Noah Holdings Ltd (NOAH) 2025 Q1 法說會逐字稿

Good day. And welcome to the Noah's first-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.

再會。歡迎參加諾亞 2025 年第一季財報電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to [Darlene], IR. Please go ahead.

現在我想將會議交給 IR 的 [Darlene]。請繼續。

Thank you, Tim. Good morning and welcome to the 2025 first-quarter earnings call.

謝謝你，提姆。早安，歡迎參加 2025 年第一季財報電話會議。

Joining me today, we have Ms. Wang Jingbo, Co-Founder and Chair Lady. Mr. Zander Yin -- (technical difficulty)

今天與我一起出席的還有共同創辦人兼主席汪靜波女士。尹先生--（技術難度）

Ladies and gentlemen, it appears we've lost connection with our speaker line. Please wait while we reconnect. Thank you for your patience. You may begin the presentation.

女士們，先生們，看來我們的揚聲器線路已經失去連接。請等待我們重新連線。感謝您的耐心。您可以開始示範了。

Thank you. Sorry for the technical interruption.

謝謝。抱歉，造成技術中斷。

Today's call will be divided into three parts. Mr. Ying will begin with an overview of our business highlights followed by [Mr. Pan], who will discuss our financial performance. After the two presentations, there will be a Q&A section.

今天的電話會議將分為三個部分。應先生將首先概述我們的業務亮點，隨後潘先生將討論我們的財務表現。兩位演講結束後，將有問答環節。

In addition, please note that the discussion today will contain forward-looking statements that are subject to res and uncertainty that may cause. Actual results to differ materially from those in our forward-looking statement. Potential risks and uncertainties improve, but are not limited to, those outlined in our filings with the SEC and the Hongkong Stock Exchange, nor does not undertake any obligation to update the forward-looking statements, except as required under applicable law.

此外，請注意，今天的討論將包含前瞻性陳述，這些陳述可能受到時間和不確定性的影響。實際結果與我們的前瞻性聲明中的結果有重大差異。潛在風險和不確定性有所改善，但不限於我們向美國證券交易委員會和香港證券交易所提交的文件中概述的風險和不確定性，也不承擔更新前瞻性陳述的任何義務，除非適用法律另有要求。

Without further ado, I shall pass to our [video machine].

不用多說，我將轉到我們的[視訊機]。

(spoken in Chinese)

（用中文說）

Let me do the translation. Good morning, everyone. Today I will share a summary of overall market conditions and our results for first quarter of 2025. Then I will walk you through our overseas and domestic performance and strategy followed by our insights and outlook for the rest of the year. Our Q1 CIO report predicted that an increased likelihood of market volatility this year, with a higher frequency of such fluctuations.

讓我來做翻譯。大家早安。今天，我將分享 2025 年第一季整體市場狀況和業績的總結。然後，我將向大家介紹我們在海外和國內的業績和策略，以及對今年剩餘時間的見解和展望。我們的第一季 CIO 報告預測今年市場波動的可能性會增加，波動的頻率也會更高。

The main factor in this includes the uncertainty that Trump's return to the presidency is having on global trade and the lack of coordination among major global economies on monetary policies and the increasingly fierce competition and downstream application of AI.

其中主要因素包括川普重返總統寶座對全球貿易帶來的不確定性、全球主要經濟體貨幣政策缺乏協調以及人工智慧競爭和下游應用日益激烈。

With this in mind, our advice to clients is to adopt the following four approaches to their asset allocation. Firstly, maintain discipline asset allocation and prioritize geographic diversification. Secondly, remember, investing is not the same as managing wealth. Wealth management aims for the best overall results.

考慮到這一點，我們建議客戶採用以下四種方法進行資產配置。首先，保持資產配置的紀律，優先考​​慮地域多元化。其次，請記住，投資不同於管理財富。財富管理追求的是整體的最佳效益。

Thirdly, wealth managers need to build robust portfolios to manage and preserve wealth. And lastly, take decisive action and adjust asset allocation when needed.

第三，財富管理者需要建立穩健的投資組合來管理和保值財富。最後，採取果斷行動，在必要時調整資產配置。

Despite the tough global economy, we have a solid quarter. Net in the first quarter was going to be RMB169 million, up 4.7% from the same period last year, and 27.4% sequentially. This was due to operating costs and expenses dropped by 18.8% from last year.

儘管全球經濟情勢嚴峻，但我們本季業績表現穩健。第一季淨利預估為人民幣1.69億元，較去年同期成長4.7%，較上一季成長27.4%。這是因為營運成本和費用較去年下降了18.8%。

On the righthand side, transaction value for our remainly denominated private secondary products grew a remarkable 2.6 times from last year. Revenue contributions from these products increased 9.4%. Transaction value for overseas private investment products also increased 27.7%, with revenue contributing growing 20.3%.

