SHANGHAI, May 29, 2024 /PRNewswire/ -- Noah Holdings Limited ("Noah" or the "Company") (NYSE:NOAH), a leading and pioneer wealth management service provider offering comprehensive one-stop advisory services on global investment and asset allocation primarily for Mandarin-speaking high-net-worth investors, today announced its unaudited financial results for the first quarter of 2024. FIRST QUARTER 2024 FINANCIAL HIGHLIGHTS                                                                                                                            Net revenues for the first quarter of 2024 were RMB649.5 million (US$90.0 million), a 19.2% decrease from the corresponding period in 2023, mainly due to decreases in performance-based income generated from USD private equity products and recurring service fees generated from RMB private equity and private secondary products. The Company recorded a 6.0% increase in one-time commissions from the corresponding period in 2023 due to a 4.6% increase in revenues generated from the distribution of insurance products. Net revenues decreased by 18.8% from the fourth quarter of 2023, mainly due to decreases in one-time commissions.Net revenues from mainland China for the first quarter of 2024 was RMB342.8 million (US$47.5 million), a 28.8% decrease from the corresponding period in 2023, mainly due to decreases in recurring service fees generated from private equity and private secondary products. Net revenues from overseas for the first quarter of 2024 was RMB306.7 million (US$42.5 million), a 4.5% decrease from the corresponding period of 2023, mainly due to decreases in performance-based income generated from private equity products.   Net Revenues by segment is as follows: (RMB millions, except percentages) Q1 2023 Q1 2024 YoY Change Wealth management 586.9 462.7 (21.2 %) Asset management 205.2 180.3 (12.1 %) Other businesses 11.4 6.5 (42.8 %) Total net revenues 803.5 649.5 (19.2 %)     Net Revenues by geography is as follows: (RMB millions, except percentages) Q1 2023 Q1 2024 YoY Change Mainland China 482.1 342.8 (28.8 %) Overseas 321.4 306.7 (4.5 %) Total net revenues 803.5 649.5 (19.2 %)   Income from operations for the first quarter of 2024 was RMB121.5 million (US$16.8 million), a 56.4% decrease from the corresponding period in 2023, primarily due to i) a 19.2% decrease in net revenues, ii) a 10.4% increase in other compensations, mainly due to the new share-based compensation scheme granted in December 2023 and March 2024 amounting to RMB36.6 million (US$5.1 million); and iii) a 55.6% increases in general and administrative expenses, mainly due to the relatively lower base in the first quarter of 2023, which occurred immediately after the lifting of pandemic restrictions.     Income from operations by segment is as follows: (RMB millions, except percentages) Q1 2023 Q1 2024 YoY Change Wealth management 204.5 65.3 (68.1 %) Asset management 103.8 84.9 (18.2 %) Other businesses (29.4) (28.6) (2.5 %) Total income from operations 278.9 121.5 (56.4 %)   Net income attributable to Noah shareholders for the first quarter of 2024 was RMB131.5 million (US$18.2 million), a 46.2% decrease from the corresponding period in 2023, mainly due to a 56.4% decrease in income from operations, and partially offset by a 34.3% increase in interest income. Non-GAAP[1] net income attributable to Noah shareholders for the first quarter of 2024 was RMB161.2 million (US$22.3 million), a 32.7% decrease from the corresponding period in 2023.   FIRST QUARTER 2024 OPERATIONAL UPDATES Wealth Management Business Noah offers global investment products and provides value-added services to global mandarin-speaking high-net-worth investors in its wealth management business. Noah primarily distributes private equity, private secondary, mutual funds and other products denominated in RMB, USD and other currencies. Total number of registered clients as of March 31, 2024 was 457,705, a 3.9% increase from March 31, 2023, and a 0.4% increase from December 31, 2023. Among which, the number of overseas registered clients as of March 31, 2024 was 15,725, a 17.1% increase from March 31, 2023 and a 5.3% increase from December 31, 2023. Total number of active clients[2] who transacted with us during the first quarter of 2024 was 10,391, a 7.5% decrease from the first quarter of 2023, and a 15.0% increase from the fourth quarter of 2023. Among which, the number of overseas active clients who transacted with us during the first quarter of 2024 was 2,745, a 39.6% increase from the first quarter of 2023, and a 9.1% increase from the fourth quarter of 2023. Aggregate value of investment products distributed during the first quarter of 2024 was RMB18.9 billion (US$2.6 billion), a 12.4% increase from the first quarter of 2023, primarily due to a 26.4% increase in mutual fund products distribution. Among which, Noah distributed RMB8.4 billion (US$1.2 billion) of overseas investment products, a 58.5% increase from the first quarter of 2023, primarily due to a 60.6% increase in the value of mutual fund products.   [1] Noah's Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation and net of relevant tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release. [2]  "Active clients" for a given period refers to registered investors who purchase investment products distributed or receive services provided by us during that given period.     