Q4 2024 Noah Holdings Ltd Earnings Call
Good day, and welcome to the fourth quarter and full year 'twenty 'twenty four earnings conference call.
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Please note this event is being recorded.
I would now like to turn the conference over to Melucci Senior Director. Please go ahead.
Speaker Change: Thank you operator, good morning, and welcome to know US fourth quarter and full year 2024 earnings Conference call. Joining me today on the call are launching ball, our cofounder and charity Mr. Zehnder in our co founder director and CEO and Mr. Grant Pan CFO, Mr. Ian will.
Speaker Change: Begin with an overview of our recent business highlights followed by Mr. Pan who will discuss our financial and operational results.
Speaker Change: I'll be available to take your questions in the Q&A session that follows.
Speaker Change: Starting this quarter, we'll begin disclosing net revenues for each domestic and overseas business units to better reflect the organizational restructuring we have undergone and provide a clearer understanding of the financial performance and strategic process progress. Each unit has made domestically with broken down.
Speaker Change: Revenue into domestic public securities under Noah upright domestic asset management on the Gopher asset management.
Speaker Change: Domestic insurance brokerage on their glory.
Speaker Change: Overseas businesses had been broken down into overseas wealth management and there are other ball overseas asset management on their all of asset management and overseas insurance and comprehensive services and the Glory family Heritage.
Speaker Change: In addition, please note that the discussion today will contain forward looking statements.
Speaker Change: Subject to risks and uncertainties that may cause actual results to differ materially from those in our forward looking statements Patel.
Speaker Change: Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC and the Hong Kong stock exchange.
Speaker Change: <unk> does not undertake any obligation to update any forward looking statement, except as required.
Speaker Change: The law.
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Sheila: Shechinah, Youll like Hawaii, Shanghai Sheila.
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Sheila: Yes.
Speaker Change: Good morning to everyone joining us today during today's call I'll provide a summary of overall market conditions and our results for 2024 before diving into strategy and performance of each the overseas and domestic business unit I will then outline our priorities and the outlook for 2025.
Sheila: Hi.
Sheila: 'twenty 'twenty four it was a year of both challenges and opportunities the challenges arose from subdued client sentiment due to macro economic condition.
Sheila: This client are created an opportunity to implement necessary organizational restructuring at the time when associated opportunity costs were relatively low in the challenging market environments.
Sheila: Throughout the year, we made significant progress in restructuring our domestic sales team to fully comply with the evolving regulatory requirements at.
Sheila: As a result sales teams from Noah upright Gopher asset management, and glory, and now being separated into independent and licensed business unit.
Sheila: Aiding our seamless end to end business model.
Sheila: Overseas, we're also continuing to recruit and expand our team of retention should manage working Hong Kong, Singapore as well as the answer.
Sheila: We had a hiring in the United States and the other locations.
Sheila: We also launched a commission only agent model, where our insurance businesses and begin building the team from the ground up by the end of 'twenty 'twenty four initiatives have already begun to yield promising results.
Sheila: Despite a challenging year, we remain confident in the resilience of our business model and the robust safety margins from the strong cash flow a generalist.
Sheila: While our overseas expansion efforts are still in their early stages and will take time to scale significantly I can already sense of momentum and excitement.
Reminiscent of founding over 20 years ago.
Sheila: This time, however, we're pursuing growth on two fronts mainland China and international markets.
Sheila: Our ability to manage risk effectively while serving clients globally will position us well for future growth.
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Speaker Change: Full year net revenues were RMB $22 6 billion and.
Speaker Change: Year over year decrease of 21, 1%, primarily due to decreases in distribution not domestic and overseas insurance products as well as recurring service fee from domestic profile could be smaller.
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Speaker Change: non-GAAP net income for the year about 46% RMB 550 million, mainly due to two factors first.
Speaker Change: On restructuring costs associated with reducing our domestic network from 44 cities to 11 cities, which will reduce long term fixed cost and improve operational efficiency.
Speaker Change: Secondly in terms of taxation, the effective tax rate increased to 31, 5%.
Speaker Change: One book.
Speaker Change: Domestically, we restructured our sales team.
Speaker Change: As a fully independent and licensing business unit to comply with evolving regulatory requirements.
Speaker Change: While this temporarily impacted fishing.
Speaker Change: It has laid a solid foundation future growth on.
Speaker Change: On the product side, we prioritize mobile RMB denominated ETF, Judy I N T D L P products, which generate a solid return for clients.
Speaker Change: Before despite the lower fee rates.
Speaker Change: Additionally, we shifted our insurance offering for medical and elderly care ought to enter into long term client.
Speaker Change: Operationally, we consolidated our presence in core city, while retaining the most outstanding relationship managers.
Speaker Change: Allow us to reduce fixed costs and combined compliance expenses, while enhancing online capability.
Speaker Change: In the fourth quarter, the market rally in China drove demand where private secondary product.
Speaker Change: Rich the transaction value increased 200% sequentially and revenues from public security product increased 36, 8% sequentially, demonstrating our ability to capitalize on opportunity during market upturns.
Speaker Change: We launched new internationally focused brands in 2020 for arc Olives, and Glory family Heritage together. These brands will lead our efforts overseas to serve both existing and new clients.
Speaker Change: We currently have 138 overseas relationship managers, basically Hong Kong, Singapore, and will continue to expand its team.
Speaker Change: Or opportunity in other markets with significantly underserved mentoring speaking community such as the U S, Japan and Canada.
Speaker Change: We also began building a commission base overseas and domestic insurance downstream.
Speaker Change: Which has expanded to nearly 100 people with the goal of growing further.
Speaker Change: Into 2025.
Speaker Change: Our core management team is very excited about the vast opportunity that the overseas Mandarin speaking wealth management market presents.
Speaker Change: Feels like very much like the early days of pound you know what in 'twenty one but.
Speaker Change: We will continue to invest in expanding our overseas presence and build out our team to support it.
Speaker Change: This is a coffee process that requires time and patience to ramp up but we are confident that in the long run it will position us.
Speaker Change: Our wealth management platform for global Mandarin speaking to clients.
Speaker Change: I'll now dive into the performance of the operation of each business unit.
Speaker Change: Our CFO Grant Pan go deeper into the group consolidated financial performance later.
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Paul Sheehan: Yeah, Paul Sheehan cool pool, pinching, the ultra and buffet Houston apartments attention.
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Paul Sheehan: Well sure it what do you see that okay. So if we didn't get it.
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Paul Sheehan: But all of them will be outside Ali all of them yet.
Paul Sheehan: So we gauge at ebay I wish it would be he took we didn't get into licensing towards that she can achieve it.
Paul Sheehan: We launched a new internationally focused brands in 2020 for arc wealth management asset all of asset management and Glory family Heritage. We also established established an office in Japan, and initiate a pilot program in Canada, and South East Asia.
Paul Sheehan: To better serve Mandarin speaking community in this market.
Paul Sheehan: And that revenue from overseas, where 2024 were RMB, one 3 billion accounting for 48% of total net revenues up from 44% last year.
Paul Sheehan: It's proportionate to the group's newly generated business rose from 86% from last year to 89% this year.
Paul Sheehan: Overseas investment product performed particularly well with transaction value of overseas primary private secondary product, excluding cash management products growing, 45% and 22% respectively year over year.
Paul Sheehan: Our wealth management will use Hong Kong, Singapore, and the United States.
Paul Sheehan: Primary Brooklyn booking centers to serve existing clients and engaging with newer markets such as southeast Asia, Japan, and Canada net revenues from overseas wealth management through arc for 'twenty 'twenty four were RMB $675 million.
Paul Sheehan: As of the end of the fourth quarter, we had 138 overseas relationship managers.
Paul Sheehan: 55, 1% from last year.
Paul Sheehan: Overseas, a UAE, including externally managed product reached U S dollar $8 7 billion a year over year increase of four 6%.
Paul Sheehan: Our wealth management had over.
Paul Sheehan: 17600, retrofits registered clients worldwide in the fourth quarter, an increase of 18, 3% year on year on year.
Paul Sheehan: Among them the number of accounts opened in Hong Kong reached 17000.
360, a year on year increase of 70 117, 1%, while the number of accounts opened in Singapore reached 789, a year on year increase of 111%.
Paul Sheehan: For the full year the number of active overseas.
Paul Sheehan: Clients reached 5544, a year on year increase.
Paul Sheehan: 13, 8% with overseas transaction value hitting U S dollar $4 3 billion a year on year increase of 29, 8%.
Paul Sheehan: In addition to continuously improving the functionality and user experience of IR Hong Kong, our online wealth management platform. We also launched a localized Singapore version of the platform during the year.
