Q2 2026 Noah Holdings Ltd Earnings Call

August 26, 2026

Speaker #1: Good day, and welcome to the NOAH HOLDINGS LTD Second Quarter and Half-Year 2026 Earnings Conference Call. All participants will be in listen-only mode.

Operator 2: Good day, and welcome to the Noah Holdings Limited Q2 and H1 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. You may also submit questions via the webcast. Please note, today's event is being recorded. I would now like to turn the conference over to Doreen Chiu with investor relations. Please go ahead.

Operator: Good day, and welcome to the Noah Holdings Limited Q2 and H1 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. You may also submit questions via the webcast. Please note, today's event is being recorded. I would now like to turn the conference over to Doreen Chiu with investor relations. Please go ahead.

Speaker #1: 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.

Speaker #1: To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. You may also submit questions via the webcast.

Speaker #1: Please note, today's event is being recorded. I would now like to turn the conference over to Doreen Chu with Investor Relations. Please go ahead.

Speaker #2: Thank you. Good morning and good evening, everyone. Welcome to NOAH's second quarter 2026 earnings conference call. Joining me on the call today is Ms. NOAH Weng, co-founder and Chairlady.

Doreen Chiu: Thank you. Good morning and good evening, everyone. Welcome to Noah Q2 2026 Earnings Conference Call. Joining me on the call today are Ms. Norah Wang, Co-founder and Chairlady, Mr. Zander Yin, Co-founder, Director and CEO, Mr. Grant Pan, CFO, and Mr. Jason Wu, Deputy CFO. Mr. Yin will begin with an overview of our recent business highlights, followed by Mr. Pan, 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 vary 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 #2: Mr. Sander Yin, Co-Founder, Director, and CEO; Mr. Grant Peng, CFO; and Mr. Jason Wu, Deputy 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.

Speaker #2: 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 #2: That may cause actual results to vary 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 #2: NOAH does not undertake any obligation to update any forward-looking statements, except as required under applicable law. With that, I would like to pass the call over to Mr. Yin.

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

Speaker #2: CEO, please go ahead.

Speaker #3: Hello, this is the operator. Your line is open. Are you perhaps muted?

Operator 2: Hello, this is the operator. Your line is open. Are you perhaps muted?

Operator: Hello, this is the operator. Your line is open. Are you perhaps muted?

Zander Yin: 好，各位投资者、分析师朋友们，大家好。感谢大家参加诺亚控股2026年第二季度的业绩发布会。进入第二季度，诺亚的转型走到了一个新的位置。一季度的业绩会上面我们提到过，一季度更像是诺亚新经营模式开始被验证的一个起点。那么到了第二季度，我认为这个判断已经可以再往前走一步了。旧的模式的收入在有序的一个退出，而我们新的经营模式不仅开始被验证，也开始产生收入、资产增长和利润。尤其是要跟大家分享的是，我们过去一年重点推动的AI财富管理部的新模式，已经在新加坡形成了一个第一个完整的样本。这个季度我们观察到有三个进一步的清晰的事实。第一个是新加坡用了大约10个月的时间跑通了AI财富管理部的新经营模式，并在7月份实现了单月的盈利。第二个是我们上半年业绩报酬净收入人民币2.38亿元。我们多年积累的全球投资能力正在持续转化为利润。第三个是在员工人数同比下降17%的同时，我们美元AUM同比增长11.7%，尤其是海外RM的人数同比下降36%，但是海外资产仍然增长，说明我们正在逐步打破传统财富管理行业增长必须依赖RM人数增长的一个线性的关系。这也是我们今天最希望向市场传递的一个变化。因为AI对诺亚的意义已经不只是提高效率和降低成本，而是在开始改变我们的前台组织方式、客户的服务方式和全球扩张的方式。接下来我从财务表现、中国大陆的业务、国际业务以及下半年的重点工作四个方面跟大家分享。

Zander Yin: [Foreign language]

Speaker #4: 各位投资者、分析师朋友们，大家好。感谢大家参加诺亚控股2026年第二季度的业绩发布会。进入第二季度，诺亚的转型走到了一个新的位置。一季度业绩上面，一季度的业绩会上面，我们提到过一季度更像是诺亚新经营模式开始被验证的一个起点。那么到了第二季度，我们认为这个判断已经可以再往前走一步了。旧的模式的收入在有序的一个退出，而我们新的经营模式不仅开始被验证，也开始产生收入、资产增长和利润。尤其是这次跟大家分享的是，我们过去一年重点推动的AI财富管理部的新模式已经在新加坡形成了一个第一个的完整的样本。这个季度我们观察到有三个进一步的清晰的事实。第一个的话，是新加坡用了大约10个月的时间跑通了AI财富管理部的新经营模式，并在7月份实现了单月的盈利。第二个是我们上半年业绩报酬净收入人民币2.38亿元。我们多年积累的全球投资能力正在持续转化为利润。第三个是在员工人数同比下降17%的同时，我们美元AUM同比增长11.7%。尤其是海外RM的人数同比下降36%，但是海外资产仍然增长，说明我们正在逐步打破传统财富管理行业增长必须依赖RM人数增长的一个线性的关系。这也是我们今天最希望向市场传递的一个变化，因为AI对诺亚的意义已经不只是提高效率和降低成本，而是在开始改变我们的前台组织方式、客户的服务方式和全球扩张的方式。接下来我从财务表现、中国大陆的业务、国际业务以及下半年的重点工作四个方面跟大家分享。

Speaker #2: Good morning, everyone. Thank you for joining NOAH HOLDINGS' second quarter 2026 earnings call. As we enter the second quarter, NOAH's transformation has reached a new stage.

Doreen Chiu: Good morning, everyone. Thank you for joining Noah Holdings Q2 2026 Earnings Call. As we enter the Q2, Noah's transformation reached a new stage. On our Q1 earnings call, we said that Q1 represented the beginning of the validation of Noah's new operating model. After the Q2, I believe we can take that conclusion one step further. Revenues associated with our legacy model are being phased out in an ordinary manner. Our new operating model is not only being validated, but is also beginning to generate that revenue, asset growth, and profit. Most importantly, our AI Wealth Management Department and new AI-enabled front office operating model we have been developing over the past year has now established its first meaningful proof point in Singapore. This quarter, we observed three developments that have become increasingly clear.

[Translator]: Good morning, everyone. Thank you for joining Noah Holdings Q2 2026 Earnings Call. As we enter the Q2, Noah's transformation reached a new stage. On our Q1 earnings call, we said that Q1 represented the beginning of the validation of Noah's new operating model. After the Q2, I believe we can take that conclusion one step further. Revenues associated with our legacy model are being phased out in an ordinary manner. Our new operating model is not only being validated, but is also beginning to generate that revenue, asset growth, and profit. Most importantly, our AI Wealth Management Department and new AI-enabled front office operating model we have been developing over the past year has now established its first meaningful proof point in Singapore. This quarter, we observed three developments that have become increasingly clear.

Speaker #2: On our first quarter earnings call, we said that Q1 represented the beginning of the validation of NOAH's new operating model. After the second quarter, I believe we can take that conclusion one step further.

Speaker #2: Revenues associated with our legacy model are being phased out in an orderly manner. While our new operating model is not only being validated, it's also beginning to generate revenue, asset growth, and profit.

Speaker #2: Most importantly, our AI wealth management department—a new, AI-enabled front office operating model we have been developing over the past year—has now, as established, its first meaningful proof points in Singapore.

Speaker #2: This quarter, we observed three developments that have become increasingly clear. First, Singapore has proved the first meaningful validation of our AI wealth management department model in approximately 10 months, and the business achieved monthly profitability in July.

Doreen Chiu: First, Singapore has proved the first meaningful validation of our AI Wealth Management Department model in approximately 10 months, and the business achieved monthly profitability in July. Second, performance-based income reached CNY 238 million in the H1 of the year, demonstrating how the global investment capabilities we have built over many years are increasingly translating into earnings. Third, while our total employee headcount declined 17% year-over-year, US dollar denominated AUM increased by 11.7%. More importantly, our overseas RM headcount declined by 36.2% year-over-year, while overseas assets continued to grow. This suggests that we are beginning to decouple asset growth from RM headcount growth, a relationship that has historically been highly linear in traditional wealth management. This is also the most important message we would like to communicate to the market today. For Noah, AI is no longer simply about improving efficiency or reducing costs.

[Translator]: First, Singapore has proved the first meaningful validation of our AI Wealth Management Department model in approximately 10 months, and the business achieved monthly profitability in July. Second, performance-based income reached CNY 238 million in the H1 of the year, demonstrating how the global investment capabilities we have built over many years are increasingly translating into earnings. Third, while our total employee headcount declined 17% year-over-year, US dollar denominated AUM increased by 11.7%. More importantly, our overseas RM headcount declined by 36.2% year-over-year, while overseas assets continued to grow. This suggests that we are beginning to decouple asset growth from RM headcount growth, a relationship that has historically been highly linear in traditional wealth management. This is also the most important message we would like to communicate to the market today. For Noah, AI is no longer simply about improving efficiency or reducing costs.

Speaker #2: Second, performance-based income reached RMB 238 million in the first half of the year, demonstrating how the growth in investment capabilities we have built over many years is increasingly translating into earnings.

Speaker #2: Third, while our total employee headcount declined 7% quarter over quarter and 17% year over year, U.S. dollar-denominated AUM increased by 11.7%. More importantly, our overseas RM headcount declined by 36.2% year over year, while overseas assets continued to grow.

Speaker #2: This suggests that we are beginning to decouple asset growth from RM headcount growth, a relationship that has historically been highly linear in traditional wealth management.

Speaker #2: This is also the most important message we would like to communicate to the market today. For NOAH, AI is no longer simply about improving efficiency or reducing costs.

Speaker #2: It is beginning to change how we organize our front office, how we serve clients, and how we expand globally. Today, I will discuss our financial performance, our mainland China business, our international business, and our key priorities for the second half of the year.

Doreen Chiu: It is beginning to change how we organize our front office, how we serve clients, and how we expand globally. Today, I will discuss our financial performance, our Mainland China business, our international business, and our key priorities for the H2 of the year.

[Translator]: It is beginning to change how we organize our front office, how we serve clients, and how we expand globally. Today, I will discuss our financial performance, our Mainland China business, our international business, and our key priorities for the H2 of the year.

Zander Yin: 好，第一个方面是财务表现方面。在第二季度，集团实现净收入人民币6.2亿元，经营利润人民币2.16亿元，同比增长34%，经营利润率34.8%。Non-GAAP归属于诺亚的净利润人民币2.38亿元，同比增长25.9%，环比增长77.8%。上半年净收入人民币12.46亿元，同比增长0.1%，经营利润人民币4.52亿元，同比增长30.3%，经营利润率36.3%，同比提升8.4个百分点。Non-GAAP净利润人民币3.72亿元，同比增长3.9%。本季度也标志着诺亚自上市以来连续第63个季度实现Non-GAAP的盈利。收入总量与去年基本持平，但收入结构和经营效率已经发生了明显的变化。我想把这个变化再进一步地阐述一下。第一个方面，旧模式相关收入正在有序地退出。上半年，募集费净收入同比下降36%，其中主要是保障类的产品下降53.8%。这部分收缩是我们主动进行的战略选择。中国大陆和国际业务的具体情况我后面会分别来说明。另一方面，投资能力相关收入正在兑现。上半年业绩报酬，也就是Fund-Based Carry，净收入达到人民币2.38亿元，同比增长364%。投资类产品募集费同比增长13.4%，投资收益人民币3,979万元，去年同期为亏损。同时，运营效率持续地提高，上半年经营成本与费用同比下降11.6%，其中人力成本同比下降12.7%。这些数字背后有成本纪律和组织精简的贡献。但我们认为更值得关注的是，诺亚正在开始用一种更轻、更数字化，更依赖平台能力，而不是单纯依赖人数扩张的经营方式。这是我们过去几个季度持续投入AI以后，开始看到的结构性的变化。

Zander Yin: [Foreign language]

Speaker #4: 好，第一个方面是财务表现方面。在第二季度，集团实现净收入人民币6.2亿元，经营利润人民币2.16亿元，同比增长34%。经营利润率34.8%，Non-GAAP归属于诺亚的净利润人民币2.38亿元，同比增长25.9%，环比增长77.8%。上半年净收入人民币12.46亿元，同比增长0.1%。经营利润人民币4.52亿元，同比增长30.3%。经营利润率36.3%，同比提升8.4个百分点。Non-GAAP净利润人民币3.72亿元，同比增长3.9%。本季度也标志着诺亚自上市以来连续第63个季度实现Non-GAAP的盈利。收入总量与去年基本持平，但收入结构和经营效率已经发生了明显的变化。我想把这个变化的话再进一步的阐述一下。第一个方面，旧模式相关收入正在有序的一个退出。上半年募集费净收入同比下降36%，其中主要是保障类的产品下降53.8%。这部分收缩是我们主动进行的战略选择。中国大陆和国际业务的具体情况我后面会分别来说明。另一方面，投资能力相关收入正在兑现。上半年业绩报酬，也就是carry fund-based carry，净收入达到人民币2.38亿元，同比增长364%。投资类产品募集费同比增长13.4%，投资收益人民币3,979万元，去年同期为亏损。同时，运营效率持续的提高。上半年经营成本与费用同比下降11.6%，其中人力成本同比下降12.7%。这些数字背后有成本纪律和组织精简的贡献，但我们更认为更值得关注的是诺亚正在开始用一种更轻、更数字化、更依赖平台能力，而不是单纯依赖人数扩张的经营方式。这是我们过去几个季度持续投入AI以后，开始看到的结构性的变化。

Speaker #2: In the second quarter, we generated net revenue of RMB 620 million. Operating income was RMB 216 million, up 34% year over year, with an operating margin of 34.8%.

Doreen Chiu: In the Q2, we generated net revenue of RMB 620 million. Operating income was RMB 216 million, up 34% year-over-year, with an operating margin of 34.8%. Non-GAAP net income attributable to Noah was RMB 238 million, up 25.9% year-over-year, and 77.8% quarter-over-quarter. For the H1 of the year, net revenues were RMB 1.25 billion, broadly flat year-over-year. Operating income reached RMB 452 million, up 30.3% year-over-year, with an operating margin of 36.3%, representing an improvement of 8.4 percentage points from the same period last year. Non-GAAP net income was RMB 372 million, up 3.9% year-over-year. This quarter also marked Noah's 63 consecutive quarter of Non-GAAP profitability since our IPO. While total revenue remained broadly stable compared with last year, the composition of our revenue and our operating efficiency have changed meaningfully. I'd like to explain this change clearly.

[Translator]: In the Q2, we generated net revenue of RMB 620 million. Operating income was RMB 216 million, up 34% year-over-year, with an operating margin of 34.8%. Non-GAAP net income attributable to Noah was RMB 238 million, up 25.9% year-over-year, and 77.8% quarter-over-quarter. For the H1 of the year, net revenues were RMB 1.25 billion, broadly flat year-over-year. Operating income reached RMB 452 million, up 30.3% year-over-year, with an operating margin of 36.3%, representing an improvement of 8.4 percentage points from the same period last year. Non-GAAP net income was RMB 372 million, up 3.9% year-over-year. This quarter also marked Noah's 63 consecutive quarter of Non-GAAP profitability since our IPO. While total revenue remained broadly stable compared with last year, the composition of our revenue and our operating efficiency have changed meaningfully. I'd like to explain this change clearly.

Speaker #2: Non-GAAP net income attributable to NOAH was 238 million RMB, up 25.9% year over year, and 77.8% quarter over quarter. For the first half of the year, net revenues were RMB 1.25 billion, quarterly flat year over year.

Speaker #2: Operating income reached RMB 452 million, up 30.3% year over year, with an operating margin of 36.3%, representing an improvement of 8.4 percentage points from the same period last year.

Speaker #2: Non-GAAP net income was RMB 372 million, up 3.9% year over year. This quarter also marked NOAH's 63rd consecutive quarter of non-GAAP profitability since our IPO.

Speaker #2: While total revenue remained stable on a quarterly basis compared with last year, the composition of our revenue and our operating efficiency have changed meaningfully. I would like to explain this change clearly.

Speaker #2: On one hand, revenues associated with the legacy model are being phased out in an orderly manner. Net distribution income declined 36% year over year in the first half.

Doreen Chiu: On one hand, revenues associated with the legacy model are being phased out in an ordinary manner. Net distribution income declined 36% year-over-year in the H1, including a 53.8% decline in insurance related products. This contraction reflects deliberate strategic choices we have made. I will discuss the Mainland China and international business separately in more details later. On the other hand, revenues associated with our investment capabilities are increasingly being realized. Net performance based income, or what we call carry, reached RMB 238 million in the H1, up 364% year-over-year. Distribution income from investment products increased to 13.4%. Investment income was RMB 39.79 million, compared with a loss in the same period last year. At the same time, operating efficiency continued to improve. Operating costs and expenses declined to 11.6% year-over-year in the H1, including a 12.7% reduction in personnel costs.

