shift toward comprehensive wealth management solutions, including family and enterprise succession planning.  **[NOAH_3368550_12]**  Clients focus more on asset protection, security, and global macro views like currency risk.  **[NOAH_3368550_12]** 

6. **Black Card Gala Impact**  
   **Q:** Will the Black Card Galas boost Q4 revenue?  
   **A:** The recent galas had high attendance, and management is optimistic about revenue generation.  **[NOAH_3368550_14]**  They're focusing on total client solutions rather than pushing specific products.  **[NOAH_3368550_14]**  Clients allocating more to insurance may not immediately boost transaction value, but the company is comfortable with this strategy.  **[NOAH_3368550_14]** 

9cfb42d6518f06f027088e3271dcdc7feb98889db57620825671f975cbe19d25

- **No significant improvement in domestic investment sentiment**: Despite some rebound in capital markets, NOAH has **not observed a significant shift or improvement in high net worth investors' investment sentiment** in China, which could negatively impact their domestic business.  **[NOAH_3391197_7]**
- **Decline in domestic insurance demand and lower interest rates**: There is a **slowdown in demand for domestic insurance products**, aligned with the **trending downward return or interest rates** in the domestic market, affecting NOAH's insurance business.  **[NOAH_3391197_7]**
- **Decreased first quarter revenue and domestic AUM**: NOAH reported a **decline in first quarter revenue** year-over-year due to a **decrease in recurring service fees or management fees**, primarily because of **exits from domestic portfolios** and **no new product introductions in the domestic market**, leading to a **drop in domestic AUM**.  **[NOAH_3391197_7]**

43a6485323652446e22a4840b380e9adb52f53753f8ca796bbd5f0c42b02bb62

1. **Dividend Policy**  
   **Q:** Why special dividend this year; any share buyback plans?  
   **A:** Management stated that after discussions with investors and evaluating capital needs, they anticipate strong cash flows and no immediate heavy capital needs. Therefore, they believe it's the right time to return value to shareholders with a **special dividend**. They don't currently believe **stock repurchase** would add much value due to depressed share prices not linked to fundamentals, but won't exclude buybacks in the future. This year, they prioritize cash dividend payout in the form of special dividend.  **[NOAH_3378994_11]** 

2. **Investment Losses**  
   **Q:** What's behind the CNY 54 million investment loss in Q4?  
   **A:** Management did not provide an answer to this question within the available documents.  **[NOAH_3378994_11]** 

3. **RM Reduction and Onshore Plans**  
   **Q:** Why did covered cities and RMs decline; future RM plans?  
   **A:** Management explained that the decline in **number of covered cities** to **44** and an **11%** reduction in RMs is due to network consolidation and optimization. Some RMs chose not to relocate to hub cities, and they are raising performance thresholds to improve efficiency. The company is focusing on reallocating resources to high-performing individuals, leading to an increase of over **30%** in KPI and AUM per head among top performers last year.  **[NOAH_3378994_10]** 

4. **Product Penetration and Strategy**  
   **Q:** What's the penetration rate of hedge fund and structured products?  
   **A:** Management noted that penetration rates for **hedge fund** and **structured products** are still very low. However, in the first quarter of **2024**, penetration for structured products with principal protection has been increasing. They see opportunities to convert clients' cash management products into alternative investments like hedge funds and structured products, especially as **interest rates are expected to trend down** in the future.  **[NOAH_3378994_10]** 

0bb58a2e84ec00e7103f200c3049b0d5868ea04597bbe738edb01e31ffada20a

- **Noah Holdings is strategically expanding its overseas business, expecting to complete its overseas infrastructure in 3 to 5 years, which is anticipated to drive future growth**.  **[NOAH_3391197_7]**
- **The company maintains a strong focus on long-term client value and trust, prioritizing creating long-term value over short-term gains, which can lead to sustained business growth**.  **[NOAH_3391197_7]**
- **As clients increasingly look towards overseas asset allocation, Noah is well-positioned to provide better products and services in the overseas and global markets, capitalizing on this shift**.  **[NOAH_3391197_7]**

f685aa07fcdfc3f15d85005917eb168d5c025d49ed0fbc761dfa8026ec998595

1. **Revenue Decline and 2024 Outlook**  
   **Q:** Why did first quarter revenue decline, and what's the revenue outlook for 2024?  
   **A:** Management explained that the first quarter revenue declined due to decreased **management fees** from active exits in domestic portfolios and the absence of new domestic products, which reduced **AUM**.  **[NOAH_3391197_7]**  Additionally, growth in overseas business has not fully impacted revenue due to the current **high interest rate environment**.  **[NOAH_3391197_7]**  They expect that as overseas expansion accelerates over the next **3 to 5 years**, revenue will improve.  **[NOAH_3391197_7]** 

2. **Investment Sentiment in China**  
   **Q:** Has Noah observed improvement in domestic investment sentiment?  
   **A:** Despite recent capital market rebounds in Hong Kong and Mainland China, Noah hasn't seen significant improvement in **high net worth investors' sentiment**.  **[NOAH_3391197_7]**  Building confidence is a **long-term process**, and short-term market movements haven't reversed investor sentiment.  **[NOAH_3391197_7]** 

3. **Fee Rate Decline Impact**  
   **Q:** What's the impact of declining fee rates on domestic insurance sales?  
   **A:** The decline in insurance **commission fees** has a minimal impact on Noah's business, as their relationship managers focus on **long-term client value** rather than high commissions.  **[NOAH_3391197_7]**  Fee rates for **cash management products** are naturally lower, while those for private equity and hedge funds remain **stable**.  **[NOAH_3391197_7]** 

4. **Overseas Expansion Strategy**  
   **Q:** What's the strategy for overseas business expansion?  
   **A:** Noah aims to focus resources on expanding their overseas business, expecting to build complete overseas infrastructure within **3 to 5 years**.  **[NOAH_3391197_7]**  They acknowledge the process will take time but are confident in capturing clients' needs as they shift towards **global asset allocation**.  **[NOAH_3391197_7]** 

5. **Domestic Insurance Product Focus**  
   **Q:** What products are being emphasized in domestic insurance?  
   **A:** Noah is focusing on products that satisfy **retirement well-being** and **medical needs** for clients and their parents.  **[NOAH_3391197_7]**  This shift reflects the declining **interest rate environment** and clients' long-term needs.  **[NOAH_3391197_7]** 

1ac0237c52952b354209a41b614ac4e4185ebad9770f243e91336c355703e77b

Noah Holdings Ltd (NOAH)

Financials