Company: NOAH
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0001410578-25-000852
Chunk: 280

Company: NOAH HOLDINGS LTD
Filing Date: 2025-04-24
Form: 20-F
Item: Item 16K
Chunk 280
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 financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for credit losses - Loan receivables - Refer to Notes 2(x) and 11 to the financial statements

Critical Audit Matter Description

As of December 31, 2024, the Company’s allowance of credit losses on loan receivables (“ ACLL”) was RMB74.1 million, represents management’s best estimate of losses inherent in the loan receivables. The Company estimated expected loss for loans with different risk charateristics by using a method which involves the probability of default and loss given default assumption derived from applicable statistical models. The methodology requires the projection of future loan repayments based on assumptions which are impacted by reasonable and supportable forecasts. The expected loss is computed on individual loan basis. In addition, adjustments for qualitative factors are made to the ACLL when unique risk factors are identified and not considered within the models.

Given the significant amount of judgment required by management to estimate the ACLL, performing audit procedures to evaluate the reasonableness of the estimated ACLL required a high degree of audit judgment and increased effort, including the need to involve our credit specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the Company’s ACLL included the following, among others:

  We tested the design and operating effectiveness of controls implemented by the Company related to the estimation of ACLL, including the appropriateness of the models applied, the reasonablenes...  

  On a sample basis, we tested the accuracy and completeness of the loan-level information and the internal historical data used.  

  With the assistance of our specialists, we (i) evaluated the appropriateness of the statistical models utilized by the management, (ii) evaluated the relevance and appropriateness of internal a...  

  We inspected management’s documentation supporting the use of qualitative factors and analyzed the reasonableness of such factors.  

/s/Deloitte Touche Tohmatsu Certified Public Accountants LLP

Shanghai, China

March 26, 2025

We have served as the Company’s auditor since 2010.

F-3

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING