Q1 2025 Noah Holdings Ltd Earnings Call
Operator: Good day and welcome to the NOAA First Quarter 2025 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.
Good day and welcome to the Noah first quarter 2025 earnings Conference call.
All participants will be in a listen only mode.
Should you need assistance, please signal our conference Christina.
Kristina Starkey followed by the Euro.
Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone. To withdraw your question, please press star, then 2. Please note this event is being recorded.
Speaker Change: After todays presentation, there will be an opportunity to ask questions.
Speaker Change: You asked the question.
Speaker Change: Star then one on your telephone.
To withdraw your question. Please press Star then two.
Please note this event is being recorded.
Tim: I would now like to turn the conference over to Jermaine Iyer. Please go ahead. Thank you, Tim.
Gary: I would now like to turn the conference over to Gary and.
I R. Please go ahead.
Gary: Thank you Kim.
Jermaine Iyer: Good morning and welcome to NOAA's 2025 First Quarter Earnings Call.
Speaker Change: Morning, and welcome to your La as 2025 first quarter earnings call. Joining me today, we have Ms pumping ball cofounder and shell, Amy Mcdonough send us in and they still tend to equal.
Huang Jingbo: Joining me today, we have Ms. Huang Jingbo, Co-Founder and Chairlady.
Unknown Executive: Mr. Sander Yin, Co-Founder and Co-Chair of NOAA's Ladies and gentlemen, it appears we've lost connection with our speaker line. Please wait while we reconnect. Sponsored ADR Class A Thank you for your patience. You may begin the presentation. Thank you. Sorry for the technical interruption.
Yeah.
Speaker Change: Ladies and gentlemen, it appears we have lost connection with our Speaker line. Please wait while we reconnect.
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Speaker Change: Thank you for your patience you may begin the presentation.
Speaker Change: Thank you sorry for the technical interruption.
Jermaine Iyer: Today's call will be divided into three parts.
Speaker Change: Today's call will be bought in Q3 part <unk> will begin with an overview of bar because highlights followed by Mr. Zhang who will discuss our financial performance I'll get the cheapest location that will be a Q&A session.
Sander Yin: Mr. Yin will begin with an overview of our business highlights, followed by Mr. Pang, who will discuss our financial performance.
Jermaine Iyer: After the two presentations, there will be a Q&A section.
Jermaine Iyer: In addition, please note that the discussion today will contain forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from those in our forward-looking statements. 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. Noah does not undertake any obligation to update any forward-looking statements, except as required under applicable law.
Speaker Change: In addition, please note that the discussion today will contain forward looking statements.
Speaker Change: Your wishes and uncertainties that may cause actual.
Speaker Change: Actual results to differ materially from those in our forward looking statements.
Bill Richardson: Bill Richardson the solvency of injury.
Speaker Change: She does a lighter in all public filings with the SEC and exchange does not undertake any obligation to update any forward looking statement, except as required under applicable law without further argue I should pass the golf Galaxy.
Sander Yin: Without further ado, I shall pass the floor to our CEO, Mr. Yin. Thank you, Dr. Yi.
Speaker Change: Oh, sorry.
Sander Yin: Good morning, investors and analysts of NOAA.
Speaker Change:
Speaker Change: Thank you Sharon and thank you that's awesome.
Sander Yin: I will share with you a summary of the overall market situation and NOAA's business results for the first quarter of 2025. Then, I will talk about the performance of foreign and domestic business development strategies and split blocks. Finally, I will report on NOAA's performance in 2025. Sponsored ADR Class A In the first quarter of 2025, Noah's CIO report predicts that this year, the global market will have a higher probability of severe fluctuations, and the frequency will also increase. Driving factors include the uncertainty that Trump's return to the White House has brought to global trade and geopolitics, the mismatch of global main economy monetary policy, and the expansion of the AR model military competition and downstream applications.
Speaker Change: Oh, yes, thanks, Sean.
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Speaker Change: Thank you for your question, Yeah, Yeah, Jim Geeslin David.
Speaker Change: But you did a tiny tiny team wisely in New York City itself.
Speaker Change: I think hopefully by Kathy Oh, yes.
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Speaker Change: Oh, the Albion easy to go ahead, and I'll go to Ikea unchanged versus Ash question Judy.
Speaker Change: We got that.
Speaker Change: You can see at least you should shoot only useful alcohol and uncle, Google H H.
James: And James just added up it shouldn't change.
Speaker Change: Thank you Julie I think you teed up well do you think for the geopolitics.
Speaker Change: And I'm watching debates in fact, well yet.
Speaker Change: Yeah, Yeah sure <unk>.
Sander Yin: We recommend that customers pay attention to the following four aspects of strategic asset configuration. First, stick to the asset configuration discipline. At this stage, priority is given to the geographical configuration of assets. Second, investment does not equal wealth management, wealth management pursues overall freedom. Third, wealth managers need to build an anti-fraud system to manage and pass on their wealth.
James: A J you cope with the challenges is that page sequential yesterday.
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Speaker Change: Hi, everybody.
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Speaker Change: You sound good everybody says, yes co Gen you could see that she called like why do you have the attention.
Speaker Change: Cool.
Speaker Change: Well I guess, it's been quiet.
Speaker Change: John Thank you Michelle.
Sander Yin: 最后就是尽快采取战略性的行动来调整战略性的资产配置 Let me do the translation. Good morning, everyone. Today, I will share a summary of overall market conditions and our results for first quarter 2025. Then I will walk you through our overseas and domestic performance and strategy, followed by our insights and outlook for the rest of the year. Our Q1 CIO report predicts about an increased likelihood of further market volatility this year. With a higher frequency of such fluctuations, the main factors influencing this include the uncertainty that Trump's return to the presidency is having on global trade and the lack of coordination among major global economies on monetary policies, and the intrinsically fierce competition and downstream application of AI.
Speaker Change: John are you seeing the paycheck.
Speaker Change: Let me do the translation and good morning, everyone. Today I'll share a summary of overall market conditions and our results for first quarter 2025, then I won't get through our open Jason Feldman and strategy followed by our inside that I'll look for the rest of the year.
Speaker Change: Our Q1 CIO report Phoenix about an increased likelihood.
Speaker Change: Market volatility this year, that's a higher frequency of such fluctuation.
Speaker Change: In here I think is the answer.
Speaker Change: G that trumps retired.
Speaker Change: This is having on global trade Andrew Hayek.
Speaker Change: The lack of coordination among major global economies on monetary policy and the change you may see is competition and downstream application of AI.
Sander Yin: With this in mind, our advice to clients is to adopt the following four approaches to their asset allocation. Firstly, maintain disciplined asset allocation and prioritize geographic diversification. Secondly, remember, investing is not the same as managing wealth. Wealth management aims for the best overall results. Thirdly, wealth managers need to build robust portfolios to manage and conserve wealth. And lastly, take decisive action and adjust asset allocation when needed.
Speaker Change: In mind.
Speaker Change: Advice to clients adopt the following four approaches to that asset allocation.
Speaker Change: Salt Lake maintain disciplined asset allocation and part or a quiet joke rafiq pop up location secondly, remember in something it's not the same as managing wealth wealth management aims for the best overall results.
Speaker Change: Right, well managers' needs to be robust cobalt meal, Giovanni and yourself.
Speaker Change: Well lastly, check decisive action and not just asset allocations I need it.
Sander Yin: Under the complex international economic environment, we have maintained a stable performance in business in the first quarter. Our non-GAAP net profit reached 1.69 billion yuan The net profit increased by 4.7% The net profit increased by 27.4% This resulted in a slow decline in our operating costs Operating costs decreased by 18.8% In terms of income The net profit of our RMB private 2nd-level products increased by 257.7% Reduce income by 9.3% Sponsored ADR Class A Foreign insurance products have a 22.8% decrease in gross income and a 5.3% decrease in total gross income. Sponsored ADR Class A Despite the top global economy, we have a solid quarter.
