Q3 2021 Noah Holdings Ltd Earnings Call
$908 9 million up one 1% quarter over quarter, and five 8% year over year.
Speaker 1: 908.9 million, up 1.1%, quarter over quarter, and 5.8% year over year.
Speaker 1: One-time commissions were RMB $215.1 million, down 12.9% amid market turbulence, and increased prudence over policy outlook from the last quarter, but still up 10.4% year-over-year. Recurring service fees were RMB $566.9 million, a record high since less than
One time commissions were RMB $215 1 million down 12, 9% amid market turbulence.
Prudence over policy outlook from the last quarter.
Still up 10, 4% year over year.
Recurring service fees were RMB $566 9 million a record high since listing.
Speaker 1: up 13.7% quarter over quarter, and 1.2% year over year. The growth in returning service fees was attributed to our growing asset under advisory, or AUH.
Up 13, 7% quarter over quarter, and one 2% year over year.
The growth in recurring service fee was attributed to our growing asset under advisory or a eight.
Speaker 1: Performance-based income was RMB 82.1 million, down 32.6% quarter over quarter, and up 16.5% year over year.
Performance based income was RMB $82 1 million down 32, 6% quarter over quarter and up 16, 5% year over year.
Speaker 1: mainly contributed by profitable exits from our overseas PE products.
Mainly contributed by profitable exits from our overseas PE products.
Speaker 1: Income from operations were RMB$228.9M, down 31.8% quarter over quarter and 34.1% year over year, with an operating margin of 25.2%.
Income from operations were RMB $228 9 million gallons.
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With an operating margin of 25, 2%.
Speaker 1: The decline in operating margin was mainly due to increased efforts in talent acquisitions and retentions, continued investments in IT infrastructure, increased marketing activities, including depreciation and advertisement expenses related to our newly acquired headquarters.
The decline in operating margin was mainly due to increased efforts in talent acquisition and retention.
Continued investments in our it infrastructure.
Increased marketing activities, including depreciation and amortization expense related to our newly acquired headquarter.
Speaker 1: as well as the pre-planned execution of our yearly strategic investment budget.
As well as the pre plan execution of a year of strategic investment budget.
Non-GAAP net income for the quarter was RMB $284 2 million and RMB, one point and RMB 1.08 billion for the first three quarters, giving us confidence to meet RMB, one two to $1 3 billion full year guidance.
Speaker 1: non-GAAP net income for the quarter was RMB 284.2 million and RMB 1.08 billion for the first three quarters, giving us confidence to meet RMB 1.2 to 1.3 billion full year guidance.
It's also very encouraging for us to see sustained momentum in client activities and growth in black card and diamond card clients. Despite the challenging market conditions. The number of active clients that transacted with us during this quarter was over 21000 up four 8% quarter over quarter and $3.
Speaker 1: It's also very encouraging for us to see sustained momentum in client activities and growth in black card and diamond card clients.
Speaker 1: Despite the challenging market conditions, the number of active clients that transacted with us during this quarter was over 21,000, up 4.8% quarter-over-quarter and 3.7% year-over-year.
7% year over year.
Speaker 1: The number of black card and diamond card clients also increased by 16% since the end of 2020.
The number of Black card and Diamond card clients also increased by 16% since the end of 2020.
Speaker 1: This growth also makes us the fastest in the industry in the acquisition of core clients compared to an industry average of close to 10%.
This growth also makes us the fastest in the industry and the acquisition of core clients compared to an industry average of close to 10% the.
Speaker 1: The strong growth in Black Card and Diamond Carton Group is a reflection of the successful execution of the Diamond Black Program, supported by our strategic investment budget.
Strong growth in Pi in Black card and Diamond Guard Clunk group is a reflection of the successful execution of the Diamond Black program supported by our strategic investment budget.
Speaker 1: the implementation of NOAA Triangle Service Model as well as the Upgraded Client Acquisition Strategy.
The implementation of Noah Triangle service model as well as the upgraded client acquisition strategy.
Speaker 1: Enlarging this client group, which contributed to around 80% of our AUA, will continue to be one of the key strategic focuses in the long run.
In large in this client group, which contributed to around 80% of our E will continue to be one of the key strategic focuses in the long run.
Speaker 1: Transaction values during the quarter was RMB24.1 billion, down 3.7% quarter-over-quarter and 16.4% year-over-year, mainly due to the overall performance in the secondary markets and the seasonality nature of the primary market fundraising activities. Notably, the amount of private secondary products we placed for our clients was RMB10.6 billion, up 3.7% quarter-over-quarter, mainly due to the overall performance in the secondary markets. Notably, the amount of private secondary products we placed for our clients was RMB10.6 billion,
Transaction value during the quarter was RMB $24 1 billion down three 7% quarter over quarter, and 16, 4% year over year, mainly due to the overall performance in the secondary markets and the seasonality nature of the prime rate primary market fund raising activities, notably the amount.
The secondary products, we placed for our clients was RMB 10, 6 billion up six up 36, 8% quarter over quarter, and 22, 6% year over year.
Speaker 1: up 36.8% quarter over quarter and 22.6% year over year.
Speaker 1: as our clients seek long-duration products when facing market uncertainties.
As our clients seek long duration products when facing market, uncertainties, which demonstrates our clients' sophistication as a result of Noah's continued investor education efforts.
Speaker 1: which demonstrates our client's sophistication as a result of NOAA's continued investor education efforts.
Speaker 1: Our historical data also shows that our onshore private secondary market, secondary product clients who subscribed exited for over three years tend to achieve higher returns in the double-digit range than those who exited earlier.
Our historical data also shows that our onshore private secondary market secondary product clients, who subscribed exited for over three years tend to achieve higher returns in the double digit range than those who exited earlier.
When looking at year to date figure transaction value. During the first three quarters of 2021 was RMB $76 2 billion up three 7% year over year.
Speaker 1: When looking at the year-to-date figure, transaction value during the first three quarters of 2021 was RMB76.2 billion, up 3.7% year-over-year.
Speaker 1: by segment. Net revenues from the wealth management business was RMB 653.6 million.
By segment net revenues from the wealth management business was RMB $653 6 million up four 5% quarter over quarter, and four 1% year over year, which contributed to 72% of total net revenues.
Speaker 1: up 4.5% quarter-over-quarter and 4.1% year-over-year, which contributed to 72% of total net revenue.
Speaker 1: Revenues from the asset management business amounted to RMB241.4 million, down 5.8% year-over-year.
Net revenues from the asset management business amounted to RMB, $241 4 million down five 8% quarter over but up eight 5% year over year.
Speaker 1: Total AUM increased marginally from the previous quarter to RMB 156.1 billion as the growth on PAUM was partially offset by redemptions of real estate-related investments.
Totally increased marginally from the previous quarter to RMB $156 1 billion as the growth on P. A M was partially offset by redemptions of real estate related investments.
Speaker 1: After the continuous efforts in exiting real estate-related assets, we had exited a majority of our onshore real estate assets with only office properties located in Shanghai actively managed by our own operations.
After the continuous efforts exiting real estate related assets, we had to exit the majority of our onshore real estate assets with only office properties located in Shanghai actively managed by our own operations team in the U S rental apartment assets managed by our investment team faced in New York.
Speaker 1: and a U.S. rental apartment assets managed by our investment team based in New York.
Net revenues derived from oversea business was RMB, $250 4 million up 10% quarter over quarter, and 58, 5% year over year maybe.