[Translator]: On one hand, revenues associated with the legacy model are being phased out in an ordinary manner. Net distribution income declined 36% year-over-year in the H1, including a 53.8% decline in insurance related products. This contraction reflects deliberate strategic choices we have made. I will discuss the Mainland China and international business separately in more details later. On the other hand, revenues associated with our investment capabilities are increasingly being realized. Net performance based income, or what we call carry, reached RMB 238 million in the H1, up 364% year-over-year. Distribution income from investment products increased to 13.4%. Investment income was RMB 39.79 million, compared with a loss in the same period last year. At the same time, operating efficiency continued to improve. Operating costs and expenses declined to 11.6% year-over-year in the H1, including a 12.7% reduction in personnel costs.

Speaker #2: Including a 53.8% decline in insurance-related products. This contraction reflects deliberate strategic choices we have made. I will discuss the mainland China and international business separately in more detail later.

Speaker #2: On the other hand, revenues associated with our investment capabilities are increasingly being realized. Net performance-based income, or what we call 'carry,' reached RMB 238 million in the first half, up 364% year over year.

Speaker #2: Distribution income from investment products increased by 13.4%. Investment income was RMB 39.79 million, compared with a loss in the same period last year. At the same time, operating efficiency continued to improve.

Speaker #2: Operating costs and expenses declined 11.6% year over year in the first half, including a 12.7% reduction in personnel costs. These improvements reflect both disciplined cost management and organizational streamlining.

Doreen Chiu: These improvements reflect both disciplined cost management and organizational streamlining. More importantly, we believe that they reflect a structural change in how Noah is beginning to operate. We are now increasingly operating with a leaner, more digitalized model that relies more on platform capabilities and less on simply adding headcount. This is one of the structural outcomes we are beginning to see after several quarters of sustained investment in AI.

[Translator]: These improvements reflect both disciplined cost management and organizational streamlining. More importantly, we believe that they reflect a structural change in how Noah is beginning to operate. We are now increasingly operating with a leaner, more digitalized model that relies more on platform capabilities and less on simply adding headcount. This is one of the structural outcomes we are beginning to see after several quarters of sustained investment in AI.

Speaker #2: But more importantly, we believe that they reflect a structural change in how NOAH is beginning to operate. We are now increasingly operating with a leaner, more digitalized model that relies more on platform capabilities and less on simply adding headcount.

Speaker #2: This is one of the structural outcomes we are beginning to see after several quarters of sustained investment in AI.

Speaker #3: 我们对利润结构的看法是清晰的。转型期的利润由carry来支持与成本纪律来守住，而未来经营性的收入正真正的能够恢复增长，要依靠新的增长引擎并网。其中AI财富管理部就是我们正在重点验证的新的增长引擎之一。这是下半年管理层最重要的核心工作之一。我们维持一季度业绩会上的判断，全年经营利润率保持在30%以上的健康区间，季度之间因产品结构与费用节奏自然会有波动。

Zander Yin: 我们对利润结构的看法是清晰的，转型期的利润由carry来支持，与成本纪律来守住。而未来经营性的收入真正地恢复增长，要依靠新的增长引擎并网。其中AI财富管理部就是我们正在重点验证的新的增长引擎之一，这是下半年管理层最重要的核心工作之一。我们维持一季度业绩会上的判断，全年经营利润率保持在30%以上的健康区间，季度之间因产品结构与费用节奏自然会有波动。

Zander Yin: [Foreign language]

Speaker #2: Our view of the earnings structure is clear. During the transformation period, carry realization and cost discipline provide support for profitability. For recurring revenues to return to sustainable growth, new growth engines must come online.

Doreen Chiu: Our view of the earning structure is clear. During the transformation period, carry realization and cost discipline provide support for profitability. For recurring revenues to return to sustainable growth, new growth engines must come online. The AI Wealth Management Department is one of new growth engines we are now actively validating. This will be one of management's most important priorities in the H2 of the year. We maintain the outlook we provide on our Q1 earnings call. We expect our full year operating margin to remain at a healthy level above 30%, while quarterly results may naturally fluctuate depending on product mix and the timing of expenses.

[Translator]: Our view of the earning structure is clear. During the transformation period, carry realization and cost discipline provide support for profitability. For recurring revenues to return to sustainable growth, new growth engines must come online. The AI Wealth Management Department is one of new growth engines we are now actively validating. This will be one of management's most important priorities in the H2 of the year. We maintain the outlook we provide on our Q1 earnings call. We expect our full year operating margin to remain at a healthy level above 30%, while quarterly results may naturally fluctuate depending on product mix and the timing of expenses.

Speaker #2: The AI wealth management department is one of the new growth engines we are now actively validating. This will be one of management's most important priorities in the second half of the year.

Speaker #2: We maintain the outlook we provided on our first quarter earnings call. We expect our full-year operating margin to remain at a healthy level, about 30%, while quarterly results may naturally fluctuate depending on product mix and the timing of expenses.

Speaker #3: 关于carry，carry的话绝对不是一次一次性的这种那个收入，而是一套长期积累，可以持续滚动产生的系统的能力。我们的底层运作很清晰，就是三层结构。第一层做全球顶级基金的LP，获得最前沿的产业视野和资产的信息。第二层通过母基金进一步放大信息网络，观察全球优秀投资机构的集体选择。第三层通过跟投和直投，把前两层积累的信息优势转化为回报更高、集中度更高的carry的来源。这三层结构构成了我们滚动发行的产品线。不同年份设立的基金处于不同的生命周期，持续由早期基金进入收获的阶段，使得carry具备滚动兑现的基础，而不是依赖单一项目的偶发性的收入。另一方面，AI数据能力正在进一步的强化这套投资系统。资产端我们较早的布局了全球AI价值链中的核心资产，目前很多资产仍处于价值释放的早中期。我们穿透近60只子基金，通过机构化的数据体系和交叉的验证，观察优秀的GP共同投资什么，持续在加仓什么，以及资产和产业趋势正在向哪里集中。在客户端，AI开始帮助我们解决另一个非常重要的一个问题，就不仅是选对产品，也要选对客户。在合适的时间把合适的产品匹配给合适的客户。投资判断客户的理解与配置能力开始被数据连接在一起。数据积累的越深，判断就越精准。客户获得好的投资结果以后，复投和AUM就会提高。最终进一步的形成carry。这是我们希望建立的长期的飞轮。香港平台历史上已经累计实实际支付carry 1.58亿美元，这个兑现能力是记录有可以来验证的。当然，另类投资有其固有的周期，carry逐渐逐年也会有波动。我们不会对此做平坦平就平，就是常态化的承诺。最新的进展会继续按照季度向大家披露。

Zander Yin: 关于carry，绝对不是一次性的这种收入，而是一套长期积累、可以持续滚动产生的系统的能力。我们的底层运作很清晰，就是三层结构。第一层做全球顶级基金的LP，获得最前沿的产业视野和资产的信息。第二层通过母基金进一步放大信息网络，观察全球优秀投资机构的集体选择。第三层，通过跟投和直投，把前两层积累的信息优势转化为回报更高、集中度更高的carry的来源。这三层结构构成了我们滚动发行的产品线。不同年份设立的基金处于不同的生命周期，持续有早期基金进入收获的阶段，使得carry具备滚动兑现的基础，而不是依赖单一项目的偶发性的收入。另一方面，AI数据能力正在进一步地强化这套投资系统。资产端，我们较早地布局了全球AI价值链中的核心资产，目前很多资产仍处于价值释放的早中期。我们穿透近60只子基金，通过机构化的数据体系和交叉的验证，观察优秀的GP共同投资什么，持续在加仓什么，以及资产和产业趋势正在向哪里集中。在客户端，AI开始帮助我们解决另一个非常重要的一个问题，就不仅是选对产品，也要选对客户。在合适的时间把合适的产品匹配给合适的客户。投资判断、客户的理解与配置能力开始被数据连接在一起。数据积累得越深，判断就越精准，客户获得好的投资结果以后，复投和AUM就会提高，最终进一步地形成carry。这是我们希望建立的长期的飞轮。香港平台历史上已经累计实际支付carry 1.58亿美元。这个兑现能力是记录有可以来验证的。当然此类投资有其固有的周期，carry逐年也会有波动，我们不会对此做常态化的承诺。最新的进展会继续按照季度向大家披露。

Zander Yin: [Foreign language]

Speaker #2: Carry is not a one-time outcome driven by luck. It is the result of a long-term, systematic investment capability that can continuously generate value across investment cycles.

Doreen Chiu: Carry is not a one-time outcome driven by luck. It is the result of a long-term systematic investment capability that can continuously generate value across investment cycles. Our underlying model consists of three layers. The first layer is investing as an LP in leading global funds, which gives us exposure to the most advanced industry insights and investment opportunities. The second layer is using our fund of funds portfolio to broaden that information network and observe the collective investment decisions of leading global investment institutions. The third layer is co-investment and direct investment, where we convert the information advantage accumulated through the first two layers into more concentrated sources of potential return and carry. Together, these three layers form the foundation of our continuously evolving product portfolio. Funds established in different vintages are at different stages of their life cycles.

[Translator]: Carry is not a one-time outcome driven by luck. It is the result of a long-term systematic investment capability that can continuously generate value across investment cycles. Our underlying model consists of three layers. The first layer is investing as an LP in leading global funds, which gives us exposure to the most advanced industry insights and investment opportunities. The second layer is using our fund of funds portfolio to broaden that information network and observe the collective investment decisions of leading global investment institutions. The third layer is co-investment and direct investment, where we convert the information advantage accumulated through the first two layers into more concentrated sources of potential return and carry. Together, these three layers form the foundation of our continuously evolving product portfolio. Funds established in different vintages are at different stages of their life cycles.

Speaker #2: Our underlying model consists of three layers. The first layer is investing as an LP in leading, robust funds, which gives us exposure to the most advanced industry insights and investment opportunities.

Speaker #2: The second layer is using our fund-of-funds portfolio to broaden that information network and observe the collective investment decisions of leading global investment institutions.

Speaker #2: The third layer is co-investment and direct investment, where we convert the information advantage accumulated through the first two layers into more concentrated sources of potential return and carry.

Speaker #2: Together, these three layers form the foundation of our continuously evolving product portfolio. Funds establish different life cycles. As earlier funds progressively enter the harvesting periods, they create the foundation for recurrent carry.

Doreen Chiu: As earlier funds progressively enter their harvesting periods, they create the foundation for recurring carry realization rather than dependence on any single investment or exit. At the same time, AI and data capabilities are further strengthening this investment system. On the asset side, we positioned ourselves relatively early in several core segments of the global AI value chain, and many of these assets remain in the early to middle stages of value realization. We look through nearly 60 underlying funds and use institutionalized data systems and cross-validation to understand what leading GPs are investing in together, where they are increasing their exposure, and where capital and industry trends are converging.

[Translator]: As earlier funds progressively enter their harvesting periods, they create the foundation for recurring carry realization rather than dependence on any single investment or exit. At the same time, AI and data capabilities are further strengthening this investment system. On the asset side, we positioned ourselves relatively early in several core segments of the global AI value chain, and many of these assets remain in the early to middle stages of value realization. We look through nearly 60 underlying funds and use institutionalized data systems and cross-validation to understand what leading GPs are investing in together, where they are increasing their exposure, and where capital and industry trends are converging.

Speaker #2: Realization, rather than dependence on any single investment or exit. At the same time, AI and data capabilities are further strengthening this investment system. On the asset side, we positioned ourselves relatively early in several core segments of the global AI value chain, and many of these assets remain in the early to middle stages of value realization.

Speaker #2: We look through the leading 60 underlying funds and use an institutionalized data system and cross-validation to understand what leading GPs are investing in together, where they are increasing their exposure, and where capital and industry trends are converging.

Speaker #2: On the client side, AI is helping us address another equally important question. It is not only about selecting the right product; it is also about identifying the right client and matching the right product with the right client at the right time.

Doreen Chiu: On the client side, AI is helping us address another equally important question: it is not only about selecting the right product, it is also about identifying the right client and matching the right product with the right client at the right time. Investment judgment, client understanding, and asset allocation are increasingly being connected through data. The deeper the data becomes, the more precise our judgment can be. When clients achieve strong investment outcomes, the reinvestment rates and AUM can increase, which in turn creates the potential for future carry. This is the long-term flywheel we are working to build. Our Hong Kong platform has historically distributed a cumulative US$158 million in carry already, demonstrating a track record of actual realization. Of course, alternative investments are inherently cyclical, and carry will fluctuate from year to year.

[Translator]: On the client side, AI is helping us address another equally important question: it is not only about selecting the right product, it is also about identifying the right client and matching the right product with the right client at the right time. Investment judgment, client understanding, and asset allocation are increasingly being connected through data. The deeper the data becomes, the more precise our judgment can be. When clients achieve strong investment outcomes, the reinvestment rates and AUM can increase, which in turn creates the potential for future carry. This is the long-term flywheel we are working to build. Our Hong Kong platform has historically distributed a cumulative US$158 million in carry already, demonstrating a track record of actual realization. Of course, alternative investments are inherently cyclical, and carry will fluctuate from year to year.

Speaker #2: Investment judgment, client understanding, and asset allocation are increasingly being connected through data. The deeper the data becomes, the more precise our judgment can be.

Speaker #2: When clients achieve strong investment outcomes, then investment raises and AUM can increase, which in turn creates the potential for future carry. This is the long-term flywheel we are working to build.

Speaker #2: Our Hong Kong platform has historically distributed a cumulative US dollar amount of $158 million in carry already, demonstrating a track record of actual realization. Of course, alternative investments are inherently cyclical, and carry will fluctuate from year to year.

Speaker #2: We will not normalize or make linear assumptions around carry, and we will continue to provide updates each quarter.

Doreen Chiu: We will not normalize or make linear assumptions around carry, and we will continue to provide updates each quarter.

[Translator]: We will not normalize or make linear assumptions around carry, and we will continue to provide updates each quarter.

Speaker #3: 咱目前以规模方面，上半年集团募集量40.5亿元，同比增长22.4%。其中美元产品募集24.5亿美元，同比增长8.4%，占比41%。截至6月30号，集团AUM按季度恢复增长，达到人民币1,409亿元，其中美元AUM 65亿美元，同比增长11.7%。美元的AUA 97.8亿美元，同比增长7.5%。资产负债表继续保持稳健，截至6月30号，公司持有现金现金等价物及短期投资约人民币50亿元。维持零有息负债。历史诚心已遗留的项目项目问题，本季度也取得了关键的进展。上半年我们完成了对已和解客户的股票发发行，二季度面向尚未和解的客户推出新的和解方案，签署接受的投资人持续增加。由于前期波倍GT非常充分，二季度录得部分的呃波倍的回拨。这项历史不确定的性的呃问题已经明显的得到了收窄。

Zander Yin: 在募集与规模方面，上半年集团募集量40.5亿元，同比增长22.4%，其中美元产品募集24.5亿美元，同比增长8.4%，占比41%。截止6月30号，集团AUM按季度恢复增长，达到人民币1,409亿元，其中美元AUM 65亿美元，同比增长11.7%，美元的AUA 97.8亿美元，同比增长7.5%。资产负债表继续保持稳健。截止6月30号，公司持有现金、现金等价物及短期投资约人民币50亿元，维持零有息负债。历史承兴遗留的项目问题，本季度也取得了关键的进展。上半年我们完成了对已和解客户的股票发行。二季度面向尚未和解的客户推出新的和解方案，签署接受的投资人持续增加。由于前期拨备计提非常充分，二季度录得部分的拨备的回拨。这件历史不确定性的问题已经明显地得到了收窄。

Zander Yin: [Foreign language]

Speaker #2: In terms of transaction values, total fundraising reached RMB 40.5 billion in the first half, up 22.4% year over year. US dollar-denominated product fundraising reached $2.45 billion, up 8.4% year over year, accounting for 41% of the total.

Doreen Chiu: In terms of transaction values, total fundraising reached RMB 40.5 billion in the H1, up 22.4% year-over-year. USD denominated product fundraising reached $2.45 billion, up 8.4% year-over-year, accounting for 41% of the total. As of 30 June, group AUM returned to sequential growth and reached RMB 140.9 billion. USD denominated AUM reached $6.5 billion, up 11.7% year-over-year. While USD denominated AUA reached $9.78 billion, up 7.5%. Our balance sheet remains strong. As of 30 June, we held approximately RMB 5 billion in cash equivalents, and short-term investments with zero interest-bearing debts. We also made important progress this quarter in resolving the legacy Camsing matter. During the H1, we completed the issuance of shares to clients who had previously entered into the settlement agreements.

