EQS譯資財經
知行集團獲雀巢馬來西亞全力支持 透過旗下全資農業科技分支VEGGiTY開發革新性智慧農業科技 以緩解馬來西亞農業生產下降及糧食失衡問題
藉部署VEGGiTY概念驗證模型 (VPM模型), 以提升雀巢馬來西亞在氣候變化衝擊下的辣椒供應 (2024年6月11日,香港)香港領先的綜合節能及綠色科技方案供應商知行集團控股國際有限公司(「知行集團」或「集團」,股票代碼:1539.HK)與世界最大快速消費品公司——雀巢公司的馬來西亞營運分支——雀巢馬來西亞有限公司(「雀巢」),以及知行集團在馬來西亞的授權代表GoBiz Asia Sdn. Bhd. (“GoBiz”) 簽署諒解備忘錄 (“MOU”)。根據MOU,知行集團及其全資農業科技分支VEGGiTY,將與雀巢合作建立VEGGiTY概念驗證模型(「VPM模型」)。知行集團和GoBiz將攜手合作,全面負責VPM模型於馬來西亞的交付、安裝、營運、優化和管理,並確保產品符合雀巢嚴格的內部標準,預期於2024年12月或雙方商定的其他日期實現辣椒的穩定供應。 結合智能調控及物聯網科技之智慧農業科技 知行集團主席黃文輝先生表示:「在全球暖化帶來的更頻繁和持久的熱浪影響下,食品及農業行業正在馬來西亞和中東等其他具備相似氣候條件的國家和地區面臨巨大挑戰,農業產量和效率受到極大影響,導致糧食短缺問題不斷深化。基於VEGGiTY提供的創新智慧農耕科技,我們旨在與雀巢共同開創一種室內智慧農業科技解決方案,希望在完全受控的室內環境中,透過智能監控及調節系統和物聯網科技,持續提高農產量和效率,並同時最大限度地降低耗能成本和用水量,以滿足消費者的新需求。 柔佛州是馬來西亞主要的水果和蔬菜生產地,去年產量佔全國總產量的34.5%。然而,該州目前僅約30%的辣椒產自當地。柔佛州政府希望減少對進口辣椒的依賴,積極推動創新農業技術,以改善當地的糧食生產條件,加強糧食安全,並全力執行《國家糧食安全政策行動計劃 (2021-2025年)》(“National Food Security Policy Action Plan 2021-2025”) 和《國家農食政策 (2021-2030年)》 (“National Agri-Food Policy 2021-2030”)。」 他續稱:「知行集團與雀巢的合作,正契合當地政府冀加強糧食安全的使命,首要任務是提高辣椒本地產量、降低進口依賴。我們將利用與雀巢合作的領先優勢以及豐富資源,應對因氣候條件而引發的糧食短缺問題。 雀巢目前每年採購400-500噸辣椒,而其全球需求量卻高達5,000噸。本項目旨在聘用本地人力,採用低碳農業策略,以確保穩定的辣椒供應量和品質,並實現再生農業實踐。」 雀巢按需求向知行集團採購所需的辣椒量 根據MOU,知行集團將提供一個40英尺集裝箱尺寸並自身集聚全部功能的VPM模型 — 便攜式一體化數碼垂直室內農場 (“DVIF”) 系統,並運送至馬來西亞。該DVIF系統配備太陽能電池板,可為設備提供恆溫恆濕控制,並為植物提供自動照明,以創造最佳生長環境。與傳統農場相比,該系統能夠大幅降低能源使用成本和用水量,同時以可持續的方式實現200倍的收成,而相比室內農場也能提高10倍的產量。 根據MOU,在試驗過程中,雀巢將負責提供辣椒種子。試驗完成後,雀巢有權依據自身每月需求,向GoBiz和知行集團購買所需的辣椒量。此戰略合作旨在建立一個受控、可抵抗氣候變化的種植環境,構建可持續和具韌性的糧食供應鏈,體現了知行集團在面對氣候變化時堅定實施綠色策略和採取具體實踐的承諾。此項目的成功經驗預計未來將為其他正在應對類似農業和環境挑戰的國家提供有效借鑑。 - 完 - 關於知行集團控股國際有限公司 知行集團成立於2008年,成為首家在香港交易所上市的能源服務公司。其業務的核心是能源管理合約(EMC)商業模型,該模型實施專為達到最佳能源效率和為客戶最大化回報而設計的定制解決方案。知行集團採用行業領先、有效且實用的研究方法。這些方法涵蓋了創新的綠色技術、數據分析、機器學習及演算法。其研究和開發努力的成果體現在其獨特的多功能、適當和可行的綠色技術解決方案中。目前,知行集團在中國、馬來西亞和中東地區營運。 欲瞭解更多詳情,請瀏覽集團網站:https://www.unitygroup.eco/index.php 本新聞稿由達博思傳訊顧問有限公司代行。 如有任何媒體查詢,歡迎聯絡: 陳鎧瑤 (Joanne Chan) 電話:(852) 3679 3671 電郵:jchan@lbs-comm.com 何幸儒 (Jason Ho) 電話:(852) 3752 2675 電郵:jho@lbs-comm.com
New High Profits! Looking At The Value Growth Potential Of Tuya Smart (02391.HK/TUYA.US) From The Bass Diffusion Model
Abstract: Ecological Deduction From The Perspective Of The Bass Diffusion Model How much can a company change in four years? Tuya Smart (hereinafter referred to as "Tuya") has shown us its answer. Tuya helps customers achieve device intelligence more efficiently to make them more competitive. It even crosses into a broader field of spatial intelligence and creates a smart solution cloud platform for "PaaS+SaaS+smart devices including Cube Cloud", through which Tuya develops its own intelligent business for global giants. This is not only a technological leap, but also an ecological evolution. On May 21st, Tuya released its first quarter report, achieving Non-GAAP profitability for the first time in the first quarter. The company has entered the next phase of slope climbing in spite of various twists and turns. 01 In the new stage, Tuya’s Q1 report presents multiple highlights There are four key points in this financial report: 1. The performance of revenue and profit can be summarized as: revenue beating expectations, off-season reaching new highs In 2024 Q1, Tuya achieved a total revenue of $61.7 million, a year-on-year increase of 29.9%, exceeding market expectations. In terms of profitability, Tuya has posted stable profits for four consecutive quarters, with non-GAAP net profit increasing to $12.3 million during the reporting period. Although the first quarter is usually the off-season for revenue, Tuya still made impressive performance, fully confirming its strong profitability. 2. High-speed growth followed with high-quality growth Tuya's financial indicators have been improved in an all-round way. In Q1, the company's gross profit margin reached a new high of 47.8%; Operating net cash flow significantly improved month on month to $14.5 million; The cash on hand is nearly 1 billion US dollars. 