Paul Sheehan: Our online product selection continues to gradually grow with a comprehensive offering of entry level product.
Paul Sheehan: Full year transaction value of overseas cash management products.
Paul Sheehan: U S dollar three 2 billion a year over year increase of 31% as we continued to expand global globally comprehensive across regional online services have become critical as we continue to invest in strengthening these capabilities going forward.
Paul Sheehan: In terms of overseas asset management net revenues were RMB 439 million in 2024.
Paul Sheehan: Over the past two years, we have significantly enhanced the competitiveness of our overseas primary market.
Paul Sheehan: <unk> portfolio through our established U S product center.
Paul Sheehan: Our private market product now rival those of leading global private banks, notably we raised U S. Dollar 663 million for overseas private equity of a crime.
Paul Sheehan: And the other primary our primary market bonds in 2024.
Paul Sheehan: In Africa, and 44, 9% year on year increase.
Paul Sheehan: In the public market and hedge fund space, we expanded the ecosystem, we have built with rapidly.
Paul Sheehan: <unk> products and investment partners globally, allowing us to different clients are rapidly rapidly growing collection of high quality and exclusive alternative investment opportunities.
Paul Sheehan: In 2020 for aggregate transaction value of alternative pop in market products, including hedge funds and structured products reached U S dollar $236 million a year on year increase of 22, 1%.
Paul Sheehan: Including term deposit the aggregate value of private secondary product distribute it was U S. Dollar $1 5 billion a year on year increase of one 9%.
Paul Sheehan: As of the end of the fourth quarter overseas AUM reached <unk> dollars eight a $5 8 billion a year.
Paul Sheehan: On your increase of 15, 1% accounting for a 28, 1% of the total AUM up from 23, 3% during the same period last year.
Paul Sheehan: <unk> for overseas private private market products reached U S dollar or one 5% for one 5 billion a year on year increase of 18, 5%.
Paul Sheehan: In terms of the overseas insurance and comprehensive services.
Paul Sheehan: Full year net revenues was RMB 140 million RMB.
Paul Sheehan: Before internal transfer pricing revenue from overseas insurance products. During the year was RMB $502 million a year on year, a decrease of 21, 9%.
Paul Sheehan: The Hong Kong insurance market remains highly competitive on the product side glories average premium increased by 30% throughout the year.
Paul Sheehan: We continue to actively explore new market models, new marketing models and are building a sales team from the ground up with commission only agents.
Paul Sheehan: The end of the year Glory had already on boarded 20.
Paul Sheehan: <unk> Commission only Adrian overseas with more than one third of them already contributing to revenue.
Paul Sheehan: Our target is to build his team to approximately 150 agents in the overseas market by the end of the 2025 to drive new client acquisitions.
Paul Sheehan: Yeah.
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Sidney: It's cool, but you can't pay to the team where he English and golf.
Sidney: So as I said also clean with Bob Thins out.
Sidney: You won't see us.
Sidney: Okay.
Sidney: Domestically, we adapted our business to evolve to evolving regulatory requirements, reducing head counts and coverage across China to drive down costs.
Sidney: We also streamlined operations of each independent unlicensed business units or.
Our domestic and overseas team are now fully independent.
Sidney: Revenues from mainland China in total were RMB, one 4 billion in 2024, a year on year decrease of 27, 5%, primarily due to a subdued market environment generating fewer new business opportunities and decreases in revenue from distribution of domestic insurance.
Sidney: Product and also the recurring service fees from private equity product.
Sidney: Net revenues from domestic public security was RMB 487 million in 2024.
Sidney: During the year the aggregate value of RMB public Securities products distributed reached RMB $25 6 billion our year on year decrease of 35% while primary secondary products reached RMB five 4 billion a year on year decrease of 31% mainly due.
Sidney: To the weak investor sentiment and the sluggish market environment during the first three quarters of the year.
Sidney: Starting in the fourth quarter, However, the Asia and Asia, Hong Kong share a Hong Kong stock market rebounded driving a 200% sequential increase in RMB private secondary product.
Sidney: Our domestic public security business strategy will integrate and online and offline business model that will provide clients with global asset allocation solutions.
Sidney: Denominated in RMB.
Sidney: In terms of asset management net revenues from domestic asset management was RMB 772 million during the year.
Sidney: Corporates team continued to focus on managing <unk> in the primary market during the year achieved over RMB seven 5 billion in primary market exits.
Sidney: An increase of 11% compared with the previous year due.
Sidney: Due to the lack of new fundraising.
Sidney: We are facing declining management fee base as product expire, which is expected to impact our overall revenue growth in the next three years.
Sidney: In response, we will continue to grow the scale of overseas Muslim product distribution to offset the expected decline in domestic management fees.
Sidney: Our goal is to grow overseas.
Sidney: Two U S 20 billion and over next over the next three to five years.
Sidney: In the public market.
Sidney: Private secondary products managed by Gopher, mainly focus on better returns from global market through cross border RMB denominated ETF.
Sidney: The aggregate transaction value of this was RMB 93 million during the fourth quarter with a cumulative value.
Sidney: <unk> hundred $97 million for the whole year.
Sidney: In terms of insurance brokerage business now.
Sidney: Net revenues from domestic insurance to glory had a new low of RMB 40.
Sidney: 43 million during the year, primarily due to adjustments, we made to the product mix and the restructure of a south team.
Sidney: We on boarded 42 commission only agents during the year, but their ramp up in sales volume will take more time.
Sidney: We had into 2025 the recruitment of commission only agent team will be our main priority.
Sidney: Glorious product focus has been adjusted towards medical and elderly care products that meet the long term needs of first generation entrepreneur.
Sidney: But the demand is less urgent or immediate allocation, meaning it will take more time scale.
Sidney: Yeah.
Sidney: Yes.
Sidney: Yes.
Speaker Change: We're equal Ali Hassan yet or military I can meet you should G&A shelves will deal with that Bianca.
Sidney: This actually tangible goods that should have that switch.
Sidney: So what <unk> seen that shelves will deal with the kitchen.
Sidney: So I take that out it's again Goldman Sachs', Jim names like Huawei shinko towards that.
Sidney: The only way Joan Tong again totally clear.
Sidney: Oh, yeah all in yen.
Speaker Change: John tissue, Tony Shakira functionally.
Sidney: He can ship to.
Speaker Change: It really underpins Joel.
Speaker Change: Cash at the Holdco Java tissue chairman that we totally.
Speaker Change: So I can't eat booking center to teach you hook Whatsapp.
Speaker Change: Candy caught up is how should I do.
Speaker Change: Santa Monica in Haynesville.
Speaker Change: Yes, sure what do you see that changing in the charter deal.
Speaker Change: Sure.
Speaker Change: What changed towards the homepage at a higher wage.
Speaker Change: We cohorts Eagle <unk> change any of the hotel had haynesville huh.
Speaker Change: Thank you Pat.
Speaker Change: So thank you for the covenant.
Speaker Change: It's a whole social agent, Peter Osborne, yet or totally.
Speaker Change: They'll be able to see <unk> yeah.
Speaker Change: Shadow each and yeah, no yeah, no GAAP continuing that path in Japan.
Speaker Change: Well, maybe a junkie equal shutoff Waco Chihuahua.
Speaker Change: So I'd say that oil and punching way digest, so I suggest <unk>, Peter Salvo kit kit.
Speaker Change: Looking back at 2024, our primary focus domestically with our restructuring our domestic sales team separating each of them into independent and license business unit.
Speaker Change: Overseas wise it was building out our team of relationship managers.
Speaker Change: In the next few years, our priority will be acquiring new clients both.
Speaker Change: Domestically and overseas.
Speaker Change: Looking forward our priorities for 2025 will be squarely on first ensuring full compliance with regulatory standards in all regions, where we operate prioritizing both the quality and quantity of our growth.
Speaker Change: Secondly, expanding our team of overseas RM in the regions and countries, where we have established booking centers.
Speaker Change: Certainly expanding our team of commission only agents for our domestic and overseas insurance brokerage business.
Speaker Change: Four three.
Speaker Change: Optimizing global investment and asset allocation solutions, who provide clients with more competitive investment portfolios and asset allocation strategies.
Lastly, improving technology system to better serve clients online.
Speaker Change: And the last the board of director have already approved an annual special dividend, which together amount to RMB $530 million, which is equivalent to a 100% of our non-GAAP net income for the year. This complements our continued execution of our share repurchase program.
Grant Pan: I would now like to turn the call over to grant to go over our financials in more detail. Thank you all.
Hello.
Grant Pan: And thank you vendor and greetings to everyone joining us today.
