Noah Holdings Ltd (NOAH) 2025 Q2 法說會逐字稿

Good day, and welcome to Noah Holdings second quarter and half year 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.

各位朋友，大家好，歡迎參加諾亞控股2025年第二季及上半年業績電話會議。（操作說明）請注意，本次活動正在錄影。

I would now like to turn the conference over to Doreen Chiu, Senior IR Director. Please go ahead.

現在我將把會議交給高級投資者關係總監Doreen Chiu女士。請繼續。

Thank you. Good morning and good afternoon, and welcome to Noah's second quarter and half year 2025 earnings conference call. Joining me today, we have Ms. Wang Jingbo, the Co-Founder and Chair Lady; Mr. Zander Yin, Co-Founder, Director and CEO; and also Mr. Grant Pan, 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.

謝謝。早安，下午好，歡迎參加諾亞公司2025年第二季及上半年業績電話會議。今天和我一起出席的有：共同創辦人兼董事長王靜波女士；共同創辦人、董事兼執行長尹贊德先生；以及財務長潘格蘭特先生。尹先生將首先概述我們近期的業務亮點，隨後潘先生將討論我們的財務和營運業績。他們都將在接下來的問答環節回答您的問題。

Please note that the discussion today will contain forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from those in our forward-looking statements. Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC and the Hong Kong Stock Exchange. Noah does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

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，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在美國證券交易委員會和香港聯合交易所公開文件中列出的風險和不確定性。除適用法律要求外，Noah 不承擔更新任何前瞻性聲明的義務。

With that, I would now like to pass the call over to Zander. Mr. Yin, please go ahead.

接下來，我想把電話交給贊德。尹先生，請繼續。

Okay. Good morning to everyone and thank you for joining Noah's second quarter 2025 earnings conference call.

好的。各位早安，感謝各位參加諾亞公司2025年第二季財報電話會議。

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

（解讀）2025 年第二季度，隨著川普政府的關稅政策和地緣政治風險從背景噪音變為中心舞台，全球金融市場經歷了顯著波動。利用 Noah 的 CIO 報告對上半年的前瞻性見解，我們的客戶獲得了強勁的投資回報，超過 95% 的黑卡客戶在本季度末實現了累積收益。

After several years of developing and expanding our overseas business, we have established a comprehensive robust product matrix, including VC and PE funds, private credit funds, infrastructure funds, hedge funds, global mutual funds, Hong Kong and US equity structured products and wealth inheritance solutions such as insurance, trust and residency planning. These diverse offerings have all been fully integrated, providing clients with one allocation capabilities and investment expertise needed to solidify their asset base and enhance wealth resilience amid uncertainty.

經過數年發展和拓展海外業務，我們已建立起一套全面且強大的產品體系，包括創投和私募股權基金、私募信貸基金、基礎設施基金、對沖基金、全球共同基金、香港和美國股票結構性產品以及財富傳承解決方案，例如保險、信託和居留規劃。這些多元化的產品都已完全整合，為客戶提供統一的資產配置能力和投資專業知識，以鞏固其資產基礎，並在不確定性中增強財富的抵禦能力。

We are pleased to report that a strong operational and financial performance during the second quarter. Net revenues reached RMB630 million, with income from operations increasing by 20.2% year-over-year and non-GAAP net income surged 78.2% year-over-year and 12% sequentially to RMB189 million. Net revenues for the first half of 2025 were RMB1.2 billion, generating non-GAAP net income of RMB358 million. Our revenue mix continues to improve, driven by growing investment product revenue. Specifically, one-time commissions from investment products have reached their highest point in recent years, making up over 30% of one-time commissions revenue.

我們很高興地報告，第二季營運和財務業績表現強勁。淨收入達人民幣6.3億元，營業收入較去年同期成長20.2%，非GAAP淨利年增78.2%，較上季成長12%，達到人民幣1.89億元。2025年上半年淨收入為人民幣12億元，以非GAAP準則計算的淨利為人民幣3.58億元。在投資產品收入成長的推動下，我們的收入結構持續改善。具體來說，投資產品的一次性佣金已達到近年來的最高點，佔一次性佣金收入的 30% 以上。

Domestically, our strategy remains focused on enhancing relationship manager incentives, reactivating dormant clients and acquiring new clients. Overseas, we continue to expand our relationship manager teams and grow our local client base. In the first half, we added 627 new qualified investors as clients. We continue to make progress in optimizing our internal organization with each business unit building an end-to-end process that spends from product development to sales.

在國內，我們的策略仍專注於提高客戶經理的激勵機制、重新激活休眠客戶以及獲取新客戶。在海外，我們不斷擴大客戶經理團隊，並擴展本地客戶群。上半年，我們新增了 627 位合格投資者客戶。我們不斷優化內部組織，每個業務部門都在建立從產品開發到銷售的端到端流程，從而持續取得進展。

In addition, we are driving cross-selling activities through enhanced client service and increasing overall client activity and engagement. We remain committed to investing in our platform and capabilities, leveraging AI to empower relationship managers and clients while boosting client participation. Concurrently, we are advancing the development of our booking centers and digital platforms to enhance cross-border synergies for client outreach, product integration, digital infrastructure and risk controls, laying a solid foundation for sustainable future growth.