3. The largest business sector experiences a comprehensive recovery The IoT PaaS business holds a crucial position in the overall revenue of Tuya, accounting for over 70%, making it undoubtedly the company's largest and most core business segment. In Q1, IoT PaaS revenue was $45.6 million, a year-on-year increase of 35.7%, and its dollar-based net expansion rate increased to 116% year-on-year. "This growth is partly due to the recovery of overseas consumer electronics demand and the steady increase in global demand for intelligence. Also, it is due to our increasing market share, major competitors clearing out during the industry downturn cycle from 2022 to 2023, and more top brands shifting from in-house IoT to our platform. We also continue to drive innovation through new product development, helping our brand customers quickly launch new smart products.," said Jerry Wang, Founder and CEO of Tuya Smart. 4. Good results in business upgrading The company will integrate generative AI, embedded, cloud software and other capabilities into Smart Solution. The revenue of this sector increased by 37% year-on-year to $7.5 million during the reporting period. The impressive opening performance of Tuya in the first quarter financial report is self-evident, which not only foreshadows the high landscape of 2024 for the whole year, but may also mark the beginning of Tuya entering the next era of the intelligent world together with new technologies such as AI. At this moment, it is necessary to re-examine the value and growth potential of Tuya. 02 Resonance of three major factors from the perspective of the Bass model There are multiple theoretical frameworks for evaluating the innovation and commercial value of technology companies. Among them, the Bass Model has become a key tool for measuring the value growth of tech companies. Technology products often features distinct innovation diffusion, and the Bass model precisely depicts the behavior of innovators and imitators, vividly demonstrating the complete process of high-tech products from initial acceptance to widespread adoption. The Bass Diffusion Model reveals the dynamic mechanism of market diffusion by deeply analyzing the behavior of innovators and imitators. Its key parameters - market potential (M), imitation coefficient (q), and innovation coefficient (p) - provide us with in-depth market insights. The outstanding performance of Tuya is a model of the synergistic effect of these three factors. Market potential (M): Breaking boundaries Focusing on the trillion-level market size Market potential (M) represents the potential sales volume or total demand, in other words, it indicates the market cap that the product may reach. Tuya is rapidly expanding its business boundaries to a new stage. Device intelligence is a key pivot for the early development of the company. As the global leading cloud platform service provider, Tuyawith its IoT PaaS service, helps enterprises achieve efficient upgrading of product intelligence. In the IoT market dominated by giants, Tuya has occupied a considerable market share through this fulcrum. The continuous progress of technology and changes in market demand have enabled Tuya to constantly break through its own boundaries. Since four years ago, the company has moved from single device intelligence to a new field of spatial intelligence. Nowadays, Tuya focuses on intelligent management and optimization of the entire environment and scene, expanding its business scope to include spatial intelligence in industries such as apartment hotels, community parks, transportation, and energy, as well as further crossing into a smart solution cloud platform that includes “PaaS+SaaS+smart devices, including Cube Cloud”. The vast variety of application scenarios has driven the growth of the TAM by tens of times, which is a crucial transformation, marking the company's entry into a broader market in a new stage of development, and laying the