Operator
Good day and welcome to the NOAA Holdings Limited fourth quarter and full year 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star than 1 on your telephone keypad, and to withdraw your question, please press star than 2. Please note today's event is being recorded. I would now like to turn the conference over to Doreen Hsu. Please go ahead.
Thank you, Rocco, and good morning and welcome to Noah Holdings' fourth quarter and full year 2025 earnings conference call. Joining me on the call today are Ms. Noah Wen, co-founder and chair lady, Mr. Sander Ying, the co-founder, director, and CEO, and Mr. Grant Peng, the CFO. Mr. Ying will begin with an overview of our recent business highlights and strategic development, followed by Mr Peng, who will review our financial and operational results. After management's prepared remarks, we will open the call for questions. Before we begin, please note that today's discussion will contain forward-looking statements that are subject to risks and uncertainties, which may cause actual results to differ materially from those expressed in such statements. Potential risks and uncertainties include but are not limited to those described in our public filings with the U.S. Security and Exchange Commission and the Hong Kong Stock Exchange, nor undertakes no obligation to update any forward-looking statements except as required by law. Without further ado, I would now turn the call over to Mr. Yin. Please go ahead. Thank you.
Thank you. 更加清晰了我们专注服务全球华人高净值及超高净值的客户通过当地的持牌机构在不同的司法区提供合规长期的财富管理服务更重要的是我们正在完成一个关键的转变从以产品为销售为主的财富管理机构逐渐演变为一个以资产配置能力全球架构能力和AI系统为核心的综合品牌 2025 年正是这一转变开始体现在经营成果中的一年 这不仅是阶段性的业务调整 更是经营模式层面的根本性的重构
即盈利能力在持续改善的同时 收入结构仍处于调整的过程当中 全年实现净收入人民币26亿元 同比基本持平 经营利润为人民币7.77亿元 同比增长22.5% 经营利润率提升至29.8% 然而 non-gap净利润为人民币6.12亿元 同比增长11.2% 若剔除非经营性因素的影响 调整后的 non-gap净利润约为人民币7.53亿元 这一阶段更重要的不在于利润的绝对规模 而在于利润结构的改善 利润增长主要来自于成本结构的优化 运营效率的提升 以及收入向投资类业务的持续转型 而非依赖一次性的因素 这意味着公司的盈利能力正在从周期波动走向结构稳定 这是一种质量层面的变化 而不仅仅是数量层面的增长 从业务层面看 境内与境外的节奏不同 但方向是一致的 投资能力正在成为增长的主要引擎 在境外,ARK财富管理板块2025年实现净收入5.5亿元,同比下降18.8%,主要受保险分销收入下降的影响 与此同时,境外的AUA达到了94.9亿美元,同比增长8.6%,美元私募二级产品全年募集量同比增长3倍,达到9.6亿美元 境外注册客户数接近2万人 同比增长13.2% 其中活跃客户超过6200人 同比增长12.4% 欧雷五境外资产管理板派 全年实现净收入5.5亿元 同比增长26.3% 主要来自于AUM增长带动的管理费的提升 境外AUM达到61亿美元 同比增长4% 占总AUM的比例为30% Glory Family Heritage综合服务板块 全年实现净收入1.8亿元 同比增长26.8% 在激烈竞争的市场环境下 公司通过新渠道 实现了销售突破
A股市场阶段性的修复 带动业务表现的改善 人民币私募二级产品的募集量持续增长 部分对冲了存量 人民币私募股权产品管理费下降的一个影响 诺亚振行基金销售板块 2025年实现净收入5.7亿元 同比增长15.9% 人民币私募二级产品 全年募集量达112亿元 同比增长107.2% 各非资产管理板块 全年实现净收入6.9亿元 同比下降10.3% 主要由于存量人民币私募股权产品到期 导致管理费的下降 一级市场方面 各非2025年实现50亿元私募股权资产的退出与分配 境内荣耀保险经济板块按既定的节奏转型 全年实现净收入1900万元 同比减少56.5% 收入变化符合正在进行的战略转型 整体来看公司业务重心正在持续向投资能力和资产配置能力集中 这一趋势已经开始体现在经营数据中 也正基于这一长期的愿景 我们在过去几年对公司的整体结构进行了系统性的重建 过去几年我们完成的不是业务的扩张 而是结构的重建 今天的诺亚正在形成一个由三大核心平台构成的三层全球财富管理操作系统 并在统一的经营框架下运行 ARK是客户入口与执行平台 已在香港、新加坡和美国取得相关牌照 并在各地监管框架内开展业务 ARK承担账户管理、交易执行、产品分发及AI理财服务功能 为全球客户提供连续清晰且合规的服务体验 OLIO是公司的投资与资产管理平台 覆盖香港、美国、新加坡、日本和加拿大 具备全球资产的筛选、多区域基金设立与管理及长周期的资产配置能力 是公司长期价值创造与收入稳定的重要基础 Glory 是资产结构与风险管理的平台 覆盖中国大陆、香港、新加坡和美国等主要市场 提供保险信托及身份规划服务 通过结构安排实现风险隔离与资产保护 支持家族财富的长期传承 支撑这三层核心平台的是我们跨司法区的合规架构 该架构以四大Booking Center为核心 上海作为境内客户的人民币资产配置路口 承接正行基金销售与歌非资产管理 在香港承担跨境连接的功能 提供正确与保险的服务 是连接中国与全球的重要的桥梁 新加坡是我们海外资产配置与家族结构的中心 同时也是ASF管理的重要试点区域 美国是我们VCPE和资本市场的引擎 尤其在科技领域的投资能力 是推动未来收入增长和创新能力的关键部分 需要强调的是 所有的Booking Center 均由当地持牌主体独立经营 在各自监管框架下开展业务 跨区域合作主要限于研究和信息的支持 不涉及司法区的直接展业 这样合规的这个严格的合规边界是公司稳健发展的制度基础 2025年我们在AI上的投入开始逐步体现在经营结果中 员工人数同比下降11% 收入保持稳定 反映出运营效率的提升 从长期看 AI带来的不仅是营运效率的提升 更是经营方式的重构 AI已嵌入客户触达内容生成与运营流程等关键环节 我们在部分区域形成了新的人机协作营运模式 这标志着诺亚正从单一依赖人力扩张 转向以系统支撑规模 与服务质量同步提升的阶段
