Company: NOAH
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0001410578-25-000852
Chunk: 180

Company: NOAH HOLDINGS LTD
Filing Date: 2025-04-24
Form: 20-F
Item: Item 5
Chunk 180
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 financial information.
Operating Costs and Expenses
Our financial condition and operating results are directly affected by our operating cost and expenses, primarily consisting of (i) compensation and benefits, including salaries and commissions for our relationship managers, share-based compensation expenses, performance-based bonuses, and other employee salaries and bonuses, (ii) selling expenses, (iii) general and administrative expenses, (iv) provision for credit losses, and (v) other operating expenses, which are partially offset by the receipt of government subsidies. Our operating costs and expenses are primarily affected by several factors, including the number of our employees, rental expenses and certain non-cash charges.
Compensation and Benefits
Compensation and benefits mainly include salaries and commissions for our relationship managers, salaries and bonuses for investment professionals and other employees, share-based compensation expenses for our employees and directors, and bonuses related to performance-based income. The number of our employees was 2,884, 2,583 and 1,990 as of December 31, 2022, 2023 and 2024, respectively. Considering the macro volatility, we implemented more strict cost control to improve operating efficiency, as a result of which our headcount decreased from 2022 to 2023 and further to 2024. We anticipate continuing our investments in talent but will still closely monitor our headcount to maintain high operating efficiency.
In 2022, 2023 and 2024, we incurred relationship managers’ compensation of RMB497.1 million, RMB655.5 million and RMB562.5 million (US$77.1 million), respectively, representing 16.0%, 19.9% and 21.6% of our net revenues in the same periods, respectively. We anticipate that the compensation and benefits of our relationship managers will continue to be a significant portion of our costs and expenses as we continue to rely on our relationship managers to distribute more investment products.
Share-based compensation expenses include grants and vesting of stock options and restricted shares to our employees and directors. We adopted two share incentive plans in 2008 and 2010, and replaced both with a new share incentive plan in 2017, which was terminated when our 2022 Share Incentive Plan was approved and adopted in December 2022. For more information, see “Item 6. Directors, Senior Management and Employees – B. Compensation – Share Incentive Plans.” We expect to incur additional share-based compensation expenses relating to share options or restricted shares in the future as