右側，我們以剩餘價值計價的私人二級產品的交易價值較去年同期顯著增長了 2.6 倍。這些產品的收入貢獻增加了9.4%。境外私募投資產品交易金額較去年同期成長27.7%，營收貢獻率成長20.3%。

Revenue from overseas insurance products fell 22.8% from last year. This results in total net revenue in Q1, falling 5.4% from the same period last year. Our sight into the performance and operations of each business unit.

海外保險產品收入較去年同期下降22.8%。這導致第一季的總淨收入比去年同期下降了5.4%。我們了解每個業務部門的績效和營運。

For our overseas performance, net revenues were RMB304 million in Q1, up 5% from last quarter and flat from the same period last year. It made up 49.5% of the group's total revenue. Revenue from overseas investment products grew 2.3% from last year, while revenue from overseas products fell 22%.

海外業績方面，第一季淨營收3.04億元人民幣，較上季成長5%，與去年同期持平。佔集團總收入的49.5%。海外投資產品營收年增2.3%，海外產品收入下降22%。

We now have 131 overseas relationship managers, up 44% from last year. We plan to grow the team and further expand market in Singapore and Southeast Asia. We will also build up our staff team in countries with high network of Chinese like the US, Japan, and Canada.

我們目前有131名海外客戶經理，比去年成長了44％。我們計劃擴大團隊並進一步擴大新加坡和東南亞的市場。我們也將在美國、日本和加拿大等華人網路較多的國家建立我們的員工團隊。

Overseas AA, AM, and recurrent service fees continue to grow. Our overseas commissions only insurance agent team have already recruited 75 agents in the third quarter, whom have already generated about RMB10 million in revenue as well. We aim to expand this team to 150 agents by the end of this year, where they will be a new growth driver for our overseas insurance business.

海外AA、AM和經常性服務費持續成長。我們的海外佣金保險代理人團隊在第三季已經招募了75名代理人，他們也已經創造了約1,000萬元人民幣的收入。我們的目標是在今年年底前將這個團隊擴大到150名代理人，他們將成為我們海外保險業務新的成長點。

Net revenues from overseas wealth management were RMB162 million in Q1, down 9.2%. This was due to strong competition in Hong Kong.

一季海外財富管理淨收入1.62億元，較去年同期下降9.2%。這是由於香港的競爭激烈。

Overseas AUA reached the USD9.05 billion, up 8.7% due to growth in private equity products. This made up 28% of total AUA, up from 24% last year. We made good progress in getting new overseas clients. As of the end of March, we have over 18,200 registered overseas clients, up 15.8%. With over 3,300 active overseas clients up 23.3% compared to the same period last year.

海外AUA達90.5億美元，受惠於私募股權產品成長，成長8.7%。這佔 AUA 總額的 28%，高於去年的 24%。我們在獲取新的海外客戶方面取得了良好的進展。截至3月底，我行海外註冊客戶超過1.82萬戶，年增15.8%。海外活躍客戶超過3,300家，較去年同期成長23.3%。

Net revenues from overseas asset management in Q1 were running the RMB112 million, up 22.3% from last year. This was mainly due to growth in AUM and recurring.

第一季海外資產管理淨收入1.12億元，較去年同期成長22.3%。這主要是由於 AUM 和經常性業務的成長。

Overseas AUM was RMB15.9 billion, up 14.2%. This meant 29% of total AUM up from 24% during the same period last year. AUM for overseas private market products was USD4.6 billion, up 16.4%. It made up 78% of overseas AUM.

海外資產管理規模159億元，成長14.2%。這意味著總 AUM 佔比從去年同期的 24% 上升至 29%。海外私募產品管理規模46億美元，成長16.4%。佔海外AUM的78%。

Our private market products are growing. They include private -- sorry, they include private credit funds, infrastructure funds, hedge funds, and structural products. We have a strong team of over 50 people in our US product center for overseas product selection and investment.

我們的私人市場產品正在成長。它們包括私人——抱歉，它們包括私人信貸基金、基礎設施基金、對沖基金和結構性產品。我們在美國產品中心擁有超過50人的強大團隊，負責海外產品的選擇和投資。

Net revenues from overseas insurance were RMB30 million, down 17.8%. This is due to lower distribution of overseas insurance products. The Hong Kong insurance market is very competitive. It has many new insurance agents and some who are not compliant.

海外保險淨收入為0.30億元，較去年同期下降17.8%。這是由於海外保險產品分銷量下降所致。香港保險市場競爭非常激烈。它有許多新的保險代理人，但也有一些不合規的代理人。

We focus on large large client compliance and policy safety. This helps raise average short year premiums in Hong Kong and Singapore. We are also creating new marketing models. Our goal is to grow the team of commission-only agents to 150 people by the end of 2025. This will help us to get new clients.