Speaker 1: Net revenues derived from overseas business was RMB $250.4 million, up 10% quarter over quarter and 58.5% year over year, mainly contributed by carrying income realized by successful exits in the U.S. dollar investment products we placed for our clients.
Mainly contributed by carrying some realized by successful exits in the U S. Dollar investment products, we place for our clients will continue to strengthen our international platform to meet with a growing overseas asset allocation demands from our clients.
Speaker 1: will continue to strengthen our international platform to meet with the growing overseas asset allocation demands from our clients.
On the balance sheet side, we're pleased to announce that our total assets have first time exceeded RMB 10 billion Mark for the first time margin. Another remarkable milestone we know what 16 year history.
Speaker 1: On the balance sheet side, we're pleased to announce that our total assets have first time exceeded RMB 10 billion marks for the first time, marking another remarkable milestone in NOAA's 16-year history. We have a healthy cash balance of RMB 2.8 billion by end of this quarter, as well as an improved debt-to-asset ratio of 22%, with no interest-bearing debt.
We have a healthy cash balance of RMB, two 8 billion by end of this quarter as well as to improve debt to asset ratio of 10, 2% with no interesting with no interest bearing debt.
Lastly, I would like to highlight recent developments in ESG initiatives Gophers investment professionals are working diligently to develop ESG oriented fund products and it will hope to launch these products by as early as next year.
Speaker 1: Lastly, I would like to highlight our recent developments in ESG initiatives. Gophers investment professionals are working diligently to develop ESG-oriented fund products and hope to launch these products by as early as next year.
Speaker 1: In conclusion, we have concluded the quarter with solid financial operating results despite the challenging capital market conditions, demonstrating the resilience in our business model, and we are determined to invest in key areas where we can strengthen our competitiveness through our strategic investment budget, both in the fourth quarter and going forward.
In conclusion, we have concluded the quarter with solid financial and operating results, despite a challenging capital market conditions.
Demonstrating the resiliency of our business model and we're determined to invest in key areas, where we can strengthen our competitiveness through a strategic investment budget.
In the fourth quarter and going forward.
Speaker 1: And now let me pass the speech to our chairlady, Noronga.
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Speaker 2: First, I will talk about my views on the macro level. Then, I will report on the overall performance of Loya in the third quarter of 2021, the development of several major sectors, and the progress of Loya's change as a customer center. Loya's new positioning and future development strategy in a changing market environment. Okay, I will start now. In 2021, we felt more deeply that the Chinese economy has moved from a high-speed growth stage to a high-quality development stage. The Chinese economy has entered a new phase of growth.
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Speaker 2: China will achieve long-term economic development and transform into a high-income country, taking a path of strong and sustainable growth.
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Speaker 2: We are confident in China's wealth management and asset management industry. Continuous economic growth is the core reason for the growth of the two industries. Although China's GDP growth rate is more likely to be higher than that of the United States, China's GDP growth rate is still higher than that of the United States. China's GDP growth rate is still higher than that of the United States.
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Speaker 2: China is aiming at a $20,000 per capita income of $2,030. It should be able to cross the threshold of high income.
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Speaker 2: Although the growth of wealth and income are not linearly related, we believe that when China becomes a high-income country in 2022, the ratio of wealth and domestic production will enter a turning point. At this time, China's family wealth-matching growth rate will exceed domestic production.
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Speaker 2: We believe that China's financial industry will go through a phase of rapid growth and rapid change. The wealth management and asset management industries will be able to make full use of the opportunities available to them.
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Speaker 2: But like all other Chinese-specialized industries, the development path of wealth management and management will be different from that of the West, especially the United States.
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Speaker 2: For example, China's economic growth model, which is based on infrastructure, attaches great importance to encouraging entrepreneurship and improving the income of residents. However, this model is highly dependent on trust.
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Speaker 2: In the first half of 2021, we completed the non-standardized asset clearing and laid the foundation for our future health development.
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Speaker 2: Today, we have the honor to stand on the turning point of the industry's history, deeply aware of the growth of the future and the growth of quality, and need to focus more on the wealth management and asset management industry.
Speaker 2: Loya has also made a comprehensive transition from a company that started in the early days of entrepreneurship to a company that focuses on customers and lives as a bottom line.
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Speaker 2: In the first three quarters of this year, with the advancement of the first-line service model and the systematic development from the group to the city, the number of customers in Luoyang has maintained a satisfactory growth rate of 16% from the end of 2020 and has exceeded 8,000.
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Speaker 3: Thank you, Grant. I will first talk about my view and my consideration, and then report on NOAA's overall performance in the third quarter of 2021, the development of major business segments, the progress of NOAA's client-centric comprehensive reform, as well as NOAA's new positioning and future development strategy under the ever-changing market environment. We will then open the floor for questions.
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Client centric comprehensive reform as long as no new positioning and future development strategy under the ever changing market environment. We will then open the floor for questions in.
Speaker 3: In 2021, we gained a more immersive experience of China's economy changing from high-speed growth to high-quality development. China's economy has entered an era of new certainty, and the only thing that can be expected is certainty.
In 2021, we gained a more immersive experience of China's economy changing from high speed growth two high quality development. China's economy has entered an era of new certainty and the only thing that can be expected, especially team invented and restrained Mccann Adams go hand in hand, China not only.
Speaker 3: Inventive and restrained mechanisms go hand-in-hand. China not only attaches importance to the quantity, but also pays more attention to the quality of development. So as to realize the effective quantitative growth with substantial improvement of quality, the nation will achieve long-term economic development, transform into a high-income country, and is on track to achieve robust and sustainable growth.
Attaches importance to the quality quantity, but also pays more attention to the quality of development. So as to realize that the effective quantity tends to grace with substantial improvement of quality. The nation will achieve long term economic development transform into a high income country and it's.
On track to achieve robust and sustainable growth.
Speaker 3: Driven by the sustained economic growth, we are confident about the prospects of China's wealth management and asset management industry.
Driven by the sustained economic growth, we are confident about the prospects of China's wealth management and asset management industry or does the country's GDP was is adjusting to a more sustainable level. It should still maintained an average annual growth of four 5% to reach 29 trillion U S dollars before 'twenty.
Speaker 3: Although the country's GDP growth is adjusting to a more sustainable level, it should still maintain an average annual growth of 4.5% to reach US$29 trillion before 2030. Currently, China is moving smoothly towards the per capita income target of US$20,000 in 2030 and should be able to cross the high income threshold.
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Speaker 3: Although wealth growth is not linearly related to income growth, we believe that when China becomes a high-income country in 2022, its wealth-to-GDP ratio will enter an inflection point.
Although well space is not linearly related to income growth, we believe that when China becomes a high current income country in 2022, its wealth to GDP ratio will enter an inflection point and thereafter, the compound growth rate of China's household wealth will exceed that of GDP.
Speaker 3: and thereafter, the compound growth rate of China's household wealth will exceed that of GDP.
Speaker 3: We think that China's financial industry is going to experience a stage of rapid growth and swift change. The wealth management and asset management industry will be able to take full advantage of these opportunities.
We think that China's financial industry is going to experience a stage of rapid growth and Swift change the wealth management and asset management industry will be able to take full advantage of these opportunities like all other industries with Chinese characteristics. The development path of wealth management and asset management will be different from <unk>.
