Q2 2025 Noah Holdings Ltd Earnings Call

Speaker #3: Good day, and welcome to Noah Holdings' Second Quarter and Half Year 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Sandar Yin: Good day and welcome to Noah Holdings' second quarter and half year 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Doreen Chu, Senior IR Director. Please go ahead.

Speaker #3: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone.

Speaker #3: To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Doreen Chu, Senior IR Director.

Speaker #3: Please go ahead.

Speaker #4: Thank you. Good morning and good afternoon, and welcome to Noah's Second Quarter and Half Year 2025 Earnings Conference Call. Joining me today we have Ms. Wang Jingbao, the co-founder and chairlady.

Doreen Chu: Thank you. Good morning and good afternoon, and welcome to Noah's second quarter and half year 2025 earnings conference call. Joining me today, we have Ms. Wang Jingbao, the co-founder and chair lady. Mr. Sandar Yin, co-founder, director and CEO, and also Mr. Grant Peng, CFO. Mr. Yin will begin with an overview of our recent business highlights, followed by Mr. Peng, who will discuss our financial and operational results. They will all be available to take your questions in the Q&A section that follows. Please note that the discussion today will contain forward-looking statements that are subject to risks and uncertainties that may cause actual results to default materially from those in our forward-looking statements. Potential risks and uncertainties included but are not limited to those outlined in our public filings with the SEC and the Hong Kong Stock Exchange.

Speaker #4: Mr. Sander Ng, co-founder, director, and CEO, and also Mr. Qing Pan, CFO. Mr. Ng will begin with an overview of our recent business highlights, followed by Mr. Pan, who will discuss our financial and operational results.

Speaker #4: They will all be available to take your questions in the Q&A section that follows. Please note that the discussion today will contain forward-looking statements that are subject to risks and uncertainties.

Speaker #4: 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.

Speaker #4: Noah does not undertake any obligation to update any forward-looking statements, except as required under applicable law. With that, I would now like to pass the call over to Sander.

Doreen Chu: Noah does not undertake any obligation to update any forward-looking statements except as required under applicable law. With that, I would now like to pass the call to over to Sandar. Mr. Yin, please go ahead.

Speaker #4: Mr. Ng, please go ahead.

Speaker #5: Okay, good morning to everyone, and thank you for joining Noah's Second Quarter 2025 earnings conference call. 2025年二季度, 全球金融市场波动剧烈, 特朗普政府出台新的关税政策, 地缘政治风险从背景音乐变成了主旋律。得益于诺亚上半年CIO报告的前瞻性, 诺亚的客户在二季度取得了较好的投资业绩。截止二季度末, 诺亚的黑卡客户中, 累计实现盈利的客户占比超过95%。经过几年的国际拓展, 我们完成了全球产品矩阵的搭建, VCPE基金、另类信贷基金、基建基金、对冲基金、全球公募基金、港美股结构化产品以及资产传承方面的保险、信托、身份规划等传承方案均以端到端完成。凭借一站式的配置能力和专业的研判, 助力客户筑牢资产的压舱石, 在不确定环境中持续增强财富韧性。很高兴向大家汇报诺亚在二季度取得了良好的经营成果。我们的净收入达到6.3亿元, 经营利润同比上升20.2%。Non-GAAP净利润同比大幅增长78.2%, 环比增长12%。达到1.9亿元, 上半年总计净收入12.4亿元, Non-GAAP净利润3.6亿元, 更重要的是我们的收入结构进一步的优化了。投资类产品贡献的收入进一步增加, 募集费中投资类产品的占比上升至近年新高, 超过30%。在境内业务方面, 我们的策略是聚焦提升理财师的激励激活休眠客户以及拓展新的客户。在境外业务则重点扩张前台理财师队伍和本地新客户量。我们在上半年新增合格投资者的客户数是687名, 我们持续进行了内部的调整和优化, 各BO都要求推动从产品到销售的自闭环建设。同时, 我们通过客户服务推动交叉销售, 从而带动了客户整体活跃度的持续提升。我们坚持平台与能力建设的投入, 通过AI服务理财师和客户提升客户的满意度, 逐步完善各个booking center和数字化平台的建设。在客户触达产品集成、数字化的支持和合规风控方面实现跨境协同, 为公司未来可持续发展打下坚实的基础。接下来我将以各个BO的。

Sandar Yin: Okay, good morning to everyone, and thank you for joining Noah's second quarter 2025 earnings conference call. 2025年二季度, 全球金融市场波动剧烈, 特朗普政府出台新的关税政策, 地缘政治风险从背景音乐变成了主旋律, 得益于诺亚上半年CIO报告的前瞻性。诺亚的客户在二季度取得了较好的投资业绩。截止二季度末, 诺亚的黑卡客户中, 累计实现盈利的客户占比超过95%。经过几年的国际拓展, 我们完成了全球产品矩阵的搭建: VCPE基金、另类信贷基金、基建基金、对冲基金、全球公募基金、港美股结构化产品以及资产传承方面的保险、信托、身份规划等传承方案均已端到端完成。凭借一站式的配置能力和专业的研判, 助力客户筑牢资产的压仓石, 在不确定环境中持续增强财富韧性。很高兴向大家汇报, 诺亚在二季度取得了良好的经营成果, 我们的净收入达到6.3亿元, 经营利润同比上升20.2%。Non-GAAP净利润同比大幅增78.2%, 环比增长12%, 达到1.9亿元。上半年总基净收入12.4亿元, Non-GAAP净利润3.6亿元。更重要的是, 我们的收入结构进一步的优化了, 投资类产品贡献的收入进一步增加, 募集费中投资类产品的占比上升至近年新高, 超过30%。在净利业务方面, 我们的策略是聚焦提升理财师的激励, 激活休眠客户以及拓展新的客户。在境外业务则重点扩张前台理财师队伍和本地新客户量。我们在上半年新增合格投资者的客户数是627名。我们持续进行了内部的调整和优化, 各BU都要求推动从产品到销售的自闭环建设。同时, 我们通过客户服务推动交叉销售, 从而带动了客户整体活跃度的持续提升。我们坚持平台与能力建设的投入, 通过AI服务理财师和客户提升客户的满意度, 逐步完善各个Booking Center和数字化平台的建设。在客户触达产品集成、数字化的支持和合规风控方面实现跨境协同, 为公司未来可持续发展打下坚实的基础。接下来, 我将以各个BU的

Speaker #6: In the second quarter of 2025, global financial markets experienced significant volatility. With the Trump administration's tariff policies and geopolitical risks moving from background noise to center stage, leveraging the forward-looking insights from Noah's CIO report for the first half of the year, our clients achieved strong investment returns, with over 95% of our Black Card clients realizing cumulative gains by the end of the quarter.

Sandar Yin: In the second quarter of 2025, global financial markets experienced significant volatility. With the Trump administration's tariff policies and geopolitical risks moving from background noise to center stage, leveraging the forward-looking insights from Noah's CIO report for the first half of the year, our clients achieved strong investment returns, with over 95% of our black card clients realizing cumulative gains by the end of the quarter. After several years of developing and expanding our overseas business, we have established a comprehensive robo-product matrix, including VC and PE funds, private credit funds, infrastructure funds, hedge funds, robo-mutual funds, Hong Kong and US equity structured products, and wealth inheritance solutions such as insurance, trusts, and residency planning. These diverse offerings have all been fully integrated, providing clients with wealth allocation capabilities and investment expertise needed to solidify their asset base and enhance wealth with sellings amid uncertainty.

Speaker #6: After several years of developing and expanding our overseas business, we have established a comprehensive global product matrix, including VC and PE funds, private credit funds, infrastructure funds, hedge funds, global mutual funds, Hong Kong and U.S. equity structured products, and wealth inheritance solutions such as insurance, trusts, and residency planning.

Speaker #6: These diverse offerings have all been fully integrated, providing clients with one-stop allocation capabilities and investment expertise needed to solidify their asset base and enhance wealth resilience amid uncertainty.

Speaker #6: We are pleased to report a strong operational and financial performance during the second quarter. Net revenues reached renminbi 630 million, with income from operations increasing by 20.2% year-over-year, and non-GAAP net income surged 78.2% year-over-year, and 12% sequentially to renminbi 189 million.

Sandar Yin: We are pleased to report that a strong operational and financial performance during the second quarter. Net revenues reached the remedy 630 million, with income from operations increasing by 20.2% year over year, and non-GAAP net income surged 78.2% year over year, and 12% sequentially to remedy 189 million. Net revenues for the first half of 2025 were remedy 1.2 billion, generating non-GAAP net income of remedy 358 million. Our revenue mix continues to improve, driven by growing investment product revenue. Specifically, one-time commissions from investment products have reached the highest point in recent years, making up over 30% of one-time commissions revenue.

Speaker #6: Net revenues for the first half of 2025 were renminbi 1.2 billion, generating non-GAAP net income of renminbi 358 million. Our revenue mix continues to improve.

Speaker #6: Driven by growing investment product revenue, specifically one-time commissions from investment products, we have reached the highest point in recent years, making up over 30% of one-time commissions revenue.

