Noah Holdings Ltd (NOAH) 2025 Q3 法說會逐字稿

Good morning, afternoon, and evening, and welcome to the Noah Holdings Limited third quarter 2025 earnings conference call. (Operator Instructions). Please note this event is being recorded.

I would now like to turn the conference over to Doreen Chiu, company's Investor Relations. Please go ahead.

Thank you, Dave, and good morning, afternoon and evening to everyone, and welcome to Noah third quarter of 2025 earnings conference call. Joining me today, Ms.

Hung Dingbo, our Co-Founder and Chair Lady, Mr. Zander Yin, Co-Founder, Director, and CEO, and Mr. Grant Pan, the CFO. Mr. Ying 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 session that follows. Please note that the discussion today will contain forward-looking statements that are subject to resistant uncertainty. 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. With that, I would like to pass the call over to Mr. Yin, [Mr. Disco].

(interpreted) Good morning to everyone and thank you for joining us today. During the quarter we are seeing three very clear trends emerge. First, despite ongoing revenue pressure, our profitability and margins improved significantly with non-GAAP net income increasing by over 50% year on year. Second, investment products have seen accelerated growth and are accounting for a larger share of new revenue.

And lastly, key initiatives including the establishment of four overseas booking centers and the rollout of AI related projects have transitioned from planning to actual implementation. These three trends give us greater confidence that our transformation strategy is making solid progress.

Financially, net revenues for the third quarter reached RMB633 million, down slightly year on year, but up sequentially, marking the second consecutive quarter of sequential growth. The year-on-year revenue decline was mainly due to continued softness in both domestic and overseas insurance businesses in line with our expectations that 2025 to 2026 would be a period of revenue mix adjustment.

Notably, our revenue mix continues to improve significantly, driven by growing investment products revenues which accounted for approximately. 28% during the quarter compared to 18% a year ago, a clear improvement compared to the same period last year and something we will continue to focus on going forward.

As a result, our bottom line delivered a solid performance with non-GAAP net income for the third quarter, up more than 50% year on year to RMB229 million. This brings non-GAAP net income for the first three quarters of 2025 to RMB587 million, a clear reflection of the results our prudent investment strategy and cost controls are delivering.

Performance of our overseas and domestic operations are each following distinct trends. For overseas operations, it has maintained a pattern of strong investment product growth and soft insurance product distribution. Net revenues from Mark, our overseas wealth management business, were RMB146 million in the third quarter, a year on year decrease of 22.7% due primarily to a decline in revenue contribution from the distribution of insurance products.

Sequentially, however, revenues were up 13%. By the end of the third quarter. Overseas AUA reached USD9.3 billion up 6.8% year on year. Notably, transaction value of US dollar private secondary products in the first three quarters increased nearly 2.5 times year on year to USD688 million. Net revenues from Olive, RMB11 in the third quarter, up 8.6% sequentially driven primarily by growth in AM and recurring service fees. By the end of quarter, overseas AUM USD5.9 billion up 5.3% year on year.

Net revenues from Glory Family Heritage, which provides overseas insurance and comprehensive services RMB47 million in the third quarter, 19.8% year on year.

While investments services will remain a co-focus, we shall continue to serve clients with insurances product through our capital light commission (inaudible) model. On the domestic side we are seeing strong momentum in the secondary market a continued focus asset in the primary market and ensuring the segmenting an adjustment phase.

For Noah upright, our domestic public securities business continued to benefit from a rebound in the share market. Transaction value for RMB denominated private secondary products in the first three quarters grew 206% year on year to RMB8.97 billion.

Net revenues from domestic public securities for the third quarter were RMB116 million up 8.7% year on year and underscoring the strategic direction we are headed in with growing AUA and expanding investment capabilities. Net revenues from domestic asset management RMB189 million in the third quarter, up 4.9% year on year as it maintains stable profitability and continues to facilitate exits from existing assets.

