NOAH

Please note, this event is being recorded. I would now like to turn the conference over to Doreen Chiu, investor relations. Please go ahead.

Thank you and welcome and good morning everyone to Noah's first quarter of 2026 earnings conference call. Joining me on the call today are Miss Wang Jingbo, the Co-founder and Chairlady. Mr. Zhe Yin, the Co-founder, Director and CEO, and also Mr. Qing Pan, the CFO. Mr. Yin will begin with an overview of our recent business highlights, followed by Mr. Pan, who will discuss our financial and operational results. They will all be available to take your questions in the Q&A section that follows. Please note that the discussion today will contain forward-looking statements that are subject to risks and uncertainties that may cause actual results that vary materially from those in our forward-looking statements. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC and the Hong Kong Stock Exchange.

Noah does not undertake any obligation to update any forward-looking statements except as required under applicable law. I would like to pass the call over to Mr. Yin. Please go ahead.

好，各位投资者、分析师、朋友们，大家早上好。感谢大家参加诺亚控股2026年第一季度的业绩发布会。进入2026年，诺亚的转型节奏比过去更加清晰。第一季度我们观察到三个正在形成的清晰的趋势。第一个，盈利结构持续地改善，我们经营利润率达到近年以来三季度的高点。第二，境内业务正在回归投资与配置本源，活跃客户与配置规模实现双位数的增长。第三，海外业务按照我们主动调整收入结构的战略继续推进，全球化与AI驱动的新经营模式正在逐渐地形成。在进入更详细的回顾之前，我想分享两个我们在本季度后段达成的全球化里程碑。日本办公室已于5月4号正式启动运营。同时我们美国broker-dealer牌照已完成最终的核准流程，核心的关系团队也将于6月份正式加入。这两件事意味着诺亚围绕全球华人客户的服务网络正在进入从牌照铺设到落地经营的新的一阶段。接下来我从财务、境内、海外以及AI战略四个方面与大家分享。

Investors and analysts, thank you for joining Noah Holdings first quarter 2026 earnings conference call. As we start 2026, the pace of Noah's transformation has become clearer than ever before. In the first quarter, we observed three increasingly visible trends. First, our profitability structure continues to improve, with operating margin reaching one of the highest quarterly levels in recent years. Second, our domestic business is regaining momentum in core investment and asset allocation, with both active clients and transaction value achieving double-digit growth. Third, our overseas business continues to advance in line with our strategy of proactively adjusting our revenue mix, while a new operating model driven by globalization and AI gradually takes shape. Before going into a more detailed review, I would like to share two milestones in our global footprint that we recently achieved.

Our Japan office officially commenced operations on May 4th, and our U.S. broker-dealer license has completed the final approval process with key team members set to officially join in June. These two developments mean that our network is entering a new phase, moving from license deployment to operational execution. Next, I would like to share our progress from four perspectives: financial performance, domestic business, overseas business, and AI strategy.

第一季度我们实现净收入人民币6.26亿元，同比增长1.8%，环比下降14.7%。环比下降主要来自于保险业务贡献进一步减少，以及海外私募股权产品业绩报酬收入从年末集中确认后的阶段性的正常的回落。而在利润端，得益于我们在成本纪律、组织精简与费用控制上的坚定执行，经营利润达到人民币2.36亿元，同比增长27.1%。经营利润率37.8%，是近年来三季度经营利润率最高的水平之一。Non-GAAP经营利润为人民币1.34亿元。需要说明的是，本季度的高利润率受益于业务结构优化与组织效率的进一步的释放。我们预计全年经营利润率将维持在30%以上的健康区间。季度之间因产品结构与费用节奏自然会有波动。本季度也标志着诺亚自上市以来连续第62个季度实现Non-GAAP盈利，这是诺亚在多个市场周期中始终保持的纪律。

Quarter, we recorded net revenues of RMB 626 million, up 1.8% year-over-year, down 14.7% quarter-over-quarter. The sequential decline was mainly due to a further decrease in contribution from the insurance business, as well as a seasonal decrease in performance fee income from overseas private equity products following concentrated year-end recognitions. On the profit side, benefiting from our disciplined execution in cost control, organizational streamlining, and expense management, operating profit reached RMB 236 million, up 27.1% year-over-year. Operating margin was 37.8%, marking one of the highest quarterly levels in recent years.