此外，我們正在透過加強客戶服務和提高整體客戶活躍度和參與度來推動交叉銷售活動。我們將持續致力於投資我們的平台和能力，利用人工智慧賦能客戶經理和客戶，同時提高客戶參與度。同時，我們正在推動預訂中心和數位平台的建設，以增強跨境協同效應，拓展客戶、整合產品、完善數位基礎設施和加強風險控制，為未來的永續成長奠定堅實基礎。

I will now dive into the performance and operations of each business unit. Net revenues from overseas reached RMB297 million in the second quarter, accounting for 47.1% of total net revenue with net revenues from overseas investment products continuing to generate solid growth. Our team of overseas relationship managers expanded to 152 by the end of the quarter, a year-on-year increase of 34.5%. The ongoing enhancement to our capacities and deepening expertise drove strong investment returns for clients during the quarter, supporting solid growth in both overseas transaction value and net revenues.

接下來，我將深入分析各業務部門的績效和營運狀況。第二季海外淨收入達人民幣2.97億元，佔總淨收入的47.1%，其中海外投資產品淨收入持續維持穩健成長。到本季末，我們的海外客戶關係經理團隊已增至 152 人，年增 34.5%。本季度，我們不斷提升自身能力，深化專業知識，為客戶帶來了強勁的投資回報，從而支撐了海外交易額和淨收入的穩健成長。

Net revenues from overseas wealth management were RMB129 million during the quarter, down 14.1% year-on-year due primarily to our ongoing strategic focus on investment products, which resulted in a decline in revenue contribution from the distribution of insurance products. Overseas AUA grew 6.6% year-over-year to USD9.1 billion and now accounts for 27.6% of total AUA, primarily driven by increase in distribution of private equity funds.

本季海外財富管理淨收入為人民幣1.29億元，較去年同期下降14.1%，主要原因是公司持續策略性地專注於投資產品，導致保險產品分銷的收入貢獻下降。海外資產管理規模年增 6.6% 至 91 億美元，目前佔總資產管理規模的 27.6%，主要得益於私募股權基金分銷的增加。

Transaction value of US dollar-denominated private market products in the first half of the year increased by 70.3% compared to the same period last year, reaching USD765 million. Within US dollar private secondary products, transaction value of hedge funds and structured products more than doubled year-on-year to USD424 million.

今年上半年，以美元計價的私人市場產品交易金額比去年同期成長了70.3%，達到7.65億美元。在美元私人二級市場產品中，對沖基金和結構性產品的交易額年增超過一倍，達到 4.24 億美元。

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

我們不斷拓展和深化與全球信譽良好的產品和投資夥伴的關係，並已迅速成為亞洲領先的GP（如Aris和Hamilton Lane）旗艦產品的三大分銷管道之一。第二季度，註冊海外客戶數量超過18,900人，年增13%；活躍客戶數超過3,600人，較去年同期成長12.5%。

Net revenues from overseas asset management during the second quarter were RMB108 million, up 11.5% year-over-year, driven primarily by growth in AUM and recurring service fees. Overseas AUM was USD5.8 billion, up 7.4% year-over-year and accounting for 28.5% of total AUM. Net revenues from overseas insurance and comprehensive services during the quarter were RMB59 million, an increase of 91% year-over-year.

第二季海外資產管理淨收入為人民幣1.08億元，年增11.5%，主要得益於資產管理規模和經常性服務費的成長。海外資產管理規模為 58 億美元，年增 7.4%，佔總資產管理規模的 28.5%。本季海外保險及綜合服務淨收入為人民幣5,900萬元，較去年同期成長91%。

The Hong Kong insurance market remains highly competitive. However, our quoted big clients' large policies strategy and cost-effective customized products for major clients is delivering strong results in this environment with average overseas insurance policy size continuing to increase. Additionally, Gori's team of commission-only brokers and external channels has already generated over RMB20 million in revenue, injecting such vitality into new client acquisition.

香港保險市場競爭依然非常激烈。然而，在當前環境下，我們為大客戶提供的巨額保單策略和高性價比的客製化產品取得了顯著成效，海外保險保單的平均規模持續成長。此外，高里的佣金經紀人和外部通路團隊已經創造了超過2000萬元人民幣的收入，為新客戶的獲取注入了活力。

Net revenues from Mainland China during the quarter were RMB333 million, a year-on-year decrease of 1.3%, but a sequential increase of 7.3%. The recovery in the Asia market this year has driven a substantial improvement in the performance of our domestic business. Renminbi-denominated private secondary products continued to gain strong growth momentum in the second quarter, which partially offset a decline in recurring service fees from existing Renminbi private equity products.

本季來自中國大陸的淨收入為人民幣3.33億元，年減1.3%，但季增7.3%。今年亞洲市場的復甦帶動了我們國內業務表現的顯著改善。第二季度，人民幣計價的私募二級市場產品持續保持強勁的成長勢頭，部分抵消了現有人民幣私募股權產品經常性服務費的下降。

Notably, the rebound in the Asia market increased investor confidence in the secondary market and is fueling growth in our domestic public securities business. Net revenues from domestic public securities during the quarter were RMB132 million, a year-over-year increase of 12.8%.

值得注意的是，亞洲市場的反彈增強了投資者對二級市場的信心，並推動了我們國內公開證券業務的成長。本季國內公募證券淨收入為人民幣1.32億元，較去年同期成長12.8%。

Transaction value of Renminbi-denominated secondary products continued their strong momentum with transaction value for private secondary products in the first half of the year, reaching RMB6.1 billion, a significant year-over-year increase of 185.3%. The rebound in the Asian market provides a favorable environment for Renminbi-denominated secondary products, enabling us to achieve continued breakthroughs in this business.

人民幣計價二級市場產品的交易額持續保持強勁勢頭，上半年私人二級市場產品的交易額達到人民幣61億元，年增185.3%。亞洲市場的復甦為人民幣計價的二級產品提供了有利的環境，使我們能夠在該業務領域不斷取得突破。

Net revenues from domestic asset management during the quarter were RMB177 million, down 10.6%. This was due to lower recurring service fee from existing Renminbi-denominated private equity products. In the primary market, Gopher focuses on facilitating exits and distribution of assets managed by the funds where it recorded RMB800 million in exits related to private equity products. Net revenues from domestic insurance during the quarter were RMB716 million, a year-over-year decrease of 38.7%. This was a result of our strategic decision to reduce the promotion of domestic insurance products.

本季國內資產管理淨收入為人民幣1.77億元，下降10.6%。這是由於現有人民幣計價私募股權產品的經常性服務費較低所致。在一級市場，Gopher專注於促進基金管理資產的退出和分配，其在私募股權產品相關的退出交易中實現了8億元的交易額。本季國內保險業務淨收入為人民幣7.16億元，較去年同期下降38.7%。這是我們減少國內保險產品推廣的策略決策的結果。

Looking ahead to the second half of the year, we will focus our efforts on the following three strategic priorities. First, we will concentrate on high-net-worth clients and actively expand our customer base. We are proactively entering mature financial markets such as the United States, Canada and Japan to serve global Chinese clients. In these established markets, we will adopt a business partner cooperation model to attract more talent and broaden our client base. Our positioning is clear to be a wealth management platform dedicated to serving global Chinese high net worth investors.

展望下半年，我們將專注於以下三個策略重點。首先，我們將專注於高淨值客戶，並積極擴大客戶群。我們正積極進入美國、加拿大和日本等成熟金融市場，為全球華人客戶提供服務。在這些成熟的市場中，我們將採用商業夥伴合作模式來吸引更多人才，並擴大客戶群。我們的定位很明確，就是成為致力於服務全球華人高淨值投資者的財富管理平台。

Second, we will continue to enrich our global product offerings across various categories to meet the diverse needs of our clients. Our robust product portfolio enables us to provide more competitive investment solutions. In the primary market, we will expand our ecosystem partnership to develop customized investment solutions and exclusive opportunities.

其次，我們將繼續豐富我們在各個類別中的全球產品供應，以滿足客戶的多樣化需求。我們強大的產品組合使我們能夠提供更具競爭力的投資解決方案。在一級市場，我們將擴大生態系統合作夥伴關係，以開發客製化的投資解決方案和獨家投資機會。

In the secondary market, leveraging our global investment research capabilities, we will carefully select high-quality strategies from top-tier managers to enhance our ability to deliver robust asset allocation solutions. We will also actively explore new opportunities in digital assets, pushing the boundaries of wealth and asset management to provide clients with a more comprehensive and cutting-edge investment experience.

在二級市場，我們將利用我們的全球投資研究能力，精心挑選頂級基金經理人的高品質策略，以增強我們提供穩健資產配置解決方案的能力。我們也將積極探索數位資產領域的新機遇，突破財富和資產管理的界限，為客戶提供更全面、更前沿的投資體驗。

Today, we are also pleased to announce that we have selected Coinbase Asset Management as a strategic partner to establish OLIFT stablecoin yield fund. We shall expand our digital asset-related product lines and collaborate with licensed compliant institutions to capture opportunities in this rapidly growing emerging asset class. This initiative aims to open new growth engines for our clients, global asset allocation strategies with future expansion opportunities in compliance digital asset fund management.

今天，我們也很高興地宣布，我們已選擇 Coinbase Asset Management 作為策略合作夥伴，共同建立 OLIFT 穩定幣收益基金。我們將拓展數位資產相關產品線，並與獲得許可的合規機構合作，以抓住這個快速成長的新興資產類別中的機會。該舉措旨在為我們的客戶開闢新的成長引擎，制定全球資產配置策略，並在合規數位資產基金管理領域創造未來的擴張機會。

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

第三，我們將繼續致力於在追求成長的同時提高營運效率。我們將繼續在營運中融入人工智慧，以增強客戶經理、客戶以及中後台員工的能力。這些措施顯著改善了客戶體驗，並降低了營運成本。在中國企業全球擴張帶來的巨大機會中，我們渴望諾亞方舟能夠出現在世界各地有中國客戶的任何地方。

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

現在我將把麥克風交給我們的財務長格蘭特，讓他更詳細地介紹我們的財務狀況。謝謝大家。

So warm greetings to everyone joining us today. I'm very excited to announce our financial performance in the second quarter of 2025 that reflects steady progress and resilience across our operations. Supported by revenue growth, disciplined cost management and investment income, we achieved non-GAAP net profit of RMB189 million. This represented 78.2% year-over-year growth and a 12% sequential increase. For the first half of 2025, non-GAAP net income totaled RMB358 million, a 33.9% year-over-year increase.