Net revenues from domestic insurance business Glory were RMB5 million in the third quarter, down 44.8% year on year. The pace of the fall in net revenues was in line with our planned pace of consolidation and transformation to domestic insurance business. Overall, the rebalancing of our overseas and domestic operations is making solid progress with investment product growth increasingly acting as a new growth driver.

In the third quarter, we continue to make solid progress in our overseas expansion with the establishment of four booking centers which form the foundation of our global operational system. In the United States, we officially obtained a US broker dealer license and will continue to steadily build our business there in accordance with local regulatory requirements.

In Singapore, we continue to strengthen our capabilities and build out our team. While in Hong Kong and Shanghai, we continue to serve as a core hub for operations, compliance, and support systems. Our global operations framework is gradually improving, providing an important foundation for future cross-regional client services and asset allocation.

AI is a disruptive force in wealth management industry with immense future potential and serves as our second strategic growth driver for the future. Over the past few months, we have begun implementing our AIRM plus AI operation system plan.

Initial pilots were launched during the quarter to improve client outreach, content generation, and back-end operations, as well as cross-departmental collaboration in Singapore specifically. In the latest update to our app, we officially launched our AIRM Noah, providing clients with deeper engagement and interaction.

I want to emphasize however, AI is not simply a PPT concept for us.It is an institutionalized operational capability. We will to develop AI capabilities across the entire value chain in a steady and pragmatic manner.

Looking ahead, we remain firmly committed to advancing our three core strategies. First, strengthening our core capabilities in investment product selection, fundraising, and co-investment to increase the proportion of investment products in our revenue mix, drive product innovation, and create a differentiated competitive advantage.

Second, establishing AI as our second strategic growth driver by strengthening the development and deployment of AI tools across relationship management, operations, and investment research to firmly embed it into our organizational DNA and operational systems. And lastly, leveraging our four overseas booking centers as the foundation for a globally coordinated service that delivers a consistent wealth management experience for global Chinese clients.

At the same time, we will continue to maintain prudent operations and thrive quality growth, striving to improve shareholder returns by improving capital efficiency, optimizing cost structure, and strengthening cash flow. We will continuously enhance our competitiveness and market share in the global Chinese wealth management market.

Thank you. Now I'll hand over to our CFO Grant to provide a detailed overview of the group's financial performance.

Thank you, Xander, for the comprehensive strategy and market overview and warm greetings to everyone joining us today. For those of you that in the United States, happy Thanksgiving and holiday season. I also want to make an introduction of the AIRM Noah. She actually did the English translation, just now if you have noticed. I'm very pleased to share Noah's financial performance for the third quarter of 2025 and resource allocation priorities from a financial perspective.

During this quarter, we deliver solid profitability supported by prudent investment decisions and disciplined cost management. Non-GAAP net income reached RMB229 million Up 52.2% year over year and 21.2% sequentially, with a margin of 36.2%. The first nine months of 2025, non-GAAP net income totaled RMB587 million, a 40.5% increase from the same period last year.

This was achieved despite a 7.4% year over year decline in total net revenues. For the quarter as we continue to optimize our revenue structure by emphasizing on investment products, as mentioned by Xander and consciously reduce dependence on insurance related revenue.

Total revenue for the third quarter was RMB633 million, reflecting a year over year decline primarily driven by lower insurance income amid intensified competition in both domestic and overseas insurance markets. Yet it still recorded modest sequential improvement overall, marking our second consecutive quarter of growth.

Total transaction value remained high at RMB17 billion, maintaining the same elevated level as the previous quarter and rising 19.1% year over year. RMB denominated products increased 28.7% year over year. While US dollar denominated products grew 9.6% year over year.

The strength in investment-led transactions helped offset softness insurance and domestic management fees, which continue to weigh on overall revenue. One-time commission's related investment products grew 85.5% year over year, supported by stronger client sentiment, expanded range of quality global investment solutions offered to our clients.