Non-GAAP net income was RMB 134 million. It is important to note that this quarter's strong margin performance benefited from continued optimization in our business mix and further release of additional organizational efficiency. We expect full year operating margin to remain in a healthy range above 30%, although quarter-to-quarter fluctuations are natural due to product mix and expense timing. This quarter also marked our 62nd consecutive quarter of Non-GAAP profitability since listing. This is the discipline we have maintained across multiple market cycles.

集团第一季度活跃客户达到10742人，同比增长21.8%。募集量达到人民币233亿元，高于上年同期的161亿元。境内方面，人民币公募产品交易规模99亿，同比增长131%，人民币私募二级产品募集规模53亿元，同比增长61%。诺亚正行净收入达人民币2.1亿元，同比增长63%，主要由A股市场结构性机会带来的公募基金规模翻倍，以及人民币私募二级募集的快速回暖共同驱动。这一系列变化表明，当我们把资源重新集中到真正具备长期配置价值的产品与投资能力上时，境内业务的经营质量正在发生结构性的改善。同时，我们也更加明确了境内业务未来的战略方向。在境内，我们将继续聚焦二级市场与资产配置能力的建设，重点围绕公募基金、私募二级市场、AI驱动的客户经营、诺亚正行基金销售平台能力，持续推进我们经营的升级。我们相信境内财富管理行业正在逐步从过去以地产与非标驱动阶段回归真正以投资研究与资产配置为核心的长期时代。

quarter, our active clients reached 10,742, up 21.8% year-over-year. Transaction value reached CNY 23.3 billion, compared with CNY 16.1 billion in the same period last year. In our domestic business, transaction value of RMB-denominated mutual fund products reached CNY 9.9 billion, up 131% year-over-year, while transaction value from RMB-denominated private secondary products reached CNY 5.3 billion, up 61% year-over-year. Noah Upright recorded net revenues of CNY 208 million, up 63% year-over-year, mainly driven by a doubling in public fund transaction volume as a result of structural opportunities in the A-share market, together with a rapid recovery in RMB-denominated private secondary fundraising. This series of changes shows that when we refocus our resources on products and investment capabilities with genuine long-term value, the operating performance of our domestic business improves structurally. At the same time, we have become even clearer about the strategic direction of our domestic business going forward.

For our domestic business, we will continue to focus on the secondary market and building our asset allocation capabilities, with key priorities including public mutual funds, private secondary market products, AI-driven client operations, and Noah Upright's fund distribution platform capabilities. We will continue to drive the enhancement of our operations in these areas. We believe the domestic wealth management industry is gradually moving away from the past stage, which was driven by real estate and non-standardized products, and returning to a true long-term era centered on investment, research, and asset allocation.

截止3月31日，海外注册客户达20,373人，同比增长11.9%。海外AUA为96亿美元，同比增长约5.9%。本季度美元产品募集规模11.5亿美元，与去年同期基本持平。海外客户与资产的基础仍在稳步地积累。收入结构调整的节奏与我们在去年第三季度业绩发布会上面披露的判断是一致的。过去几年，诺亚持续围绕全球华人核心区域进行布局，包括香港、新加坡、日本、加拿大、欧洲、澳洲以及美国市场。我们越来越清晰地看到，全球华人客户正在进入一个新的阶段，他们的资产、家庭、身份、教育与下一代的规划正在越来越全球化。而过去跨多个司法辖区、跨语言、跨代际服务的全球华人的家族，是一种高度依赖个人经验，很难规模化复制的业务。AI第一次让这种全球协同服务具备了被系统化、平台化、规模化的可能。这也是为什么我们认为诺亚未来最重要的长期定位之一不仅是一家财富管理的机构，更是一家服务全球华人高净值家庭的全球化的财富管理品牌。