我们保持审慎并高度关注于清晰的战略方向 收入端仍可能受到结构调整的影响 但投资类的收入占比将持续的提升 利润率有望保持稳定或逐步改善 AI能力也将从效率提升走向更大范围的经营的验证 我们仍处于在转型的过程当中 但长期的经营模型的逻辑比以往任何时候都更加坚实 如果从本质来看 这一轮转型的核心不是产品形态的变化 也不是服务边界的扩展 而是从根本上增长驱动逻辑的一个从述 过去行业更多依赖理财师个人的能力的驱动 今天我们正在建立一个以资产配置能力为核心 由AI赋能理财师 由全球平台放大专业能力的人机协同的模式 2025年是这一模式的起点 也是它开始体现在经营结果上的一个时间点 转型人在推进 但我们的战略方向已经确定了 我们将继续在合规的框架内逐步稳定地推进这一长期的一个战略 谢谢大家 接下来的话我把时间交给我们的CFO潘青 为大家介绍更详细的财务的表现 Thank you Xander
Another comprehensive strategy delivered strong investment-related income increased significantly during the year, while we deliberately reduced our reliance on insurance-related revenue. This reflects our continued transition toward a more investment-led business model with improving earnings quality and great margin resilience. Second, the Board has approved our dividend proposal, including a special dividend bringing in total payout to 100% of full-year non-GAAP net income for the third consecutive year. This reinforces the consistency and visibility of our shareholder return policy. Together, these developments underscore our transition toward a more investment-driven, globally diversified and resilient operating model. For the full year 2025, net revenue was RMB $2.6 billion, broadly stable year-over-year. Operating profit increased to RMB $777 million, representing growth of 22.5%. Operating margin expanded to 29.8%, compared with 24.4% in the prior year. year. Non-GAAP net income reached R&B 612 million, up 11.2% year-over-year. This improvement was primarily driven by structural cost optimization and enhanced operating efficiency, rather than short-term factors. In the fourth quarter, revenue was R&B 733 million, up 12.5% year-over-year. Operating profit reached RMB 258 million, representing a significant increase of 87.3%, and operating margin expanded further to 35.2%. This reflects strong operating leverage as performance-based income starting to materialize, supported by a more scalable and disciplined. During the year, we continued to optimize our revenue structure. year, investment product commissions increased by 79.7 percent year-over-year, and performance-based income rose by 78 percent. At the same time, overseas revenue contribution increased to 49 percent. This shift toward investment-driven and globally diversified revenue streams has enhanced earnings quality and supported structure. To provide a clearer view of our core performances, I would like to address two non-operational items that affected our reported fourth quarter. First under income from equity in affiliates, we recorded a loss of approximately R&B of $120 million. This was primarily driven by mark-to-market accounting adjustments related to share price volatility of a specific listed investment. It is important to emphasize that this represents accounting reflection of market movements and does not impact our core wealth management operations. Second, regarding the legacy Kempstein Credit Fund arrangement, several cases reached procedural milestones this quarter as certain clients opted for arbitration. In line with our prudent financial policy, based on current benchmarks and the progress of these cases. We believe the existing provision level is appropriate and covers a substantial portion. In terms of balance sheet, as of December 31, 2025, cash and short-term investments the company carries. From a financial perspective, our AI strategy is centered on profit and heavy capital. This indicates a meaningful income and a lot of manual intervention. In our view, As of year-end, shareholders' equity stood at about R&B 9.9 billion. At our current market capitalization, the company is trading at roughly 