Speaker Change: Throughout 2024, sluggish macroeconomic environment increasingly stringent regulatory requirements.
Grant Pan: And shifting client preferences created significant headwinds.
Speaker Change: Wealth management industry.
Speaker Change: Challenging environment impacted our financial results during the year with both full year revenue and net income.
Speaker Change: Falling from last year.
Speaker Change: But with these challenges continue to impact the short term performance.
Speaker Change: As Anders mentioned, our business remains profitable and continues to generate solid cash flows.
Speaker Change: This presented opportunities for undertaking our organizational restructuring domestically and investing in our overseas expansion.
Speaker Change: We positioned ourselves.
Speaker Change: Our long term sustainable growth while market sentiment was subdued.
Speaker Change: Building out new sales team.
Speaker Change: Infrastructure domestically and overseas is expensive process.
Speaker Change: It will take time to ramp up before it begins to meaningfully improve our performance.
Speaker Change: While we expect near term pressure our business remain these found that foundational Kansas will position us for sustainable growth.
Speaker Change: It's already beginning to yield results, our financials and 2024, reflecting the progress we have made expanding our portfolio of overseas alternative investment products.
Speaker Change: Additionally, we are ideally positioned to capitalize on the strong recovery of domestic capital markets.
Speaker Change: Starting in late September, which drove strong demand for RMB denominated secondary products and.
Speaker Change: And partially offset the decline in revenue from private equity product.
Speaker Change: Okay, So let's get into the details of our financials.
Speaker Change: Total net revenue were RMB $652 million during this quarter down.
Speaker Change: Down 18, 5% year over year and 6% sequentially.
Speaker Change: Total net revenues for the year were RMB, two 6 billion down 21, 1% year over year.
Speaker Change: Notably overseas net revenue reached RMB, one 3 billion in 2024 accounting for 40, 881% of total net revenues up from 43, 5% last year.
Speaker Change: By region domestic net revenues during the fourth quarter increased 18% sequentially to RMB 362 million driven primarily by more than 200% surge in distribution of RMB denominated private secondary products.
Speaker Change: However, full year domestic revenues declined by 27, 5% year over year.
Speaker Change: Primarily due to significant swap revenue from domestic insurance.
Speaker Change: And recurring service fees from RMB denominated private equity products.
Speaker Change: Amid the challenging macro economic environment.
Speaker Change: Net revenues from overseas during the fourth quarter decreased by over 20% year over year and sequentially over 12% all year.
This was mainly due to decreased distribution of overseas insurance.
Speaker Change: Amid fierce competition in Hong Kong insurance market.
Speaker Change: Significant sequential fluctuation.
Speaker Change: If we exclude insurance revenue from overseas investment products actually grew during the quarter and year on a year over year basis, reflecting the progress we have made expanding our auctions of investment offerings.
Speaker Change: Okay.
Speaker Change: By revenue type during the quarter, one time commissions decreased by 56, 1% year over year, and 23, 2% sequentially, primarily due to a decrease in distribution our reinsurance partners.
Speaker Change: Both domestically and overseas.
Speaker Change: Recurring service fees increased four 4% sequentially.
Speaker Change: Declines the RMB denominated private equity products, partially offset by gains in RMB denominated private secondary products.
Speaker Change: Performance based income surged by over 300% year over year, driven by the recovery in onshore market.
Speaker Change: RMB denominated private secondary products contributing nearly RMB 30 million performance based income.
Speaker Change: Total transaction value in the fourth quarter was RMB 16 3 billion.
Speaker Change: Slightly down one 7% year over year and up 14% sequentially.
Speaker Change: Transaction value of domestic fiber optic nerve products was RMB two 5 billion. During this quarter, a significant increase of over 200% sequentially well overseas investment products with U S dollar 964 million.
Speaker Change: 16, 4% year over year.
Speaker Change: <unk>.
Speaker Change: The transaction values of U S. Dollar denominated products reached U S dollar $4 3 billion up nearly 30%.
Speaker Change: Year over year.
Speaker Change: <unk> 48, 8% at all or has that Ravi.
Speaker Change: In 2024, comparing to only 32, 1% last year.
Speaker Change: Benefiting from the enhanced competitiveness overseas ottens or investment product portfolio U S. Dollar private equity products totaled U S dollars $663 million.
Speaker Change: 44, 9% year over year.
Speaker Change: In U S dollar private secondary.
Speaker Change: Excluding cash management products.
Speaker Change: Total U S dollars $236 million up 22, 1% year over year.
Speaker Change: By the end of this year U S dollar denominated.
Speaker Change: Grew by 15, 1% year over year U S. Dollar five 8 billion with U S dollar denominated AUR.
Speaker Change: Increasing by four 6% year over year U S dollar eight 7 billion.
Speaker Change: Reflecting our ability to capture a larger share of clients use collar wallets for investment products.
Speaker Change: Moving onto the income statement we.
Speaker Change: We implemented rigorous cost control measures in 2020 for driving down operating costs and expenses by 10, 5% from last year.
Speaker Change: Typically all year compensation and benefits decreased by seven 4%, reflecting improved employee efficiency.
Speaker Change: Selling expenses fell by over 40%.
Speaker Change: General and administrative expenses remained stable.
Speaker Change: Even during the fourth quarter peak marketing season, we maintained a disciplined approach to expenses.
Speaker Change: Total operating costs and expenses for the quarter or RMB 514 million a day.
Speaker Change: Chris.
Speaker Change: 11, 1% year over year, and an increase of 16, 1% sequentially due to seasonality.
Speaker Change: In line with revenue trends operating profit declined in 2024 with a full year operating profit margin increasing to 24, 4%.
Speaker Change: Partly due to the reduced government subsidies.
Speaker Change: Net income for the year was affected by certain nonrecurring factors.
Speaker Change: Including.
Speaker Change: The increased effective tax rate at 31, 5% from 25 in 2024.
Speaker Change: Additionally, due to our GP share of investment in the product we minutes a loss of RMB $112 million will be incurred in equity affiliates during the year.
Speaker Change: Taking these factors into account <unk>.
Speaker Change: non-GAAP net income was 132 million for the fourth quarter and RMB $550 million for the year.
Speaker Change: By year end, our client base remains stable with 9334 total diamond Black card clients.
Speaker Change: But ill oversee client base.
Speaker Change: <unk> growth so over 17 600000 registered clients.
Speaker Change: <unk> 18.
Speaker Change: Year over year.
Speaker Change: And two 1% sequentially.
Speaker Change: The total number of overseas government black card clients.
Speaker Change: <unk> <unk> hundred.
Speaker Change: Zander mentioned, we were rather conservative in terms of acquiring new clients throughout the year, but over the next few years. However, this will be our major focus as market dynamics shift.
Speaker Change: <unk> opportunities.
Speaker Change: Any more market share both domestically and overseas.
Speaker Change: In terms of balance sheet still remains strong and robust.
Speaker Change: Our cash balance decreased as a result of large dividend payout in the third quarter, we're pleased to see cash and cash equivalents and short term investments and Christmas.
Speaker Change: RMB five $1 billion by the end of the year.
Speaker Change: Our current ratio also improved to four five times debt to asset ratio remained stable at 15% with no interest bearing debt.
Speaker Change: This provides a solid foundation for us to further expand our overseas business.
Speaker Change: Lastly, shareholder returns were in accordance with the U S. Dollar 50 million share repurchase program, we announced in August 2024, we have repurchased over 600000 doses by the end of 2024 equivalent.
Speaker Change: 0.9% of total issued shares.
Speaker Change: The appreciation of the longstanding support from shareholders. The board has again approved a new dividend and a special dividend, which together amounted to RMB 550 million equivalent to 100% of our net non-GAAP net income for 2024.
Speaker Change: Although we are facing short term headwinds, which impacted our financial performance in the short term, we expect to see revenue and profitability recovery in the future as we ramp up our overseas business in domestic market recovered.
Speaker Change: We firmly believe that our stock remains undervalued and did not fully reflect our global.
Speaker Change: Prospects.
Speaker Change: Robust balance sheet positioning special bonds, Mandarin speaking high net worth investors.
Speaker Change: Around the world.
Speaker Change: Guided by our vision to become the preferred wealth management platform.
Speaker Change: Global mandates being lines remain committed to creating lasting value for our clients and continue to deliver sustainable returns to shareholders will join us on this journey.
Speaker Change: Thank you all again.
Speaker Change: And support with that I will now open the call to your questions.
Speaker Change: We will now begin the question and answer session.
Speaker Change: To ask a question you May Press Star then one on your Touchtone phone.