Speaker 3: Like all other industries with Chinese characteristics, the development path of wealth management and asset management will be different from that of the West, especially the United States. For example, China's infrastructure-led economic growth model attached great importance to encouraging entrepreneurship and increasing residence income. This model was highly dependent on credit system.
That is the west, especially the United States for example, China's infrastructure led economic growth module attach great importance to encouraging entrepreneurship and increasing residents' income.
This model was highly dependent on credit support so it created a large number of underlying assets for fixed income products. However, not all of these assets are suitable for the wealth management industry.
Speaker 3: so it created a large number of underlying assets for fixed income products. However, not all of these assets are suitable for the wealth management industry.
Speaker 3: After two years of unswerving efforts in transformation, NOAA took the lead in successfully clearing non-standardized assets in the first half of 2021, laying a solid foundation for our healthy development in the future. Today, we stand calmly at a historical turning point of the industry and deeply realize that to achieve future development and quality-guaranteed growth, we need to stay focused on the wealth and asset management industry more.
After two years of us living efforts in transformation Noah took the lead in successfully clearing now standardized assets in the first half of 2021, namely a solid foundation for a healthy development in the future.
Today, we stand currently at a historic low training point of the industry and deeply realized that to achieve future development and quality guaranteed grows we need to stay focused on the wealth and asset management industry move.
Speaker 3: Noah has also made a comprehensive transformation from a product-driven firm in the early establishment to a client-centric and survival-as-the-bottom-line company.
No. It has also made a comprehensive transformation from a product driven some in the early establishment to a client centric and survival as the bottom line company.
Speaker 3: In the first three quarters of this year, with the adoption of the NOAA Triangle Service Model and the systematic business development from the headquarters to the front-line cities, NOAA's diamond and black card clients continued to maintain a satisfactory growth, up 16 percent over the end of 2020, exceeding 8,000 people.
In the first three quarters of this year with the adoption of the NOAA triangles to this model and the systematic busy business development from the headquarter to the frontline cities, there with Diamond and Black card clients continued to maintain a satisfactory growth up 16% over the end of 2020 exceeding 8000 people.
Speaker 2: In the third quarter of 2021, Loya achieved a sales net income of 9.1 billion yuan and a growth rate of 5.8%, with a management fee of 5.7 billion yuan. With the increase in the size of AUM, it has set a new high in history. The non-GAAP net profit of the shareholders is 2.8 billion yuan. With the strategic investment budget of the group released on time, the share price fell by 4.2%. As of September 30, the net profit has been accumulated to 10.8 billion yuan. The super progress has completed 90.3% of the net profit.
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Speaker 2: In terms of core business data, the total net worth of the third quarter is 24.7 billion yuan. The total net worth of the previous three quarters has continued to grow to 7.61.6 billion yuan, an increase of 3.7%. Among them, the total net worth of the private securities fund is 105.5 billion yuan, an increase of 22.7%. The return on investment has increased by 36.8%. The public funds have increased by 89.4 billion yuan. Due to the impact of the overall market performance, the return on investment has also decreased.
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Speaker 2: I am very happy to report to you that the number of Loya Diamond customers increased by 14.6% in the first three quarters of 2021, and the number of Heika customers increased by 22.3% in the first three quarters of 2021. The iron triangle service model is recognized by Loya's core customer group. Our customer activity is steadily increasing at the same time. In the third quarter of 2021, Loya's high-resolution customer group The number of active customers increased by 3.7% in the same period as the public fund, and increased by 4.8% in the same period.
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Speaker 2: We have rebuilt the entire business flow system, such as customer development, customer management, product and solution solutions, and operation management. Our KYC, KYP, and KYA system labels have been constantly improving, forming a management benchmark for the group's Iron Triangle team.
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Speaker 2: and the customer and product's compatibility are gradually realized with more precise management. The upgraded CRM system also provides a mobile management for the entire lifecycle of the customer for Lutris. Not only that, we also realized the digitization of the entire process at the product selection stage, creating a comprehensive, diversified, and high-quality product price. The product introduction process is more standardized and integrated.
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Speaker 2: The wealth management market is constantly maturing, and customers are becoming more rational. OER has introduced organizational change and broken the financial incentive mechanism similar to insurance sales in the past. As a customer center, we want to serve high-end customers with the best people. The density of first-line customer managers continues to improve. At the same time, we reform the business flow and let high-end customers enjoy the same service as institutions. As a customer center, we use a small team to meet the customer's multi-dimensional needs and maximize the satisfaction of new customers.
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Speaker 3: In the third quarter of 2021, NOAA achieved net revenues of RMB 910 million, an increase of 5.8% a year, of which the recurring service fees reached RMB 570 million due to the snowball effect of the scale of our assets on the advisory, setting a record high.
In the third quarter of 2021, Noah achieved net revenues of RMB $910 million, an increase of five 8% EMEA of which the recurring service fees reached $570 million due to the snowball effect of the scale of our assets under advisory setting a record high as we release it.
Speaker 3: As we released the Group's Strategic Investment Budget as we planned, non-GAP net income attributable to shareholders was RMB280 million, a year-on-year decrease of 4.2%.
Roofs strategic investment budget as we planned non-GAAP net income attributable to shareholders was RMB $280 million a year on year decrease of four 2% as of September 30th.
Speaker 3: As of September 30, the accumulated non-GAAP-inactive income reached RMB1.1 billion, completing 90.3% of the guidance ahead of schedule.
Simulated non-GAAP net income reached RMB, one 1 billion completing 93% of the guidance ahead of schedule in terms of core business data transaction that are in the third quarter was RMB 24, 1 billion. The total transaction value in the first three quarters continued to grow reaching <unk> 76.
Speaker 3: In terms of core business data, transaction value in the third quarter was RMB24.1 billion. The total transaction value in the first three quarters continued to grow, reaching RMB76.1 billion, a year-on-year increase of 3.7%.
$1 billion, a year on year increase of three 7% among them the transaction value of private secondary funds was renminbi $10 6 billion, an increase of 22, 7% year on year, and 36, 8% quarter on quarter, while the transaction value of mutual funds was RMB $8 94 billion.
Speaker 3: Among them, the transaction value of private secondary funds was RMB10.6 billion, an increase of 22.7% year-on-year and 36.8% quarter-on-quarter, while the transaction value of mutual funds was RMB8.94 billion, which decreased both year-on-year and quarter-on-quarter due to the overall market performance.
Which decreased both year on year and quarter on quarter due to the overall market performance.
Speaker 3: With the transformation, we reiterated our focus on serving high-net-worth and ultra-high-net-worth clients as our core client base. I'm very glad to report that, in the first three quarters this year, our diamond card clients increased 14.6% and our black card clients grew 22.3%.
With the transformation, we reiterated our focus on serving high net worth and ultra high net worth clients as our core client base.
Very glad to report that in the first three quarters. This year, our diamond card clients increased to 14, 6% and our Black Hawk clients grew 22, 3%, but nowhere triangle service model has been recognized by our core client base at the same time, our clients' activities improved steadily in the third quarter of 2000.
Speaker 3: The NOAA Triangle Service Model has been recognized by our core client base. At the same time, our clients' activeness improved steadily. In the third quarter of 2021, the total number of active clients, including mutual fund-only clients, increased by 3.7% year-on-year and 4.8% quarter-on-quarter. The number of conventional active clients increased by 25.5% year-on-year.