[Translator]: In terms of transaction values, total fundraising reached RMB 40.5 billion in the H1, up 22.4% year-over-year. USD denominated product fundraising reached $2.45 billion, up 8.4% year-over-year, accounting for 41% of the total. As of 30 June, group AUM returned to sequential growth and reached RMB 140.9 billion. USD denominated AUM reached $6.5 billion, up 11.7% year-over-year. While USD denominated AUA reached $9.78 billion, up 7.5%. Our balance sheet remains strong. As of 30 June, we held approximately RMB 5 billion in cash equivalents, and short-term investments with zero interest-bearing debts. We also made important progress this quarter in resolving the legacy Camsing matter. During the H1, we completed the issuance of shares to clients who had previously entered into the settlement agreements.

Speaker #2: As of end June 30th, group AUM returned to sequential growth and reached renminbi 140.9 billion. US dollar denominated AUM reached US dollar 6.5 billion, up 11.7% year over year, while US dollar denominated AUA reached US dollar 9.78 billion, up 7.5%.

Speaker #2: Our balance sheet remains strong. As of June 30th, we held approximately RMB 5 billion in cash, cash equivalents, and short-term investments, with zero interest-bearing debts.

Speaker #2: We also made important progress this quarter in resolving the legacy campaign matter. During the first half, we completed the issuance of shares to clients who had previously entered into the settlement agreements.

Speaker #2: In the second quarter, we introduced a new settlement proposal for clients who had not yet settled, and the number of investors accepting the proposal continues to increase.

Doreen Chiu: In the Q2, we introduced a new settlement proposal for clients who had not yet settled, and the number of investors accepting the proposal continues to increase. Given the adequate provision we made previously record, we recognize a partial reversal during the Q2. The uncertainty associated with this legacy matter has now been meaningfully reduced.

[Translator]: In the Q2, we introduced a new settlement proposal for clients who had not yet settled, and the number of investors accepting the proposal continues to increase. Given the adequate provision we made previously record, we recognize a partial reversal during the Q2. The uncertainty associated with this legacy matter has now been meaningfully reduced.

Speaker #2: Given the adequate provision we made previously recorded, we recognize our partial reversal during the second quarter. The uncertainty associated with this legacy matter has now been meaningfully reduced.

Speaker #3: 那第二部分是中国大陆的业务啊。中国大陆业务的话，延续一季度确定的方向，回归投资与资产配置的本源，向标准化具备长期配置价值的资产进一步的聚焦。第二季度，中国大陆业务净收入人民币3.84亿元，上半年合计人民币7.76亿元，同比增长约20.7%。那正行上半年募集人民币82.7亿元，净收入人民币4.14亿元，同比增长59.8%。对于正行，我们的经营理念也越来越简单，最重要的考核是客户有没有赚到钱。我们看客户的盈利，客户的留存以及加权投资的收益。当前产品货价以量化中性CTA等防守型策略为主，但目前市场环境中，我们不追求简单的做大规模，而是更加注重资产的质量。客户的投资结果以及长期的信任。戈菲上半年净收入人民币3.4亿元，与去年基本持平。中国大陆保险业务上半年净收入人民币338.2万元，对于传统高返佣保障类的这种业务，我们已经主动收缩并有序的停止，逐渐转向家族传承等综合的服务。这个调整发生在监管要求之前，是我们长期我们基于长期客户价值主动进行的选择。中国大陆未来的业务定位也越来越清晰。聚焦二级市场，以专业投资能力和资产配置能力来服务客户，同时提升AI呃，同时通过AI提升客户经营和服务的效率。

Zander Yin: 第二部分是中国大陆的业务。中国大陆业务延续一季度确定的方向，回归投资与资产配置的本源，向标准化具备长期配置价值的资产进一步地聚焦。第二季度，中国大陆业务净收入人民币3.84亿元，上半年合计人民币7.76亿元，同比增长约20.7%。诺亚正行上半年募集人民币82.7亿元，净收入人民币4.14亿元，同比增长59.8%。对于正行，我们的经营理念也越来越简单，最重要的考核是客户有没有赚到钱。我们看客户的盈利、客户的留存以及加权投资的收益。当前产品货架以量化、中性、CTA等防守型策略为主。在目前市场环境中，我们不追求简单的做大规模，而是更加注重资产的质量、客户的投资结果以及长期的信任。歌斐上半年净收入人民币3.41亿元，与去年基本持平。中国大陆保险业务上半年净收入人民币338.2万元。对于传统高保用保障类的这种业务，我们已经主动收缩并有序地停止，逐渐转向家族传承等综合的服务。这个调整发生在监管要求之前，是我们基于长期客户价值主动进行的选择。中国大陆未来的业务定位也越来越清晰，聚焦二级市场，以专业投资能力和资产配置能力来服务客户，同时通过AI提升客户经营和服务的效率。

Zander Yin: [Foreign language]

Speaker #2: Our mainland China business continues in the direction we established in the first quarter, returning to the fundamentals of investment and asset allocation, with greater focus on standardized assets that offer sustainable, long-term allocation value.

Doreen Chiu: Our Mainland China business continued in the direction we established in the Q1, returning to the fundamentals of investment and asset allocation, with greater focus on standardized assets that offer sustainable long-term allocation value. In the Q2, Mainland China generated net revenues of RMB 384 million. For the H1, net revenues totaled RMB 776 million, up approximately 20.7% year-over-year. Noah Upright raised RMB 8.27 billion in the H1 and generated net revenues of RMB 414 million, up 59.8% year-over-year. For Upright, our operating philosophy is becoming increasingly simple. The most important measure of success is whether our clients make profit. We focus on client profitability, client retention, and weighted investment returns.

[Translator]: Our Mainland China business continued in the direction we established in the Q1, returning to the fundamentals of investment and asset allocation, with greater focus on standardized assets that offer sustainable long-term allocation value. In the Q2, Mainland China generated net revenues of RMB 384 million. For the H1, net revenues totaled RMB 776 million, up approximately 20.7% year-over-year. Noah Upright raised RMB 8.27 billion in the H1 and generated net revenues of RMB 414 million, up 59.8% year-over-year. For Upright, our operating philosophy is becoming increasingly simple. The most important measure of success is whether our clients make profit. We focus on client profitability, client retention, and weighted investment returns.

Speaker #2: In the second quarter, mainland China generated net revenues of RMB 384 million. For the first half, net revenues totaled RMB 776 million, up approximately 20.7% year over year.

Speaker #2: Now, Upright wasted RMB 8.27 billion in the first half and generated net revenues of RMB 414 million, up 59.8% year over year. For Upright, our operating philosophy is becoming increasingly simple.

Speaker #2: The most important measure of success is whether our clients make a profit. We focus on client profitability, client retention, and weighted investment returns. Our current product shelf is primarily focused on defensive strategies, such as market neutral quantitative strategies and CTAs.

Doreen Chiu: Our current product shelf primarily focus on defensive strategies such as market neutral quantitative strategies and CTAs. In the current market environment, we are not pushing scale for the sake of scale. Instead, we are placing greater emphasize on asset quality, client investment outcomes, and long-term trust. Gopher generated net revenues of RMB 341 million in the H1, broadly flat year-over-year. Our Mainland China insurance business generates net revenues of RMB 382 million in the H1. We have proactively reduced and gradually exit the traditional high commission protection product model, shifting instead to more comprehensive services such as family succession and heritage planning. This adjustment began before the relevant regulatory requirements and reflected our own long-term assessment of client value. The future positioning of our Mainland China business is becoming increasingly clear. We will focus on secondary market investments, serve clients through professional investments and asset allocation of capabilities, and use AI to improve client engagement and surface efficiency.

[Translator]: Our current product shelf primarily focus on defensive strategies such as market neutral quantitative strategies and CTAs. In the current market environment, we are not pushing scale for the sake of scale. Instead, we are placing greater emphasize on asset quality, client investment outcomes, and long-term trust. Gopher generated net revenues of RMB 341 million in the H1, broadly flat year-over-year. Our Mainland China insurance business generates net revenues of RMB 382 million in the H1. We have proactively reduced and gradually exit the traditional high commission protection product model, shifting instead to more comprehensive services such as family succession and heritage planning. This adjustment began before the relevant regulatory requirements and reflected our own long-term assessment of client value. The future positioning of our Mainland China business is becoming increasingly clear. We will focus on secondary market investments, serve clients through professional investments and asset allocation of capabilities, and use AI to improve client engagement and surface efficiency.

Speaker #2: In the current market environment, we are not pushing scale for the sake of scale. Instead, we are placing greater emphasis on asset quality, client investment outcomes, and long-term trust.

Speaker #2: Group generated net revenues of RMB 341 million in the first half, broadly flat year over year. Our mainland China insurance business generated net revenues of RMB 3.382 million in the first half. We have proactively reduced and gradually exited the traditional high-commission protection product model.

Speaker #2: Shifting instead to comprehensive services such as family succession and inheritance planning. This adjustment began before the relevant regulatory requirements and reflected our own long-term assessment of client value.

Speaker #2: The future positioning of our mainland China business is becoming increasingly clear. We will focus on secondary market investments, serve clients through professional investments and asset allocation capabilities, and use AI to improve client engagement and service efficiency.

Speaker #3: 好，呃，第三个方面是国际的业务。呃，AS财富管理部的新模式开始落地的。呃，在国际业务方面，呃，上半年国际板块净收入人民币4.69亿元，占集团净收入的37.7%，同比下降21.9%。这个降幅需要拆拆开来看。近接近九成来自于业务保保险业务的主动收缩，以及就转介绍通路的退出。提出这两部分后，美元投资产品收入与去年基本持平，而客户的资产仍然保持增长。美元AUM同比增长11.7%，截至6月30号，海外注册客户21,059人，同比增长11%。海外钻石级黑卡客户1,791人，同比增长8.9%。二季度活跃的客户3,494人，环比增长8.5%。所以我们对国际业务当前阶段的判断并没有变化。客户的和资产并没有流失，是就已经退出的速度暂时快于新引擎并网的一个速度。这与过去我们几个季度我们向市场披露的收入结构调整节奏是一致的。那第二，在二季度有一个变化，我们认为尤其重要。截至二季度末，海外IM人数同比下降36.2%，同期美元AM反而同比增长11.7%。如果按照传统财富管理公司的经营逻辑，这两件事情通常不会同时发生，因为过去行业的增长公式非常简单，更多的IM带来更多的客户，更多的客户带来更多的AUM和收入。而我们过去一年一直在尝试改变这个公式，一季度业务业业绩发布会上面，我们第一次比较完整的介绍诺亚的未来的三个前台。第一个是AI赋能的IM，第二个是AI财富管理部，第三个是AI加生态拓展。二季度以后，我们开始看到第二个前台，就AI加财富管理部，从组织概念走向了真实的经营。那什么是AI加财富管理部呢？它并不是简单的给传统IM增加几个AI的工具，它本质上是一种新的财富管理前台组织的方式。过去一个客户通常对应一个IM，客户体验产品理解服务频率，甚至很多信息都高度依赖这个IM个人。这意味着传统的财富管理非常难规模化，尤其在海外。而AI财富管理部尝试重新拆解这个过程，由AI和集中化的财富管理团队承担大量高频标准化可数字化的客户经营与日常的服务，由持牌的专业团队完成需要判断合规和专业责任的关键环节，再通过生态合作伙伴不断的扩大客户的来源。这样一个客户不再只是属于某一个IM，而是由整个诺亚的平台能力共同服务。这也是我们认为AI真正改变财富管理行业的地方，不是让一个IM写材料更快，而是让财富管理第一次有机会从个人生产力的模式进入一个机构生产力的模式。

Zander Yin: 好，那第三个方面是国际的业务，AI财富管理部的新模式开始落地了。在国际业务方面，上半年国际板块净收入人民币4.69亿元，占集团净收入的37.7%，同比下降21.9%。这个降幅需要拆开来看，接近九成来自于保险业务的主动收缩，以及旧转介绍通道的退出。剔除这两部分后，美元投资产品收入与去年基本持平，而客户的资产仍然保持增长。美元AUM同比增长11.7%，截至6月30号，海外注册客户21,059人，同比增长11%。海外钻石级黑卡客户1,791人，同比增加8.9%。二季度活跃的用户3,494人，环比增长8.5%。所以我们对国际业务当前阶段的判断并没有变化，客户和资产并没有流失，是旧引擎退出的速度暂时快于新引擎并网的一个速度。这与过去我们几个季度我们向市场披露的收入结构调整节奏是一致的。那第二，在二季度有一个变化，我们认为尤其重要。截止二季度末，海外RM人数同比下降36.2%，同期美元AUM反而同比增长11.7%。如果按照传统财富管理公司的经营逻辑，这两件事情通常不会同时发生。因为过去行业的增长公式非常简单，更多的RM带来更多的客户，更多的客户带来更多的AUM和收入。而我们过去一年一直在尝试改变这个公式。一季度业绩发布会上面，我们第一次比较完整地介绍诺亚的未来的三个前台，第一个是AI赋能的RM，第二个是AI财富管理部，第三个是AI加生态拓展。二季度以后，我们开始看到第二个前台，就是AI加财富管理部，从组织概念走向了真实的经营。那什么是AI加财富管理部呢？它并不是简单地给传统RM增加几个AI的工具，它本质上是一种新的财富管理前台组织的方式。过去一个客户通常对应一个RM，客户体验、产品理解、服务频率，甚至很多信息都高度依赖这个RM个人。这意味着传统的财富管理非常难规模化，尤其在海外。而AI财富管理部尝试重新拆解这个过程，由AI和集中化的财富管理团队承担大量高频标准化和数字化的客户经营与日常的服务，由持牌的专业团队完成需要判断合规和专业责任的关键环节，再通过生态合作伙伴不断地扩大客户的来源。这样一个客户不再只是属于某一个RM，而是由整个诺亚的平台能力共同服务。这也是我们认为AI真正改变财富管理行业的地方。不是让一个RM写材料更快，而是让财富管理第一次有机会从个人生产力的模式进入一个机构生产力的模式。

Zander Yin: [Foreign language]

Speaker #2: Let me first review the numbers for our international business. Net revenues from the international segment were RMB 469 million in the first half, accounting for 47.7% of group net revenues and declining 21.9% year over year.

Doreen Chiu: Let me first review the numbers for our international business.

[Translator]: Let me first review the numbers for our international business. Net revenues from the international segment were CNY 469 million in H1, accounting for 37.7% of group net revenues and declining 21.9% year-over-year. This decline needs to be understood in context. Nearly 90% of the decline came from the deliberate contraction of our insurance business and the exit from legacy referral channels. Excluding those two factors, revenue from US dollar denominated investment products were broadly flat year-over-year, while our client base and asset continued to grow. US dollar denominated AUM increased 11.7% year-over-year.

Doreen Chiu: Net revenues from the international segment were CNY 469 million in H1, accounting for 37.7% of group net revenues and declining 21.9% year-over-year. This decline needs to be understood in context. Nearly 90% of the decline came from the deliberate contraction of our insurance business and the exit from legacy referral channels. Excluding those two factors, revenue from US dollar denominated investment products were broadly flat year-over-year, while our client base and asset continued to grow. US dollar denominated AUM increased 11.7% year-over-year. As of end June, registered overseas clients reached 21,059, up 11% year-over-year. Overseas diamond and black card clients reached 1,791, up 8.9%. Active overseas clients reached 3,494 in Q2, up 8.5% sequentially. Our assessment of the current stage of our international business therefore remains unchanged. We are not losing clients or assets. The engines are simply being phased out faster than the new engines are coming online. This is consistent with the revenue mix transition we have discussed with the market over the past several quarters. However, one development in Q2 is particularly important. As of the end of Q2, overseas RM headcount was down 36.2% year-over-year, while US dollar denominated AUM increased by 11.7%.

Speaker #2: This decline needs to be understood in context. Nearly 90% of the decline came from the deliberate contraction of our insurance business and the exit from legacy referral channels.

Speaker #2: Excluding those two factors, revenue from U.S. dollar-denominated investment products was broadly flat year over year, while our client base and assets continue to grow.

Speaker #2: US dollar-denominated AUM increased 11.7% year over year as of end of June. Registered overseas clients reached 21,059, up 11% year over year. Overseas Diamond and Black Card clients reached 1,791, up 8.9%.

[Translator]: As of end June, registered overseas clients reached 21,059, up 11% year-over-year. Overseas diamond and black card clients reached 1,791, up 8.9%. Active overseas clients reached 3,494 in Q2, up 8.5% sequentially. Our assessment of the current stage of our international business therefore remains unchanged. We are not losing clients or assets. The engines are simply being phased out faster than the new engines are coming online. This is consistent with the revenue mix transition we have discussed with the market over the past several quarters. However, one development in Q2 is particularly important. As of the end of Q2, overseas RM headcount was down 36.2% year-over-year, while US dollar denominated AUM increased by 11.7%.

