Q4 2020 Noah Holdings Ltd Earnings Call
Good evening and welcome to the Noah Holdings full Q 'twenty earnings Conference call. All participants will be in a listen only mode should you need assistance. Please signal of a contract.
[music] specialist by pressing the stocky followed by a day right.
After todays presentation, there will be and opportunity to ask questions. Please note today's conference is being recorded.
I would now like to hand, the conference over to MS. Jing dollar Wang Tai found.
Founder and Chief Executive Officer, and Noah Holdings. Please go ahead.
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Today for the agenda of the conference.
Call of the first talk about the macro view than a report on the north overall performance in 2020 and the development of our major business sectors, our CFO and Mr. Chin and will then introduce the the details the annual financial results followed by Q&A session looking.
Looking back on the past year the.
The market has been moving forward faster like the high speed train the supply side reform of China's financial products has continued and the transfer of household as a need based products.
The market expectations of.
And then the value of the new funds increased by 120 Threep.
Present year over a year two of $3 two treated the outstanding amount of non monetary funds continued to grow reaching a historical high of $10 99, treating and increase of 59 presents a year over year with a significant increase in ex the phones.
The guidance on a standardized.
The diving asset management, the business all financial institutions braking and pleased to the guarantee the supply of note and then the ice the credit costs continued to decrease.
And the insurance and the issuance of equity products is excellent and read it together was the normalization the.
The house.
Houses are for living and and not for the.
And the speculative investment capital market reform and the return rate of equity funds continuing to rise more and more individual investments behaviors has been replaced the by institutional management and.
And as expected that the securities products.
And the open market will continue to reach a record record high in 2020 one.
It has been six quarters since north and started the transformation from nothing a dice the products to a standardized the product in 2020 the.
Transaction value of standardized the products the number of active clients and the performance based income.
All risks of the historical high which are a good results we have achieved in the transformation.
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And so in 2020 Noah recorded a total net revenues of renminbi.
And be straight line Street, 1 billion dropping slightly by two 5% of young yet the.
A slight decrease in revenue was mainly due to lower take rates of standardized products lower revenues from overseas businesses due to the impact from the COVID-19 pandemic.
We recorded a GAAP net loss attributable to shareholders of renminbi.
And the $745 2 million non-GAAP net income attributed to shareholders for the year, what's the I mean, the one point of one 3 billion up 25, 3% of younger exceeding of expectations. The GAAP net loss was due to a one of the equity settlement expense in the amount of three I mean, the $1 8 billion related.
Is it to the 10th and settlements and in terms of of a core business that a total transaction value of of a wealth management segment was renminbi and $94 7 billion up 24, and 6% of young yet the transaction value of a standardized products reach them and be $73 1 billion of a 177 three.
3% of young yet a month standardized the products the transaction value of a secondary market equity funds and one of them.
Of the 26 billion up 381, 8%, yeah, yes, the transaction value of mutual funds reached the renminbi $43 3 billion up a 146, 7% yeah, yes.
So all of the overseas businesses.
Net revenue for the year was and maybe 730 million down 22, 9% of young yet a U.
And what's the it'll be $24 9 billion slightly higher than that of the end of 2019 accounting for 16, 3% of the total a O M of the group.
And increase of one 7% young yet.
We believe that in 2020, one with the improving global epidemic situation travel and work restrictions will gradually be lifted and the demands of clients will bounce back a greatly in 2020, Noah's high net worth client group continues to expand with a new active.
The active clients, including mutual funds of over 39000, and the increase of 11, 6% of young yet and the number of black card clients increased by 11, 6%.
For the service model of out of a black card clients. We have started to pilot the Noah try and reminders.
Professional division and Collaborates with the operation.
Operations, while providing system magic support for relationship managers solution experts and operation Excellence.
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Our asset management business, the a O and jobs.
The two renminbi 15, 3 billion and by the end of 2020 and affected by the continuous voluntary redemption of non standardized the credit products of which non standardized the credit products dropped Pfizer and the $19 4 billion. Other actively managed the products have reached a different degrees of growth including six.
And 1% a year on year growth to be nine 9 billion and the standardized the public securities products and seven 7% a year on year of growth two of them and be 113, Clarion and private equity products in terms of private the public securities by the end of 2020 and the return of growth of 10 manager of manager.
<unk> was $17, 24%, beating benchmark return of the same period by $10 two 5%. The goes the top 30 fund achieved annualized the return of seven.
The 13 point and 37%, beating benchmark return of the same period by $4 18, 1%.
With a private equity go for a continued to promote false as funds and co investment funds, while expanding its direct sales team. It is worth mentioning that the <unk> of growth with Silicon Valley team in the United States increase of U S. Dollar of 122 million to U S dollar of $317 million in 2020, even with.
With the impact of COVID-19 in terms of improving operation efficiency. The operating expenses for the full year. What do you mean, the $2 1 billion down 17, 3% year on year non-GAAP net margin attributable to shareholders was 34, 3% up seven 6% year on.
Operating profit margin increased from 27% in 2019 to 38, 1% in 2020 the management and efficiency of the company has been greatly improved the.
And the digital transformation of Noah has achieved a great result in the past few quarters, mainly reflected in the improvement of operation.
<unk> and efficiency the.
One of a version of Ky Cky AK VIP digital platform is a line to more accurately identify clients understand products and match relationship managers. We also upgraded the client interface of fund Smile and overseas platform I know, what and launched the relationship.
And manages workstation.
In 2021, we will continue to invest.
And the technology system for the digitalization and intelligence of our business online operations and the front and client interfaces, the middle and relationship managers working platform and Gophers investment management platform as well as the backend of the management.
The platform to continuously improve our service quality and efficiency and finally improve our client experience.
Yeah.
And quick correction for our asset management business, the a O M dropped.
Two of them in the 153 billion by the end of 2020.
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In 2020 Noah started comprehensive organizational change to promote organizational leadership capabilities systematically and transform love from a tradition of grain train to a modern version of high speed.
And your electric multiple units it is a long term and continuous process to free Noah is exempt from any unique individuals to establish a company that runs on organizational leadership.
Have a established eight committees and launched a rotation scheme for core positions and enabled young people to take on important rose.
And committees and crude.
Strategy Committee Talent Committee Operation Committee Science, and Technology, and Revolution commodity products Committee Ethics compliance committee, including compliance and disciplined and supervision Committee client interest Committee and ESG sustainability Committee each community.
Each community has its own responsibilities and together form a more effective collective decision, making mackenzie.
And organizational talent side, we have launched a true we are driving mechanism of position qualifications and performance management to achieve the market.
Most of the foundation of of incentive mechanism by mesh and personnel.
And now and positions weighing of positions grading by positions and compensation by grade. Meanwhile, the kpis system runs through and leads to the realization of strategic objectives the cash.
Yeah, a system and our strategic.
Targets a force alliance as we say all force is true one point or.
Benefits from one source.
Noah has been working for 15 years, and the wealth management and some distribution of industry with strong investment advisory competitive capabilities and professional advantages, we have been revising and piloting a new relationship relationship manager's compensation scheme to upgrade the assessment mechanism.
To meet the needs of our clients of standardized the product.
We include the indicators of a U N clients client satisfaction and product coverage ratios into performance appraisal, we believe that our market share will continue to improve and the future with a wealth management industry and information and funds investment consultancy.
And as a pilot.
In 2020, now a set of a new business segment, alongside wealth management and as a management and named it Noah digital intelligence and.
Mr changing the form of general manager and co CEO of Joe One on line P&C insurance joined Noah Digital intelligence SCO and we look forward.
Forward to building a new intelligent open platform to serve individual financial advisors, and becoming a new channel of Noah's wealth management platform and promoting the tubing business developments of the segment using technology.
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Noah has abandoned the non standardized the private credit products from the third quarter of two five a month.
And I, suppose and firmly transformed to a standardized and net as a value based product.
We propose the settlement patents or patents and clients in the second quarter of 2020 and reached settlements with nearly 70% of the clients by the end of the year and the.
The first quarter of 2021, we have completed the early redemption of.
And of most of the non standardized the private credit products in our and throughout 2020, we took on the initiatives of organizational change and matching positions with talents and.
And the changes of product and and relationship managers circling around a client centric and survival as the bottom line philosophies of a management team is very happy to.
See that Noah has achieved a smooth transformation and a quick growth in a tough environment in 2020.
But at the same time, we're aware that the rain storm has made the water rise, we're just lucky ducks rising with the water and the pound of course. It is gratifying that although we have not surpass of the market went and the process of change.
Playing light and keeping up with the pace of the market and.
I'm proud that in the past a few quarters Noah's management team has experienced a major crisis project financial rectification and academic risk and the team has maintained a relatively healthy organization, a face plate lightly and games and the growth.
Growth space.
The deep thinking of a core team is aligned which brings about cognitive change a new management strategy has gradually become a established and we reached consensus on it looking forward to 2021, we have four key objectives first is client oriented.
Okay.
Amortization of capacity beauty and enabled by digitalization and second is organizational change new momentum generated by posted a rotation young executives and new posts to forward out of a business development.
And we hope to incentivize our relationship managers by the pilot and and transplantation of.
Of the new compensation scheme, and lastly, the new positioning and new start of Gopher.
And the wealth management side, we aim to fully upgrade client interface and improve the client service experience.
And the product and we aim to understand the client needs and establish deeper strategies with a leading GPS and fund managers.
And provided one stop comprehensive service for the products suppliers.
And the investment and build investment and research capability designing new products and improve the investment capability around client demand and the technology and complete the Ky seek the right acre of IP digital online platform and application.
Vacation construct a digitalized of.
Amortization of pet capacity to improve the efficiency to understand the client needs more accurately and provide services for clients through digital transformation of all aspects of our operations and management.
Digital and intelligent online operations of Noah will get us.
As a clause closer to high net worth clients and better understand the needs of product suppliers understand and identify the skill sets of our employees to eventually match the three.
Wealth management, and as a management a promising industries Noah.
All of her as a key position in a market with a huge.
Huge growth potential we believe that the current China's capture market is very close to that of the United States and the night and 19 seventies. When the GDP per capita exceeded 10000 U S. Dollar however, financial assets only accounted for roughly 30% of the household investable assets and China.
The market value held by institutional investors was just 18, 5%.
There is still a huge space for industry development in such a great year of full of opportunities we would not be optimists. Our focus is to go further.
We look forward to abuse the 2021.
Thank you Charlie and thank you Sonya.
And how long and Masters and Netherlands, Good morning, a were very.
And excited to share with you the strong financial results for 2020.
And successful transformation.
Offering.
Just a strong stock market performance and favorable primer.
Margin environment.
Despite that we recorded.
Our net loss of RMB $745 2 million under the U S. GAAP. We have also achieved a full year non-GAAP net income of RMB 113 billion up 25% year over year.
It's an honor to have ongoing support from our clients partners and shareholders and the past year.
And optimistic on the future growth and the wealth and asset management industry and also the groups the potential to become a major and independent player.
I would also like to mentioned of the GAAP net loss of.
The RMB $745 million for the year was due to one of the equity settlement expense of.
Close to RMB, one 8 billion related to the khamsin and settlement plan.
This expense consist of RMB, one 3 billion, representing a 67, 5% of the clients.
And we have settled with US as of December 31st and also the RMB 0.5 billion for the rest of the clients and not yet signed the.
All of her but we anticipate a settlement will be reached and certain weight and the future of <unk>.
The cost the latter was recorded as a contingent liability from a conservative.
A standpoint after assessing the probability of the occurrence of under GAAP.
As of December 31, 2000, 2100% of the camps and the related settlement plan expenses.
And booked in 2020 excluding.
Excluding the settlement expense non-GAAP net income was RMB one.
One 1 billion up 30% year over year.
Now please let me walk you through a more detailed financial results of the fourth quarter and full year for 2020.
Despite the contraction of University of the insurance due to COVID-19 travel ban and all.
Continuous stream of efforts on the lending business.
Net revenues for the year were RMB three 3 billion.
Slightly down year over year by two 5%.
Excluding oversea insurance impact net revenues in 2020 were up seven 2%, if we compare apples with apples.
One time commission revenue in 2000.