21, the total number of active clients, including mutual fund only clients increased by three 7% year on year, and four 8% quarter on quarter.
A number of conventional active clients increased by 25, 5% year on year.
Digital transformation has helped in a reform from product driven to client centric and we have increased investment in technology in the past two years.
Speaker 3: Digital transformation has helped in our reform from product-driven to client-centric, and we have increased investment in technology in the past two years. The group's technology center has had 13% of new hires this year, reshaping the whole business flow system of client development, client operation, products and solutions, as well as operation management.
Groups Technology Center has had 13% of new hires this year reshaping the whole business flow system of client development client operation products and solutions as well as operation management with a continuous improvement of advocate when I see him I P. KYA system enables the group's management dashboard of Noah triangle.
Speaker 3: With the continuous improvement of our KYC, KYP, KYA system labels, the group's management dashboard of neural triangle teams has been formed, connecting the 3K application scenarios.
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In marketing.
Speaker 3: The marketing map integrates all kinds of labels into the business development process of relationship managers, making the client profiles more accurate and the management of client and product matching increasingly refined.
The marketing map integrates all kinds of labels into the business development process of relationship managers.
Making the client profile more accurate and the management of client and product matching increasingly refined.
Speaker 3: The upgraded CRM system also provides relationship managers with mobile management options throughout the lifecycle of clients.
The upgraded CRM system also provides relationship managers mobile management options.
Throughout the lifecycle of clients more of them and the product screening and we have also realized the digitalization of the whole province, creating a full category diversified and high quality product shelf as well as making the product launching process more standardized and systematic.
Speaker 3: The wealth management market is constantly maturing, and clients are more rational. Noah has introduced the organizational reform, breaking the past incentive mechanism for relationship managers that was similar to insurance.
The wealth management market is constantly maturity and clients are more rational Noah has introduced the organization a reform breaking the past incentives Mccann ism for relationship managers that were similar to insurance sales.
Speaker 3: The client-centric philosophy requires us to serve high-net-worth clients with top-notch personnel and the talent density of our frontline relationship managers continues to increase.
The client centric philosophy requires us to serve high net worth clients with top notch personnel and the talent density of our frontline relationship managers continues to increase we.
Speaker 3: We have also reformed our business process so that high net worth clients can enjoy the same services available to institutional investors. By taking clients as the center and meeting the multidimensional needs of clients with small service teams, the satisfaction rate of core clients has improved greatly.
We have also reformed our business process, so that high net worth clients can enjoy the same services available to institutional investors. If I take your clients at the center and meeting the multi dimensional nature of clients with small service teams the satisfaction rate of core clients has improved greatly.
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Speaker 2: As of September 30, 2021, the size of Gefei's asset management is 1,564.8 billion yuan. This result is obtained on the premise that the non-standardized assets are zero and all deposits are zero. As you can see, the gap between the standardized assets of Zengliang and the supplementary assets of Gefei has achieved a steady recovery. The effect of the continuous optimization of the asset management structure and the rolling snowball will be more obvious in the next few years. The size of Gefei's asset management is 1,564.8 billion yuan.
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Speaker 2: Smoov's equity management scale is 1,304 billion RMB, which has increased by 2% compared to the end of the last quarter. Gofei's change of customer-centered positioning is to enhance the initiative management ability, insist on the ability to study and drive investment results, and become the first brand to be a customer wealth base.
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Speaker 2: At the end of the Sino-U.S. stock market, the S-bond, which was awarded by Gefei Luhuo, has basically completed its investment in Q5. Q6 will be officially launched in November .
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Speaker 3: As of September 30th, 2021, thanks to the zero distribution of non-standardized assets and the redemption of all of these assets, Google's AOM reached the reaming B100.
As of September 32021, thanks to the Veeva distribution of no standardized assets and the redemption of all of these assets.
AUM reached RMB $156 1 billion it can be seen that incremental public securities have supplemented GAAP, thus achieving stability and recovery of the total and the continued optimization of asset management structure and the snowfall in fact, it will be more of these in the next few years.
Speaker 3: It can be seen that incremental public securities have supplemented the gap, thus achieving stability and recovery of the total AUM. The continued optimization of asset management structure and the snowfall effect will be more obvious in the next few years.
Speaker 3: The public securities assets actively managed by Gopher kept stable in the third quarter at 11 billion RMB, same as the end of the last quarter. The AOM of private equity was RMB 130.4 billion, an increase of 2% over the end of the previous quarter. Gopher's client-centric transformation is positioned to improve.
The public securities assets actively managed by Gopher kept a stable in the third quarter at 11 at.
At 11 billion Renminbi same FTE ended the last quarter. The AUM of private equity was there maybe a 134 billion an increase of 2% over the end of the previous quarter goes with client centric transformation is positioned to improve.
Speaker 3: management capacity, adhere to the research-driven investment performance, and further become the preferred wealth management brand with stabilizer functions for clients. It is worth mentioning that
Management capacity adhere to the research driven investment performance and further become the preferred wealth management grant with stabilized assumptions for clients. It is worth mentioning that.
Speaker 3: As of September 30, the investment team of GoFundMe's target strategy product, classified as Public Securities, has effectively reduced portfolio volatility and obtained relatively stable excessive returns, with positive, stable and balanced funds each achieved their target investment performance.
As of September 30th the investment team of Gopher target strategy product classified as public securities has effectively reduced portfolio volatility and obtained relatively stable excessive returns with a positive stable and balanced funds each achieved their target investment performance.
Speaker 3: On private equity side, Gopher's award-winning S Fund Series 5 has basically completed its investment process and Series 6 has been officially launched in November .
Private equity side Gophers award winning as Bond series five has basically completed its investment process and series six has been officially launched in November Gopher has built a blueprint for digital transformation in 2021, and 2022 Gopher mainly focuses on the objectives of Digitalized.
Speaker 3: Gopher has built a blueprint for digital transformation. In 2021 and 2022, Gopher mainly focuses on the objectives of digitalizing investment and research, data governance and structuralization, as well as continued client experience.
Investment in research data governance and structure of <unk> as well as continued client experience improvement in the third quarter Gopher launched the fund investment and research management system, which provides the multi strategy and investment team with a standardized evaluation and farm to entry process combining.
Speaker 3: third quarter, Gopher launched the Fund Investment and Research Management System, which provides a multi-strategy investment team with a standardized evaluation and fund pool entry process, combining quantitative analysis and qualitative evaluation.
Wanted to just analysis and qualitative evaluation.
Speaker 2: The regulation of qiyan is global, and the return is a life line, a barrier to competition. Luoyang respects common sense and respects the market. Since the first day of the initiative, there has been no one-cent capital pool, no steel team, no limit mismatch and leverage configuration, and no cross-border operation of funds, etc. Different countries and regions in our industry have insisted on the return of qiyan.
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Speaker 2: After 17 years of development, we are becoming more and more aware of our position and more determined to grow in the wealth management and asset management industry. Loya's core values are to stick to the client as the center, to live as the bottom line, to connect the world's best asset management companies, to continue to improve and to become friends over time.
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Speaker 2: In 2017, President Xi spoke at the Central Economic and Trade Conference that China's high-quality development is a good way to meet people's growing needs for a better life.
I mean, she is she says she took as well since you're going to acquire Santana. Some good accounts alongside that Susan Engel Haldeman's will mute the returns on the main hospital Xi'an.