Speaker #2: Active overseas clients reached 3,494 in the second quarter, up 8.5% sequentially. Our assessment of the current stage of our international business, therefore, remains unchanged.

Speaker #2: We are not losing clients or assets. The engines are simply being phased out faster than the new engines are coming online. This is consistent with the revenue mix transition we have discussed with the market over the past several quarters.

Speaker #2: However, one development in the second quarter is particularly important. As of the end of the second quarter, overseas RM headcount was down 36.2% year over year, while U.S. dollar-denominated AUM increased by 11.7%.

Speaker #2: Under the transitional wealth management operating model, these two outcomes would rarely occur at the same time. Historically, the industry’s growth formula has been straightforward: more RMs lead to more clients.

Doreen Chiu: Under the traditional wealth management operating model, these two outcomes would rarely occur at the same time. Historically, the industry's growth formula has been straightforward. More RM leads to more clients, more clients lead to more AUM and more revenue. However, the past year, we have been working to change that equation. On our Q1 earnings call, we introduced the three front office engines that we believe will define Noah's future operating model. First, AI-empowered RMs. Second, the AI Wealth Management Department. And third, AI plus ecosystem expansion. After Q2, we are beginning to see the second front office engine, the AI Wealth Management Department, moved from an organizational concept into a real operating model. What is the AI Wealth Management Department? It is not simply about giving traditional RMs a few additional AI tools.

[Translator]: Under the traditional wealth management operating model, these two outcomes would rarely occur at the same time. Historically, the industry's growth formula has been straightforward. More RM leads to more clients, more clients lead to more AUM and more revenue. However, the past year, we have been working to change that equation. On our Q1 earnings call, we introduced the three front office engines that we believe will define Noah's future operating model. First, AI-empowered RMs. Second, the AI Wealth Management Department. And third, AI plus ecosystem expansion. After Q2, we are beginning to see the second front office engine, the AI Wealth Management Department, moved from an organizational concept into a real operating model. What is the AI Wealth Management Department? It is not simply about giving traditional RMs a few additional AI tools.

Speaker #2: More clients lead to more AUM and more revenue. However, over the past year, we have been working to change that equation. On our first quarter earnings call, we introduced the three front office engines that we believe will define Noah's future operating model.

Speaker #2: First, AI-empowered RMs. Second, the AI wealth management department. And third, AI plus ecosystem expansion. After the second quarter, we are beginning to see the second front office engine, the AI wealth management department, move from an organizational concept into a real operating model.

Speaker #2: So, what is the AI Wealth Management Department? It is not simply about giving traditional RMs a few additional AI tools. At its core, it represents a new way of organizing the front office of a wealth management business.

Doreen Chiu: At its core, it represents a new way of organizing the front office of a wealth management business. Historically, one client was typically associated with one RM. The client experience, product understanding, frequency of engagement, and often a significant amount of client information will highly depend on that individual RM. This makes traditional wealth management industry inherently difficult to scale. The AI Wealth Management Department seeks to redesign this process. AI and a centralized wealth management team handle a significant portion of high-frequency, standardized, and digitalized client engagement and daily services. Licensed professionals are responsible for the critical stages requiring judgment, compliance, and professional accountability. Ecosystem partners then expand our client reach. Under this model, a client no longer belongs simply to an individual RM. The client is served by the combined capabilities of the entire Noah platform. This is where we believe AI can fundamentally change wealth management.

[Translator]: At its core, it represents a new way of organizing the front office of a wealth management business. Historically, one client was typically associated with one RM. The client experience, product understanding, frequency of engagement, and often a significant amount of client information will highly depend on that individual RM. This makes traditional wealth management industry inherently difficult to scale. The AI Wealth Management Department seeks to redesign this process. AI and a centralized wealth management team handle a significant portion of high-frequency, standardized, and digitalized client engagement and daily services. Licensed professionals are responsible for the critical stages requiring judgment, compliance, and professional accountability. Ecosystem partners then expand our client reach. Under this model, a client no longer belongs simply to an individual RM. The client is served by the combined capabilities of the entire Noah platform. This is where we believe AI can fundamentally change wealth management.

Speaker #2: Historically, one client was typically associated with one RM. The client experience, product understanding, frequency of engagement, and often a significant amount of client information were highly dependent on that individual RM.

Speaker #2: This makes the traditional wealth management industry inherently difficult to scale. The AI wealth management department seeks to redesign this process. AI and a centralized wealth management team handle a significant portion of high-frequency, standardized, and digitalized client engagement.

Speaker #2: And daily services. Licensed professionals are responsible for the critical stages requiring judgment, compliance, and professional accountability. Ecosystem partners then expand our client reach. Under this model, a client no longer belongs simply to an individual RM.

Speaker #2: The client is served by the combined capabilities of the entire Noah platform. This is where we believe AI can fundamentally change wealth management. It is not simply about helping one RM prepare materials faster.

Doreen Chiu: It is not simply about helping one RM preparing materials faster. It is about giving wealth management the opportunity to move from an individual productivity model toward an institutionalized productivity model.

[Translator]: It is not simply about helping one RM preparing materials faster. It is about giving wealth management the opportunity to move from an individual productivity model toward an institutionalized productivity model.

Speaker #2: It is about giving wealth management the opportunity to move from an individual productivity model toward an institutionalized productivity model.

Speaker #3: 啊，在新加坡啊，第一个是完整的一个样本啊，来验证这套模式在市场上的成功性啊。从去年四季度启动到现在，新加坡AUM从不到1亿美元增长到二季度超过4亿美元，并在今年的7月份实现了单月的盈利。更值更加值得关注的是它的增长方式。目前AI赋能的团队已经承接92%的客户的日常服务，再由持牌团队负责合规与专业的交付。这使得专业人员可以把大量时间从重复性的行政事务、信息的整理和标准服务中释放出来。更多投入真正需要人类完成的事情，理解客户，建立信任，判断需求，进行重要的决策沟通。同时，外部合作伙伴贡献了42%的新增AUM，上半年新加坡募集1.58亿美元，同比增长126%。而这个增长的全过程没有依赖RM人数的大规模的扩张，对我们而言，这组数字的重要意义不仅是新加坡业务增长，而是它第一次证明。另外，有可能把财富管理从过去高度依赖招募RM的增长模式逐渐转变为AI平台加专业持牌人员加生态伙伴的增长模式。这意味着增长的单位经济管理半径与全球复制能力都有可能发生变化。这也是为什么我们把AI财富管理部看成诺亚未来非常重要的一条增长曲线。

Zander Yin: 在新加坡，第一个是完整的样本，来验证这套模式在市场上的成功性。从去年四季度启动到现在，新加坡AUM从不到1亿美元增长到二季度超过4亿美元，并在今年的七月份实现了单月的盈利。更加值得关注的是它的增长方式。目前，AI赋能的团队已经承接92%的客户的日常服务，再由持牌团队负责合规与专业的交付。这使得专业人员可以把大量时间从重复性的行政事务、信息的整理和标准服务中释放出来，更多投入真正需要人类完成的事情，理解客户，建立信任，判断需求，进行重要的决策沟通。同时，外部合作伙伴贡献了42%的新增AUM。下半年新加坡募集1.58亿美元，同比增长126%。而这个增长的全过程没有依赖RM人数的大规模的扩张。对我们而言，这组数字的重要意义不仅是新加坡业务增长，而是它第一次证明，诺亚有可能把财富管理从过去高度依赖招募RM的增长模式，逐渐转变为AI平台，加专业持牌人员，加生态伙伴的增长模式。这意味着增长的单位经济、管理半径与全球复制能力都有可能发生变化。这也是为什么我们把AI财富管理部看成诺亚未来非常重要的一条增长曲线。

Zander Yin: [Foreign language]

Speaker #2: Singapore is the first market where we have fully tested this model. From its launch in the fourth quarter of last year, Singapore AUM grew from less than US$100 million to more than US$400 million by the second quarter.

Doreen Chiu: Singapore is the first market where we have fully tested this model. From its launch in Q4 of last year, Singapore AUM grew from less than USD 100 million to more than USD 400 million by Q2, and the business achieved monthly profitability in July. What is even more important is how that growth was achieved. Today, 92% of clients are covered by our AI-enabled service model for day-to-day engagement, while licensed professionals remain responsible for regulated activities, professional judgment, and compliant delivery. This allows our professionals to spend significantly less time on repetitive administrative work, information organization, and standardized servicing, and more time on the things that truly require human capability: understanding clients, building trust, identifying needs, and communicating around important decisions. AI at the same time, external ecosystem partners currently build 42% of our new AUM.

[Translator]: Singapore is the first market where we have fully tested this model. From its launch in Q4 of last year, Singapore AUM grew from less than USD 100 million to more than USD 400 million by Q2, and the business achieved monthly profitability in July. What is even more important is how that growth was achieved. Today, 92% of clients are covered by our AI-enabled service model for day-to-day engagement, while licensed professionals remain responsible for regulated activities, professional judgment, and compliant delivery. This allows our professionals to spend significantly less time on repetitive administrative work, information organization, and standardized servicing, and more time on the things that truly require human capability: understanding clients, building trust, identifying needs, and communicating around important decisions. AI at the same time, external ecosystem partners currently build 42% of our new AUM.

Speaker #2: And the business achieved monthly profitability in July. What's even more important is how that growth was achieved. Today, 92% of clients are covered by our AI-enabled service model.

Speaker #2: For day-to-day engagement, while licensed professionals remain responsible for regulated activities, professional judgment, and compliant delivery, this allows our professionals to spend significantly less time on repetitive administrative work, information organization, and standardized servicing, and more time on the things that truly require human capability.

Speaker #2: Understanding clients, building trust, identifying needs, and communicating around important decisions. At the same time, external ecosystem partners contributed 42% of our new AUM.

Doreen Chiu: Singapore raised USD 158 million in H1, up 126% year-over-year. This growth was achieved without relying on a large expansion in RM headcount. For us, the significance of these numbers goes well beyond the growth of the Singapore business itself. For the first time, they demonstrated that Noah may be able to gradually shift wealth management from a growth model highly depending on recruiting more RMs toward a model driven by an AI platform, licensed professional plus ecosystem partners. If this model continues to be validated, it has the potential to change our unit economics, management span, and ability to replicate our business globally. This is why we view the AI Wealth Management Department as a potentially important new growth curve for Noah.

[Translator]: Singapore raised USD 158 million in H1, up 126% year-over-year. This growth was achieved without relying on a large expansion in RM headcount. For us, the significance of these numbers goes well beyond the growth of the Singapore business itself. For the first time, they demonstrated that Noah may be able to gradually shift wealth management from a growth model highly depending on recruiting more RMs toward a model driven by an AI platform, licensed professional plus ecosystem partners. If this model continues to be validated, it has the potential to change our unit economics, management span, and ability to replicate our business globally. This is why we view the AI Wealth Management Department as a potentially important new growth curve for Noah.

Speaker #2: Singapore raised $158 million in the first half, up 126% year over year. This growth was achieved without relying on a large expansion in RM headcount.

Speaker #2: For us, the significance of these numbers goes well beyond the growth of the Singapore business itself. For the first time, they demonstrate that Noah may be able to gradually shift wealth management from a growth model highly dependent on recruiting more RMs toward a model driven by an AI platform.

Speaker #2: Licensed professionals plus ecosystem partners. If this model continues to be validated, it has the potential to change our unit economics, management span, and ability to replicate our business globally.

Speaker #2: This is why we view the AI Wealth Management Department as a potentially important new growth curve for Noah.

Zander Yin: 好，分业务板块来看，ARK财富上半年净收入人民币1.93亿元，其中二季度人民币8,895万元。歌斐资管上半年净收入人民币1.98亿元，美元私募一级募集4.1亿美元，同比增加13.4%。美元私募二级结构化及对冲基金产品募集5.9亿美元，同比增长33.2%。Glory传承上半年净收入人民币7,824万元，独立经纪人网络扩大至238人。我们的国际业务战略并没有发生变化，继续聚焦服务全球高净值的华人家庭，他们的资产、家庭、身份教育和下一代正在越来越地全球化。过去要在香港、新加坡、日本、加拿大、澳洲、英国、欧洲乃至美国同时服务这些客户，需要庞大的本地RM和运营组织，因此很难实现经济有效的全球覆盖。AI财富管理部改变的正是这个全球化的成本结构。过去很多因为客户密度不够而无法规模化经济覆盖的市场，未来都有可能通过AI财富管理部加当地的持牌团队和生态伙伴的方式进入。所以我们常常说AI让诺亚服务全球华人这件事情第一次真正具备规模化的可能性。

Zander Yin: [Foreign language]

Speaker #3: 好，分分业务板块来看，ARK财富上半年净收入人民币1.93亿元，其中二季度人民币8,895万元。Olio资管上半年净收入人民币1.98亿元，美元私募一级募集4.1亿美元，同比增长13.4%。美元私募二级结构化及对冲基金产品募集5.9亿美元，同比增长33.2%。Glory传承上半年净收入人民币7,824万元，独立经纪人网络扩大至238人。我们的国际业务战略并没有发生变化，继续聚焦服务全球高净值的华人家庭。他们的资产家庭身份、教育和下一代正在越来越的全球化。过去要在香港、新加坡、日本、加拿大、澳洲、英国、欧洲，乃至美国同时服务这些客户，需要庞大的本地RM和运营组织。因此很难实现经济有效的全球覆盖。AI财富管理部改变的正是这个全球化的成本结构。过去很多因为客户密度不够而无法规模化经济的经济覆盖的市场，未来都有可能通过AI财富管理部加当地的持牌团队和生态伙伴的方式进入。所以我们说，我们常常说AI让诺亚服务全球华人这件事情，第一次真正具备规模化的可能性。

Doreen Chiu: Looking at our international business by segment. ARK Wealth generated net revenues of RMB 193 million in H1, including RMB 88.65 million in Q2. Gopher Asset Management generated net revenues of RMB 198 million in H1. USD denominated private equity fundraising reached USD 410 million, up 13.4% year-over-year. USD denominated structured products and hedge fund fundraising reached USD 590 million, up 33.2%. Glory generated net revenues of RMB 78.24 million in H1, while its independent broker network expanded to 238 professionals. Our international strategy has not changed. We remain focused on serving Chinese high-net-worth families around the world. Their assets, families, residency, education, and next generation planning are becoming increasingly global. Historically, serving these clients simultaneously across Hong Kong, Singapore, Japan, Canada, Australia, the UK, Europe, and the United States would have required a large local RM and operating organization in every market.

[Translator]: Looking at our international business by segment. ARK Wealth generated net revenues of RMB 193 million in H1, including RMB 88.65 million in Q2. Gopher Asset Management generated net revenues of RMB 198 million in H1. USD denominated private equity fundraising reached USD 410 million, up 13.4% year-over-year. USD denominated structured products and hedge fund fundraising reached USD 590 million, up 33.2%. Glory generated net revenues of RMB 78.24 million in H1, while its independent broker network expanded to 238 professionals. Our international strategy has not changed. We remain focused on serving Chinese high-net-worth families around the world. Their assets, families, residency, education, and next generation planning are becoming increasingly global. Historically, serving these clients simultaneously across Hong Kong, Singapore, Japan, Canada, Australia, the UK, Europe, and the United States would have required a large local RM and operating organization in every market.

Speaker #2: Looking at our international business by segment, ARK Wealth generated net revenues of RMB 193 million in the first half, including RMB 88.65 million in the second quarter.

Speaker #2: All of asset management generated net revenues of renminbi 198 million in the first half. US dollar denominated private equity fundraising reached the US dollar 410 million, up 13.4% year over year.

Speaker #2: US dollar denominated structure product and hedge fund fundraising reached the US dollar 590 million, up 33.2%. Glory generated net revenues of renminbi 78.25 million in the first half, while its independent broker network expanded to 238 professionals.

Speaker #2: Our international strategy has not changed. We remain focused on serving Chinese high net worth families around the world. Their assets and families, rather than just residency, application, and next generation planning, are becoming increasingly global.

Speaker #2: Historically, serving these clients simultaneously across Hong Kong, Singapore, Japan, Canada, Australia, the UK, Europe, and the United States would have required a large local RM and operating organization in every market.

Doreen Chiu: That made economically efficient global coverage extremely difficult. Yet the AI Wealth Management Department changes the core structure of globalization. Markets that previously could not be economically covered because of insufficient client density may increasingly become addressable through a combination of the AI Wealth Management Department, local licensed professionals, and ecosystem partners. This is why we often say AI is making it possible for the first time for Noah to serve Chinese high-net-worth families around the world at scale.