<unk> and 'twenty was RMB 800.
$4 3 million down 13.3 year over year again due to a decrease we're seeing insurance distribution.
And this oversea insurance contributed about RMB 154 million net revenue and 2020 comparing with arm.
RMB $462 2.002 million 19 down by a 66, 7% that's a very large drop and.
The insurance revenue.
Excluding the apart from Oversea insurance, one time commissions were up 40% year over year.
Recurring service.
Of its fees and performance based income were RMB, one 9 billion and the RMB $387 4 million up four 5% and 240.
The 4% year over year, respectively.
Specifically, the private equity and public securities contribute.
The 255, 7% and 39, 2% of the performance based income respectively.
And a robust exit activities and the primary market.
And our product selection capabilities and the secondary market type of product.
Other service fees were RMB $194 2 million.
Down 62, 3% year over year, as we continued to reduce our lending product offering.
We're restructuring lending and other businesses and.
And a new consolidated and the business segments, no one digital intelligence to offer.
Platform services to eye and face and to our clients.
As one of the main objective of 2020 strategy, we have achieved a full recovery and the total transaction value.
And with a total of RMB $94 7 billion up 20.
6% year over year.
The transaction value of standardized products with the RMB seven point.
RMB $73 1 billion up 177, 3% year over year offsetting the decrease and the offering of credit type products.
And a successful transplant.
Hans formation.
Yeah, and the addition, P products recorded RMB $17 90 on the of distribution supported by strong primary market and as a strategic relationships with the top of Gpus and the industry.
After six quarters since the transformation of a process.
The offering and we're very happy to see the number of active clients, including mutual fund clients increased by 11, 6% to almost 40000 in 2020.
The number of Black card clients stood at 985 as of December 31, 2020 also.
Up 11, 6% comparing with the same period in 2019.
The number of Diamond clients, who have over 10 million of AUM under management.
Reached 4.4 thousand and 551 increased by two 2% comparing to last.
Last year.
Operating profit was RMB, one 3 billion and 2020 up 37, 5% year over year and operating margin improved from 27% in 2019% to 38% in 2020, as we continue to optimize operating efficiency.
Non-GAAP net income attributable to Noah's shareholders.
RMB, one 1 billion up 25 point 25, 3% year over year and also beating our previous guidance of RMB 900 to RMB 1 billion by 12%.
Net loss attributable to Noah shareholder.
Holders was RMB 700.
$45 2 million as we incurred a noncash and the one of share based settlement expense of RMB, one 8 billion in relation to the khamsin and settlement as I previously mentioned debt represented about 67% of the.
The khamsin holders.
Who had accepted the settlement plan.
Representing approximately in dollar amounts 77%.
Of the total outstanding chemist and fund balances.
On the balance sheet side, we continue to improve liquidity as a cash.
Balanced stood at RMB 5 billion and we continued our.
Efforts and long term investments, we had which decreased by 39% since last year.
When you're recognized contingent liability in the amount of RMB 530, young from the campus and settlement of playing out as a.
Previously mentioned a for.
For the group had not accepted or signed the settlement agreement.
Accordingly, all of the settlement related items have been Expensed as of December 31st 2020.
Our current ratio stood at three seven where the debt as a ratio of 22%.
<unk>, which is a still very healthy.
I'm very confident to say that with a well capitalized balance sheet, we are well positioned to invest in your R&D efforts and implement new growth initiatives, which will pave the path for new year of growth for Noah.
When it comes to quality numbers.
We have also had a very good performance in terms of our fourth quarter financial results recorded net revenues of RMB, $953 2 million up 29% year over year, and 11% quarter over quarter supported by strong performance based income amounting a.
RMB 206.
$6 million up 260% year over year, and 193% quarter over quarter.
One time Commission was RMB $271 million up 70% year over year, and a 39% quarter over quarter, driven by strong domestic insurance product sales.
Recurring.
Income well.
Was RMB $435 9 million down 65 down six 5% year over year and 22% quarter over quarter.
Due to the decrease and a back and medicine.
Related to the and redemption of credit products.
Operating.
And income for the quarter was RMB 335 million.
