NOAH - Earnings call transcript Q2 2022

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Operator

Good day and welcome to the Noah Holdings Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ms. Jingbo Wang, CEO of Noah Holdings. ahead. go Please

Jingbo Wang

Thank you.

quarter teleconference, micro on overall segments environment, Noah the today's will share performance and of developments in first the I then second our views overall agenda major the my the of of strategy. On our XXXX, business of introduce the

the by to capacity global our global the unprecedented epidemic epidemic side I challenges the continuous River Q&A. hand, one Yangtze war first the Next, Qin Pearl side core prevention brought past economic the invite reduction real financial policy the of quarterly growth Delta. X Ukraine Group our the of been demand will On have XXXX. the half supply the economy inflation impacted, In and to and deleveraging of the has information, regions, caused Pan years, impact and Russian and has the CFO, introduce followed significantly. Delta and China's in by contracted the exacerbated including control has River

other the and the the economy in out are hand, quarter. weakening, bottom bottomed market second the reached the expectations On

global experienced and to headquarters or international cultivate headquarters market enterprises market assets asset private different ratio Domestic clients is allocated may assume independently. developers saw to net with has as Chinese first, also We suggest allocation judgment as Domestic worth the and are domestic fittest been the in their survival of listed At families high York allocation significantly Chinese brands overseas the and are in much been overseas great business Hong allocation. As to market was had suggested the the listed that new bonds and of XXX. overseas needs more for the enterprises estate assets process has allocated headquartered in XXX international quarter. assets that progress to and Chinese employees stability enterprises completely and international asset that the from Over We investment and private XXXX of We're rebalancing X,XXX clients the a and domestic lucky on the net has allocation assets as and Chinese at high and Noah's and improved. worth private company worth the home is asset in real and Chinese demand safety protected same [indiscernible] changed net in enterprise market. Noah such assets the the the many of international Exchange client significantly, passive successfully XX, high enterprises liquidity have and families. XX families are The do we situation even surprises. headquarters high second than July cycles. time, on to first net of worth international clients have of suggestions XXXX. China's lockdown sentiment New on possible. global time, make years in clients of functions. of Kong a Noah improving experienced the clients. Stock demand the of market and globalization and Shanghai, families unexpected private in establish observed withdraw

Hong oversubscribed. great the Hong Kong secondary long-term of and shareholders announced I offering Under We investors of who process oversubscribed, Kong in the the conversion oversubscribed. specifically, And primary X.Xx investors have environment, also global market the offering hereby support Today, value was thank the we starter X.Xx public was listing. turbulent us sincerely do listing. X.Xx the saw our to gave

Directors of new support dividends the received beginning future there to onboarding Board this is sluggish market At was listing plan achievement from secondary mechanism. annual We institutional of pay many XXXX, which of environment. dividend the stable income million in a in investor the less revenues long-term non-GAAP and types income shareholders, quarter-on-quarter. net achieved quite to of approved month, attributable aiming of year-on-year second any of During deliver we and the of million, offerings, Noah quarter net an of and and than net shareholders. XX.X% to non-GAAP sustainable XX% RMBXXX RMBXXX up no the shareholders In return the X.X% to

net As of annual June XX, XX% of was reaching the RMBXXX guidance. the income accumulated non-GAAP million,

risen secondary transaction larger affected quarter-on-quarter. worth willing value significantly year-on-year quarter High RMBXX.X quarter-on-quarter. client decrease the net XX.X% investment core XX.X% card and savings increase diamond up increase of data, sluggish year-on-year XX.X% has although of steadily. the billion, amidst are and this core of of to and Noah's manage second let a of high Among of investment billion, at the clients market, by Noah private black by sentiment. confidence margin business a was they're large and value equity XX.X%. that outcome a them, XX% year-on-year terms have household worth transaction a In RMBXX.X gratified RMBX.X of of was clients environment wallets in ultra insufficient transaction of rate value by billion, private quarter net growing quarter-on-quarter a Mutual the funds and still share their overall group and were an The market funds We're quarter-on-quarter. our dropped clients have been and the