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Sander Yin: Non-GET net income in Q3 was RMB169 million, up 4.7% from the same period last year, and 27.4% sequentially. This was due to operating costs and expenses dropped by 18.8% from last year. On the revenue side, transaction value for our RMB-denominated private secondary products grew a remarkable 2.6 times from last year. Revenue contribution from these products increased at 9.4%. Transaction value for overseas private investment products also increased at 27.7%, with revenue contributing growing 20.3%. Revenue from overseas insurance products fell 22.8% from last year. This results in total net revenue in Q1 falling 5.4% from the same period last year.
Amit: non-GAAP net income.
Amit: Well one of the 169 million or four 7% from the same period last year and 27, 4% sequentially is due to operating costs and expenses dropped by 18, 8% from last year on the wrestling five transaction value for our renminbi denominated private secondary product.
Amit: <unk> grew a remarkable two six times from last year.
Amit: <unk> contribution from these products increased at microphones per cent.
Amit: Session Sadly for overseas twice that you've got some products also increased to 27, 7% with revenue.
Amit: Revenue contributing rowing chunky, plus 3% revenue from oversight overseas insurance products fell 22, you can exercise last year. This result in total net revenue in Q1 falling five 4% from the same period last year, all along right into the performance and operations.
Sander Yin: I'll now dive into the performance and operations of each business unit. Sponsored ADR Class A In the group, the net income ratio increased to 49.5% 20.3% increase in foreign investment products Foreign Insurance Income Decreased by 22.8% 竞外整体收入同比于去年基本收入 We have 131 foreign client managers, which is an increase of 44%. Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A A team of 75 people has been formed in the first quarter and contributed about 10 million yuan in revenue. The goal is to build a team of 150 people in 2025 and make it a new growth point for expanding foreign insurance business.
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Sander Yin: ARK International Wealth Management Section Sponsored ADR Class A Hong Kong insurance business sales and revenue have fallen Overseas AUA has reached 90.5 billion US dollars and has increased by 8.7% accounted for 24% of the total AUA of the group, up to 28%. Sponsored ADR Class A We have made good progress in terms of international integration. In the first quarter, the number of foreign registered customers exceeded 18,200. has increased by 15.8% and has more than 3,300 active customers which is a 23.3% increase We now have 131 overseas relationship managers, up 44% from last year. We plan to grow the team and further expand market in Singapore and Southeast Asia.
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Judy: Judy I do actually Uhm, Commvault history, China, Tianjin T D.
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Judy: For our overseas fulfillment not recognized for Renminbi 304 million in Q1 up 5% from last quarter at flat from the same period last year. It made up 49, 5% up the groups total revenue revenues and overseas impossible products grew 23% from last year, while revenue from <unk>.
Judy: These interests product fell 22 clinics.
Judy: We now have 131 overseas relationship managers.
Judy: One 4% from last year, we plan to grow the team and saw that expand market in Singapore, and Southeast Asia, which also gives up ourselves in countries with high net worth Chinese like U S, Japan, and Canada overall.
Sander Yin: We will also build up our sales team in countries with high number of Chinese like the US, Japan and Canada. Overseas AUM and recurring service fees continue to grow. Our overseas commissions only insurance agent team have already recruited 75 agents in third quarter whom have already generated about 110 million in revenue as well. We aim to expand this team to 150 agents by end of this year where they will be a new growth driver for our overseas insurance business. Net revenues from overseas wealth management were randomly $162 million in Q1, down 92%. This was due to strong competition in Hong Kong.
Judy: Overseas are you a <unk>.
Judy: And recurring deposits fees continues to grow our own case commissions only insurance agents you have already recruited 75 agents in salt score.
Speaker Change: I've already generate to about <unk> 10 billion in Gaza and U S as well.
Judy: Inkjet spend has changed to 150 agents by end of this year, what they will be a new growth driver for our overseas insurance basis.
Judy: Net revenues from overseas wealth management, where renminbi 162 million in Q1 down nine 2%.
Judy: It was due to strong competition and Hong Kong.
Sander Yin: Overseas AUA reached the US dollar $9.05 billion, up 8.7% due to growth in private equity products. This made up 28% of total AUA, up from 24% last year. We made good progress in getting new overseas clients. As of end March, we had over 18,200 registered overseas clients, up 15.8%. With over 3,300 active overseas clients, up 23.3% compared to the same period last year. OLLU International Asset Management Section The gross income of the first quarter is 1.12 billion yuan and has increased by 22.3% This is mainly due to the AUM increase and the contribution of the corresponding management fee increase AOM has reached 5.9 billion USD and increased by 14.2% The total AOM ratio has increased by 20% from 24% to 20% Among them, Simogu Foundation accounts for 78% of the foreign AUM, with a scale of $4.6 billion and a growth rate of 16.4%.
Judy: Overseas au acreage that U S dollar might point to one 5 billion up eight 7% due to growth in fact, the academic products is made up 28% of total <unk> up from 12, 4% last year, we made good progress in getting new overseas clients and.
Judy: And March we have 18000 in Q hungry Rochester overseas clients.
Judy: <unk> from extra set with.
Judy: With over 3300 active overseas clients upfront to three 3% composite center at Lafayette.
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Sasha: Thank you Sasha and Josh audio St. Jude.
Sasha: Actually a woman a O N.
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Speaker Change: And the beautiful thing, Josh if you sense that attitude.
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Sander Yin: Sponsored ADR Class B In the GLORY Family Heritage comprehensive service section, we achieved a net income of 0.3 billion yuan in the first quarter, which is 17.8% lower than the previous year. This is mainly due to the decrease in Hong Kong insurance business distribution revenue. Hong Kong's insurance market is competitive. The number of practitioners in the Hong Kong insurance industry has increased significantly in the past year. There is a lot of competition in the market. We focus on expanding large customers and large orders, and put the safety of returning customers and protecting customer security first.
Speaker Change: The collateral family Heritage thoughtfully.
Speaker Change: You can do she can't Jim Shaw media site yet.
Speaker Change: She is talking about and just strategic but do you actually think about it you would think absolutely shut down slow about it.
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Speaker Change: Yeah, Rob I can't tell you this.
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Speaker Change: Well, Mr. Yao Portent that could then be.
Speaker Change: Feedback so at least we hope all holdco football fans and although the UAE, which has had you're eating a changeup Shanghai for Hugo boss pin.
Sander Yin: It is currently working. Hong Kong and Singapore's order platforms have continued to improve their annual insurance fees. At the same time, we are actively exploring new marketing models. As mentioned earlier, we will continue to build an infinite number of new agent teams. 为新科拓展带来新鲜学业 Net Revenues from Overseas Asset Management in Q1 were around $112 million, up 22.3% from last year. This was mainly due to growth in AUM and recurring service fees. Overseas AUM was $5.9 billion, up 14.2%. This makes up 29% of total AUM, up from 24% during the same period last year. AUM for Overseas Private Market Products was US$4.6 billion, up 16.4%.
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Speaker Change: Net revenues from overseas asset management in Q1, we're running at the 112 million up 22, 3% from last year. This was mainly due to growth in the U M and recurring stop a seat.
Speaker Change: These are you on what this all looks like from 9 billion up 14, 2% is 29% of total AUM up from 74% during the same period last year.
Speaker Change: For overseas I think market product. Once you have all the four 6 billion up 16, 4%. It made up 10, 8% of overseas.
Sander Yin: It made up 78% of Overseas AUM. Our private market products are growing. They include private Sorry, they include private credit funds, infrastructure funds, hedge funds, and structural products. We have a strong team of over 50 people in our US product center for overseas product selection and investment. Net revenues from overseas insurance were RMB$30 million, down 17.8%. This is due to lower distribution of overseas insurance products. The Hong Kong insurance market is very competitive. It has many new insurance agents and some who are not compliant. We focus on large clients' compliance and policy safety. This helps raise average first-year premiums in Hong Kong and Singapore.
Speaker Change: Oh perfect market trial, that's all growing they encourage I think.
Speaker Change: Sorry, the input project fun infrastructure saw hutch fun and structural products.
Speaker Change: We have a strong team of over 50 people in our U S product center overseas product selection and investment.
Speaker Change: The news from overseas insurance program and be $14 million down 17, 8% is it still just lower distribution of overseas insurance products the whole.