The aggregate value of investment products distributed, categorized by product type, is as follows: Product type Three months ended March 31, 2023 2024 (RMB in billions, except percentages) Mutual fund products 10.0 59.4 % 12.6 66.8 % Private secondary products  4.3 25.5 % 3.8 20.0 % Private equity products 1.3 7.8 % 1.2 6.3 % Other products[3] 1.2 7.3 % 1.3 6.9 % All products 16.8 100.0 % 18.9 100.0 %     The aggregate value of investment products distributed, categorized by geography, is as follows: Type of products in Mainland China Three months ended March 31, 2023 2024 (RMB in billions, except percentages) Mutual fund products 7.6 66.3 % 8.8 84.3 % Private secondary products  2.7 23.5 % 1.0 8.8 % Private equity products 0.4 3.2 % - 0.0 % Other products 0.8 7.0 % 0.7 6.9 % All products in Mainland China 11.5 100.0 % 10.5 100.00 %     Type of overseas products Three months ended March 31, 2023 2024 (RMB in billions, except percentages) Mutual fund products 2.4 44.3 % 3.8 44.9 % Private secondary products  1.6 30.0 % 2.8 33.9 % Private equity products 0.9 17.7 % 1.2 14.2 % Other products 0.4 8.0 % 0.6 7.0 % All Overseas products 5.3 100.0 % 8.4 100.00 %   Coverage network in mainland China included 18 cities as of March 31, 2024, compared with 68 cities as of March 31, 2023 and 44 cities as of December 31, 2023, as a result of the Company's efforts to streamline its operations in China with a focus on strengthening its operations in central hub cities. Number of relationship managers was 1,109 as of March 31, 2024, a 16.4% decrease from March 31, 2023, and an 11.4% decrease from December 31, 2023. Among which, we had 91 overseas relationship managers as of March 31, 2024, a 2.2% increase from December 31, 2023. [3]  "Other products" refers to other investment products, which includes insurance products, multi-strategies products and others.   Asset Management Business Noah's asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading multi-asset manager in China with global investment capabilities and overseas offices in Hong Kong and the United States. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities to multi-strategy investments denominated in RMB, USD and other currencies. Total assets under management as of March 31, 2024 remained relatively stable at RMB153.3 billion (US$21.2 billion), compared with RMB157.6 billion as of March 31, 2023 and RMB154.6 billion as of December 31, 2023. Mainland China assets under management as of March 31, 2024 were RMB116.1 billion (US$16.1billion), compared with RMB124.2 billion as of March 31, 2023 and RMB118.6 billion as of December 31, 2023. Overseas assets under management as of March 31, 2024 were RMB37.2 billion (US$5.1 billion), compared with RM33.4 billion as of March 31, 2023 and RMB36.0 billion as of December 31, 2023.   Total assets under management, categorized by investment type, are as follows: Investment type As of December 31, 2023 Growth Allocation/ Redemption As ofMarch 31, 2024 (RMB billions, except percentages) Private equity 132.2 85.5 % 1.0 1.4 131.8 85.9 % Public securities 11.5 7.4 % 2.7 3.3 10.9 7.1 % Real estate 6.2 4.0 % 0.2 0.7 5.7 3.7 % Multi-strategies 4.2 2.8 % - (0.1) 4.3 2.9 % Others 0.5 0.3 % 0.1 - 0.6 0.4 % All Investments 154.6 100.0 % 4.0 5.3 153.3 100.0 %     Total assets under management, categorized by geography, are as follows: Mainland China Investment type As of December 31, 2023 Growth Allocation/ Redemption As ofMarch 31, 2024 (RMB billions, except percentages) Private equity 105.2 88.7 % - 1.7 103.5 89.2 % Public securities 7.1 6.0 % 0.1 0.3 6.9 6.0 % Real estate 3.2 2.7 % - 0.7 2.5 2.2 % Multi-strategies 2.6 2.2 % - - 2.6 2.2 % Others 0.5 0.4 % 0.1 - 0.6 0.4 % All Investments 118.6 100.0 % 0.2 2.7 116.1 100.0 %   Overseas Investment type As of December 31, 2023 Growth Allocation/ Redemption As ofMarch 31, 2024 (RMB billions, except percentages) Private equity 27.0 74.9 % 1.0 (0.3) 28.3 75.7 % Public securities 4.4 12.3 % 2.6 3.0 4.0 10.8 % Real estate 3.0 8.2 % 0.2 - 3.2 8.6 % Multi-strategies 1.6 4.6 % - (0.1) 1.7 4.9 % All Investments 36.0 100.0 % 3.8 2.6 37.2 100.0 %     Other Businesses Noah's other businesses mainly include providing clients with additional comprehensive services and investment products. Operating results for other businesses also include headquarter rental income, depreciation and amortization, as well as operating expenses. Ms. Jingbo Wang, co-founder and chairwoman of Noah, commented, "We made significant progress during this quarter in repositioning ourselves to drive growth in this challenging market environment. While sluggish domestic markets had a stronger-than-expected impact on our business during this quarter, we strategically used this window of opportunity to increase the pace of our overseas expansion as client demand for global asset allocation continues to grow. Excluding performance-based income, which was elevated due to the high base effect from the same period last year, net revenues from our overseas business increased 22.4% year-over-year. Transaction value from USD denominated products also increased significantly, as did the number of overseas registered and active clients, which increased 17.1% and 39.6% year-over-year, respectively. With these tailwinds, we are rapidly expanding our global offerings and expect to roll out new products originated from Japan and Dubai later this year. While we are still in the