Speaker #5: 接下来, 我将以各个业务BO为主要的维度, 向大家更新各条线的业绩和运营的状况。在境外业务方面, 二季度境外业务净收入3亿元, 在集团净收入占比47.1%, 投资类产品的收入持续提升。境外客户经理数人数152人, 同比上升34.5%。我们持续的能力建设和专业判断, 帮助客户在二季度的投资中实现了可观的收益。也带动了境外业务在募集量和收入等方面的显著提升。ARC境外。 Okay, all right. Doreen. Doreen, please.

Sandar Yin: 接下来, 我将以各个业务BU为主要的维度, 向大家更新各条线的业绩和运营的状况。在境外业务方面, 二季度境外业务净收入3亿元, 在集团净收入占比47.1%。投资类产品的收入持续提升, 境外客户经理数人数152人, 同比上升34.5%。我们持续的能力建设和专业判断, 帮助客户在二季度的投资中实现了可观的收益, 也带动了境外业务在募集量和收入等方面的显著提升。

Doreen Chu: Okay, Doreen, please. Domestically, our strategy remains focused on enhancing relationship manager incentives, reactivating dormant clients, and acquiring new clients. Overseas, we continue to extend our relationship manager teams and grow our local client base. In the first half, we added 627 new qualified investors as clients. We continue to make progress in optimizing our internal organization, with each business unit building an end-to-end process that spans from product development to sales. In addition, we are driving cross-selling activities through enhanced client service and increasing overall client activity and engagement. We remain committed to investing in our platform and capabilities, leveraging AI to empower relationship managers and clients while boosting client satisfaction. Concurrently, we are advancing the development of our booking centers and digital platforms to enhance cross-border synergies for client outreach, product integration, digital infrastructure, and risk controls, laying a solid foundation for sustainable growth future growth.

Speaker #6: So, domestically, our strategy remains focused on enhancing relationship management incentives, reactivating dormant clients, and acquiring new clients. Overseas, we continue to expand our relationship management teams and grow our local client base.

Speaker #6: In the first half, we added 627 new qualified investor clients. We continue to make progress in optimizing our internal organization, with each business unit building an end-to-end process that spans from product development to sales. In addition, we are driving cross-selling activities through enhanced client service and increasing overall client activity and engagement.

Speaker #6: We remain committed to investing in our platform and capabilities, leveraging AI to empower relationship managers and clients while boosting client satisfaction. Concurrently, we are advancing the development of our booking centers and digital platforms to enhance cross-border synergies for client outreach, product integration, digital infrastructure, and risk controls.

Speaker #6: Laying a solid foundation for sustainable future growth. I will now dive into the performance and operations of each business unit. Net revenues from overseas reached renminbi 297 million in the second quarter, accounting for 47.1% of total net revenue, with net revenues from overseas investment products continuing to generate solid growth.

Doreen Chu: I will now dive into the performance and operations of each business unit. Net revenues from overseas reached the remedy 297 million in the second quarter, accounting for 47.1% of total net revenue, with net revenues from overseas investment products continuing to generate solid growth. Our team of overseas relationship managers expanded to 162 by the end of the quarter, a year-on-year increase of 34.5%. The ongoing enhancements to our capacities and deepening expertise drove strong investment returns for clients during the quarter, supporting solid growth in both overseas transaction value and net revenues.

Speaker #6: Our team of overseas relationship managers expanded to 152 by the end of the quarter, a year-on-year increase of 34.5%. The ongoing enhancement of our capacities and deepening expertise drove strong investment returns for clients during the quarter.

Speaker #6: Supporting solid growth in both overseas transaction value and net revenues.

Speaker #5: 在ARC境外财富管理板块, 二季度实现净收入1.3亿元, 同比下降14.1%。主要是我们持续聚焦投资类产品的配置, 保险分销业务收入下降, 境外AUA达到91亿元, 同比增长6.6%。占集团总AUA的比例提升至27.6%, 主要是私募股权AUA增加所贡献。美元私募产品上半年募集量同比去年增长70.3%, 达到7.7亿美元。美元私募二级产品中, 对冲基金和结构化产品上半年募集量同比去年增长超过两倍, 达到4.2亿美元。我们与国际知名资产管理公司的合作方面取得了持续的良好的进展。目前已经多次成为IRIS翰林等全球Top GP旗舰产品在亚洲地区募集量销售渠道的前三。截止二季度, 我们的境外注册客户数超过18,900人, 同比提升13%。其中活跃客户数超过3,600人, 同比增长12.5%。

Sandar Yin: 在ARK境外财富管理板块, 二季度实现净收入1.3亿元, 同比下降14.1%。主要是我们持续聚焦投资类产品的配置, 保险分销业务收入下降, 境外AUA达到91亿元, 同比增长6.6%。占集团总AUA的比例提升至27.6%, 主要是私募股权AUA增加所贡献。美元私募产品上半年募集量同比去年增长70.3%, 达到7.7亿美元。美元私募二级产品中, 对冲基金和结构化产品上半年募集量同比去年增长超过两倍, 达到4.2亿美元。我们与国际知名资产管理公司的合作方面取得了持续的良好的进展, 目前已经多次成为Iris、汉林等全球TOP GP旗舰产品在亚洲地区募集量销售渠道的前三。截止二季度, 我们的境外注册客户数超过18,900人, 同比提升13%。其中活跃客户数超过3,600人, 同比增长12.5%。

Speaker #6: Net revenues from overseas wealth management were RMB 129 million during the quarter, down 14.1% year-on-year, due primarily to our ongoing strategic focus on investment products, which resulted in a decline in revenue contribution from the distribution of insurance products.

Doreen Chu: Net revenues from overseas wealth management were remedy 129 million during the quarter, down 14.1% year on year, due primarily to our ongoing strategic focus on investment products, which resulted in a decline in revenue contribution from the distribution of insurance products. Overseas AUA grew 6.6% year over year to USD 9.1 billion, and now accounts for 27.6% of total AUA, primarily driven by increase in distribution of private equity funds. Transaction value of USD denominated private market products in the first half of the year increased by 70.3% compared to the same period last year, reaching USD 765 million. Within USD private secondary products, transaction value of hedge funds and structural products more than doubled year on year to USD 424 million.

Speaker #6: Overseas AUA grew 6.6% year-over-year to $9.1 billion and now accounts for 27.6% of total AUA, primarily driven by an increase in the distribution of private equity funds.

Speaker #6: Transaction value of U.S. dollar-denominated private market products in the first half of the year increased by 70.3%, compared to the same period last year.

Speaker #6: Reaching $765 million, within U.S. dollar private secondary products, the transaction value of hedge funds and structured products more than doubled year-on-year to $424 million.

Speaker #6: We continue to expand and deepen our relationship with reputable product and investment partners globally, and we have now become one of the top three distribution channels in Asia for flagship products from leading GPs such as IRIS and Hamilton Link.

Doreen Chu: We continue to expand and deepen our relationship with reputable product and investment partners globally, and have now become rapidly one of the top three distribution channels in Asia for flagship products from leading GPs such as Ares and Hamilton Link. As for the second quarter, the number of registered overseas clients now exceeds 18,900, a year-on-year increase of 13%, with the number of active clients now over 3,600, a year-on-year increase of 12.5%.

Speaker #6: As for the second quarter, the number of registered overseas clients now exceeds 18,000, a year-on-year increase of 13%. With the number of active clients now over 3,600, a year-on-year increase of 12.5%.

Speaker #5: All All of the境外资产管理板块, 二季度实现净收入1.1亿元, 同比上升11.5%。主要是我们AUM在增长, 带动相应管理费增长所贡献的。境外AUM达到58亿美元, 同比增长7.4%。占总AUM的比例为28.5%。在Glory Family Heritage综合服务板块, 二季度实现净收入0.6亿元, 同比上升91%。香港保险行业的竞争持续激烈, 但我们通过大颗大单的策略, 为大客户高性价比定制产品取得了较好的效果。海保、建军、单价进一步的提升, 荣耀无底薪经纪人和外部渠道已创造超过2,000万的收入, 为新客拓展带来新鲜血液。

Sandar Yin: 我们的境外资产管理板块, 二季度实现净收入1.1亿元, 同比上升11.5%。主要是我们AUM在增长带动相应管理费增长所贡献的。境外AUM达到58亿美元, 同比增长7.4%, 占总AUM的比例为28.5%。在Glory Family Heritage综合服务板块, 二季度实现净收入0.6亿元, 同比上升91%。香港保险行业的竞争持续激烈, 但我们通过大客大单的策略, 为大客户高性价比定制产品取得了较好的效果。海宝建军单价进一步的提升, 荣耀无底线经纪人和外部渠道已创造超过2,000万的收入, 为新客拓展带来新鲜血液。

Speaker #6: Net revenues from overseas asset management during the second quarter were renminbi 108 million, up 11.5% year-over-year, driven primarily by growth in AUM and recurring service fees.

Doreen Chu: Net revenues from overseas asset management during the second quarter were remedy 108 million, up 11.5% year over year, driven primarily by growth in AUM and recurring service fees. Overseas AUM was USD 5.8 billion, up 7.4% year over year, and accounting for 28.5% of total AUM. Net revenues from overseas insurance and comprehensive services during the quarter were remedy 59 million, an increase of 91% year over year. The Hong Kong insurance market remains highly competitive. However, our quoted big clients' large policies, strategy, and cost-effective customized products for major clients are delivering strong results in this environment, with average overseas insurance policy size continuing to increase. Additionally, Glory's team of commission-only brokers and external channels has already generated over remedy 20 million in revenue, injecting such vitality into new client acquisition.