0.57 times book value, with the operating return on equity close to 8%. When market valuation may fluctuate, our focus remains on building long-term and continued continued global expansion. A strong cash position and operating cash flow provide bold confidence. Driven by a solid performance and healthy liquidity position, the Board has approved a total dividend of 100% of 2025 non-GAAP net income. To shareholder approval at the 2026 market prices, the implied dividend yield is approximately 11%, including the RMB 50 million in share repurchase from 25, represents a couple times RMB 5.0 billion in cash and short-term investments. In short, we're rewarding shareholders for their trust when maintaining a fortress balance sheet that supports our continued global growth. In summary, revenue remained resilient throughout the year as we executed a deliberate shift towards more investment-driven income streams. At the same time, operating profit delivers strong double-digit growth, supported by structural margin expansion and continued improvements in efficiency. Our AI initiatives are now translating into tangible productivity gains, strengthening our operating leverage and scalability. In our industry-leading capital return policy, highlighted by 100% payout and the introduction of special dividends also reflects both operational strength and confidence in the sustainability of our model. So with these foundations firmly in place, NOAA has emerged leaner, more efficient, and structurally stronger. We remain fully committed to disciplined execution and the creation of sustainable long-term shareholder value. Thank you. And we will now open the floor for questions.
Operator
Thank you. We will now begin the question and answer session. To ask a question, you may press star than 1 on your telephone keypad. To ajar your question, please press star than 2. Once again, that's star than 1 if you have a question. And today's first question comes from Helen Lee at UBS. Please go ahead.
Thank you. Thank you. I have two questions. The first question is on private credit. How much is third-party private credit product has NOAA distributed today? Have you seen any client redemption in this area? How do you affect the overall risk profile of this product? One area of concern in the private credit market has been potential disruptions around AI, given that a meaningful portion of the underlying portfolio companies are software friends. NOAA maintains that investment scheme in Silicon Valley. As a GP, how much direct investment or co-investment does NOAA currently have in the private credit space? What percentage of the underlying assets are software companies, and what percentage of those could potentially be vulnerable to AI-driven disruptions, and how do you view the risk in this segment? My second question is on transaction value and one-time commission. In the fourth quarter, one-time commission declined sharply down here. Looking more closely at transaction value, both domestic and overseas insurance product sales weakened significantly. How do you see the runway trend heading into 26th? Amid the recent capital market pullback, how have clients enemed towards investment products evolved? Are clients adopting a risk of sense? and reducing their allocation to investment products. And finally, what's the current help you in terms of the investment strategy for the minor future? 自己管理的私募信贷的产品 我们在私募信贷的一些产品的话 都是以一些大牌的海外的金融机构
像Blackstone KKR这种类型的机构为主的一些私募信贷产品 其实我们在去年时候最早时候的话 就已经关注到这部分的类型资产 我们也给客户提供了很多的建议 客户的话目前我们在这部分的资产 Let me do the translation here.