我們專注於大客戶合規性和政策安全。這有助於提高香港和新加坡的平均短期保費。我們也正在創建新的行銷模式。我們的目標是到 2025 年底將僅收取佣金的代理商團隊擴大到 150 人。這將有助於我們獲得新客戶。

Net revenues from Mainland China were RMB310 million, down 9.4%. This was due to lower recurring service fees from private equity products and distributions of domestic insurance products. However, renminbi-denominated private secondary products continued to grow. Transaction value and revenue from these products increased significantly. Noah Upright, Gopher, and Glory are independent now and can use their own strategy.

來自中國大陸的淨收入為3.1億元，下降9.4%。這是由於私募股權產品和國內保險產品分銷的經常性服務費較低。不過，以人民幣計價的私人二級產品持續成長。這些產品的交易額和收入大幅增加。Noah Upright、Gopher 和 Glory 現在是獨立的，可以使用自己的策略。

Net revenues from domestic public securities were RMB127 million, up 7.1%. Transaction value of renminbi-denominated private secondary products in Q1 was RMB2.3 billion, up 2.6 times. Transaction value of renminbi-denominated mutual funds was RMB4.3 billion, down 51.4%. Noah Upright currently has branches in 10 cities, plus we have been using online marketing and online services to improve operational efficiency.

境內公募證券淨收入1.27億元，成長7.1%。一季人民幣私募二級產品成交額23億元，成長2.6倍。人民幣公募基金成交金額43億元，下降51.4%。諾亞方舟目前在10個城市設有分支機構，並且我們一直在使用線上行銷和線上服務來提高營運效率。

Net revenues from domestic asset management in Q1 were RMB167 million, down 14.3%. This was due to lower recurrent service fees from existing renminbi-denominated private market products. In the primary market, go are focused on managing exits and distribution of existing assets.

一季境內資產管理淨收入1.67億元，較去年同期下降14.3%。這是由於現有人民幣計價的私人市場產品的經常性服務費較低。在一級市場，GO 專注於管理現有資產的退出和分配。

In Q1, it records RMB1.3 billion exit from private equity market. Private equity market asset AUM was RMB97.3 billion. It made up 91.3% of domestic AUM.

一季度，該公司從私募股權市場退出13億元人民幣。私募股權市場資產管理規模達973億元。佔國內資產管理規模的91.3%。

In the public market, Gopher focuses on data returns from global markets. We are doing this through (inaudible). ETF -- ETFS is roll transaction value in Q1 to a new height of RMB140 million. Net revenues from domestic insurance in Q1 were RMB6.4 million, down 65.6%. This was due to lower distribution of domestic insurance products.

在公開市場，歌斐資產關注全球市場的數據回報。我們透過以下方式實現這一目標（聽不清楚）。 ETF——ETFS 第一季的交易額創下 1.4 億元的新高。第一季國內保險淨收入為640萬元，較去年同期下降65.6%。這是由於國內保險產品分銷量下降所致。

We are adjusting product mix and focusing on more medical and elderly care insurance products. We are also restructuring sales and building a commission on the aging team.

我們正在調整產品結構，將重點放在更多的醫療和養老保險產品上。我們也正在重組銷售部門，並在老化的團隊中建立佣金。

Our priorities for 2025 will be balancing quality and quantity while expanding into new markets with full compliance. Secondly, growing our overseas teams of relationship managers to speed up local clients onboarding. Thirdly, investing in technologies such as AI to improve online services. Fourthly, on site, we shall commit to grow insurance sales by building a new team of commission-only agents to compete better.

我們 2025 年的首要任務是平衡品質和數量，同時在完全合規的情況下拓展新市場。其次，擴大我們的海外客戶經理團隊，以加速本地客戶的入職。第三，投資人工智慧等技術，改善線上服務。第四，在現場，我們將致力於透過建立一支新的只收取佣金的代理人團隊來提高保險銷售額，從而提高競爭力。

On the other side, the company will also offer a range of products such as trucks, relocation and cross-border solutions to enhance our client services. Last but not least, strengthen research, product team, and product mix.

另一方面，該公司還將提供卡車、搬遷和跨境解決方案等一系列產品，以增強我們的客戶服務。最後但同樣重要的一點是，加強研究、產品團隊和產品組合。

Market volatility will stay high in 2025. Wealth management is more important than ever, which has become high net worth clients essential needs. We therefore would advise our wealth management talents to, number one, keep expanding overseas investment channels; two, hold asset the fight against inflation; three, monitor your political risk policy; and lastly, stay flexible in capital and ready to act quickly.

2025年市場波動性仍將維持高位。財富管理比任何時候都更重要，已經成為高淨值客戶的必備需求。因此，我們建議我們的財富管理人才，第一，不斷拓展海外投資管道；第二，持有資產抵禦通膨；第三，監控政治風險政策；最後，保持資本彈性，隨時準備迅速採取行動。

To conclude, the biggest mistake a work manager can commit today is thinking past experiences can guide future decisions.

總而言之，當今工作經理可能犯的最大錯誤就是認為過去的經驗可以引導未來的決策。

I will now pass over [Pan] to go over our financials in more details.

現在我將不再打擾[潘]，而是更詳細地介紹一下我們的財務狀況。

Thank you.

