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Call participants
- Chairman and CEO — Zhe Yin
- Chief Financial Officer — Qing Pan
- Co-Founder and Director — Jingbo Wang
- President — Dorian Chiu
Takeaways
- Full-year net revenue — RMB 2.6 billion, broadly flat year over year, reflecting a stable topline through strategic transformation.
- Operating profit — RMB 777 million, up 22.5% year over year, with operating margin rising to 29.8% from 24.4% in 2024.
- Non-GAAP net income — RMB 612 million, grew 11.2% year over year; adjusted non-GAAP net income (excluding nonoperational items) was approximately RMB 753 million.
- Fourth quarter revenue — RMB 733 million, up 12.5% year over year; operating profit RMB 258 million, up 87.3%; operating margin reached 35.2%.
- Overseas wealth management net revenue — RMB 550 million, down 18.8% year over year, primarily due to lower insurance product distribution revenue; overseas AUA increased 8.6% to USD 9.5 billion.
- Olive (overseas asset management) net revenue — RMB 550 million, rose 26.3% year over year; overseas AUM USD 6.1 billion, up nearly four percent, accounting for 30% of total AUM.
- Glory family heritage net revenue — RMB 180 million, up 28.8% year over year, showing growth in integrated services.
- Noah Upright (domestic public securities) net revenue — RMB 570 million, up 15.9% year over year; transaction value for RMB-denominated private secondary products RMB 11.2 billion, up 107.2%.
- Gopher (domestic asset management) net revenue — RMB 690 million, down 10.3% year over year; private equity asset exits and distributions RMB 5 billion.
- Glory (domestic insurance) net revenue — RMB 19 million, down 56.5% year over year; decline expected and aligned with company strategy.
- Investment product commissions and performance-based income — Up 79.7% and 78%, respectively, year over year, underpinning margin expansion.
- Overseas revenue contribution — Rose to 49% of total net revenue for the year.
- Cash and short-term investments — RMB 5.0 billion as of December 31, 2025.
- Current ratio and debt profile — Current ratio at four-point-five times; company had no interest-bearing debt.
- Shareholder return policy — Board approved a total dividend of RMB 612 million, equaling 100% of 2025 non-GAAP net income, combining regular and special dividends for the third consecutive year; implied dividend yield about 11%, with total cash return yield approximately 12% including share repurchases.
- Headcount reduction — Decreased by 11% year over year, with stable revenues indicating rising operational efficiency.
- AI integration — AI-driven tools now support core client engagement, automated reporting, and workflows, contributing to cost reductions and productivity gains.
- Non-operational losses/provisions — RMB 120 million loss recognized under income from equity in affiliates due to mark-to-market adjustments; additional contingent expenses of RMB 50 million for legacy Camsing credit fund matters, with total provisions at RMB 505 million (about 63% of unsettled principal).
- Share repurchase — Completed buyback equaling four-point-three percent of total shares outstanding in 2025.
- Transaction value of USD private secondary products — Tripled year over year to USD 950 million.
- Overseas registered clients — Approached 20,000, increasing 13.2% year over year; active overseas clients exceeded 6,200, up 12.4%.
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Risks
- “income from equity in affiliates, we recorded a loss of approximately RMB 120 million. This was primarily driven by mark-to-market accounting adjustments related to share price volatility of a specific listed investment.”
- In line with our prudent financial policy, we recognize contingent expenses of approximately RMB 50 million. Total provisions now stand at RMB 505 million, representing about 63% of the unsettled principal.
- Insurance revenue weaknesses persisted as “Glory, our domestic insurance business recorded net revenues of RMB 19 million for the full year, down 56.5% year over year. The decline in revenue was expected and aligned with our plans and ongoing strategic transformation.”
- Management acknowledged persistent “pressure in the fourth quarter” related to “affiliated equity performance.”
Summary
Fourth quarter operating profit soared 87.3%, with operating margin reaching 35.2%, signaling expanding profitability as performance-based income materialized. Management reported that investment-driven revenues significantly outpaced insurance-related revenue, driving overall margin improvements and greater earnings resilience. The Board approved a 100% dividend payout ratio on non-GAAP net income alongside a completed share repurchase program, creating a total cash return yield of approximately 12%. Fourth quarter performance fees were sourced almost evenly between U.S. dollar-denominated Silicon Valley fund exits and domestic RMB private hedge fund products, indicating diversity in profit sources. The company’s debt-free balance sheet and high liquidity levels underpinned its third consecutive year of full dividend payout, supporting future shareholder returns and global strategy amid ongoing business transformation.
