Noah Holdings Ltd (NOAH) 2023 Q4 法說會逐字稿

Good day and welcome to the Noah Holdings fourth quarter and full year 2023 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Malo Xi Director of Investor Relations. Please go ahead.

美好的一天，歡迎參加諾亞控股第四季和 2023 年全年收益電話會議。（操作員說明）請注意此事件正在被記錄。我現在想將會議轉交給投資者關係總監 Malo Xi。請繼續。

Thank you, operator. Good morning, and welcome to Noah's 2023 fourth quarter earnings call. Joining me on this call today are Ms. Wang Jingbo our Co-founder and Chairlady; Mr. Zhin Yin our Co-Founder, Director and CEO; Mr. Grant Pan, our CFO.

謝謝你，接線生。早安，歡迎參加諾亞 2023 年第四季財報電話會議。今天加入我的電話會議的是我們的共同創辦人兼董事長王靜波女士；我們的共同創辦人、董事兼執行長尹志先生；潘先生，我們的財務長。

Ms. Wang will began with an overview of our recent business highlights, followed by Mr. Pan, who will discuss our financials and operating results. We all be available to take your questions in the Q&A session that follows.

王女士將首先概述我們最近的業務亮點，然後潘先生將討論我們的財務和經營業績。我們都可以在接下來的問答環節回答您的問題。

Before we begin, please note that the discussion today will contain forward-looking statements that are subject to risks and uncertainties and may cause actual results to differ materially from those in our forward-looking statements. Potential risks and uncertainties include, but not limited to, those outlined in our public filings with the SEC in the Hong Kong Stock Exchange. Nor does not undertake any obligation to update any forward-looking statements except as required on the applicable law.

在我們開始之前，請注意，今天的討論將包含前瞻性陳述，這些陳述存在風險和不確定性，並可能導致實際結果與我們的前瞻性陳述中的結果有重大差異。潛在風險和不確定性包括但不限於我們向香港證券交易所向美國證券交易委員會提交的公開文件中概述的風險和不確定性。除適用法律要求外，也不承擔更新任何前瞻性聲明的任何義務。

In addition, today's call will include discussions of certain non-GAAP financial measures. A reconciliation of non-GAAP measures to the most directly comparable GAAP measures can be found in our earnings release. Lastly, this call should not be interpreted as a solicitation to sell or purchase any interest in any Noah or Noah affiliated products.

此外，今天的電話會議也將討論某些非公認會計準則財務措施。非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準的調節可以在我們的收益報告中找到。最後，本次電話會議不應被解釋為招攬出售或購買任何諾亞或諾亞附屬產品的任何權益。

Please also be aware that a link to a live webcast with presentation materials is available on our Investor Relations website.

另請注意，我們的投資者關係網站上提供了帶有演示材料的即時網路廣播的連結。

With that, I would like to pass the call over to Ms. Wang. Please go ahead.

我想把電話轉給王女士。請繼續。

I'd like to begin today's call by sharing some recent thoughts on industry and macro-economic landscape. Before I review our performance in the fourth quarter and full year and diving into our strategy going forward.

我想先分享一些關於行業和宏觀經濟形勢的最新想法來開始今天的電話會議。在我回顧我們第四季度和全年的業績並深入探討我們的未來策略之前。

Over the past year, the Chinese wealth management industry faced considerable challenges. Fundamental shifts are taking place across the sector that require a different strategy and approach to asset allocation for Mandarin speaking, high-net-worth individuals. Noah's relentless focus on client needs, we are ahead at our transition from a product-focused model to a solutions-driven approach over the past year, ensure our ability to increase the resilience of clients' portfolios in the challenging market environment.

過去一年，中國財富管理產業面臨不少挑戰。整個產業正在發生根本性轉變，需要為講普通話的高淨值人士採取不同的資產配置策略和方法。諾亞對客戶需求的不懈關注，在過去的一年裡，我們在從以產品為中心的模式向以解決方案驅動的方法的轉變方面處於領先地位，確保了我們有能力在充滿挑戰的市場環境中提高客戶投資組合的彈性。

Our proactive decisions to prove that surely exit domestic [realization] in 2016 and non-standardized single counterparty private credit products in 2019, earned us significant trust from clients. Our semiannual CRO. house view and CCI model continue to reflect our strategic foresight over the past three years, which resonated strongly with clients.

我們積極主動在2016年推出了肯定退出境內的產品，在2019年推出了非標準化單一對手私人信貸產品，贏得了客戶的高度信任。我們半年一次的 CRO。 house view和CCI模型繼續體現了我們過去三年的策略遠見，引起了客戶的強烈共鳴。

We adopted a three-pronged strategic approach to navigate this challenging market environment over the past year. Firstly, we're laser focused on ensuring our resilience and adaptability through economic downturns. Secondly, we are actively accumulating strengths to emerge as a leader in the forthcoming recovery. And finally, prioritizing the development of our core capabilities to position us for future growth when opportunities are bright.

過去一年，我們採取了三管齊下的策略方法來應對充滿挑戰的市場環境。首先，我們專注於確保我們在經濟低迷時期的復原能力和適應性。其次，我們正在積極積蓄力量，在即將到來的復甦中成為領導者。最後，優先發展我們的核心能力，以便我們在機會光明時為未來的成長做好準備。

Noah is a company built on both pragmatism and efficient, allowing us to strike a careful balance between fortify our position and seizing new opportunities. By enhancing operational efficiency, retaining top talent, strategically calling cards while simultaneously investing in new international markets, channels, technologies and the development of global product and service matrix, we are ideally positioned to help clients [converse] of market.