[Translator]: That made economically efficient global coverage extremely difficult. Yet the AI Wealth Management Department changes the core structure of globalization. Markets that previously could not be economically covered because of insufficient client density may increasingly become addressable through a combination of the AI Wealth Management Department, local licensed professionals, and ecosystem partners. This is why we often say AI is making it possible for the first time for Noah to serve Chinese high-net-worth families around the world at scale.

Speaker #2: That may make economically efficient global coverage extremely difficult. Yet, the AI wealth management department changes the core structure of globalization. Markets that previously could not be economically covered because of insufficient client density may increasingly become addressable through a combination of the AI wealth management department, local licensed professionals, and ecosystem partners.

Speaker #2: This is why we often say AI is making it possible, for the first time, for Noah to serve Chinese high-net-worth families around the world at scale.

Zander Yin: 好，第四个部分是下半年的工作重点，从一个样本走向一套可复制的系统。一季度我们提出正在形成三个前台协同的新模式，就是AI赋能的RM、AI的财富管理部以及AI+的生态拓展。如果说一季度是提出并验证这个初步的验证，那么二季度最大进展是AI财富管理部已经出现了第一个经营样本。那下半年的核心任务就是从一个样本走向一套可跨场复制的系统。我们具体聚焦在四件事情上面。第一个，把新加坡的AI财富管理部模式复制到更多的市场。新加坡模式已经完成了从启动AUM增长到单元盈利的第一阶段的验证。接下来我们正在把这一模式复制到香港和日本，并计划逐步进入加拿大、澳洲、英国和欧洲。我们不会简单复制传统财富管理公司的重资产开店的模式。我们的基本架构会是中央的AI财富管理能力，再加上当地的持牌的专业的团队，再加上当地的生态合作伙伴。AI负责放大平台的服务能力，而持牌团队负责专业判断与合规的交付。生态伙伴帮助我们用更低的固定成本来触达更多的客户。如果这一模式可以持续复制，我们认为它会显著改善诺亚国际业务未来的单位经济。

Zander Yin: [Foreign language]

Speaker #3: 好，第四个部分是下半年的工作重点。从一个样本走向一套可复制的一个系统。一季度我们提出正在形成三个前台协同的新模式，就AI赋能的RM、AI的财富管理部以及AI家的生态拓展。如果说一季度是提出并验证这个初步的验证，那么二季度最大进展是AI财富管理部已经出现了第一个经营样板。那下半年的核心任务就是从一个样板走向一套可复制、可可可跨市场复制的系统。我们具体聚焦在四件事情上面。第一个，把新加坡的AI财富管理部模式复制到更多的市场。新加坡模式已经完成的从启动AUM增长到单月盈利的第一阶段的验证。接下来我们正在把这一模式复制到香港和日本，并计划逐步进入加拿大、澳洲、英国和欧洲。我们不会简单复制传统财富管理公司的重资产开店的模式。我们的基本架构会是中央的呃AI财富管理能力，再加上当地的持牌的专业的团队，再加上当地的生态合作伙伴。AI负责放大平台的服务能力，而持牌团队负责专业判断与合规的交付。生态伙伴帮助我们用更低的固定成本来触达更多的客户。如果这一模式可以持续复制，我们认为它会显著改善诺亚国际业务未来的单位经济。

Doreen Chiu: Coming to the last part of this presentation would be the H2 priorities from one proof point to a replicable system. In Q1, we introduced the three front office engines that are beginning to shape our new operating model. AI empowers RM, the AI Wealth Management Department, and AI plus ecosystem expansion. If Q1 was about introducing and initially validating this model, then the most important progress in Q2 was that the AI Wealth Management Department produced its first operating proof point. Our priority for H2 is to move from one proof point toward a system that can be replicated across markets. We will focus on four major areas. First, replicate the Singapore AI Wealth Management Department model across more markets. The Singapore model has completed its first stage of validation from launch to AUM growth to monthly profitability.

[Translator]: Coming to the last part of this presentation would be the H2 priorities from one proof point to a replicable system. In Q1, we introduced the three front office engines that are beginning to shape our new operating model. AI empowers RM, the AI Wealth Management Department, and AI plus ecosystem expansion. If Q1 was about introducing and initially validating this model, then the most important progress in Q2 was that the AI Wealth Management Department produced its first operating proof point. Our priority for H2 is to move from one proof point toward a system that can be replicated across markets. We will focus on four major areas. First, replicate the Singapore AI Wealth Management Department model across more markets. The Singapore model has completed its first stage of validation from launch to AUM growth to monthly profitability.

Speaker #2: Coming to the last part of this presentation, it would be the second half priorities—from one proof point to a replicable system. In the first quarter, we introduced the three front office engines that are beginning to shape our new operating model.

Speaker #2: AI empowers RM, the AI wealth management department, and AI plus ecosystem expansion. If Q1 was about introducing and initially validating this model, then the most important progress in Q2 was that the AI wealth management department produced its first operating proof point.

Speaker #2: Our priority for the second half is to move from one proof point toward a system that can be replicated across markets. We will focus on four major areas.

Speaker #2: First, replicate the Singapore AI wealth management department model across more markets. The Singapore model has completed its first stage of validation, from launch to AUM growth to monthly profitability.

Doreen Chiu: We are now working to replicate this model in Hong Kong and Japan, with plans to gradually expand into Canada, Australia, the UK, and Europe. We do not intend to replicate the traditional wealth management model of building a heavy physical footprint in every market. Our basic architecture will be centralized AI wealth management capabilities, plus local licensed professional, plus local ecosystem partners. AI amplifies the service capability of the platform. Licensed professionals provide professional judgment and compliant delivery. Ecosystem partners allows us to reach more clients with a lower fixed cost base. If this model can be replicated successfully, we believe it could meaningfully improve the future unit economics of our international business.

[Translator]: We are now working to replicate this model in Hong Kong and Japan, with plans to gradually expand into Canada, Australia, the UK, and Europe. We do not intend to replicate the traditional wealth management model of building a heavy physical footprint in every market. Our basic architecture will be centralized AI wealth management capabilities, plus local licensed professional, plus local ecosystem partners. AI amplifies the service capability of the platform. Licensed professionals provide professional judgment and compliant delivery. Ecosystem partners allows us to reach more clients with a lower fixed cost base. If this model can be replicated successfully, we believe it could meaningfully improve the future unit economics of our international business.

Speaker #2: We are now working to replicate this model in Hong Kong and Japan. We plan to gradually expand into Canada, Australia, the UK, and Europe.

Speaker #2: We do not intend to replicate the traditional wealth management model of building a heavy physical footprint in every market. Our basic architecture will be centralized AI wealth management capabilities, plus local licensed professionals, plus local ecosystem partners.

Speaker #2: AI amplifies the service capability of the platforms. Licensed professionals provide professional judgment and compliant delivery. Ecosystem partners allow us to reach more clients with a lower fixed cost base.

Speaker #2: If this model can be replicated successfully, we believe it could meaningfully improve the future unit economics of our international business.

Zander Yin: 第二，使用AI强化投资能力与carry的持续兑现。资产端，我们通过穿透近60个子基金的数据，持续观察全球优秀GP的共同投资与加仓的方向。在客户端，我们利用AI数据能力，提高产品跟客户之间的匹配的效率。这不是简单的产品推荐，我们的目标是理解客户真实的需求、风险承受能力、已有资产结构，以及历史的投资行为，再找到更合适的资产。客户获得好的投资结果，就会提高满意度和复投率，复投持续地推动AUM的增长，优质资产最终退出，又带来carry。这个飞轮已经开始转起来，下半年我们希望进一步提高这个体系的数据的深度与运行的效率。

Zander Yin: [Foreign language]

Speaker #1: Yeah, so your AI

Speaker #3: 强化投资能力 you carry the 持续兑现，资产端我们通过穿透近60个子基金的数据，持续观察全球优秀GP的共同投资与加仓的方向。在客户端，我们利用AI数据能力提高产品跟客户之间的匹配的效率。这不是简单的产品推荐，我们的目标是理解客户真实的需求、风险承受能力，以有资产结构以及历史的投资行为，再找到更合适的资产。客户获得好的投资结果就会提高满意度和复投率。复投持续的推动AUM的增长，优质资产最终退出又带来carry，这个飞轮已经开始转起来。下半年我们希望进一步提高这个体系的数据的深度与运行的效率。

Doreen Chiu: Second, use AI to strengthen investment capabilities and the sustainable realization of carry. On the asset side, we look through nearly 60 underlying funds and continuously analyze the common investment and follows-on investment decision of leading global GPs. On the client side, we use AI and data capabilities to improve the quality of product to client matching. This is not simply product recommendation. Our objective is to understand the client's real needs, risk tolerance, existing asset allocation, and historical investment behavior. Then we can identify the assets that are most appropriate for our client. When clients achieve strong investment outcomes, satisfaction and reinvestment rates would be improved. Reinvestment drives AUM growth, and when high quality assets ultimately realize their value, they generate carry. This flywheel has already begun to turn.

[Translator]: Second, use AI to strengthen investment capabilities and the sustainable realization of carry. On the asset side, we look through nearly 60 underlying funds and continuously analyze the common investment and follows-on investment decision of leading global GPs. On the client side, we use AI and data capabilities to improve the quality of product to client matching. This is not simply product recommendation. Our objective is to understand the client's real needs, risk tolerance, existing asset allocation, and historical investment behavior. Then we can identify the assets that are most appropriate for our client. When clients achieve strong investment outcomes, satisfaction and reinvestment rates would be improved. Reinvestment drives AUM growth, and when high quality assets ultimately realize their value, they generate carry. This flywheel has already begun to turn.

Speaker #2: Second, use AI to strengthen investment capabilities and the sustainable realization of carry. On the asset side, we look through Lily's 60 underlying funds and continuously analyze the common investment and follow-on investment decisions of leading robo GPs.

Speaker #2: On the client side, we use AI and data capabilities to improve the quality of product-to-client matching. This is not simply product recommendation.

Speaker #2: Our objective is to understand the client's real needs, risk tolerance, existing asset allocation, and historical investment behavior. Then we can identify the assets that are most appropriate for our client.

Speaker #2: When clients achieve strong investment outcomes, satisfaction and reinvestment rates are improved. Reinvestment drives AUM growth, and when high-quality assets ultimately realize their value, they generate carry.

Speaker #2: This flywheel has already begun to turn, and in the second half, we intend to further deepen the data foundation and improve the efficiency of this system.

Doreen Chiu: In the H2, we intend to further deepen the data foundation and improve the efficiency of this system.

[Translator]: In the H2, we intend to further deepen the data foundation and improve the efficiency of this system.

Zander Yin: 第三个是继续加强海外运营基础设施。本季度集团继续推进海外运营基础设施的建设。我们集团与美国持牌银行机构Column Bank，Column National Association建立了合作，以提升海外客户账户的开立、多币种的结算与支付的处理能力。这项合作是集团自2024年以来持续推进海外中后台能力建设的一部分，将支持香港、新加坡、美国和日本持牌实体，提高客户服务的效率和运营的可扩展性。相关服务仅面向符合当地适用法规的非中国内地居民客户提供。那为什么这些基础设施非常重要呢？是因为如果AI财富管理部未来要真正跨区域规模化，前台AI只是其中的一部分，账户交易、支付、合规和资产的执行都必须形成统一而高效的基础设施。前台AI化与后台平台化必须同时发生，全球扩张才能够真正形成规模经济。

Zander Yin: [Foreign language]

Speaker #3: 第三个是继续呃加强海外运营基础的建设设施啊。嗯，本季度集团继续推进海外运营基础设施的一个建设。我们集团与美国持牌银行机构Column Bank呃Column National Association建立了合作，以提升海外客户账户的开立、多币种的结算与支付的处理能力。这项合作是集团自2024年以来持续推进海外中后台能力建设的一部分，将支持香港、新加坡、美国和日本持牌实体提高客户服务的效率和运营可可创可运营的可扩展性。相关服务仅面向复合当地适用法规的非中国内地居民，客户的提供。那为什么这些基础设施非常重要呢？是因为如果AI财富管理部未来要真正跨区域规模化，前台AI只是其中的一部分，账户交易支付合规和资产的执行都必须形成统一而高效的基础设施。前台AI化与后台平台化必须同时发生，全球扩张才能够真正形成规模经济。

Doreen Chiu: Third, we will continue to strengthen our international operating infrastructure. During the quarter, the Group continued to strengthen the operating infrastructure supporting our international business development. The Group established a partnership with US licensed banking institution Column Bank, or Column National Association, to enhance account opening, multi-currency settlement, and payment processing capabilities for our international clients. This partnership is part of the international middle and back-office infrastructure we have been building since 2024, and is designed to improve client service efficiency and operating scalabilities across our licensed entities in Hong Kong, Singapore, the United States, and Japan. The relevant services are provided only to non-mainland Chinese residents, clients who meet applicable law regulatory requirements. Why does this infrastructure matter? Because if the AI Wealth Management Department is ultimately going to scale across markets, AI in the front office is only one part of the equation.

[Translator]: Third, we will continue to strengthen our international operating infrastructure. During the quarter, the Group continued to strengthen the operating infrastructure supporting our international business development. The Group established a partnership with US licensed banking institution Column Bank, or Column National Association, to enhance account opening, multi-currency settlement, and payment processing capabilities for our international clients. This partnership is part of the international middle and back-office infrastructure we have been building since 2024, and is designed to improve client service efficiency and operating scalabilities across our licensed entities in Hong Kong, Singapore, the United States, and Japan. The relevant services are provided only to non-mainland Chinese residents, clients who meet applicable law regulatory requirements. Why does this infrastructure matter? Because if the AI Wealth Management Department is ultimately going to scale across markets, AI in the front office is only one part of the equation.

Speaker #2: Third, we will continue to strengthen our international operating infrastructure. During the quarter, the Group continued to strengthen the operating infrastructure, supporting our international business development.

Speaker #2: The group established a partnership with U.S.-licensed banking institution Column Bank, or Column National Association, to enhance account opening, multi-currency settlement, and payment processing capabilities for our international clients.

Speaker #2: This partnership is part of the international middle and back office infrastructure we have been building since 2024 and is designed to improve client service efficiency and operating scalability across our licensed entities in Hong Kong, Singapore, the United States, and Japan.

Speaker #2: The relevant services are provided only to non-Mainland Chinese residents, clients who meet applicable law and regulatory requirements. Why does this infrastructure matter? Because if the AI wealth management department is ultimately going to scale across markets, AI in the front office is only one part of the equation.

Doreen Chiu: Account opening, transactions, payments, compliance, and asset execution must also operate through an integrated and efficient infrastructure. Front-office AI transformation and back-end platformization must happen together for global expansion to generate true economies of scale.

[Translator]: Account opening, transactions, payments, compliance, and asset execution must also operate through an integrated and efficient infrastructure. Front-office AI transformation and back-end platformization must happen together for global expansion to generate true economies of scale.

Speaker #2: Account opening, transactions, payments, compliance, and asset execution must also operate through an integrated and efficient infrastructure. Front office AI transformation and back-end platformization must happen together for global expansion to generate true economies of scale.

Zander Yin: 第四个是用AI的能力建立全球的生态伙伴的一个网络。针对企业端的业务的平台，我们累计AUM已经超过了3,300万美元。这个事业合伙人的机制已经开始启动了，首批合伙机构已经在香港和新加坡完成注册，所有法定业务均由持牌人员完成。我们正在逐渐看到第三个平台，AI加生态拓展开始与AI财富管理部形成链接。未来一个生态伙伴并不需要自己重新建设整套的产品研究、科技账户运营和合规基础设施。诺亚把这些基础设施建设好以后，生态合作伙伴可以在合规的前提下使用这些能力服务自己的客户。我们把金融基础设施建一次，全球网络就可以不断地复用，这也是我们希望实现的模式。用平台的能力来扩大服务的半径，而不是用固定成本扩大组织的半径。

Zander Yin: [Foreign language]

Speaker #3: 第四个是有AI的能力建立全球的生态伙伴的一个网络。那针对企业家的业务的平台，我们累计AUM已经超过了3,300万美元。嗯，这个事业合伙人的机制已经开始启动了，首批合伙机构已经在香港和新加坡啊完成注册。所有法定业务均由持牌人员完成。我们正在看到逐渐看到第三个前台AI加生态拓展开始与AI财富管理部形成链接。未来一个生态伙伴并不需要自己重新建设整套的产品研究科技账户运营和合规基础设施。若要把这些基础设施建设好以后，生态合作伙伴可以在合规的前提下使用这些能力服务自己的客户。我们把经营基础设施建一建一次，全球网络就可以不断的复用。这也是我们希望实现的模式，用平台的能力来扩大服务的半径，而不是用固定成本扩大组织的半径。

Doreen Chiu: Last but not least, build a global ecosystem partner network powered by AI. Our enterprise-focused platform has now accumulated more than USD 30 million in AUM. Our business partner program has been launched with the first group of partner institutions registered in Hong Kong and Singapore. All regulated activities are conducted by licensed professionals. We are beginning to see our front office engine, AI plus ecosystem expansion connect with the AI Wealth Management Department. In the future, an ecosystem partner should not need to rebuild an entire infrastructure converting product research, technology, accounts, operations, and compliance. Once Noah has built this infrastructure, our partners can leverage these capabilities within their appropriate regulatory framework to better serve their own clients. We build the financial infrastructure once and the global network can reuse it rapidly.