向今天到場的各位致以熱烈的問候。我非常高興地宣布我們2025年第二季的財務業績，這反映了我們各項業務的穩定發展和韌性。在營收成長、嚴格的成本管理和投資收益的支持下，我們實現了人民幣1.89億元的非GAAP淨利。這相當於同比增長 78.2%，環比增長 12%。2025年上半年，非GAAP淨利總計人民幣3.58億元，較去年同期成長33.9%。

More importantly, management is very encouraged by the structural improvements in our operations this quarter. We achieved substantial growth in revenues related to investment products with a 92% year-over-year increase and a 30.6% sequential rise in that category, driven by clients more uplifting investment sentiment, it also attributed to wider selection of quality investment solutions that we provided to our clients, both onshore and offshore.

更重要的是，管理階層對本季營運結構的改進感到非常鼓舞。我們投資產品相關收入實現了大幅增長，同比增長 92%，環比增長 30.6%，這主要得益於客戶投資情緒的提振，同時也歸功於我們為客戶提供了更廣泛的優質投資解決方案，無論是在境內還是境外。

In terms of transaction values, RMB-denominated products recorded a 35.0% year-over-year growth and 8.3% sequential increase, while USD-denominated products grew 5.2% year-over-year and 3.8% sequentially. As a result, our total transaction values reached RMB17 billion, reflecting a 17.7% year-over-year increase and a 5.4% sequential rise.

從交易金額來看，人民幣計價產品年增 35.0%，季增 8.3%；美元計價產品年增 5.2%，季增 3.8%。因此，我們的交易總額達到人民幣170億元，年增17.7%，季增5.4%。

For the first half, commissions from investment products grew by 95.9% year-over-year with transaction values for RMB-denominated private secondary products stood out, growing by 185.3% year-over-year to RMB6.1 billion. Similarly, US dollar private secondary products, excluding cash management products, grew by impressive 282.20% year-over-year to USD424 million despite volatility in US equity markets.

上半年，投資產品佣金年增 95.9%，其中人民幣計價的私人二級市場產品交易金額表現突出，較去年同期成長 185.3% 至 61 億元。同樣，儘管美國股市波動，但不包括現金管理產品在內的美元私人二級市場產品同比增長了驚人的 282.20%，達到 4.24 億美元。

So in this context, one-time commissions contributed RMB155 million in the second quarter, marking a 14% year-over-year increase. Recurring service fees and performance-based income remained steady at RMB406 million and RMB23 million, respectively. Total net revenue reached RMB630 million for the quarter, reflecting a 2.2% year-over-year increase and a 2.4% sequential growth.

因此，在此背景下，第二季一次性佣金貢獻了人民幣1.55億元，年增14%。經常性服務費和績效收入分別維持在人民幣4.06億元和人民幣2,300萬元。本季淨收入總額達人民幣6.3億元，年增2.2%，季增2.4%。

Breaking revenue down by region, overseas net revenues continues to drive growth, recorded RMB601 million in the first half of 2025. Not only did it account for 48.3% of total net revenues in the first half of the year, but over 85% of newly generated revenue that was originated from offshore products. In the meantime, we continue to stay conscious of costs and expenses. Total operating costs and expenses for the first half were RMB897 million, down 11.2% year-over-year.

按地區劃分收入，海外淨收入持續推動成長，2025 年上半年錄得 6.01 億元人民幣。它不僅佔上半年總淨收入的 48.3%，而且佔來自海外產品的新增收入的 85% 以上。同時，我們將繼續關注成本和費用。上半年總營運成本及費用為8.97億元，年減11.2%。

Key reductions were achieved in managing a more optimal headcount structure while maintaining investments in growth area. Total OpEx, excluding total compensation and benefits declined by 9.3% year-over-year. This efficiency enabled us to achieve an operating profit of RMB347 million for the first half, up 35.8% year-over-year with an operating profit margin of 27.9% compared to 20.2% in the same period last year.

透過優化人員結構，同時保持對成長領域的投資，實現了關鍵性的人員精簡。不包括總薪酬和福利在內的總營運支出較去年同期下降 9.3%。這項效率使我們上半年實現了人民幣3.47億元的營業利潤，年增35.8%，營業利潤率為27.9%，而去年同期為20.2%。

For the second quarter, operating profit were RMB161 million with operating margin of 25.6%. Net income for the first half was RMB322 million, representing a 39.4% year-over-year increase despite the booking of about RMB40 million in withholding taxes related to dividends distributed during this period.

第二季營業利潤為人民幣1.61億元，營業利益率為25.6%。儘管提列了與本期分紅相關的約4,000萬元預提稅款，但上半年淨利仍為人民幣3.22億元，年增39.4%。

As of June 30, 2025, total AUM stood at RMB145.1 billion, reflecting some pressure from redemptions of RMB-denominated products. However, US dollar-denominated AUM grew by 7.4% year-over-year to USD5.8 billion, while US dollar-denominated AUA increased by 6.6% year-over-year to USD9.1 billion, demonstrating our ability to continue to capture share of clients US dollar investment allocations. At the end of the second quarter, our overseas new client base continued to grow with a number of overseas registered clients increasing by 13% year-over-year and 4.2% sequentially.

截至 2025 年 6 月 30 日，資產管理規模總計為人民幣 1,451 億元，反映出人民幣計價產品的贖回帶來了一定的壓力。然而，以美元計價的資產管理規模年增 7.4% 至 58 億美元，而以美元計價的資產管理規模年增 6.6% 至 91 億美元，這表明我們有能力繼續獲得客戶美元投資配置的份額。第二季末，我們的海外新客戶群持續成長，海外註冊客戶數量年增 13%，較上季成長 4.2%。

The total number of overseas Diamond and Black Card clients now exceeds 1,640. Overseas active clients reached 3,650, up 12.5% year-over-year and 7.9% sequentially. Notably, we saw meaningful growth in our new golden clients that is qualified investors or qualified professional investors by definition, increased by 627% within the first six months of this year. Although it takes time for brand-new clients to mature into the core client group, namely Black and Diamond clients, we're very confident that with a continuous global expanding mindset, the company is steadily gaining new market share worldwide.