First of all, we must emphasize that the company doesn't run any or only own any assets that is related to the product that Helen just mentioned. So what we've been doing at Silicon Valley is mainly invested with or partner with some key major name, that's their PE product or in some VC fund and that's why we don't see a much impact of our business because when we review the AUA here, those assets only representing a low single-digit amount of our AUA. The company has a concern on the related asset class at the very early stage. That's why we have been advising our clients to have a proper position in a very early stage. 其实我们对于老客户的保险那个覆盖避险的需求的话 其实已经有比较充分了 那么同时的话呢 对于我们也有一块新的客户持续的在那个业务上的配置
那么从那个财富管理嘛 核心其实还是那个帮客户做一个稳健的架构 所以我们一直说金字塔的三角形帮客户做架构 而且Glory的话定义是帮客户的话是做那个 在全球这样一个环境下面的话做架构的一个服务 那么客户的话在我们所感受到的客户在避险情绪上面的话对投资需求并没有下降 而且反而是由于这一个AI的那个议论的趋势的确认以后的话 我们客户的话对AI的方面的相关的投资还是有非常大的一个需要调整和配置的一个需求 And regarding the second question on our commission, so because we must emphasize that being in
the wealth management business, we are not a single product sales driven business, but we've been trying to provide a safe and structural services for our clients. So yes, we do see the drop in insurance sales, but we also believe that because a lot of of our existing clients, they have already had enough coverage from insurance products. And that's why when we've been reviewing our business under glory, what we've been emphasizing that we are providing a global solution to our clients but not just selling single insurance products. And regarding the investment incentive among our clients, we don't see any drop in demand. We understand that that's the risk in the market, however, we actually see clients still have a very high interest in investing their wealth, particularly in AI-related products, so we will still keep an eye on that and do the right advice to the client.
Thank you. So, they have to pay for 5% to pay. BlackRock, they have to pay for 5% to pay. But this time, BeRate has received the tax rate of 7.9%. They have chosen to enter 4 million dollars to pay for 4 million dollars. We are going to look at this question. First, these funds are all of the company-based funds. They have to start to pay for 4 million dollars to pay for 4 million dollars. 像Blackstone有百分之二十几就是零售的客户 我觉得零售的这个后遗症这是开始显现的 但是我们是很有经验的 因为我们在中国就碰到过这样的一些问题 那AI对私募信贷的借款方的冲击可能是真实存在的 也有一些行业的传染效应 包含宏观的地缘政治的跌 完全是要合同在执行 并不是市场的全面的恐慌 中国面对零售的客户 说好我们就开始要我们的RM的活动性超过百分之三十的
To emphasize that it's no economic cycle. So, for the recent situation where we're talking about this PE risk, those are alternative investment products related to social media assets. We can use an example from Black and the Barris to look at it as under all the normal criteria is the return should be 5%, but now it's over 93%, which is we have seen this situation in China, in mainland China. Taking early depends on their risk appetite, whether they would prefer to have a more mid-term risk appetite, or the beginning of this month, we mean their risk appetite, and we believe that our clients exceed an effect plan.
We are very understanding from the Chinese Chinese Chinese people. They have some peculiarity, because they are in the world's financial planning. So they are in the environment of the global market. They are highly-quality customers, including their travel and life plans. So we have this type of customer-based product. We have experienced this type of customer-based product. We have experienced this type of customer-based product.
And as we mentioned about our experiences with consumers and these families, right from the very beginning.
I want to talk about the insurance will not be used to sell the insurance products. If the insurance is good to sell the insurance, the insurance is good to sell the insurance. The insurance is good to sell the insurance, and the market is good to sell the insurance.