謝謝。

Thank you, Zander. And greetings to everyone joining us today. I'd like to begin by sharing with an overview of our recent share price performances. Management is fully aware that our stock has been trading with an upward pressure for the past few quarters. And only around 0.5 times TB and under cash value. Our cash reserves alone represents USD11.4 per ADS, exceeding our current stock price, and our PE ratio is only around 9 times, well below the average of 12 to 16 times.

謝謝你，贊德。向今天參加我們會議的各位表示問候。首先，我想概述一下我們最近的股價表現。管理層充分意識到，過去幾季我們的股票一直面臨上漲壓力。僅為 TB 的 0.5 倍左右，且低於現金價值。我們的現金儲備相當於每ADS 11.4美元，超過了我們目前的股價，而我們的本益比只有9倍左右，遠低於12至16倍的平均值。

While continuing to focus on regaining the growth after the transformation of the wealth management organization, we've also in the past few quarters introduced several initiatives to enhance shareholder returns, including the USD150 million share buyback program announced in August last year. As of today, we have already repurchased over 1.3 million ADSs equivalent to over 2% of total issued shares.

在持續致力於恢復財富管理組織轉型後的成長的同時，我們也在過去幾季推出了多項措施來提升股東回報，包括去年8月宣布的1.5億美元股票回購計畫。截至今天，我們已經回購了超過 130 萬股 A​​DS，相當於總發行股份的 2% 以上。

Furthermore, as part of our commitment to prioritizing shareholder interests and delivering sustained returns, we plan to distribute annual and special dividends.

此外，作為我們優先考慮股東利益和提供持續回報的承諾的一部分，我們計劃派發年度股息和特別股息。

Total of RMB550 in July subject to AGM approval. This amount represents 100% of our non-GAAP income for 2024 and offers a dividend yield of 12% based on current share price, which is much higher than a 7% to 9% average student yield range among leading international financial institutions.

7 月總額為人民幣 550 元，需經年度股東大會核准。該金額占我們 2024 年非 GAAP 收入的 100%，並根據當前股價提供 12% 的股息收益率，遠高於領先國際金融機構 7% 至 9% 的平均學生收益率範圍。

Notably, this makes the second consecutive year that the company would distribute 100% of its net income. Since 2022, three years in aggregate, we have distributed a total of RMB1.8 billion. Dividends to our investors, roughly equal to 40% of current market cap.

值得注意的是，這是該公司連續第二年分配100％的淨收入。2022年至今，三年累計派發18億元。我們派發給投資者的股息大約相當於當前市值的 40%。

The continuous sharing of high dividend payout is expected to be sustainable. Based on our estimate the future operations and a strong balance sheet position. By the end of quarter one, cash equivalent had increased to RMB4.1 billion, with short-term investments of RMB1.3 billion which has highly liquidity. And has fewer than three months of maturity on average.

持續分享高股息預期將具有可持續性。根據我們對未來營運和強勁資產負債表狀況的估計。截至第一季末，現金等價物增加至41億元，其中短期投資13億元，流動性較強。平均到期日不到三個月。

Our current ratio improved to 4.8 times, but the debt to asset ratio remains stable at 14.5% with no interest bearing debt. Although we have set up a global expansion recently with the new opening up of Tokyo office, revisiting the reopening of Canadian markets and Australian markets, we also want to reassure the investors that organic expansions are contact light in nature.

我們的流動比率改善至 4.8 倍，但資產負債比率保持穩定在 14.5%，且沒有計息負債。儘管我們最近透過在東京設立新辦事處、重新開放加拿大市場和澳洲市場等方式啟動了全球擴張，但我們也想向投資者保證，有機擴張本質上是輕接觸的。

Of course, we understand that investors are also eager to see the signs of a glow. There's no denying that the transitioning of a business model has been challenging for 2024, particularly given the uncertainties in the global investment market, which have affected our financial performances.

當然，我們明白投資人也渴望看到復甦的跡象。不可否認的是，2024 年的商業模式轉型充滿挑戰，尤其是考慮到全球投資市場的不確定性，這影響了我們的財務表現。

But besides balance sheet performance, more importantly, starting in Q1, we're seeing things that are on the right track. The significant progress in building our teams and infrastructure in a more cost-effective transformation strategy ensures that our business remain profitable. With operating profits and non-GAAP net income both growing on a sequential and year-on-year basis.

但除了資產負債表表現之外，更重要的是，從第一季開始，我們看到事情正在走上正軌。以更具成本效益的轉型策略建立我們的團隊和基礎設施的重大進展確保了我們的業務保持盈利。營業利潤和非公認會計準則淨收入均達到環比和年成長。

While we're not yet at the finish line, these strategic initiatives are steadily laying the groundwork for improved performance and future growth opportunities.

雖然我們尚未到達終點線，但這些策略舉措正在穩步為提高績效和未來成長機會奠定基礎。

Let's now dive into the details of our financials.