Speaker Change: If you are using a speakerphone please pick up your handset before pressing it Keith.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: The first question today comes from Charlotte Liu with UBS. Please go ahead.
Speaker Change: Hello, Jewish UBS for how long.
Speaker Change: Hello Hello.
Speaker Change: Okay.
Speaker Change: Where do you rank them.
Speaker Change: Where are you in charter for sure May go down say by any polishing. He is asking for a whole lot of angles.
Speaker Change: What's your name a single engine.
Speaker Change: D lung tissue.
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Speaker Change: Probably I shouldn't complain that they.
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Speaker Change: Kansas Italia Columbia, you also it sounds like chicken chipotle tissues, and she's on our Union because home would you say that the outdoor camera well I don't show some traction.
Speaker Change: Akshay.
At that time.
Speaker Change: I want to tackle the issue.
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Speaker Change: I'm going to have a challenge that will make all yes, it's always a couple of things on that.
Speaker Change: <unk>.
Speaker Change: Okay.
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Speaker Change: How much of my time I showed you that sometimes are likely not to pull it out with it she took longer than she does.
Speaker Change: Kendall Who's here real quick also somewhat Churchill downs, whether you took control trigger the.
Speaker Change: The interest that she thought without layoffs.
Speaker Change: That's right.
Speaker Change: Oh, okay.
Okay. Okay. Let me translate this is Helen Thomas Yes, since the beginning of this year.
Speaker Change: <unk> aimed at the most important investment products.
Speaker Change: What type of products has been more popular with our current investment strategy and which types of products are being promoted.
The past three quarters the size of insurance products have declined yeah, yeah, well this trend continues into 'twenty one.
Speaker Change: Future, which products will be the main source of revenue growth.
Speaker Change: One time Commission on my second question is Oh overseas business growth versus revenue has been increasing quarter by quarter. It was Jeff mentioned, maybe about a 90 day it's being.
Speaker Change: Just as a booking center can you provide information on our business development, maybe not as they come.
Speaker Change: Currently which countries or regions are most watched yourself offices without the new growth on my last question in this quarter, we haven't seen a sizable settlement reversal in conclusion legislation well first of all can you give us more color. Thank you.
Speaker Change: Okay.
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Speaker Change: Even if I just find it holds us having ashish will hold in Seattle with a bunch of your own.
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Speaker Change: Now that you've got a cohort of one year.
Speaker Change: No matter, how cool the pulses, having ashish you'll find me a woman she should kind of see.
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Speaker Change: Hi, Sheila chat Martha ICL cheeky gets that horses. So that's definitely you can hold the shipyard you're going to like I said chasing just alethia ship Apple watch it strong wall.
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Speaker Change: Jill Quigley today towards those haven't even shown that little tiny she should I say just a cohort.
Speaker Change: The only thing that I did.
Speaker Change: Ashish Hi, you ship and other things.
Speaker Change: And you can weigh Chinese auto told me $10 your children's day, and there's a whole bunch of Ikea.
Speaker Change: What's happening what's happening in the channel the Sheena.
Speaker Change: Aegis is long time industrial Hudson City here. So that she can you just touch on that a chiller eating a palo Alto machine that Autonation will of Copel <unk> E <unk>.
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Speaker Change: That sounds, yes, that'll hardcore household hesitance home a cohort.
Speaker Change: Just on page if that's all hitting your five light mindful cohort that Toyota Sienna showed punish you don't Wanna eating out.
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Speaker Change: Theres a pages just eating into the guide.
Speaker Change: Page home change will pages <unk> pushes what's just suggest that you guys just have it so there's lots of woman in Seattle, the cleanliness I mean, how do you see it.
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Speaker Change: What does she she was having to hold me a handout you can see that accumulate that she's just want on the ASO yet.
Speaker Change: George and Kashi policy Outback I don't get hold of just what you said.
Speaker Change: Talladega chocolate unless digenea audio and yet almost hand out say actually it's actually I mean, even Latino wishes, so as I say, it's stephane.
Speaker Change: And then a good job and that's really what's happening with genius English, Ohio, I just shop.
Speaker Change: Actually I'm glad that you see assortment a cohort pitches with humans that.
Speaker Change: So it seemed like a political sometime you cope with each of them in the call Joshua shipyard, Washington, our shelf without the Eagle and teaching mellow pace.
Speaker Change: Okay.
Xander: Xander, So I'll do a translation of Denver.
Speaker Change: And then there's response so like Canada has mentioned we published our newest version of addition of RCI reports in the first quarter of the year and I guess, the overall logic behind our house view is that we think that the global market will remain.
Xander: They're volatile due to.
There is uncertainties in the market.
Xander: So our suggestion to our clients is to seek the relatively.
Xander: Certain invest.
Xander: Investment products within these uncertainties and also we stress that global asset allocation is also very important.
Xander: So in terms of client sentiment and demand.
Xander: We saw the trend since the first quarter and also extending into the first quarter. This year that the investment sentiment and demand among the Chinese high net worth clients have been rebounding.
Xander: I guess from two main factors first is that the subdued investment sentiment.
The COVID-19.
Xander: Situation in China has reached a relatively bottom point.
Xander: I guess.
Xander: For the fourth quarter last year.
Xander: In the past two years, our clients and also both of the Chinese whenever clients didn't really engage in a lot of investment activities and now we're seeing their confidence starting to pick up.
Xander: And secondly, I guess as the margin performance.
Xander: Whether it's the Asia Asia H share Hong Kong stocks.
Xander: Or even the U S stocks.
Xander: Have been rebounding so long.
Xander: A lot of clients have you know coming back to the investment.
Xander: Demand.
Xander: And thirdly in terms of what types of products our clients currently birth.
Xander: So I guess in times like this liquidity is also very important consideration among our clients. So a lot of the public market Securities hedge fund products.
Xander: Themselves are <unk> based and liquid and also some of the some semi liquid primary market products such as.
Xander: Our problem credits.
Xander: Infrastructure.
Xander: Alike are also very popular among our clients.
Xander: So I guess or concern or our target is to.
Xander: On the one hand to.
Xander: He has our product shelf to meet with our clients demand, but on the other hand is really to suggest our clients too.
Speaker Change: <unk> engaged in a global asset allocation strategy.
Xander: And also on top of that in.
Xander: In 2025.
Xander: All the advancements in the artificial intelligence and <unk>.
Xander: St.
Xander: Whether it is.
Xander: Primary market or public securities.
Xander: Anything related to AI is also a very important theme.
Xander: For an investment team for our clients.
Xander: A bunch of quiet policy and chanting that Tricia.
Xander: You just hung up I can't champion there has been a change in sufficient data and then the chancellor.
Xander: So the fact that you know you have a partner on the aegis Egencia are totally <unk> cohorts, both annual and sort of how you see another crusher should Eagle project, that's been doing out of the just the women's judo woman of cocoa champions side should help I can cope with the July you should pay out well managed attention.
Xander: Page to juggle cope with the heart and soul portion that you got to know.
Speaker Change: Joe and <unk>.
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Xander: Just if I can just to how to cope with department of cohort three in Ohio, Michigan, and Ohio, <unk>, well Michele Buck.
Xander: On Wednesday <unk> of.
Xander: And can you get a code I guess, there's no patent assertion.
Xander: So there's a central I guess.
Xander: So Nicole Richie ship with Honda.
Xander: Why are you back in time in a while our junior high simply Youre. Your gut tell you that for sure that you can continue which at the moment the only element <unk> ICL Keck, who will tell him that catches those omi shipowner on keytruda.
Xander: And the ECA another yoplait a fine I'll just hit those chicken pox each of her so that she can be thought of as a.
Xander: <unk> for the Lucky they will cope with the Eagle at the Aha.
Xander: The patent litigation.
Xander: But you had a bunch of light on it.
Xander: Just another decondensation issues on the Eagle Wuxi, <unk> and Jim as well.
Xander: Okay.
Xander: I can go for the hot she isn't over yet.
Xander: Sure.
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Xander: Tien Tsin I sound like a kitchen or generally speaking, we don't have to have Melissa <expletive> digitally how that UA.
Xander: Sandoz element, but it's not like yourself.
Xander: So that's really it I can't see that that charge has especially it's a I'll just touch on the hardening of the downturn.
Xander: The HIFU Baltic Eagle.
Xander: What happened this year.
Xander: Give us kind of how those should check chemie, that's all okay.
Xander: Tricia film the Copa <unk>. So let me hit you did a sort of like that.
Xander: Ali <unk>.
Xander: So if I'm in a year with the Hanmi Q1, hopefully early cohort for this year.