目前海外鑽石卡和黑卡客戶總數已超過 1,640 人。海外活躍客戶達 3,650 人，年增 12.5%，季增 7.9%。值得注意的是，我們新獲得的黃金客戶（即合格投資者或合格的專業投資者）數量實現了顯著增長，今年前六個月增長了 627%。雖然新客戶需要時間才能成長為核心客戶群，即黑鑽客戶，但我們非常有信心，憑藉持續的全球擴張思維，公司正在穩步獲得全球新的市場份額。

Our balance sheet remains sound. As of June 30, 2025, combined cash and short-term investments totaled RMB5.4 billion, and we continue to carry zero interest-bearing liabilities. Additionally, net investment gains for the quarter exceeded RMB60 million, reflecting the realization of potentials from our past strategic investments.

我們的資產負債表依然穩健。截至2025年6月30日，現金及短期投資合計人民幣54億元，我們繼續維持零計息負債。此外，本季淨投資收益超過人民幣6,000萬元，反映了我們過去戰略投資潛力的實現。

In closing, the second quarter of 2025 represents a meaningful step forward for our business in the right direction, marking an important milestone of restructuring efforts and confirming the positive impact. Enhancing shareholder returns remains our priority, and I'm pleased to share that we have returned over RMB1.8 billion cumulatively to shareholders through dividend payments, share buybacks for the past three years. And the Board and management is committed to disciplined capital distributions to our shareholders in the long run.

綜上所述，2025 年第二季是我們業務朝著正確方向邁出的重要一步，標誌著重組工作的一個重要里程碑，並證實了其正面影響。提高股東回報仍然是我們的首要任務，我很高興地告訴大家，過去三年，我們透過派發股息和股票回購累計向股東返還了超過18億元。董事會和管理階層致力於長期以審慎的態度向股東分配資本。

Moreover, with a book value per ADR of USD18.35 per share, we believe that the current share price still remains undervalued, offering shareholders an attractive opportunity. Looking ahead, we remain focused on enhancing shareholder value, driving sustainable growth and achieving long-term success.

此外，每股 ADR 的帳面價值為 18.35 美元，我們認為目前的股價仍然被低估，為股東提供了一個有吸引力的機會。展望未來，我們將繼續專注於提升股東價值、推動永續成長和實現長期成功。

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

感謝各位股東的信任與支持。現在我們開放提問環節。

(Operator Instructions) Helen Li, UBS.

（操作說明）Helen Li，瑞銀集團。

(spoken in foreign language) Let me translate my question. This is Helen from UBS. I've got two questions. The first is, could you please provide more details on the private credit digital yield fund, including the strategic considerations behind this move, the management fee structure and client interest in such products? Additionally, are there any other plans in the cryptocurrency field besides the stablecoin yield fund?

（用外語說）讓我翻譯一下我的問題。這是瑞銀集團的Helen。我有兩個問題。首先，能否請您詳細介紹一下私募信貸數位收益基金，包括此舉背後的策略考量、管理費結構以及客戶對這類產品的興趣？此外，除了穩定幣收益基金之外，在加密貨幣領域還有其他計畫嗎？

My second question is, what was the CIO house view regarding client asset allocation? How would you describe the current client investment appetite, particularly the demand for offshore products compared to onshore products? Do you anticipate a strong growth momentum in investment product distribution to continue into the third and fourth quarters?

我的第二個問題是，首席投資長們對客戶資產配置的看法是什麼？您如何描述現有客戶的投資意願，特別是與在岸產品相比，對離岸產品的需求？您預計投資產品分銷的強勁成長動能能否延續到第三季和第四季？

(interpreted) Sure. Thank you, Zander. It's the first cooperation in the market to launch this stablecoin yield fund. And as we mentioned in our CIO report, indeed from last year to this year, in our CIO report, we have been emphasizing the importance for our clients to distribute their assets in stablecoin, this new asset class for two years now. And that's why we have been proud to announce that we've been partnered with Coinbase to launch our first fund. And having said that, we still emphasize that the prudency that we needed to maintain being a wealth management company. And that's why the partner we choose at this time is Coinbase.

（翻譯）當然。謝謝你，贊德。這是市場上首個推出此類穩定幣收益基金的合作項目。正如我們在首席資訊長報告中提到的那樣，事實上，從去年到今年，我們在首席資訊長報告中一直強調，對於我們的客戶來說，將資產分散投資於穩定幣這種新的資產類別至關重要，這種情況已經持續了兩年。因此，我們很自豪地宣布，我們已與 Coinbase 合作推出我們的第一支基金。儘管如此，我們仍然強調，作為一家財富管理公司，我們需要保持謹慎的態度。這就是為什麼我們此時選擇 Coinbase 作為合作夥伴的原因。

And then in terms of the fee structure, we would just say it's the same as any other investment products we have been distributing to our clients. That's not much special between the different types of products.