Speaker #6: Overseas AUM was $5.8 billion, up 7.4% year-over-year, and accounting for 28.5% of total AUM. Net revenues from overseas insurance and comprehensive services during the quarter were Renminbi 59 million, an increase of 91% year-over-year.

Speaker #6: The Hong Kong insurance market remains highly competitive. However, our quoted big clients' large policies strategy and cost-effective, customized products for major clients are delivering strong results in this environment.

Speaker #6: With the average overseas insurance policy size continuing to increase, additionally, Glory's team of commission-only brokers and external channels has already generated over RMB 20 million in revenue, injecting fresh vitality into new client acquisition.

Speaker #5: 境内业务方面, 二季度境内业务净收入贡献3.3亿元, 同比下降1.3%, 环比上升7.2%。今年A股市场的恢复带动境内业务表现的改善。人民币私募二级产品在二季度继续呈现强劲的增长走势, 部分抵消了存量人民币私募股权类产品管理费收入下降的影响。值得一提的是, A股市场的回暖有效提升了二级市场投资者的信心, 也进一步推动了我们整体国内二级业务的发展。诺亚阵型基金销售板块在二季度实现净收入1.3亿元, 同比增长12.8%。二季度人民币二级产品募集量继续保持良好的募集势头, 上半年私募二级产品募集量达61.3亿元, 同同步显著上升, 同比显著上升185.3%。其中A股市场的活跃表现为人民币二级产品提供了良好的市场环境, 使得我们能够在二级业务上面持续取得突破性的一个进展。各非资产板块, 二季度实现净收入1.8亿元, 同比下降10.6%。主要是存量人民币私募股权类产品到期, 相关管理费收入下降, 在一级市场, 各非持续推动存量资产的退出和分配。在二季度, 各非实现了8亿元的私募股权资产的退出, 境内荣耀保险经纪板块二季度实现净收入716万, 同比下降38.7%。源于我们减缓投放了国内的保险产品。

Sandar Yin: 境内业务方面, 二季度境内业务净收入贡献3.3亿元, 同比下降1.3%, 环比上升7.2%。今年A股市场的恢复带动境内业务表现的改善, 人民币私募二级产品在二季度继续呈现强劲的增长走势, 部分抵消了存量人民币私募股权类产品管理费收入下降的影响。值得一提的是, A股市场的回暖有效提升了二级市场投资者的信心, 也进一步推动了我们整体国内二级业务的发展。诺亚振兴基金销售板块在二季度实现净收入1.3亿元, 同比增长12.8%。二季度人民币二级产品募集量继续保持良好的募集势头, 上半年私募二级产品募集量达61.3亿元, 同步显著上升, 同比显著上升185.3%。其中A股市场的活跃表现为人民币二级产品提供了良好的市场环境, 使得我们能够在二级业务上面持续取得突破性的一个进展。歌飞资产板块二季度实现净收入1.8亿元, 同比下降10.6%。主要是存量人民币私募股权类产品到期, 相关管理费收入下降。在一级市场, 歌飞持续推动存量资产的退出和分配。在二季度, 歌飞实现了8亿元的私募股权资产的退出。境内荣耀保险经纪板块二季度实现净收入716万, 同比下降38.7%, 源于我们减缓投放了国内的保险产品。

Speaker #6: Net revenues from mainland China during the quarter were renminbi 3.33 million, a year-on-year decrease of 1.3%, but a sequential increase of 7.2%. The recovery in the Asia market this year has proven a substantial improvement in the performance of our domestic business.

Doreen Chu: Net revenues from mainland China during the quarter were remedy 333 million, a year-on-year decrease of 1.3%, but a sequential increase of 7.3%. The recovery in the Asia market this year has driven a substantial improvement in the performance of our domestic business. Remedy denominated private secondary products continued to gain strong growth momentum in the second quarter, which partially offset a decline in recurring service fees from existing remedy private equity products. Notably, the rebound in the Asia market increased investor confidence in the secondary market and is fueling growth in our domestic public securities business. Net revenues from domestic public securities during the quarter were remedy 132 million, a year-over-year increase of 12.8%. Transaction value of remedy denominated secondary products continued their strong momentum, with transaction values for private secondary products in the first half of the year reaching remedy 6.1 billion, a significant year-over-year increase of 185.3%.

Speaker #6: Renminbi-denominated private secondary products continue to gain strong growth momentum in the second quarter, which partially offset a decline in recurrent service fees from existing Renminbi private equity products.

Speaker #6: Notably, the rebound in the Asia market increased investor confidence in the secondary market and is fueling growth in our domestic public securities business. Net revenues from domestic public securities during the quarter were renminbi 132 million, a year-over-year increase of 12.8%.

Speaker #6: Transaction value of renminbi-denominated secondary products continued a strong momentum, with transaction values for private secondary products in the first half of the year reaching RMB 6.1 billion.

Speaker #6: A significant year-over-year increase of 185.3%. The rebound in the Asia market provides a favorable environment for renminbi-denominated secondary products, enabling us to achieve continuous breakthroughs in this business.

Doreen Chu: The rebound in the Asia market provides a favorable environment for remedy denominated secondary products, enabling us to achieve continued breakthroughs in this business. Net revenues from domestic asset management during the quarter were remedy 177 million, down 10.6%. This was due to lower recurring service fees from existing remedy denominated private equity products. In the primary market, GOFA focuses on facilitating exits and distribution of assets managed by the funds, where it records remedy 800 million in exits related to private equity products. Net revenues from domestic insurance during the quarter were remedy 716 million, a year-over-year decrease of 38.7%. This was the result of our strategic decision to reduce the promotion of domestic insurance products.

Speaker #6: Net revenues from domestic asset management during the quarter were renminbi 177 million, down 10.6%. This was due to lower recurring service fees from existing renminbi-denominated private equity products.

Speaker #6: In the primary markets, Golf is focused on facilitating exits and distribution of assets managed by the funds, where it recorded RMB 800 million in exits related to private equity products.

Speaker #6: Net revenues from domestic insurance during the quarter were renminbi 716 million, a year-over-year decrease of 38%. This was a result of our strategic decision to reduce the promotion of domestic insurance products.

Speaker #5: 展望下半年, 诺亚将重点围绕以下三大战略方向持续的发力。第一, 聚焦高净值的客户, 积极扩大客户基础。我们正在积极进入美国、加拿大及日本等成熟金融市场拓展华人客户。在这些成熟的市场中, 我们计划推进事业合伙人的合作模式, 吸纳更多的人才, 扩大客户基础。我们定位自己是全球市场中专注服务华人高净值客户的财富管理机构。第二, 持续丰富全球各个品类的产品线, 满足客户多元化的需求。丰富的产品组合可以让我们为客户提供更具竞争力的投资解决方案。在一级市场, 我们将拓展生态圈合作伙伴关系。开发定制化的投资方案与独家机会。在二级市场, 依托全球投研的能力, 精选顶尖管理人的优质策略, 增强稳健型资产配置方案的供给能力。我们还将积极探索数字资产类别的新机遇, 拓展财富与资产管理业务边界。为客户提供更全面、更前沿的投资体验。今天我们也同步宣布Audio与Coinbase合作发行了第一支投资于稳定币的私募信贷基金。未来我们将持续拓展数字资产相关的产品线, 并与持牌合规的合规的机构合作, 把握这一新兴资产类别快速发展的机遇。为客户在全球资产配置中开辟新的增长引擎。未来将拓展合规数字资产基金的更多机会。第三, 在实现业务增长的同时, 持续提升运营效率, 我们已经在各个环节引入AI赋能理财师、客户和中后台运营人员。这些措施进一步提升了客户的体验, 降低了运营的成本。面对中国企业出海的大机遇, 我们期待在有华人的地方就有Noah's Arc,

Sandar Yin: 展望下半年, 诺亚将重点围绕以下三大战略方向持续的发力。第一, 聚焦高净值的客户, 积极扩大客户基础。我们正在积极进入美国、加拿大及日本等成熟金融市场, 拓展华人客户。在这些成熟的市场中, 我们计划推进事业合伙人的合作模式, 吸纳更多的人才, 扩大客户基础。我们定位自己是全球市场中专注服务华人高净值客户的财富管理机构。第二, 持续丰富全球各个品类的产品线, 满足客户多元化的需求。丰富的产品组合可以让我们为客户提供更具竞争力的投资解决方案。在一级市场, 我们将拓展生态圈合作伙伴关系, 开发定制化的投资方案与独家机会。在二级市场, 依托全球投研的能力, 精选顶尖管理人的优质策略, 增强稳健性资产配置方案的供给能力。我们还将积极探索数字资产类别的新机遇, 拓展财富与资产管理业务边界, 为客户提供更全面、更前沿的投资体验。今天我们也同步宣布, Audio与Coinbase合作, 发行了第一支投资于稳定币的私募信贷基金。未来我们将持续拓展数字资产相关的产品线, 并与持牌合规的合规的机构合作, 把握这一新兴资产类别快速发展的机遇, 为客户在全球资产配置中开辟新的增长引擎。未来将拓展合规数字资产基金的更多机会。第三, 在实现业务增长的同时, 持续提升运营效率。我们已经在各个环节引入AI、赋能理财师、客户和中后台运营人员。这些措施进一步提升了客户的体验, 降低了运营的成本。面对中国企业出海的大机遇, 我们期待在有华人的地方就有Noah's Ark.