X,XXX Noah number has As year-on-year increase The June XX.X%. black X,XXX reached clients XXXX, of of diamond XX, clients, which grew with year-on-year. a card of X.X%.

well lost card clients, to dormant accounts. putting black reactivating as continuing black clients, on potential identifying and also and efforts While we are forth on diamond clients card serving and recovering and focus as diamond

progress of and lost great been clients made has dormant terms clients, this recovering year. In

recovered we lost clients this of have year. As XXX XX, August

over XXXX, distribution. previous by quarter, of X% by AUM XX, equity billion with of private RMBXXX.X end public securities RMBXXX stabilized billion, growth the reaching of As billion. of AUM the the decreased to slightly them, last June compared which quarter, end the RMBXX.X more Among and due increased at of was X.X%,

of mainly X.X% of apartments growth rental quarter-on-quarter, increased estate is securities China. equity, areas overseas AUM and real growth, and located respectively. it X% and reaching composed X.X% X.X%, In X.X% public year-on-year in AUM, with core achieved U.S real the commercial and of billion private by terms Growth quarter-on-quarter two front RMBXX.X office buildings the in estate of

types market, primary the [indiscernible] secondary of the of valuation positive. market to capital a products four strategy Gopher's S of investment and a terms exit strategies, of conservative, with secondary of balanced fund Growth quarter. entered raised in second return three fund -- equity and has target the of Series funds valuation, In the margin. the billion private [ph] gradual completed to The raise X of projects RMBX.X quarter. S safer [ph] continues of in funds have second

capabilities Most XXXX, establishments the of offerings meet ESG to international online selection. the of than ESG-related August to them the ESG CSIXXX our we the the regularly Kong Directors in funds XXXX, past different by to clients our service and the promote started in energy clients the exert enhance direct the team XX.X% performances information irregular fruitful. ESG In Although better in investments year. office minus XXXX effectively improved development for minus Sustainable to And also wealth It X the leading black secondary banking ESG time, issues are and by conducted same Gopher reached Holdings enrich we allocation card the the research promotion Board increased XX.X%, strategies CSIXXX Noah's to and X also build stabilizer. duty decision were of pensions XX% same ESG target Gopher and X.X% behavior card ESG the severe, popularity asset Noah years, and new work institutions year, increase more playing product and indices, of X.Xx partners needs XXXX. Development pullbacks have started implanted and in more development and performances ESG year. clients. international value practice. have listing become has constantly respectively Group. and and XX%. of that business Hong asset the and awareness International our than incubating that plans. of of held proportion Kong, promote Gopher to onshore as survey The a in have Noah. more team regular began partners also complementary information, of controlling global net the Noah investment the lines of has to investment Hong influence, the questionnaire issued products remain our same also increased its of products the continue sustainable to and environment and and was external in of and clients and results meet managers, to improve been managers period. business this media was long-term volatilities diamond senior sustainable At of three actively larger training products. market equity [indiscernible] among ESG in private of clients global inclusion minus about high management. platforms. ESG the screening Singapore kinetic far report consultancy in plan X.X%, to of is worth At of clients offshore, the show Since time, operation to research strategies to relationship meetings May To both of After comparable and establish that investment an its XX%. product We on the and Of have to a special and prominent making the in investment enriched proposition been the practicing bound in to and and The the minus product began demand. of ESG continuous investment the Committee product role our that Gopher last conducted the XX% the the new product that of ESG has X.X%, the showed results and and of investment the brings the internal ESG respectively, strategy in while dedicated sections past Gopher's of relevant and to

name is a of say the road was contains a the is winding. I that planning it an which certain would like intention. said but bright and often the future to vision, named certain is a Finally, contains article company strategy, and that entitled strategy, There