165, 7% year over year, but down three 4% quarter over quarter as a result of increasing offline client events and compensation expenses incurred in the quarter.
Non-GAAP.
GAAP net income for the quarter was RMB.
$262 5 billion up about 121% year over year and down 11% quarter over quarter.
Net loss attributable to Noah shareholder was RMB, one 6 billion.
And the one off camps and share based settlement.
And expenses net income was RMB $255 4 million up 148, 5% year over year and down by 10% quarter over quarter.
Or business segments net revenues from the wealth management business were RMB, two 4 billion for the year up 2%.
Accounting for about 71, 6% of total net revenues.
And net revenues from the at the management business amounted to RMB $875 million.
Up 11% year over year on a strong performance based income realization contributing for about 26, 5%.
The total revenues.
I would like to note that for the guidance side that the non-GAAP net income of RMB, One 2 billion to RMB, one 3 billion guidance for 2020. One reflects managements current business outlook as we're excited to see strong year of financial and.
And the operational performance in the past a year and a reasonably optimistic about the growth that we will achieve in 2021.
As mentioned by Charlie do you want and we have made a comprehensive plan to resume growth mode and also the investment in the future.
The growth from.
The top line to the number of core clients and most importantly, and digitalization and technology.
The expansion, obviously will require a heavy inputs and talent client oriented marketing events as well as tech infrastructure, and we target to maintain a MA growth and the bottom line, but rather a speed.
Our expansion and market share and also of advancement in technology.
Lastly, I would like to emphasize our commitment to ESG and responsible investment.
We have started the process to link and launching ESG related investment products to serve all of a sophisticated.
High net worth calling them.
And we will update the market accordingly.
Thank you again, everyone and now we'll open the line for questions.
We will now begin the.
The question and answer session to ask a question in a price.
And then.
The one thing.
Fine.
Using a speed.
Please pick up your handset price.
The key.
To withdraw your question.
Please Chris.
At this time.
And then to assemble a roster.
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Okay.
Okay.
Yeah.
Your first question comes from.
And then from bank.
And the American Securities. Please go ahead.
Hi, I'm on.
Uh huh.
Gotcha.
Okay.
Hey, Tom.
GAAP.
How good a lot.
A woman.
And what do you think.
And Joel.
Oh geez.
Doug I'm Guangdong.
Yeah.
Well Matt.
The balance.
Just a housekeeping.
Right.
And I'll tell you day.
Revenue of clientele.
Pardon me.
Oh and then.
Can you talk a lot.
Non-GAAP guidance.
Non-GAAP EBITDA on the phone line.
Thank you.
The Guangzhou.
And I see.
E true Smoky, that's me and just.
A well yeah, a couple of shows that somewhat.
Right.
And that should give us a little bit.
All of them too.
Can you quantify what the.
Uh huh.
A couple.
Yeah, Yeah, so the one zone.
All of them.
David the nuclear and I'll go through and I'm glad to.
And you go and Jeff Wang.
Well, yes.
Non-GAAP some of them.
That's a good day I'll, let the bad weather it seems at the time.
Yeah.
I think the widen.
Yeah.
Sometimes you got a couple of a couple of kids don't watch and that's.
And I'll call it one of them.
Uh huh.
Yep Yep.
Wow.
So I think that's the thing you go on to Oh, Yeah.
Bye.
And she said she was like Wow.
And they've got once you need a whole about true.
As a whole one day.
Thank you Graeme widen back out a lot.
E M B a.
The good times and do.
One a plenty of pounds of today.
Yeah.
Just to circle and he's asking about.
And then that's a cool.
And car T cells.
She had a clunky.
It's a way a.
Don Clark how long ago.
And I don't think off a bit.
And go see Mongo.
And somebody in the.
Uh huh.
And you keep a path now.
And Oh, well, it's not just the slides and I think that hopefully in a golf.
And that's it.
Well, let me kind of I'm not only gets you a little just as youre well all of them.
And I'll say Wow.
And thank you Kim.
Non call a condo and Dot Hill.
Yeah, and I hope, there's a poll.
And so somebody.
Uh huh, so maybe at.
And then a break.
Translate my question. So the first question's a about the growth plan a go no out of a so management mentioned that a Noah is now in a growth mode and you already have a.