Speaker 2: is to reflect the development of the new development concept, to make innovation the number one driving force, to make coordination the core characteristic, to make green the universal form, to make openness the way to avoid oil, and to make sharing the fundamental goal of development. We are deeply committed to this goal. Since 2014, NOEA has issued a report on sustainable development every year. At this month's inauguration, there are industrial and information-based research and development projects that have been developed by NOEA for the past three years. NOEA's research and development projects
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Speaker 2: The Ministry of Industry and Industry Affairs, which is jointly organized by the World Contract Organization and the United Nations, has been awarded the highest AAA-level award by the Ministry of Industry and Industry Affairs for its outstanding enterprise social responsibility report.
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Speaker 2: is the only private financial company with such a high level. This year, we also won the annual ESG Responsibility Entrepreneurship Award awarded by the China Enterprise Social Responsibility Summit. Noya will continue to develop with high quality and contribute to sustainable development and green GDP. Now we can enter the Q&A session.
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Speaker 3: Stricter regulation is a global phenomenon. Compliance is the lifeline and the barrier of competition. NOAA respects common sense and reveres the market. From the first day of our establishment, there has been no capital pool, no implicit guarantee, no duration mismatch, no leverage allocation, and no cross-border capital operation. NOAA operates fully compliant in the countries and regions where we hold life.
Stricter regulation is a global phenomenon compliance is a lifeline and the barrier of competition no one respects commonsense and reviews the market from the first day of our establishment there has been no capital no implicit guarantee no duration mismatch no leverage allocation and no cross border capital Opera.
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Now operator fully compliant in countries and regions, where we hold licenses. After 17 years of development. We are increasingly clear about our market positioning and determined to be deeply rooted in the wealth management and asset management industry.
Speaker 3: After 17 years of development, we are increasingly clear about our market positioning and determined to be deeply rooted in the wealth management and asset management industries.
Speaker 3: Now, with core values of client-centric and survival as the bottom line, we connect with the world's leading asset management companies, make continuous improvement, and make friends with time.
So let's call that is our client centric and survival as the bottom line, we connected with a world leading asset management companies make continuous improvement and make friends with time in.
Speaker 3: In 2017, President Xi Jinping said at the Central Economic World Conference
In 2017, President XI Jinping said at Central Economic World Conference.
Speaker 3: China's high-quality development is there to meet people's growing needs for a better life, to reflect new development concepts, with innovation as the foremost driving force.
China of high quality development is that to me the people's growing needs for a better life to reflect new development concept with innovation as the four months driving force coordination as an endogenous Asia Green as a universal philosophy opening as a requisite way and sharing as the fundamental go of development.
Speaker 3: Coordination as an endogenous feature, green as a universal philosophy, openness as a requisite way, and sharing as the fundamental goal of development.
We couldn't agree more.
Speaker 3: We couldn't agree more. NAO has been releasing a Corporate Sustainability Report every year since 2014.
Never has been releasing our corporate sustainability report every year since 2014 during the China International import Expo. This month at the International Forum under the corporate social responsibility co sponsored by the Ministry of industry and information technology, and the United Nations Global compact the ministry of industry and information.
Speaker 3: During the China International Import Expo this month at the International Forum on Corporate Social Responsibility co-sponsored by the Ministry of Industry and Information Technology and the United Nations Global Compact, the Ministry of Industry and Information Technology awarded NOAA the highest AAA rating for excellent corporate social responsibility reporting.
Technology Award didn't know what the highways the triple a rating for excellent corporate social responsibility reporting, making nobody only private financial enterprise awarded with this high rating in 2021. We also wanted to ESG responsible Enterprise award of the year granted by the Summit Forum on CSI in China.
Speaker 3: making NOAA the only private financial enterprise awarded with this high rating.
Speaker 3: We also won the ESG Responsible Enterprise Award of the Year, granted by the Summit Forum on CSR in China.
Speaker 3: NOAA will adhere to high-quality development and keep continuing to the sustainable
Now what will adhere to high quality development and keep continuing to their sustainable.
Sorry, keep contributing to the sustainable development and Green GDP now that's open the floor for questions. Thank you.
Speaker 3: keep contributing to the sustainable development and green GDP. Now, let's open the floor for questions.
We will now begin the question and answer session.
Speaker 4: We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the key. And to withdraw your question, please press star then two. And at this time, we'll pause momentarily to assemble our roster.
To ask a question you May press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing.
And to withdraw your question. Please press Star then two and at this.
We will pause momentarily to assemble our roster.
Oh.
Speaker 4: And the first question will come from Ethan Wong with CLSA. Please go ahead.
And the first question will come from Ethan Wong with C. O S. A please go ahead.
Speaker 5: Hello, Mr. Wang. Hello, Mr. Pan. I'm Ethan. I have two questions. The first question is about the head-to-head photographs. Because we see that there are a lot of brokers who are doing a lot of head-to-head photography. Everyone gets a head-to-head photograph and wants to use AUM-based financial management to transform. If this becomes a trend in the future, what will happen to us?
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Speaker 5: The second question is about the recent supervision of cross-border trading.
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Speaker 5: There is some criticism. We see that there are discussions in the industry. Everyone is starting to pay more attention to professional management in this environment. Some standardized products, such as foreign products. Maybe everyone is more interested now. Can you please introduce to the audience what is the current layout of our Nuoya in this non-residential area?
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Speaker 5: Hi, my name is Ming, I have a few questions. The first one is on the investment advisory survey case. So China has been giving out investment advisory.
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Speaker 5: licenses to financial institutions, and we're seeing brokers are renting out their services on this front. Just wondering, is that going to change the competition landscape? And how does NOAA perceive this new trend of investment advisory services?
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Speaker 5: And our second question is on the recent criticism from regulators on cross-border focus. And we've seen a ramp up interest under these circumstances on the professional managed overseas products from Chinese investors. So could management help us give us more color on NOAA?
Question.
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Speaker 5: product offerings on this phone.
Augment on this one.
Speaker 2: Okay, thank you for your question. First of all, we also think that the investment brand is still a very large market, and we are also actively applying for it. At the moment, it seems that the third-party independent trading institutions may not be able to get it until the next batch.
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Speaker 2: But I don't think it will have a big impact on our business side.
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Speaker 2: We hope you enjoyed the video. We hope you enjoyed the video. If you have any questions, please leave them in the comments. If you have any questions, please leave them in the comments. Thank you very much for watching. Please subscribe to our channel.
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Speaker 2: We already have a good customer base and a good ability to build. As for the client's photo, it's a bit like a semi-commitment. Recently, you can see that regulators are also talking about this kind of way of investing. You can't simulate the effect. It can't be like a virtual account. So we think that at least for now, the impact is not very big. We are also actively fighting for the promotion of this brand.
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Speaker 2: In addition, in terms of cross-border vouchers, I think that the regulators mainly do not approve of this model. It may still be a model in which domestic customers use the method of moving ants to open overseas. We have always believed that this model has a long-term risk and is problematic.
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Speaker 2: But in Luoyang, we serve high-end clients, and in 2012, we started to have our own store overseas. Actually, for us, it's more like...
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Speaker 2: Chinese who are already overseas, their assets and accounts are actually overseas. Many Chinese who are overseas, they vote for China. Voting for China's Chinese stocks is a key point of our service. So in this regard, I think we still have an advantage.
