Q2 2022 Noah Holdings Ltd Earnings Call
Good day and welcome to the Noah Holdings second quarter 2022 earnings Conference call. All participants will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad.
And to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to MS. Jing Bo Wang CEO of Noah Holdings. Please go ahead.
Thank you.
Thank goodness hopefully the Ito side.
I think right now what they're going to come back.
Oh, sorry, Hello, Yeah, I mean, our R&D and yard you'd do the tenants yet.
You bought back how are you with it.
Alright, you want with it.
Keith I'll, let you pencil with or that you saw in Q2, that's how we think so.
So we don't want that.
Yeah, Yeah, you're right you can't talk to the Central City.
She got she does though what's underneath that.
Central to turns out.
Iranians, sometimes yet so what would be the content. The bulk was with young fans out Billiton Johnson and out there.
To ensure that she comes out.
Yes.
Not that you found me I'm going to Dan. So he told you show them you get social me from Amy choose Oh, Archie talked in Japan.
Okay.
But absolutely it's a pool that somehow the culture. So how did you do something just for Jim Jim Barber Mia Comping phone calls that yeah, well move on to top out.
Judging from each year that towards the team she's asking like what he.
Sensus is interesting, but they don't seem to cope with a D switch off.
Yeah. So let me yeah, Gotcha Gotcha that change will pay it she told me she said.
I mean are you shop and yet only after you kopel sheets will depend on what's it had pizza Jim what's the downhole suggestions.
I mean, Q, well gotcha Gotcha culture sanction what when would you have any cohorts you don't change you'll just have pizza touching.
So I'd hate to be anyway.
You bet you bet.
Colleagues, who can't pay you told us about.
I'll have to check what you said about the women. She is a highly sometimes you have seen the peak power.
But fundamentally the thing what you said about political book, what you don't go from be it from Templeton.
Okay.
So I mean, you hook I'll, just catching up they don't change will have questions on kind of which doesn't attitude.
Simply.
Without the change.
Oh, absolutely, yes, the banya kimi towards so cheap it's even the tenure cohort she can't which will absolutely found that interesting.
Including in Buffalo Cold attach it.
Well, yeah on eating your intangible Joseph Osha.
She was telling me once I shouldn't gotcha gotcha.
Simple catch yourself I'm, hopefully all sounds sort of drilling campaigns at 10.
Yeah that sounds odd to sounds like Watsonville and gave you the woman that he took so who.
Well don't have tortured that.
That's all done and should help us do so well look what did you find so tell me what did you give a big chunk of it won't kind of puzzled Tom authentic Sunday his own punchy adapter towards them telemarketing Obi you whole lot autonation. They seem to go do that do you need to smell bad faith.
They tend to be.
Can you talk on colon don't quit Pizza, Oh boy I tell them. She then you're doing so well.
Well Miss you watching them to call me they'll fit Williamson. So that you can even absent putting you back needs to be a lot of patients.
That wouldn't be so she they'll play both of them.
Yeah.
Yes.
I'm Gonna agenda of todays teleconference. I will first share my views on the macro environment that introduced the overall performance of Noah in the second quarter of 2022 the development of Avondale.
Our business segments and our overall strategy next that's either in by our group CFO penchant to introduce the quarterly financial information followed by a Q&A in the past two years, the global real economy deleveraging and capacity reduction caused by the epidemic and the impact of the Russia and Ukraine wall.
Exacerbated global inflation in the first half of 2020 to China's continuous epidemic prevention and control policy have brought unprecedented challenges to the economic burden of coal region, including a program of Delta and against you with a delta on one hand, the supply side has been impacted and the demand side has.
Contracted significantly on the other hand expectations of weakening the economy has reached the bottom and the market bottomed out in the second quarter as a company headquartered in Shanghai more than 800 employees experienced locked down at home in the second quarter, we observed that the investment sentiment is high.
It was families and private enterprise clients has changed significantly improving the safety and liquidity of the asset is the first demand of clients at the same time, the global allocation needs of Chinese private enterprises, and the high net worth families have been significantly improved now with judgment on client.