foundation for its value growth. In addition to the positive impact of market potential, the behavior of innovators and imitators affects market penetration rate. The behavior of these two factors is described by the innovation coefficient “p” and the imitation coefficient “q”. Innovation coefficient (p): Embracing AI Continuously promoting innovation and helping developers "upgrade" A higher innovation coefficient p-value means that the product or technology has strong appeal and can quickly attract innovators. Compared to the imitation coefficient, the innovation coefficient reflects more on the ecological and "siphon" effects of innovation, and the acquisition of this part of customers essentially relies on the attractiveness brought by the strong innovation. Tuya, a tech-driven company, fully embraced generative AI in early 2023. The layout around the AI field is becoming an important highlight for it to open up greater market potential and create greater commercial value in the future. The natural technological genes enable Tuya to fully explore and utilize AI technology to continuously drive innovation. In particular, based on the company's cloud platform technology genes and a vast intelligent hardware ecosystem, Tuya is also fully investing in the research and development of generative AI, and continuously exploring development opportunities in areas such as device intelligence, spatial intelligence, and smart solutions. Among them, in the direction of spatial intelligence, Tuya incorporates its AI capabilities into the daily management of spatial scenes, enabling users to obtain generative AI device functions and management experiences, AI-driven intelligent scene experiences, or scene analysis and linkage scheme recommendations. The Smart Solution of Tuya can be said to be a microcosm of its innovation strategy in the AI era. It not only reflects the technological depth of the company in AI and AIGC, embedded operating systems, cloud software and other fields, but also demonstrates its ability to integrate these technologies to create greater customer value. For instance, Tuya greatly enriches the user interaction experience and improves operational efficiency by integrating AIGC-enabled speech recognition technology in devices such as smart central control systems, smartwatches, and smart light strips. This intelligent interaction method enables users to achieve more precise and convenient home control, leading a new trend in smart home life. Meanwhile, in the field of pet devices, Tuya utilizes technologies such as GenAI to deeply analyze the behavior patterns of pets, customize personalized toys and games for pet owners, and create interactive sound and visual effects. These innovations not only bring more entertainment and happiness to pets, but also deepen the emotional bond between pets and their owners, providing pet owners with a richer and more loving product experience. It is worth noting that Tuya launched its own AI model, Cube AI, at the Global Developer Summit on May 29th. Thanks to the vast scale of intelligent devices in its global ecosystem, Tuya can generate through AI optimal energy conservation and emission reduction strategies based on specific scene requirements according to real-time energy consumption in space, providing customers and users with leading AI technology product value in the field of spatial intelligence. Through these specific application examples, it is not difficult to see that Tuya transforms the advantages of AI technology into practical value for customers and users. This not only truly empowers the improvement of customer core competitiveness, but also further strengthens customer loyalty and satisfaction with the Tuya Smart brand. In the wave driven by AI technology, Tuya not only improves its own innovation efficiency, but also greatly facilitates developers to adopt and apply its products and services, helping developers