Have a plan for a lot of top line goes cry and growth.
Is that true so could you provide a.
The guidance for.
A after the client growth and 2021 onboard a long path because a chunk of somebody a can be a volatile so true market volatility, but if a client growth.
A client go.
Is such a need a quiet increases the increase of revenue and profit.
And is just a matter of time, so could you provide us more details and your growth plans for a client number and how do you plan to achieve the target and the second question is.
It's about the <unk>.
And like agent, all cash, which amounted to a lot of RMB 5 billion by end of 2020 and accounted for 53% of total assets a you've mentioned a previously.
Previously that give me a.
The key a use that cash was on the M&A or other potential.
And that's me could you provide us on a flawed and.
The potentially a earlier for a go and then they or investment and what is the logic behind and thank you.
I'd say the MLR.
Completion of all of the thing.
And well Washington.
And then kind of go down.
And printing Patrao D day, you go to the woman and she is a factor.
The cause of Gotcha, and she the thing way of Guardians of the production for coffee and.
So a lot of cohort showed the same thing with me a freedom and going through a faint Omega cohort timber the beat my opinion of women and Skype and all of them, the cheaper and FAP and Fac.
And you go to China, just a cohort so she and cohorts or goes to the cool down of a woman by the before he got a call for canceling their teeth and Joe just for you or Tim or going for a whole.
Women jealous of the questioning the Toyota did you find you a sort of thing she was a golf with the fingering towards a form of the Hershey and the alcohol.
All of my House.
We kind of keep in fact, creating the like of course, there's no sense of that cause of the city of military and in that forecast, that's a cohort of UBS.
That's true.
A take a full year of the teens without the T cells.
And you said that you continue for at home and Garden, a few of them and senior it could be a penny of which all of a meal kit and.
Central and will be all of that just a few drop out.
And the Paypal the targeting for a couple of it typically most of that.
Okay, and so I'm going to translate a little bit of.
Clearly the answer and also have my inputs.
Inputs as well.
She's just a script that we have again clarify.
And.
Our strategy.
Focus to continue to focus on the head high net worth individuals and also a super high Ultra high net worth the individuals' basically a.
In addition to the number of clients that we have also actually focused on increasing the quality of services.
The year to this type of clients and also in terms of market share not only just again on the sheer number of the client groups.
And as well as the wallet share of.
The existing client groups.
One of the things that we have mentioned in the speech, it's about a new service model that we have the implementing a.
Have a year.
That started the implementation in the last few months a.
Basic and will have a so called triangle a service model to our clients.
As compared to a single point of contact in the past only through the relationship manager now we have a basically three.
A.
Elements in the service one of the AAR, which the account representative will be supported by one or two on one of them more solution and representative who actually has the.
Expertise in the products and services that fit our clients' need as well as.
For the par which is basically the.
Service Representatives, so that our clients actually have a full scope of a.
The client experiences under this new service model.
We have seen a.
And the passion from the front line individually.
Vigils, who actually also realized through this model debt actually increased the service capacity and to our clients even for the.
So called elite a re.
Alicia managers and basically we expand their capacity to serve more clients and get more a higher client and to them.
While this year.
But in addition to that and as you have asked about.
And what's strategy, we have would you actually cleared a set.
A very clear a number of increase in the core client groups for 2021 a.
I'm, a little bit reluctant to give guidance.
On that.
As you know it depends actually know quite a few different factors. So I don't want to this to be misleading.
But I can tell you that you will be a pretty major growth.
And it will be a clear focus in terms of continued growth.
And the increase that type.
Of corporate clients like you said it well you will greatly.
Improve the.
Softness of our.
The client relationships. So that's the answer for the first question.
Okay.
Yeah.
And.
In terms of the use of cash and Emma.
And I understand.
And our focus on debt so basically.
And one of the one of the information that we have disclosed and the 6K, a as you can see that we have a.
We used part of the proceeds to repurchase our stock.
A $400 million, where basically we have a.
Completed a debt repurchase a by end of a.
February and March.
And in terms of opportunities we've been looking at for the acquisitions.
I think we have been very actively.
Okay and.