現在讓我們深入了解我們的財務細節。

First of all, the bottom line as we continue to implement rigorous cost control measures during the quarter, the total operating costs and expenses coming in at RMB429 million, a decrease of 18.8% year over year and 16.7% sequentially. Specifically, with our great effort in simplifying our back office structure, compensation benefits decreased by 21.8% year over year, and 14.1% sequentially.

首先，由於我們在本季繼續實施嚴格的成本控制措施，總營運成本和費用為 4.29 億元，年減 18.8%，季減 16.7%。具體而言，由於我們大力簡化後台結構，薪資福利年減 21.8%，季減 14.1%。

Selling expenses fell by 18.1% year over year and 35.3% sequentially. And TNA is also falling both year over year. Operating profit surged by 53.1% year over year, 35.2% sequentially to RMB186 million in the first quarter, with the operating profit margin up to 30.3% from 21% in the previous quarter.

銷售費用較去年同期下降18.1%，季減35.3%。TNA 也逐年下降。第一季營業利潤年增53.1%，季增35.2%，達到1.86億元；營業利益率由上季的21%上升至30.3%。

Non-GAAP net income was RMB169 million for the first quarter, an increase of 4.7% year over year and 27.4% sequentially. Despite strong performances gained, especially in the US investment products, as mentioned earlier, we'll have to see that domestic market is relatively operating weaker and also some of the slowdown in revenue, causing our net revenues to RMB615 million during the first quarter, slightly down 5.4% year over year and 5.7% sequentially.

第一季非美國通用會計準則淨利為1.69億元人民幣，較去年同期成長4.7%，較上季成長27.4%。儘管業績表現強勁，尤其是在美國投資產品方面，但如前所述，我們必須看到國內市場運營相對較弱，收入增長也有所放緩，導致我們第一季的淨收入為人民幣 6.15 億元，同比略降 5.4%，環比下降 5.7%。

But notably overseas net revenues, accounting for almost half of the total revenues were up from 44.5% in the previous quarter. By net revenue from overseas, or RMB304 million in the first quarter, a slight drop year over year of 0.8% yet an increase of 5% sequentially, driven by a modest improvement in insurance.

但值得注意的是海外淨收入，佔總收入的近一半，高於上一季的44.5%。一季海外淨收入3.04億元，較去年微降0.8%，季增5%，受保險業務溫和改善帶動。

Domestic net revenues during the first quarter decreased by 9.4% year over year and 14.3% potentially to RMB310 million, largely dragged by the sluggish performance insurance under the low interest environment and decreasing in management fee revenue from domestic private equity products. By revenue type during the quarter, one-time emissions decreased by 15% year over year, but increased by 17% sequentially, primarily driven by overseas insurance sales rebounded compared to last quarter.

一季度國內淨收入年減9.4%，降幅達14.3%至3.1億元，主要受低利率環境下業績保費低迷以及國內私募產品管理費收入減少拖累。以本季營收類型劃分，一次性排放量年減15%，但季增17%，主要由於海外保險銷售額較上季反彈。

Recurring service fees decreased by 5.3% year over year and 5.8% sequentially, due to a reduction in domestic revenue from RMB private equity products, which also affected performance-based income in a decrease of 42.1% sequentially, but did increase by 98.4% year over year driven by a significant increase in overseas asset management, as the overseas business become increasingly established and mature.

經常性服務費年減5.3%，環比下降5.8%，原因是人民幣私募股權產品國內收入減少，這也影響了業績收入環比下降42.1%，但隨著海外業務日益成熟，受海外資產管理業務大幅增加的推動，經常性服務費同比增長98.4%。

It comes to total transaction volume, total transaction values in the first quarter were RMB16.1 billion, down 14.7% year over year, and 0.9% sequentially. Transaction value of domestic products, secondary products was RMB3.3 billion during the quarter. That sees a significant increase of 257% year over year and 34.6% sequentially.

從總交易金額來看，第一季總交易額為161億元，年減14.7%，季減0.9%。本季國內產品、二手產品交易額為33億元。與去年同期相比，成長了 257%，與上一季相比，成長了 34.6%。

Transaction value of RMB denominated products in the first quarter declined. However, transaction value of US dollar-denominated products reached USD1.1 billion, up 15% sequentially, but down 4.6% year over year, and accounting for 50% of total transaction volume compared to only 43% in the previous quarter.

一季度人民幣計價產品交易金額下降。但美元計價產品成交額達11億美元，季增15%，但年減4.6%，佔總成交額的50%，上一季僅43%。

Benefiting from the enhanced competitiveness of overseas alternative investment products portfolio, US dollar private equity products totaled USD201 million, up 7.9% year over year and 17% sequentially. And the EFT private secondary products excluding cash management products, total US dollar $112 million up 187.8% year over year and 211.8% sequentially.