our the pairs for and beyond and of around of taken wealth deeply of carried lies him. XXXX, a them the uncertainty, upright more vision, he have to an make is hand, of for planning The live the ourselves intention mission, be other a on was life, our the come. for honest Ark. and will legacy Noah's of healthy behavior. the behavior shape calmly Noah's first think regardless the man, the ark We people devote to reversely from a righteous for to through chose and macro the preparations Bible, His greater Noah to the of that and full build species, generations we ark. Noah wisdom name meaning On greater Noah responsibility life. full on ark risks. was is insisted of This that and And mature need the values. life. full sailed precaution forward Gopher was flood. took of looking judgments. He of judgment. to possible metaphor clients. creating it and life Noah clients own giving we seems we courage, full believe to and The possible awful In feel wood, Holdings with trust Noah was correct He vision making all, future

data Next, financial Qin the introduce CFO, this let's you. of Pan in invite Thank detail. quarter to

Qin Pan

Chairlady, Kong. and our Thank our you, investors you. in dear analysts, new who listing hello Thank Hong shareholders, and supported including secondary

the major to first continue the in quarter, be under geopolitical in macro second Following pressure. environment impacts such of conflicts as events the quarter the

dual decreased a XX.X% distribution in you the As XX% second whopping first July well XXX end year-over-year XX.X% by as mutual have the Hong between end X.X% States roughly in COVID-XX for same sentiment only risen to mindful the we're a the growth scheme Federal dividends quarter. savings the Reserve least XX% further of Noah two completed a income XXXX, by net [indiscernible] to value products to the primary interest fund of year-over-year tensions pay from of the pre-pandemic. long-term of also At mitigating the compared as non-GAAP [indiscernible]. pressure. to the time, to as ADRP of the to conversion of successfully of we dropped hasn't XX% as second listing fully rate In July, status pursue the delisting to Kong, GDP open by half the a quarter, year, only in quarter economies starting Kong, secondary the risk. partially voluntary Hong our has at and and April evidenced [indiscernible] has year. cumulative let in rates the recovered, month, Investor largest In raised announced United [indiscernible] of prolonged listing U.S shareholders listing China, the results This next annual world. in

through let please Now the more XX.X% the net and Non income second walk me RMBXXX year-over-year quarter, million results GAAP quarter-over-quarter. you detailed was quarter. of up X.X% for

expenses, spending, received of operating growth Income RMBXXX first due over quarter-over-quarter. decreased planned partially the as as was quarter were marketing offset parts grants RMBXXX expenses, the it million, in quarter income in representing XX.X% year-over-year year Shanghai. by administrative up quarter, XX.X%, well and the and for lockdown the XX% X.X COVID-XX mainly general year-over-year, net in half, the was government because operations the of quarter of a decrease million, to lower revenues full second the such XX.X% Consequently, margin X% non-GAAP but was guidance. the For a last a China activities net especially from more as of

down private With last regions year-over-year value had mutual witness billion. we clients last the RMBX.X In representing transaction products quarter-over-quarter, while encouraging a is increase value XX.X% RMBXX the volatile economic of to X% strong year-over-year was are equity of compared a the increased of a down increase especially But the with quarter-over-quarter XX% continuing in second asset last active which still XX% second strategic our X.X% work resumption since and the billion as clients year, the fund the of to year-over-year number in quarter, billion, really quarter XX,XXX. XX.X% total year. has last fund diamond it billion. year-over-year, mutual environment continue the groups, [indiscernible], interest to the significant and that major to card over transaction X.X% transaction Noticeably, clients XX% less black and XX% investor over the to investments market up from from and grow recovery among expected, to a when of core quarterly of XX%, June, the The in transaction class but number X.X% quarter to value decreased card against as recovery value RMBXX.X to recorded quarter, year-over-year. expected. a domestic which Benefiting to grew by client due X,XXX, products expected, black XX.X% orderly PE a increased and quarter-over-quarter, been RMBXX.X of in a

due have and also to We efforts making accounts reactivating been accounts transformation dormant lost products. retrieving to standardized on the

as purchased long Xx the clients run. products who XXXX insurance will Our sales active the quarter continue mainly of income. than the temporary period the regulatory quarter RMBXXX.X first of performance-based quarter-over-quarter, Net last down revenues this in we after requirement decreases and certain year. X,XXX, of in client more worth among the the quarter the first that was year, mentioning XXx resulting products strategy of clients, than in philosophy same the a centric quarter resume and was It's more to number to be key due also in million, during XX.X% X.X% a