Overseas net revenues for the third quarter remained robust at RMB311 million, contributing 49.1% of total net revenues. A revenue type, one-time commission or RMB159 million, up 2.2% sequentially. For the first three quarters, the transaction value of RMB private secondary products, which surged 206% to RMB9 billion and US dollar private secondary products, excluding cash management, climbed 244% to USD688 million.

Recurring service fees exceeded expectations, rising 4.7% year over year and 3.6% sequentially to RMB421 million. The increase was supported by higher overseas product management fee contributions and some extensions of domestic PE funds.

When domestic exit activities were slower than expected, we do not view this as a structural issue. We acknowledge and recurring income may face some pressure in the near term. We're proactively managing our portfolio and strengthening overseas product fee contributions to mitigate the impact.

Performance based income remained stable from last quarter, stood at RMB22 million. Our overall operating expenses declined 1.6% sequentially to RMB461 million. For the first three quarters, it has dropped 6.5% year over year, reflecting improved efficiency across the organization.

This discipline enabled us to expand our operating margin to 27.6% for the first nine months from 25.5% a year ago, with operating profit reaching [RMB519] million up 4.6% year over year.

In the third quarter alone, operating profit was RMB172 million with a 27.2% margin. No- GAAP net income rose RMB rose to RMB229 million up 52.2% year over year and 21.2% sequentially, reflecting continuing operational strength and solid investment performance.

The asset, we may encounter a moderation in the fourth quarter as market conditions evolve. As of September 30, 2025, total assets under management, AUM stood at RMB143.5 billion. USD denominated AUM grew 5.1, 5.3% year over year and 2.6% sequentially to USD5.9 billion. While USD denominated assets under advisory, the AUA increased 6.8% year over year and 2.0% sequentially to USD9.3 billion.

This ongoing expansion in overseas assets highlights Noahs success in capturing offshore investment demand and strengthening our international footprint. Our overseas client base continues to grow, with registered clients up 13.1% year over year and active clients reaching 3,561 by the end of the third quarter.

The number of newly acquired golden clients defined as professional investors has reached to over 1,000 by the end of the third quarter, reflecting our ability to attract and retain high-quality clientele. Our balance sheet remains strong and debt free. As of September 30, 2025, cash and short-term investment totaled RMB5.0 billion, even after a dividend payout of RMB550 million.

With zero interest-bearing liabilities will remain significant liquidity and flexibility to support global growth and technology investments. In closing, even under software revenue conditions, our disciplined operating model and prudent investment approach delivered solid profitability and margin expansion.

With a strong balance sheet, growing global presence, and ongoing digital transformation and AI application, we remain confident in Noah's ability to deliver sustainable growth and create long-term value for all stakeholders.

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

(Operator Instructions)

Helen Li, UBS.

Yeah, can you hear me?

Yes, please go ahead.

He, we lost you. Yours?

Peter Zhao, JPMorgan.

(spoken in foreign language) Let me translate my question. Congratulation on the very strong result and, thanks for giving me the opportunity to ask questions. I have two questions. First is, [Magma] gave very clear guidance on Noah three, strategy, AI, Increasing the investment product proportion and on the four booking center and I have two follow-up questions.

First is, can we understand what will be the, potential financial impact from these strategies. For example, with the adoption of AI will we see any cost saving on the operating or will we see any improving in revenue and regarding the booking center, particularly on the US booking center, will we see very strong upfront investment into the 2026 where we fully launched this business.

And the second follow-up question is we also wish to understand from the investor, perspective, is there any matrix we can track on Noah's progress, in his strategy in the, say, coming, one or two years.

And then my second question is, on the overseas relationship manager and the domestic cur city. I observed that overseas relationship manager has drop in third quarter while the domestic coverage city has increasing in third quarter and the third trend is a bit different from the trend we have been observing in the, I think past two years.

We wish to understand what's the rationale behind, is there any major change in our company strategy or this is just due to some, market or say I'm head of fine tuning. I will stop here, Thank you.

Thank you, Peter, and thanks for actually asking a pretty comprehensive question. So I'll try to take the first question and our [vendor] will supplement on the second one.