至於費用結構方面，我們只想說它與我們一直以來向客戶分銷的任何其他投資產品都一樣。不同類型的產品之間並沒有太大的差異。

Regarding your questions about the investment products that clients may have high interest. So what we have seen in the first two quarters this year, we saw that clients are having more interest in deploying the asset and wealth into investment products. The reason behind that, we believe that in the previous years during the 2020 to 2022 because of the geopolitical situation and other noises in the market, investors become more cautious, but that they are also learning as well.

關於您提出的有關客戶可能非常感興趣的投資產品的問題。因此，從今年前兩季的情況來看，客戶對將資產和財富投入投資產品越來越感興趣。我們認為，造成這種情況的原因是，在 2020 年至 2022 年期間，由於地緣政治局勢和市場上的其他幹擾因素，投資者變得更加謹慎，但他們也從中吸取了教訓。

So after a few years of learning and adapting to the current environment, we believe that clients are now more confident and clear about what they should buy and they still need to deploy the asset because after all, wealth management should be a long-term planning instead of just a very defensive investment or very short-term investment.

因此，經過幾年的學習和適應，我們相信客戶現在對他們應該購買什麼更有信心和更清楚，而且他們仍然需要部署資產，因為畢竟，財富管理應該是一項長期規劃，而不是一項非常保守的投資或非常短期的投資。

So when client incentive is going upward, domestically, mainly it's driven also by the Asian market. But being a very prudent organization, we have been also observing the secondary markets in China if it's overhit in the moment because of it has been driven by money flows obviously. And then, however, overseas, we've seen more options. And particularly, we have seen the opportunity among the overseas Chinese because they got wealth in the overseas market, but they may not get as good service as they could have in the domestic market. And particularly, they may lack of information in different investment products.

因此，當國內客戶獎勵措施上調時，主要也是由亞洲市場推動的。但作為一個非常謹慎的組織，我們也一直在觀察中國的二級市場，如果目前市場受到過度衝擊，顯然是因為資金流動所致。然而，在海外，我們看到了更多選擇。尤其值得注意的是，海外華人雖然在海外市場累積了財富，但他們可能無法獲得像在國內市場那樣優質的服務，因此我們看到了海外華人的機會。尤其是，他們可能缺乏對不同投資產品的資訊。

So what Noah has been doing, we partner with all these prominent GPs globally and that we've been trying to provide more information to our clients when they are trying to deploy their asset. And as we've emphasized in our CIO report is always about the balance between growth, return and risk. And we will always follow our principle as list out in CIO report. That is the investment triangle that we try to use the different assets to balance risk and return.

所以，Noah 一直在做的，就是與全球所有這些著名的普通合夥人合作，並且我們一直在努力為我們的客戶提供更多信息，以便他們在部署資產時能夠更好地了解情況。正如我們在資訊長報告中所強調的那樣，關鍵始終在於成長、回報和風險之間的平衡。我們將始終遵循首席資訊長報告中列出的原則。這就是我們嘗試利用不同資產來平衡風險和報酬的投資三角模型。

And particularly the new theme that we have introduced this round in CIO report is a deflation caused by technology. And that we believe that that's the major reason why we have been advising our clients to invest in AI or Coinbase related investment products.

尤其值得一提的是，我們在本輪 CIO 報告中提出的新主題是科技導致的通貨緊縮。我們認為，這正是我們一直建議客戶投資人工智慧或 Coinbase 相關投資產品的主要原因。

(interpreted) So from our Chair Lady, she emphasized that Coinbase in this world, we must emphasize that the risk could still be very high. And that's why being a responsible wealth management company, we've been emphasizing in compliance while we are looking at innovation.

（翻譯）因此，我們的主席強調，在這個世界上，Coinbase 的風險仍然可能非常高。因此，作為一家負責任的財富管理公司，我們在專注於創新的同時，也一直強調合規性。

So this round, we've chosen the partner, which have been widely agreed on their compliance standard. And as mentioned in CIO report, we have been suggesting our clients to invest around 1% to 5% of their asset -- total assets to be in the Coinbase related products. And most importantly, we believe that Noah could be the bridge -- to be the bridge to provide compliance products in this area.

因此，在這一輪中，我們選擇了合作夥伴，他們的合規標準已被廣泛認可。正如 CIO 報告中提到的那樣，我們一直建議客戶將總資產的 1% 到 5% 投資於 Coinbase 相關產品。最重要的是，我們相信 Noah 可以成為一座橋樑——一座為該領域提供合規產品的橋樑。

And last but not least, not only this one product that we launched that I just mentioned, going forward, we will continue to study and going to launch more related products depends on our clients' needs. We believe that by time, they will learn more about this asset class, and they should have more demand in this area.

最後但同樣重要的是，我們不僅推出了我剛才提到的這款產品，未來我們將繼續研究並根據客戶的需求推出更多相關產品。我們相信，隨著時間的推移，他們會對這類資產有更多了解，對這類資產的需求也會增加。

Helen, did we answer your question, Helen?

海倫，我們回答了你的問題嗎？

(spoken in foreign language)

（用外語說）

Next question, please.

下一個問題。

Peter Zhao, JP Morgan.

Peter Zhao，摩根大通。

(spoken in foreign language) This is Peter from JPMorgan. I have two questions. First is we wish to understand what's the third quarter operating trend for Noah. We have seen there's a strong pickup in domestic investment sentiment lately. We wish to understand what Noah has observed about the investment sentiment on your platform and the wealth management product transaction volume trend in third quarter quarter-to-date and how does this compared to second quarter?