[Translator]: Last but not least, build a global ecosystem partner network powered by AI. Our enterprise-focused platform has now accumulated more than USD 30 million in AUM. Our business partner program has been launched with the first group of partner institutions registered in Hong Kong and Singapore. All regulated activities are conducted by licensed professionals. We are beginning to see our front office engine, AI plus ecosystem expansion connect with the AI Wealth Management Department. In the future, an ecosystem partner should not need to rebuild an entire infrastructure converting product research, technology, accounts, operations, and compliance. Once Noah has built this infrastructure, our partners can leverage these capabilities within their appropriate regulatory framework to better serve their own clients. We build the financial infrastructure once and the global network can reuse it rapidly.

Speaker #2: Last but not least, build a global ecosystem partner network powered by AI. Our enterprise-focused platform has now accumulated more than $30 million in AUM.

Speaker #2: Our business partner program has been launched, with the first group of partner institutions registered in Hong Kong and Singapore. All regulated activities are conducted by licensed professionals.

Speaker #2: We are beginning to see our front office engine, AI Plus, ecosystem expansion connect with the AI Wealth Management department. In the future, an ecosystem partner should not need to rebuild an entire infrastructure—converting products, research, technology, accounts, operations, and compliance.

Speaker #2: Once NOAH has built this infrastructure, our partners can leverage these capabilities within the appropriate regulatory framework to better serve their own clients. We built the financial infrastructure once, and the global network can reuse it rapidly.

Doreen Chiu: This is the model we are looking forward and we are working toward expanding our service reach through platform capabilities rather than expanding our organizational footprint through tech calls.

[Translator]: This is the model we are looking forward and we are working toward expanding our service reach through platform capabilities rather than expanding our organizational footprint through tech calls.

Speaker #2: This is the model we are looking forward to and working toward: expanding our service reach through platform capabilities, rather than expanding our organizational footprint through fixed costs.

Speaker #3: 嗯，那我们的话呢，仍然确实还是处于转型的一个过程之中。我们也不回避短期的承压点是明显的，但是与其几个季度以前的相比，我们现在对未来经营模式的信心来自于越来越多真实的数据。一季度新的经营模式已经开始被逐步的验证，到了二季度，我们已经看到利润AUM的增长、人效的提升、新加坡的样板，以及一套开始能够复制的机制。尤其是AI财富管理部的落地，让我们第一次比较清晰的看到了AI不仅仅帮助诺亚把今天的事情做得更便宜、更快，它有可能帮助我们做过去传统财富管理模式做不到的事情。在传统模式下面，全球扩张意味着不断的招聘IM，建设办公室，增加固定成本。而在新的模式下，我们希望通过AI财富管理部加持派的专业团队和全球金融基础设施，再加上生态的伙伴的一个网络去服务分布在全球不同市场的高净值的华人家庭。如果这套模式持续被验证在诺亚未来的增长，将越来越少的取决于增加多少人，而越来越多的取决于我们的平台能够服务多少客户，我们的AI能够理解多少客户，我们的资产平台能够创造多少价值，以及我们的生态网络能够连接多少的专业的伙伴。这才是我们所理解的AI时代财富管理公司的真正变化。诺亚正从一家传统的财富管理机构逐步演演进为一个由AI驱动、全球化、服务全球华人家庭的财富管理的一个平台。这条路不会一蹴而就，但从这个季度开始，我们已经不只是一个愿景，开始变成一个有客户、有AUM、有收入、有利润，并且可以复制的经营的模式。财富管理是可以用一辈子一生去做的事业，而我们谢谢大家接下来我把时间交给CFO潘青，为大家介绍更详细的财务的表现。

Zander Yin: 我们仍然确实还是处于转型的一个过程之中，我们也不回避短期的承压点是明显的，但是与几个季度以前的相比，我们现在对未来经营模式的信心来自于越来越多真实的数据。一季度新的经营模式已经开始被逐步地验证。到了二季度，我们已经看到利润AUM的增长，人效的提升，新加坡的样板，以及一套开始能够复制的机制，尤其是AI财富管理部的落地，让我们第一次比较清晰地看到了，AI不仅仅帮助诺亚把今天的事情做得更便宜、更快，它有可能帮助我们做过去传统财富管理模式做不到的事情。在传统模式下面，全球扩张意味着不断地招聘RM，建设办公室，增加固定成本。而在新的模式下，我们希望通过AI财富管理部加持它的专业团队和全球金融基础设施，再加上生态的伙伴的一个网络，去服务分布在全球不同市场的高净值的华人家庭。如果这套模式持续被验证，诺亚未来的增长将越来越少地取决于增加多少人，而越来越多地取决于我们的平台能够服务多少客户，我们的AI能够理解多少客户，我们的资产平台能够创造多少价值，以及我们的生态网络能够连接多少专业的伙伴，这才是我们所理解的AI时代财富管理公司的真正变化。诺亚正从一家传统的财富管理机构逐步演进为一个由AI驱动全球化，服务全球华人家庭的财富管理的一个平台。这条路不会一蹴而就，但从这个季度开始，我们已经不只是一个愿景，开始变成一个有客户，有AUM，有收入，有利润，并且可以复制的经营的模式。财富管理是可以用一辈子、一生去做的事业。最后我们谢谢大家。接下来我把时间交给CFO潘青，为大家介绍更详细的财务的表现。

Zander Yin: [Foreign language]

Doreen Chiu: We remain in the middle of transformation. The near-term pressure points are transparent, and we will not avoid them. But compared with several quarters ago, our confidence in the future operating model is increasingly supported by real operating data. in Q1, the new operating model began to show initial signs of validation. By Q2, we are already seeing possibility AUM growth, improved positivity, a working Singapore proof point and a model that is beginning to demonstrate replay capability. Most importantly, the implementation of the AI Wealth Management Department has given us a much clearer view of something we believe is fundamental. AI is not simply helping Noah do what we already do faster and at a lower cost, it may allow us to do things that were not economically possible under the traditional wealth management model.

[Translator]: We remain in the middle of transformation. The near-term pressure points are transparent, and we will not avoid them. But compared with several quarters ago, our confidence in the future operating model is increasingly supported by real operating data. in Q1, the new operating model began to show initial signs of validation. By Q2, we are already seeing possibility AUM growth, improved positivity, a working Singapore proof point and a model that is beginning to demonstrate replay capability. Most importantly, the implementation of the AI Wealth Management Department has given us a much clearer view of something we believe is fundamental. AI is not simply helping Noah do what we already do faster and at a lower cost, it may allow us to do things that were not economically possible under the traditional wealth management model.

Speaker #2: We remain in the middle of transformation. The near-term pressure points are transparent, and we will not avoid them. But compared with several quarters ago, our confidence in the future offering model is increasingly supported by real operating data.

Speaker #2: In the first quarter, the new operating model began to show initial signs of validation. By the second quarter, we are already seeing profitability, AUM growth, improved positivity, a working Singapore proof point, and a model that is beginning to demonstrate with capital plate capability.

Speaker #2: Most importantly, the implementation of the AI wealth management department has given us a much clearer view of something we believe is fundamental. AI is not simply helping Noah do what we already do faster.

Speaker #2: And at a lower cost, it may allow us to do things that were not economically possible under the traditional wealth management model. Under the traditional model, global expansion meant continuously hiring more RMs, opening more offices, and adding more fixed costs.

Doreen Chiu: Under the traditional model, global expansion meant continuously hiring more RMs, opening more offices, and adding more fixed costs. Yet, under the new model, we aim to serve Chinese high-net-worth families across different markets through a combination of an AI-powered platform, plus licensed professional and global financial infrastructures and an ecosystem partner network. If this model continues to be validated, Noah's future growth will become progressively less dependent on how many people we add, and increasingly depend on, first, how many clients our platform can serve; second, how deeply our AI can understand those clients; third, how much value our investment platform can create, and how many professional partners our ecosystem can connect. This, in our view, is the fundamental transformation of a wealth management company in the AI Earth.

[Translator]: Under the traditional model, global expansion meant continuously hiring more RMs, opening more offices, and adding more fixed costs. Yet, under the new model, we aim to serve Chinese high-net-worth families across different markets through a combination of an AI-powered platform, plus licensed professional and global financial infrastructures and an ecosystem partner network. If this model continues to be validated, Noah's future growth will become progressively less dependent on how many people we add, and increasingly depend on, first, how many clients our platform can serve; second, how deeply our AI can understand those clients; third, how much value our investment platform can create, and how many professional partners our ecosystem can connect. This, in our view, is the fundamental transformation of a wealth management company in the AI Earth.

Speaker #2: Yet under the new model, we aim to serve Chinese high net worth families across different markets through a combination of an AI AI powered platform plus licensed professional and global financial infrastructures, and an ecosystem partner network.

Speaker #2: If this model continues to be validated, NOAH's future growth will become progressively less dependent on how many people we add and increasingly depend on, first, how many clients our platform can serve; second, how deeply our AI can understand those clients; third, how much value our investment platform can create; and fourth, how many professional partners our ecosystem can connect.

Speaker #2: This, in our view, is the fundamental transformation of a wealth management company in the AI era. NOAH is evolving from a traditional wealth management institution into an AI-driven global wealth management platform serving Chinese high-net-worth families around the world.

Doreen Chiu: Noah is evolving from a traditional wealth management institution into an AI-driven global wealth management platform serving Chinese high-net-worth families around the world. This transformation will not happen overnight, but beginning this quarter, it is no longer simply a vision. It is becoming a real operating model which clients AUM revenue profitability and increasingly evidence of replicable across markets. Wealth management is a lifelong commitment. Thank you for your time, and I will now turn the call over to our CFO, Grant, who will walk you through our financial results in greater detail.

[Translator]: Noah is evolving from a traditional wealth management institution into an AI-driven global wealth management platform serving Chinese high-net-worth families around the world. This transformation will not happen overnight, but beginning this quarter, it is no longer simply a vision. It is becoming a real operating model which clients AUM revenue profitability and increasingly evidence of replicable across markets. Wealth management is a lifelong commitment. Thank you for your time, and I will now turn the call over to our CFO, Grant, who will walk you through our financial results in greater detail.

Speaker #2: This transformation will not happen overnight, but beginning this quarter, it is no longer simply efficient. It is becoming a real operating model with clients, AUM revenue, profitability, and increasingly, evidence of it being repeatable across markets.

Speaker #2: Wealth management is a lifelong commitment. Thank you for your time, and I will now turn the call over to our CFO, Grant, who will walk you through our financial results in greater detail.

Speaker #3: Thank you, Doreen, and thank you, Zander. Good day to everyone joining us. As Zander just laid out in great detail, we are at a turning point in upgrading our business.

Grant Pan: Thank you, Doreen, and thank you, Xander, and good day to everyone joining us. As Xander laid out in great details just now, we are at the turning point of upgrading our business. Our Q2 was about the quality of our profitability rather than pure growth in revenue. Our operating profit was RMB216 million in the Q2, up 34% year-over-year, with operating margin at 34.8%. Non-GAAP net income was RMB238 million, up 25.9% year-over-year and 77.8% sequentially. For the H1 of 2026, operating profit was RMB452 million, up 30.3%, with a record half-year margin of 36.3%. This was also our third consecutive quarter of year-over-year operating profit growth. The cost optimization behind the margin expansion is structural rather than cyclical. Operating costs fell 13.7% year-over-year, and total headcount streamlined about 17%. For the H1, costs were down 11.6% on flat growth in revenue.

Speaker #3: Our second quarter was about the quality of our profitability rather than pure growth in revenue. Our operating profit was RMB 216 million in the second quarter.

Speaker #3: Up 34% year over year, with operating margin at 34.8%. Non-GAAP net income was RMB 238 million, up 25.9% year over year and 77.8% sequentially.

Speaker #3: For the first half of 2026, operating profit was RMB 452 million, up 30.3%, with a record half-year margin of 36.3%. This was also our third consecutive quarter of year-over-year operating profit growth.

Speaker #3: The cost optimization behind the margin expansion is structural; residents are cyclical. Operating costs fell 13.7% year over year, and total headcount was streamlined by about 17%. For the first half, costs were down 11.6%, with flat unflagged growth in revenue.

Grant Pan: Delivering the same revenue from a materially smaller cost base is what produced margin and efficiency. Importantly, this is increasingly about more than simply reducing overheads. It reflects a leaner operating model enabled by AI and process redesign. As our CEO discussed, US dollar AUM grew 11.7% year-over-year, even as overseas RM headcount declined 36.2%. This is early financial evidence that we are beginning to support a larger asset base with a more efficient organization. Carry or performance-based income was RMB138 million in the quarter and RMB238 million in the H1. Carry is not a one-off event in our model. We have recognized performance income in every year we have reported, and it grew 78% in 2025. In Hong Kong alone, we have distributed $158 million of carry to date. Supporting the story is a US dollar asset base that keeps growing.

Speaker #3: Delivering the same revenue from a materially smaller cost base is what produced the margin and efficiency. Importantly, this is increasingly about more than simply reducing overheads.

Speaker #3: It reflects a leaner operating model enabled by AI and process redesign. As our CEO discussed, U.S. dollar AUM grew 11.7% year-over-year, even as overseas RM headcount declined 36.2%.

Speaker #3: This is early financial evidence that we're beginning to support a larger asset base with a more efficient organization. Carry or performance-based income was RMB 138 million in the quarter and RMB 238 million in the first half.

Speaker #3: Carry is not a one-off event in our model. We have recognized performance income in every year we have reported, and it grew 78% in 2025.

Speaker #3: In Hong Kong alone, we have distributed $158 million of carry to date. Supporting the story is a U.S. dollar asset base that keeps growing: U.S. dollar AUM up 11.7% and U.S. dollar AUA up 7.5% year over year.

Grant Pan: US dollar AUM up 11.7% and US dollar AUA up 7.5% year-over-year. Of course, it is challenging to forecast carry income because realization depends on market conditions, exit opportunities, and the timing of underlying portfolio realizations. With that, let me take you through the details. Net revenue. Q2 net revenue was RMB620 million, down 1.5% year-over-year and 0.9% sequentially. H1 net revenue was RMB1.25 billion, in line with last year. One-time commission were RMB87 million, down 44.1% year-over-year. The decline is mainly attributed to insurance income, where commissions fell 58.2% year-over-year. This also reflects competition intensified in this market and our own position to sort of walk away from business that does not meet our margin and suitability standards. Recurring management fees were RMB360 million, down 10.8% year-over-year and 5% sequentially as legacy RMB private equity assets run off. A moment more on carry.

Speaker #3: Of course, it's challenging to forecast carry income, because realization depends on market conditions, exit opportunities, and the timing of underlying portfolio realizations. So, with that, let me take you through the details.

Speaker #3: Second quarter net revenue was RMB 620 million, down 1.5% year over year and 0.9% sequentially. First half net revenue was RMB 1.25 billion, in line with last year.

Speaker #3: One-time commissions were RMB 87 million, down 44.1% year over year. The decline is mainly attributed to insurance income, where commissions fell 58.2% year over year.

Speaker #3: This also reflects that competition has intensified in this market, and our own position to sort of walk away from business that does not meet our margin and suitability standards.

Speaker #3: Recurring management fees were RMB 360 million, down 10.8% year over year and 5% sequentially, as legacy RMB private equity assets run off. A moment more on carry.

Speaker #3: Because it's often read as a windfall, but it's not. The reason is structure. Let me explain why it recurs. First, our investment work is institutionalized across 67 private equity funds built over more than a decade.

Grant Pan: Because it is often read as a windfall, it is not. The reason is structure. Let me explain why it recurs. First, our investment work is institutionalized across 67 private equity funds built over more than a decade. We have looked through holdings across more than 50 sub-funds. Our multiple funds have invested across various vintages, such early financing rounds of notable holdings such as ByteDance and Anthropic. When realization of carry depends on the timing and form of exits, this diversified portfolio across vintages provides a broad underlying base from which future performance-based income may be realized over time. To caveat on that, carry is realities driven and will not be smooth or linear from period to period, and should not be annualized off any single quarter. Accrued amounts move with valuations in both directions. We do not accrue carry or forecast carry. We record it on cash basis.

Speaker #3: We've looked through the holdings across more than 50 sub-funds. Our multiple funds have invested across various vintages, since early financing rounds of notable holdings such as ByteDance and Anthropic.