Speaker #6: Looking ahead to the second half of the year, we will focus our efforts on the following three strategic priorities. First, we will concentrate on high-net-worth clients and actively expand our customer base.

Doreen Chu: Looking ahead to the second half of the year, we will focus our efforts on the following three strategic priorities. First, we will concentrate on high net worth clients and actively expand our customer base. We are proactively entering mature financial markets such as the United States, Canada, and Japan to serve global Chinese clients. In these established markets, we will adopt a business partner cooperation model to attract more talents and broaden our client base. Our positioning is clear: to be a wealth management platform delegated to serving global Chinese high net worth investors. Second, we will continue to enrich our global product offerings across various categories to meet the diverse needs of our clients. A robust product portfolio enables us to provide more competitive investment solutions. In the primary market, we will expand our ecosystem partnership to develop customized investment solutions and exclusive opportunities.

Speaker #6: We are proactively entering mature financial markets, such as the United States, Canada, and Japan, to serve our global Japanese and Chinese clients. In these established markets, we will adopt a business partner cooperation model to attract more talent and broaden our client base.

Speaker #6: Our positioning is clear: to be a wealth management platform dedicated to serving global Chinese high-net-worth investors. Second, we will continue to enrich our broader global offerings across various categories to meet the diverse needs of our clients.

Speaker #6: A robust product portfolio enables us to provide more competitive investment solutions. In the primary market, we will expand our ecosystem partnership to develop customized investment solutions and exclusive opportunities.

Speaker #6: In the secondary market, leveraging our global investment research capabilities, we will carefully select high-quality strategies from top-tier managers to enhance our ability to deliver robust asset allocation solutions.

Doreen Chu: In the secondary market, leveraging our global investment research capabilities, we will carefully select high-quality strategies from top-tier managers to enhance our ability to deliver robust asset allocation solutions. We will also actively explore new opportunities in digital assets, pushing the boundaries of wealth and asset management to provide clients with a more comprehensive and cutting-edge investment experience. Today, we are also pleased to announce that we have selected Coinbase Asset Management as a strategic partner to establish our list of stablecoin yield funds. We shall expand our digital asset-related product lines and collaborate with licensed compliant institutions to capture opportunities in this rapidly growing emerging asset class. This initiative aims to open new growth engines for our clients. Global asset allocation strategies will feature expansion opportunities in compliant digital asset fund management. Third, we remain committed to enhancing operational efficiency while pursuing growth.

Speaker #6: We will also actively explore new opportunities in digital assets, pushing the boundaries of wealth and asset management to provide clients with a more comprehensive and cutting-edge investment experience.

Speaker #6: Today, we are also pleased to announce that we have selected Coinbase Asset Management as a strategic partner to establish our list of stablecoin yield funds.

Speaker #6: We shall expand our digital asset-related product lines and collaborate with licensed, compliant institutions to capture opportunities in this rapidly growing emerging asset class. This initiative aims to open new growth engines for our clients.

Speaker #6: Global asset allocation strategies will explore future expansion opportunities in compliant digital asset fund management. Third, we remain committed to enhancing operational efficiency while pursuing growth.

Speaker #6: We continue to integrate AI across our operations to empower relationship managers, clients, and middle and back office staff. These initiatives have significantly improved the client experience and reduced operational costs.

Doreen Chu: We continue to integrate AI across our operations to empower relationship managers, clients, and middle and back office staff. These initiatives have significantly improved the client experience and reduced operational costs. Amid the vast opportunities presented by the global expansion of Chinese enterprise, we aspire to have Noah's Ark present wherever there are Chinese clients around the world.

Speaker #6: Amid the vast opportunities presented by the global expansion of Chinese enterprise, we aspire to have Noah's Arc present wherever there are Chinese clients around the world.

Speaker #5: 接下来, 我也请CFO潘青为大家详细介绍集团整体的财务表现。谢谢大家。

Sandar Yin: 接下来, 我也请CFO潘青为大家详细介绍集团整体的财务表现。谢谢大家。

Speaker #6: I will now pass over to our CFO, Grant, to go over our financials in more detail. Thank you all.

Doreen Chu: I will now pass over to our CFO Grant to go over our financials in more detail. Thank you all.

Speaker #7: Thank you, Sander. Warm greetings to everyone joining us today. I'm very excited to announce our financial performance in the second quarter of 2025.

Grant Peng: Thank you, Sandar. So, warm greetings to everyone joining us today. I'm very excited to announce our financial performance in the second quarter of 2025 that reflects steady progress and resilience across our operations. Supported by revenue growth, disciplined cost management, and investment income, we achieved non-GAAP net profit RMB 189 million. This represented 78.2% year-over-year growth and a 12% sequential increase. For the first half of 2025, non-GAAP net income totaled RMB 358 million, a 33.9% year-over-year increase. More importantly, management is very encouraged by the structural improvements in our operations this quarter. We achieved substantial growth in revenues related to investment products, with a 92% year-over-year increase and a 30.6% sequential rise in that category. Driven by clients' more uplifting investment sentiment, it also attributed to a wider selection of quality investment solutions that we provided to our clients, both onshore and offshore.

Speaker #7: That reflects steady progress and resilience across our operations. Supported by revenue growth, disciplined cost management, and investment income, we achieved non-GAAP net profit of RMB 189 million.

Speaker #7: This represented 78.2% year-over-year growth and a 12% sequential increase. Before the first half of 2025, non-GAAP net income totaled RMB 358 million, a 33.9% year-over-year increase.

Speaker #7: More importantly, management is very encouraged by the structural improvements in our operations this quarter. We achieved substantial growth in revenues related to investment products, with a 92% year-over-year increase and a 30.6% sequential rise in that category.

Speaker #7: Driven by clients' more uplifting investment sentiment, it also attributed to a wider selection of quality investment solutions that we would provide to our clients both onshore and offshore.

Speaker #7: In terms of transaction values, RMB-denominated products recorded a 35.0% year-over-year growth and an 8.3% sequential increase. While USD-denominated products grew 5.2% year-over-year and 3.8% sequentially.

Grant Peng: In terms of transaction values, RMB denominated products recorded a 35.0% year-over-year growth and an 8.3% sequential increase, while USD denominated products grew 5.2% year-over-year and 3.8% sequentially. As a result, our total transaction values reached RMB 17 billion, reflecting a 17.7% year-over-year increase and a 5.4% sequential rise. For the first half, commissions from investment products grew by 95.9% year-over-year, with transaction values for RMB denominated private secondary products stood out, growing by 185.3% year-over-year to RMB 6.1 billion. Similarly, USD private secondary products, excluding cash management products, grew by an impressive 282.20% year-over-year to USD 424 million, despite volatility in US equity markets. So, in this context, one-time commissions contributed RMB 155 million in the second quarter, marking a 14% year-over-year increase. Recurring service fees and performance-based income remained steady at RMB 406 million and RMB 23 million, respectively.

Speaker #7: As a result, our total transaction values reached RMB 17 billion, reflecting a 17.7% year-over-year increase and a 5.4% sequential rise. For the first half, commissions from investment products grew by 95.9% year-over-year, with transaction values for RMB-denominated private secondary products standing out.

Speaker #7: Growing by 185.3% year-over-year to RMB 6.1 billion. Similarly, U.S. dollar private secondary products, excluding cash management products, grew by an impressive 282.20% year-over-year to $424 million, despite volatility in U.S. equity markets.

Speaker #7: So, in this context, one-time commissions contributed RMB 155 million in the second quarter, marking a 14% year-over-year increase. Recurring service fees and performance-based income remained steady at RMB 460 million and RMB 23 million, respectively.

Speaker #7: Total net revenue reached RMB 630 million for the quarter, reflecting a 2.2% year-over-year increase and a 2.4% sequential growth. Breaking revenue down by region, overseas net revenues continued to drive growth, recording RMB 601 million in the first half of 2025.

Grant Peng: Total net revenue reached RMB 630 million for the quarter, reflecting a 2.2% year-over-year increase and a 2.4% sequential growth. Breaking revenue down by region, overseas net revenues continue to drive growth, recording RMB 601 million in the first half of 2025. Not only did it account for 48.3% of total net revenues in the first half of the year, but over 85% of newly generated revenue that was originated from offshore products. In the meantime, we continue to stay conscious of costs and expenses. Total operating costs and expenses for the first half were RMB 897 million, down 11.2% year-over-year. Key reductions were achieved in managing a more optimal headcount structure while maintaining investments in growth areas. Total OPEX, excluding total compensation and benefits, declined by 9.3% year-over-year.

Speaker #7: Not only did it account for 48.3% of total net revenues in the first half of the year, but over 85% of newly generated revenue originated from offshore products.

Speaker #7: In the meantime, we continue to stay conscious of costs and expenses. Total operating costs and expenses for the first half were RMB 897 million.