諾亞是一家務實而有效率的公司，使我們能夠在鞏固地位和抓住新機會之間取得謹慎的平衡。透過提高營運效率、留住頂尖人才、策略性名片，同時投資新的國際市場、通路、技術以及全球產品和服務矩陣的開發，我們處於幫助客戶[對話]市場的理想位置。

Over the past year, we strengthened our full suite of wealth management products and services for Mandarin speaking clients globally. One key focus has been expanding our ability to offer clients alternative investments on a global basis. We're also seeing global fund managers increasingly focusing on underserved private wealth channels to fuel primary market fundraising.

過去一年，我們加強了為全球普通話客戶提供的全套財富管理產品和服務。其中一個重點是擴大我們在全球範圍內為客戶提供另類投資的能力。我們也看到全球基金經理人越來越關注服務不足的私人財富管道，以推動一級市場籌款。

As a leading private wealth manager recognized for its expertise in alternative investments and extensive network of Mandarin speaking professional investors, the trend presents enormous opportunities for Noah.

作為一家領先的私人財富管理機構，諾亞以其在另類投資方面的專業知識和廣泛的普通話專業投資者網絡而聞名，這一趨勢為諾亞提供了巨大的機會。

Going forward, we'll be amplifying these strategic global investments, this includes expanding our service network, bolstering investment research capabilities and significantly enhancing product selection and technological infrastructure. These investments will solidify our foundation as a leader, enabling us to meet growing demand, among clients for globally diversified wealth and asset management services.

展望未來，我們將擴大這些策略性全球投資，包括擴大我們的服務網絡、增強投資研究能力以及顯著增強產品選擇和技術基礎設施。這些投資將鞏固我們作為領導者的基礎，使我們能夠滿足客戶對全球多元化財富和資產管理服務不斷增長的需求。

Looking at our financials for the year, [Noah] generated total revenues of RMB3.3 billion, an increase of 6% year-on-year. Our domestic business contributed RMB1.9 billion, an increase of 18.1% year-on-year and accounting for 56.8% of the total [earnings]. Within revenue from our domestic business, revenue generated by legacy distributed products was RMB1.4 billion, accounting for 73.9% of the domestic revenue.

從我們今年的財務數據來看，【諾亞】總收入為人民幣33億元，較去年同期成長6%。國內業務貢獻人民幣19億元，較去年成長18.1%，佔56.8%[收益]。國內業務收入中，傳統分散式產品收入為人民幣14億元，佔國內收入的73.9%。

Our overseas business generated RMB1.4 billion, a significant increase of 73% year-on-year, driving overseas revenue contribution from 26.5% of the total net revenues last year to 43.2% this year. Of revenue generated from new business and products in 2023 are overseas and domestic business accounted for 68.1% and 31.9%, respectively.

海外業務實現人民幣14億元，年比大幅成長73%，海外收入貢獻佔總淨收入的比例由去年的26.5%提升至今年的43.2%。2023年新業務和新產品產生的收入中，海外和國內業務分別佔比68.1%和31.9%。

Breaking it down by segments, our wealth management business generated RMB2.5 billion in 2023, an increase of 13.1% from last year. Within wealth management, domestic business contributed RMB1.4 billion, a decrease of 11.7% from last year, which was primarily composed of RMB0.9 billion in revenue generated by legacy distributed products accounting for 67.7% of the domestic wealth management revenue. Our overseas business are contributed RMB1.1 billion, up 71.3% increase year-on-year.

分細分領域來看，2023年我們的財富管理業務實現收入25億元人民幣，較前一年成長13.1%。財富管理業務中，境內業務貢獻人民幣14億元，較上年下降11.7%，主要是遺留代銷產品收入人民幣9億元，佔境內理財收入的67.7%。海外業務貢獻人民幣11億元，較去年成長71.3%。

Our asset management business generated RMB769 million in revenue during the year, a decrease of 8.4% from last year. Within asset management, our domestic business generated RMB469 million, a decrease of 30.3% from last year, which was primarily composed of RMB467 million in revenue generated by [legs] distributed products accounting for 99.4% of the domestic asset management revenue. Our overseas business contributed RMB299 million, an increase of 80% year-on-year, driven primarily by growth in overseas AUA and AUM.

資產管理業務年內實現收入人民幣7.69億元，較上年下降8.4%。資管業務中，境內業務實現收入4.69億元，較上年下降30.3%，主要是分銷產品收入4.67億元，佔境內資管收入的99.4%。海外業務貢獻人民幣2.99億元，較去年成長80%，主要得益於海外AUA和AUM的成長。

On the comprehensive services side, revenue from domestic insurance products increased by 1.6% to 2023, of which 88.9% was generated by new businesses. Revenue from overseas insurance trusts and other comprehensive services surged 301.5% from last year. In [tandem], the number of active overseas clients for comprehensive services also grew by 376.3% year-on-year.

綜合服務方面，國內保險產品收入至2023年成長1.6%，其中88.9%來自新業務。海外保險信託等綜合服務收入年增301.5%。同時，綜合服務海外活躍客戶數量也較去年同期成長376.3%。

Over the past year, we continued to make upgrades to our technology stack aimed at improving client experience globally. We're working with leading insurers to streamline our underwriting process across market scope globally.

在過去的一年裡，我們不斷升級技術堆疊，旨在改善全球客戶體驗。我們正在與領先的保險公司合作，簡化我們在全球市場範圍內的承保流程。

We were the first broker in Hong Kong to launch a fully online underwriting process and allow clients the option to make insurance premium payments through our Hong Kong nominee account, which was a significant enhancement for client experience. Operating profit for the year came in our RMB1.1 billion with an operating profit margin of 33.3%.

我們是香港第一家推出完全線上核保流程的經紀商，並允許客戶選擇透過我們的香港代理人帳戶支付保險費，這顯著增強了客戶體驗。全年營業利潤11億元，營業利益率33.3%。

Looking at our domestic wealth management business, we continue to carry on the strategies focused on first tier and core cities in China. Through our ongoing organizational restructuring we decreased the number of offices we have from 77 to 44 by the end of the year and further relocating resources to 18 core cities as of now.