Speaker #3: When realization of carry depends on the timing and form of exits, this diversified portfolio across vintages provides a broad underlying base from which future performance-based income may be realized over time.

Speaker #3: To caveat on that, carry as realized is driven and will not be smooth or linear from period to period. It should not be annualized off any single quarter.

Speaker #3: Accrued amounts move with valuations in both directions. We do not accrue carry or forecast carry; we record it on a cash basis. We do not budget on peak carry.

Grant Pan: We do not budget on peak carry, and one-off gains do not enter our fixed cost base. Turning to the drivers, transaction values of distribution were RMB17.2 billion in the quarter, up 1.1% year-over-year and down 26.4% sequentially. H1 volume was RMB40.5 billion, up 22.4%. US dollar products grew 8.3% year-over-year and were the engine in the quarter. Two things drove the sequential decline. The first quarter was an exceptionally strong RMB fundraising quarter, and we advised clients in June to position ahead of the A-share adjustment that did come in July. We track this line closely because volume drives commissions today and builds the asset base that pays management fees later. Our US dollar asset base grew. US dollar AUM reached $6.5 billion, up 11.7% year-over-year. AUA reached $9.8 billion, up 7.5%. International registered clients were up 11% year-over-year.

Speaker #3: And one-off gains do not enter our fixed cost base. Turning to the drivers, transaction value of distribution was RMB 17.2 billion in the quarter, up 1.1% year-over-year and down 26.4% sequentially.

Speaker #3: First half volume was RMB 40.5 billion, up 22.4%. US dollar products grew 8.3% year over year and were the engine in the quarter. Two things drove the sequential decline.

Speaker #3: The first quarter was an exceptionally strong RMB fundraising quarter, and with wise funds in June to position ahead of the A-share adjustment that did come in July.

Speaker #3: We tracked this line closely because volume drives commissions today and builds the asset base that pays management fees later. Our U.S. dollar asset base grew.

Speaker #3: US dollar AUM reached $6.5 billion, up 11.7% year over year. AUA reached $9.8 billion, up 7.5%. International registered clients were up 11% year over year.

Grant Pan: That is the clearest evidence our mix is moving toward investment-related business. More importantly, this asset growth was achieved when overseas RM headcount declined 36.2% year-over-year. We view this as early decoupling between asset growth and RM headcount growth as an important indicator of the operating leverage we are seeking to build through AI-enabled servicing and our evolving front office model, as Zander just laid out. As highlighted earlier, total operating cost and expense continues to drop. Looking at the breakdown, total compensation benefits for the Q2 fell 13.1% year-over-year to RMB260 million, where for the H1, compensation was down 12.7% to RMB527 million. This continues the efficiency work we have discussed for several quarters, with AI and process redesign allowing for a smaller organization to carry the same service coverage. As Zander discussed, the AI Wealth Management Department represents a further evolution of this model.

Speaker #3: That is the clearest evidence our mix is moving forward: investment-related business. More importantly, this asset growth was achieved when overseas RM headcount declined 36.2% year over year.

Speaker #3: We view this as early decoupling between asset growth and RM headcount growth, as an important indicator of the operating leverage we're seeking to build through AI-enabled servicing and our evolving front office model, as Vander just laid out.

Speaker #3: As

Speaker #1: As highlighted earlier, total operating costs and expenses continue to drop. Looking at the breakdown, total compensation and benefits for the second quarter fell 13.1% year over year to RMB 260 million, while for the first half, compensation was down 12.7% to RMB 527 million.

Speaker #1: This continues the efficiency work we have discussed for several quarters with AI and process redesign , allowing for smaller organization to carry the same service coverage as discussed , the AI Wealth Management Department represents a further evolution of this model using AI and centralised service capabilities for high frequency and standardised client engagement When licensed professionals remain responsible for regulated activities , professional judgement and compliance delivery , the early financial evidence is encouraging .

Grant Pan: Using AI and centralized service capabilities for high frequency and standardized client engagement when licensed professionals remain responsible for regulated activities, professional judgment, and compliant delivery. The early financial evidence is encouraging. Overseas RM dropped year-over-year about 36%, while US dollar AUM increased 12%, 11.7%. In Singapore, where we are testing this model end-to-end, AUM has grown from less than $100 million to more than $400 million, and the business achieved monthly profitability in July. Obviously, it is still early, but if this model proves replicable, future asset growth can become progressively less dependent on proportional increases in RM headcount and fixed cost. On the non-personnel side, Q2 selling expenses dropped 10% year-over-year, while for the H1, they were down 18.6% to RMB92 million. Moving on, operating profit and non-GAAP net income.

Speaker #1: Overseas , I dropped year over year about 36% when US dollar AUM increased 12% 11.7% in Singapore , where we're testing this model end to end UEM has grown from less than US dollar 100 million to more than US dollar 400 million , and the business achieved monthly profitability in July Obviously , it's still early , but if this model proves replicable , future asset growth can become progressively less dependent on proportional increases in headcount and fixed costs On the non-personnel side , second quarter selling expenses dropped 10% year over year , while for the first half they were down 18.6% to RMB 92 million .

Speaker #1: Moving on to operating profit and non-GAAP net income . Operating profit for the second quarter was RMB 216 million , up 34% year over year , delivering an operating margin of 34.8% , up 9.2 percentage points from 25.6% a year ago .

Grant Pan: Operating profit for the Q2 was RMB216 million, up 34% year-over-year, delivering an operating margin of 34.8%, up 9.2 percentage points from 25.6% a year ago. On a sequential basis, operating profit was down 8.7%, tracking lower quarterly net revenues. For the H1, operating profit reached RMB452 million, up 30.3% year-over-year with a record margin of 36.3%. The key takeaway is conversion efficiency. Even on flat revenue, our cost discipline allowed a significantly higher portion of revenue to flow straight to operating income. On the bottom line, Q2 non-GAAP net income reached RMB238 million, up about 26% year-over-year at 77.8% sequentially, with non-GAAP net margin expanding to 38.4%. For the H1, non-GAAP net income reached RMB372 million, up about 4% year-over-year. On a GAAP basis, Q2 net income attributable to shareholders was RMB232 million, up 30% year-over-year and 86.2% sequentially.

Speaker #1: On a sequential basis , operating profit is down 8.7% . Tracking lower quality net revenues for the first half . Operating profit reached RMB 452 million , up 30.3% year over year , with a record margin of 36.3% .

Speaker #1: The key takeaway is conversion efficiency , even on flat revenue . Our cost discipline allowed significantly higher proportion of revenue to flow straight to operating income On the bottom line , second quarter non-GAAP net income reached RMB 238 million , up about 26% year over year and 77.8% sequentially , with non-GAAP net margin expanding to 38.4% for the first half .

Speaker #1: non-GAAP net income reached RMB 372 million , up about 4% year over year . On a GAAP basis , second quarter net income attributable to shareholders was RMB 232 million , up 30% year over year , and 86.2% sequentially Reconciliation items remain modest , with share based compensation falling 44% year over year to 7.2 million in the quarter Two non-cash items below the operating line also contributed to that result , which might naturally raise questions .

Grant Pan: Reconciliation items remain modest, with share-based compensation falling 44% year-over-year to RMB17.2 million in the quarter. Two non-cash items below the operating line also contributed to that result, which might naturally raise questions, so I want to clarify here. Investment income was a +RMB42 million in the quarter against a loss of RMB14 million a year ago, and RMB40 million in H1 against a loss of RMB8 million. That lies our own portfolio at work. The income from equity and affiliates was a gain of RMB55 million in the quarter after charge in Q1, leaving a loss of RMB10 million for the half against a gain of RMB36 million in H1 of the last year. While these are non-cash items, there is a broader point, product access and distribution are commoditizing.

Speaker #1: So I want to clarify here. Investment income was a positive RMB 42 million in the quarter, against a loss of RMB 14 million a year ago, and RMB 40 million in the first half, against a loss of RMB 8 million.

Speaker #1: The line for portfolio-at-work income from equity in affiliates was a gain of RMB 55 million in the quarter, after a charge in the first quarter, leaving a loss of RMB 10 million for the half, against a gain of RMB 36 million in the first half of last year. While these are non-cash items, there is a broader point around product access and distribution.

Speaker #1: Commoditizing was durable in this business. The ability to make clients money, and to be paid only when we do that, is how we're built.

Grant Pan: What is durable in this business is the ability to make clients money and to be paid only when due. That is how we are built. We co-invest alongside with our funds and clients, care to pay us only after they make a profit and fees persist only if they stay. Our investment portfolio and carry are two views of the same capability. On the legacy Camsing matter, we made real progress this quarter. We accelerated the related share insurance, where removes a significant piece of uncertainty, and we launched a new settlement plan for the remaining clients. Settlements are concluding on average below our current provisional level. Contingent liabilities were RMB455 million at 30 June, down from RMB505 million on 31 March. Moving on to balance sheet and shareholders return.

Speaker #1: We co-invest alongside our funds and clients. Carapace only participates after they make a profit, and fees persist only if they stay. Our investment portfolio and carry are two views of the same capability. On the legacy Kempson matter, we made real progress this quarter.

Speaker #1: We accelerated the related share insurance. We removed a significant piece of uncertainty, and we launched a new settlement plan for the remaining clients’ settlements.

Speaker #1: And concluding, on average, below our current provisional level, contingent liabilities were RMB 455 million at June 30th, down from RMB 505 million on March 31st.

Speaker #1: Moving on to balance sheet and shareholders return , we ended the quarter with RMB 5.0 billion in cash and short term investments . No interest bearing debt and the current ratio of 4.3 times shareholders equity was RMB 9.8 billion , we're trading at roughly half of book value , a valuation that fails to reflect our true intrinsic value .

Grant Pan: We ended the quarter with RMB5.0 billion in cash and short-term investments, no interest-bearing debt, and the current ratio of 4.3 times. Shareholders' equity was RMB9.8 billion. We are trading at roughly half of book value. A valuation that fails to reflect our true intrinsic value of underlying earnings capabilities, as demonstrated by our Q2 annualized non-GAAP return on equity of 9.7% and H1 annualized ROE of 7.6%. To deliver sustainable returns, we completed our 2025 dividend distribution in July 2026, making our third consecutive year maintaining 100% net income payout ratio and bringing accumulated dividends from 2022 to 2025 to roughly RMB2.4 billion. In parallel, under our share repurchase program launched in 2024, cumulative execution reached over 3.2 million ADS shares for more than US$34 million. These capital deployment actions highlight our commitment to enhancing shareholder value and our confidence in Noah's long-term earnings potential.

Speaker #1: Underlying earnings capabilities as demonstrated by our second quarter annualized non-GAAP return on equity of 9.7% and first half annualized ROE of 7.6% to deliver sustainable returns. We completed our 2025 dividend distribution in July 2026, marking our third consecutive year maintaining a 100% net income payout ratio and bringing accumulated dividends from 2022 to 2025 to roughly RMB 2.4 billion.

Speaker #1: In parallel, under our share repurchase program launched in 2024, cumulative execution reached over 3.2 million shares for more than US dollars.

Speaker #1: 34 million . This capital deployment actions highlight our commitment to enhancing shareholder value and our confidence in our long term earnings potential . To close , I want to leave you with three key takeaways .

Grant Pan: To close, I want to leave you with three key takeaways. First, what changed? We demonstrated the upgraded earning power of our platform, delivering a 34% year-over-year increase in operating profit, mid-30s operating margins, and third straight quarter of profit growth, driven by disciplined cost management and increasingly efficient operating model. We are also beginning to see early financial evidence of the new operating model, as Zander just pointed out. US dollar AUM continued to grow, increased 11.7% year-over-year when oversea AUM headcount dropped. Singapore has provided the first meaningful proof point that the AI-enabled wealth management model can support asset growth without professional adding on the AUM headcounts. Secondly, what will need to work? Core commissions and management fees both fell. Overall client acquisition has yet to return growth and regulatory headwinds heightened noticeably. Third, what underpins our foundation?

Speaker #1: First , what changed ? We demonstrated the upgraded earning power of our platform , delivering a 34% year over year increase in operating profit .

Speaker #1: Mid-thirties operating margins and a third straight quarter of profit growth, driven by disciplined cost management and an increasingly efficient operating model. We're also beginning to see early financial evidence of the new operating model, as Xander just pointed out. U.S. dollar AUM continued to grow, increasing 11.7% year over year, even as our headcount dropped.

Speaker #1: Singapore has provided the first meaningful proof point that an AI-enabled wealth management model can support asset growth without a proportional increase in headcount. Secondly, we will need to work on core commissions and management fees—both fell overall as client acquisition has slowed year-to-date due to growth and regulatory headwinds tightening noticeably. Third, what underpins our foundation is that our international business continues to expand in both asset and client count.

Grant Pan: Our international business continues to expand in both assets and client count. Our investment franchise maintains unbroken annual track record of generating carry, and our balance sheet remains debt-free with strong illiquidity, fully backing our high payout commitments. The financial objective behind transformation is straightforward, to build business where AUM, clients, and revenue can grow faster than fixed costs and headcounts. Thank you for your continued trust, for time and partnership. We are now happy to take your questions.

Speaker #1: Our investment franchise maintains an unbroken annual track record of generating returns, and our balance sheet remains debt-free with strong liquidity, fully backing our high payout commitments.

Speaker #1: The financial objective behind transformation is straightforward: to build a business where AUM, clients, and revenue can grow faster than fixed costs and headcount. So, thank you for your continued trust, your time, and partnership.

Speaker #1: We're now happy to take your questions.

Speaker #2: Hi , Doreen here . Since we have the webcast , we received a few questions . Let me read through the first one and let management to do the answers .

Doreen Chiu: Hi. Doreen here. Since we have the webcast, we have received a few questions. Let me read through the first one and let management do the answers. First question is from Kevin, from Citi, and he is asking, on contingent litigation expenses and the related liabilities, we noticed there was a reversal of contingent litigation expenses in Q2. Can management give more color on the recent development on the litigation, and can we expect more reversal in the next few quarters? Thank you.

Speaker #2: The first question is from Kevin at Citibank, and he's asking about contingent litigation expenses and the related liabilities. We noticed there was a reserve for the reversal of contingent litigation expenses in the second quarter.

Speaker #2: Can management give more color on the recent developments in the litigation? And can we expect more reversals in the next few quarters?

Speaker #2: Thank you

Jason Wu: Okay. I will take that question. As the CEO just mentioned, in Q2, we introduced a new settlement plan relating to Camsing. As of today, more than 80% of our affected clients have accepted the settlement plan. Our legacy risk exposure has declined substantially. As we have made provisions in prior years for the litigation risk associated with all unsettled clients. We are now making adjustments in the provision balance on a quarterly basis in line with actual settlement progress. We are continuing to engage with those remaining unsettled clients. Unfortunately we cannot make any prediction on the future provision rehearsal, because we are still tracking those settlement progress. We will keep focusing on the core operating profit.

Speaker #3: Okay, I will take that question. So, as the CEO just mentioned, in the second quarter, we introduced a new settlement plan relating to Kemsing.

Speaker #3: So as of today, more than 80% of our affected clients have accepted the settlement plans. So our legacy risk exposure has declined substantially. Also, we have made provisions in prior years for litigation risk associated with our business.

Speaker #3: On clients. So, we are now making adjustments in the provision balance on a quarterly basis, in line with actual settlement progress. Now we are continuing to engage with those remaining unsettled clients, but unfortunately, we cannot make any prediction on the future provision reversal because we are still tracking those settlement progress.

Speaker #3: And we will keep focusing on the core operating profit.

Speaker #2: Thank you, Jason. And maybe we should open the line to see if there's anyone using the phone, or if there are any questions.

Doreen Chiu: Thank you Jason. Maybe we should open the line to see if there is anyone using the phone to call in, if there are any questions.

Speaker #4: Yes , ma'am . As to ask a question , please press star then one . And our first question today comes from Peter Chang at JP Morgan .

Operator 2: Yes, ma'am. As a reminder to ask a question, please press star then one. Our first question today comes from Peter Zhang at JPMorgan. Please go ahead.

Operator: Yes, ma'am. As a reminder to ask a question, please press star then one. Our first question today comes from Peter Zhang at JPMorgan. Please go ahead.