Speaker Change: Insurance market, it's very positive and how many new insurance agents and some who are not what we focus on large lot lost client compliance and policy H T. This helped raise athlete's foot she had premiums in Hong Kong and take a poll.
Sander Yin: We are also creating new marketing models. Our goal is to grow the team of commission-only agents to 150 people by the end of 2025. This will help us to get new clients. Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class B Sponsored ADR Class A to carry out the development of Gefei and Rongya insurance.
Speaker Change: I'll also creating new marketing models, all grow is too broad a team of publishing the only agents to 150 people by the end of 2025. This will help us to get new clients.
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Speaker Change: Yeah good morning.
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Sander Yin: Noah Holdings Ltd. Sponsored ADR Class A Sponsored ADR Class A Hongbi increased by 7.1% In the first quarter, RMB's private wood 2nd-tier products accounted for 3.3 billion yuan Hongbi rose by 257.7% RMB public funds accounted for 4.3 billion yuan Hongbi fell by 51.3% Currently, there are offline sites in 10 cities in China. We are also promoting online marketing and online services to improve the efficiency of operations. Gofei City, Hong Kong $100 In the first quarter, we achieved a net income of 1.67 billion yuan, a 14.3% drop in the same period. The main reason is that the inventory of RMB private equity products has expired, and the management fee has dropped.
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Speaker Change: The only assumption I think job I wish he didn't see it.
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Speaker Change: Well, we can't tell it seems that she listening to you it seems that wanted it.
Speaker Change: Is that crazy insights and she also searching for that she shouldn't Jean Michel.
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Sander Yin: In the first quarter, Gofei continued to promote the withdrawal and allocation of inventory assets. In the first quarter, Gofei achieved a withdrawal of 130 million yuan of private equity assets. At present, the private equity assets are 9.73 billion yuan. It accounts for 91.3% of the domestic AUM. In the secondary market, Kefei Asset continues to focus on the development and establishment of RMB assets through domestic cross-border ETFs to acquire the scale of beta-profit products in the global market. This quarter, it also achieved a record high of 1.4 billion. Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Net revenues from mainland China were RMB310 million, down 9.4%.
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Speaker Change: Thank you Luisa So you can't you can't see when you down that you could think about.
Speaker Change: Yeah, well I cant quite easily do if he didn't he total goodbye suspicious.
Speaker Change: Imagine if we didn't do it drags.
Speaker Change: So we haven't seen anybody can say absolutely catching up with us.
Speaker Change: So she doesn't have children, having a bunch out.
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Speaker Change: Absolutely.
Speaker Change: During the Bush.
Speaker Change: Net revenues from mainland China, we're running the 310 million don't like from 4%. This was due to lower recurring service fees from parts of active products and distributions of domestic insurance product.
Sander Yin: This was due to lower recurring service fees from private equity products and distributions of domestic insurance products. However, RMB-denominated private secondary products continue to grow. Transaction value and revenue from these products increased significantly.
Speaker Change: Russell Renminbi denominated private secondary product continues to break transaction failure and revenue from these products increased significantly.
Sander Yin: Noah, Upright, Gopher, and Glory are independent now and can use their own strategy. Net revenues from domestic public securities were RMB127 million, up 7.1%. Transaction value of RMB-denominated private secondary products in Q1 was RMB3.3 billion, up 2.6 times. Transaction value of RMB-denominated mutual funds was RMB4.3 billion, down 51.4%. Noah, Upright currently has branches in 10 cities. Plus, we have been using online marketing and online services to improve operational efficiency. Net Revenues from Domestic Asset Management in Q1 were RMB $167 million, down 14.3%. This was due to lower recurrence of fees from existing RMB-denominated private market products.
Speaker Change: Upright Gopal and glory.
Speaker Change: Independent now and can use their own strategy that revenues from domestic public securities regarding the 127 million up seven 1% transaction failure of renminbi denominated private secondary products in Q1 was run them because some 3 billion up two six times transaction.
Speaker Change: Renminbi denominated mutual funds was renminbi Fulton Street building down 51, 4% more.
Speaker Change: Upright crummy has bunches in 10 cities plus we have been using online marketing and online surfaces to improve operational efficiency.
Speaker Change: Net revenues from domestic asset management in Q1, we're going to be $167 million down 14, 3%. This was due to lower recurring stuff of seats from extra thing that I'm gonna be nominally Patrick market products.
Sander Yin: In the primary market, Goldfoss focus on managing exits and distribution of existing assets. In Q1, it records RMB 1.3 billion exit from private equity market. Private equity market asset AUM was RMB 97.3 billion. It made up 91.3% of domestic AUM. In the public market, Goldfoss focuses on beta returns from global markets. We are doing this through cross-border Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A 4.
Speaker Change: And the primary market golf I'll focus on managing extras and distribution of existing asset.
Speaker Change: Q1 record of $91 3 billion exit from the equity market.
Speaker Change: After the market us at a U M, what's wrong and be Lucky strike down in it made up 91, 3% of domestic a U M P.
Speaker Change: Public market golf ops focus us on day two retired from the global market. We are doing this for possible.
Speaker Change: I know you can't eat yes, Etfs is felt transaction volume in Q1, two I'm doing a height of renminbi $114 million.
Speaker Change: Net revenues from domestic interest in Q1, rather than the $6 4 million down 65, 6%. This was due to lower distribution of domestic insurance products. We are all adjusting product mix and focusing on more <unk> and also the cat insurance products. We also restructuring south I'm building H b.
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Speaker Change: I should do jackpot founded up or could it be.
Speaker Change: And that's why I said that totally AI English and lindon. Thank you. They can't ship. So you shouldn't see a full approval that you couldn't.
Sander Yin: In terms of products, we will first increase the firepower of insurance business, build an invincible sales team to deal with market competition. The second is to promote the comprehensive ability of customers to serve by promoting business such as shipping, moving out of the sea. Sponsored ADR Class A In 2025, we see that the market is on the rise, and wealth management is becoming more and more important, and it can be said that it has become a high demand for high-level clients. We suggest that the wealth manager's strategy is to continue to expand overseas investment channels.
Speaker Change: So that hasn't gone away.
Speaker Change: So yes, it didnt yep I sit here with the 40 gig so what do you see in teaching is supposed to do.
Speaker Change: She tried to change it.
Speaker Change: Yeah. It was a paywall Singapore change you had that you like.
Speaker Change: If you do the full cover the Thunder other than.
Speaker Change: But you just said is that towards the dance team with a chance that you enjoy the attending a country. One fan attendance you shouldn't she says this on page to find the candidate.
Speaker Change: Ali Al when you kind of obviously top from balance sheet.
Speaker Change: Yeah.
Speaker Change: So it gives you a week all against Cook with a gun shoot well.
Speaker Change: Well, let me tell you.
Speaker Change: Half of why you did it hurt it.
Speaker Change: You shoot for their highway towards of the shop.
Sander Yin: Sponsored ADR Class A 3. Do not ignore geopolitical conflicts and internal and external political risks. Sponsored ADR Class A In today's market, the easiest way to make a mistake is to use the past experience to guide the future.
Speaker Change: Sure She'll Kung Fu Panda.
Speaker Change: And we all pushes the engine to the principles are nave.
Speaker Change: Right into this.
Speaker Change: Sure Bob superhuman Infor Shimon immediate.
Speaker Change: What is this I think initiatives. So you don't you find useful Joshi would shoot you April through the T M Craig Wheeler.
Sander Yin: Our priorities for 2025 will be, firstly, balancing quality and quantity while expanding into new markets with full compliance. Secondly, growing our overseas teams of relationship managers to speed up local client onboarding. Thirdly, investing in technologies such as AI to improve online services. Fourthly, on product side, we shall commit to grow insurance sales by building a new team of commission-only agents to compete better. On the other side, the company will also offer a wider range of products such as trust relocation and cross-border solutions to enhance our client service. Last but not least, strengthen research, product teams and product mix.
Speaker Change: Our priorities for 2025 will be put slates balancing quality and quantity, while expanding into new markets with full compliance if I can.
Speaker Change: Growing our overseas teams of relationship managers to speed up local client Onboarding Salt Lake investing in technologies, such as AI to improve all my surfaces.