Speaker #7: Down 11.2% year-over-year. Key reductions were achieved in managing a more optimal headcount structure while maintaining investments in growth areas. Total OPEX, excluding total compensation and benefits, declined by 9.3% year-over-year.

Speaker #7: This efficiency enabled us to achieve an operating profit of RMB 347 million for the first half, up 35.8% year-over-year, with an operating profit margin of 27.9%.

Grant Peng: This efficiency enabled us to achieve an operating profit of RMB 347 million for the first half, up 35.8% year-over-year, with an operating profit margin of 27.9% compared to 20.2% in the same period last year. For the second quarter, operating profit was RMB 161 million, with an operating margin of 25.6%. Net income for the first half was RMB 322 million, representing a 39.4% year-over-year increase, despite the booking of about RMB 40 million in withholding taxes related to dividends distributed during this period. As of June 30, 2025, total AUM stood at RMB 145.1 billion, reflecting some pressure from redemptions of RMB denominated products. However, USD denominated AUM grew by 7.4% year-over-year to USD 5.8 billion, while USD denominated AUA increased by 6.6% year-over-year to USD 9.1 billion, demonstrating our ability to continue to capture share of planned USD investment allocations.

Speaker #7: Compared to 20.2% in the same period last year, for the second quarter, operating profits were RMB 161 million, with an operating margin of 25.6%. Net income for the first half was RMB 322 million, representing a 39.4% year-over-year increase.

Speaker #7: Despite the booking of about RMB 40 million in withholding taxes related to dividends distributed during this period, as of June 30, 2025, total AUM stood at RMB 145.1 billion, reflecting some pressure from redemptions of RMB-denominated products.

Speaker #7: However, US dollar denominated AUM grew by 7.4% year-over-year to US dollar 5.8 billion. While US dollar denominated AUA increased by 6.6% year-over-year to US dollar 9.1 billion.

Speaker #7: Demonstrating our ability to continue to capture share of clients' U.S. dollar investment allocations. At the end of the second quarter, our overseas new client base continued to grow, with the number of overseas registered clients increasing by 13% year-over-year and 4.2% sequentially.

Grant Peng: At the end of the second quarter, our overseas new client base continued to grow, with the number of overseas registered clients increasing by 13% year-over-year and 4.2% sequentially. The total number of overseas diamond and black heart clients now exceeds 1,640. Overseas active clients reached 3,650, up 12.5% year-over-year and 7.9% sequentially. Notably, we saw meaningful growth in our new golden clients that are qualified investors or qualified professional investors by definition, increased by 627% within the first six months of this year. Although it takes time for brand new clients to mature into the core client group, namely black and diamond clients, we're very confident that with a continuous global expanding mindset, the company is steadily gaining new market share worldwide. Our balance sheet remains sound. As of June 30, 2025, combined cash and short-term investments totaled RMB 5.4 billion, and we continue to carry zero interest-bearing liabilities.

Speaker #7: The total number of overseas diamond and black card clients now exceeds 1,640. Overseas active clients reached 3,650, up 12.5% year-over-year and 7.9% sequentially. Notably, we saw meaningful growth in our new golden clients, which are qualified investors, or qualified professional investors by definition.

Speaker #7: Increased by 627% within the first six months of this year. Although it takes time for brand new clients to mature into the core client group, namely Black and Diamond clients, we're very confident that with the continuous global expanding mindset, the company is steadily gaining new market share worldwide.

Speaker #7: Our balance sheet remains sound. As of June 30, 2025, combined cash and short-term investments totaled RMB 5.4 billion. We continue to carry zero interest-bearing liabilities.

Speaker #7: Additionally, net investment gains for the quarter exceeded RMB 60 million, reflecting the realization of potentials from our past strategic investments. In closing, the second quarter of 2025 represents a meaningful step forward for our business in the right direction, marking an important milestone of restructuring efforts and confirming that enhancing shareholder returns remains our priority.

Grant Peng: Additionally, net investment gains for the quarter exceeded RMB 60 million, reflecting the realization of potentials from our past strategic investors. In closing, the second quarter of 2025 represents a meaningful step forward for our business in the right direction, marking an important milestone of restructuring efforts and confirming the positive impact. Enhancing shareholder returns remains our priority, and I'm pleased to share that we have returned over RMB 1.8 billion cumulatively to shareholders through dividend payments, share buybacks for the past three years, and the board and management are committed to disciplined capital distributions to our shareholders in the long run. Moreover, with a book value per ADR of USD 18.35 per share, we believe that the current share price still remains undervalued, offering shareholders an attractive opportunity. Looking ahead, we remain focused on enhancing shareholder value, driving sustainable growth, and achieving long-term success.

Speaker #7: And I'm pleased to share that we have returned over RMB 1.8 billion cumulatively to shareholders through dividend payments and share buybacks over the past three years.

Speaker #7: And the board and management is committed to disciplined capital distributions to our shareholders in the long run. Moreover, with the book value per ADR of US dollar 18 point 35 dollars per share, we believe that the current share price still remains undervalued.

Speaker #7: Offering shareholders an attractive opportunity. Looking ahead, we remain focused on enhancing shareholder value, driving sustainable growth, and achieving long-term success. Thank you, shareholders, for your trust and support.

Grant Peng: Thank you, shareholders, for your trust and support. We'll now open the floor for questions.

Speaker #7: We'll now open the floor for questions.

Speaker #3: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touchtone phone.

Speaker 8: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speaker phone, 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 two. At this time, we will pause for a moment to assemble our roster. Our first question today will come from Helen Li of UBS. Please go ahead.

Speaker #3: 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 two.

Speaker #3: At this time, we will pause for a moment to assemble our roster. Our first question today will come from Helen Lee of UBS. Please go ahead.

Speaker #8: 感谢管理层给我这个提问的机会。我是UBS Helen。首先是恭喜二季度取得亮眼的业绩, 然后我这边有两个问题。第一个问题是有关咱们刚才提到的这个稳定币的一个基金, 就是能不能就是在给我们分享更多就比如说推出这个稳定币基金背后的一些考量, 然后这个稳定币基金它的一个管理费大概是一个什么情况, 然后客户对这部分这种基金的一个购买的一个意愿情况, 然后除了这个稳定币基金以外, 咱们以后在加密货币基金方面还有一些什么样的一些战略的一个布局的一个计划, 这个是我的第一个问题。然后我的第二个问题是, 因为我们其实看到二季度客户的对投资类产品的需求恢复得非常快, 那目前咱们从内部就是向客户推荐产品的一个house view的角度, 就目前是推荐他们配置一些什么样的产品, 然后其次就是客户现在就是对于这些风险产品的一些偏好怎么样, 就尤其是比如说像对境内和境外的这样一些投资类产品, 他们现在是一个什么样的偏好, 然后另外的话就是您是否觉得这部分非常强劲的增长会持续到今年的三季度和四季度。 Let me translate my question. This is Helen from UBS.

Helen Li: 感谢管理层给我这个提问的机会。我是UBS的Helen, 首先是恭喜二季度取得亮眼的业绩。然后我这边有两个问题, 第一个问题是有关咱们刚才提到的这个稳定币的一个基金, 就是能不能就是在给我们分享更多, 就比如说推出这个稳定币基金背后的一些考量, 然后这个稳定币基金它的一个管理费大概是一个什么情况, 然后客户对这部分嗯这种基金的一个呃购买的一个意愿情况。然后除了这个稳定币基金以外, 咱们以后在加密货币基金方面还有一些什么样的一些战略的一个布局的一个计划, 这个是我的第一个问题。然后我的第二个问题是因为我们其实看到二季度客户的对投资类产品的需求恢复得非常快, 那目前咱们从内部就是向客户推荐产品的一个how to的角度, 就目前是推荐他们配置一些什么样的产品啊, 然后其次就是客户现在就是对于这些风险产品的一些偏好怎么样, 就尤其是比如说像对境内和境外的这样一些投资类产品, 他们现在是一个什么样的偏好。然后另外的话就是您是否觉得啊这部分非常强劲的增长会持续到今年的三季度和四季度。

Doreen Chu: let me let me translate my question. this is Helen from UBS. I've got two questions. The first is could you please provide more details on the private credit digital yield fund, including the strategic considerations behind the smooth the management fee structure and client interest in such products? Additionally, are there any other plans in the cryptocurrency field besides the stablecoin yield fund? my second question is what was the CIO how to regarding client asset allocation? How would you describe the current client investment appetite, particularly the demand for offshore products compared to onshore products? Do you anticipate a strong growth momentum in investment product distribution to continue into the third and fourth quarters? Thank you.

Speaker #8: I've got two questions. The first is, could you please provide more details on the private credit digital yield fund, including the strategic considerations behind this move?

Speaker #8: The maintenance fee structure and client interest in such products. Additionally, are there any other plans in the cryptocurrency field besides the stablecoin yield fund?

Speaker #8: My second question is, what's the CIO house view regarding client asset allocation? How would you describe the current client investment appetite, particularly the demand for offshore products compared to onshore products?

Speaker #8: Do you anticipate strong growth momentum in investment product distribution to continue into the third and fourth quarters? Thank you.