Demand and asset allocation suggestions and stability for <unk>.
Baidu, a precision and domestic international do stipulation for Chinese enterprises, and high net worth family.
We suggest that clients either rebalancing of their global asset allocation the ratio of Chinese and overseas asset allocation is 100 to a 100.
Yes, the assets are located to the Chinese market and overseas assets are allocated to the international market.
Chinese private enterprises to establish new brands or international headquarters in the overseas market and cultivate the international market completely independently.
Domestic had quoted range of national headquarters assume different functions.
Overtime, China's private enterprises in China with families may make great progress in the process of passive passive globalization and even have unexpected surprises.
No one has been in business for 18 years and has experienced many market cycles.
Also lucky that we had suggested clients to withdraw from asset such as domestic released it about Blyth, Inc. A bomb.
Protected the athletes as clients as much as possible no I wasn't listed on the New York Smokies changing 2010 and successfully listed in Hong Kong on July 13th 'twenty 'twenty. Two we have also announced that they started up the conversion to do primary listing.
Today, I hereby sincerely, thank the shareholders and investors, who give us great support in the process of Hong Kong secondary listing under the turbulent market environment I'm, a global offering was five nine times oversubscribed, Hong Kong public offering was three three times oversubscribed and specifically we saw long term value.
Back to two six times oversubscribed doing the secondary listing offering we received support for many types of new institutional shareholders, which is quite an investor Onboarding achievement in the sluggish market environment.
At the beginning of this month the board of directors approved didn't know with lunch and on your dividend mechanic, we plan to pay dividends from no less than 10% of annual non-GAAP net income in the future and to deliver stable and sustainable returns to shareholders.
And they are now I can do well Susannah myself with James So you didn't see a and B question, who don't fake Toyota judging even with San Diego, you and Tony Pinzon bathrooms or with your ship pundits and off she 70 at school Kids finding you need do you intend, even though she got too much anyway.
You can go back and you should know.
Could you tell me how are you doing with your Galloway you bet. You are saying here are you going to be home to Josh again, she huntington's I'm talking to us about it but she goes to local channel would you always sense, Joe there are plenty agenda, our sandy I'll call them, what you're seeing what you saw as the 20th didn't help of Hussein.
Button just eat it shouldn't have any Oh, my God bless you wait the answer Paul Feeney comatose physician groups and then that gets you back into that same also watching Buddy tickets you supposed to tell quite in sync with what you changed things.
She means for XI leap off junction similar Tien Tsin, Jim would you got 21 teaching box with agile.
ZIP withheld guardians of Cocos shortened up the heme coaching boy have a sensible way possible.
What's important though.
The audio on your your offending so yeah, that's the cohort that all up due a change she bet. She's just feel at home kitchens bathrooms annuity E. Takeout cohort that all that you can ship that box, new at Palm Beach, and the Bakken Josh.
Well my tissue to judge them to cope with the polls.
That's all it would be a whole house, yeah, Hey, cool you want halos to Copel shall we say cohort so well we used to have children in cohort G. H.
It's a buyout you almost you need you need we love you.
Got used to the way they wish to Copel.
In the second quarter of 2022, Noah achieved net revenues of RMB 738 million and a non-GAAP net income attributable to shareholders are going to be 365 million up 514% of young yeah, and 13, 3% quarter on quarter as of June 30.
The accumulated non-GAAP net income was 669 million, reaching 46% of the annual guidance.
The coal business got the transaction value of the second quarter of what's going to be $19 3 billion of young year decrease of 22, 7% and a quarter on quarter increase of 28, 8%.
The transaction value of private equity with it might be $3 9 billion, an increase of 23, 2% quarter on quarter mutual funds were going to be $12 2 billion up 30% younger than 71, 4% quarter on quarter, we're gratified by the outcome that although plans have insufficient investment confidence.
Amid sluggish market, they're still willing to let know or manage a larger share of their wallet.
This quarter affected by the market environment and investment sentiment. The overall household savings rate has risen by a large margin Ava transaction book value of probably a secondary funds dropped significantly yeah, yeah and quarter on quarter.