Speaker Change: On product side, we shall commit to grow insurance, south, possibly with a new team of condition. The only agents. So you can keep on top of the other sites company will also offer a wider range of products such as trust relocation and cross border solutions to enhance our client summit.
Speaker Change: Last but not least strengthen research product team and product mix.
Sander Yin: Market volatility will stay high in 2025. Web management is more important than ever, which has become high net worth client's essential needs. We therefore would advise our web management talent to number one, keep expanding overseas investment channels. Two, whole effort to fight against inflation. 3. Monitor geopolitical risk costly. And lastly, stay flexible in capital and ready to act quickly.
Speaker Change: Market volatility will stay high in 2000 and quantify what management is more important than alcohol, which has become a high net worth clients essential needs with asphalt with advice <unk> wealth management talent to number one.
Speaker Change: Funding overseas Bachman channels choose how I thought the fight against the inflation.
Speaker Change: Great models that drove politics drove political risk coffee and lastly stay flexible in capital and ready to act quickly should come true.
Sander Yin: To conclude, the biggest mistake a work manager can commit today is thinking past experiences can guide future decisions.
Speaker Change: Biggest mistake, a wealth manager can come get today, if thinking past experiences <unk> due to a decision.
Speaker Change: Additionally, working.
Speaker Change: Yeah, I think it's a.
Speaker Change: Keep in mind since about how about.
Brent: I will now pass over to Brent to go over our financials in more detail. Thank you. Thank you, vendor. and greetings to everyone joining us today.
Speaker Change: Yeah.
Speaker Change: With that I'll pass over to grant to grow over our financials in more details. Thank you.
Speaker Change: Thank you vendor.
Speaker Change: And greetings to everyone joining us today.
Brent: I'd like to begin my sharing with an overview of our recent SharePrize performances. Management is fully aware that our stock has been trading with an upward pressure for the past few quarters. and only around 0.5 times PV and under cash value. Our cash reserve alone represents US$11.4 per ADS. Feeding our current stock price, and our PE ratio is only around nine times well below industry average of 12 to 16 times. While continuing to focus on regaining the growth after transformation of the wealth managed monetization, we have also in the past few quarters introduced several initiatives to enhance shareholder returns, including the U.S.
Speaker Change: I'd like to begin by sharing with an overview of our recent share price performance.
Speaker Change: Management is fully aware that our stock has been trading than.
Speaker Change: Upward pressure for the past few quarters.
Speaker Change: Really around 0.5 times, PD and under cash probably.
Speaker Change: Our cash reserves alone represents U S dollar 11 $4 per ADR.
Speaker Change: Feeding our current stock price and our P/e ratio is only around nine times well below industry average of 12 to 16 times.
Speaker Change: While continuing to focus on regaining the growth after the transformation of the wealth management organization. We have also in the past few quarters introduced several initiatives to enhance shareholder returns, including the U S. Dollar 50 million share buyback program announced in August last.
Brent: dollar 50 million share buyback program announced in August last year. As of today, we have already repurchased over 1.3 million ADSs, equivalent to over 2% of total issued shares. Furthermore, as part of our commitment to prioritizing shareholder interests and delivering sustained returns, we plan to distribute annual and special dividends. told in the RMB 550 in July, subject to AGM approval. This amount represents 100% of our non-capital income for 2024 and offers a dividend yield of 12% based on current share price. which is much higher than the 7 to 9% average different yield range among leading international financial institutions.
Speaker Change: Sure.
Speaker Change: Today, we have already repurchased over one 3 million ABS is equivalent to over 2% of total issued shares.
Speaker Change: Furthermore, as part of our commitment to prioritizing shareholder interests and delivering sustained returns or plan to distribute a new and special dividends.
Speaker Change: Total knee RMB 550 in July and subject to AGM approval.
Speaker Change: This amount represents 100% of our non-GAAP net income for 2024.
Speaker Change: It offers a dividend yield of 12% based on current share price.
Speaker Change: Which is much higher than the 7% to 9% average given your range.
Speaker Change: A leading international financial institutions.
Brent: Notably, this makes the second consecutive year that the company would distribute 100% of net income. Since 2022, three years in the aggregate, we have distributed a total of RMB 1.8 billion Dividends to Investors roughly equal to 40% of current market cap. The continuous sharing of high dividend payout is expected to be sustainable, based on our estimate of future operations and our strong balance sheet position. By the end of quarter one, cash, cash equivalent, an increase to RMB 4.1 billion with short term investment of RMB 1.3 billion, which has been highly liquidity and has fewer than three months of maturity on average.
Speaker Change: Notably this makes the second consecutive year that the company would distribute 100%.
Speaker Change: Net income.
Speaker Change: Turning to three years in the aggregate we have distributed a total of RMB, one 8 billion.
Speaker Change: Dividends to our investors roughly equal to 40% of our current market cap.
Speaker Change: The continuous sharing a high dividend payout.
Speaker Change: It should be sustainable.
Speaker Change: Based on our estimate of future operations, and our strong balance sheet position.
Speaker Change: By the end of quarter, one cash cash equivalents increased to RMB four 1 billion with short term investments of RMB, one 3 billion, which has.
Speaker Change: Finally liquidity.
Speaker Change: And have fewer than three months of maturity on average.
Brent: Our current ratio improved to 4.8 times, so the debt-to-asset ratio remains stable at 14.5%, with no interest-bearing debt. Although we have set up our global expansion recently, with a new opening up of Tokyo office, revisiting the reopening of Canadian market and Australian market, we also want to reassure the investors that organic expansion are CapEx life in nature. Of course, we understand that investors are also eager to see the signs of a growth. There's no denying that the transitioning of a business model has been challenging for 2024, particularly given the uncertainties in the global investment market, which have affected our financial performance.
Speaker Change: Our current ratio improved to four eight months.
Speaker Change: Betsy that's a ratio remained stable at 14, 5% with no interest bearing debt.
Speaker Change: Although we have spent all of our global expansion recently, where the new opening of Tokyo offers revisiting the reopening of connect Canadian market.
Speaker Change: Mid market.
Speaker Change: So I want to reassure investors that our organic expansion, our capex light major.
Speaker Change: Of course, we understand that mean that you're also eager to see the signs of our growth is.
Speaker Change: No denying that the transition their business model has been challenging for 'twenty 'twenty, four which has really given the uncertainties in the global and the rest of the market, which have affected our financial performance.
Brent: But besides balance sheet performance, more importantly, starting in Q1, we're seeing things that are on the right track. The significant progress in building our teams and infrastructure in a more cost-effective transformation strategy ensures that our business remain profitable with operating profits and non-cash net income both growing on a sequential and year-on-year basis. While we're not yet at the finish line, these strategic initiatives are steadily laying the groundwork for improved performance and future growth opportunities.
Speaker Change: Besides balance sheet performance more importantly, starting in Q1, we're seeing things that are on the right track.
Speaker Change: With significant progress in building, our teams and infrastructure and are more cost effective transformation strategy ensures that our business remains profitable with.
Speaker Change: With operating profit a non-GAAP net income both growing on a sequential and year on year basis.
Speaker Change: While we're not yet finished.
Speaker Change: Finish line. These strategic initiatives are really laying the groundwork for improved performance and future growth opportunities.
Brent: Let's now dive into the details of our financial First of all, the bottom line, as we continue to implement rigorous cost control measures during the quarter, the total operating costs and expenses coming in as RMB429 million, a decrease of 18.8% year-over-year and 16.7% sequentially. Specifically, with our great effort in simplifying our back-office structure, compensation benefits decreased by 21.8% year-over-year and 14.1% sequentially. Sending expenses fell by 18.1% year-over-year and 35.3% sequentially, and T&A expenses also falling both year-over-year and sequentially. Operating profit serves by 53.1% year over year at 35.2% sequentially to RMB 186 million in the first quarter with the operating profit margin up to 30.3% from 21% in the previous quarter.
Speaker Change: Let's now dive into the details of our financials.
Speaker Change: First of all the bottom line as we continue to implement rigorous cost control measures during the quarter with.