So for the first question, especially on the three, significant measurements, especially for the strategy of optimizing revenue structure, I think a couple of things that investors could track or pay attention to is one is the weight of revenue that's coming from investment-related products.

We do believe that, both revenue and top-line will continue to grow, but at the same time, the structure, that comes from investment-related products, given the actual expansion on product shelf and how the recovery of sentiment relating to investing from our clients, we believe that that's one of the things obviously we could attract.

Secondly, obviously, we want to see a meaningful accumulation on investment related AUM, and AUA as well.

Secondly, to your question, I believe our chair Lady Noah could also add on is the AI investment. It's not a small optimization or extracurricular activity in terms of AI investments. We're actually looking to innovate, the business model on top of the traditional, offline or physical RM team, if you will, by actually adding two teams. One is, the AIRM that will continue to activate.

The existing client group to activate sort of the non-active clients or new clients, we believe that AI actually provide a more structured method and a more, tailor-made capability to activate the new client leads and secondly, we're actually trying to see if we could, as no actually do have a pre-established infrastructure in terms of systematic Infrastructure as well as the, capability offering various products we want to see if we could use with the help of AI, to consolidate or, aggregate some of the EAM services that seems to be pretty mature in overseas market.

So basically, in short, we're trying to see if the AI capabilities they'll continue to invest in. We increase the capability on several fronts. One is obviously client acquisition, new client acquisition, and two is to upgrade the business model in the future. So we have been doing that, especially the design organization structure this year and we'll have a strategic investment AI starting from 2026.

To your question on the booking center, yes, we will have a little bit of infrastructure construction, obviously, in the US booking center, but we already have presence in the US market for the past few years, so, many of the teams are actually already out there.

Obviously we'll be adding, some of the mid back office capability, for the broker dealer business, but, from the budget standpoint, it's actually not going to be a very significant addition in terms of operating expenses, but basically, the necessary infrastructure for the year of 2026. Okay, so Peter, that's the first question.

(spoken in foreign language) (interpreted) Let me do a quick, translation first. So CEO just mentioned for the three strategies it's actually very correlated because, the key thing we're trying to do is, to drive the company as the a driven company. So during this, structural changes and, we've been trying to more -- because in the past few years, the clients are more conservative, in terms of investment, but the recent year we've seen that it has been changed and has been more active in the investment now.

So that's why we believe that AUM driven structure in terms of our revenue is, the, is the key engine for the company growth, in the near future. And when we're talking about AUM driven revenue. Growth that is why we needed to think about the AI development and also the different booking centers that we've been having in globally because for AI, investment that it can help to enhance our business efficiency and also it provides better experience to our clients and which we believe that it can further, reinforce our momentum.

In terms of, giving clients a better service and, our sales, performance and also for booking center basically it's, the same idea we've been trying our clients for plan as well because we've seen more global demand, in terms of the investment needs and that's why we needed to build up the platform and provided this.

The infrastructures to our clients. So-- and also, yes, it may have a little impact on our unavoidably, but that, we believe that with a strong balance sheet we've been able to keep a very prudent, investment team but at the same time being able to support our development.

(spoken in foreign language) (interpreted) To your second question, Peter, you emphasize that we didn't change any of our, focus on developing our overseas market. When you have seen that they dropped the number of our overseas RM. I would also say that it's more like an active adjustment internally.

In terms of, other reasons. It's because, to have the right RM is actually require a lot of investment and time and, I mean -- we will need to have the right [Amid] and that's also the reason why we've been started to invest in our AI development and try to introduced the AIRM concept.

Now let's know that you've just met, it's actually our one of the AIRM that we are having. And because when we look at the efficiency, they can actually cover the number of clients will be a lot more and that is what CEO mentioned, the capacity that AIRM could have compared to any human beings. And also, you may have seen the number of cities in domestic market recover seems have increased.