I know it wasn't the ultra high net worth clients, our core client group and those diamond and Black Hawk clients, having grown battery as of June 32022, Mila have 6774 diamond clients, which grew six 1% year on year, the number of Black Hawk clients reached 1708.
T C with.
With a young you increase of 21, 5%, while continuing to focus on time and in Black Hawk lines. We're also putting forth efforts identifying and serving potential diamond and black our clients as well as recovering lost clients and reactivating dormant accounts in terms of recovering the lost clients and <unk> clients great progress.
Have you made this year as of August 19, we have recovered 700, Unfortunately lost clients this year.
Yeah.
Chances are they are in the annuities that.
Okay.
Grandma, but you tell me about what should be still some teething gel phones, you do more wage all up asking you can guess, but she's also local transatlantic room or what do you say you can send an E. M D. Oh gosh the content, but I think we won't be found as you do more than two so that all of your body sheet.
Hence you can call me at Cornell do you all feel make will triple Guage gene, but do you maybe don't tell me, but he sure does get below if you didn't go to coffee. The highlight just how great mall it wont be something you'll be our funding something that barbell are Bette Jo mill yet.
Local Shanghai should help on the tax cut did you build up after D E F and Bolivia will put that Florida is.
Did you should help them yet so we'll see how did you do it until the spin the change to actually did you see that she wont, Utah Kickers or did you just have a quota which also extra deals you've been told today doing real things out and you end up with Vinci.
Go ahead, the symbol gwich'in teaching Dodge do watch them, Oh sure yeah, it'd be the root cause.
Okay, the mogul trade attention when Jim Sheehan.
That's really do that early on you should help fund junior Jeep. Thank you Bobby.
So you couldn't be away back in building dish for sending samples for the city of cheap or tornado pushes them back and bought back some day of week, where there aren't cool with us just a bit.
We'll be able to do that she didn't get yoga tone, she could be to go.
It will show the comb Philip blow don't go away to talk we let pass would be Thomas Doyle Tulsa, they'll say that you do for potentially cool April turned out well.
Okay.
So it sounds like arches also almost I should say it sounds like Jim you couldn't Parkway more though of course, you said that you hope to go change your fishing boats have been kept it you're seeing coke with a charge off for a pizza schedule.
Yeah. This June got pulled down most types of taking sugar you would you could you kind of a culture.
Shindig in July painful Kochi Penny, Yeah, you might to cope with it.
Yeah.
As of June 30th 2022 grocers in your EM with Jimmy be $155, 4 billion, which slightly decreased 0.4% compare to where the end of the previous quarter due to more distribution among them the a O N.
Our private equity stabilized and you wouldn't be 142 billion in public securities increased by 3% already end of last quarter, reaching RMB 10, 7 billion in terms of girlfriends realistic ear and it is mainly composed of the U S rental apartment farm and all his buildings located in two commercial call ever.
He is in China.
Oh first overseas.
By six 2% of young yet and one 5% quarter on quarter, reaching than the $29 6 billion with private equity public securities embryonic stage achieved one 1% six 4% and 2% quarter on quarter growth respectively. In terms of primary market Goof are completed.
Experts are for projects in the second quarter. The series six a secondary form of S.
Bond continues to raise capital and with the gradual return of the secondary market valuation the investment at best Bond has entered a baseball evaluation margin girlfriends private equity funds racism and would be $2 6 billion in the second quarter, both as target strategy product have three types of strategies conservative balanced.
Positive, although the market environment in 2022 and makes it easier as of August 12.
Tony the performances of the three strategies, where they were at four 4% minus three 3% and minus four 7%, respectively, well that took CSI 300 or is that 800 with minus 15, 2% and minus 14, 6% respectively in the same period.
The performances of girlfriends package strategy firms have been far better than that of the comparable in does it effectively controlling volatilities and pullbacks I'm playing the role of <unk>.
Well stabilize them at the same time girlfriends also actively incubating different strategies and comfort mentally equity direct investment product.
After the secondary listing in Hong Kong, we began to establish a larger international private banking team and our global CT screening team in Hong Kong to meet the global asset allocation service needs of clients now once the Singapore Office also began to promote new business trends now goes like International has also started to build new research capabilities.