就國內財富管理業務而言，我們持續實施聚焦國內一線及核心城市的策略。透過持續的組織重組，截至年底，我們將辦事處數量從 77 個減少到 44 個，並進一步將資源轉移到目前的 18 個核心城市。

As of the end of 2023, the number of domestic relationship managers decreased by 7.6% year-over-year and 12.6% sequentially to 1,163. And domestic wealth management funds our primary focus has been on strengthening the service capabilities of our relationship managers and enhancing the user experience of technological upgrades to our staff, allowing us to continuously, generate new leads from ongoing client services.

截至2023年底，境內客戶經理人數為1,163人，較去年同期下降7.6%，較上季下降12.6%。對於國內財富管理基金，我們的首要重點是加強客戶經理的服務能力，並增強員工技術升級的使用者體驗，使我們能夠不斷地從持續的客戶服務中產生新的線索。

The small treasury platform for corporate and institutional clients we launched in 202e now serve nearly 6,000 clients at 28.9% increase from last year. Over the past year, the number of active clients served increased by 73.7% year-over-year with average client AUA exceeding RMB600,000.

我們於 202 年推出的企業和機構客戶的小型資金平台目前已服務近 6,000 家客戶，較去年成長 28.9%。過去一年，服務的活躍客戶數量年增73.7%，平均客戶AUA超過人民幣60萬元。

Turning overseas, our wealth management business continued to expand its presence as more relationship managers are brought on board in Hong Kong and Singapore. As of the end of 2023, we had 89 relationship managers onboarded, an increase of 15.6% sequentially.

轉向海外，隨著更多客戶經理在香港和新加坡的加入，我們的財富管理業務繼續擴大佈局。截至 2023 年底，我們有 89 位客戶關係經理，較上季成長 15.6%。

We are committed to further expanding our international RM team targeting a headcount of 200 by the end of 2024. As of the end of 2023, we had over 14,900 overseas clients, reflecting a 14.2% increase from last year. The number of clients who purchase our patch management products reached 3,093, a sequential increase of 19.1%. While the number of discretionary investment clients reached 803, an increase of 23% sequentially.

我們致力於進一步擴大我們的國際 RM 團隊，目標是到 2024 年底達到 200 人。截至2023年底，我們擁有超過14,900家海外客戶，較去年成長14.2%。購買補丁管理產品的客戶數量達到3,093家，較上季成長19.1%。全權委託投資客戶數達803戶，較上季成長23%。

We continue to expand the product offered to our overseas wealth management and providing an expanded array of solutions for clients, businesses and agencies. The number of overseas assets high-net-worth clients reached 4,629 in 2023, a significant of 38% increase from last year.

我們不斷擴大為海外財富管理提供的產品，並為客戶、企業和機構提供更廣泛的解決方案。2023年海外資產高淨值客戶數量達4,629戶，較去年大幅成長38%。

Total transaction value during the same period reached USD3.3 billion, up 83.4% year-on-year. The number of active clients for our US dollar, mutual fund products reached 3,130, up 72% year-on-year with transaction value of USD1.2 billion, up 110.1% from last year.

同期總交易額達33億美元，年增83.4%。美元基金產品活躍客戶數達3,130戶，較去年成長72%，交易金額12億美元，較去年成長110.1%。

On the 2B side, we have successfully onboarded more than 230 overseas corporate and institutional clients, which resulted in transaction value of overseas mutual funds, reaching approximately USD200 million.

2B方面，我們已成功接取230多位海外企業及機構客戶，海外互惠基金交易金額達約2億美元。

On the two agency side, our overseas online wealth management business began trial operations in late 2023, aiming and empower EAM and family offices, clients with the SaaS platform integrated with our full suite of products. As of today, we have signed nine agency clients with a long-term target of serving 300 EAM's and family office in overseas markets.

二級代理方面，我們的海外線上財富管理業務於2023年底開始試運營，瞄準並賦能EAM和家族辦公室等客戶，透過全系列產品整合的SaaS平台。截至目前，我們已簽約9家代理客戶，長期目標是服務海外市場300家EAM和家族辦公室。

In terms of asset management, Noah's total AUM was RMB154.6 billion in 2023, a decrease of 1.6% year-on-year. RMB AUM decreased by 4.8% from last year to RMB118.6 billion. This was primarily driven by exits from RMB private equity assets and decline in the net asset value of some RMB public market products.

資產管理方面，2023年諾亞總資產管理規模為1,546億元人民幣，年減1.6%。人民幣資產管理規模較去年下降4.8%至人民幣1,186億元。這主要是由於人民幣私募股權資產退出以及部分人民幣公開市場產品資產淨值下降所致。

Internationally, we continue to enhance our global investment product matrix overseas AUM reached USD5.1 billion in 2023, an increase of 7.6% from last year, driving from the increase in its contribution to total AUM from 20.7% to 23.3%. Overseas AUA, which includes distributed products, reached USD8.4 billion, an increase of 10.2% year-on-year.

國際上，我們持續完善全球投資產品矩陣，2023年海外資產管理規模達51億美元，較去年成長7.6%，帶動其對總資產管理規模的貢獻從20.7%提升至23.3%。包括分銷產品在內的海外AUA達84億美元，年增10.2%。

Beyond traditional PE and BC products, we have gradually expanded our alternative offerings to include infrastructure, GP stake, PE secondary and private credit products to provide a more comprehensive product matrix.