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Speaker 2: and you can attend all the highlights of the bill to have to tap
Speaker 2: In fact, we have been promoting this area for a long time, and I think the market is quite large, especially this year.
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Thanks Ethan.
Speaker 1: Thanks, Ethan. I'll translate Chairlady Wang's answer and also have a little bit of my own input.
Do you want.
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Speaker 1: In terms of the IC license, we agree with you that it's probably going to be a pretty big market and we're in the process of applying since last year.
In terms of IP license, we agree with you that it's probably going to be a pretty big market.
We're in the process of applying since last year.
Speaker 1: But I think our view is that for the independent wealth managers, probably we'll be in the next batch of the application after the water has been tested for a few months. And we do believe that it probably doesn't have as much impact.
But I think our view is that for the independent wealth managers are probably will be in the next batch of the application after.
The water has been tested.
For a few months.
And we do believe that it probably will have as much impact on us.
Speaker 1: on us, as one would imagine, as you can see that we actually break down the clients into three groups.
As one would imagine.
You'd see that we actually break down the clients into three groups.
Speaker 1: based on their investment preference. Obviously, the first type is the product-driven.
Based on their investment preference obsolete type of a product driven.
Speaker 1: You know, they basically just go after the right products they like. And the second one is that they just pretty much give you discretion in terms of investing. We believe that the ISD license is probably targeting the semi-discretionary clients.
You know the basic just go after the right product they like it.
One is that they just you know pretty much give you have discretion in terms of investing.
We believe that the IFC lives is probably targeting the semi discretionary clients they.
Speaker 1: They want to have a little bit of participation in the investment process and at the same time actually receiving professional advice from the ISO.
They want to have a little bit.
Participation in the investment process.
And at the same time actually receiving professional advice from the Ics.
Speaker 1: You know, NOAA is pretty good on the first two types, product-driven, square-stranded management. I'm not saying that we're giving up on the last type.
No. It was pretty good on the first two types into the private product or events discretionary management now.
Saying that we're giving up on the last types, but.
Speaker 1: which don't think that, honestly, the industry is ready to provide professional advice, plus the actual portfolio. As you know, the regulators actually don't allow virtual portfolios, so it has to be an actual portfolio of investments. So we believe it's probably still in the process of water testing, but obviously we'll be very active in pursuing this license.
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You know that the regulator is actually doesn't allow virtual portfolio. So it has to be an actual portfolio.
Of investments so believe it's probably still in the process of water testing.
Obviously will be a very active pursuing as a license.
Speaker 1: I think one of the things that I would like to mention is that Gopher's target return products actually is, to some extent, actually help the client with their purpose of having a diversified portfolio, similar to what I said.
I think one of the things that I would like to mention that golfers target return pilots actually is.
You know to some extent actually helps the client with their a purpose of having a diversified portfolio similar to what our system.
Speaker 1: So on the second question, you know, we understand from a regular standpoint, the pressure actually comes from whether or not, you know, they're helping certain clients to move sort of assets overseas, you know, in little pieces. We think it's probably a dangerous move, and that's why, you know, we sort of understand why the regulators are getting nervous on that. But in terms of NOAA, you know, when we have our first branch, you know,
So on the second question.
We understand from a regular standpoint are the projects that comes from whether.
Whether or not.
You know they are helping certain clients to move sort of asset overseas.
Pieces, we don't believe we think it's a probably dangerous move that's why.
You know sort of understand why the regulators getting nervous on that but in terms of Noah.
And our first branch in Oversea branch in Hong Kong in 2012.
Speaker 1: Overseas branch in Hong Kong in 2012 You know, we have been pretty much serving clients who already have assets overseas
We have been pretty much serving clients, who already have assets overseas.
Speaker 1: And, you know, lots of the investment directions is actually they try to invest back into China's development opportunities. So we believe actually we hold more advantage on that type of investment.
Lots of the investment directions was actually to try to invest back into China's development.
Opportunities. So we believe actually we hope more advantage on that type of.
Speaker 1: So, we don't think it's going to have too much impact on us. Our ESOP plans and ESOP business is pretty much helping clients basically pure trust of us. We actually don't interfere with any of their fund transfers.
So we don't think it's going to have too much impact on us.
These are plans and you saw business is pretty much helping our clients are basic.
Basically pure trust services.
Lastly, don't interfere with any of their fund transfers.
Okay.
But to answer your question Okay. Thanks.
Thank you.
Speaker 4: The next question will come from Nick Sue with Credit Suisse. Please go ahead.
The next question will come from Nick <unk> with Credit Suisse. Please go ahead.
Thank you Mike.
We'll take another question.
Speaker 5: My question is, NOAA is selling other people's mutual funds in a big way, in a very good way. In the meantime, your asset management business in the private market,
Michael.
No.
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In the meantime.
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Speaker 5: is also booming. And your targeted portfolio, in my view, is very much...
Good morning, Andrew.
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Sure.
The DPI business my question.
Speaker 6: My question to Mr. Pan is, since you are doing basically everything...
Mr Partners.
We are doing basically everything.
Not in the launch.
Speaker 6: that's a large as much as is doing. Have you ever thought of
Have you I was looking for.
Speaker 6: are converting NOAA into a food-scale advertising company in China context, a mutual fund company with the private market capability.
No.
Good scale.
And kind of context.
Mutual fund company with apartment market capability.
Speaker 6: My question is, Mr. Pan, the Nordic public fund sales
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Speaker 7: Since Noya is already doing a lot of good business for a large fund company, has Noya ever considered to upgrade or increase public funds in China? This way, all of your external funds and your own funds can all be brought together. Thank you.
Yeah.
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Would you agree with that.
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Speaker 2: This is a very good question. Actually, I also hope to be able to do this. But I need you to communicate with regulators.
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Speaker 2: In China, it is still a big challenge for a company like Luoyang to apply for public photographs overseas. Otherwise, you have to apply in your own name. For example, Yingze and I have to apply in our own name.
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Speaker 2: This may not be completely consistent with the interests of overseas shareholders. Thirdly, if we apply for public funds, all of our private funds must give up and return to the public fund system. You see, China has obtained private funds and public funds.
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Speaker 2: and now all the people who used to work in the private sector are working in the public sector. For us, this is still a certain challenge. One is with Loya. Actually, Loya is a three-piece business. Financial management, asset management, and international.
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Speaker 2: private banks and the financial management sector. So we have repeatedly discussed this issue. Later, we felt that maybe sometimes the supervision requirements also make us more focused on the high-level private bank sector. Because you can only do this. This is my idea.
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Thank you Nick Yeah, it's a great question, we actually.
Speaker 1: Thank you, Nick. Yeah, it's a great question.
Speaker 1: We actually think that probably you could, you know, help us communicate with.
Think that probably you could help us communicate with them.
Speaker 1: The application process for mutual fund licensing in China is very stringent. So you either hold a sort of main license domestically already, or you have to basically apply in the name or in the identity as an individual. So for example, maybe Chairlady Wang and Mr. Yin, they could apply for that.
Regulators that ties the application process for mutual fund license in China.
Very stringent.
You either put a sort of mainline.
Mainline domestically already or you have to basically apply.
And in the NIM in the identity of the individual so for example, maybe chairlady Wang and Mr. Ian.
Fly for them as individuals.
Speaker 1: individuals, but obviously that's not going to serve the group well from the holding companies.
But obviously, that's not going to serve the group well.
From the holding company standpoints so.