And enrich international product lines to meet client demand.
A lot of I'll call them could you tell them the cuts in Chicago L E.
And tell me like dish and cut so she finds out we'll know at that time, so all of them and it got pulled down.
Let them see what we can see the way ketones that towards that you took with penetration of cortisol.
I'm glad you're asking why would you put the courtyard closer to Houston cool. That's all been done that yes. He began to cancel its the things that you find interesting. She doesn't also hook why he couldn't you can say about <unk>.
Well Chi and yell at me, Yes, keep critical resources and show them, what Moodys does get cohort G. Sheila, yes detail yet divorce, yet, but yes. That's all it takes a couple of.
And as I look back in history, I thought about from Berkshire, who will talk to you in Chicago, you're sending with that thought that horses go page that you name it.
But any thoughts on like yes, she wasn't yet they look at the total pud have Glenn here, but yes anyway, so called Union can doubt to ship.
Those are things that we like you don't send me if she said, yes, you don't want to live and can be lumpy.
I'll go back and check that you go you can pay for that.
And then put on the phone with a yes, you can fill them towards attempting defense U K packaging and tissue that yes, she spends on political and patient care.
Welcome to the Hudson can do with it yes, it's phishing attempting to C C.
Well go first to all pumped up which is you probably won't be attempting Sally He said, yes. He pennsylvania. So she said she would have looked like fishing Sonya.
Thinks it is.
Ablation meant in 2021.
De Novo developments Kaminsky of Noah holdings have been practicing the value proposition that sustainable development brings Montana kinetic energy to know what you have health regular and irregular meetings to promote the inclusion of relevant to ESG issues in the decision making of investment and put our selection to improve the U S.
G awareness with clients and business partners.
And regularly report to the board of directors and senior management in the past year I bet. Yes. Your commercial book work was fruitful we conducted ESG survey on the Black Hawk and Diamond clients in 2021 and the results show that the popularity of ESG among high net worth clients increased by 35% and reached age.
Per cent of our clients' ESG investment and pension increase it by about three five times to 50 per cent Gopher also issued an ESG question there too its investment partners. He made this year. The results showed that the S. G behavior of the leading asset managers have become more prominent in the past year most of them plan to.
To increase the proportion of ESG related investment products in the next one to three years and more than 70% of everything institutions have started to practice.
At the same time, we have constantly reached the product offering Obama dedicated unlike ESG investments section, both onshore and offshore conducted continuous ESG, especially investment consultants they training for our relationship managers.
And prompted more ESG information and product information internal and external media platform.
What and go for a duty bound to continue to exert our circle of influence improved as research and development of ESG product Hum are sustainable operation of the group.
So it sounds like him to Squamish, all lucid should go down something kind of what you tend to have meaningful she found near the one song Hustle before you go push them into all of them by the molecule.
So she didn't have behind the modal Vinci glue pocket mutual fund.
Possibly he told me that captures all of them to see what well.
I mean since you're so you shouldn't so Sheila I'll show you a couple of months those I'll do that she wanted to cook and she is.
So of course since it tends to just simple tuck in so for pushing that don't quote so I'm not seeing what some of those will not come into force yet how old are you told me you don't go for them over the phone. So we can.
And our wholesale lighting, so how this whole thing that's.
Oh, absolutely illegal she deals with tens I think that's it.
We are dependent upon those Hudson Valley doing Jim Connolly with them well go.
Khatami found ourselves just how are you.
Hello, Alfonzo to eat you Sasha.
Would you if you anything which has to go up.
Oh, and yes, well my son got day cohort, it's jumped up here's the homegrown portrayed and she's got that one.
So call it social pent up well me shocking passwords or something changes and so what the way I don't seem to who you called that I found out.
Is that I can see a full pinching chassis that you thought they could cheekily just switching thank you Sonya.
Finally, I would like to say that the future is bright and the road is winding there wasn't article entitled named his strategy, which said that the name of a company often contain consistent strategy, but it contains a certain vision planning an intention on the other hand vision penny pension will be.