除了傳統的PE和BC產品外，我們還逐步擴大另類產品範圍，包括基礎設施、GP股權、PE二級和私募信貸產品，以提供更全面的產品矩陣。

We also recently launched a series four of our actively managed US dollar, US real estate fund, focusing on development opportunities in the sub urban rental apartments in the US Sun Belt area. This fund is well positioned as an upstream player within the institutional real estate value chain. As of the end of 2023, AUM for overseas private equity and other primary market funds reached USD4 billion, an increase of 4.7% year-on-year.

我們最近也推出了第四個系列的主動式管理美元美國房地產基金，重點關注美國陽光地帶郊區出租公寓的發展機會。該基金作為機構房地產價值鏈的上游參與者，處於有利地位。截至2023年底，境外私募及其他一級市場基金管理規模達40億美元，較去年同期成長4.7%。

Turning to public markets, we intensified the screening coverage and inclusion of top hedge fund managers globally. We have launched 10 of the top global top 50 hedge fund products with [10th] more in the due diligence process. While enhancing the diversity of fund managers and product strategies, we are simultaneously expanding to include structure products with principal the -- protection mechanisms.

面向公開市場，我們加強了對全球頂級對沖基金經理人的篩選覆蓋範圍和納入力度。我們已經推出了全球 50 強對沖基金產品中的 10 種，還有 [10] 種正在盡職調查過程中。在增強基金管理人及產品策略多元化的同時，我們也不斷拓展以保護機制為主的結構性產品。

In 2023, the transaction value of overseas public markets and structure products reached USD180 million, an increase of 95.9% from last year.

2023年，海外公開市場及結構性產品交易金額達1.8億美元，較去年成長95.9%。

Lastly, we announced a change to our leadership structure last year by separating the roles of chairperson, and CEO. Mr. [Zhe Yin] and was appointed CEO while I will retain position as Chairwomen of the board. This decision will enhance corporate governance, organizational efficiency, promote collective decision making and facilitate Noah's succession plan and generate opportunities for Noah deep bench of management talent.

最後，我們去年宣布了領導結構的改變，將董事長和執行長的角色分開。[Zhe Yin] 先生被任命為首席執行官，而我將保留董事會主席的職位。這項決定將增強公司治理、組織效率、促進集體決策、促進諾亞的繼任計劃，並為諾亞的深層管理人才創造機會。

As the co-founder [Zhe Yin] has been part of Noah's journey since beginning, to play the pivotal role in building over as an asset management and possesses a deep understanding of Noah's operations and our client-centric company culture. Our firmly support [Zhe Yin] in his new role while continuing to steer Noah's overall strategy and be responsible for management and corporate governance.

身為共同創辦人，尹哲從一開始就參與了諾亞的發展歷程，在資產管理業務的轉型過程中發揮關鍵作用，並對諾亞的營運和以客戶為中心的公司文化有著深刻的理解。我們堅定支持[尹哲]擔任新職務，同時繼續指導諾亞整體策略並負責管理和公司治理。

Please also kindly note that our CEO, [Zhe Yin] and our CFO, Grant will be reporting quarterly results starting from last quarter. I will still take part in the Q&A session. I would now like to turn the call over to [Grant] to go over our financial results in more detail. Before opening the call to Q&A will Zhe Yin and myself will also participate. Thank you, everyone.

另請注意，我們的執行長[尹哲]和財務長格蘭特將從上個季度開始報告季度業績。我仍然會參加問答環節。我現在想將電話轉給[格蘭特]，以更詳細地了解我們的財務表現。在開始問答電話之前，尹哲和我也將參加。謝謝大家。

Thank you, Mello, thank you Chairlady. I am sure most investors already very familiar with Mr. [Zhe Yin] and [that] will welcome him to join our future earnings releases and also meetings and calls with our investors.

謝謝梅洛，謝謝主席小姐。我相信大多數投資者已經非常熟悉[尹哲]先生，並且歡迎他參加我們未來的財報發布以及與投資者的會議和電話會議。

2023 was a challenging year for China's wealth management industry. China's post-pandemic economic recovery proved to be a little slower than initially anticipated. As housing and local government debt problem remains widespread and persistent driving domestic capital markets and growth.

2023年對中國財富管理產業來說是充滿挑戰的一年。事實證明，疫情後中國經濟復甦略慢於最初預期。由於住房和地方政府債務問題仍然普遍存在，並持續推動國內資本市場和成長。

The performances of China's domestic market share -- a share market and Hong Kong stock market also took some heavy adjustments impacting the issuance of new investment products domestically. The new issuance of mutual fund products, for example, in the domestic market fell 22.7% throughout the year.

中國國內市場－A股市場和香港股市的表現也出現了較大調整，影響了境內新投資產品的發行。以國內市場共同基金產品新發行量全年下降22.7%。

On a contrast, in 2023, the Dow Jones Industrial average index rose by 13.7% with the S&P 500 index and MSCI World equity index of over 20%. On the alternative side, global fund managers are increasingly focusing on underserved private wealth channels to fuel primary market fundraising.

相較之下，2023年道瓊工業指數上漲13.7%，標準普爾500指數和摩根士丹利資本國際世界股票指數上漲超過20%。另一方面，全球基金經理人越來越關注服務不足的私人財富管道，以推動一級市場融資。

According to McKenzie as of June 30, 2023, the total AUM in private markets reached USD13.1 trillion, growing nearly 20% per annum since 2018. The sharp divergences in economic and capital market conditions between onshore and offshore markets have created considerable challenges for high net worth clients. While demand for global asset security and diversification, insurance products and other defensive driven strategies continues to grow.

根據 McKenzie 的數據，截至 2023 年 6 月 30 日，私募市場的資產管理規模總額達到 13.1 兆美元，自 2018 年以來每年增長近 20%。在岸和離岸市場之間經濟和資本市場狀況的巨大差異給高淨值客戶帶來了相當大的挑戰。儘管對全球資產安全和多元化、保險產品和其他防禦驅動策略的需求持續增長。

As a leading wealth management company, recognized for its expertise in alternative investments and extensive network of Chinese professional investors, these trends directly align with our strategic transition from a product based to a solution-based offering and our ongoing investment in [innovative] products and services.