And when it comes to actually financial type of institutions, either domestically or.
Oversee a as you would imagine that we're being very careful in terms of performing due diligence or figuring out what the right synergy of before.
And we're actually proceed.
So obviously, it's very difficult the promise that we will acquire a buy anything.
But I.
I guess one of the things I'm confident to say that it remains a.
And the Arsenal of the strategy that we're looking at to expand certain capabilities of service.
The lower technology or asset management.
And it's one of the targets that were continuous to look at.
And my sense, that's a answer a question.
Oh sure that just yet.
Uh huh.
Yeah.
Thank you.
Once again, if you have a question. Please press Star then one.
Your next question comes from and Fusin TICC.
Please go ahead.
I think the Horace Mann, who joined the NAV.
And then perhaps beyond cash will go into the Q1 and two what would you be anywhere you go and do decline the passions to Amanda and what kind of on the cash and as pronounced as refunded shipping and told the meals that top notch and she's always I.
And I would like to open the session on day by day.
And I'll get you how long it will go much about the countries.
Moving to Belgium.
How 'bout D G and do that.
And all of a form wash it ladies and gentlemen.
And with Agila and the passion of till now the Jason's and measure the channel that you Moshe.
And when you get naphtha and Shelley Lindsay with Seattle, a number out of it.
And is that answers your managers of a stable quarter on quarter, while slightly decrease a year on.
Yeah, and the could you please give back more color and the future of growth plan of all of them when a student debt.
And the managers and also more introduction of the structures and or the.
And our triangles and service model.
Oh Gee, that's a good call the ones, you're pushing a woman the.
And the textual young kids and got us off on the size of quip accidents on the.
And I just showed you the quote you a T cell and you each have out of that he has a.
Well me, a jing Tom finish out and all of them the gene and the person. So a handfuls of Johan do you Didnt evening, and that's a non tightening just sort of a sense of that goodbye and.
Just a sheet and Jim that the other gene.
And <unk> have you outside of that no one machine that would be and then teeth and guy called Joe heel, you'll take a couple of when she the he or she go and get you find the hydro switch off with us. So he found a pay down because of your China back already tests and does he have a statement the half of T cells.
And it will mean, a sushi issues of the ACO and nimbleness of Congress Chiffons Tam and the big until you the.
The catalyst that chip and hammer and to go attempting the faucet and once you're in trouble and Daniela cause of that you shouldn't you go kind of so the doctor and.
She had the home a push the mute.
And the taxes, then do the toilet and.
Shelter you could see the children, who don't have a.
And I'll say, a woman, Virginia, and then the type of the synthesis of a fatality.
And I was thinking though.
Yes.
So that's a very good question.
A very insightful actually in terms of the.
And the 1200, a arms and we have currently.
We believe that actually the new triangle mode.
And we'll continue to be able to help us grow the talent.
Pool of the arm as you would imagine that a the service mode happen.
Sort of switched from a single men army a into actually a more coordinate a.
Group of individuals that would be able to serve our clients. So basic and the more influenced a elite our a M.
And it will be assisted with probably solutions.
Experts as well as the fulfillment representative basically the service.
Type of a R M a.
And this particular mechanism actually will enable the younger professionals to actually come into the industry.
And have the opportunity to learn and beside the lead time, which we actually have a very low turnover of ratio.
To actually be able to provide more of a full comprehensive service to our clients. So we believe that to the number of RM actually will continue to see a.
And accelerated growth and in terms of a.
A relationship managers when we are implementing this a triangle mode.
And especially that.
In terms of cities that will be more of this into a more coordinated operational unit rather than a single.
And go point of contact a through.
And through the R&M to serve the client in the past.
Okay.
Jessica and thank you, everyone and thank you and Matt.
Sure.
Yeah.
And <unk>.
Thank you. This concludes our question and answer session I would now like to turn the conference back over to Mr. Penn for closing remarks.
Okay, and thank you investors and analysts for your time.
A very happy and excited to share the strong performance for the full year with you and.
And obviously, if you have a more detailed question and we have arranged one and one sessions later on so we'll talk to you later, thank you very much.
Thank you. The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
And <unk>.
[music].