SHANGHAI, Aug. 28,
2024 /PRNewswire/ -- Noah Holdings Limited ("Noah" or
the "Company") (NYSE: NOAH and HKEX: 6686), 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 that as part of its commitment to
enhancing shareholder returns, the board of directors of the
Company (the "Board") authorized a share repurchase program under
which the Company may repurchase up to US$50
million of its American depositary shares or ordinary
shares, effective immediately. The authorized term for carrying out
this share repurchase program is two years.
The Company announced in November
2023 that a new capital management and shareholder return
policy (the "Policy") had been adopted, pursuant to which up to 50%
the Company's non-GAAP net income attributable to shareholders of
the preceding financial year will be allocated to a Corporate
Actions Budget which will serve various purposes, including
dividend distribution and share repurchases. The share repurchase
program announced today does not form a part of the Corporate
Actions Budget under the Policy. The Corporate Actions Budget based
on the Company's financial performance in 2024 is expected to be
determined and announced alongside the Company's earnings results
for the fourth quarter and full year ending on December 31, 2024.
The share repurchases under the repurchase program announced
today will be carried out from time to time on the open market at
prevailing market prices, in privately negotiated transactions, in
block trades or through other legally permissible means, depending
on market conditions and will be implemented in accordance with
applicable rules and regulations. The Board will review the share
repurchase program periodically and may authorize adjustments of
its terms and size. The Company expects to fund repurchases made
under this program from its existing cash balance and cash
generated from operations.
Ms. Jingbo Wang, co-founder and
chairwoman of Noah, commented, "This share repurchase program,
along with the dividend payout we just completed, reflects
our unwavering commitment to prioritizing shareholder
interests and delivering sustained returns. While China's wealth management industry is
navigating a challenging period and undergoing a transition, we
remain confident in Noah's unique advantages stemming from our deep
understanding of Mandarin-speaking high-net-worth individuals'
(HNWIs) needs and our ability to deliver products and services to
this still-growing client base. We are one of a few independent
firms that maintains access, through years of investor education,
to a large group of qualified individual investors who continue to
seek professional services."
"As such, we believe that our stock is deeply undervalued and
does not reflect our growth prospects, robust balance
sheet and cash reserves, or the special bond we
have formed with the Mandarin-speaking HNWIs globally. We value
both our long-term and new shareholders and are committed to
sharing our success with them through more proactive capital
allocation policies moving forward."
Full Year 2023 Dividend Payout
In late July and early August
2024, Noah rewarded shareholders with a record RMB1,018
million (approximately US$140.1 million) dividend payout
for full year 2023, equivalent to 100% of its annual non-GAAP net
income, including the final dividend under the Policy and a special
dividend.
Capital Management and Shareholder Return Policy
In November 2023, the Board
adopted the Policy where up to 50% of the Company's non-GAAP net
income attributable to shareholders of the preceding financial year
will be allocated to a Corporate Actions Budget which will serve
various purposes, including dividend distribution and share
repurchases.
Under the Policy, no less than 35% of the Company's non-GAAP net
income attributable to shareholders of the preceding financial year
will be allocated toward dividends to be distributed in each
calendar year, subject to various factors.
The Corporate Actions Budget based on the Company's financial
performance in 2024 is expected to be determined and announced
alongside the Company's earnings results for the fourth quarter and
full year ending on December 31,
2024.
ABOUT NOAH HOLDINGS LIMITED
Noah Holdings Limited (NYSE: NOAH and HKEX: 6686) is 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. In 2024 Q1, Noah distributed RMB18.9 billion (US$2.6
billion) of investment products. Through Gopher Asset
Management, Noah had assets under management of RMB153.3 billion (US$21.2
billion) as of March 31,
2024.
Noah's wealth management business primarily distributes private
equity, private secondary, mutual funds, and other products
denominated in RMB and other currencies. Noah's network covers
major cities in mainland China, as
well as Hong Kong (China), New
York, Silicon Valley, Singapore, and Los
Angeles. The Company's wealth management business had
457,705 registered clients as of March 31,
2024. Through Gopher Asset Management, Noah manages private
equity, public securities, real estate, multi-strategy, and other
investments denominated in Renminbi and other currencies. Noah also
provides other services.
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