Speaker #4: Please go ahead

Peter Zhang: 好，感谢管理层给我提问的机会，也恭喜诺亚取得非常优异的二季度业绩。那我这边提两个问题吧。第一个是管理层提到我们现在是在一个转型的阶段，然后在我们的AI的策略也取得了一定的进展。我想请教一下，管理层觉得这个转型的阶段大概会持续多久？有哪些metrics您觉得我们投资者可以去进行关注，去掌握我们这个转型的进展，那中长期来看，在三五年我们有什么目标？然后第二个问题也是关于AI财富管理的这个业务的，我想问一些细化的问题。对于我们的投资经理，我们现在给到投资经理的KPI是什么？然后这些KPI在对比旧模型有什么变化？然后是在新的这个AI的财富管理模型下，我们是怎么去增长拓展我们的客户数、客户基础的？最后是可否请管理层介绍一下，通过这个AI的驱动，对于我们的投资经理的RM的生产力有些什么提升？比如说一个RM服务的客户增长了多少，一个RM管理的AUM增长多少，这个对比一两年前有什么变化？那我做一下翻译。Thanks for giving me the opportunity to ask questions. This is Peter Zhang from J.P. Morgan. Congratulations on the very strong second quarter result and I have two questions. First is mentions that we are currently in a transition period and the AI strategy has gained very strong momentum. I wish to understand how long this transition period could taken. And what metrics will you recommend investor to monitor to track the progress of this transition?

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Speaker #5: This is Peter John from JP Morgan. Congratulations on the very strong second-quarter results, and I have two questions. First, as mentioned...

Speaker #5: You mentioned that we are currently in a transition period and that the AI strategy has gained very strong momentum. I would like to understand how long this transition period could last.

Speaker #5: Could could taken and what metrics will you recommend investors to monitor to track the progress of this transition and the . Do we have any longer term target for for for this , I strategy say any targeting next 3 to 5 years ?

Peter Zhang: Do we have any longer term target for this AI strategy, say any target in next three to five years? My second question is also on AI wealth management. I wish to understand for the KPIs you give to your relationship managers, how the new KPI under the new AI wealth manager model look like and how this are compared to the KPI in the old models? How Noah is growing your account base under the new AI wealth model? Can you also give any examples on how AI has improved the productivity for the RMs? For example, the number of accounts one RM can provide service to, and the number of AUM one RM can serve. Thank you.

Speaker #5: My second question is also on AI wealth management . I wish to understand for the KPIs you give to your relationship managers , how how the new KPI under the new AI Wealth Manager model look like and how things are compared to the KPIs in the old models and how , how are .

Speaker #5: Noah is growing our client base under the new AI model, and can you also give any examples of how AI has improved our operations?

Speaker #5: Say how AI has improved the productivity for the IMS ? For example , the . The number of times when I am concerned can provide service to .

Speaker #5: And the number of client AUM when I am—Can serve. Thank you.

Norah Wang: 我是Norah Wang。我觉得要看你怎么理解这个问题，如果只是看RM的效率的提升的话，我觉得这个还是比较传统的模式，相当于你给RM增加了一些AI的工具，提升了工作效率，这个当然是需要的。但我们这次反复强调，我们的AI不是简单地给一个工具，而是彻底地改变我们的组织模式。我们从一个前台变成了三个前台。以前我们只有靠传统的RM一个前台，现在我们是被AI赋能的传统的RM，这第一个。第二个就是完全纯粹的AI的财富管理部，它是靠运营的方式来服务客户的。第三个就是AI加的生态拓展部。那我们认为在这几个方面都是取得了比较好的成果。在RM赋能方面，我们其实是没有想去特别地触动RM的利益，而是只是希望通过AI赋能以后提升跟客户服务的品质，然后让他有空间可以服务更多的客户。但传统的RM的客户拓展本身的速度不会太快。我们也做了很多数据的分析，你发现可能单个客户的AUM提升了，但是你要增加客户数量，这对于RM本身是他的瓶颈，难度还是非常大的，你想增也不行。但是AI的财富管理部就是基于运营来服务客户，这个数字的效率是大幅提升的。比如说你有一些流失的客户，或者休眠的客户，然后我们不断地通过AI财富管理部来激活他，然后客户的转介绍。可能一个AI财富管理部，比如说在新加坡，我们可能只有6个人，但是他可以服务500个客户。而且这些客户有一些就是我们老的这些，因为RM的服务或者流失，他走了，现在他重新回来了，而且客户的转介。第三类就是生态拓展。我们今天讲的是诺亚的全球业务，比如说在日本、加拿大、澳洲，我们都可以找到这些专门服务华人的一些相对比较小的independent financial advisor或者RIA在美国，那么他们就可以挂在我们的平台上，帮我们转介客户。就有点像EM的模型，这个我们的效果也非常好。因为这些客户本来就是他们的客户。那还有一些可能业界联盟，做房地产的，然后做教育的，他们有客户，但是他们没有办法转化，他到了我们这儿以后，由我们的持牌代表来转化，我们也会给他一些marketing fee。那我们觉得这个效果是很好的，它推进了我们的拓展。我们今天的增量都不是出于传统RM的AI赋能。我觉得这个是可以的，但是效率的提升是缓慢的。

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Zander Yin: 我不知道这个。

Speaker #2: Yeah . Let me do the translation . Thanks . For the questions . So what . Charlie was trying to explain the . That is what we've been elaborating the whole morning is the new system .

Doreen Chiu: 我先翻译一下，王总。Let me do the translation. Thanks Peter for the question. Shirley was trying to explain that is what we've been elaborating the whole morning is the new system Noah is trying to build up, which no longer just rely on RMs and how many clients that one RM can serve. What we've been repetitively talking about is how we've been using three platforms, which is the AI-empowered RMs. I mean, we still value humans and AI can be the tools to empower the performance, but at the same time, it's more about we have built up the AI Wealth Management Department, and also we've been having this platform called AI plus ecosystem expansion.

Speaker #2: Nor trying to build up, which no longer just rely on MBS, and how many clients that want can serve. What we've been repetitively talking about is how we've been using three platforms, which is the AI-empowered MBS.

Speaker #2: I mean, we still value humans, and AI can be the tool to empower performance. But at the same time, it's more about how we have built up the AI wealth management department, and also, we've been developing this platform called AI Plus Ecosystem Explanations.

Speaker #2: So give you some examples . Is , say in Singapore with only six people . But we've been able to cover 500 clients , which in the past is basically impossible .

Doreen Chiu: To give you some examples is say in Singapore, we have only six people, but we've been able to cover 500 clients, which in the past is basically impossible. But with the new system that the company is building, we found out that it enhances more than just efficiency and more than just numbers of clients versus how many RMs can cover. Also our experience with the AI plus ecosystem platform, which is that we've been able to cooperate with expertise from different industries, which they may have clients that have wealth management needs, but they don't have the license.

Speaker #2: But with the new system that the company is building , we found out that it enhanced more than just efficiency and more than just numbers of clients versus how many arms can cover , and also our experience with the AI plus ecosystem platform , which is we've been able to cooperate with expertise from different industries , which they may have clients that have wealth management needs , but they don't have the license .

Speaker #2: And cooperating with us, we provide a fee to them. And then, at the same time, they can better serve the client as well.

Doreen Chiu: Cooperating with us, we provide fee to them, then at the same time they can better serve the client as well, they can refer the clients to us for wealth management needs. So it is no longer just a very traditional way to look at wealth management business under this model. Peter, have I answered your question? Yeah. Peter 总, 他可能还有问到关于我们这个转变的过程, 大概我们预计会需要多久, 会有比较明显的答案。还有就是3到5年。

Speaker #2: And they can refer the clients to us for wealth management needs. So it's no longer just a very traditional way to look at the wealth management business under this model. Peter, have I asked your question?

Speaker #2: Yeah. And thank you. See, we

Norah Wang: 我觉得不是这样的。我们在新加坡的运营从去年九月份开始的，那我们觉得一个季度以后就发生了非常大的变化，因为在AI时代一切都被加速了。就好像我们今天做一个系统的开发，如果两个星期做不成，那肯定就错了方向。所以我自己觉得这个AI的速度是非常快的。所以你可以看到，在去年九月，我们在新加坡，我们的AUM是8,600万，我们到今年二季度，我们是超过4个亿，而且都是有品质的，margin比较高的AUM。所以我个人觉得绝对不会是三到五年，而是非常快的速度。我们现在很显然，我们会加强我们在全球的拓点。日本我们很快，我们已经看到进步了，我觉得很快两个季度就会有变化。那接下来加拿大、澳洲、欧洲我们都会有我们的点开出来。以前我们比较谨慎，不敢开，原因是因为在没有让我们招募大量RM的情况下，我们招不到传统的RM，而且成本也非常高。招来的RM，我们做了一个统计，在海外，我们这次也有意思的就是淘汰了很多海外的RM，因为我们发现他们根本带不了新的AUM，如果他有新的AUM，他也不会来诺亚，他来诺亚的都是没有客户的。所以这个是我们觉得完全不行的。但是诺亚确实做了很多年了，我们在这个行业从03年开始，到今天已经23年了，我们的客户遍布全世界，他们都已经覆盖全球，并且都听过我们的名字。那我们通过不是招募RM的方法，而是通过AI财富管理部的方式，我们搭建平台，我们的客户很快就回来了，而且服务的品质更高。理财师离职，现在对我们来讲，我一点都不害怕了。为什么呢？因为所有的客户都是我们在平台上运营的，理财师离职，我们立刻可以接住。这个就是我觉得带来的很大的不同，肯定不是三五年的转变，是全面加速的，我认为在AI的时代，而且我们非常有信心可以服务好他们。

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Zander Yin: 对，我也补充一点，可能回答Peter的问题，就是新加坡的模式在香港。香港过去的话，其实也是在开始第一阶段沿用过去的我们国内发展的一些经验，就是招理财师，然后理财师希望他能够投客户，但是发觉非常重，而且效果非常不好。那现在香港也在转变，用AI加的AI财富管理部的模式，然后去链接已经开户的客户，通过这个运营的效率，就AI赋能下面的话，效果是非常不错的。而且理财师走和不走都不会影响。公司跟客户之间的连接。我觉得这一点就是一个模式改变。所以说我们之前刚才在讲，我们通过AI赋能的理财师，但是核心是后面几个：AI加的财富管理部、AI生态拓展部，还有我们的基础设施的平台建设。这三个共同来承接住，通过平台的能力来承接我们的客户。

Speaker #5: You. AI, AI is... AI, AI, AI. Thank you.

Grant Pan: 公司跟客户之间的连接。我觉得这一点就是一个模式改变。所以说我们之前刚才在讲，我们通过AI赋能的理财师，但是核心是后面几个：AI加的财富管理部、AI生态拓展部，还有我们的基础设施的平台建设。这三个共同来承接住，通过平台的能力来承接我们的客户。

Norah Wang: 对，就是AI powered platform, licensed professionals，还有ecosystem partners，我们就是三个。我觉得这个是结合在一起的，我们对这个打法我们已经觉得是比较成熟了。

Speaker #6: AI-powered platform. Licensed professionals are involved. Ecosystem partners are included.

Doreen Chiu: Let me do a brief translation. So Peter, it is probably not the best 3 to 5 years, because under the AI era, changes could be very fast. Take Singapore as an example, we have only started the business in September last year with only AUM of around 86 million, but now it is already over 400 million, with those AUM are with a really high margin, high quality AUMs. So what we have been trying to emphasize here is that under the AI enabled company, we are no longer the transitional model. It is not about hiring more RMs and hopefully the RM can get clients ultimately about AUM. With that, also explain we have been trying to expand our global footprints. In Zander's speech, we have already mentioned, we are now replicating the AI model from Singapore to Hong Kong, and we will further expand the offices into different cities as well.

Speaker #2: Let me do a brief translation so Peter is probably not the best 3 to 5 years because under the AI changes could be very , very fast , which .

Speaker #2: Take Singapore as an example. We only started the business in September last year with AUM of around $86 million, but now it's already over $400 million.

Speaker #2: With those AUM with a really high margin , high quality AUM . So what we've been trying to emphasize here is that under the AI enabled company , we are no longer the traditional model .

Speaker #2: So it's not about hiring more R , M , and hopefully the R m can get clients ultimately about AUM . And with that also explain we've been trying to expand our global footprint and in Sanders speech , we've already mentioned we are now replicating the AI model from Singapore to Hong Kong .

Doreen Chiu: In Zander's speech, we have already mentioned, we are now replicating the AI model from Singapore to Hong Kong, and we will further expand the offices into different cities as well. At the same time, the cost will be under control and it is no longer the transitional way of wealth management company's model. That we believe that it is going to have a drastic change in a relatively a lot shorter time compared to be in the old model where we have tried in Hong Kong when we first came here. But it does not seem to be a very successful experience. That is why in Singapore, we found the path to success and we are going to repeat it in different cities as well.

Speaker #2: And we will further expand the offices into different cities as well. But at the same time, the course will be under control and it's no longer the traditional way of wealth management.

Doreen Chiu: At the same time, the cost will be under control and it is no longer the transitional way of wealth management company's model. That we believe that it is going to have a drastic change in a relatively a lot shorter time compared to be in the old model where we have tried in Hong Kong when we first came here. But it does not seem to be a very successful experience. That is why in Singapore, we found the path to success and we are going to repeat it in different cities as well.

Speaker #2: Companies model and that we believe that it's going to have a drastic change in a relatively a lot shorter compared to be in the more old model , where we've tried it in Hong Kong when we first came here .

Speaker #2: But it definitely I mean , it doesn't seem to be a very successful experience . And that's why in Singapore , we found the path to success .

Speaker #2: And we are going to repeat it in the different cities as well.

Operator 2: Thank you. I am showing no further audio questions at this time. So I hand the call back over to the company.

Operator: Thank you. I am showing no further audio questions at this time. So I hand the call back over to the company.

Speaker #4: Thank you. And I'm sorry, no further audio questions at this time. So, I hand the call back over to the company.

Doreen Chiu: Thank you. We have another question here, which is about the second question here. It is from Ms. Wang, and she is asking, "Would you be able to tell us more on the dividend expectation for the current fiscal year and the periods ahead? Following the presentation on the AI development strategy, may we ask for your view on the anticipated effects on both revenue and profitability in the medium to long term?" I think we have basically answered the second part of the questions about how AI development is going to help the revenue and profitability in the future. I will let management to address about our dividend policies. 关于我们的派息的情况，公司能给一个简单的介绍吗？潘总。

Speaker #2: Thank you . So we have another question here . And which is about the Sorry . It's the second question here is from Miss Wang , and she's asking , would you be able to tell us more on the different expectations for the current fiscal year and the periods ahead following the presentation on the AI development strategy , may we ask for your view on the anticipated efforts , effects on both revenue and profitability in the medium to long term I think we have basically answered the second part of the questions about how AI development is going to help the revenue and profitability in the in in the future .

Speaker #2: So I will let management address our dividend policies.

Grant Pan: 好的。我那就直接用英文讲了。 As we have just mentioned, for the past three, four years, since 2022, we have cumulatively given out about CNY 2.2 billion. Given our strong position in balance sheet and also highly managed liquidity, we expect to continually to distribute obviously a significant portion of the income to our shareholders to maintain high return. But obviously, we have not been decided on exactly the portion or ratio of the future dividend, but we believe they will remain consistent on the asset allocation and also shareholder return policy to our shareholders.

Speaker #1: So as we have mentioned , you know , for the past three , four years , since 2022 , we have cumulatively given out about 2.2 billion RMB .

Speaker #1: You know , given out the strong position in balance sheet and also highly managed liquidity , we expect to continue to distribute . You know , obviously significant portion of the income to our shareholders to maintain high returns .

Speaker #1: But obviously, we have not decided on that. Exactly. The portion of the ratio of the future dividend, but we believe we will remain consistent on the asset allocation and also shareholder return policy to our shareholders.

Grant Pan: Secondly, we believe that as Chairwoman and also CEO has mentioned, that when AI and carry continue to push, hopefully our profitability and earning power and upgrade the business model, we will be able to sustain at least a comparable level of shareholder returns in the future. Doreen?

Speaker #1: And secondly, we believe that, you know, as Chair Lee and also the CEO have mentioned, when AI and carry continue to push, hopefully our profitability and earning power and the upgrade of the business model will be able to sustain at least a comparable level of shareholder returns in the future. Doreen.

Speaker #2: Yes, thank you. Great. We still have—can I check if there are any questions from the phone?

Doreen Chiu: Yes. Thank you, Grant. We still have a Can I check if there are any questions from the phone?

Speaker #4: There are no further questions at this time.

Operator 2: There are no further phone questions at this time.

Operator: There are no further phone questions at this time.

Speaker #2: If that's the case . I think we will wrap up the presentations today . And thank you for everyone for joining us this morning .

Doreen Chiu: If that's the case, I think we will wrap up the presentations today. Thank you everyone for joining us this morning. I understand that there may still further questions. Please contact the IR team at your convenience time. I'll look forward to talk to you into more details in the near future. Thank you very much.

Speaker #2: And I understand that there may still further questions , please contact the IR team at your convenience , time . And I look forward to talk to you in more details in the near future .

Speaker #2: Thank you very much .

Operator 2: Thank you. This does conclude our conference for today. We thank you all for attending today's presentation. You may now disconnect your lines.

Operator: Thank you. This does conclude our conference for today. We thank you all for attending today's presentation. You may now disconnect your lines.