Speaker Change: Total operating costs and expenses coming in at RMB 429 million.
Speaker Change: A decrease of 18, 8% year over year, and 16, 7% sequentially.
Speaker Change: Specifically with our great effort.
Speaker Change: Finally in our back office structure compensation and benefits decreased by 21, 8% year over year.
Speaker Change: 14, 1% sequentially.
Speaker Change: Selling expenses fell by 18, 1% year over year at 35, 3% sequentially.
Speaker Change: G&A expenses also forming both year over year and was the principal.
Speaker Change: Operating profit.
Speaker Change: 35% to 341% year over year at 35, 2% sequentially to RMB 186 million in the first quarter.
Speaker Change: So the operating profit margin up to 33% from 21%.
Speaker Change: In the previous quarter.
Brent: Non-GAAP net income was $169 million for the first quarter, an increase of 4.7% year-over-year and $27.4 million sequentially. Despite strong performances gained, especially in the U.S. from investment products advantages mentioned earlier, we have to see that the domestic market is relatively upward in lever, and also some of the slowdown in interest revenue, causing our net revenues to RMB615 million during the first quarter, slightly down 5.4% year-over-year and 5.7% sequentially. But notably, overseas net revenues, accounting for almost half of total revenues, were up from 44.5% in the previous quarter. By weekend, net revenue from overseas or RMB 304 million in the first quarter, a slight drop year over year of 0.8%, yet an increase of 5% sequentially, driven by a modest improvement in insurance sales.
Speaker Change: non-GAAP net income was 169 million for the first quarter, an increase of four 7% year over year and $27 four sequentially.
Speaker Change: Despite strong performances and especially in the U S probably investment fathers vendors mentioned earlier.
Speaker Change: I have to see that domestic market, it's relatively operating rigor and also some of the slowdown since revenue, causing our net revenues to RMB 615 minutes during the first quarter, so it'd be down five 4% year over year and five 7% sequentially.
Speaker Change: But notably overseas revenues accounted for almost half of total revenues while our.
Speaker Change: 44, 5% in the previous quarter.
Speaker Change: By region.
Speaker Change: Revenue from overseas were RMB 304 million in the first quarter, a slight drop year over year of <unk>.
Speaker Change: Yet you increased 5% sequentially driven by a modest improvement in insurance.
Brent: Domestic net revenues during the first quarter decreased by 9.4% year over year, and 14.3% sequentially to RMB 310 million, largely dragged by the sluggish performance, insurance under the low interest environment, and decreased management fee revenue from domestic private equity products. By revenue type, during the quarter, one-time commissions decreased by 15% year-over-year, but increased by 17% sequentially, predominantly driven by overseas insurance sales rebounded compared to last quarter. Recurring service fees decreased by 5.3% year over year and 5.8% sequentially due to reduction in domestic revenue from RMB private equity products, which also affected performance-based income in a decrease of 42.1% sequentially.
Speaker Change: Domestic net revenues during the first quarter decreased by 19, 4% year over year.
Speaker Change: 14, 3% sequentially to RMB $310 million largely drive by the sluggish performance insurance under the low interest environment and decrease in management fee revenue from domestic private equity products.
Speaker Change: By revenue type during the quarter, one time commissions decreased by 15% year over year.
Speaker Change: Creased by 17% sequentially, primarily driven by overseas sales rebounded comparing to last quarter.
Speaker Change: Recurring service fees.
Speaker Change: 575, 3% year over year.
Speaker Change: Four 8% sequentially due to a reduction with domestic revenue from RMB private equity products, which also affected performance based income.
Speaker Change: Increase of 42, 1% sequentially.
Brent: that did increase by 98.4% year-over-year, driven by a significant increase in overseas asset management as the overseas business become increasingly established and mature. When it comes to total transaction volume, total transaction values in the first quarter were RMB 16.1 billion, down 14.7% year-over-year, and 0.9% sequentially. Transaction value of domestic products, secondary products, was RMB 3.3 billion during the quarter. That sees a significant increase of 257% year-over-year and 34.6% sequentially. Transaction value of RMB denominated products in the first quarter declined, however, transaction value of U.S. dollar denominated products reached U.S. dollar 1.1 down up 15% sequentially, but down 4.6% year-over-year, and accounting for 50% of total transaction volume compared to only 43% in the previous quarter.
Speaker Change: It increased by 98, 4% year over year, driven by a significant increase in overseas asset management is the overseas business become.
Speaker Change: Established and mature.
Speaker Change: When it comes to total transaction volume for example values in the first quarter, who RMB $16 1 billion.
Speaker Change: The 14, 7% year over year.
Speaker Change: Zero nine sequentially for exceptional value of domestic secondary.
Speaker Change: Secondary products.
Speaker Change: RMB three 3 billion during the quarter.
Speaker Change: That's a significant increase of 257% year over year at 34, 6% sequentially.
Speaker Change: Transaction value of RMB denominated products in the first quarter decline, however transaction value of U S. Dollar denominated products each U S dollar $1 1 billion.
Speaker Change: 15% sequentially.
Speaker Change: The down four 6% year over year, and accounting for 50% covered transaction volume compared to only 43% in the previous quarter.
Brent: Benefiting from the enhanced competitiveness of the Overseas Alternative Investment Products Portfolio, U.S. dollar private equity products totaled U.S. $201 million, up 7.9% year-over-year, and 17% sequentially. And U.S.D. private secondary products, excluding cash management products, totaled U.S. $112 million, up 187.8% year-over-year, and 211.8% sequentially. During the first quarter, U.S. dollar denominated AUM grew by 14.2% year-over-year and 0.8% sequentially to U.S. dollar $5.9 billion. When U.S. dollar denominated AUA increased by 8.7% year-over-year and 3.6% sequentially to U.S. dollar $9.1 billion, reflecting our ability to capture a larger share of clients' U.S. dollar wallets or investment products. At the end of the first quarter, our client base remained stable in terms of core clients, diamond and black heart clients, with 9,330.
Speaker Change: Benefiting from enhanced competitiveness overseas alternative investment product portfolio.
Speaker Change: Private equity products total U S dollar.
Speaker Change: 201 million.
Speaker Change: Seven 9% year over year and 17% sequentially.
Speaker Change: He has deep fiber secondary products, excluding cash management products totaled USD 112 million.
Speaker Change: 187, 8% year over year, and 211, 8% sequentially.
Speaker Change: During the first quarter U S dollar denominated.
Speaker Change: <unk> grew by 14, 2% year over year and zero.
Speaker Change: 0.8% sequentially to U S dollar five 9 billion.
Speaker Change: With U S dollar denominated.
Speaker Change: <unk> increased by eight 7% year over year at three 6% sequentially.
Speaker Change: U S dollar and $9 1 billion, reflecting our ability to capture a larger share of clients all the wallets or investment product.
Speaker Change: At the end of the first quarter, our client base remains stable in terms of core clients assignment and black card clients with 99330.
Brent: But overseas clients have continued to grow to over 18,200 overseas registered clients, an increase of 15.8% year-over-year and 3.1% sequentially. The total number of overseas diamond and black heart clients now exceeds 1,600.
Speaker Change: Overseas partners continue to grow to over 18.
Speaker Change: 18200 overseas registered clients, an increase of 15, 8% year over year.
Speaker Change: And 1% sequentially.
Speaker Change: The total number of overseas assignment and black pipelines now exceeds 1600.
Speaker Change: To sum up.
Brent: Amid the under the current global dynamics with the potential tariff war at the low interest rate environment and mainland China.
Speaker Change: It weakens the investors invest in sentiment, which may be the biggest hurdle to the industry's revenue growth. However, what is the road business structure and the more mature overseas team. We're still confident the company is well position ourselves for future growth.
Operator: Thank you all again for trust and support. With that, I will now open the call to your questions. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster.
Speaker Change: You all again for trust 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 the keys.
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.
Helen Li: The first question today comes from Helen Li with UBS. Please go ahead. Sponsored ADR Class A Sponsored ADR Class A Okay, thank you very much. I have two questions here. The first question is, recently we have seen some high-end clients in China who have received a tax refund notice from the Tax Administration. I don't know if this will affect the high-end clients' needs for overseas asset allocation. Recently, have we heard from the high-end clients about their concerns or ideas on asset allocation in the future? The second question is, in this quarter, we have seen a significant decrease in the cost of transportation.