Speaker #7: 好, 那个谢谢提问。我就稍微回应一下, 就稳定币呢, 我们这个产品的话也是首次跟Coinbase的一个合作。其实推出这类的产品, 嗯, 首先还是在根据CIO house view的CIO报告的一个观点。我们认为在未来的, 啊, 那个, 呃, 整个的那个投资领域, 啊, 呃, 数字资产, 啊, 数字货币, 啊, 现在, 啊, 从过去的, 啊, 可能大家都在关注, 啊, 观望到现在的话开始进入参与, 啊, 越来越成为一个未来的可能一个, 啊, 那个重要的一个比重, 啊, 我们也看到各个主流的, 啊, 那个机构投资者都已经把数字货币作为了一个资产配置当中的一部分。啊, 所以说基于这个观点, 我们在去年到今年的CIO报告, 啊, 那个上面其实持续的在跟客户讲, 啊, 就把数字货币的这一类资产的话要纳入组合当中一部分。这也是我们, 啊, 推出, 啊, 那个稳定币产品的一个背景。那么当我们因为是帮客户做财富管理嘛, 啊, 所以说还是要秉承稳健, 啊, 和, 啊, 合规, 啊, 这是非常重要。所以说我们为什么选择Coinbase的合作, 其实也有这方面的一个考虑。那么这次推出了稳定币市场, 也是我们进入数字货币市场的第一次, 呃, 第一个那个, 呃, 第一步的一个迈进, 嗯, 我们的收费的话也是跟我们的传统, 啊, 那个投资类产品的收费保持一致的水平, 啊, 并没有特别的高, 也没有特别低。啊, 所以这样方式的话, 我们也认为是一个给客户一个长期配置的一个可持续的一个方式吧。嗯, 导师, 要不你先对第一个问题做一个translate。

Sandar Yin: 好, 那个谢谢提问啊, 我就稍微回应一下啊, 就稳定币呢, 我们这个产品的话也是首次跟Coinbase的一个合作啊, 其实推出这类的产品嗯首先还是在根据CIO how to view的就我们CIO报告的一个观点, 我们认为在未来的啊那个呃整个的那个投资领域啊呃数字资产啊数字货币啊现在啊从过去的啊可能大家都在关注啊观望, 到现在的话开始进入参与啊越来越成为一个未来的可能一个啊那个重要的一个比重啊, 我们也看到各个主流的啊那个机构投资者都已经把数字货币作为了一个资产配置当中的一部分啊, 所以说基于这个观点我们在去年到今年的CL报告啊那个上面其实持续的在跟客户讲啊就把数字货币的这一类资产的话要纳入组合当中的一部分, 这也是我们啊推出啊那个稳定币产品的一个背景。那么当我们因为是帮客户做财富管理嘛, 所以说还是要秉承稳健啊和啊合规啊, 这是非常重要。所以说我们为什么选择Coinbase的合作其实也有这方面的一个考虑。那么这次推出的稳定币市场也是我们进入数字货币市场的第一次呃第一个那个呃第一步的一个迈进。嗯我们的收费的话也是跟我们的传统啊那个投资类产品的收费保持一致的水平啊, 并没有特别的高, 也没有特别低啊。所以这样方式的话我们也认为是一个可给客户一个长期配置的一个可持续的一个方式吧。嗯Doreen, 要不你先对第一个问题说一个。

Speaker #6: Sure. thank you, Sander. So this is, it's our the first core operation, in the market to launch this stable, coin yield fund. And as we mentioned in our CIO report, indeed, from last year to this year, in our CIO report, we have been emphasizing the importance of it to, for our clients to distribute their assets in stablecoin, this new, asset class for two years now.

Doreen Chu: Sure, thank you, Sander. So this is it's our the first cooperation in the market to launch this stable coin stablecoin yield fund. And as we mentioned in our CIO report, indeed from last year to this year in our CIO report, we have been emphasizing the importance to for our clients to distribute their assets in stablecoin this new asset class for two years now. And that's why we have been proud to announce that we've been partnered with Coinbase to launch our first fund. And having done that, we still emphasize that the prudency that we needed to maintain being a wealth management company. And that's why the partner we've chosen this time is Coinbase. And then in terms of the in terms of the free structure, we would just say it's the same as any other investment products we have been distributing to our clients.

Speaker #6: And that's why we have been proud to announce that we've partnered with Coinbase to launch our first fund. Having said that, we still emphasize the prudence that we need to maintain as a wealth management company.

Speaker #6: And that's why, the partner we chose at this time is Coinbase. And then, in terms of the, in terms of the fee structure, we would just say it's the same as any other investment product.

Speaker #6: We have been distributing to our clients. That's a number special between the different types of products.

Doreen Chu: that's not much special between the different types of products.

Speaker #5: 关于投资类的产品呢, 确实我们感觉从去年, 啊, 那个从去年年底, 啊, 到, 呃, 今年的一季度、二季度, 其实, 呃, 客户的投资热情的话也越来越高涨。我觉得一方面的话也是, 呃, 呃, 因为经历过, 呃, 前段时间, 啊, 在从, 呃, 2022年到现, 呃, 一段时间的大家对于市场的, 啊, 那个地缘政治, 啊, 冲突之间的一个非常的不适应, 啊, 大家的话就又开始有保守。然后逐渐逐渐的在适应过程当中的话, 啊, 毕竟来说财富是一个长期的, 啊, 它需要那个去投资和配置的一个那个工具嘛, 不可能一直是那个只是一味的这个防守。啊, 所以说, 呃, 经历一段时间以后的话, 客户也在不断的适应这个市场。同时的话, 他在, 呃, 资产投资上面的话就开始, 啊, 那个越来越, 呃, 就是表现出一个非常强的一个需求。这个不仅仅是在国内, 啊, 境内, 其实在境外同样也是如此。啊, 一方面的话, 我们在境内的话大家可以看到二级市场, 啊, 那个表现是比较好的。当然我们也一直关注二级市场的一个风险, 因为确实国内的二级市场的, 啊, 资金推动的, 啊, 情况还是比较明显的, 啊, 确实在国内, 啊, 那个今年二级市场也比较表现比较亮丽。但是更重要的, 我们也是让客户做组合, 组合投资和配置, 啊, 始终是考虑到, 啊, 那个长期, 啊, 这个稳健的一个那个解决方案。那么在境外的话, 客户的选择余地就比较多了, 因为我们很多中国的华人客户在海外是有, 啊, 那个, 呃, 相当体量的, 啊, 资产的一个规模的。他们在海外的话其实也没有获得很好的一个投资的一个服务。由于他们本身个, 呃, 呃, 国别的背景, 对吧, 就是文化习惯。所以说在海外的话, 私人银行也没有很好的服务他们。他们再加上, 呃, 对于产品的信息差, 其实是相比于国内的话, 其实是更大的。啊, 所以说借助我们, 啊, 呃, 跟就是这些全球一流的资产管理公司的, 啊, 那个关系的话, 我们就很好的, 呃, 让客户指导到, 啊, 海外的投资通过哪些资产的类别配置的话可以获得一个比较好的一个切入点。那么在给客户配置的过程当中, 我们还是遵循我们的那个, 呃, 金字塔三角, 三角形的一个理论, 啊, 就是安全垫, 啊, 那个基本盘和增长点, 啊, 所以说是一个比较均衡的一个给客户的一个全面的一个解决方案。那么在今年, 呃, 我们刚推出的CIO报告当中, 也特别提出来我们叫主题叫双资产平衡和三支柱的配置。那么双资产的时候就是我们注意到, 啊, 传统的投资的话是以那个通缩的, 啊, 那个抵抗通胀的, 但是很重要的在当下的时机的话就是, 就是要注意那个这种技术, 啊, 科技通缩型的类型的资产, 啊, 比如说是AI, 啊, 比如说是那个数字货币, 啊, 等等这些。所以说这也是我们, 啊, 给客户, 啊, 推那个, 啊, 推荐那个一些各种各样的AI的组合, 啊, 啊, 稳定币组合的一些那个, 那个策略, 啊, 所以说在这个过程当中的话, 客户我觉得也是越来越接受我们, 啊, 全方位配置的一个理念吧。那么我觉得, 呃, 客户的需求它是首先第一个是持续的, 过去的话因为压抑了比较长的时间, 啊, 未来的话应该这一块的话随着我们的能力的在海外, 啊, 那个能力的提, 呃, 建设越来越好的话, 相信可以服务到更多客户的这方面的需求。