This is your second question about our sales and insurance products. I think we do admit that in the past, the company is a more product-driven selling company, which when the investment product is very welcoming, then it becomes the key drive of the company's growth. However, what we want to emphasize is today we have formed that we have our olive and glory solutions. So now it's not about what to have enough protection from insurance product. then what we could be that identity planning could be provided that we now have a very firm structure that's why our simple answer is a hard to just
Operator
direct answer say what the interest thank you thank you our next question our next question today comes from Calvin Leong with city please go ahead Thank you for your question. a very high value.
If you want to see it in front of us, you can share with us what's going on in front of us and what's going on in front of us and what's going on in front of us. So, let me explain. Thanks for taking my questions, and this is Kevin from CB. My first question is about AI. Can management share a strategy and investment on AI going forward, and how would this be reflected in NOAA's operating or financial metrics? And my second question is on shareholder return. No one's maintained a high PR ratio in 2025, and looking ahead, what is the plan and considerations on PR ratio and share-by-back?
所以分析师可能会讲 洛亚有多少RM 然后来乘以 这个RM可以做多少规模 来代表我们的成长 但我觉得今天这个模型 确实被打破了 洛亚有被AI赋能的RM 现在你可以看到 同时比如我们在新加坡 香港 然后我们在上海 我们都成立了AI的财富管理部 那这些AI的财富管理部呢 他们完全是通过系统的 AI 的方法来千人千面地覆盖我们的客户 那在新加坡我们试验了 接近这个九个月的时间 取得了非常好的成果 过去五年 就是在2025年的时候 新加坡的 AUM 到我们用 AI 之后成长了三倍 而且我们的人力是大幅减少了 可能在今天我们在新加坡 我们就不再想要去 说我们要 hire 多少个 RM 那这是一个核心点 而且我们是可以非常有信心地 最重要的是AI RM它交付给客户的产品服务是远超人类RM的,速度也是远超的,那同时呢我们在香港新加坡跟上海我们也构建了我们的叫AI加生态拓展部,就我们开始更多的去关注我们可不可以跟EAM这个MultiFamily的这个加办,然后跟他们来连接给他们提供系统,然后他们也可以成为我们这个外延的这个 I'm the群体 比如说在Glory 我们其实去年 我们在保险 信托 身份规划这些销售上 更多的是通过 跟我们连接的一些 independent financial advisor 来做的 那么也取得了 比较好的成果 那这也是AI给我们带来的 那你说 它是不是 已经全面的 对公司的 直接的收入贡献 产生了 我觉得正在开始提升 We must emphasize that we embrace AI not because this is...
In the past, our analysts, when they review our business model, they may use the method to count how many RMs we hide, the AI enhances how many people we hide. Take Singapore offices, for example. We've been adopting this AI. What we see is that our human resources health efficiency is about quality that we've been able to deliver to our clients. And apart from that, we've developed our business by reaching to the EAM on the multifamily office business so that we've been able to provide a system of glory we've hired since 2nd quarter of last year. and to answer your question maybe currently it's not about what if we've been able to use a financial indicator to show the efficiency or a really quantitative return AI however we believe that that one key factor you can look at is how many clients will be able to cover the company has a record of over 400 may not been able to cover all of them in the past but with the help of AI that has enhanced our efficiency. We believe that this is a very good opportunity that we've been able to talk to all of our customers. The companies feel very cautious about clients privacy so when doing investment planning suggestions we would be rather more prudent because we don't want to have any clients or privacy issues been a concern to the company. So at the moment we would say it's more about efficiency, but I would say the company with the Notchart that internally all our employees can use, and also the AIRM, that is the translator for that already providing service to internally and externally to clients see that AI can be done. In now promoting, we ask our RM to handpick around 100 clients. We hope shareholders return because we have confidence in driving our future growth and so industry go well and we are resources. And that's why the company believes that we have a very high confidence in continuing to return or to reward our shareholders.
I just want to add a piece of information that we actually have, since the repurchase of the total share is outstanding and in policy, I believe that we're actually a very impressive company. So that's something, as Chair David just mentioned, the same level of cash.