Mostly shape of our behavior.
Now what the name is taken from the Bible Festival, Noah was a righteous man he chose to live an honest and upright lives regardless of the behavior of people around him. He insisted on giving trust and it was full of off like his life was full of possible risks he took precautions and Dubuque with Gopher wood.
Making full preparation for the possible flat Noah was full of courage, when we're looking and correct judgment.
<unk> hurried pairs healthy species.
And then they do the future on the App. This is the meaning of Noah's Ark and it seems to be a metaphor for Noah holdings, our mission vision and values.
In 2022 with deeply feel that we have a great responsibility to our clients the grade to the macro uncertainty the more we need to think of comedy and makes them mature judgment.
We believe that beyond well lies the wisdom of life, nobody bolthouse yourselves to creating legacy for clients for generations to come next.
Next that's in Budge CFO pension to introduce the financial data of this course in detail. Thank you.
Okay.
Yeah.
Thank you.
Thank you chairlady and Hello, Dear investors analysts.
Including our new shareholder.
<unk>.
Uh huh.
Following the impact major events, such as geopolitical conflicts in the first quarter.
Macro environment in the second quarter continued to be under pressure.
After the end of July two 2022, the United States Federal Reserve has been.
Raised interest rates by accumulated 225.
I'm trying to prolonged COVID-19 lockdown.
Let you only 0.4% GDP.
In the second quarter investor sentiment hasn't fully recovered evidenced by distribution value of mutual fund products.
Any country decreased by 25, 8% year over year in the quarter and dropped a whopping 57, 8% year over year for the first half.
<unk>.
As well as the savings rate is rising to 34% at the end of second quarter compared to only roughly 30% pre pandemic.
At the same time, we're mindful of the tension between the two largest economies in the world.
Hi, Noah successfully completed.
No we're listing in Hong Kong.
Partially mitigating.
The risk.
We have also now to pursue a voluntary conversions to dual primary status in the U S and Hong Kong opened further result, you listing pressure.
Well the installed long term scheme to pay at least 10%.
Our non-GAAP net income annually.
Annual dividends to shareholders starting from April next year.
Now please let me walk you through a more detailed results of the second quarter.
non-GAAP net income was RMB 355 million for the quarter up five 4% year over year at 13, 3% quarter over quarter.
For the first half it was RMB 669 <unk>.
Representing 46, 1%.
Our full year non-GAAP net income guidance.
Income from operations for the quarter was RMB 323 million a $3 six decrease year over year, but grew.
Over the last quarter, mainly.
Mainly because of the decrease in net revenues for the quarter, but partially offset by lower expenses.
General and administrative expenses marketing spending client activity as well it's more government.
<unk> received in the second quarter due to the COVID-19, lockdown in parts of China, especially in Shanghai.
Consequently, the operating margin was 43, 8% up 17, 4% year over year and 11% quarter over quarter.
Would ordinarily resumption of works major domestic economic regions. Since June it is encouraging to witness a recovery in transaction value as expected.
Which recorded at 28, 8% increase over the last quarter.
RMB 15 billion to RMB 19 3 billion.
Compared to the last year, it was down 22%, especially when we had a really strong second quarter last year.
Notably the transaction value of mutual fund products continued to grow against the market tight.
With the significant increase of 71, 4% quarter over quarter, and a 30% year over year to RMB 12 2 billion.
In the second quarter, the total number of mutual funds active clients with 11248.
The transaction value of private equity.
23, 2% over the last quarter to RMB, three 9 billion.
Down 39% year over year, representing eight quarter recovery.
While the transaction value of P products saw a decrease of 40% quarter over quarter and six to eight 9% year over year due to volatile.
Market environment and less.
Investor interest in the asset class as expected.
Benefiting from continued strategic investments in our core client group Diamond and Black card clients grew to 8560.
Three 3% quarter over quarter, and eight 8% year over year, among which the number of black card clients increased by 20% year over year, we have also been making efforts.
Reactivate dormant accounts and retrieving lost accounts due to the transformation to standardized products.