improve their development capabilities and efficiently produce competitive products. In the meantime, this further accelerates the widespread application and popularization of innovative technologies. In this process, the Tuya Cloud Developer Platform played a core role, inspiring the vitality of a diverse intelligent ecosystem that includes brand owners, original equipment manufacturers, partners, and end-users. As a global cloud platform service provider, Tuya is committed to integrating AI technology into the core of the development process, bringing developers the most avant-garde, convenient, and efficient development experience. Developers can enter the development process and generate UI interfaces through simple dialogue interactions through AIGC capabilities, or check problem logs and return code suggestions through AI. In addition, AI will also help developers analyze the strengths and weaknesses of user feedback and product features, in order to facilitate product improvement, iteration, and innovation. As of the end of the first quarter, the number of registered developers on the Tuya platform has exceeded one million. The continuous iteration of AI capabilities on the developer platform allows Tuya to help developers interact and communicate extensively between smart devices, providing a fertile ground for technological innovation. This AI ecosystem not only accelerates the evolution and iteration of technology, but also injects innovative vitality into the entire industry, leading the industry towards more efficient and intelligent development. Imitation coefficient (q): Building high customer stickiness Connecting the global service network The innovation coefficient p mainly affects the initial stage of the diffusion process, which is the introduction period of new products or technologies, while the imitation coefficient q plays a greater role in the later stage of the diffusion process, promoting the dissemination of products or technologies to a wider consumer group. A higher q value reflects the recognition of customers who have received products and services, and customer stickiness can be considered an important reference. Furthermore, the scalability and usability of products and services can help them gain more customer acceptance. Through the construction of a smart solution cloud platform for PaaS+SaaS+smart devices, including Cube Cloud, Tuya has created a series of benchmark cases, laying the foundation for its high imitation coefficient. By leveraging the positive word-of-mouth of existing customers, it has also attracted more potential customers to start using its products and services. As Jerry Wang, Founder and CEO of Tuya Smart, mentioned in this earnings conference call, the company has observed a group of new developers and brand customers growing vigorously on the cloud platform. Among them are Chinese e-commerce companies venturing overseas, which now possess stronger R&D and branding capabilities compared to four or five years ago. Additionally, well-known brands in North America, India, and Europe are growing steadily under a more localization-focused service model. The robust foundation of both new and existing customers enabled the company's growth rate to surpass the industry average. Here, let's take the cooperation case with French company Xanlite as a specific example to see how the company can develop a high "imitation coefficient". The cooperation between Tuya and Xanlite began with the intelligent upgrade of lighting products. As early as 2018, the two sides had jointly launched the smart home brand KOZii, which has since become one of the top smart home brands in France. Xanlite actively responds to France's energy-saving policies, and has begun to engage in energy transformation related businesses. In May of this year, the cooperation between the two sides marked a new milestone. At the China Zhejiang-France High-Tech