Sandar Yin: 啊呃关于投资类的产品呢, 确实我们感觉从去年啊那个从去年年底啊到呃今年的一季度二季度, 其实呃客户的投资热情的话也越来越高涨。我觉得一方面的话也是呃呃因为经历过呃前段时间啊在从呃20年22年到现呃一段时间的大家对于市场的啊那个地缘政治啊冲突之间的一个呃非常的不适应啊, 大家的话就开始有保守, 然后逐渐逐渐的在适应过程当中的话啊毕竟来说财富是一个长期的啊他需要那个去投资和配置的一个那个工具吧, 不可能一直是那个只是一味的那个防守啊。所以说呃经历一段时间以后的话, 客户也在不断的适应这个市场, 同时的话他在呃资产投资上面的话就开始啊那个越来越呃就是表现出一个非常强的一个需求, 这个不仅仅是在国内啊境内, 其实在境外同样也是如此啊。一方面的话我们在境内的话, 大家可以看到二级市场啊那个表现是比较好的, 当然我们也一直关注二级市场的一个风险, 因为确实国内的二级市场的啊资金推动的嗯情况还是比较明显的啊, 确实在国内的啊那个今年二级市场也表表现比较亮丽。但是更重要的我们也是让客户做组合组合投资和配置啊, 始终是考虑到啊那个长期啊这个稳健的一个那个解决方案。那么在境外的话, 客户的选择余地就比较多了, 因为我们很多中国的华人客户在海外是有啊那个呃相当体量的啊资产的一个规模的, 他们在海外的话其实也没有获得很好的一个投资的一个服务, 由于他们本身各呃各个别的背景对吧, 就是文化习惯。所以说在海外的话, 私人银行也没有很好的服务他们, 他们再加上呃对于产品的信息差其实是相比于国内的话其实是更大的啊。所以说借助我们啊呃跟就是这些全球一流的资产管理公司的啊那个关系的话, 我们就很好的呃让客户知道到啊海外的投资通过哪哪些资产的类别配置的话可以获得一个比较好的一个切入点。那么在给客户配置的过程当中, 我们还是遵循我们的那个呃金字塔三角三角形的一个理论啊, 就是安全垫啊那个基本盘和增长点啊, 所以说是一个比较均衡的一个给客户的一个全面的一个解决方案。那么在今年呃我们刚推出的CL报告当中也特别提出来, 我们叫主题叫双资产平衡和三支柱的配置。那么双资产的时候就是我们注意到啊传统的投资的话是以那个通缩的啊, 那个通抵抗通胀的。但是很重要的在当下的时期的话, 就是就是要注意那个这种技术啊科技通缩型的类型的资产啊, 比如说是AI啊, 比如说是那个数字货币啊等等。所以说这也是我们啊给客户啊推那个啊推荐那个一些各种各样的AI的组合啊啊稳定币组合的一些那个那个策略啊。所以说在这个过程当中的话,

Sandar Yin: 客户我觉得也是越来越接受我们啊全全方位配置的一个理念吧。那么我觉得呃客户的需求, 他是首先第一个是持续的。过去的话因为压抑了比较长的时间啊, 未来的话应该这一块的话, 随着我们的能力的在海外啊那个能力的提呃建设越来越好的话, 相信可以服务到更多客户的这方面的需求。

Doreen Chu: Regarding your questions about the investment products that clients may have a high interest, so what we've seen is we have seen in the first two quarters this year, we saw that clients are having more interest in deploying the asset and wealth into investment products. The reason behind that, we believe that in the previous years during the 2020 to 2022, because of the geopolitical situation and other noises in the market, investors become more cautious, but that they have also learned as well. So after a few years of learning and adapting to the current environment, we believe that the clients are now more confident and clear about what they should buy and and they still need to deploy the asset because after all, wealth management should be a long-term planning instead of just a very defensive investment or a very short-term investment.

Doreen Chu: So when clients' incentive is going upward, domestically mainly driven also by the Asia market, but being a very prudent organization, we have been also observing the secondary markets in China, if it's overheat in in in the moment because of it's been driven by money flows obviously. And then, however, overseas we've seen more options and particularly we have seen the opportunity among the overseas Chinese because they got wealth in the overseas market, but they may not get as good service as they could have in the domestic market and particularly they may lack of information in different investment products. So what Noah's been doing, we partner with all these prominent GPs in globally, and that we've been trying to provide more information to our clients when they were trying to deploy the asset.

Doreen Chu: And as we've emphasized in our CIO report, it's always about the balance between growth, return, and the risks, and we will always follow our principle as list out in CIO report. That is the investment triangle that we try to use the different assets to balance risk and return. And particularly the new theme that we have introduced this round in CIO report is a deficient caused by technology, and that we believe that that's the major reason why we have been advising our clients to invest in AI or coin-based related investment products.

Wang Jingbo: 我补充两点吧, 一点就是在加密货币世界哈, 还是呃风险很大的, 所以呃合规可能成为一个最主要的这个关键词吧。所以我们的呃作为传统金融的一个财富管理者, 我们坚持的就是合规和创新, 就两个点。所以我们这次是跟Circle跟Coinbase合作的一个私募基金, 那我们认为也符合我们刚才谈到的CIO报告的一个呃策略, 就是我们希望我们传统的这些财富管理的客户可能有1%到3%到5%的资产可以配置在加密世界。那诺亚呢, 希望成为一个合规的桥梁, 那我们选择的这个合规的至少是目前哈在全球都公认的一个两个合规的公司, 那我觉得这个对我们来讲和我们的客户来讲都是非常重要的。那诺亚希望成为这个桥梁。我们也不仅仅是对一个产品, 我们接下来规划了一系列的产品, 会呃随着这个呃客户对于这个资产类别的熟悉程度逐步的退出。

Doreen Chu: So from our chair lady, she emphasized that coin-based in this world, we must emphasize that the risk could still be very high, and that's why being a responsible wealth management company, we've been emphasizing in compliance while we are looking at innovation. So this round we've chosen the partner which have been worldly agreed on their compliance standard. And as I mentioned in CIO report, we have been suggesting our clients to invest around 1 to 5% of their asset total to be in the coin-based related product. And most importantly, we believe that Noah could be the bridge to provide compliant products in this area. And last but not least, not only this one product that we launched that I just mentioned, going forward we will continue to study and going to launch more related products depends on our client's needs.

Doreen Chu: we believe that by time they will learn more about this asset class and they should have more demand in this area.

Doreen Chu: Helen do we answer your question?

Wang Jingbo: 非常清楚, 谢谢。

Doreen Chu: 好, 谢谢Helen, 那我们下一个问题吧。 Next question, please.

Sandar Yin: Our next question today will come from Peter Zhao of JP Morgan. Please go ahead.

Sandar Yin: 感谢管理层给我提问的机会, 我是摩根大通的Peter。首先也恭喜诺亚取得了非常亮眼的业绩。那我这边有两个问题, 第一个问题我还是想请教一下, 就是我们三季度看到的趋势是怎么样? 因为大我们也观察到最近呃几周国内的投资情绪也非常旺盛, 我们想了解在诺亚的平台上投资者的呃投资热情, 还有我们理财产品的销售在三季度的趋势如何和二季度对比是一个怎么样的情况。然后我第二个问题想问一下, 就是我们海外扩张, 呃管理层在呃业绩会上也提到, 就是我们对于美国、日本、加拿大都有一定的扩张计划。我想请教一下我们现在的进展如何, 展望下半年和明年, 呃有呃在这些地区有没有什么呃就是进展呃我们可以去期待? 那呃管理层觉得就是这些地区在呃未来呃何时可以给我们贡献更加呃呃meaningful的客户的增长和收入的贡献。另外我也想请教, 当我们呃有这样的海外扩张的计划时, 对我们的运营成本的呃呃未来的呃未来未来的趋势如何展望? 那我做一下翻译。 Thanks for giving me the questions, giving me the opportunity to ask the questions. This is Peter from JP Morgan. I have two questions. First is, we wish to understand what's the third quarter operating trend for NOAA. We have seen there's a strong pickup in domestic investment sentiment lately. We wish to understand what NOAA has observed about the investment sentiment on your platform and the Wasman product transaction volume trend in third quarter quarter to date, and how does this compare to the second quarter? My second question is about the overseas expansion. We noticed that management has mentioned the plan to expand into the US, Canada, and Japan.

Sandar Yin: We wish to understand how the progress so far and what to expect in the second half of this year and the next year. And when do you expect this new market can meaningfully contribute to your current growth and revenues? And we also wish to understand how this overseas expansion plan will have an impact on our operating expense trend going forward. Thank you.