But again, that's not exactly the same same types of office that we've been having, in some of the major cities. Those we increases are mainly just at the end plus, we call it more like a clubhouse. It's more for client relationship and it's for our, elite clients, better experience with us. So we wanted to emphasize that our focus on developing overseas market remains the same.

Can you hear me?

(spoken in foreign language) (interpreted) But, let me do a very quick translation. So what our [Kelly] has been mentioned, we've been started to, invest in different types of AI or investment related fund since, 2016, and we've been staying so close to a lot of top tier, high tech company.

And why we bring this up is because we've been trying to demonstrate where do all this knowledge about AI and technology we've been adopting. And, for example, investor or analyst could been seen that we've been launching all these types of, infrastructure funds in our all of -- all, and our old brand as well.

So, we've been trying to demonstrate that we have a very deep knowledge about AI and that we believe that that's going to have a very structural changes to the wealth management industry. In the past, it's more like RM and driven, a human-driven, model, but we believe that going forward it's more like an operational driven model.

What is the operational driven model we believe that this, depends on, I mean, it's a, depends on development of AI which is, for example, we can have an AI wealth management team. It could have, people. To do the data analysis and some people may hold license but at the end of the day it's about AI.

They've been able to help and enhance human beings' knowledge about different investment products and their client needs and so that they can come up and they can cover a lot more clients per person, unlike in the past and that's what we call this operational driven.

And also when we are developing the overseas market, what we've seen is it's hard to rely on human being at the sense that because the cost could be high and also, the loyalty or the possibility may not be as high or not be that high.

And that's why the company believes that that, using operational driven wealth management system is a more, efficient way of running this business. And that's not only happening in Noah, we believe that that it's going to be a very -- it's going to be a new development in the entire industry in the coming three year to five years' time.

But that we've been trying to take advantage, or we've been trying to take step ahead of the industry so that the company can be ahead of the industry to opt, adopt this operational driven model and, to supplement this also we've been introducing the EAM or what we call IS system in the USA and also we We've been hiring this, commission-based agency during our insurance, products.

That said, overall, we are talking about -- from the company's point of view, it's about building the global platform, the infrastructure for all these, operational-driven, models being able to deliver good results for the company.

(spoken in foreign language) (inaudible) Thanks. So that's the conclusion, we believe that that with AI, so currently what we are having is that in all of our RM they have their own AI assistant, and we believe that can enhance the capacity to like become one people become three RM.

And more importantly is about the new business unit of business line that we've been setting up. So, another one would be AI wealth management that, we mentioned previously, which is, within the AI wealth management team.

They've been able to give better experience to the new clients and also they've been able to help to stick into our client base and try to reconnect with, those clients may not be. Active in the past few years and another business that we've been trying to, or we have been developing is also this AI ecosystem team which is that they've been focusing to serve the EAM business that we've been mentioned and also this, commission-based agency that will be supplement the company's development.

(Operator Instructions)

[Calvin] Wang, Citi.

Thanks for taking this and congrats on the solid premier in third quarter. This is Calvin from Citi, and I have a question on investment product sales which sustain a robust growth in the quarter. What measures has Noah taken specifically and looking into the fourth quarter?

What is our strategy in investment product sales across domestic and overseas markets? Are there any products that would be our key focus, this year? Thanks.

(spoken in foreign language) (interpreted) So, it's, you may be aware that in this company we have this CIO report which has been issued every half year and during the recent, published, we talked about that the three types of products that we believe that that should be paid more attention to.

So for the first time is a some, fund or investment that has been able to fight inflation, which, would be more traditional types of funds, including those property funds or maybe, gold or material related types of funds.

And secondly, would be, more technology-related, which is using technology to fight, inflation. For example, these, AI that was been mentioned, not only for the companies that adopting of the using, but also related type of investment as well.

And the first one would be some, newly developed that, business is more like the crypto, that we've been paying, or we've been advising our clients to pay more attention to. And I mean, as the chair Lady mentioned, luckily we've been connecting with the US product market since 2016 and we have developed a team there to sourcing different types of funds or investment products for our clients and that's why we've been able to, been enhancing our product share in the past few years.