Speaker 1: So that's one of the strategic points that we have talked about in the past, but we didn't believe that with this effort and everything that comes with it, you probably are required to separate or spin off any privately raised funds business if you do hold a mutual fund like that.
That's one of the strategic plan that we have talked about in the past, but we didnt believe that you know with this effort and everything that comes with a you know you probably are required to separate or spin off any privately raised funds business, but if you do hold a mutual fund license.
Speaker 1: And, you know, considering what we have right now, you know, as wealth management, asset management, and also, you know, global intelligence, you know, by giving all these up, having only mutual fund licenses, I think that's going to be a pretty major transformation, especially in the climate segmentation from high net worth.
And considering what we have right now and even as wealth management asset management and also.
Our global intelligence.
By giving all these up having only mutual fund license I think that's going to be a pretty major transformation, especially in the climate segmentation from high net worth through.
Speaker 1: you know, more or less to the retail side. So, you know, it's obviously, you know, one of the main licenses that.
More or less to the retail side so.
Uh huh.
It's obviously.
One of the main licenses that.
It probably will help boost our business, but at the same time.
Speaker 1: probably will help boost business, but at the same time, I think that it changes our entity and also the segmentation of clients.
Think that it changes on you know I E.
So the segmentation of clients so.
Hopefully that answers your question.
The next question will come from <unk> with <unk> Securities. Please go ahead.
Speaker 4: The next question will come from Yi-Wan Lee with Gojian Securities. Please go ahead.
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Speaker 6: Hello, Mr. Wang and Mr. Pan. I'm Li Jixuan from the State Council. My question is about the rising cost of management in the third quarter.
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Speaker 8: I think this should reflect the long-term impact of the management layer on our company.
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Speaker 8: So, my question is that, or we have...
No.
My My question that we have we have.
Speaker 8: a sharp increase in the management cost and such as the compensation, selling expenses, and we would like to ask how the management will interpret this.
A sharp increase in the mine in the management of cost and such.
Much of the competition.
Thank you.
We would like to ask.
How is the management.
He is a pretty easy to do.
Speaker 8: in the process and what's the future plan for
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Speaker 1: Okay, Mr. Li, to answer your question, in terms of manpower cost, we did see an increase in the third quarter. This is basically the same as...
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Speaker 1: We have a consistent strategy for 2021. Of course, there are some seasonal factors. We have made an overall adjustment in the 3rd quarter of 2021. We hope to retain our outstanding talents from a technical point of view.
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Speaker 1: Including our new effective management method at 10 o'clock on the front line, which actually adjusts the old and new standards of our front-line financiers.
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Speaker 1: So this is also a reflection of the situation. We expect that, apart from these two factors, there will be a bit of a downturn in the quarter or the whole year. But in terms of the entire talent strategy, it does reflect our overall direction.
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Speaker 2: I would like to add that we have been talking about the reform in Luoyang. What is the core of the reform? Actually, it is still different in terms of the first-line interest allocation mechanism.
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Speaker 2: In the past, 100% of our employees left the company. But we are still learning. It's a little bit like the insurance agent in the past. He has a relatively low interest rate, but the bonus is relatively high.
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Speaker 2: But after this year's 630, we have greatly improved the bottom line of our employees.
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Speaker 2: satisfaction for our customers, which of course has its own scale, its own standard, and its own quality of work."
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Speaker 2: I think it's a change in management philosophy. We hope that when they get Loya's card, they will be respected, and not just serve the customer's AUM and help the customer provide value.
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Speaker 2: In fact, we can also see that some large insurance companies in China have used this kind of cross-sales in the past, and we think it is hard to maintain this model of high commission and zero interest, because it cannot direct the interests of the financiers and customers to be completely consistent, and focus on the customers. In fact, this is the core point of a reform. Also, because we have greatly improved the bottom line, in fact, the quality and density of our talents are significantly improved in this process. In the past, it was more difficult for us to recruit good people from private banks, because our bottom line was not good enough.
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Speaker 2: We hope that in the future, Loya's financial advisor will issue a business card, and in the near future, it will be the same as UBS, CS, and Meilin, and will be respected.
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Speaker 1: So, Chair Lady Wang actually wishes to supplement a little bit on this as it's a very important point that, you know, the actual structural change.
So chaired anyone actually wishes to supplement a little bit on this asset it's very important point that.
You know that the extra structural change.
Speaker 1: actually comes as a result of the transformation that we're doing. As you might be familiar that in the past, although our relation managers are full-time employees of ours, but their pay structure actually has a lower base pay but a higher commission component in the past.
Actually comes as a result of the transformation that we're doing.
As you might be familiar that in the past, although our relationship managers are full time employees.
But they are both structure actually has a lower base pay for the higher Commission.
Component in the past scheme, but after the.
Speaker 1: But after the, since the third quarter of this year, we have increased the portion of the base pay up significantly. And their bonus actually now is tied with not only with the sales and transactions, but also with the satisfaction from the clients, as well as the quality of operation.
Since the third quarter of this year, we have increased the portion of the base pay up.
Significantly and their bonus actually now is tied with not only with the sales of transaction, but also with the satisfaction.
From the clients.
As was the quality of operations of services. So.
Speaker 1: So we want to transfer, basically they are not being viewed as a salesperson, but rather a private banker or investment consultant. So when they actually pull out their business card, they will gain the respect they deserve.
So we want to transfer.
Basically they are not being viewed as a salesperson, but rather a private bank for our investment consultant so when they actually pull out of their business card.
They will get in the respected deserve.
Speaker 1: You know, as you can see that the so-called insurance agent model in the industry is actually deteriorating. As you will see, the cross-sale and also, you know, everything is sale-first type of compensation schemes actually is not working.
You know as you can see that the so called the insurance agent model in the industry actually deteriorating as you would see the cross sale and also you know everything is still first type of compensation schemes actually is not working that the basic reasons interest of the.
Speaker 1: that the basic reasons for the interest of the salesperson with the client is actually not aligned. So it's going to be very difficult.
Our salesperson.
The client is actually not a lot. So it's going it's going to be very difficult.
Two loss.
Seem pretty August results in terms of talent acquisition.
Since the transformation.
Uh huh.
Very happy to see you know.
The fresh graduate it's now come from top schools in China and also the private bankers that we hire are now you know.
Basically the.
Speaker 1: senior or seasoned private bankers, you know, from the banks that we typically wouldn't be able to track with the old composition scheme. So this is something that we're going to insist on and continue to invest on to make sure that we actually win the first battle of the, you know, very important war that's at hand.
SR or seasoned private bankers.
From the banks that we typically you wouldn't be able to attract with the oil composition scheme. So this is something that we're going to insist on and continue to invest how to make sure that we actually win the first part of the you know very important a war for talent.
Okay.
Partially though.
Speaker 2: Thank you, Mr. Fan. The changes we just talked about and the four points, in 6.30, about 50% of the financials are in the four points. We will finish this this year, but the total cost has not changed much. If you look at this year, the structure has changed.
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Speaker 4: The next question will come from Yousan with CICC. Please go ahead.
The next question will come from U sand with TICC. Please go ahead.
Speaker 9: Hello, Mr. Wang, Mr. Pan, everyone. I'm Fan You, a researcher at Zhongjing. This is Youyou Fan from CICC. I have two questions for everyone. The first one is about the AUA of our customers. I don't know if you can share some data about the AUA growth and the structure of a specific product, especially in the field of 2G think-tank and 2G think-tank.