Xander: Thought so did a bunch of all access element policy engine that you've got under the Geneva.
Xander: While you can never make what's I E. They can watch elements that make all the possible named patient to me out of the way lined up which are dibaba dalyell and yet almost sort of a handful of time team I think Josh Duncan attempting to see if I can touch it that Ali usnea, notwithstanding all of that.
Xander: I cannot tell me, what Ohio the tundra.
Speaker Change: Chuck Handy.
Speaker Change: The cable stand alone additional Amanda undercurrent closer Chinese actually cant windup bulk onto the machines are again as you gotta make one job.
Speaker Change: The timing is.
Speaker Change: No.
Speaker Change: She is thinking about me here, there's a culture of course with the huddle should that I think are highlighted by the 20th speaking assuming the taken king.
Fitch also with me and the journey that traditional partner the channel at the time of day that she someone does that mean.
Speaker Change: Attempting that Nick.
Speaker Change: Okay. So I should have been anyway, Poland closely contango vessel or ones that you just had anytime in the foreseeable future.
Speaker Change: I think you'll see that that portion of the pie.
That's just really change any of Chicago and Atlanta.
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Speaker Change: Kennedy I should let all those homes that will I don't know exactly what that Canada, another year with Hutton Johan <unk>.
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Speaker Change: Well I like you know you got a patent that you got.
Speaker Change: No.
Speaker Change: I don't delete like that.
Speaker Change: Thank you Dan there so the.
Speaker Change: The first response is related to insurance product, so I guess, the insurance market, especially Hong Kong.
Speaker Change: It's still very highly competitive because there are quite some.
Speaker Change: Operations that are not so compliance with the regulatory requirements, including.
Speaker Change: Commission kicking bags, but we never.
Speaker Change: Did anything like that.
Speaker Change: Stick.
Stick to.
Speaker Change: Compliance and regulatory requirements, and we never kick back in commissions to clients.
Speaker Change: And I guess the difference between NOLA and the other insurance brokerage firms is that the fact that we are.
Speaker Change: Provide our clients with a overall asset allocation advisory and insurance is part of that advisory or solution, where we suggested our clients to use insurance as a tool to protect the safety net of the overall portfolio.
Speaker Change: So also the clients that we serve and also the average ticket size for insurance is higher than the peers or the other brokerage shops in the market and.
Speaker Change: Denver has recorded in the previous.
Speaker Change: Earnings call.
Speaker Change: Overall insurance premium.
Speaker Change: Creased by 30% this year.
Speaker Change: The decline group is still are quite different from the market competitive competition.
Speaker Change: So looking looking ahead to this year into 2025, we think that there will still be a.
Speaker Change: Competition in the market.
Speaker Change: And to counter that we've also worked with the insurance.
Speaker Change: Firms or the product of others to come up with.
Speaker Change: No discounted plans for our clients, but this is on the product side, rather than kicking back commissions.
Speaker Change: And.
Speaker Change: During the past year, we've seen the Hong Kong government.
Speaker Change: Yes.
Speaker Change: Coming out with.
Speaker Change: Many of the new requirements to counter the.
Speaker Change: Noncompliance operations in the market, which is.
Speaker Change: Thank to our and it's beneficial to compliance firms like Noah.
Speaker Change: But I guess really be.
Speaker Change: The challenge is that the fact that a lot of the onshore wealth management.
Speaker Change: Platforms clapped after the collapsed a lot of the employees or their relationship managers turn themselves to do overseas insurance.
Speaker Change: So that the supply or the labor supply in the market is.
Speaker Change: Increasing so I guess, our overall strategy for 2025, it's still too I guess used asset allocation overall advisory coupled with multi strategy and also giving.
Speaker Change: Providing a better value to our clients working with insurance firms to increase our competitiveness in the insurance product segment.
Speaker Change: And also Helen asks about our operation in the U S. So.
Speaker Change: U S is a very important market and also a plant booking center for our business in.
Speaker Change: In 2020 for our product.
Speaker Change: Or a majority of our focus in the U S has been on the product side. So right now we have about we have four teams for different teams in the U S and three of them are focusing on either investments our product selection and we're also very.
Speaker Change: Very happy that.
Speaker Change: Recently and also in the near future, where we'll be welcoming some of the very top tier talent, joining us who have worked in top tier hedge funds or fund managers previously.
Speaker Change: And we think that this will increase our competitiveness and effectiveness in terms of product selection and also GP and farm manager coverage, because we think that even though we think we are pretty competitive in terms of our product selection in our shelves.
Speaker Change: To keep up the competitiveness, we need to continue to cover and worked with the GPS, especially in the local markets in the U S.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: One is on colonial mirrors muscle tone going into Mexico.
Speaker Change: Okay.
Speaker Change: Second question regarding the U S market.
Speaker Change: We were actually.
Speaker Change: Our are now constructing a in <unk>.
Speaker Change: Or city or locations actually we used to have.
Speaker Change: In the past three investment teams one is in the Silicon Valley are mainly fixed.
Speaker Change: On the.
Speaker Change: Tech oriented.
Speaker Change: And also another real estate in New York.
Speaker Change: And we're in the process.
Speaker Change: Acquiring advisory capabilities.
Speaker Change: That will allow us to have a third bookings that are in addition to Hong Kong Singapore.
Speaker Change: In the U S market and we also have a.
Speaker Change: Vendor has mentioned.
Speaker Change: On OPM, a which is the product selection center.
Speaker Change: In Palo Alto.
Speaker Change: And also has a low carb corporations from local banking partners.
Speaker Change: Also another what location.
Speaker Change: In Irvine.
Speaker Change: Angela mainly.
Speaker Change: Serving our clients on one is our U S insurance side of me and to us.
Speaker Change: General reception site too.
Speaker Change: Your host various clients.
Speaker Change: Activities.
Speaker Change: So the new revenue from two additional locations.
Speaker Change: Still slowly coming into shape.
Speaker Change: But I guess the capability of adding another.
Speaker Change: Bookings than peers in North America, especially to serve.
Speaker Change: Chinese immigrants.
Speaker Change: The U S and Canada.
Speaker Change: Give us a lot of advantage, especially competing.
Speaker Change: With.
Speaker Change: Other Chinese background.
Speaker Change: Yeah.
Speaker Change: So that's the second question and third question I think briefly you mentioned about the quarter for one of our.
Speaker Change: The reversal from the accruals. It is the one a one off event.
Speaker Change: The final outcome of a pending case was actually more.
Speaker Change: I'm optimistic a preferable for us.
Speaker Change: But it's one of them.
Speaker Change: Wondering albertsons is that borrowing.
Speaker Change: Principal coming back.
Speaker Change: Hello.
Speaker Change: We intend to keep it there might be one well on the Hell out of my friends and colleagues.
Speaker Change: Finally cohorts on real quick with the ticker.
Speaker Change: Can you see that.
Speaker Change: So I think people towards the team and I remain nanometer yet.
Speaker Change: Okay. Thank you.
Speaker Change: <unk> hundred two Cabana Guy just doesn't have a phone call you with how we can cope with that.
Speaker Change: Cookbook high single it seems you're cheating, sometimes that fascism uptime assurance now listen don't take a hard hard so they can be out of them.
Speaker Change: So it sounds like he got in Portland.
Speaker Change: They'll Kendall.
Speaker Change: Cohorts attitude I think Don that Oh, gosh, that's what I told you you would see.
Speaker Change: Hamlin somehow to the funds out those who take on Keytruda now I'm Gonna see I will tell you, though occasionally off.
Speaker Change: Well, the only I mean rcs.
Speaker Change: And finally Copel <unk>.
Speaker Change: That's all about retention of cohort attendances and paid to Todd's question.
Speaker Change: And push it out and so that's what I'm, saying to us in terms of their pizza and well me and taking down the Copel <unk>.
Speaker Change: How does come down to kind of tally at 110000 cases, so yes, I'm not I can't Daniela and well mainly to the Shanghai <unk> that because you don't want that.
Speaker Change: Yeah, Hey, so pushing them and getting hung up you got to think.
Speaker Change: Certainly if you call them, taking comfort hotels that Doug would you say.
Speaker Change: That you will not cause the chisel, we don't jump.
Speaker Change: Compound that he's supposed to turn to the Jamba Inc.
Speaker Change: Well, that's it seemed that it should be done you can you can't lose collateral and what kind of handle think of cohorts, finishing.
Speaker Change: Tim and Julian when Neil at Tinder in the base.
Speaker Change: Well generally I have no questions. So we can't afford that coal and they are just the bunker going towards and kept pizza ovens at central banks shouldn't pizza well maintained quite a high teen Sheila how are you doing.