And that's why starting from the last few years you may been able to see reflecting on our financial performance, instead of just PE fund being able to sell to clients, we have seen a very substantial improvement in selling hedge funds.

That is the secondary market -- secondary, market types of funds have been able to sell to our investors or to our clients. So, and also really about the re RMB market, we may have to say that -- yes, because of the, performance of our Asia's market, we have seen.

A lot of interest in our clients for the RMB related products. However, the companies do, keep a very rather prudent, and conservative, belief towards the RMB, type of product. We still believe that, our strength or our focus is more on, overseas, investment products more particularly, these technology-related type, AI related type products.

(spoken in foreign language)

(spoken in foreign language) (interpreted)

Oh thank you Chair Lady. So, what she mentioned, promoting to CEO's answer is, we probably shouldn't just look at, particular type of products when we've been, doing answering this question. It's more about the company's position. It's also about our own, DNA which is we've been able to serve all the global Chinese. We understand them and we know how to give them better services.

And also it's about the infrastructure that we have the Booking centers globally and also the different business units, for example, [arc] in Hong Kong, in Singapore, they've been able to provide services for opening accounts, buying equities, buying bond-related products, and also we have [OLE], our asset management, that's been strong traditionally in PE funds and we're now introducing hedge funds.

And also, our brand Glory, we've been able to provide trust services or even insurance, advice and family planning. So it's about the infrastructure that we've been having and means that we've been always able to meet our clients' needs.

So, for, example, that's why -- what we've been keep on saying we want it to be an AUM driven, revenue model. That's also why we've been starting to build up the commission-based insurance agency team because, we've been trying to lower the running cost but at the same time.

To provide comprehensive services to meet our clients' needs and, I guess, that's our advantage of the company. So it's not about picking what products to be sold to the clients, but we've been able to provide whatever our client needs and meet the demand.

(spoken in foreign language) (interpreted)

So, [Charlidyor] explained that the strategy. So since, or starting this year, I mean, for we wanted to focus on, the Chinese high network. So it's not no longer completing by providing what type of products, but about we've been able to provide the services.

So she emphasized again about the RM team that we've been building. The provoking center we've been able to have, globally so that we've been able to provide services across different time zone and across different geographical, restrictions.

And also When we've been serving this height network, one thing is different. They no longer just related to one geographical places. They've been speaking different languages and when we, been entering different markets, we also face the difficulties of regulatory requirement.

And that is, one of the lowest competitive edge because if any, wealth management company with a smaller scale that may be a very difficult thing to override. And that's why we've been in the right side to be able to set up our global infrastructure platform. Be able to cooperate with local EAM IAF team so that we've been able to provide global services to any potential high net worth, clients that we've been able to reach.

(spoken in foreign language) (interpreted)

I guess, the Chair Lady wanted to further share her confidence and happiness.

(spoken in foreign language) (interpreted)

No dialogue. I guess, she's very excited and everyone can sense that, we've been able to find the right strategy going forward to develop, this company. So again, she emphasizes about the global platform. It's about the, different business unit that we have already developed and in fact in the previous. Years and it's also about the new development like ecosystem and AIRM.

Together we've been able to serve globally and meet all the clients, all the particularly Chinese high network needs, in this global market. So that, she's a very confident and has a very, high hope about this development strategy for the company.

[Jinhongyan with CICC].

(spoken in foreign language) (interpreted) Thanks for taking my question. My first question is about the investment income. Income from equity in affiliates. I see that both these items have significant meaningful contribution to the growth of net profits. I would like to -- could you please share the reasons behind the trend in the fourth quarter

And the second question Is about the active clients. I see that the active clients increase both double-digits Y-Y and q-q. Could you please share, what you have observed, from the client's behavior, the impact on the financial statements, and the trend in the fourth quarter. Thanks.