- Management described a fundamental shift to a global, AI-augmented operations model, stating “profit growth was not driven by one-off factors, but by optimized cost structure, enhanced operating efficiency and the ongoing shift in revenue mix toward investment-related businesses.”
- Dividend payments for 2025 equate to $1.32 per American Depositary Share, reflecting robust capital return versus other ADR peers.
- Operational leverage was attributed to “structural efficiency multiplier” effects from AI, as cited by management.
- Overseas business momentum was highlighted by year-over-year increases in active clients and assets under management.
Industry glossary
- AUA (Assets Under Administration): The aggregate market value of client assets for which the firm provides administrative oversight, excluding full discretionary management.
- AUM (Assets Under Management): Total market value of assets actively managed by the firm’s investment professionals, potentially inclusive of discretionary and non-discretionary portfolios.
- Carry (carried interest): A share of profits that asset managers receive from performance fees, typically as an incentive for superior fund performance.
- RMB-denominated private secondary products: Private funds or products in China allowing secondary market transactions, generally involving resales of previously issued fund interests.
- Camsing credit fund: Legacy private credit investment product subject to unresolved legal and financial risks for Noah.
- RM (relationship manager): A client-facing professional responsible for high net worth client account servicing and product advisory in wealth management.
- ADS (American Depositary Share): A U.S. dollar-denominated equity share representing foreign company shares traded on a U.S. exchange.
Full Conference Call Transcript
Zhe Yin: [Interpreted] Good day to everyone, and thank you for joining us today. 2026 marks the 21st year since Noah was established. In a market environment defined by continuous evolution and restructuring, our strategic direction has never been clearer. We remain firmly focused on serving global Chinese high net worth and ultra-high net worth clients operating through licensed local entities to provide compliance, long-term wealth management services across multiple jurisdictions. More importantly, we are completing a critical transformation evolving from a wealth management institution primarily driven by product sales into a comprehensive platform, centered on asset allocation, global structuring and AI systems. In 2025, this transformation began to yield tangible operating results.
This is not a really temporary business adjustment, but the fundamental reconstruction of our operating model. For Noah 2025 represents an important milestone. Looking at our full year results [indiscernible] quality of our profitability is improving at a faster pace than the stabilization of our revenue structure. For the full year, net revenues were RMB 2.6 billion, broadly flat year-over-year. However, operating profit was RMB 777 million, up 22.5% year-over-year with operating margin improving to 29.8% and non-GAAP net income increasing 11.2% year-over-year to RMB 612 million. Excluding the impact of nonoperating items, adjusted non-GAAP net income was approximately RMB 753 million.
What matters most at this stage is not the absolute scale of our profitability but the improving underlying structure. This profit growth was not driven by one-off factors, but by optimized cost structure, enhanced operating efficiency and the ongoing shift in revenue mix toward investment-related businesses. This reflects how our profitability is shifting from cyclical volatility towards structural stability. This is a quantitative change, not simply quantitative growth. From a business perspective, while our domestic and overseas business segments are moving at different paces, they are pulling in the same direction. Investment capabilities are becoming the primary growth engine.
Net revenues from our overseas wealth management business were RMB 550 million in 2025 and down 18.8% year-over-year, mainly due to a decline in insurance product distribution revenue. However, overseas AUA grew to USD 9.5 billion, up 8.6% year-over-year. Notably, transaction value of U.S. dollar-denominated private secondary products tripled year-over-year to USD 950 million. The number of overseas registered clients approached 20,000, up 13.2% year-over-year, of which active clients exceeded 6,200, up 12.4% year-over-year. Net revenues from Olive, the overseas asset management business RMB 550 million for the full year, up 26.3% year-over-year, mainly driven by higher management fees resulting from AUM growth. Overseas AUM reached USD 6.1 billion, up nearly 4% year-over-year, accounting for 30% of total AUM.
Net revenues from Glory Family Heritage, our integrated services business were RMB 180 million for the full year, up 28.8% year-over-year. Despite a highly competitive market environment, we achieved breakthroughs in sales through new channels. Domestically, sustained recovery in the Asia market helped improve our performance. RMB-denominated private secondary products maintained growth momentum from the second quarter onwards, which helped partially offset the impact of declining management fees from maturing RMB-denominated private equity products. Noah Upright, our domestic public securities business recorded net revenues of RMB 570 million in 2025, up 15.9% year-over-year with transaction value for RMB-denominated private secondary products reaching RMB 11.2 billion, up 107.2% year-over-year.
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