（用外語說）我是摩根大通的彼得。我有兩個問題。首先，我們希望了解諾亞第三季的營運趨勢。我們看到，近來國內投資情緒強勁回升。我們想了解 Noah 觀察到的貴平台投資情緒以及第三季至今的財富管理產品交易量趨勢，以及與第二季相比情況如何？

My second question is about the overseas expansion. We noticed that management has mentioned the plan to expand into the US, Canada and Japan. We wish to understand how is the progress so far and what to expect in second half of this year and next year? And when do you expect this new market can meaningfully contribute to your client growth and revenues? And we also wish to understand how this overseas expansion plan will have impact on our operating expense trend going forward.

我的第二個問題是關於海外擴張的。我們注意到管理層提到了進軍美國、加拿大和日本市場的計劃。我們想了解目前的進展情況，以及今年下半年和明年的預期情況？您預計這個新市場何時才能為您的客戶成長和收入做出實質貢獻？我們也希望了解這項海外擴張計畫將如何影響我們未來的營運費用趨勢。

(interpreted) So Peter, regarding your question about the investment sentiment looking forward to the third quarter. And yes, we have to say that during different events that we've been organizing when we met with clients, we have seen strong interest from them. And unlike in the previous period, they would be more prudent and prefer lower risk return or lower risk products. We have seen that because of the Asian market and also because of the US interest rate environment, they are now showing more interest in investing in different types of investment products.

（譯）彼得，關於你提出的關於展望第三季的投資情緒的問題。是的，我們必須說，在我們組織的各種活動中，當我們與客戶會面時，我們看到了他們的濃厚興趣。與前期不同，他們會更加謹慎，更傾向於選擇風險較低或收益較低的產品。我們看到，由於亞洲市場以及美國的利率環境，他們現在對投資不同類型的投資產品表現出更大的興趣。

And also, when we talk to clients, one of the reflection that we've been collecting is that we've been able to provide more and more diversified products with different GPs. And that's because we have set up the product center in the USA. And that we've been able to contact and have connection with more reputable GPs from broadly and that's why we've been able to provide a better product matrix to our clients.

此外，當我們與客戶交談時，我們收集到的回饋之一是，我們已經能夠提供越來越多樣化的產品，並擁有不同的GP（全科醫生）。這是因為我們在美國設立了產品中心。正因如此，我們才能與更多信譽良好的全科醫生建立聯繫，從而為客戶提供更好的產品組合。

However, we must emphasize that being a wealth management company or what the core of wealth management should be long-term return. So it's not about any short-term environment changes or client feeling about the market or any sentiment-driven investment. So internally, we emphasize on long-term return instead of just selling products according to market sentiment.

但是，我們必須強調，作為一家財富管理公司，財富管理的核心應該是長期回報。所以這與任何短期環境變化、客戶對市場的感覺或任何情緒驅動的投資都無關。因此，在公司內部，我們更注重長期回報，而不是只根據市場情緒來銷售產品。

(interpreted) So about our global strategy and as mentioned by Chair Lady, we have been developing our overseas market over the last three years. And what has been achieved must be the product matrix and being a wealth management company, this is one of the very important criteria that we have already achieved.

（翻譯）那麼關於我們的全球策略，正如主席女士所提到的，在過去的三年裡，我們一直在開發海外市場。而我們已經取得的成就一定是產品矩陣，作為一家財富管理公司，這是我們已經實現的非常重要的標準之一。

So next step, we would say it's more about branding. When we talk about branding, it's we -- what we've seen is that we serve Chinese globally. But then currently, we don't see much of other organizations being able to serve Chinese across different legal jurisdictions. And that we believe is going to be our very committed target going forward.

所以下一步，我們認為更多的是關於品牌建立。當我們談到品牌建立時，我們——我們看到的是，我們服務全球華人。但目前，我們很少看到其他組織能夠為不同司法管轄區的中國人提供服務。我們相信，這將是我們未來矢志不渝的目標。

And in terms of the strategic planning, so in -- we have three booking centers in the US, Hong Kong and Singapore. And also, for the non-booking centers such as Japan, Canada that we have already mentioned previously, it's going to be the asset management for the clients using the (inaudible) [bank]. So we believe that Noah's strength is we have trust of course with our clients. And with this trust, we have seen that some of our clients from domestic markets are already moving to overseas market, and that should be our strong client base when we're developing our overseas market.

就策略規劃而言，我們在美國、香港和新加坡設有三個預訂中心。此外，對於我們先前提到的日本、加拿大等非預訂中心，將由使用該平台的客戶提供資產管理服務。（聽不清楚）[銀行]。所以我們相信，諾亞的優勢在於我們贏得了客戶的信任。憑藉這份信任，我們看到一些來自國內市場的客戶已經開始向海外市場拓展，這應該會成為我們開發海外市場時的強大客戶基礎。

Okay. So I'll take the third question on OpEx, Peter. So we basically have reached a stage of rather comfortable structure in terms of frontline and mid-back office. I think we're pretty much after a couple of years transaction, a transition period, we're actually pretty comfortable with the mix of frontline and mid-back office.