As of March 31st, overseas registered clients reached 20,373, up 11.9% year-over-year. Overseas AUA was $9.6 billion, up approximately 5.9% year-over-year. Transaction value of US dollar-denominated products was $1.15 billion for the quarter, broadly flat year-over-year. Our overseas client base and AUA continue to grow steadily, and the pace of our revenue mix adjustment is consistent with the view we shared during our third quarter earnings call last year. Over the past few years, we have continued to build our presence across key regions serving global Chinese clients, including Hong Kong, Singapore, Japan, Canada, Europe, Australia, and the U.S. What we are seeing more clearly is that global Chinese clients are entering a new stage. Their assets, families, identities, education, and next generation planning are becoming increasingly globalized.

In the past, serving global Chinese families across multiple jurisdictions, languages, and generations was a business that relied heavily on individual experience and was extremely difficult to scale or replicate. For the first time, AI makes it possible for this kind of service to be globally coordinated in a systematized, platformized, and scalable framework. This is why we believe one of our most important long-term positions is not only to be a wealth management institution, but also becoming a global wealth management platform serving Chinese high-net-worth families around the world.

财富管理行业过去20年的增长的逻辑是清晰但线性的。多一个理财师，多一份创收，多一组客户的关系，多一份的资产的规模。这个逻辑在过去行之有效，但也意味着行业扩张速度长期受限于人力成本与组织管理的半径。我们的判断是AI正在从根本上改变这个等式。它不是在增加一个效率的工具，而是在重新定义财富管理行业的前台的结构。过去财富管理行业主要依赖单一的RM的驱动，而今天我们正在逐步形成三个前台协同驱动的新模式。第一是被AI赋能的RM。RM仍然是客户关系中最重要的长期陪伴者，但AI正在显著提升RM的客户覆盖能力、内容能力、配置能力与跨区域服务的能力。RM未来将更多聚焦于深度客户的经营，而不是重复性的流程工作。第二，AI财富管理部。这是我们正在重点建设的新型的前台的团队。AI家的财富管理部并不依赖传统高人数的扩张，而是通过AI驱动客户运营、内容服务、配置支持与全球协同，以更轻的组织结构服务更广泛的客户的需求。新加坡是这一模式的首个完整试验场。过去一个季度，新加坡地区AUA同比增长约192%，人均创收倍数达到8.5倍。这意味着我们首次验证，在不显著扩张RM人数的前提下，AI可以将单人的服务的能力、覆盖的广度与配置专业度提升一个量级。第三是AI家的生态拓展部。我们认为未来财富管理行业不会只属于大型机构内部的RM体系。越来越多的独立财富顾问、家族办公室、外部专业机构需要的是一个能够提供全球资产供应链、AI的工作台、合规的底座、全球执行的能力和品牌的信任的平台。诺亚正在逐步形成这样的生态。我们认为在三个前台，未来将共同构成诺亚新的增长引擎，而财富管理行业未来的竞争也将不再只是谁拥有更多的理财师，而是谁拥有更强的AI的能力，更完整的全球合规网络，更深的客户上下文的数据，以及更可复制的平台化的服务能力。这是诺亚在2025到2026年最重要的战略判断。

Over the past two decades, the logic to drive growth in the wealth management industry was clear but linear. One more relationship manager meant more revenue. One more client relationship meant more assets. This logic worked well in the past, but it also meant that the industry's expansion was structurally constrained by labor costs and overall management of the organization. Our view is that AI is fundamentally changing this equation. It is not simply adding another efficiency tool. It is redefining the front office structure of the wealth management industry. In the past, wealth management was primarily driven by a single RM model. Today, we are gradually forming a new model driven by the collaboration of three front office engines. First, AI enhanced relationship managers. RMs remain the most important long-term driver of strong client relationships. AI is significantly enhancing their ability to cover clients.