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Okay.
Speaker 9: And the second question is, we have a lot of cash on our balance sheet, so I'd like to know your thoughts on this, including Sun Hong's.
Oh God willing if you don't want to work with them some room to take the balance sheets for Mackenzie adulthood.
So you can do it.
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Speaker 9: Okay, I will translate my questions. So the first question is regarding the AUA. Would you please share more data on the AUA and break it down by different types of products?
Okay, I will translate my offerings, so the first quarter and starting with.
Would you please share more data on a a and break it down by different types of products and seven culturing Athene, we have plenty of cash on our balance sheet. So I just wonder do we have any plans for dividends payout.
Speaker 9: And for the 7 quatrains, since we have plenty of cash on our balance sheet, so I just wonder, do we have any plans for dividend payout?
Okay.
Okay. Thank you Susie Oh, a respond to these two questions.
Speaker 1: Okay, thank you, Cece. I'll respond to these two questions. First, in terms of the AUA...
First of all in terms of the.
Speaker 1: Probably over close to 60% that we help our clients place is in the private equity.
Probably over close to 60%.
We help our clients places in the private equity.
Speaker 1: And it's also the category that would see a pretty consistent growth for the last few quarters.
And it's also the category that would be.
It's a pretty consistent growth.
For them for the last few quarters.
Speaker 1: And also, the next major category is obviously the private securities.
And also the next major categories, obviously of the private securities, which accounts for about 30% of the total area and we're seeing some fluctuation, but it's actually probably more or less related to the NAV of the total market and also their products.
Speaker 1: which accounts for about 30% of the total AOA. And we're seeing some fluctuation, but it's actually probably more or less related to the NAV of the total market and also their product.
Speaker 1: But that is also the main category that would see the.
That is also the main category that would see the.
Clear traction for our clients.
One category that we're seeing you know obviously is we'll continue to exit and help the clients realize the returns obviously.
Assets relating to real estate and are happy to share with you that we have very very limited exposure in this which actually allows us to be able to have a pretty.
Speaker 1: exposure in this, which actually allows us to be able to have a pretty good asset mix for our clients. So the growth in the private equity, actually also the growth in the private securities, is the direction we're seeing our clients pretty in.
Pretty good as a mixed for our clients so the growth in the private equity.
Actually also the growth in the private securities.
Is the direction, we're seeing their clients' pretty interested in it.
Speaker 1: And the second question in terms of cash balance, we do maintain very good cash balance as well as operational and investing cash flows. In terms of dividend, we do plan to have more extended discussions and hopefully we'll have something for the market in the next few months.
Second question in terms of cash balance, we do maintain a very good cash balances as well as operational and investing cash flows are in terms of dividend we would do.
Land to have a more.
Extended discussions that hopefully will have something for the market in the next few months.
Hey, Todd this is yep. Thanks, so much.
The next question.
Yes.
Go ahead Sir.
Okay.
Speaker 4: The next question will come from Ethan Wong with CLSA. Please go ahead.
The next question will come from Ethan Wang with CLSA. Please go ahead.
Thank you Jamie.
Speaker 5: Thank you. I have a quick follow-up question. Mr. Wang, do you have any plans to come to Hong Kong for a second listing? Because there is still a risk of retirement in the U.S. in terms of ADRs in the current environment. And Hong Kong has recently changed the listing rules. It's not just a new industry company. Other industries can do it too. We can do it too. Thank you.
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Okay.
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Speaker 5: Just a very quick question on our data that has a four-indexed...
Just a very quick.
Sure.
Hum.
For the company.
Speaker 5: because we understand that there's still this the listing race surrounding China's ADRs. And since Hong Kong has just changed its listing rule to allow non-innovation related companies to be listed to be listed through a statutory listing channel, just wondering if NOAA has such kind of consideration in the near future. Thank you.
We understand there are those unique needs surrounding those laws and in Hong Kong strong shapes.
Would you allow non innovation related.
Mid stage to be honest.
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Thanks, Ethan we actually do pay attention to the development of a especially.
Speaker 1: Thanks, Ethan. We actually do pay attention to the development, especially the holding foreign companies accountable act. And we have had discussions with both our lawyers and our auditors. Obviously, it's something that we do keep a very close eye on.
Especially the holding foreign companies Carnival.
And we have had discussions with both our lawyers and our auditors.
Obviously.
It's something that you know.
Or would you keep a very close eye on.
Speaker 1: But, you know, the professional side, they believe there will be at least some solutions between the two governments. It's more political than actual market governance, and considering the impact of having the whole group of foreign companies.
But you know the professional side.
They believe there will be at.
At least some solutions between the two governments, it's more political than actual.
Marketing governance, and considering the impact of having the whole group of foreign companies.
Speaker 1: that to be exited or actually delisted sort of violently from the market. We don't see that possibility as very high and imminent, but obviously, you know, whatever they put together to comply with, especially I believe that recent requirements, our auditors actually...
<unk> exited or actually be listed sort of violently from the market, we don't see that possibility.
Possibility is very high and imminent, but obviously you know whatever they put together to comply with especially I believe that recent requirements.
Our auditors actually.
Speaker 1: communicate to us that it's a very heightened disclosure requirement.
I mean to us.
That is a very heightened disclosure requirements, especially.
Speaker 1: especially, you know, around, you know, the BIE structure, blah, blah, blah. All these, we believe, that's actually along the line of having more information, more transparency.
Round in the <unk> structure and blah Blah Blah are these are we believe that strictly along the line of having more information more transparency.
Speaker 1: uh... in terms of uh... you know having this team plan on the second
In terms of.
Having listing plan on the secondhand market.
Speaker 1: market. It's obviously in the sort of plan B's. We're not actively seeking to do so. We understand the new rules, the Hong Kong listing rules. We also understand the backlog.
Obviously in the.
Sort of a plan b, we're not actively seeking.
To do so we understand the new rules of the Hong Kong listing rules, we also understand the backlogs.
Speaker 1: in the application process, and considering, you know, especially for NOAA, we believe that Hong Kong market probably doesn't provide additional meaningful liquidity for us, but it remains, you know, an interesting option.
The application process are considering such as you'll know we believe that.
Hong Kong market problem, it doesn't provide additional meaningful liquidity.
For us.
As you know an interesting option.
Sure.
Speaker 7: Sure, sure. Thank you.
Thank you.
Okay.
Speaker 4: This concludes our question and answer session. I would like to turn the conference back over to Mr. Grant Pan for any closing remarks. Please go ahead.
This concludes our question and answer session I would like to turn the conference back over to Mr. Grant Pan for any closing remarks. Please go ahead.
Speaker 1: Thank you, operator. I'm very happy to be able to communicate with all the investors and analysts and I'm happy to deliver another quarter of solid results, especially seeing the good results in my activities. We'll have separate phone calls later on, and if you have further questions, I'm very happy to speak to you. Thank you.
Thank you operator, I'm very happy to be able to communicate with all the investors and analysts and we're happy to deliver another quarter of solid results.
Actually seeing the good results and activities, we will have separate calls.
Calls later on.
If you have further questions very happy to speak to you. Thank you.
The conference has now concluded.
Speaker 4: Thank you for attending today's presentation. You may now disconnect.
You for attending today's presentation you may now disconnect.
Speaker 10: © BF-WATCH TV 2021
Yes.
[music].