作為一家領先的財富管理公司，以其在另類投資方面的專業知識和廣泛的中國專業投資者網絡而聞名，這些趨勢直接符合我們從基於產品到基於解決方案的戰略轉型，以及我們對[創新]產品和服務的持續投資。服務。

In this context, we've delivered solid financial results and our business has proven again to be resilient and adaptive in the face of challenging market environment. Net revenues for the year continued to grow, along with the healthy operating margin of 33.3%, combined with our asset light model, generating strong operating cash flow, the ample cash on balance sheet, we're extremely confident in the resilience of our business and ability to thrive even in complex economic conditions.

在此背景下，我們取得了穩健的財務業績，並且再次證明我們的業務在面對充滿挑戰的市場環境時具有彈性和適應性。全年淨收入持續成長，加上33.3%的健康營運利潤率，加上我們的輕資產模式，產生強勁的營運現金流，資產負債表上充裕的現金，我們對業務的彈性非常有信心即使在複雜的經濟條件下也能蓬勃發展。

With that, let's get into the details of quarter four and entire fiscal year 2023 financial performance. Quarterly net revenues came in just shy of on the RMB800 million, a 6.6% increase sequentially. And net revenues for the year was RMB3.3 billion, up 6.3% year-over-year.

接下來，讓我們詳細了解 2023 年第四季和整個財年的財務表現。季度淨收入接近 8 億元，季增 6.6%。全年淨收入為人民幣33億元，較去年成長6.3%。

In terms of breakdown of net revenues for the year onetime commissions or RMB1.1 billion, up 60% year-over-year, primarily due to a strong distribution of insurance products. Recurring service fees, a key stabilizing revenue mix or RMB1.8 billion, slightly down 4.8% year-over-year, due to a decrease in our onshore AUM resulting from changes in NAV and structure products.

從全年淨收入組成來看，一次性佣金為人民幣11億元，較去年同期成長60%，主要得益於保險產品的強勁佈局。經常性服務費是穩定收入的關鍵組成部分，為人民幣18億元，年比小幅下降4.8%，這是由於資產淨值和結構性產品變化導致我們在岸資產管理規模下降。

Performance-based income was RMB137 million, down 55.5% year-over-year, mainly due to the underperforming domestic capital market and limited exit opportunities. And other service fees were RMB258 million, up 23.4% year-over-year, primarily due to more value-added services provided for our clients.

業績收入1.37億元，年減55.5%，主要是因為國內資本市場表現不佳，退出機會有限。其他服務費用為2.58億元，年增23.4%，主要是為客戶提供了更多的增值服務。

Breaking down the revenues by region, overseas net revenues over the year, were RMB1.4 billion increased by 73% year-over-year, accounting for 43.5% of total net revenues. We've been following our clients' demands and made significant progress in expanding our international presence in 2023, managed to recruit over 100 overseas relation managers as of today.

按地區劃分，海外地區全年淨收入為人民幣14億元，年增73%，佔總淨收入的43.5%。我們一直緊跟著客戶的需求，並在 2023 年擴大國際業務方面取得了重大進展，截至目前已招募了 100 多名海外關係經理。

At the same time, we'll continue to enrich our product offerings and enhance cooperation with top global primary and secondary market funds, managers, insurance companies driving an increase in overseas transaction value an AUA by 83.4% and 10.2%, respectively.

同時，我們將持續豐富產品線，加強與全球頂級一二級市場基金、管理人、保險公司的合作，海外交易金額和AUA分別成長83.4%和10.2%。

In 2023, we officially launched our office in LA, they're actively exploring opportunities of rolling out services and products in many other places in the world, such as Dubai and in Japan, probably Southeast Asian nations.

2023 年，我們在洛杉磯正式設立了辦事處，他們正在積極探索在世界其他許多地方推出服務和產品的機會，例如杜拜和日本（可能是東南亞國家）。

With respect to transaction values, we distributed RMB16.5 billion products during the year -- during the quarter, down 8.1% year-over-year and 25% quarter-over-quarter. By region transaction value for RMB products in the quarter was RMB10.7 billion, down 17.4% year-over-year and 30.5% quarter-over-quarter, while transaction value for US dollars products increased by 12% year-over-year and down 13.4% quarter-over-quarter to [USD828] million.

從交易金額來看，我們全年分銷了 165 億元人民幣的產品，季減 8.1%，季減 25%。按地區劃分，本季人民幣產品交易金額為人民幣107億元，年減17.4%，季減30.5%；美元產品交易金額年增12%，季增30.5%。季減13.4% 至[828] 百萬美元。

Total transaction values for the year reached RMB74.1 billion, up 5.4% year-over-year. Breaking this down by region, the transaction value for RMB products was RMB50.3 billion, down 13% year-over-year, while the transaction value for US dollar products increased 83.4% to USD3.3 billion driven by USD cash management and structured products.

全年成交總額達人民幣741億元，年增5.4%。分地區看，人民幣產品交易額為503億元人民幣，年減13%；美元產品交易額在美元現金管理和結構性投資的帶動下增長83.4%至33億美元。產品。

As of the end of the year, our overseas AUM grew 7.6% year-over-year to USD5.1 billion accounting for 23.3% of the total AUM. Operating costs and expenses increased by 9.2% during the year, primarily due to the low base effect created by COVID lockdowns in 2022, which curtailed both marketing activity and business traveling as well as increase in entrance of travel this year in support of global expansion.