Operator
And our next question today comes from Peter Zong with J.P. Morgan. Let's go ahead.
Because our first year has been over, I would like to introduce our first year's business趋势, including the investment of customers' mindset, and the trading situation for our first year's business, and our first year's revenue, and the fourth year's business, and the fourth year's business. Thanks for giving me the opportunity to ask questions. This is Peter Zhang from JP Morgan. I have two questions. First is, we noticed that the fourth quarter revenue was mainly supported by the strong performance fee. we wish to understand what's the drivers behind and can assist revenue segment to be sustainable into 2026. Secondly, we wish management can help to describe what's the quality operating trend for NOAA, including client activity, client investment behavior, wealth management sales product sales volume as well as revenue trend In addition, the market has been quite volatile in first quarter, we wish to understand whether this has any implication on your equity in affiliate income items Thank you 关于carry
就是我们去年的话 那个carry的收入确实表现比较好 这也是得益于我们一方面 它后面是长期布局在私募股权上面,过去的话人民币和美元都有,然后第二部分的话是那个我们的二级市场去年的话也比较持续持软,但是对于Cary的预测性持续性的话,其实我们过去的话一直没有办法很准确的那个去预测它到底是那个怎么样的一个情况,但是从我们的业务的结构来说的话我们布局在长期的这种那个VCPE的投资和二级市场投资性业务的话 it will always be a little bit of a carry of the year. At the same time, we also have a lot of... This is why we also have a lot of aum of the year. In a year, please take a look.
Let me do a simple translation first. Honestly, it's hard to precisely predict the trend in the future. However, we must emphasize that it's about the structure. We've been focusing in investing VC and PE in previous years and believe that with this structure we've been promoting investment products. This should bring carry to the company in the future for long-term growth. And for your second question regarding in equity and affiliates, yes, we do still see some pressure during Q1. However, we must emphasize that this is only a non-operational impact, so it shouldn't be really affecting the cash flow or our operation. And for Q1 operation, if Grant would like to...
Sure. I just want to add a little bit more on the carry. I think Peter particularly mentioned about the Q4 carry income. Two-thirds of the carry actually came from an exit from a U.S. dollar-denominated fund in Silicon Valley, and the rest actually came from the domestic products, from the RMB private hedge fund. So I guess that's a pretty balanced return, but obviously, as Xander has mentioned, it's quite difficult. A particular timing of carry, but accumulated. And, yeah, I think for the first quarter, you know, obviously cannot share too much information about the first quarter. And that's exactly our point of view that we're trying to market to our clients, diversify across. Can we get your question?
Thank you. This is very helpful.
Operator
Thank you. And our next question comes from Yiming Tang with CICC.
Thank you. 您可以听到吗? My first question is that when noticed a meaningful experience in operating margins, could management provide some color on what has a notable increase in our operating margin? Moving forward, how do you view our capacity to maintain effective cost control? And my second question is, what are the primary drivers behind the significant widening of investment losses from equity in affiliates in the fourth quarter? Thank you.
So, yeah, I want to just give a little highlight on the operational margin. Obviously, one is as a result of continuing optimization in terms of cost of, you know, obviously human resources related in terms of salary and bonuses, especially mid-backoff with streamlining, as we just discussed, the utilization of AI as well as the continuing streamlining processes. So, as a result of the reduction of headcounts, you know, the total actual cost related to staffing decreased about 10 percent, with the help of, you know, obviously, carer income we're seeing a pretty healthy margin, and 30 percent is actually the operational margin we always try to aim for. So that will continue to be reflected in our strategy in 2026. And also, in terms of your question on the affiliated equity performances, we're obviously seeing a lot of pressure in the fourth able to stabilize in the first quarter.
Operator
Thank you. That concludes our question and answer session. I'd like to turn the conference back over to the company for any closing remarks.
Thank you. And thank you for everyone for joining us today. And if you have further questions about the company, please feel free to reach out to the IRSMPF, and have a good day, everyone.
Operator
Thank you. That concludes today's conference call, and we thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.