好的。那麼，我來回答關於營運卓越性的第三個問題，Peter。因此，我們在前線和中後台辦公結構方面基本上已經達到了一個相當舒適的階段。我認為經過幾年的交易和過渡期，我們現在對前線和中後台的組合已經相當滿意了。

Secondly, also the balance between fixed salary and also variable costs, both onshore and offshore, we probably are looking to maintain that structure. But obviously, not excluding some short-term spikes when we -- as Chair Lady and CEO, Zander mentioned, with international expansion, we'll probably get new talents in new markets or new business segments. But I think overall, the big picture, comp and benefits-wise, we're pretty comfortable.

其次，我們也希望維持固定工資和變動成本（包括境內和境外成本）之間的平衡，我們可能希望維持這種結構。但顯然，正如董事長兼執行長 Zander 所提到的，隨著國際擴張，我們可能會在新市場或新業務領域獲得新的人才，這不排除會出現一些短期波動。但我認為整體而言，從薪資和福利來看，我們相當滿意。

In terms of selling and marketing expenses, obviously, we have seasonality. We typically are a little bit slower after Spring Festival than summer vacation. But we have traditionally busier schedules coming up in the third quarter, obviously, towards the end of the year as well. But I think on the annual basis, I'm also pretty comfortable in terms of maintaining a similar range of operating margin.

就銷售和行銷費用而言，顯然存在季節性因素。通常來說，春節過後我們的工作節奏會比暑假後慢一點。但很顯然，我們在第三季以及年底的日程安排通常會更加繁忙。但我認為從年度層面來看，我也有相當信心維持類似的營業利潤率範圍。

Peter, does that answer your question?

彼得，這樣回答你的問題了嗎？

Oh, that's very clear.

哦，這很清楚。

(Operator Instructions) Xiaodan Zhang, CICC

（操作說明）張曉丹，中銀

(spoken in foreign language) I'll translate my questions. I have two questions. The first one is other operating expenses decreased over 80% year-over-year and income from equity in affiliates increases to over RMB47 million. These changes affect the net income. Could you please explain the reasons behind and future change? The second question is the cash balance remains high at RMB3.8 billion. So do you have any dividend plan?

（用外語說）我會翻譯我的問題。我有兩個問題。第一，其他營運費用年減超過 80%，聯營公司股權收益增加至超過 4,700 萬元人民幣。這些變化會影響淨收入。請問您能否解釋一下背後的原因以及未來的變化方向？第二個問題是現金餘額仍然很高，為人民幣38億元。你們有分紅計畫嗎？

Sure, Ms. Xian. I'll take the question for the two fluctuations. So basically, the overall impact, especially the RMB47 million actually comes from some of the strategic investment portions that we have as the co-GP investment in the past. So some of the companies actually became successful listed. So the total market value in the fund actually has a markup. So that quarter, actually, we have a pretty positive impact. Hopefully, it doesn't reflect in the future. But it seems that from the company's current performance, we're optimistic that we'll maintain a rather strong performance and obviously feedback to our balance sheet and P&L.

當然可以，冼小姐。我將回答關於這兩種波動的問題。所以基本上，整體影響，特別是人民幣 4700 萬元，實際上來自我們過去作為共同普通合夥人進行的一些戰略投資部分。所以其中一些公司最後成功上市了。因此，該基金的總市值實際上已經包含了溢價。所以實際上，那個季度我們取得了相當正面的影響。希望這種情況不會在未來重演。但從公司目前的業績來看，我們樂觀地認為我們將保持相當強勁的業績，這顯然會對我們的資產負債表和損益表產生正面影響。

In terms of dividend scheme, I think the only thing I can say on behalf of management and Board, as we have mentioned in the earnings release that we're very committed to returning some of the, obviously, operational results to our shareholders. And we have cumulatively distributed a rather large amount, I think probably ranking very, very high in Chinese ADR companies that cumulatively RMB1.8 billion to our shareholders and obviously, another full payout of 2024's net profit.

關於分紅計劃，我認為我代表管理層和董事會唯一能說的是，正如我們在盈利報告中提到的那樣，我們非常致力於將部分營運成果返還給股東。我們累計已向股東分配了相當可觀的金額，我認為這在中國 ADR 公司中排名非常非常高，累計分配金額達 18 億元人民幣，顯然，我們還將全額派發 2024 年的淨利潤。

So I believe that in 2025, obviously, I can't say this prematurely, but we're pretty confident that we probably will be returning or distributing our profit operational results to our shareholders on a very similar scale this year, at least in the foreseeable future.

所以我相信，到 2025 年，當然，我不能過早下結論，但我們相當有信心，至少在可預見的未來，我們可能會以與今年非常相似的規模向股東返還或分配我們的利潤運營成果。

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

至此，我們的問答環節結束，我想把會議交還給管理階層，請他們作總結發言。

Okay. Zander, anything to add?

好的。Zander，還有什麼要補充的嗎？

(spoken in foreign language)

（用外語說）

Okay. Thank you, Zander. Thank you very much, everybody, and hope to hear from you in the subsequent calls. Thanks.

好的。謝謝你，贊德。非常感謝各位，希望在接下來的電話會議中能再次聽到你們的聲音。謝謝。

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

謝謝大家。如果您有任何其他疑問，請隨時聯繫投資者關係團隊，我們將在幾週內進行[NDR]。如果您想和我們任何人交談，請隨時與我們聯繫。非常感謝您今天抽出時間。

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

會議已經結束。感謝各位參加今天的報告會，現在可以掛斷電話了。

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.

本記錄中標有（已翻譯）的部分是由現場通話中的翻譯人員翻譯的。本次活動的翻譯人員由活動贊助公司提供。