截至年底，我們的海外資產管理規模年增7.6%至51億美元，佔總資產管理規模的23.3%。全年營運成本和費用增加了 9.2%，主要是由於 2022 年新冠疫情封鎖造成的低基數效應，導致行銷活動和商務旅行減少，以及今年為支持全球擴張而增加的旅行入境人數。

Combined with our strategic cost controls, operating costs kept reasonable and in line with revenue growth. [Spect] into operating cost for the year were a number of one-time expenses that would generate cost savings over the long term. While the continued urbanization of China, Chinese high-net-worth investors increasingly migrating to first tier cities.

結合我們的策略成本控制，營運成本保持合理並與收入成長保持一致。 [Spect] 今年的營運成本中有許多一次性費用，從長遠來看，這些費用可以節省成本。隨著中國城市化進程的不斷推進，中國高淨值投資者越來越多地向一線城市遷移。

We have been consolidating teams and resources in smaller cities to nearby hubs mostly capital and first-tier cities and international regions accordingly. We expect to benefit from consolidations of these networks to save approximately RMB10 million annualized going forward.

我們一直在將較小城市的團隊和資源整合到附近的樞紐（主要是首都和一線城市以及國際地區）。我們預計將受益於這些網路的整合，未來每年可節省約 1,000 萬元人民幣。

We also looked closely at improving human capital efficiency, but total headcount decreased by 10.4% overall in 2023. Most of which was stem from mid and back-office personnel, which decreased by 17.2%. This will save RMB64 million annualized going forward.

我們也密切關注人力資本效率的提高，但 2023 年總人數總體減少了 10.4%。其中以中後台人員為主，減少17.2%。未來每年節省人民幣6400萬元。

At the same time, we're allocating resources and firmly implementing overseas talent development. Total overseas headcount increased by 16.1% to 426 in 2023.

同時，我們正在配置資源，堅定實施海外人才開發。2023 年海外員工總數增加 16.1%，達 426 人。

Operating profit during this quarter was RMB221 million, effectively flat when compared to the same period last year and down 11.3% sequentially. Operating profit margin during the quarter improved on a year-over-year basis to 27.6%, but decreased compared with previous quarter as we typically have more marketing and client actives during the fourth quarter.

本季營業利潤為人民幣2.21億元，與去年同期基本持平，季減11.3%。本季營業利潤率年增至 27.6%，但與上一季相比有所下降，因為我們通常在第四季有更多的行銷和客戶活動。

Operating profit for the year was RMB1.1 billion, a slight increase of 0.9% year-over-year, while operating profit margin for the year remained at a healthy level of 33.3%. Total other income for the year was RMB111 million increased by 82.2% year-over-year, mainly due to optimization of our capital management and currency mixes.

全年營業利潤為人民幣11億元，年比小幅成長0.9%，全年營業利潤率維持在33.3%的健康水準。全年其他收入總額為人民幣1.11億元，較去年同期成長82.2%，主要得益於資本管理和貨幣組合的最佳化。

This was partially offset by noncash investment losses from certain balance sheet investments due to mark-to-market adjustments. Non-GAAP net income during the quarter was RMB234 million, up 56.7% year-over-year and RMB1 billion during the year, a slight increase of 1% from last year.

這部分被某些資產負債表投資因以市價調整而產生的非現金投資損失所抵銷。本季非美國通用會計準則淨利為人民幣2.34億元，較去年同期成長56.7%，全年淨利10億元，較去年微增1%。

Turning to the results of each segment during the year. Net revenues from wealth management were RMB2.5 billion and net revenues from asset management, while the RMB766 million accounting for 75.26% and 23.3% of total net revenues respectively.

回顧這一年各部門的表現。財富管理淨收入為人民幣25億元，資產管理淨收入為人民幣7.66億元，分別佔總淨收入的75.26%及23.3%。

On the client side, as of the end of quarter, we had 7,3069 diamond card clients, down 2.8% year-over-year and 1.2% quarter-over-quarter. However, the number of black card points higher tier clients increased by 8.8% year-over-year and 1.7% quarter-over-quarter, reaching a total of 2,289.

客戶端方面，截至季末，我們擁有鑽石卡客戶7,3069戶，較去年同期下降2.8%，較上季下降1.2%。然而，黑卡高階客戶數量較去年同期成長8.8%，較上季成長1.7%，達到2,289個。

The total number of diamond and black card clients was 9,658, slightly down 0.3% year-over-year, primarily due to a sluggish equity market and downbeat investment sentiment. That being said, we're still confident to capture more market share by continued enhancements in our global products service offerings and achieving a 1% market share in high net worth individual wealth management market as a goal.

鑽石黑卡客戶總數為9,658戶，較去年小幅下降0.3%，主要是受股市低迷及投資情緒低迷影響。儘管如此，我們仍有信心透過持續提升全球產品服務能力來佔領更多的市場份額，並以在高淨值個人財富管理市場取得1%的市場份額為目標。

Overseas registered clients as the end of the year increased by 14.2% year-over-year to 14,929 and the overseas active clients of the year increased by 38% year-over-year to 4,629 has continued to build up overseas presence.

年末海外註冊客戶年增14.2%至14,929戶，全年海外活躍客戶較去年同期成長38%至4,629戶，海外影響力持續增強。

Turning to our balance sheet, we have maintained a healthy liquidity positions with our current ratio at 3.8 times and our debt asset ratio at 17.8% with zero interest bearing debt. We have RMB5.2 billion cash and cash equivalents, providing ample resources to support our global expansion plans and make improvements in shareholder return, which the board has always considered as a priority.

資產負債表方面，我們維持健康的流動性狀況，流動比率為3.8倍，負債資產比率為17.8%，計息負債為零。我們擁有人民幣52億元的現金及現金等價物，為支持我們的全球擴張計畫和提高股東回報提供了充足的資源，這是董事會一直認為的首要任務。

Therefore, I'm very delighted to announce that based on our strong clean balance sheet, a strong liquidity position and after considering the necessary investments associated with global expansion plan, the Board has approved an annual dividend of RMB509 million for 2023, which is equivalent to 50% of the year's non-GAAP net income attributable to Noah shareholders. In accordance with the capital management and shareholder return policy announced last quarter.

