Noah Holdings' operating profit margin reaches a multi-year high in the first quarter, with global expansion entering a substantial operational phase

Noah Holdings (NYSE: NOAH), a leading Chinese wealth management firm, announced its financial results for the first quarter of 2026, with operating profit margin reaching 37.8%, one of the highest levels in recent years, despite a seasonal drop in net revenue. The company's profitability continues to improve.

Revenue under pressure, profitability improves against the trend

The net revenue for the first quarter was 626 million RMB, a year-on-year increase of 1.8%, but a sequential decrease of 14.7%. Management explained that the sequential decline is mainly attributed to two factors: one, a further narrowing of contributions from the insurance business; and two, performance fees from overseas private equity products are typically recognized at the end of the year, resulting in seasonal pressure in the first quarter.

Operating profit reached 236 million RMB, a significant year-on-year increase of 27.1%, with the operating margin rising to 37.8%, demonstrating the company's significant cost control success against the backdrop of slowing revenue growth. Non-GAAP net profit was 134 million RMB, marking 62 consecutive quarters of profitability since the company went public. Management expects the full-year operating margin to remain within a healthy range above 30%.

Domestic business: Dual drive of public and private secondary markets

The domestic business shows a rising trend in both volume and price. In the first quarter, the number of active clients reached 10,700, a year-on-year increase of 21.8%; the total transaction volume was 23.3 billion RMB, a significant increase from 16.1 billion RMB in the same period last year. Among them, the transaction volume of RMB-denominated public mutual fund products reached 9.9 billion RMB, a year-on-year increase of 131%; the transaction volume of RMB-denominated private secondary market products reached 5.3 billion RMB, a year-on-year increase of 61%.

Noah Zhengxing, its fund distribution platform, saw a net revenue of 28 million RMB, a year-on-year increase of 63%, mainly benefiting from the structural opportunities in the A-share market driving a doubling of public mutual fund transaction volumes, and a rapid recovery in RMB private secondary market fundraising. Management stated that the domestic business will continue to focus on the secondary market and asset allocation capability construction, with core directions including public mutual funds, private secondary products, AI-driven customer operations, and Noah Zhengxing's fund distribution platform.

Overseas business: AUA grows steadily, layout continues to deepen

As of March 31, 2026, overseas registered clients reached 20,400, a year-on-year increase of 11.9%; overseas asset under administration (AUA) was 9.6 billion USD, with a year-on-year increase of approximately 5.9%. The transaction volume of USD-denominated products for the quarter was 1.15 billion USD, essentially flat compared to the same period last year, remaining robust overall.

Global network transitions from licensing deployment to actual operation

Chief Executive Officer Yin Zhe disclosed two important milestones in a conference call: the Japanese office officially opened on May 4th; the American brokerage dealer license has completed final approval, with core team members expected to officially join in June.

Yin Zhe stated that Noah's global network is transitioning from the licensing deployment phase to actual operation, and the establishment in Japan and the United States will support the company in providing more comprehensive cross-border wealth management capabilities to serve the global Chinese high-net-worth clients.