Industry Innovation Cooperation Matchmaking Conference held in Paris, the two sides officially signed a cooperation agreement to jointly promote a new path of smart home energy conservation. In this collaboration, Tuya will utilize cutting-edge technologies such as GenAI and cloud computing to accelerate the implementation of smart home solutions in France and even Europe with Xanlite, bringing more efficient and green smart living experiences to families. From the initial collaboration on lighting products to the integration of advanced energy-saving kits and smart home systems, it is not difficult to see the significant achievements of Tuya in meeting customer needs, providing sustained value, and deepening cooperation relationships. This not only reflects the company's outstanding performance in customer stickiness, but also demonstrates its ability to empower strategic transformation and continuous innovation at different stages of enterprise development. In fact, the cooperation experience with Xanlite in France also provides an opportunity for them to further expand their local cooperation network. In 2019, Tuya also established a partnership with French industrial pioneer Schneider Electric. This collaboration focuses on the development of the Wiser smart home automation platform, aiming to integrate the technological advantages of both parties and jointly promote innovation and application of smart home solutions. In the same year, Tuya also reached a deep cooperation with the well-known European lighting company CALEX at the CIIE. Prior to this, Tuya had also helped CALEX's lighting products cover mainstream retail channels in about 6 countries in Western Europe. Through this series of collaborations, Tuya not only strengthens its technological strength in the field of smart homes, but also leverages the brand influence and market position of its partners to further expand its influence in the European and even global markets. In fact, the cooperation cases of Tuya are not limited to specific regions, but span multiple countries and regions, which continues to enhance the market expansion opportunities for its products and services. The cooperation project with Schneider Electric was subsequently implemented in markets such as Asia Pacific, Australia, and Europe. For example, the cooperation with TCL in various home appliance categories has successfully brought smart devices to TCL's customers in dozens of countries. It can be said that through a series of global collaborations, Tuya has continuously expanded its market influence, and also leveraged the market position and user base of its partners to enhance the credibility of the brand, effectively promoting the market diffusion of products and services. As mentioned in the financial report, the company's continuous overseas expansion and a more balanced global business landscape have made its business more resilient and opportunities compared than three years ago. "We are able to keenly perceive and capture the intelligent new trends in various regions around the world, better serving Tuya’s global customers and Chinese manufacturing enterprises' overseas expansion." 03 Conclusion From the perspective of the Bass model, it is not difficult to see the significant value growth potential of Tuya Smart. It can be said that the expansion of market size (M), the technological leadership of innovation coefficient (p), and the construction of customer stickiness of imitation coefficient (q) jointly build the cornerstone of the company's sustained growth. As technology continues to advance and market demand expands, Tuya, with its robust innovation capabilities and global presence, is emerging as a crucial force in driving the development of the intelligent era.
Redefining Pre- and Postpartum Fitness: A collaboration between Saint Bella and Renowned Fitness Influencer Pamela is revolutionizing the global pregnancy work out.