Sandar Yin: 好, 谢谢Peter。我先回答第一个问题, 就关于那个客户的投资情绪和呃三季度的一个趋势。啊, 嗯, 就刚才呃前面Helen的问题的话, 我稍微回答了一下。嗯, 再做一个补充吧。嗯, 就是嗯, 我们确实感受到呃二季度、一季度、二季度, 包括到现在, 我们的客户对于在客户跟客户的沟通, 啊, 包括我们在各个地区, 啊, 跟客户的接触, 办一些小的啊沙龙啊讲座啊或者是大的活动, 啊, 那个客户对于投资类的产品的呃那个饥渴程度或者是他好学的程度是非常非常强盛的。嗯, 那过去的话可能他确实注重在保障上面, 那最近的话确实客户对于各种类型的产品都有非常表现出非常强烈的那个好奇心。啊, 我觉得一方面的话跟这个市场有关系, 啊, 但是也也有另外一个就是因为美元利率的话, 其实也有这个进入一个降息通道的预期嘛。啊, 所以说客户的话还是觉得啊你一直放在稳健的在那个低风险的产呃那个收益的也不足。啊, 所以说他还是希望能够有更多的能够呃投资的一个方向。那么同时的话呢, 也源于我们在美国产品中心, 啊, 不是海外产品中心的那个建设, 我们在产品矩阵上面的话变得越来越丰富。很多客户说哦, 他那个也这两年明显看到啊诺亚在海外产品的布局上面的话越来越丰富, 不仅仅是一级市场产品。在二级市场产品上面, 啊, 我们在海外的比如说一些平台型的对冲基金, 啊, 那个呃他的表现相对来说是比较稳健, 都那那个货货价的话越来越那个丰富。所以说让客户的话可以变得一个有选择的啊那个可以去了解的一个基础吧。那么在国内呢, 嗯, 虽然说市场的话那个还是很热, 啊, 那个但是呢, 我们也是非常注重客户的啊最后的收益水平, 并不是说啊客户那个市场情绪高涨就是呃呃那个顺势让客户的话拼命的那个啊投投资。而而在这个时候反而是我们不断的提示客户, 你看我们去去那个去年让让客户的话那个加大了配置, 那今年的话在过程当中是持续的是要去平衡。这个平衡的话一方面是仓位的平衡, 还有一个呢很重要是策略之间的一个平衡。啊, 就不是说那个一味的的市场什么热啊就进什么。我觉得这个其实财富管理的一个大忌, 最重要的还是让客户能够啊通过一些啊策略的组合啊进入一个啊获得一个比较长期稳健的回报。我觉得这才是财富管理最重要的地方。所以说我们也把我们的客户的收益情况啊那个盈利盈利情况作为一个我们非常重要的一个关注点。我觉得这个才是长期财富管理能够持续的一个核心吧。从总的来说的话, 市场有点有有有有支持, 但更重要的我们还是要保持一个比较啊理性的头脑, 让客户的话做持续的教育, 让客户看到各种各样策略的不同性啊, 然后做一个比较均衡的组合配置。这才是我们对客户的一个服务指导。

Doreen Chu: So Peter, regarding your question about the investment sentiment, moving forward to the fourth quarter, and yes, we have to say that during different clients, different events that we've been organizing when we met with clients, we have seen strong interest from them. And unlike in the previous period, they would be more prudent and prefer lower risk return or lower risk products. We have seen that because of the Asian market and also because of the US interest rate environment, they are now showing more interest in investing in different types of investment products. And also, when we talk to clients, one of the reflections that we've been collecting is that we've been able to provide more and more diversified products with different GPs.

Doreen Chu: And that's because we have set up the product center in the USA, and that we've been able to contact and have connection with more reputable GPs from globally. And that's why we've been able to provide a better product matrix to our clients. However, we must emphasize that being a wealth management company or what the core of wealth management should be long-term return. So it's not about any short-term environment changes or clients' feelings about the market or any sentiment driven investment. So in me internally, we emphasize on long-term return instead of just selling products according to market sentiment.

Wang Jingbo: 好, 那我分享一下我们的全球战略。我觉得经过三年的这个运行吧, 就是可以说是出海吧, 我觉得我们海外战略是非常清楚了。前三年的阶段呢, 我们完成了这个全球的产品矩阵的建设, 这个产品的丰富度我想是一个财富管理机构非常非常重要的一个点。那下一个阶段呢, 就是我们的定位。我觉得在全球过程中的话, 国际的财富管理私人银行品牌很多, 但是在多个司法地区统一为华人提供财富管理的品牌是没有的。那我觉得这个是诺亚最重要的定位, 就是服务全球华人。我们在国内可能有14亿华人, 在海外有6,000万华人, 我们可以为他们服务。我们跟他们是比较明确的这个, 嗯, 就是也有相同的文化, 也有一些信任的壁垒。我觉得这个客户的基础是非常明确的, 比如说在新加坡, 在日本, 在加拿大, 我们都已经呃有很多诺亚的客户可能迁徙出去了。第二就是在我们在当地跟他们互动的过程中是有深度信任的。那我们接下来的话, 我们也已经开始就是能够为他们提供服务。那我们的运营模式也比较清晰了, 我们在呃香港、新加坡, 呃在美国我们是Booking Center, 我们这个嗯会为他们就是可以开户, 然后他们可以在我们这儿呃来直接接受财富管理的服务。那在不是Booking Center的地方, 比如说日本、加拿大、澳洲, 那么我们就是Olive的资产管理, 然后他们我们可以通过除了服务当地的华人的作为LP以外, 我们通过当地的一些可以覆盖华人的IFA来出达他们, 然后也会有一些机构客户。那在这个点上我们也在也越来越清晰的过程中了吧。我觉得在下一个五年我们是呃就是在全球华人客群中建立新制, 而我们的这个资产管理的增长飞轮的话, 呃我们现目前看来还是非常有信心的, 市场容量、客户基础都很大, 而且我们跟他们有天然的这种连接。

Doreen Chu: So about our global strategy, and I mentioned by channel ID, we have been developing our overseas market over the last three years. And what we've been achieving must be the product matrix. And being a wealth management company, this is one of the very important criteria that we have already achieved. So next steps, we will say it's more about branding. When we talked about branding, what we've seen is that we serve Chinese globally, but that currently we don't see much of other organizations being able to serve Chinese across different legal jurisdictions. And that we believe is going to be our very committed target going forward. And in terms of the strategic planning, so we have three booking centers in the US, Hong Kong, and Singapore. And also for the non-booking center, such as Japan, Canada, that we have already mentioned previously.

Doreen Chu: It's going to be the asset management for the clients using the oldest plan. So we believe that Noah's strength is we have trust with our clients. And with this trust, we have seen that some of our clients from domestic markets are already moving to overseas markets. And that should be our strong client base when we're developing our overseas market.

Doreen Chu: Okay, so I'll take the third question on OPEX, Peter. So we basically have a reaching stage of a rather comfortable structure in terms of frontline and mid-back office. I think we're pretty much after a couple of years transition period, we're actually pretty comfortable with the mixed frontline and mid-back office. Secondly, also the balance between fixed salary and also variable costs, both onshore and offshore. We probably are looking to maintain that structure, but obviously not excluding some short-term spikes when we, as Chair Lady and CEO Dender mentioned, with international expansion, we probably get on new talents in new markets or new business segments. But I think overall, the big picture, comp and benefits-wise, we're pretty comfortable. In terms of selling and marketing expenses, obviously we have seasonality. We typically are a little bit slower after spring festival than summer vacation.

Doreen Chu: But we have traditionally busier schedules coming up in the third quarter, obviously towards the end of the year as well. But I think on the annual basis, I'm also pretty comfortable in terms of maintaining a similar range of operating margin. Peter, does that answer your question?

Sandar Yin: That's very clear. Thank you.

Doreen Chu: Thanks.

Sandar Yin: And again, if you would like to ask a question, please press star and then one. The next question will come from Xian Zhongjun of CICC. Please go ahead.

Grant Peng: 哦, 管理层好, 我是中金公司的沈仲恩, 感谢公司给我提问的机会, 也恭喜公司取得优秀的业绩。那么我想提两个问题, 第一个是看到公司的这个其他营业费用同比有大幅下降, 超过80%, 和联名公司损益有提升到4,700多万, 这两项对净利润的影响还是比较明显的。呃, 这其中的原因是什么, 然后未来的趋势是什么呢? 第二个问题是, 啊, 看到目前公司账上现金还是比较多的, 啊, 想问一下有没有分红派息的计划? I'll translate my question. I have two questions. the first one is, are there operating expenses decreased over 80% year over year, and income from equity in affiliates increases to over 47 million? These changes affect the net income. Could you please explain the reasons behind and the future change? The second question is, the cash balance remains high at 3.8 billion. So do you have any dividends planned? Thank you.

Doreen Chu: Sure, Ms. Yan. I'll take the question for the two fluctuations. So basically, the overall impact, especially the 47 million, actually comes from some of the strategic investment portions that we have as the co-GP investment in the past. So some of the companies actually became successful listed, though the total market value in the fund actually has a markup. So that quarter actually we have a pretty positive impact. Hopefully, it doesn't reflect in the future. But it seems that from the company's current performance, we're optimistic that we'll maintain a rather strong performance and obviously feedback to our balance sheet and P&L.

Doreen Chu: In terms of dividend scheme, I think the only thing I can say, you know, on behalf of management board, you know, as we have mentioned in the earning release, that we're very committed to returning, you know, some of the obviously operational results to our shareholders. And we have cumulatively distributed a rather large amount, I think probably ranking very, very high in Chinese ADR companies that cumulatively 1.8 billion RMB to our shareholders and obviously another full payout of 2024's net profits. So I believe that in 2025, obviously, I can't say this prematurely, but you know, we're pretty confident that we probably will be returning or distributing our profit operational results to our shareholders on a very similar scale this year, at least in the foreseeable future.

Grant Peng: Thank you. Very clear.

Doreen Chu: Thank you.

Sandar Yin: At this time, we will conclude our question and answer session, and I'd like to turn the conference back over to management for any closing remarks.

Doreen Chu: Okay. Dender, anything to add? Okay.

Sandar Yin: No, thank you very much.

Doreen Chu: Thank you very much, everybody, and hope to hear from you in the subsequent call. Thanks.

Doreen Chu: Thanks, everyone. And please feel free to contact IR team if you have any further questions, and we will be conducting NDR these few weeks. So feel free to reach out if you wanted to talk to any of us. Thank you very much for today.

Sandar Yin: The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines.