- Strong liquidity position and standardized product offering to
fuel future growth
- Global expansion making progress in Hong Kong (China),
Singapore and U.S.
- Continue exploring feasible ways to improve returns for
shareholders
SHANGHAI, Nov. 16,
2023 /PRNewswire/ -- Noah Holdings
Limited (the "Company," or "Noah") (NYSE: NOAH and HKEX: 6686),
a leading wealth management service provider in China offering comprehensive global investment
and asset allocation advisory services primarily for high-net-worth
investors, hosted its 2023 Investor Day on November 14, 2023, in Hong Kong.
At the event, Noah's co-founder, Chairwoman and CEO Ms.
Jingbo Wang and other members of the
executive management team provided an in-depth review of the
Company's business and laid out its strategic priorities for the
future. Presentations focused on Noah's resilient standardized
product offering, its overseas expansion plans, and its "CCI"
strategy (composed of the Chief Investment Office, Client Strategy
Office, and Investment Product & Solution department) for
transitioning from product to solutions-driven wealth management.
Later, in a pair of panel discussions, the heads of Noah's key
business units and subsidiaries discussed the Company's advantages
in product development and client services.
Ms. Jingbo Wang, co-founder,
Chairwoman and CEO of Noah, said, "Noah has been in the wealth
management and asset management business since 2003, and has
navigated several economic cycles amidst China's rise. From day one, we have always
stuck to our bottom lines: segregation of clients' capital, no
maturity mismatches, and no cross-border movement of funds. Our
decision in 2019 to shift to a standardized product offering and
wind down all non-standard private credit products, including
domestic residential real estate funds, has served our clients well
in these turbulent times. This prudent approach, coupled with a
healthy mix of AUM, our strong balance sheet and ample liquidity,
has put us in a solid position to execute our expansion plans,
which include scaling up our overseas footprint to meet investors'
increasing demand for global asset allocation. We are also
allocating more resources to our research department and our "CCI"
strategy because our sound asset allocation advice is what makes us
the most trusted advisor to Mandarin-speaking individuals,
institutions, and family offices. As we pursue these initiatives
into the next year, our core focus will remain the same: creating
real and long-term value for clients."
Additional highlights from the Investor Day are included
below.
Strong Balance Sheet and Clean AUA
Noah has a robust cash position, with RMB
4.7 billion of cash and cash equivalents among its
RMB 12.6 billion in total assets as
of June 30, 2023. As a conservatively
financed business, Noah has a debt-to-asset ratio of 19.8% and zero
interest-bearing debt. With a strong balance sheet and ample
liquidity, the Company is well-positioned to execute on its
expansion strategy.
Noah also boasts a clean Assets Under Advisory (AUA) with no
legacy private credit or residential real estate exposure. The
Company avoided serious potential risks, having initiated its exit
from domestic residential real estate funds in 2016 and its exit
from all non-standardized RMB private credit products in 2019. This
successful transition has positioned Noah as a trusted and
responsible advisor to high-net-worth investors confronting a
complex international risk environment.
Expanding Global Footprint
Noah initiated an international expansion strategy in 2022 to
capitalize on the rapidly-growing demand for global asset
allocation among mandarin-speaking HNW clients. Noah remains on
track to hire 100 private bankers in Hong
Kong and 20 in Singapore by
the end of 2023, and it had 56 relationship managers across both
locations as of June 30, 2023. Noah
has opened up a client-servicing center in the U.S. and is in the
process of setting up operations in Dubai. Noah also more than doubled both
its number of overseas active clients and its overseas net revenue
on a year-over-year basis in the second quarter of 2023.
To bolster its global offering, Noah is not only increasing its
headcount in key international hubs, but also strengthening its
relationships with leading GPs and fund managers worldwide, having
added new hedge fund and structured product offerings to its global
wealth solution this year. Noah has also rolled out the N+ Program
to provide clients with a high-end global private banking
experience.