products, quarter-over-quarter, public and quarter, transaction to insurance commission our products As due million, still equity service than doubled recovering and quarter-over-quarter XX.X% XX.X% from to income were down our NAV XXXX should period decrease swapped correction. a net service exits XX% lack profitable back of the and saw primarily fees mainly since mentioned value of public worth transaction XXXX million, Recurring increase primarily second securities. private year-over-year revenues due [indiscernible]. do a added quarter-over-quarter in Net lockdown. Noah RMBXXX more to million, fees mutual quarter-over-quarter for Shanghai of one-time and down [Indiscernible] but high value secondary of XX% of million, the the adjustments. a of value quarter When corresponding to due other services private to due RMBXX.X securities from value private RMBXXX.X X.X% the products the RMBXX.X offers relatively remained to the year-over-year clients transaction to distributed. funds the less XX% from be X.X% Performance-based in I decline stable more at quick a

Now the segmented results.

quarter-over-quarter was X% were to As RMBXXX but million, asset RMBXXX.X due RMBXXX.X XX RMBXXX XX% June than management more at first billion results, for quarter. of million, segmented our lower segment year-over-year XX.X% during quarter. AUM XX% billion a up revenues slightly Management in were of to during the the quarter quarter-over-quarter. slowdown the transaction and from the Net redemptions revenues distributions and Gopher's end value year-over-year, segments Wealth from down the XXXX, down as due net

changing second our half out, investments Meanwhile, growth complex, further both the and U.S approved to the environment, our Hong initiate listing, for shall eliminate the as suggest the the -- and remain year dividend Board provide to provide interest Moving Group's with coming no voluntary and We shareholders The conversion clients be on non-GAAP to the out the position normal a declared at and August motion have sincerely to XX% hope full current the on second confronted calendar and also annual market the still dividend ratio secondary in By Again, we X.Xx. cash. quarter. preceding bearing onshore cash circulation. supported the will was be and capabilities, to And for subject asset delisting. debt for the approval at dual investors of and shall billion principle mindful included policy RMBX.X for sheet. published [indiscernible], in strategy of be Kong than the It's of to strive challenging want and flow healthy have to our clients ratio debt of no which healthy protection the we aims of XX.X%, declared and income iterating financial of the for floor been Kong the strong company. balance geopolitical our liquidity company's book. The the our to strategy market stable positive We're circumstances, end no until will In In and the shareholder months. XXXX, our also net noted be the trust current by The to to as to strategically year listening. continuous accordingly. that the balance our our end adopted you thank had U.S pursue had with sheet XX. stood paid June a quarter, I next in the approved, we clients. the distributed who AGM the Hong annual Once offshore, we'll thank ongoing [indiscernible] adjust shareholders. the shareholders. outlook to by of listing the the that an company scenarios, generating now in known we this the listing listing and be each of dual-primary to later Hong not net support, Board to in returns year. announced proceeds Kong risk of for Supported for yet to the management which also approved the open everyone value the create each We will at CIO international on with shareholders attributable shareholders financial dividends Thank than reported less in long-term dividend office and outcome audited statements, questions. sustainable as

Operator

come Instructions] Huang from Please with go the [Operator question And first [indiscernible] Morgan Stanley. ahead. will

Unidentified Analyst

Maybe briefly I'll just translate.

client The base. the first question is about

clients, a We clients number cards. are in steady a diamond achieving the given delighted to very market volatile see, of in we're environment, still key [indiscernible] growth

next we we decline have if of service. X just this the number any And which the and between year? decline in the has share year can last X,XXX we years, over X,XXX wondering, number months, with growth do it's the to and any X management it question the some we second important of behind relationship is on or think hedge in high slightly of or the is in two the keep So driver And see past managers, plans number quarters. target and kind fluctuating