Speaker Change: So that's the passion for me because this is a tough thing. So what do you think and you sit down and leasing out and things that go with that one.
Speaker Change: Yeah, but that wasn't the tendering cool tangled and passion.
Speaker Change: This is how the decanter you can pay for that.
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: Handling attempting a challenge.
Speaker Change: Yeah.
Speaker Change: Thank you. Thank you chairlady so.
Speaker Change: The dimensions that during 2020 for I guess, especially in the first three quarters. The overall sentiment among Chinese investors.
Speaker Change: Of investments and Mi reached a bottom.
But we've seen a rebounding.
Speaker Change: Trend since 2025 and for example, we hosted a public.
Speaker Change: Public market summit in Hangzhou, China.
Speaker Change: This month, and we had over 1000 of our clients attending the summit.
Speaker Change: A lot of people and a.
Speaker Change: The feedback that we got was that the clients are now having more interest to listen to what the managers are have to say and they feel the urgency to act on investment.
Speaker Change: And also this is also the case in overseas markets, whether it's Hong Kong, Singapore, or Japan, we're seeing that the Mandarin speaking, our Chinese clients absolutely on the move whether it's.
Speaker Change: Business businesses going overseas or.
Speaker Change: Or.
Speaker Change: Global investment our overseas investment opportunities.
Speaker Change: So in terms of our CIO view, we think that this is the moment right now is a critical moment.
Speaker Change: For Chinese clients to adjust their strategic asset allocation not only on the tactical side, but really on the strategic asset allocation side and which.
Speaker Change: Which is also what we are doing to guide our clients to make their changes in their asset allocation strategy.
Speaker Change: And also she mentioned that in the Hong Kong insurance markets are now.
Speaker Change: Now the competition is not a I guess, a healthy stage state of status.
Speaker Change: As far as on the product side the expected.
Speaker Change: Rate of return of the insurance products.
Speaker Change: Used to be.
Speaker Change: I guess on ordinarily high and we're seeing that the Hong Kong government's now stepping in to make adjustments to the expected rate of return on investment return on this product.
Speaker Change: Secondly in the competition side, there are a lot of quite a lot of these so called family offices are multifamily offices, but are not really operating like family office. So their clients no defeat.
Speaker Change: The feedback from their clients is that.
Speaker Change: They don't feel like they are.
Speaker Change: Served us really well.
Speaker Change: So.
Speaker Change: Our strategy is really for Noah.
Speaker Change: To serve.
Speaker Change: Large clients and also use global asset allocation strategy service large larger clients.
Speaker Change: And.
Speaker Change: In terms of insurance, we're also trying to learn and adjust.
Speaker Change: Two different markets and that's why we are engaging the new commission only agent space to acquire new clients.
Speaker Change: Similar to some of the other firms are doing.
Speaker Change: And really for our E house relationship managers insurance.
Speaker Change: Tool to help our clients to secure their safety nuts in their portfolio at allocation.
Speaker Change: Alan.
Speaker Change: Okay. Thank you Alan.
Speaker Change: Okay Daniel.
Speaker Change: Uh huh.
Speaker Change: Oh, they concentrate just yet.
Speaker Change: Hello, Thank you.
Speaker Change: Once again, if you would like to ask a question. Please press Star then one to join the question queue.
Speaker Change: The next question comes from Peter Zhang with Jpmorgan. Please go ahead.
Speaker Change: How does she said quoting some good looks.
Speaker Change: I will then.
Speaker Change: Of course, the big event superior solid chain glad he's from Goldman.
Speaker Change: Digital will be all kind of all lots of T shirts, kokoda changed <unk>, it's actually been a social Oh.
Speaker Change: So you go on coordinator.
Speaker Change: So actually one period towards the change you're attaching.
Speaker Change: Now on the cobalt got long and shallow Mount Holly shoulder tissue.
Speaker Change: Okay. So should see local expense once you require.
Speaker Change: Why the relationship managers, what kind of social but the.
Speaker Change: However, it is shaping up and did a full more sites. The depot, maybe you also saw alcohol tightly Sasha.
Speaker Change: Thanks, Chicago, you should do it.
Speaker Change: So what metrics okay.
Speaker Change: Now by the way it plays out.
Speaker Change: So you always have something but they.
Speaker Change: Also a cultural change, but it's a little bit of chartwell each oh.
Speaker Change: Illinois why I'm.
Speaker Change: Okay colleague across alcohol trends does it go higher.
Speaker Change: Account growth.
Speaker Change: So you guys so much.
Speaker Change: As always our plan.
Speaker Change: Thank you for.
The opportunity to.
Speaker Change: As crusher as I said, Peter Jones from Jpmorgan I have two questions. My first question is regarding the first quarter trends.
Speaker Change: That helps you Uh huh.
Speaker Change: Given us an update on the first call that trade in for Bob.
Speaker Change: Client sentiment and wealth.
Speaker Change: Wealth management product sales team first culture and waste.
Speaker Change: At the completion of our strategic transformation and the Celgene pool banking.
Speaker Change: So messaging basketball center by things like tiny tiny Paul.
Speaker Change: How shall we expect our.
Speaker Change: Todd you tied to five revenue trend can we expand the rabbinate youll see stabilized HIV advertising.
Speaker Change: Our recovery tied to 'twenty five my second question is regarding the overseas.
Speaker Change: We noticed that the number of overseas relationship manager has it caused by 5% sequentially I can post quarter end fell short of the previous target of 204.
Speaker Change: <unk> had before.
Speaker Change: We're still understandable.
Speaker Change: Hi, Steve.
Speaker Change: Really such a bad bet.
Speaker Change: Yes.
Speaker Change: Fourth quarter last year, and what will be our overseas.
Speaker Change: Hong.
Paul Sheehan: Hello, Paul.
Speaker Change: And I also wish to understand our overall outlook for target. Thank you.
Speaker Change: Uh huh.
Speaker Change: Without the Eagle <unk>.
Speaker Change: Each is a hallmark answer without co for the change.
Speaker Change: Youll, which aren't out of the equation.
Speaker Change: Asia, So in Xi'an, <unk> equaled Asahi coupon, yet, we don't know what youll see kind of flat and when she actually has its adhesives. When you usually get I forgot cohort and then thats, a hiccup or should I say towards it.
Speaker Change: Outside Shanghai.
Speaker Change: And yet as you balance the auto.
Speaker Change: Although you should say sung <unk>.
Speaker Change: So I guess just kind of as a whole.
Speaker Change: The motto, although the final pillar of our cohort year, frankly, just decided no yeah.
Speaker Change: Uhm.
Speaker Change: Chico adult male.
Speaker Change: Say on golf into the Eagle Ford the widely advertised.
Speaker Change: It has a quite a bit until it was actually more of a hurdle.
Speaker Change: It's also the headboard you just havent got any keyboard O'hara.
Speaker Change: Yes.
Speaker Change: So I tried Nicholas initiatives has had an angle at $10 each on the tmall undergo shallow guardia chain will find interesting.
Speaker Change: So you can't just think others.
Speaker Change: We ship for the associated number today, if a country I Copa Lineation Goldman I shouldn't say chunk out of it once you see it the way you get home.
Speaker Change: <expletive> of unleashing Eli.
Speaker Change: Cohort a unique another cohort of Bd's Health Department.
Joe: Thank you Joe.
Speaker Change: Yes sure.
Joe: Hi, Bob.
Joe: Ta you should have gotten.
Joe: So on a digital event finally Hangzhou there you could argue is just on the Homeaway I just said on the way you think about that.
Joe: Okay.
Speaker Change: Sure I guess, our Hangzhou, how quickly to push out unless you had the Hangzhou high you see.
Joe: Just to get into your guide.
Joe: Sure.
Joe: Touch on the cohort showed out of a total each tenant.
Joe: They should have on hand.
Joe: Now that doesn't hit a cohort of high.
Joe: Reaching high sufficient.
Joe: Okay.
Joe: Just to say I shop with genius <unk>.
Joe: Jay This is Jay that's it.
Joe: <unk>.
Joe: <unk> the bulk of that does that add to the top as I oppose this I mean, not just the highest yield.
Joe: But what I think.
Joe: Yeah.
Joe: They just didn't go does that change your pages or whatever.
Joe: Copa don't have <unk>, yet almost in cohort of Ottawa leadership, often the CL bottle.
Joe: Cohort two we can kiss a woman.
Chenzhou patriotic definitely push a tiny tiny teachers.
Joe: So that's helpful to hear I'm, sorry, if I'm correct, what I just to cope with the change it Ashish This is Paul.
Joe: It's really the change in ownership.