受惠於海外另類投資產品組合競爭力增強，美元私募產品規模達2.01億美元，較去年同期成長7.9%，較上季成長17%。不包括現金管理產品的 EFT 私人二級產品總額為 1.12 億美元，年增 187.8%，季增 211.8%。

During the first quarter, US dollar-denominated the AUM grew by 14.2% year over year and 0.8% sequentially to USD5.9 billion, with US dollar-denominated AUA increased by 8.7% year over year, and 3.6% sequentially to USD9.1 billion, reflecting our ability to capture a larger share of clients' US dollar wallets or investment products.

第一季度，以美元計價的資產管理規模（AUM）同比增長14.2%，環比增長0.8%，達到59億美元；以美元計價的資產管理規模（AUA）同比增長8.7%，環比增長3.6%，達到91億美元，反映出我們能夠佔據客戶美元錢包或投資產品的更大份額。

At the end of the first quarter, our client base remained stable in terms of core clients, diamond and black card clients with 9,330. But overseas clients continued to grow to over 18,200 overseas registered clients, an increase of 15.8% year over year, and 3.1% potentially. The total number of overseas diamond and black heart clients now exceeds 1,600.

一季末，我行客戶群維持穩定，核心客戶、鑽石客戶、黑卡客戶共9,330戶。但海外客戶持續成長，海外註冊客戶超過1.82萬戶，較去年同期成長15.8%，潛在成長3.1%。目前海外鑽石及黑心客戶總數已超過1,600家。

To sum up, we must admit that under the current global dynamics with the potential war and the low interest rate environment in Mainland China, it weakens the investors investment sentiment, which may be the biggest hurdle to the industry's revenue growth. However, with the developed business structure and more mature overseas team, we're still confident that company is well positioned ourselves for future growth.

綜上所述，我們必須承認，在目前全球局勢動盪、潛在戰爭以及中國大陸低利率環境下，削弱了投資者的投資情緒，這可能是該行業收入成長的最大障礙。然而，憑藉著完善的業務結構和更成熟的海外團隊，我們仍然相信公司已為未來的成長做好了準備。

Thank you all again for trust and support. With that, I will now open the call to your questions.

再次感謝大家的信任與支持。現在，我開始回答大家的提問。

(Operator Instructions) Helen Li, UBS.

（操作員指示）瑞銀 (UBS) 的 Helen Li。

(spoken in Chinese)

（用中文說）

Thanks for your first question. That's actually related to recent news of some of the domestic high net worth clients receiving notices from tax bureaus about their overseas taxation information. So I'll try to take the first out of the question and Zander and [Nora] will jump in for anything that I probably miss.

感謝您的第一個問題。這其實和最近有消息指出國內部分高淨值客戶收到稅務局關於其境外稅務資訊的通知有關。因此，我會嘗試先解決第一個問題，然後 Zander 和 [Nora] 會接手解決我可能遺漏的問題。

Yeah. We were seeing, many -- or hearing many clients of their friends, receiving calls from tax bureaus, but the information about gathering high net network -- actually all the Chinese tax residents, taxation overseas income has been implemented a few years ago. But obviously, I think the bureau probably now has more collected information that will be able to actually reach out to these individuals.

是的。我們看到，很多——或者聽到很多客戶的朋友，接到稅務局的電話，但關於收集高淨值網絡的信息——實際上所有中國稅務居民，對海外收入徵稅幾年前就已經實施了。但顯然，我認為該局現在可能已經收集了更多的信息，能夠真正聯繫到這些人。

Obviously, I think it's probably the law is always there, and some of the tax professionals advise their clients to be aware of, but the actual enforcement of this information or the self filing probably something to our clients.

顯然，我認為法律可能一直存在，一些稅務專業人士建議他們的客戶注意這一點，但這些資訊的實際執行或自我申報可能對我們的客戶有所影響。

I don't think it necessarily affect their sentiments in terms of future investments in overseas products especially, but obviously I think they are more aware or curious about future tax planning, if you will, how to increase the efficiency in terms of investment. That's something new and probably some new subject for this generation of high net worth individuals who are probably more used to, filing for tax, and gains on the domestic and operating operational high income.

我認為這不一定會影響他們未來對海外產品投資的情緒，但顯然我認為他們更了解或好奇未來的稅務規劃，如果你願意的話，如何提高投資效率。對於這一代高淨值人士來說，這可能是個新事物，他們可能更習慣於申報稅收，以及國內和經營性高收入的收益。

(spoken in Chinese)

（用中文說）

Okay, look. We'll do a quick translation on here. Well, then we just started. It's a challenge, but it's also opportunity to know, regarding our high level clients getting phone calls from the tax bureau. The reason behind that is, because if you look at what we've been doing for our clients, the wealth management, the upper management, and the family heritage visit, all of us are trying to provide solutions to our clients for how to protect their wealth.