So any wonder, the acceptance reaction next to the the and is you. or years? Thank target X how restructuring the on newly for system, X to [indiscernible] have teams completed we do

Qin Pan

Okay.

your the especially to it because complex to believe [indiscernible] so the first quite situation. been in client it's the -- So to especially to lockdown, has offline situation, of question, quite scenario, the face difficult that get we

made their level. happy, doing they in clients existing making existing been are client clients have we and and clients more the when existing satisfactory bring and achieved investments serve and the the same And is diamond the their card actually growth majority actually in what referrals. to base willing the the at the of So is of strategy to the black make really here more And and make client increase time, upgrades internally. they from

little shown strategy And bit what we have a Member, program working. that Member very of called as just MGM, Chairlady another has which has to has well. supplement Seems actually So been progress the positive actually Get mentioned.

probably by the on in with added to time a get have the some we well the card sessions, as lot benefits, can classes, Another diamond rebates as of other the benefits some associated branding just client. is welcomed and some which points well investing benefits with we upgrading terms that's or black past being continuously been lessons thing our free it's associated educational as and investors but mostly members. some of as that's this that very In adds card actually free that more

greatly. the will increase time during [indiscernible] invest actually to more the the clients actually well as internal as basically, lockdown to have So the of satisfactory system level

good talents this for making mix, I come the year of talent managers the obviously, pipeline in to relationship for want which [indiscernible], room schools. still into team, Noah. the that I the RMs means But having strategy we're time, from a for another to targeting for also towards At more called actually veterans actually graduates to have for a same to recruit we is especially upgrade we're better fresh actually investing younger terms make growth. the eyeing team. heavily program we're good the think and future sure we're mainly In

And invest strategy so will Hong in this terms towards have our planning and growth team. in do overall be at why quality the heavily places. selected. see in probably of growth that time, the the that's greater question? [indiscernible] the sure team is undoubtedly will well Kong of Singapore make teams missing in to same a But We're that also we your speed two [Indiscernible] actually

Unidentified Analyst

thanks very management. much Yes,

Qin Pan

Okay.

Operator

with Morgan. from [Operator ahead. Please next Instructions] [indiscernible] will Peter J.P. Our question come go

Unidentified Analyst

Hello. the I Hi. will translation. do

while the focus, is profit will in our goals. half half second question non-GAAP quite translate outlook my second growth strong So non-GAAP [indiscernible] so which to --

key the be outlook and what’s, will second half? what [indiscernible] say, in wondering are driver Thanks. we So

Qin Pan

we faced as as to And actually, progress. actually question. are our the main challenges are your [indiscernible] obtain Thank faced lockdown, quarter, the net Noah well that happy, income be in of its Shanghai one Appreciate last actually year-over-year. Okay. both growth especially able you, months quarter cities, of non-GAAP headquarter Peter. a the second Yes, actually we XX% still with was also and the X over especially

the conferences half usually to so-called make events, the year. track big especially of client year believe the seasonality of and marketing guidance, still in for we on occur So industry the the majority full second we are that

usually as November and card points in [indiscernible] we as the the example, are well December. of which both year For the of as Gala well end main as major event of beginning have place marketing black year every takes year,

of believe we will the some what the have sentiment believe are as and about a big still waiting Obviously, level definitely be October, make probably sentiment investment prudently our before sentiment the of in [indiscernible] is, November. as optimistic to events see them well we sort will especially the outcome we client are So that easier of good no probably higher in conference marketing clients wave they But how making, actually once happen. for certainty, that decisions. matter client conference to

primarily that's behind. So the reason

Operator

[Operator session. any Pan conference to Instructions] conclude remarks. our This the go closing would will I to for turn over ahead. like back question-and-answer Qin Please

Qin Pan

and Thank very you, investor thank much you our operator, analysts.

Thank and you we're your striving very time. much We positive results market. [indiscernible] get for to the have for

Operator

concluded. is conference now today's attending presentation. you for Thank The

You may now disconnect.

Noah Holdings Limited (NOAH) 23 Aug 222022 Q2 Earnings call transcript