Speaker Change: The first question today comes from Helen Lee with UBS. Please go ahead.
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Helen Li: 然后这个营运费用的下降其中有多少他是和比如说这个季度就是募集量这个指标是挂钩的然后另外就是其他的一些下降主要是来自于哪些原因我主要是这两个问题然后我要不翻译一下 Thanks Many. This is Helen Li from Do I need to translate? Sponsored ADR Class A Thank you for your first question that's actually related to recent news of some of the probably domestic high net worth clients receiving notices from tax bureaus about their overseas taxation information. So I'll try to take the first half of the question and then they're and Nora will jump in for anything that I probably missed. Yeah, we're seeing many, or hearing many of our clients or their friends, you know, receiving calls from tax bureaus, but the Sponsored ADR Class B Sponsored ADR Class C Sponsored ADR Class D Sponsored ADR Class C Sponsored ADR Class D Sponsored ADR Class E Sponsored ADR Class I'm probably some new subject for this generation of high net worth individuals who are probably more used to, you know, filing for tax and gains on the domestic and operating operational.
Speaker Change: Uh huh.
Speaker Change: Thanks, Matt.
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Speaker Change: I mean got pushed out.
Speaker Change: Okay.
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Speaker Change: Oh, that's for sure.
Speaker Change: Hi, there Suzanne and thank you for your first question is actually related to a recent news of some of the probably domestic or high net worth clients receiving notices from tax bureaus about their overseas.
Speaker Change: Jason our information.
Speaker Change: So I'll try to take the first start with a question and a vendor and Laura will jump.
Speaker Change: Jumping in for anything that I'd, probably miss.
Speaker Change: Yeah, we were saying.
Speaker Change: Or here remainder of clients or their friends, they're receiving Collins from tax bureaus, but.
Speaker Change: The.
Speaker Change: Information about our gathering or high net worth you actually are the Chinese tax residents.
Speaker Change: Taxation of overseas income has been implemented a few years ago, but.
Speaker Change: Obviously I think our the Bureau, probably now has a more collected information that we'll be able to actually reach out to these individuals obviously I think it's probably.
Speaker Change: The law is always there.
Speaker Change: Some of the tax professionals advisor clients.
Speaker Change: And are you aware of them, but the actual sportsman's.
Speaker Change: Information or stockpiling, probably something.
Speaker Change: To our clients I don't think it necessarily affect or their sentiment in terms of future investments.
Speaker Change: Oversea.
Speaker Change: <unk> products, especially.
Speaker Change: Obviously I think they are more aware of curious about the future of.
Speaker Change: Tax planning if you will how can.
Speaker Change: Alright.
Speaker Change: Investment, that's something new or probably some new subject.
Speaker Change: For this generation of high net worth individuals who are probably more used to.
Speaker Change: Finally pretax gains on their domestic and operating or operational income.
Sander Yin: Let me add a little bit about the first question. As Carl said, a lot of our customers have received some phone calls.
Speaker Change: Oh, it was totally shocked by the Eagle Ford.
Speaker Change: Tricia.
Speaker Change: Just kind of go where the puck.
Speaker Change: They'll show up on Asia.
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Speaker Change: Yeah. So the way I assume that you had I'd say you should get cheaper.
Speaker Change: Right.
Speaker Change: I have a widely because that why did you put on it.
Sander Yin: Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Okay, we'll do a quick translation on here. One thing we just started, it's a challenge, but it's also an opportunity to know regarding our high-level clients getting phone calls from the tax bureau. The reason behind that is because if you look at what we've been doing for our clients, the wealth management, the asset management, and the family heritage business, all of us are trying to provide solutions to our clients for how to protect their wealth. And also, when they are receiving the phone call from tax bureau and they need to solve that issue, they will need to build a closer relationship with our relationship managers because we'll go into their wealth as a whole to plan for them for future.
Speaker Change: Heritage.
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Speaker Change: Orange EDA tool, but the yield I should say.
Speaker Change: As you can.
Speaker Change: Okay.
Speaker Change: We'll do a quick translation on the head.
Speaker Change: In France, a salad.
Speaker Change: It's a challenge, but it's awesome to know.
Speaker Change: Regarding our final requirement.
Speaker Change: Phone calls.
Speaker Change: The reason behind that.
Speaker Change: Look at what we can do it all client wealth management.
Speaker Change: And assembly.
Speaker Change: This is all about trying to provide solutions to our clients.
Speaker Change: To protect their wealth.
Speaker Change: And also.
Speaker Change: When they are receiving a phone call from taxpayer in the near to solve that issue.
Speaker Change: To build a closer relationship with all of them.
Speaker Change: Ship manager.
Speaker Change: Well, that's a hard to plan for that.
Sander Yin: And that means we can have a better access to client's wealth and knowing better about their whole planning. So yes, in short term, that may be a challenge because it affects the investment sentiment. However, in the long run, we still believe that it can bring opportunities to the company.
Speaker Change: And that means we can help with that.
Speaker Change: Just one well and no impact to about that.
Speaker Change: So yeah in short terms that may be challenged.
Sander Yin: Effects of that investment.
Speaker Change: In the long run these are apps can bring opportunities to the company.
Brent: Okay. Second question, I'll do a quick translation for you as well. I actually asked about, you know, we have an improved efficiency or reduction on TNA and selling expenses in this quarter. And she's actually wondering how much of that has to do with probably, you know, low activity market Sponsored ADR Class A Sponsored ADR Class A range, and also the effect of Mark Jackson. Alan, does that answer your question? Yes. Crystal Clear. Thank you. As a reminder, if you would like to ask a question, please press star, then 1 to join the question queue.
Speaker Change: Okay.
Speaker Change: Second question coming out do a quick translation for you as well.
Speaker Change: And I actually asked about you know we have.
Speaker Change: The efficiency of a reduction in G&A and selling expenses in this quarter and she is actually wondering how.
Speaker Change: How much of that has to do.
Speaker Change: Probably you know lower activity marketing.
Speaker Change: As well as the reduction of.
Speaker Change: Probably.
Speaker Change: Congress head counts.
Speaker Change: So I just wanted to clarify that so you know I was.
Speaker Change: Some of the expense reduction does come from.
Speaker Change: Improvements in efficiency, especially mid backhaul says that counts probably optimize.
Speaker Change: Around 25% compared to the same period last year.
Speaker Change: As the continuous effort to improve the efficiency and structure.
Speaker Change: Mid band Corpus to the front office is now showing an effect.
Speaker Change: We're also seeing a reduction in selling expenses spread that that's partly attributed to and probably fewer marketing activities. This quarter in the first quarter.
Speaker Change: We don't think that's necessarily sustainable that's rather another direction and we're trying to control as long as we are holding this event more efficiently. So we're seeing.
Speaker Change: More marketing events coming up in the second quarter, but we're obviously still trying to keep that under a reasonable.
Speaker Change: The range and also the effectiveness of marketing activities.
Speaker Change: Does that answer your question.
Speaker Change: Oh, yes.
Speaker Change: Crystal clear.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you would like to ask a question. Please press Star then one to join the question queue.
Peter Zhang: The next question comes from Peter Zhang with J.P. Morgan. Please go ahead.
Speaker Change: The next question comes from Peter Jon with J P. Morgan. Please go ahead.
Peter Zhang: 感谢管理层给我提问的机会,我是蒙古大哥的Peter,我这边有两个问题。 Sponsored ADR Class A Sponsored ADR Class A Unknown Executive, Jingbo Wang, Qing Pan, Chiyao Huang, Peter Zhang, Melo Xi, Jeff Li, Carl Wong, Clement Ting, Yi Zhao, Zhe Yin, Chiyao Huang, Peter Zhang, Melo xi. Sentiment change.
Speaker Change: Oh gosh body Concord once you win a deal.
Speaker Change: I don't know if you care what you may see you guys Sherwood will mcguire.