因此，我非常高興地宣布，基於我們強勁、乾淨的資產負債表、強勁的流動性狀況，並在考慮了與全球擴張計劃相關的必要投資後，董事會批准了2023 年年度股息人民幣5.09 億元，相當於諾亞股東應佔當年非公認會計準則淨利的 50%。依照上季公佈的資本管理及股東回報政策。

In addition, the Board has also approved a nonrecurring special dividend for the year of RMB509 million in total for 2023. Thus, the amount of total shareholder returns for 2023 in the form of cash dividend will be RMB1 billion, equivalent to 100% of 2023 non-GAAP net income, subject to final approval of the AGM in June 2024.

此外，董事會也批准派發2023年度非經常性特別股息共計人民幣5.09億元。因此，2023年以現金股利形式獲得的股東回報總額將為人民幣10億元，相當於2023年非美國通用會計準則淨利潤的100%，以2024年6月年度股東大會最終批准為準。

At the current market value, our recurring payout plan provides a very attractive dividend yield of over 10% and a total payout plan with additional special dividend will yield over 20% for shareholders.

依照目前的市場價值，我們的經常性股利計畫提供了超過10%的非常有吸引力的股息殖利率，而加上額外特別股息的總派息計畫將為股東帶來超過20%的股息收益率。

In summary, we believe that the share price for Noah is significantly undervalued to its intrinsic value. We remain extremely confident in our long-term growth prospects. We also committed to improving our return on equity and to creating more value for our shareholders through enhanced shareholder returns. Once again [once] sincerely appreciate our shareholders' support for your ongoing trust.

綜上所述，我們認為諾亞的股價相對於其內在價值被嚴重低估。我們對長期成長前景仍充滿信心。我們也致力於提高股本回報率，並透過提高股東回報為股東創造更多價值。再次[再次]衷心感謝我們的股東對您持續信任的支持。

Thank you for listening, and I'll now open the floor for questions. Operator?

感謝您的聆聽，我現在開始提問。操作員？

(Operator Instructions)

（操作員說明）

Helen Li, UBS.

海倫李，瑞銀。

So let me translate my question. So this is Helen Li from UBS. There's two questions, if I may. First, the number of covered cities declined to 44 and RMs declined 11% in the fourth quarter. Is it because of loss of RM from which closure or are you laying off RMs? What's your future plan for the onshore business in terms of RM?

那麼讓我翻譯一下我的問題。這是瑞銀集團的海倫李。如果可以的話，有兩個問題。首先，第四季覆蓋城市數量下降至44個，RM下降11%。是因為關閉後 RM 損失還是您正在解僱 RM？就 RM 而言，您對在岸業務的未來計劃是什麼？

And my second question, last year's open date, you talk about structural product and [hash brown] products which could be a driver for onetime commissions going forward. What's the penetration rate of this product? And what's your product strategy this year? And what's the business outlook for 2024? Thank you.

我的第二個問題，去年的開放日期，你談到了結構性產品和[薯餅]產品，這可能是未來一次性佣金的驅動力。這個產品的滲透率是多少？今年你們的產品策略是什麼？2024 年的業務前景如何？謝謝。

Thank you Helen. I think I will take the first question. So to your first question, Helen, it's I guess it's probably a result of both. One is obviously the consolidation of networks. Obviously, some of the our relation managers choose to not be the smallest city and work in the hub city. So there's still a little bit about commute between the hub city and their original city. So there's some natural loss, but it's actually doesn't account for too much of the decrease.

謝謝海倫。我想我會回答第一個問題。所以，對於你的第一個問題，海倫，我想這可能是兩者的結果。其中之一顯然是網路的整合。顯然，我們的一些關係經理選擇不在最小的城市工作，而是在中心城市工作。因此，中心城市和原城市之間的通勤仍然存在一些問題。所以存在一些自然損失，但實際上並沒有佔減少的太多。

And two is really obviously the optimization, we are increasingly improving the threshold in terms of assessment efficiency of these RM’s. So naturally, for the RMs, they have to reach higher threshold, if you will, to be continually to remain in the team.

第二個是非常明顯的優化，我們正在不斷提高這些RM的評估效率的門檻。所以自然地，對於 RM 來說，如果你願意的話，他們必須達到更高的門檻，才能繼續留在團隊中。

But we're actually actively adjusting the structure obviously, with the heavier investments on a global side, obviously RM’s, will probably also emphasizing on the overall comprehensive capabilities of the skill set of the RM’s.

但我們實際上顯然正在積極調整結構，在全球方面加大投入，顯然是RM，也可能強調RM的技能組合的整體綜合能力。

Grants so I will take the translation for Zhe Yin.

好吧，所以我會為尹哲翻譯。

So in terms of the optimization of our domestic network, we always adhere to the strategy of following the footsteps of our clients. And over the past few years, we have noticed the trend of [Hanover's] individual and clients to relocate from lower-tier city, where they basically accumulated their first bucket of goals, to core cities and first-tier cities and as our strategy follows them.

所以在我們國內網路的優化方面，我們始終堅持跟隨客戶腳步的策略。在過去的幾年裡，我們注意到[漢諾威]個人和客戶從基本上積累了第一桶目標的低線城市遷移到核心城市和一線城市的趨勢，我們的策略如下他們。

So and also on the other hand, given the current challenging macro-economic condition, we need to concentrate and we allocate our core strengths and resources to improve operational efficiency. Therefore, in the fourth quarter last year, we basically eliminated some of the underperforming RMs and professionals.