In celebration of Mother's Day 2024, the luxury maternity and baby care brand SAINT BELLA has partnered with globally renowned fitness influencer Pamela Reif to launch the "Pamela's Pregnancy Workout" campaign. This initiative features a custom-designed, scientifically based "8-Minute Pregnancy Workout," aimed at providing pregnant women with professional, safe, and efficient exercise guidance, setting a new trend in prenatal health. Additionally, SAINT BELLA has collaborated with Ma Liangkun, Chief Obstetrician and Gynecologist at a top-tier hospital in Beijing, and Dr. Liu Meifang, a PhD in Maternal and Childcare, to co-develop a tailored postpartum exercise regimen. They invite all expectant mothers to join in and experience the mysterious energy of "8-minute endorphins," scientifically ushering in the golden period of postpartum recovery. Pamela Reif, a fitness icon with over 70 million followers, graced the cover of Forbes magazine at age 23, is renowned for her efficient and inspiring workout style. In collaboration with Saint Bella, she has developed an 8-minute pregnancy workout that combines her signature fitness approach with the specific needs of pregnancy. This scientifically designed, safe, and enjoyable program aims to help expectant mothers strengthen muscles, maintain fitness, alleviate pregnancy discomfort, facilitate smooth delivery, and prepare for postpartum recovery. The "pregnancy workout" is becoming a modern trend in prenatal self-care. SAINT BELLA Maternity and Baby Care Center, known as SAINT BELLA, is a luxury postpartum care brand established in 2017. Built on an experienced postpartum nursing team from Taiwan, SAINT BELLA specializes in the independent research and development of art therapy. Adhering to the philosophy of Attachment Parenting by Dr. Sears, the center offers 24/7 one-on-one nursing services. SAINT BELLA is dedicated to providing postpartum women with luxurious LTV (long-term value) services, supporting them throughout their entire journey of pregnancy and childbirth. The brand adopts a business mode of "all direct sales + partnerships with globally renowned luxury hotels", with 23 stores directly operated in 7 first tier and new first-tier cities in China, including Hong Kong, Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Xiamen, and Chengdu. Last October, SAINT BELLA expanded internationally with the BELLA VILLA series at a prestigious hotel on Sentosa Island in Singapore. In May of this year, it further increased its global business presence by settling in the affluent neighborhood of Newport Beach. The new store in New York will also be launching this year. The collaboration with Pamela showcases SAINT BELLA's innovative approach to prenatal health management, further expanding its service chain for full-cycle maternal and childcare. This Mother's Day, the "Pamela's Pregnancy Work out" initiative highlights the brand's dedication to promoting a healthy lifestyle for expectant mothers. Spotlight on "Pamela's 8-Minute Pregnancy Workout": Key Benefits and Features 1/Scientifically Customized: Combining Pamela's fitness theories with the scientific guidance of Chief Obstetrician Dr. Ma Liangkun and Dr. Liu Meifang, each exercise is meticulously designed to ensure safety and effectiveness. Suitable for various stages of pregnancy and postpartum recovery, the workouts are personally taught and demonstrated by Pamela. 2/Efficient: The gentle and easy-to-follow exercises take just 8 minutes to activate the body's potential, release endorphins, alleviate pregnancy pain, reduce stress, and enhance the overall sense of well-being. They are also beginner friendly. 3/Enhancing Prenatal Well-being: The 8-minute work-out provides a good sweat but also endorphins, known as pleasure hormones, serving as a natural energy source for pregnancy. These Hormones help to improve sleep quality and alleviate stress as a new parent. In contrast to dopamine's fleeting effects, endorphins induce sustained pleasure, inner tranquility, and profound serenity lasting up to 12 hours post-workout, necessitating a synergy of mental and physical efforts to ignite a deep connection between self and the world. 4/Allowing cloud participation: work-out videos available on Pamela and Saint Bella's we-media platforms, accessible to expectant mothers anytime and anywhere, giving them globally synchronized and engaging fitness experience. 