Speaker Change: So please listen your pet.
Speaker Change: Yeah, Phil on the island in the Middle of a many year, what's your what's your wife's element to add something about update our guidance documents. So that's okay.
Speaker Change: That's all the churches that Ali.
Speaker Change: Thank you that woman isn't available will be out in that you don't know if I'd never hopefully that's hunting our call today is happening which is why it changed over the course of the day the turnkey.
Speaker Change: It will.
Speaker Change: We will be all those things on it you would say if I may have heard yesterday, you triage. The cool weather you Ashish you say catch up on our homeland.
Speaker Change: How severe a J that Jesse is a bigger holiday you've accumulated cohort you got salary of Patriot health again, Tony Eagle transplanted fine yes.
Speaker Change: Otherwise it is out of the oven you know part of the journey.
So today, you'll hopefully you can't Linda.
Speaker Change: Sure.
Cottage, EMEA total women and the UAE.
Speaker Change: Why do you say to China, and why do you say total idiots.
Speaker Change: I am pretty quickly he says I get it.
Speaker Change: Yeah.
Speaker Change: Nick.
Speaker Change: Hi, Amit.
Speaker Change: So it turns out that portion of the hall.
Speaker Change: Adachi, Ohio have I can't comment on what you see the way you think that you can tell me if I can cope with the policy shall female adult right Michael.
Speaker Change: Nevertheless, kitchen adult cohort has a page of what's out there not just yet.
Speaker Change: I can't say I can't I can't yet that that goes into this antibody.
Paul Sheehan: Paul You got places that Falcon.
Speaker Change: And then just lastly, Doha.
Speaker Change: Can you hear me.
Speaker Change: That's just out of intellectual subjecting it doesn't what me and even to the Congo Angola.
Speaker Change: Gaslog cohort posture here Nick.
Speaker Change: Uhm.
Speaker Change: And secondly, they can't tell us the advantages that page that you take yes, no excuses I can't say I changed doses have begun.
Speaker Change: <unk>.
Speaker Change: But you didn't see that you get to your bottom.
Speaker Change: Both of them, if you want to add to that.
Speaker Change: Channel patents.
Speaker Change: Pardon me.
Speaker Change: Canadian Junior and I'll pass over to EMEA, Oddsson yesterday, I think a tricky audio and yellow bar Chicago to put that way. That's how you. The fact had even fortunate.
Speaker Change: The multiyear highway doesn't need a Chechen women say Ali comfort us what you'll probably see I mean finally the.
Speaker Change: Partially it was like I got to ask against <unk> I forget just the review by.
Speaker Change: She also deal with it.
Speaker Change: So the heart has to overcome.
Speaker Change: What did he asks and again just to Sheila and I'll highlight a attached to show you the sheen Wachovia bushel soybean seed.
Speaker Change: So she got it and is that just the.
Speaker Change: The patient and how tight the unfortunate that Taiwan the Olympia.
Speaker Change: So tiger, which I'm, calling it under the <unk>.
Speaker Change: <unk>, especially at anytime Endo has the highway because all the hits you in White House <unk> home has just been really the shouldn't do when Buda Eagle hard to understand what she does al and then a failure on the golf course on top of the AGM.
Speaker Change: That's it for me I'll highlight here as well.
Speaker Change:
Speaker Change: So Peter go under that.
Speaker Change: I mentioned minions usage on a go how asher as children are at home, a dog and yeah, our southern Union Union 24.
Speaker Change: You bet. Thank you Byron.
Speaker Change: No.
Speaker Change: Not material.
Speaker Change: Hartsville can go the fashion, we got them to grow your products versus the ones that box or do the same thing in Australia, the Geneva Motor show, how youre in products or to sell them.
Speaker Change: Uh huh.
Speaker Change: Of course, you know.
Speaker Change: Our chartering performance.
Speaker Change: Aren't you won't talk about <unk>.
Speaker Change:
Speaker Change: Yeah.
Speaker Change: Although our Orlando Wawa them, yes.
Speaker Change: Arc.
Speaker Change: You go Chunghwa Patricia.
Speaker Change: Thank you <unk>.
Speaker Change: Patricia Cheng.
Speaker Change: 200, <unk> the demand.
Speaker Change: <unk> took a borgwarner draw when my mom with her by then it will come down because its users a hydrocodone brothers at the airports.
Speaker Change: Oh sure.
Speaker Change: Sure sure, yes, the arm two axes at Haile.
July is due to the temporary higher to the tune of women's shoes.
Speaker Change: Genesis bedrooms Union in Baghdad.
Speaker Change: This is Jim.
Speaker Change: Back to the U S.
Speaker Change: The coinsurance I'm, a senior in Ohio.
Speaker Change: 95% pardon me at Carnegie, though with the Wilmington go Hong Kong targets tend to get 50, I should say here that are more <unk> to the team who has done they've done by either there or the final for me is that countries are seen in washers would suggest.
Speaker Change: They're charging experienced higher like La Liga RM.
Speaker Change: <unk> Formula way I pneumonia, well this is burton.
Speaker Change: Without the Orange juice with a woman can work harder.
Speaker Change: Since you've come through into the busy Jim here, what are you done with holiday.
Speaker Change: The Macau government parallel cohorts, yes, sure I'll go into each other.
Speaker Change: Is it going to pushing back towards the mid <unk>.
Speaker Change: Compensation in downtown Miami Beach, our holiday <unk> got Capes for probably the final yard can weigh your arm the <unk>.
Speaker Change: <unk>. So we will Miss you said that Youll see that Gogo time until you go hand in hand.
Speaker Change: Guangzhou average won't be acquisitive.
Speaker Change: Our reorder.
Speaker Change: Chop there.
Speaker Change: Yes.
Speaker Change: Toggling that shipyard.
Speaker Change: Shifting gears to a minimum impact on the churn number.
Speaker Change: The arc 200 parts of you got a woman personally committed to the goal.
Speaker Change: For example, we're conducting Permian.
Speaker Change: <unk> I think it's a number.
Speaker Change: I hope to come up.
Speaker Change: Although new York from Oklahoma Huh.
Speaker Change: And what we're trying to answer sure well do that I mean, our Sydney element.
Speaker Change: The anger months yesterday Huh huh.
Speaker Change: And you said those adult 90 person, sometimes you might have been down corner Yao senior team can work with valuable towards you.
Speaker Change: I would now or what's I won't make any one time I shouldn't actually due to the sample and it just in case, you can't download he quickly and well Miss you.
Speaker Change: It's also the T cells.
Speaker Change: Not that I'm not popular tensas come out like you can't touch it that that sometimes they can save her time teaching.
Speaker Change: So high single digits.
Angela: There were some chances so Angela go ahead Tim.
Speaker Change: Sydney gives it the gamba.
Speaker Change: I don't know how long it's against the seven Z.
Speaker Change: Anytime you will show that he has to 70. So we're talking 70 in J D. S M.
Speaker Change: That's what we're talking to this is something that they see so many times I'm talking of course is on 10% suddenly that hadn't been nothing is off a door that is hardly just temporary and that basically tell me that.
Speaker Change: And you know kind of hypothetical woman theme coming out of the final film actually just as a sense of what that issue.
Speaker Change: I'm talking about the U T Saddam.
Speaker Change: Sometimes it takes when do you think how much of that shelf have you done that I understand so you'll understand acronym so locomotives.
Speaker Change: The woman salaries here listen I mean, it's so sudden that that's it's not an EBITDA incremental go to last time, you and you're not yet no.
Speaker Change: You said, you're seeing on P. L E N J P. S N sell them or sell them as I highlight these questions is that booking centers defined sound Gosh example, Nicole.
Speaker Change: Women don't feel at all and I think that he has.
Speaker Change: Now I'll pass the dental rucci cancer.
Speaker Change: So does that entice you to do that.
Speaker Change: This is the kind of a nice thing that well I'm just.
Speaker Change: This often and I sang and it turns out so it's about getting onto a D that got done yet and I think we're confident that the sun yet at all and I keep on Delta I, just the woman doesn't go.
Speaker Change: It sounds like.
Speaker Change: John just given Tanya.
Speaker Change: Does he density.
Speaker Change: Hey, Julie Bama, our CNC oscillated, how I'll put them there.
Speaker Change: Thank you.
Speaker Change: Figure than anti lingo.
Speaker Change: So I guess, thank you Peter for your question. So I guess on the first question is related to.
Speaker Change: The investment sentiment right now and the outlook for <unk>.
Speaker Change: The financials.
Speaker Change: 2025 so.
Speaker Change: I guess the overall trends.
The release mentioned.