Client centric philosophy will continue to be a key strategies.
It's also worth mentioning that amount.
Active clients the number of clients, who purchased insurance products during the quarter was 1090.
16 times more than the first quarter of 2022, and three times more than the same period last year as we assume the sales of certain products, absolutely talking with temporary regulatory requirement in the first quarter of this year.
Net revenues of the quarter was RMB $738 1 million down 17, 9% and seven 2% quarter over quarter.
Mainly due to decreases in performance based income.
The transaction value of private equity mutual funds and insurance recoveries in the quarter are one time commission more than doubled quarter over quarter to RMB 207 million, but still down 16, 1% year over year due to less public securities distributed.
Recurring service fees remained relatively stable at RMB $468 9 million a decline of seven 9% year over year, and five 2% quarter over quarter, mainly due to Nab.
Performance based income swapped to RMB 25 9 million.
Down 78, 8% and 85% quarter over quarter finally, due to lack of profitable exit from public securities.
Net revenues from other service fees for the second quarter of 2022 were RMB $46 4 million.
44% increase from the corresponding period 2021.
Primarily due to more value added services.
No offers to our high net worth clients since the Shanghai locked out.
Have you rolled back and do a quick correction when I mentioned the transaction value of private.
Products decreased 40% quarter over quarter should be transaction value private secondary products.
Great.
Now the segmented results.
As for our segmented results net revenues from the wealth management segment, while RMB, one 590 million down 18, 7% year over year, and 12% quarter over quarter due to a slowdown in transaction value during the quarter net revenues from the asset management segment was 210.
Down, 17% year over year, but up 5% quarter over quarter.
He was RMB $155 4 billion.
As of June 30.
2022, slightly lower than RMB $156 1 billion at the end of the first quarter due to more distributions and redemptions during the quarter.
Moving on the balance sheet, we remain in a healthy liquidity position and the current ratio stood at three two times the debt asset ratio was $19 four still with no interest bearing debt on our book.
By the end of the second quarter, we had RMB three six gum and <unk>.
It should also be noted that net proceeds of the off take notice.
Not included yet till the next quarter.
Supported by the healthy balance sheet and continue with strong cash flow generating capabilities, we announced that the board had approved and adopted a new dividend policy all of those.
Pat.
Enormous circumstances.
It has to be declared and distributed each calendar year shall be in principle, no less than 10% of the group's non-GAAP net income attributable to the shareholders of the preceding financing here as reported in the company's audited financial statements, which aims to provide stable and sustainable returns to the shareholders.
Of the company.
The dividend will be subject to shareholder approval at the AGM. No later than end of June each year once approved the dividend shall be declared by the company and paid out to the shareholders.
Being confronted with the current complex international geopolitical environment. The board had approved a motion to pursue the voluntary conversion two dual primary gist.
Oh geez.
Further eliminate the risk of this.
Yes.
We want to thank the investors, who supported the Hong Kong listing and hope to provide the market with positive outcome in the coming months.
Yeah.
Also published the methanol for the second half of 2020 to reiterating the protection before growth strategies for our clients.
Meanwhile, would suggest our clients to initiate investments strategically out both onshore and offshore ultimate fuel circle circulation.
We're mindful of changing challenging market scenarios, and we'll adjust our strategy accordingly.
Again sincerely, thank our shareholders for ongoing trust and support and strive to create long term value for our clients and for our shareholders.
Everyone for listening and I'll now open the floor for questions.
We will now begin the question and answer session 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 the keys and to withdraw your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.
Yeah.
Yeah.
Yeah.
Okay.
Okay.
And the first question will come from T O Hong with Morgan Stanley . Please go ahead.
Oh oil younger Lindsay Duncan.
And do you guys have grown and you're doing a code you can kind of say hey, good.
Arguably sushi upward on the shelf.
Goodbye.
You go with getting things done.
If you do all this for me I'm holds I'm thinking the angle that shouldn't be the exact cause issues.
Let's see what else. They argue when these are going to be really tight sort of do you want to kind of hard to see that go to user conference when I was I'm not sure.
Hum.
Sure I'm going to be a good evening.
