Noah Holdings Ltd. (NOAH) saw its stock price plummet 5.29% during intraday trading on Friday, despite reporting year-over-year and sequential growth in profitability for the first quarter of 2025. The wealth management firm's latest earnings report revealed a mixed bag of results, with impressive gains in some areas offset by concerning declines in others.

On the positive side, Noah's non-GAAP net income surged 27.4% sequentially to RMB 168.8 million (US$23.3 million), while its operating margin expanded to 30.3%. The company also reported a substantial year-over-year increase of 257.7% in transaction value for RMB-denominated private secondary products, amounting to RMB 3.3 billion.

However, investors seemed to focus on the challenges facing the company. Noah's domestic net revenues declined by 14.3% from the previous quarter to RMB 310.4 million, reflecting the impact of a challenging global macroeconomic environment and low-interest rates in China. These factors have negatively affected Chinese high-net-worth individual (HNWI) sentiment and the company's topline growth. In response, Noah has been implementing a CAPEX-light strategy, consolidating its branch network, and enhancing online marketing and services to reduce fixed costs and improve operational efficiency. Despite these efforts, the market's reaction suggests concerns about the company's ability to navigate the current economic landscape and maintain growth in its core domestic market.