Speaker Change: Is that we see that clients and investment sentiment has been rebounding significantly which was I.
Speaker Change: I guess a pretty.
Speaker Change: Uh huh.
Speaker Change: We saw the trend starting since last year year and.
Speaker Change: Flagship.
Speaker Change: Lockhart in Diamond current client summit.
Speaker Change: <unk> was actually the.
Speaker Change: Largest in terms of scale in our history in terms of client coverage and the number of clients attendance. So we hosted a summit in the key major cities in China as well, we did we had five sessions in Hong Kong alone.
Speaker Change: So the feedback that we got from clients with that it's very rare to have these large scale and also high quality <unk>.
Speaker Change: <unk> for individual investors or high net worth investors because on the one hand side a lot of the Chinese wealth management firms have really exited this market.
Speaker Change: And some of the I guess the foreign firms are less motivated to host this event given the market condition. So the clients who attended our sentiment summit's tell us that.
Speaker Change: The quality of the I guess the content and also the scale is probably the best in the industry.
Speaker Change: And also we will.
Speaker Change: We did a a data summary that.
Speaker Change: Basically over 90% of our diamond carbon Black Hearts are overall profitable. So this is also our I guess.
Speaker Change: The the.
Speaker Change: The most important client base and also is a reflection of the quality of asset allocation advice that we continue to provide to our clients.
Speaker Change: And also you know.
Charlie: Charlie do you also mentioned that this month, we hosted a public security summit in Hangzhou, which has been quite a hot city are considering all the technological investments.
Charlie: For example, deep seek which is also based in Hangzhou. So we hosted two days over 1000 clients attended we.
We saw the declines are very active and very keen to learn and listen to what the managers have to say.
Charlie: And they they think that the investment market in China.
Charlie: You know there are opportunities to invest in this market and we also see a lot of transaction value generated from from this summit.
Charlie: And also in terms of global asset allocation I guess, what we have been doing the past two to three years with eighth consecutive consecutive Seattle Husky reports.
Charlie: I think the clients are now starting to buy into our advice that they shouldnt just allocate their assets in a single market, which is China, but really to consider global asset allocation and investments and that's exactly what we're doing now.
Charlie: So speaking of 2025.
Charlie: Since we don't give out we are not allowed to give concrete guidance on revenue and profit.
Charlie: The overall trend is that we.
Charlie: <unk>.
Charlie: We've set our kpis and requirements for each business unit.
Charlie: And especially in the overseas investment product segments.
Charlie: Yes.
Charlie: First of all the clients.
Charlie: Sentiment and demand is growing and also.
Charlie: According to our house view this is a critical time.
Charlie: To act so we hope that the I guess the downfall in our RMB private market product and also the associated decline in recurring service fee can be gradually offset and overcome by the growing overseas imagine.
Charlie: Portfolio.
Charlie: And also in terms of insurance.
Charlie: Think that although.
Charlie: Market competition is nears, but among our clients will see that a lot of them are not subscribing enough insurance products are related tools.
Charlie: Or their succession planning and asset segregation purposes. So we want to utilize this window of opportunity to.
Charlie: I guess help our clients define their 59th within the asset allocation, especially in a highly volatile market.
Charlie: So overall, we hope that.
Charlie: Your 2024 was kind of the bottoming and 2025 should be able to see some rebounding from the bobbing up.
Charlie: So that's the outlook.
Speaker Change: So also the second question Peter mentioned about the.
Charlie: The decline in fourth quarter in terms of the overseas relationship manager.
Speaker Change: And also the reason behind it.
Speaker Change: So I guess.
Speaker Change: Vendor grant and churn at.
Speaker Change: All mentioned about our about this.
Speaker Change: Our basically our overall hiring plans. So first of all fourth quarter is usually the year end review window. So.
Speaker Change: Our primary probably experienced in China when we.
Speaker Change: Established our sales team is that.
Speaker Change: Typically new people, who join us need some time to get used to our system and also.
Speaker Change: Our basically our product and asset allocation advisors.
Speaker Change: Hum So obviously there will be you.
Speaker Change: You know.
Speaker Change: I guess people, who do not meet our expectations. So actions will be taken at the year end time, and also especially because obviously.
Speaker Change: The labor costs and I guess, the overall salary is higher so we are we tend to be more conservative compared.
Speaker Change: Compared to in domestic markets. So I guess also grant mentioned that.
Speaker Change: Overall, our EM team in overseas in 2023 by year end. It was 89 people. This year was 138 people, which was a 55% increase so I guess on the one hand, we keep having fresh inflow of talent, but also.
Speaker Change: So we have the opportunity to with the new people hiring joining us we have the people we have the opportunity to really evaluate the.
Speaker Change: RMS that join us join US previously, but didn't meet the expectations. So typically the cycle is about six months three to six months.
Speaker Change: So in terms of the hiring plan in 2025, so we have a strategic.
<unk> program internally, which is called arc 200.
Speaker Change: But it's not really to just to get the 200 Mark.
Speaker Change: And we are aside from the lateral recruitment from peers.
Speaker Change: In the local market. We are also stressing the importance of campus recruitment so.
Speaker Change: So we had about where the rush graduate joining us last year and this year, we'll start are still continuing to target the top schools globally.
Speaker Change: The best of their class.
Speaker Change: Graduate students.
Speaker Change: And aside from the relationship managers.
Speaker Change: Since we're.
Speaker Change: Putting a lot of resources into new client acquisition. So we are also establishing a so called BD team or business development team, who I guess.
Speaker Change: On the Ah <unk>.
Speaker Change: Technical side might not be able to set within the RM requirements, but they can be able to acquire clients and manage client relationships and once they.
Speaker Change: They become more sophisticated in asset allocation and investment advisory then they become.
Speaker Change: Future candidates for our relationship managers.
Speaker Change: So I guess lastly, Charlie.
Speaker Change: Added and mentioned that in the previous year and the 2024 it was really a process of involution.
Speaker Change: So a lot of the investors and analysts who are familiar with us.
Speaker Change: And probably know that especially in the domestic market the relationship managers.
Speaker Change: Didn't really have.
Speaker Change: Good time or it doesn't really feel like on their best time, our best days, but I guess right now, especially starting from 2005, we've already sorted out.
Speaker Change: The compensation scheme, and which we feel that will motivate our sales team.
Noah spell: The head of sales of Noah spell.
Speaker Change: <unk> spend a lot of time interviewing.
Speaker Change: Speaking with our relationship managers in China, and his feedback was that.
Speaker Change: They are they feel like they are ready to go now so I guess.
Speaker Change: Coming out from the building from the bottom in 2024, we're better positioned.
Speaker Change: Both in terms of client acquisition and also our sales team.
Got it.
Speaker Change: Yeah.
Speaker Change: For example, during their time as Michelle just said a woman with ample time, you do have yourself woman chances that LIBOR that know how to do it like this you may have to take a course about to die constant that's a cool that know how and how can you go out you won't go too well Nicole.
Speaker Change: With the glamour you got into the fall.
Speaker Change: Can't element that correlate to some kind of how does it go towards.
Speaker Change: Uh huh.
Speaker Change: That's the bad which you can tender out I know Anthony you also then they're cool, Florida and a woman Nicole we'll have to see what we're thinking at $10.
James: Yeah, Hi, James Gotcha that haven't seen it.
Speaker Change: Got it.
Speaker Change: Or do you think there's a cocoa Dennis I'm glad that that didn't.
Speaker Change: I'm filling out the young woman she takes the control that.
Speaker Change: We can put them together.
Speaker Change: Thank you chairlady, so one more point is that.
Speaker Change: As we mentioned, we've broken down our sales team into different business and license segment.
Which on.
Speaker Change: On our clients' perspective also Nick Meeks time for them to get used to because previously they used to only deal with maybe one RM, who takes care of all his needs his or her needs and everything but right now.
Speaker Change: Each client needs to deal with.
Speaker Change: Sales personnel from different business units, which in the long term will be beneficial because of the different expertise and R. M.
Speaker Change: Specializing but it does.
Speaker Change: Does it take more time for our clients to get used to so that's also a near term challenge for us.
Speaker Change: Peter I hope that answers your question.
Speaker Change: Yes.
Speaker Change: You should all one though.
Speaker Change: Well narrow along with Hmm.
Speaker Change: Hello.
Speaker Change: Operator back to you.
Speaker Change #100: This concludes our question and answer session and concludes the conference call today.
Speaker Change: You for attending today's presentation you may now disconnect.
Speaker Change #100: Thank you.
Speaker Change #101: Thank you so much.
Speaker Change #100: Alright.
Speaker Change #100:
[music].