好的，看一下。我們將在這裡進行快速翻譯。好吧，那我們就開始了。對於我們的高級客戶接到稅務局的電話來說，這是一個挑戰，但也是一個了解的機會。背後的原因是，如果你看看我們為客戶所做的事情，財富管理、高層管理和家族遺產訪問，我們所有人都在努力為客戶提供如何保護其財富的解決方案。

And also, when they are receiving the phone call from tax bureau and they need to solve that issue, they will need to build a closer relationship, with our relationship. Manager because we walk into their world as a whole to plan for them for the future. And that means we can have a better access to clients wealth and knowing better about their whole planning.

而且，當他們接到稅務局的電話並需要解決這個問題時，他們需要與我們建立更密切的關係。經理，因為我們走進他們的世界，為他們規劃未來。這意味著我們可以更好地了解客戶的財富並更好地了解他們的整個計劃。

So yes, in the short term, there may be a challenge because that affected their investment sentiment. However, in the long run we still believe that it can bring opportunities to the company.

所以是的，短期內可能會有挑戰，因為這影響了他們的投資情緒。但長期來看我們仍然相信它能為公司帶來機會。

Okay.

好的。

Second question, Helen, I'll do a quick translation for you as well.

第二個問題，海倫，我也將為您做一個快速翻譯。

Helen actually asked about, we have an improved efficiency or reduction on CNA and selling expenses in this quarter, and she's actually wondering how much of that has to do with probably, low activity of marketing events as well as the reduction of probably, you know, back office accounts.

Helen 實際上詢問的是，本季度我們的 CNA 和銷售費用是否有所提高或減少，她實際上想知道這在多大程度上與行銷活動活動較少以及後台帳戶減少有關。

So Helen, I just wanted to clarify that obviously some of the expense reduction does come from improvement efficiency, especially in the back office accounts probably optimized around 25% compared to the same period last year as the continuing effort to improve the efficiency and structure. A mid back office to the front office is now showing effect.

海倫，我只是想澄清一下，顯然部分費用的減少確實來自於效率的提高，尤其是後台帳戶，隨著效率和結構的持續改善，與去年同期相比，後台帳戶可能優化了約 25%。中後台到前台的銜接現在正在顯現效果。

We're also seeing a reduction in selling expenses, but that that's partly attributed to probably fewer marketing activities this quarter in the first quarter. We don't think that's necessarily sustainable. That's rather not the direction we're trying to control as long as we are holding this events more efficiently.

我們也看到銷售費用有所減少，但這可能部分歸因於本季第一季的行銷活動減少。我們認為這不一定是可持續的。只要我們更有效地舉辦這些活動，這並不是我們試圖控制的方向。

So we're seeing more marketings coming up in the second quarter, but we're obviously still trying to keep that under reasonable range and also the effectiveness of marketing activities.

因此，我們看到第二季會出現更多的行銷活動，但我們顯然仍在努力將其保持在合理範圍內，並保持行銷活動的有效性。

Helen, does that answer your question?

海倫，這回答了你的問題嗎？

Oh, yes. Crystal clear. Thank you.

哦是的。晶瑩剔透。謝謝。

Thank you.

謝謝。

(Operator Instructions) Peter John, JPMorgan.

（操作員指示）摩根大通的彼得約翰。

(spoken in Chinese)

（用中文說）

Thanks for -- congratulations on their first quarter result and thanks for giving me the opportunity to ask questions. I have two questions.

謝謝－恭喜他們第一季的業績，也謝謝你給我提問的機會。我有兩個問題。

First is for the recent market volatility. We noticed that there's increasing market volatility in in April, and we are wondering what's the kind of behavior in terms of investment sentiment and their cultures on the open product. In addition, some of those clients are the business owners we are wondering whether any of their business is affected by the recent t introduction and how their investment sentiment change?

首先是近期市場的波動。我們注意到四月市場波動性增加，我們想知道投資情緒和開放產品文化方面的行為是什麼樣的。此外，其中一些客戶是企業主，我們想知道他們的業務是否受到最近推出的政策的影響，以及他們的投資情緒如何改變？

My second question is about the overseas business commitment, give us some guidance on what will be the key driver for your overseas business year '25. And on the insurance front, we are wondering whether you not see any sign of an improvement in overseas insurance in the second quarter. Thank you.

我的第二個問題是關於海外業務承諾，請您給我們一些指導，說明25年海外業務的主要驅動力是什麼。在保險方面，我們想知道您是否看到第二季海外保險改善的跡象。謝謝。

(spoken in Chinese)

（用中文說）

We just admitted that the terror will, to create an impact to our clients. Then when we really talk to our different types of clients, the -- I mean the the impact could be slightly different. So yes, a lot of our clients are entrepreneurs and, their business may be related to trade. However, when we talk to a merchant like the EU, the small manufacturing products, those types of companies, yes, they do.

我們只是承認恐怖活動會對我們的客戶造成影響。然後，當我們真正與不同類型的客戶交談時，影響可能會略有不同。是的，我們的許多客戶都是企業家，他們的業務可能與貿易有關。然而，當我們與歐盟這樣的商家、小型製造產品等類型的公司交談時，是的，他們確實有這種想法。

We do see some suspension in orders from overseas or we do see some worries about the orders from well. However, the merchants themselves, they're very pretty confident in their own products and they believe that the China's production is very competitive in this way and could maintain a high margin. And that's why the impact for those in manufacture to could be quite in a short term instead of a long run impact.