5/STB Postpartum Research Institute has introduced their first breathable "Maternity Workout Pants": Addressing the unique concerns of active expectant mothers, who not only need support for their growing bellies but also comfort for their sweat-prone bodies. The expert team at Saint Bella has developed these high-end maternity workout pants using advanced high-elasticity fabric. These pants securely support the baby bump and are designed not only for exercise but also to accommodate the special physiological changes during pregnancy and postpartum. Ma Liangkun, a health education expert from the National Health Commission and Chief Obstetrician and Gynecologist at a top-tier Beijing hospital, stated: “This eight-minute workout routine, specifically designed for pregnancy, aims to alleviate discomfort through safe, moderate-intensity, and scientifically effective exercises. Even mothers with no prior exercise experience can follow along safely. The movements are suitable for all stages of pregnancy and target core muscle groups that should be strengthened during this period. This can help prevent issues such as frequent urination, palpitations, and sleep disorders, as well as reduce the difficulty of childbirth and accelerate postpartum recovery.” Global upgrade, 14-Day "Postpartum Work-out" by SAINT BELLA Addressing the unique needs of postpartum women, Pamela and Ma Liangkun have collaborated with Dr. Liu Meifang, an expert in maternal and infant care, to jointly develop the Saint Bella Custom Postpartum Exercise Routine. This scientifically designed 14-day program aligns with the stages of maternal recovery, enhancing the services and products available at Saint Bella's global stores. This exclusive offering is available only to SAINT BELLA clients. Scientific postpartum work-out can benefit women after birth in the following aspects: 1/ Facilitating elastic recovery of perineal, pelvic floor, and vaginal muscles to prevent vaginal loosening and uterine prolapse. 2/ Relieving pains in shoulder, neck, and back, to effectively prevent postpartum lower-limb edema and even venous thrombosis formation. 3/ Facilitating the tension recovery of abdominal wall and pelvic floor muscles, to enhance bladder control and solve problems such as incontinence and urinary leakage. 4/ Increasing core strength, sculpting shape curves, and restoring pre-pregnancy figure. 5/ Easing the pressure from identity transition and parenting, reducing symptoms of postpartum depression. Dr. Liu Meifang, National Nursing Director at SAINT BELLA, and an expert in maternal and infant care, stated: "This postpartum exercise routine combines traditional postpartum exercises with modern postnatal yoga and can generally be started three days after delivery. It addresses various body shape and physical issues caused by pregnancy and childbirth, helping new mothers improve their physique and physical condition. Regular practice can aid in quickly restoring their figure and bodily functions, as well as alleviating stress and emotional strain." As an advocate for a healthy lifestyle, SAINT BELLA has been committed to offering full-cycle services and experience for the new generation of mothers. Its strong alliance with Pamela this time has sparked a global trend of "pregnancy work-out" by storm. In addition to reforming traditional postpartum concepts and actively exploring healthy pregnancy lifestyles, it further extends the brand's full-cycle service chain. It's evident that for SAINT BELLA, introducing prenatal exercises early allows more users to experience their brand. By showcasing high-quality content that spans the entire pregnancy and childbirth journey, they not only expand their services but also educate more expectant mothers on adopting healthier lifestyles after becoming mothers.
Noah Drives Overseas Expansion in First Quarter of 2024
SHANGHAI, May 31, 2024 –Noah Holdings Limited (“the Company,” or “Noah”) (NYSE: NOAH and HKEX: 6686), a leading, 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 ended March 31, 2024. Taking a broad look at the global economic environment—and beginning with the situation at home—Noah has seen capital markets in China fluctuate during the first quarter. At the same time, the critical domestic real-estate market has been sluggish. This has put high-net-worth individuals in a more cautious and risk-averse mood in terms of their investment appetites. Overseas, persistent inflation during the past three months has eased expectations for a rate cut from the Federal Reserve. Zhe Yin, the Chief Executive Officer of Noah Holdings, said: “The macroeconomic environment has been a challenge, but we have responded with a strategic transformation that we believe will set us up for future success. From day one, we adhered to our core principles: a strict segregation of client capital, no maturity mismatches, and no cross-border movement of funds. Our decision in 2019 to shift to a more standardized product offering while winding down all non-standard private credit products—including domestic residential real-estate funds—has served Noah clients well in turbulent times. The restructuring of our domestic wealth management business is, at present, at a critical stage as we consolidate and further optimize our operations. At the same time, our expansion overseas remains on track—but will still require additional resources and investments in the near term. Taken as a whole, these measures will require more time, but once complete, we expect sales to stabilize in the second half of this