CCI Strategy
Noah has made significant investments in its research
capabilities, tapping into Chinese investors' demand for
increasingly sophisticated market intelligence and asset allocation
strategies. Through its "CCI" asset allocation model, the Chief
Investment Office (CIO) identifies salient macroeconomic trends,
the Client Strategy Office (CSO) creates customized investment
strategies for various segments of the clientele, and the
Investment Product & Solution (IPS) department turns these
strategies into standardized product selection strategies.
The CCI model caters to the increasingly client-centric and
solutions-driven model of wealth management, as well as clients'
increasing focus on wealth preservation, risk mitigation, global
asset allocation, and comprehensive services. Noah is upgrading the
CCI model in the second half of 2023 through the release of a wider
range of research reports, capacity-building in the investment
advisory team, and integration of CCI services into its
client-facing app.
Deep Bench of International Talent
Noah's global expansion strategy is guided by a management team
with extensive experience in world-leading financial institutions.
The Company's overseas workforce is predominantly located in
Hong Kong, Singapore, and the
United States and has grown to more than 250
professionals.
Exploring Ways to Improve Shareholder Returns
During the event, management expressed confidence in the
Company's capital structure and indicated that they will continue
exploring feasible ways to improve returns to the shareholders of
the Company.
Webcast Replay and Presentation Materials
The event, along with supporting materials, may be viewed via an
archived replay in the Event section on the Company's investor
relations website at https://ir.noahgroup.com.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH and HKEX:6686) is a
leading wealth management service provider
in China offering comprehensive global investment and
asset allocation advisory services primarily for high-net-worth
investors. Noah is a Cayman Islands holding company and
carries on business in Hong Kong as Noah Holdings
Private Wealth and Asset Management Limited. In the first half of
2023, Noah distributed RMB35.2 billion (US$4.9 billion) of investment products. Through
Gopher Asset Management, Noah had assets under management
of RMB156.9 billion (US$21.6
billion) as of June 30, 2023.
Noah's wealth management business primarily distributes private
equity, private secondary, mutual fund and other products
denominated in RMB and other currencies. Noah delivers customized
financial solutions to clients through a network of 1,375
relationship managers across 63 cities in mainland China, and serves the international investment
needs of its clients through offices in Hong
Kong (China), Taiwan
(China), New
York, Silicon Valley and Singapore. The Company's
wealth management business had 446,557 registered clients as
of June 30, 2023. Through Gopher Asset Management, Noah
manages private equity, public securities, real estate,
multi-strategy and other investments denominated in RMB and other
currencies. Noah also provides other businesses.
For more information, please visit Noah
at ir.noahgroup.com.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of
the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "confident" and
similar statements. Noah may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission, in its annual reports to
shareholders, in announcements, circulars or other publications
made on the website of The Stock Exchange of Hong Kong
Limited (the "Hong Kong Stock Exchange"), in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that
are not historical facts, including statements about Noah's beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. These
statements include, but are not limited to, estimates regarding the
sufficiency of Noah's cash and cash equivalents and liquidity risk.
A number of factors could cause Noah's actual results to differ
materially from those contained in any forward-looking statement,
including but not limited to the following: its goals and
strategies; its future business development, financial condition
and results of operations; the expected growth of the wealth
management and asset management market in China and
internationally; its expectations regarding demand for and market
acceptance of the products it distributes; investment risks
associated with investment products distributed to Noah's
investors, including the risk of default by counterparties or loss
of value due to market or business conditions or misconduct by
counterparties; its expectations regarding keeping and
strengthening its relationships with key clients; relevant
government policies and regulations relating to its industries; its
ability to attract and retain qualified employees; its ability to
stay abreast of market trends and technological advances; its plans
to invest in research and development to enhance its product
choices and service offerings; competition in its industries
in China and internationally; general economic and
business conditions globally and in China; and its ability to
effectively protect its intellectual property rights and not to
infringe on the intellectual property rights of others. Further
information regarding these and other risks is included in Noah's
filings with the U.S. Securities and Exchange
Commission and the Hong Kong Stock Exchange. All
information provided in this press release and in the attachments
is as of the date of this press release, and Noah does not
undertake any obligation to update any such information, including
forward-looking statements, as a result of new information, future
events or otherwise, except as required under the applicable
law.
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SOURCE Noah Holdings Limited