(spoken in foreign language) (interpreted) So about the investment, gain that we've been having, so one of the major reason is, due to the previous investment. The companies are having, particularly being the GP for some of these PE funds, and we've been seeing some exit, in the recent years during the good market and also, the, we can have a valuation gain for some of the investment as well.

And in terms of active plans, we've been able to have a better result is because we've been now more focusing on investment products and which for investment products like insurance, clients may have repeat buying with us, that we've been able to enhance or help or maintain a rather stronger relationship with them. And that, CEO emphasis why, that's the reason why we would like to, be more focused as an AUM driven company.

(spoken in foreign language) (interpreted) So that, so Chairman Lady for, explained that that that is because, one of these -- I mean the investment game that we've been able to have, is because, the right decision that we have made in the past. So, being, invested in different types of all these PE funds or also even listed in the USA, we may have some, hurdles in the previous year.

But that we've been seeing good results. For example, this investment, income, that is one of the example showing that the company's been able to make right decisions in the previous years. And that's also the reason explain why -- I mean, when we have good resal investment that is an attraction point to our clients that's that made them more willing to invest with us.

(spoken in foreign language)

Thank you.

Helen Li, UBS.

(spoken in foreign language) (interpreted) What I find is about, I have a follow-up question regarding AI application. How will AI support client acquisition in the overseas market, given the recent decline in overseas relationship managers, does this, suggest a strategic shift towards serving existing clients overseas investment needs rather than focusing on, expanding, local client acquisition?

And is the reduction in headcom primarily affecting mid to back-office RM, or does it also affect client facing from Office RM? Do you still plan to expand the client facing front office RM team? Previously, the target was to, grow the overseas RM team to 300 in a medium term. With the adoption of AI. Has there been any change to this, medium-term target?

Thank you.

(spoken in foreign language) (interpreted)

So you get the [cens] come in your China will, so answer your question, the Chairman, the challenge is, just joking about that we want to, we don't want to share the secret of how we've been able to get clients, but, that's more like a joke because, I mean, ultimately it's about how many clients that.

We have already been served. We have already served more than 400,000 clients, over the last 22 years. And also with all these different types of, PE funds that we have invested, we have met a lot of our potential high net worth of going to be high net worth or have become high net worth individuals by their business development.

So that, the companies are very confident that we have already have the, database. But that in the past, one of the difficulty is that if we have the capability -- or if we are capable to serve these types of clients in a good way.

But that was the AI's assistance, we believe that believe that we've been able to deliver better services and better solutions to all our clients. Now that's why with this kind blaze that we already have, we've been able to give the right service to them with the assistance of AI.

So she also provided one example. We have this client in Singapore. We met him and he became a client. He invested with us only took five days, and that's impossible in the past. It may, take more than two months in the past, but now with the assistance of AI that is providing solutions, explanation, and different types of, understanding, and that's the reason why it has enhanced the company's efficiency in getting a potential client.

(spoken in foreign language) (interpreted)So, the CEO just -- I may further explained that how AI is affecting the company. We believe that everyone's talking about AI. Every company wanted to use AI, but it's about if they have the basic to be able to really adopt AI.

That is -- because, using AI and using AI efficiently is the two different, topics that we've been talking about. And why NA been able to have in this competition is because we have adopted digitalization. I mean, in the earlier stage, we have developed, the right system.

We internally have all this data analysis, our system build up even the OA structure and all that. And because of that, we've been able to adopt AI in a faster pace compared to some of our peers. And also when Helen is asking how AI has been able to help the company, CEO's answer was, yes, we have already seen some benefits being arise using AI but that AI's adoption could be all of our imagination.

So the benefit that we've been experiencing, could be a lot more in the future.

This concludes our question-and-answer session. I would like to turn the conference back over to Doreen Chiu for any closing remarks.

Yes, thank you, Dave. And thank you very much for joining us today. And if anyone has any further questions, please contact I our team as usual.

Thank you very much.

The conference is now concluded.

Thank you for attending today's presentation. You may now disconnect.

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