relatively early stages of our overseas expansion, these results have reinforced our confidence in our strategy going forward." FIRST QUARTER 2024 FINANCIAL RESULTS Net Revenues Net revenues for the first quarter of 2024 were RMB649.5 million (US$90.0 million), a 19.2% decrease from the corresponding period in 2023, primarily due to decreases in performance-based income generated from private equity products and recurring service fees generated from RMB private equity and private secondary products. Wealth Management Business Net revenues from one-time commissions for the first quarter of 2024 were RMB186.4 million (US$25.8 million), a 7.4% increase from the corresponding period in 2023, primarily due to a 4.6% increase in revenues generated by the distribution of insurance products in first quarter of 2024. Net revenues from recurring service fees for the first quarter of 2024 were RMB244.1 million (US$33.8 million), an 18.5% decrease from the corresponding period in 2023, mainly due to decreases in recurring service fees from private secondary products as a result of decrease in assets under management in Mainland China. Net revenues from performance-based income for the first quarter of 2024 were RMB6.5 million (US$0.9 million), compared with RMB55.7 million in the corresponding period of 2023, primarily due to a decrease in performance-based income from certain offshore private equity products. Net revenues from other service fees for the first quarter of 2024 were RMB25.6 million (US$3.5 million), compared with RMB58.3 million in the corresponding period in 2023, primarily due to a reduction in the value-added services Noah offers to its high-net-worth clients. Asset Management Business Net revenues from recurring service fees for the first quarter of 2024 were RMB172.5 million (US$23.9 million), a 1.4% decrease from the corresponding period in 2023, primarily due to decreases in recurring service fees generated from RMB private equity products. Net revenues from performance-based income for the first quarter of 2024 were RMB7.8 million (US$1.1 million), compared with RMB27.7 million in the corresponding period of 2023. The decrease was primarily due to less performance-based income realized from private equity products. Other Businesses Net revenues for the first quarter of 2024 were RMB6.5 million (US$0.9 million), compared with RMB11.4 million from the corresponding period in 2023. Operating Costs and Expenses Operating costs and expenses for the first quarter of 2024 were RMB528.0 million (US$73.1 million), a 0.7% increase from the corresponding period in 2023. Operating costs and expenses for the first quarter of 2024 primarily consisted of i) compensation and benefits of RMB388.8 million (US$53.8 million), ii) selling expenses of RMB62.3 million (US$8.6 million), iii) general and administrative expenses of RMB71.1 million (US$9.8 million), iv) other operating expenses of RMB17.1 million (US$2.4 million). Operating costs and expenses for the wealth management business for the first quarter of 2024 were RMB397.4 million (US$55.0 million), a 3.9% increase from the corresponding period in 2023, primarily due to an increase in share-based compensation. Operating costs and expenses for the asset management business for the first quarter of 2024 were RMB95.5 million (US$13.2 million), a 5.8% decrease from the corresponding period in 2023, primarily due to a reduction in the compensation and benefits as a result of a decrease in the number of employees. Operating costs and expenses for other businesses for the first quarter of 2024 were RMB35.1 million (US$4.9 million), a 13.8% decrease from the corresponding period in 2023. Operating Margin Operating margin for the first quarter of 2024 was 18.7%, compared with 34.7% for the corresponding period in 2023. Operating margin for the wealth management business for the first quarter of 2024 was 14.1%, compared with 34.8% for the corresponding period in 2023. Operating margin for the asset management business for the first quarter of 2024 was 47.0%, compared with 50.6% for the corresponding period in 2023. Loss from operation for the other businesses for the first quarter of 2024 was RMB28.6 million (US$4.0 million), compared with an operating loss of RMB29.4 million for the corresponding period in 2023. Investment Income Investment income for the first quarter of 2024 was RMB5.2 million (US$0.7 million), compared with investment loss RMB13.6 million for the corresponding period in 2023. Income Tax Expenses Income tax expenses for the first quarter of 2024 were RMB42.7 million (US$5.9 million), a 38.7% decrease from the corresponding period in 2023. The decrease was primarily due to a reduction in the taxable income.  Net Income Net Income Net income for the first quarter of 2024 was RMB131.9 million (US$18.3 million), a 45.8% decrease from the corresponding period in 2023. Net margin for the first quarter of 2024 was 20.3%, down from 30.3% for the corresponding period in 2023. Net income attributable to Noah shareholders for the first quarter of 2024 was RMB131.5 million (US$18.2 million), a 46.2% decrease from the corresponding period in 2023. Net margin attributable to Noah shareholders for the first quarter of 2024 was 20.2%, down from 30.4% for the corresponding period in 2023. Net income attributable to Noah shareholders per basic and diluted ADS for the first quarter of 2024 was RMB1.88