Company: NOAH
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0001410578-25-000852
Chunk: 47

Company: NOAH HOLDINGS LTD
Filing Date: 2025-04-24
Form: 20-F
Item: Item 3
Chunk 47
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 liabilities incurred by contract-based private funds and assets of the fund manager in mainland China remains unclear, we cannot assure you that whether our assets will be subject to third-party claims arising from losses or liabilities incurred by contract-based private funds that we manage. If the assets managed by us are subject to such claims, our future growth may be materially and adversely affected.
In addition, misconduct of our relationship managers or other employees could result in violations of law, regulatory sanctions, litigation or serious reputational or financial harm, among other consequences. Misconduct may include but not limited to:

●   engaging in misrepresentation, negligence or fraudulent activities when distributing investment products or providing asset management or other services to clients;
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●   improperly using or disclosing confidential information of our clients, product partners or other parties;
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●   concealing unauthorized or unsuccessful activities, resulting in unknown and unmanaged risks or losses;
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●   accessing and misusing client funds, especially those maintained in segregated accounts for our contract-based private funds; or
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●   other conducts not complying with laws and regulations or our internal policies or procedures.
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Our internal control system which supervises service quality and regulatory compliance may not always deter misconduct of our relationship managers or other employees, and the precautions we take to prevent and detect misconduct may not be effective in all cases. Any of the abovementioned misconduct could impair our ability to attract, serve and retain clients and may lead to significant legal liability, reputational harm and material adverse effects on our business, results of operations or financial condition.

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Our businesses may be adversely impacted by general economic and market conditions.
As a wealth management service provider, our businesses, financial condition and results of operations may be materially affected by China’s and global economic and financial market conditions, as well as economic conditions specific to our business. We serve HNW clients in mainland China and globally through both our wealth management and asset management businesses. As a result, any economic downturns or capital market volatilities may negatively affect the financial performance of the products distributed or managed by us, reduce the revenue generated from our wealth management and asset management businesses, which in turn may materially and adversely affect our overall financial performance and results of operations.
The performance of our investment portfolio may affect the AUM, revenue and profitability of our asset management business.
The allocation of our investment portfolio under asset management and investment amounts varies by investment type and is based upon our periodic evaluation and assessment of inherent and known risks associated with the respective asset class. The revenue