Speaker Change: Sure Tom Portland, factual metallic sheen tell you saw them cope with it.
Speaker Change: The two.
Speaker Change: She should hold the change.
Speaker Change: C J E T shirt anyway.
Speaker Change: Implemented up Noah.
Speaker Change: Hopefully I should schedule myself too much how much team, but you know what do you mean like close to change future polo shirt or drinking pleasure that you encountered a diesel engine.
Speaker Change: Yes, there's a bunch of work.
Speaker Change: Right now based on how long you would try to quiet without.
Speaker Change: Jim Young will Mcguire.
Speaker Change: Wow.
Speaker Change: We are the she don't try and change.
Speaker Change: Yeah sure.
Speaker Change: Central Taiwan.
Speaker Change: But we don't milk time, Bob will sort of T cell.
Speaker Change: Well thank you Sir.
Speaker Change: Our central congratulation on their first quarter results and the central gaming deal coming to that.
Speaker Change: Last question I have two questions Firstly I saw that.
Speaker Change: As a market.
Speaker Change: Well I didn't we've allocated out there.
Speaker Change: Increased market volatility in April and the way I'm wondering what.
Speaker Change: Behavior in terms of what you can see investment sentiment.
Dan Cartwright: No Dan Cartwright.
Speaker Change: On the broadband product.
Speaker Change: And some of the client.
Speaker Change: It's a business owner so what we're wondering whether any help there.
Speaker Change: That's good.
Speaker Change: Goodbye.
Speaker Change: The <unk> pathway.
Speaker Change: Introduction and Alterra investment.
Speaker Change: Uh huh.
Speaker Change: Got it.
Sander Yin: My second question is about the overseas business. Commendment gave us some guidance on what will be the key driver for your overseas business year 2025. And on the insurance front, we are wondering whether you, Noah, see any sign of improvement in overseas insurance in the second quarter. Thank you.
Speaker Change: That sentiment changed my second question is for the overseas business.
Speaker Change: Goodbye.
Speaker Change: Guidance on what will be the key driver for your overseas.
Speaker Change: Business.
Speaker Change: Yes, 25 and <unk>.
Speaker Change: I'll get it.
Speaker Change: Ron we're wondering whether it.
Speaker Change: No I see a new panel.
Speaker Change: <unk> Oh my goodness.
Speaker Change: Interest in second quarter. Thank you.
Speaker Change: Yeah.
Unknown Executive: Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Unknown Executive, Jingbo Wang, Qing Pan, Chiyao Huang, Peter Zhang, Melo Xi, Jeff Li, Carl Wong, Clement Ting, Yi Zhao, Zhe Yin, Chiyao Huang, Peter Zhang, Melo Xi, Jeff Li, Carl Wong, Peter Zhang, Noah Holdings Ltd.
Speaker Change: I can't give you the.
Speaker Change: She has since I E should those don't work quite.
Speaker Change: Of course, the bulk market.
Speaker Change: Under the Basel three each on about two of them in the cohort Hi, C U E channel that cohort and auto ship.
Speaker Change: Right.
Speaker Change: I think so yeah.
Speaker Change: Yes.
Speaker Change: Or should it changed at all it should've been.
Speaker Change: I'm going to let.
Speaker Change: Yes, she wishes failure they'll need, but if you do a little hot.
Speaker Change: And those accruals, which isn't a done deal yet.
Speaker Change: Okay.
Speaker Change: Well like I said, there's only so many you hit you know without talking to any of the b bonds.
Speaker Change: Yes, yes, what <unk> done I should say sequentially you heard the question.
Speaker Change: Since that time he asked Sheila.
Speaker Change: How much do you don't win.
Speaker Change: And then just on the European Shinhan, just all the familiar Yo shop.
Speaker Change: I think I tried to answer I guess, having into the even the margin quickly get it sounds like the margin can we get just like all the others.
Speaker Change: I think that they're usually we get onto the crazy again.
Speaker Change: Can we get in Canada, I think he talked.
Speaker Change: Sounded like Fisher Ultimate I'll show the uptick here I think Asia quite hit it you kind of I should say.
Speaker Change: 19.
Speaker Change: As a cohort of high up in Chicago.
Speaker Change: I actually think that that's what we see that sort of what cohort yet so I can't I think the IEA tissue.
Speaker Change: I think I E. The EBIT Eagle Luke I'll take that.
Speaker Change: Thank you for choosing the P. So you got to get them. All you get you still have in either equal could even push coke with elastic security the shall I say.
Speaker Change: With a.
Speaker Change: Finally, the company, if I'm going to use it.
Sander Yin: Unknown Executive, Jingbo Wang, Qing Pan, Chiyao Huang, Peter Zhang, Melo Xi, Jeff Li, Carl Wong, Clement Ting, Yi Zhao, Zhe Yin, Chiyao Huang, Clement Ting, Yi Zhao, Zhe Yin, Chow How, Noah Holdings Ltd. So yes, a lot of our clients are entrepreneurs and their business may be related to trade. However, when we talk to a merchant like the Yiwu, the small manufacturing products, those types of companies. Yes, we do see some tension in orders from overseas, or we do see some worries about the orders from overseas as well. However, the merchants themselves are pretty confident in their own products, and they believe that China's production is very competitive in this way, and could maintain a high margin.
Speaker Change: Does that come into that sort of the wall.
Speaker Change: Create a impact to all clients.
Speaker Change: When we talk to all of it.
Brian: Hi, Brian.
Speaker Change: E D.
Speaker Change: The impact to be slightly.
Speaker Change: So, yes, a lot of our plans to execute better and better.
Speaker Change: Is it maybe related to.
Speaker Change: When we talk to a lot.
Speaker Change: Like Oh.
Speaker Change: D a.
Speaker Change: I can't comment.
Speaker Change: Uh huh.
Speaker Change: Yes.
Speaker Change: We do see that.
Speaker Change: Pension in otherwise from overseas.
Speaker Change: Some worries about.
Speaker Change: All that stuff.
Speaker Change: Well, how about the marketing stuff out there.
Speaker Change: I'm pretty confident in their own product.
Speaker Change: He leaves the China production Pittsburgh.
Speaker Change: Right.
Speaker Change: That's fine.
Speaker Change: And that's why the impact Sabadell.
Speaker Change: In fact all of them combined.
Speaker Change: Uh huh.
Speaker Change: In our structure inside of our long run impact.
Sander Yin: But then for some more like not as more productive, they are really, I think, bigger types of manufacturer, they may have a concern about their future growth. We believe that our clients these days, they are getting more and more used to the concept that they need to have their assets go through the geopolitics, geopolitics distribution. And they also are planning for their own business to grow overseas as well. And under these two beliefs, we believe that our clients are getting more mature, and that the true impact should be rather limited.
Speaker Change: Of course.
Speaker Change: Not a small trial, that's exactly like a tight cellphone manufacturer.
Speaker Change: Right.
Speaker Change: I get concerned about their future growth.
Speaker Change: So.
Speaker Change: We believe that that our clients. These days they are getting more and more used to the concept that they need to have that asset.
Speaker Change: Electric electric.
Speaker Change: I think dystrophin and they also are planning for their own business to Ctrip and how does these cheaply.
Speaker Change: We believe that that I'll find that out.
Speaker Change: Sure.
Speaker Change: That's true.
Speaker Change: In fact should be.
Speaker Change: Okay.
Speaker Change: I hope that close or something I don't find that told me it kind of cohort two teams actually canceled.
Sander Yin: Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A And in terms of the product side, we've seen that investors are getting more concerned about So what does that mean? It means that when they are picking the first product, the product tends to be, could be structured product right at the end, or some product that is non-standard with liquidity. That means that they can have a chance to do the redemption over a different period of time. So we tend to see that this type of product can be more popular among our investors.
Speaker Change: Changed how you just said.
Speaker Change: How you're planning to do.
Speaker Change: Let's say assortment.
Speaker Change: I think people with Angelina Jolie, Kate will find attractive.
Speaker Change: I'm kind of seeing.
Speaker Change: To say it.
Speaker Change: And is that how you see it up I guess it.
Speaker Change: It is hot you Samit.
Speaker Change: So we know that they're crazy.