We would've been down that path.
You can see since you've come out of the body. That's not anything you can say.
Yes.
Okay.
Got you no one's in the biggest new pizza I'll keep you out of the guidance.
I mean would it be good seats on board well you wouldn't get you all right.
Okay got you.
On the mobile.
Maybe I'll just briefly translate the first question is about our client base.
These are given on a very volatile market environment, we're still achieving a steady growth in the.
Number of our key clients.
And clients Diamond Costco, just wondering imagining that we can cheer anyhow.
Driver behind and do we have any target or plan for the card number growth this year or next year and second question was on the number of relationship managers, which is we think it's important to.
Keep a high touch service and we see the numbers kind of fluctuating between 230 <unk>.
Last two years and with some slightly declining in the past few months to two quarters. So wondering how's that.
Teams reaction or expense acceptance to the newly completed our restructuring.
Sensation that keep your eye system and do we have any target for the next two to three years.
Yeah.
Yeah.
Hum.
Well, what do you where would you that's a good thing hunting has suggested without Hudson does your full content tourist element I can't comment beyond that.
So jayson called Virginia for that cohort.
Or do you they'll cohort doesn't sound to me is the jogger deposit. So we all have a lot of Copel dis synergy well me, it's useful I just forgot Siemens So yeah again July Google.
Boston uncles that Montreal handoff older Goldman Sachs yourself into your way.
It seems as though that that's how would you think would totally attack kinion Tobey. So that you can phone call and should you have to deal with it it's all about it.
We have designed ideally more some cohort the finishing it that's just the way you go to the other impact is what the kind of all Santiago Guangxi any types of financings out let me see the what well do on the gold boxes and thought that that's a tough it's only off that you'll see I'll tell you is that I think of course, it's all about.
Well, Linda well my house to say time to see that that's all true up alcohol you're ruling.
You'll show the N J P S M a.
To the same.
Well I mean, I don't think agenda at this club Google them and then go tenses to go so you'll show the EMEA. Okay sounds good that's all working really hard to say you'll show that he has an angle and I don't think that a woman would go to nobody out and then goes out that they were gonna inching people don't call now cohorts I think bank.
When she says Oh, so you want to do it that way lies in tests.
You got Bob sure couldn't until they hold it themselves aren't talking about a new I mean, we've been Josh That's a sound Foundation got Florida, I think you touched on it.
And Jimmy Choo, what do you think the timeline dosing some of that well I don't have to do and that's it sends out sort of where things are quiet.
Allison so that's it.
Oh no.
Yeah.
Hum.
Okay. So.
Yes to your first question.
We believe that because of the complex situations, especially the lockdown so it's quite.
Has been quite difficult.
To get.
Get to the clients scenario, especially offline situation. So we have been doing is really to serve and.
Make the existing client base.
Police, they're satisfactory level and the majority of the.
Growth achieved in the Diamond Black card clients here is from the existing clients when they actually made more investments and upgrade internally and at the same time the strategy of making the existing clients happy and they are more willing to actually bring in their clients.
And make referrals. So we actually have another program called M. G M.
Member get member, which have shown actually very positive progress as well.
Seems that the strategy has been working.
And just a little bit of supplement to what chairlady has mentioned.
The thing is that we have we.
We have been continually investing and upgrading our branding.
As well as the benefits of some that's associated with the <unk>.
Black card and Diamond card members in the past it's mostly.
Probably just some rebates or some points that's associated with the benefits, but this time, we actually added.
A lot lot more benefits in terms of the free classes free lessons.
Can get on investors as well as the mother.
Educational sessions, which actually being very welcomed by the client so basically internal system during the.
Lockdown gradually actually have more time to invest as well.
Agreed that some say to actually increase the sector's factory level clients greatly.
In terms of the.
Our relationship managers team, obviously, we're still hiring for growth.
But the strategy for this year, it's mainly for making a room.
For better client for better talent.
Come in.
The talent mix, especially where.
We're investing more heavily towards the fresh graduates from good schools I want to make sure actually we have a younger pipeline.
For the future items our team at.