我們確實看到一些海外訂單被暫停，或者我們確實看到一些對海外訂單的擔憂。不過，商家本身對自己的產品非常有信心，他們相信中國的生產方式非常有競爭力，可以維持較高的利潤率。這就是為什麼對製造業的影響可能是短期的，而不是長期的。

But then, for some more -- like not a small products, if they are really I think bigger types of manufacturer, they may have a big concern about their future growth. So we believe that our plan these days they're getting more and more used to the concept that they need to have their assets go through the drill distribution, and they also are planning for their own business to go overseas as well.

但是，對於一些更大規模的製造商來說，例如一些小型產品，他們可能會非常擔心未來的成長。因此，我們相信，我們目前的計劃越來越習慣於這樣的概念，即他們需要讓他們的資產經過鑽探分配，他們也在計劃將自己的業務推向海外。

And under these two beliefs, we believe that our clients are getting more mature and that the impact should be rather limited.

在這兩個信念下，我們相信我們的客戶正在變得更加成熟，影響應該是相當有限的。

And in terms of the product side, we see we see that investors are getting more concerned about liquidity. So what does that mean means when they are picking the investment product.

從產品方面來看，我們發現投資人越來越重視流動性。那麼當他們選擇投資產品時這意味著什麼呢？

Tends to be structural products like SCN, or some product that is no with liquidity that means that they can have a chance to do the redemption over different periods of time. So we tend to be to see that this type of products can be more popular among our investors. And on the other hand, it's about the trend of AI development, and we have also seen that any investment products that could have this AI idea behind to be rather popular among our investors as well.

往往是像 SCN 這樣的結構性產品，或是一些沒有流動性的產品，這意味著它們有機會在不同的時間段內進行贖回。因此，我們傾向於認為這類產品會更受投資者的歡迎。另一方面，這是關於人工智慧發展的趨勢，我們也看到，任何能夠融入人工智慧理念的投資產品在我們的投資者中也相當受歡迎。

Okay, on the insurance side, as I mentioned quite some times already, the whole markets are very challenging and very competitive. So what I've been doing is back to basic, that is to serve time. What we do is that we partner with the insurance company and tailor-make profits for our clients.

好的，就保險方面而言，正如我多次提到的，整個市場充滿挑戰且競爭非常激烈。所以我一直在做的事情就是回歸基本面，那就是服刑。我們所做的是與保險公司合作，為客戶量身訂做利潤。

And for those with high premium, we provide discount on a legit basis that -- and we received a good result on that, which is the premium we received for crime for the first year has been increased essentially from in the past around 100,000 to currently around 190,000. So we've seen that this is a great opportunity for the company too because when we look at the Chinese clients, most of them it's still quite insufficient about getting lot of time in their wealth, so we believe that we should keep on building the relationship and selling these insurance products to our clients.

對於那些保費較高的人，我們會在合法的基礎上提供折扣——而且我們在這方面取得了良好的效果，即第一年我們收到的犯罪保費基本上從過去的約 100,000 增加到目前的約 190,000。因此，我們認為這對公司來說也是一個很好的機會，因為當我們觀察中國客戶時，他們中的大多數在財富上投入的時間還遠遠不夠，因此我們認為我們應該繼續與客戶建立關係並向他們銷售這些保險產品。

For overseas investment, that is another part of the product that we've seen clients have great interest because in the past, the US rate stays quite high and keeping a effective saving is already a good return for our clients. However, under the current interest rate cut cycle, we have seen the clients moving their interest into some investment products, so we believe that we want to see some product verification in the near future.

對於海外投資，這是產品的另一部分，我們發現客戶對此非常感興趣，因為過去美國的利率保持在相當高的水平，保持有效的儲蓄對我們的客戶來說已經是一筆不錯的回報。不過，在目前的降息週期下，我們看到客戶把興趣轉移到一些投資產品上，所以我們相信在不久的將來我們希望看到一些產品驗證。

Thank you.

謝謝。

Operator, can you check if there is any more questions from our audience. Otherwise, we will close the call now.

接線生，您能否確認我們的觀眾是否還有其他問題。否則，我們現在就結束通話。

Once again, if you would like to ask a question, please press star and one to join the question queue.

再次強調，如果您想提問，請按星號和一加入提問隊列。

Seeing as there are no questions, I'd like to turn the conference back over to the company for any closing remarks.

鑑於沒有人提問，我想將會議交還給公司，以便發表結束語。

The call is now concluded. Thank you for attending today's presentation. You may now disconnect.

通話現已結束。感謝您參加今天的演講。您現在可以斷開連線。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中的英文陳述是由現場翻譯人員宣讀的。翻譯由贊助此活動的公司提供。