Noah Holdings Ltd. Q4 FY2025 earnings call

1. NORA has been established for 21 years, focusing on serving high and ultra-high quality customers in China through local holding institutions, and is transforming from a wealth management institution focused on product sales to a comprehensive platform focused on asset configuration, global architecture, and AI systems. 2. In 2025, the transformation began to reflect in business results, with profit and loss ability improving, but income structure still in adjustment. 3. Investment ability is becoming the main growth engine, both domestically and overseas. 4. Building a three-level global wealth management operating system composed of three core platforms: ARC as client entry and execution platform, OLIV as investment and asset management platform, GLORY as asset structuring and risk management platform, supported by cross-jurisdiction compliance architecture with four major booking centers. 5. AI investment gradually emerged in 2025, involved in key parts such as client access, content generation, and operating process, forming new human-machine cooperation operating model, with headcount declining by 11% year-over-year while revenue remained stable, reflecting improving operational efficiency.

In 2025, total annual net income was RMB 26 billion, net profit was RMB 7.77 billion (22.5% increase), net profit rate increased to 29.8%. Non-GAAP net profit was RMB 6.12 billion (11.2% growth). Overseas wealth management business: net revenues were 550 million renminbi in 2025, down 18.8% mainly due to decline in insurance product distribution revenues; overseas AUA grew to 9.5 billion U.S. dollars (8.6% year-over-year); transaction value of U.S. dollars denominated private secondary products tripled year over year to 960 million U.S. dollars; number of overseas registered clients approached 20,000 (13.2% year-over-year), active clients exceeded 6,200 (12.4% year-over-year); Olive overseas asset management brand had full-year net revenues of 550 million renminbi (up 26.3% year-over-year), overseas AUM reached $6.1 billion (nearly 4% year-over-year, accounting for 30% of total AUM); Glory Family Heritage integrated services business had full-year net revenues of 180 million renminbi (up 28.8% year-over-year). Domestically: NOAA Uprights public securities business had net revenues of 570 million renminbi in 2025 (up 15.9% year-over-year), transaction value for RMB-denominated private secondary products reached 11.2 billion renminbi (107.2% year-over-year); Gopher domestic asset management business had full-year net revenues of 690 million renminbi (down 10.3% year over year, mainly due to lower management fees from maturing RMB-denominated private equity products; completed 5 billion renminbi of private equity asset exits and distributions in 2025); Glory domestic insurance business had full-year net revenues of 19 million renminbi (down 56.5% year-over-year, in line with strategic transformation).

1. 2026 will remain cautious but highly focused on clear strategic direction, income may still be affected by structural adjustments, but investment-related income ratio will continue to improve, profit rate is expected to remain stable or gradually improve, AI ability will prove from efficiency improvement to a larger range of business. 2. The Board has approved a dividend proposal including a special dividend bringing total payout to 100% of full-year non-GAAP net income for the third consecutive year.

1. Potential risks and uncertainties include those described in public filings with U.S. Security and Exchange Commission and Hong Kong Stock Exchange. 2. Under income from equity in affiliates, recorded a loss of approximately RMB 120 million due to mark-to-market accounting adjustments related to share price volatility of a specific listed investment. 3. Regarding legacy campus and credit fund arrangements, recognized contingent expenses of approximately RMB 50 million as several cases reached procedural milestones with certain clients opting for arbitration, total provisions now stand at RMB 505 million.

Q: Helen Lee at UBS asked about risks of foreign trade, size of long-term capital as GP, deposit fee decline, private credit distribution, transaction value and one-time commissions, client sentiment towards investment products, etc.

A: Company doesn't run related assets, advised clients on risk appetite early, sees drop in insurance sales but provides global solutions, doesn't see drop in investment demand, clients still interested in AI-related products, exposure not big, clients' experience prudent.

Q: Calvin Leong with Citi asked about AI strategy and investment, shareholder return plan.

A: NORA fully embracing AI, AI financial management departments in different places, enhanced efficiency, covered more clients, confident in future growth and rewarding shareholders.

Q: Peter Zong with J.P. Morgan asked about performance fee driving factors and sustainability, first quarter business trends.

A: Q4 carry income from U.S. dollar denominated fund exit in Silicon Valley and domestic RMB private hedge fund, difficult to forecast carry timing, seeing stabilization of client sentiment toward investments.

Q: Yiming Tang with CICC asked about increase in operating margin and drivers of investment losses from equity in affiliates.

A: Operating margin increase due to cost optimization, human resources streamlining, AI utilization; investment losses from equity in affiliates in fourth quarter due to market movements, expected to stabilize in first quarter.