At the same time also actually having another program called <unk>, which means that we're actually targeting to recruit.
Good veterans.
Into NOLA.
And.
So the overall strategy.
Undoubtedly will be towards the growth of our team, but at the same time wasn't where it make sure that the quality as.
As well selected.
We're also actually your messaging planning to invest quite heavily in terms of the teams that seen Hong Kong Singapore.
We'd probably see a greater growth speed in.
And that team in these two places.
So yes, we have your question.
Yes, thanks, very much thing that at 90.
Okay. Thank you.
Yeah.
Again, if you have a question. Please press Star then one our next question will come from Peter Zhao with J P. Morgan. Please go ahead.
Hi, Oh, well the ones you're sure.
Sure Daniel.
Sure.
And about when he's always Sheila that's popular.
Withheld she's got Juanita.
They hold their dry last year shows a whole month.
Oh, you're tired champion doesn't go shopping.
The social cultural fit that work with somebody else.
Do the translation. So my question is about the second half.
All of the coffee moshe's demand.
Our non-GAAP full cuts so.
Which will translate to a quite strong growth in second half non-GAAP .
Profit goals. So we are wondering what will be the key driver and the west.
The C topical and she sells Hollywood game signal hop sing.
Yeah.
Okay. Thank you Peter for zero percent.
Yeah, we definitely are you know rugby happy, especially with the challenges that we faced in the second quarter, especially one of our main cities.
Shanghai was also the headquarter of know what phase two months locked out and you'll be able to actually obtain a 46%.
Progress and actually the.
non-GAAP net income actually has grown over both.
Last quarter as well as year over year. So we believe that we're still on track to make.
Our full year guidance, especially for.
For the industry seasonality.
<unk> already of the big so called.
Client conferences and marketing events.
It occurred in the second half of the year.
For example, we have show 14, Joe chemical which are both.
At the end of year as well as the gaming of the year.
Major market.
Points as well as the main event of Black card Gala every it usually takes place in November and December so.
We still believe that.
Good wave of marketing events, as well as client conference or waiting to happen.
Obviously, you know we are prudently I'm optimistic about how the client sentiment will be before the big conference.
You can probably October November , but we believe that no matter.
What the outcome is once our clients sentiment actually see some sort of level of certainty that would definitely have a higher <unk>.
Cement, making.
Especially Mike Pence.
And probably easier for them to make investment positions. So that's primarily the reason.
Behind.
I want somebody all told the market to be a one woman shot shabu.
Jim.
Mhm whichever should help and you actually engender, that's just simply not a woman named Borde, Ohio, If I looked at the full amount would you that's made for Clinton episodes. So he can go sure.
You can gladly, let Neil I'll tell you don't think the Saudi and the cortex, just along with that center you can look what she's familiar yeah, let's see yeah and the only thing that's just how it felt sandeep you said you go huh.
That's enough and well meet all of them and see that the adult side would you ever since I don't have the.
Two of them and I don't yet see go stay at home selling all of them and go there late do.
Do you play it that way.
Well that would go up in Dallas, Washington D goes home just been pulled out with him. This is how far do you think that does to adopt it.
Great to have a child or somebody that's the neighborhood, we're glad he does that.
That's it.
And then.
Well, Jay, though unintended bad that boat anyway woman, she's only out of the Hudson T cell women than they've gotten me Jonathan Vishal as Apolo passes I'd say whole testing then would you ever take let's do them and I don't see that they have that they are comfortable with the whole thing you worry about that install women you think place I'll, just say that as a woman 10 data only what my husband doesn't.
He will hold up well.
Yes.
Well My has just got now and believe that lie just Tony found that Doug I should say on the same campus.
[noise] causes painful.
Okay, Ma without any new ones.
Yeah.
Yeah.
Again, if you have a question. Please press Star then one.
This will conclude our question and answer session I would like to turn the conference back over to grant Pan for any closing remarks. Please go ahead.
Thank you operator, and thank you very much Howie in restaurant, and we have two quarters ago, and what's driving to get our positive results for the market. Thank you very much for time.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Yeah.
Okay, No that's right yeah.
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