year.” Noah generated first-quarter net revenues of RMB 650 million, a decrease of 19.2% from a year earlier. The wealth management business generated revenues of RMB 463 million, a decrease of 21.2% from a year earlier. The asset management business generated revenues of RMB 180 million, a decrease of 12.1% from a year earlier. These changes are in line with Noah’s strategic realignment and are part of a concerted effort to enhance the Company’s long-term growth trajectory. Noah’s overseas expansion has achieved solid results by contributing 77.1% of the revenue generated from new business and products, while the domestic business accounted for 22.9%. Operating profit for the first quarter of 2024 was RMB 121 million, and Noah reported an operating profit margin of 18.7%. Noah is committed to building a healthy and sustainable platform for growth outside of China. At the same time, it recognizes that its overseas relationship management team is currently too small to effectively service clients, leaving room to improve service quality and responsiveness. Noah is bolstering its teams in Hong Kong and Singapore with the goal of expanding this critical cohort to 200 relationship managers by the end of this year. Overseas assets under management (AUM) grew 11.6% from a year earlier to RMB37.3 billion, accounting for 24.4% of total AUM. Also, overseas assets under administration (AUA) grew 14.8% from a year earlier, accounting for 24.1% of total AUA. This reflected our ability to capture a larger share of our clients’ U.S. dollar wallets. Reflecting additional overseas success, as of the end of the quarter, Noah had more than 15,700 overseas registered clients, an increase of 17.1% from a year earlier. In addition, the number of overseas, active high-net-worth clients reached 2,745, an increase of 39.6% from a year earlier. Noah’s success, in spite of economic headwinds, reflects its international focus and the Company seeks to combine that with the latest asset allocation advice and a full suite of wealth management products and services. This strategic approach has resonated with clients during recent market volatility. As of the end of the first quarter, the number of Black Card clients increased by 8.7% year-over-year. The total number of our clients, of whom the overseas investment with Noah is over USD 2 million, grew around 5% compare with last quarter. On the technological front, Noah has expanded the products and range of client services offered through its iNoah app, its overseas wealth management app. This includes offering different solutions to clients, businesses, and agencies. As mentioned last quarter, Noah declared an annual dividend of RMB 509 million and a non-recurring special dividend of RMB 509 million for 2023, which is subject to final approval at Annual General Meeting (AGM) on June 12, 2024. Noah expects to pay out dividends before the end of July to Hong Kong stockholders and in early August to ADS holders. Noah looks forward to providing stable and sustainable returns to shareholders as it drives growth in its business. In the first quarter, Noah released its 10th annual ESG Report. This year’s report elaborated on Noah's management philosophy relative to corporate governance, society, and the environment, as well as its achievements related to those weighty topics. Since Noah was launched, it has been dedicated to providing high-quality asset allocation services to Mandarin speaking, high-net-worth investors. It has built lasting relationships with its clients and enhanced their understanding of wealth management and investing. Jingbo Wang, Co-Founder and Chairlady, said: "Noah was founded with a deep respect for financial principles and a steadfast commitment to investor education. In this volatile market environment, our strategy is anchored in the protection and security of our clients' assets. Our primary goal is the preservation of assets, which we do by identifying top-tier investment opportunities globally. Safeguarding our clients' interests is our paramount responsibility, and it is the foundation upon which we will pursue future growth.” Ms. Wang continued: “Confronting the evolving challenges to our domestic business, we are streamlining operations and concentrating our efforts in key strategic cities. As we transition, we are deploying advanced operational models and service philosophies from international markets to enhance our global competitiveness and strengthen our international profile. With a sharp vision and strong determination, we are navigating these strategic changes to become stronger, more agile, and better positioned to serve our clients globally.” As Mandarin-speaking, high-net-worth investors become more mature and globally oriented, the trust-based relationships that Noah has built at home will allow it to continue serving them as they look overseas. Noah’s full financial results for the first quarter ended March 31, 2024, are available at ir.noahgroup.com.