Speaker Change: Hi, Tom Shaw, yet another Chinese private equity private credit path.
Speaker Change: Infrastructure I think over that time.
Speaker Change: Just to kick off with a high sit.
Speaker Change: Jonathan.
Speaker Change: Got it.
Speaker Change: Yeah, I think that United.
Speaker Change: And as a cohort or you know how you can I guess your cohort.
Speaker Change: Jim.
Speaker Change: It's kind of.
Speaker Change: Sitting to the side of Tricia settlement that I know the AI. The go hungry you hedge funds. She said I've never been to the actual just I'm going to make an assumption.
Speaker Change: So cohort.
Speaker Change: I guess, just a shot and then I guess just how this ends up.
Speaker Change: Yeah.
Speaker Change: Oh gosh I can actually apply analytics, you don't watch a Cooper said it three times that you pitched.
Speaker Change: And the product side.
Speaker Change: In that sense, I guess I'm more concerned about liquidity, so what does that mean.
Speaker Change: Yeah.
Speaker Change: That's a product that's not enough.
Speaker Change: Tends to be a soft performance.
Speaker Change: Awesome.
Speaker Change: It sounded like that.
Speaker Change: It looks like.
Speaker Change: They can.
Speaker Change: Trying to do there had been shown with Oprah.
Speaker Change: So we tend to be at to see that these type of products.
Speaker Change: Hum.
Sander Yin: And on the other hand, it's about the trend of AI development. And we have also seen that any investment product that could have this AI idea behind could be rather popular among our In terms of insurance, the first quarter is indeed a competition in the Hong Kong insurance market. In fact, from the 4th quarter of last year, there was some pressure and challenge, whether it was restarted or closed. Our response strategy is to focus on customers and really provide value to customers.
Speaker Change: And on the other.
Speaker Change: It's about the trend of Aig's holiday.
Speaker Change: It seems that.
Speaker Change: That's a good topic.
Speaker Change: Oh I see it.
Speaker Change: You'd rather coppola Valerie.
Speaker Change: And then secondly, if I'm in transit and is it easy to shut down the Shanghai, but I guess just wanted you to Q2.
Speaker Change: Especially when they don't find me the C. J, just one Chilean peso, especially those who actually something I can find it here.
Speaker Change: Our agenda.
Speaker Change: I didn't know if I should suggest that Cooper.
Speaker Change: It's interesting troubleshoot limited cash.
Speaker Change: Well me, especially here okay.
Speaker Change: Lindsay.
Speaker Change: I'll typically hit us at that time.
Speaker Change: Just a couple of thoughts.
Sander Yin: Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Sponsored ADR Class A Welcome to the Hong Kong Market, the Hong Kong market is very challenging and very competitive. So what I've been doing is the back to basics that is the circle plan. What we do is we partner with insurance company and tailor made products for our clients. And for those with a high premium, we provide discounts on a legit basis. That and we received a good result on that, which is the premium we received for clients for the first year has been increased essentially from in the past around $100,000 to currently around $190,000.
Speaker Change: Hopefully that.
Speaker Change: Uh huh.
Speaker Change: Just how does that show Jampolis again about ill fated with the junior championship on I apologize, but how does the.
Speaker Change: And if it doesn't get any better.
Speaker Change: And then of course, you saw what I kind of what are the main site.
Speaker Change: Jack just a change in the show me involved there's I'll eat it shouldn't really if she said.
Speaker Change: So of course, you don't have that kind of kicking in Savannah.
Speaker Change: I said, that's something you'll have to hit our targeted cash balance sheet.
Speaker Change: She's a big cohort I said, Ohio, So I'm hopeful I should put the whole thing and that's just a bit of a pop.
Speaker Change: JP has been kind of like the.
Speaker Change: The attention.
Speaker Change: Okay. Just a quick one I was hoping that you'd want me, if I say something.
Speaker Change: I don't know, which is that pace or something or what kind of dark seal.
Speaker Change: But it's worth it.
Speaker Change: So she's she wants out of home as you do that.
Speaker Change: So should I think I, maybe I can't see it up.
Speaker Change: And if I didn't say that.
Sander Yin: Candidly the purchase accounting.
Sander Yin: Yeah, I shouldn't it when given a percentage.
Speaker Change: Let's just and I know that the profit.
Speaker Change: We can't change it.
Speaker Change: Because each of them which are issued.
Speaker Change: Okay.
Speaker Change: Yes indeed.
Speaker Change: I'd like to focus on that just yet.
Speaker Change: Yeah get cohorts at that you're that you have.
Speaker Change: Went through the journey.
Speaker Change: How many of the type of EBITDA piece. Unfortunately for you lately.
Speaker Change: The question is you've got the other sets of Copel <unk> E <unk>.
Speaker Change: How that channel kind of assessing what the peso or they want to see you guys definitely shape, especially since I don't mind.
Speaker Change: Oh, yes.
Speaker Change: Hi.
Speaker Change: It's a central a cohort of like I said it.
Speaker Change: She has had to change out like Dorian goods won't be on the.
Speaker Change: I'll leave it at that neither the sure that's all in the Handout you said it wasn't at that time.
Speaker Change: At the moment and he said that without a washout.
Sander Yin: So with that good don't pay on Etame somebody that much.
Speaker Change: Hi, its holdco for the Goldman has this is how I'm going to die.
Speaker Change: Yes, a couple of batesville, especially in attempting to change if the official until they ship.
Speaker Change: Got it.
Speaker Change: Okay.
Speaker Change: Insurance side.
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: The market is very challenging and very competitive.
Speaker Change: Been doing it.
Speaker Change: So that's our plan.
Speaker Change: What is it that we partner with insurance company and tailor made products for all of our clients and so.
Speaker Change: A high premium.
Speaker Change: Okay, I don't know, let's face it.
Speaker Change: And we pick the right cell phone, which is a premium.
Speaker Change: Premiums were very simple for clients.
Speaker Change: Yeah.
Speaker Change: Essentially.
Speaker Change: In the past around 100000 to currently around 119000.
Sander Yin: So we've seen that it's a great opportunity for the company to because when we look at the Chinese clients, most of them it's quite insufficient about getting enough pro-tech in their wealth.
Speaker Change: So we've been very.
Speaker Change: Great opportunity for the company.
Speaker Change: The Chinese clients.
Speaker Change: It's quite simple question about that.
Speaker Change: And knocked off Cotai.
Sander Yin: So we believe that we should keep on building the relationship and selling these insurance products to our For overseas investment, that is another part of the project that we've seen clients have great Incident Overview Sponsored ADR Class A The kind of war. thumb up or leave us a comment below, Hello!
Speaker Change: So we believe that we should keep on building the relationship with some of its insurance products to outside.
Speaker Change: Uh huh.
Speaker Change: And so that's another part of the product.
Speaker Change: Client cash right.
Speaker Change: And the cap rate paid by <unk>.
Speaker Change: And keeping the same thing it's already reached out to all clients.
Speaker Change: The current interest rate cut cycle.
Speaker Change: We have stayed in that classic movies interestingly. It seems there's something that's been called out. So we believe with that I'll be honest tea some call that type of certification in the near future.
Speaker Change: Yeah.
Speaker Change:
Speaker Change: Right.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Peter.
Speaker Change: So how in the world.
Speaker Change: The problem with all of our restaurants.
Speaker Change: Those are the.
Operator: Operator, can you check if there is any more questions from our audience? Otherwise, we'll close the call now. Once again, if you would like to ask a question, please press star and 1 to join the question queue. Seeing as there are no questions, I'd like to turn the conference back over to the company for any closing remarks. The call is now concluded. Thank you for attending today's presentation. You may now disconnect.
Speaker Change: Upgrade they can check a saturday side any more questions from our audience.
Speaker Change: I'd like to close the call now.
Speaker Change: Yeah.
Speaker Change: Once again, if you would like to ask a question. Please press Star then one to join the question queue.
Speaker Change: Seeing as there are no questions I'd like to turn the conference back over to the company for any closing remarks.
Speaker Change: The call is now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: [music].
Operator: Sponsored ADR Class A Sponsored ADR Class A