另一方面，鑑於當前宏觀經濟情勢充滿挑戰，我們需要集中精力，配置我們的核心優勢和資源，以提高營運效率。所以去年第四季我們基本上淘汰了一些表現不佳的RM和專業人士。

So this is quite different from our expansion strategy in the past. So now we are more focusing on allocating our strengths and our resources to the individuals with high performers and in fact, the top performers of the past year their -- basically their KPI and the AUM or transaction value per heads has increased more than 30% over the past year.

所以這和我們過去的擴張策略有很大的不同。因此，現在我們更專注於將我們的優勢和資源分配給表現出色的個人，事實上，去年表現最好的人，基本上他們的 KPI 和 AUM 或人均交易價值增長了 30% 以上在過去的一年。

So in conclusion, in the past few quarters, we are we have rather focus on consolidating our domestic network, so you can probably see that the speed of the RM headcounts, domestically the decrease of the headcounts, it's actually slower than the decrease of the number of cities we consolidated, which means we are currently still under further evaluation of our workforce.

所以總結來說，在過去的幾個季度裡，我們還是比較注重鞏固我們國內的網絡，所以你可能會看到，RM人數的速度，國內人數的減少，實際上比國內的減少速度要慢。我們整合了許多城市，這意味著我們目前仍在進一步評估我們的員工隊伍。

So in terms of your second question on the penetration rates for hedge fund products, structured products and cash management products. So we're not seeing that the penetration rate for our hedge fund and structure product is still very low.

關於第二個問題，對沖基金產品、結構性產品和現金管理產品的滲透率。因此，我們並沒有看到我們的對沖基金和結構性產品的滲透率仍然很低。

However, in the first quarter this year in 2024, the penetration rate for structured product, especially with the principal protection mechanism has been increasing. And we are also seeing the potential of clients, whose wallet with us, is currently in cash management related products as the interest rates starting to or is expected to trend down in the future. We see the opportunity to convert his wallet shares into other alternative investment products, including hedge funds and structured products.

不過，2024年第一季度，結構性產品尤其是保本機制的滲透率不斷上升。我們也看到了錢包裡的客戶目前在現金管理相關產品方面的潛力，因為利率開始或預計未來會下降。我們看到了將他的錢包份額轉換為其他另類投資產品的機會，包括對沖基金和結構性產品。

Helen?

海倫？

Yes, very clear thank you.

是的，非常清楚，謝謝。

(Operator Instructions)

（操作員說明）

Peter [Chung], JP Morgan.

彼得[鐘]，摩根大通。

My first question is about the dividend I wish to tabulate the management words rationale behind on the special dividend payment for this year and the [cadence] that which still has a very strong cash balance on our balance sheet. Looking ahead, do we have any share buybacks and other, long shareholder returns [test]?

我的第一個問題是關於股息，我希望將今年特別股息支付背後的管理層言論理由以及我們的資產負債表上仍然擁有非常強勁的現金餘額的[節奏]製成表格。展望未來，我們是否有任何股票回購和其他長期股東回報[測試]？

And my second question is about the investment income in the -- other income in our P&L, there's the RMB54 billion investment losses in fourth quarter due to investment losses. I wish to understand what the rationale behind and what are the underlying [fundamentals].

我的第二個問題是關於我們損益表中其他收入的投資收入，由於投資損失，第四季有 540 億元的投資損失。我想了解背後的原理是什麼以及根本原因是什麼[基本原理]。

Thank you, Peter. I'll take the first question and [Milo] and Jingbo would jump has needed. So for the special dividend, after ample of discussions with our investors, and we have basically pass on the message to the Board will continue to anticipate strong cash flows from our future operations and by after carefully evaluating the capital need for global expansions and really not any I guess, clear targets for heavy capital utilization. We believe that to the right time to return to our shareholders with a heavier our ratio in terms of special dividend in the form of special dividends.

謝謝你，彼得。我將回答第一個問題，[Milo] 和 Jingbo 會跳起來。因此，對於特別股息，經過與投資者的充分討論，我們基本上已向董事會傳達了這樣的訊息：將繼續預計我們未來業務的強勁現金流，並在仔細評估全球擴張的資本需求後，實際上不會我認為，大量資本利用的明確目標。我們相信，在適當的時候，我們會以更重的比例以特別股息的形式回報我們的股東。

I guess with a depressing on Chinese ADRs share price mostly, actually not too much associated with the fundamentals. We don't believe stock repurchase, actually have too much value at this point, we obviously would not exclude that option going forward, but for this year would prioritize on the cash dividend payout in the form of special dividend.

我猜想主要是中國ADR股價的下跌，其實與基本面沒有太大關係。我們不認為股票回購實際上有太大的價值，我們顯然不會排除未來的選擇，但今年將優先以特別股息的形式支付現金股息。

Adjustment on the valuation is pretty much on par with the market.

估值調整與市場基本持平。

Thank you very much. Yeah, strictly talking to. That's very clear. Thank you very much. Yeah.

非常感謝。是的，嚴格來說。這非常清楚。非常感謝。是的。

This concludes that question and answer session. I would like to turn the conference back over to Mr. Grant Pan for any closing remarks.

問答環節到此結束。我想請潘格蘭特先生發表閉幕詞。

Okay. Thank you very much for our shareholders and analysts for your continued trust and support. And this will conclude today's earnings release. And if you have further questions. We have arranged one-on-one sessions. I'll be very happy to share more insights with you. Thank you.

好的。非常感謝我們的股東和分析師一直以來的信任與支持。今天的財報發佈到此結束。如果您還有其他問題。我們安排了一對一的會議。我很樂意與您分享更多見解。謝謝。

The conference has now concluded. Your Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。

Thank you.

謝謝。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。翻譯由本次活動贊助公司提供