In the future, RMs will focus more on deep client engagement rather than repetitive process work. Second, AI wealth management department. This is a new type of front office team that we are actively building. The AI wealth management department does not rely on traditional headcount expansion. Instead, it uses AI to drive client operations, content services, allocation support, and global collaboration, enabling a lighter organizational structure to serve broader client needs. Singapore is the first fully developed testing ground for this model. Over the past quarter, AUA in Singapore grew by approximately 192% year-over-year, and revenue generation per capita reached 8.5 times. This is the first validation that without materially expanding the number of relationship managers, AI can elevate individual service capacity, breadth of coverage, and professionalism of asset allocation by an order of magnitude. Third, AI plus ecosystem expansion.

We believe the future of wealth management will not belong only to the internal RM systems of large institutions. More and more independent financial advisors, family offices and external professional firms need a platform that can provide a global asset supply chain, an AI workbench, a compliance foundation, global execution capabilities and brand credibility. We are gradually building this ecosystem. We believe these three engines will together form our growth drivers going forward, and the future competitive landscape of the wealth management industry will no longer be defined simply by who has more RMs, but by who has stronger AI capabilities, who has a more complete global compliance network, who has deeper customer context data, and who has more replicable platform based service capabilities. This is our most important strategic vision for 2025 to 2026.

围绕这个判断，我们已经实质性地推进了三个层次的工作。第一个层次是组织效率的释放。去年我们在净收入基本稳定的前提下，整体员工人数较2024年下降约11%。今年第一季度，员工人数环比进一步减少约3%。这背后是AI在客户互动、内容生成、运营流程等关键环节的逐步的嵌入，让相同收入的规模可以由更精简的组织来承载。这是我们AI投入获得的第一个直接证据。第二个层次是经营能力的产品化。诺亚AI RM平台已于去年第三季度正式上线，覆盖客户研究、配置建议生成、服务记录、内容输出等核心场景，并在境内外四地booking center同步推进集成。AI不再只是后台工具，而是站在理财师身边的协同的搭档。第三个层次也是最关键的，是经营模式本身的重构。对于诺亚来说，AI不是PPT的概念，它已经开始成为能够真正创造经营结果，并具备全球复制能力的新经营的体系。支持上述AI能力运转的是我们已经建成的全球平台基础。ARK、Olive、Glory的传承三大全球平台，分别承担客户与账户的执行、资产的管理、保险信托与传承的服务，以及上海、香港、新加坡、美国四地booking center构成的合规与执行的底座。未来我们在AI方向的长期建设将继续围绕客户、理财师、产品和治理结构这四个层面持续地推进。

Based on this strategic vision, we have made substantive progress at 3 levels. First level, enhancing organizational efficiency. Last year, while maintaining stable net revenues, our total headcount declined by approximately 11% compared with 2024. In the first quarter of this year, headcount further declined by approximately 3% quarter-over-quarter. Behind this is the gradual embedding of AI into key areas such as client interaction, content generation, and operational processes, enabling the same revenue scale to be supported by a more streamlined organization. This is the first direct evidence of returns on our AI investments. Second level, productization of operating capabilities. Our AI RM platform officially went live in the third quarter of last year. It covers client research, generation of allocation recommendations, service record keeping and content output, and is being integrated in parallel across our four booking centers. AI is no longer just a back office tool.

It is becoming a collaborative partner for our RMs. Third level reconstruction of the operating model itself. AI is not a PowerPoint concept for our organization. It has already become a new operating system that can generate real business results and has the potential to be replicated globally. Supporting these AI capabilities is the Global Platform Foundation we have already built. Our three global platforms ARK, Olive and Glory, support client and account execution, asset management and insurance, trust and inheritance services, and our four booking centers in Shanghai, Hong Kong, Singapore and the United States together form our compliance and execution infrastructure. Going forward, our long-term AI build out will continue to advance across four dimensions, clients, relationship managers, products, and governance.

展望2026年下半年的时间，我们的工作将围绕董事局主席在年度致股东信中明确的三大优先方向来推进。第一，扩大海外客户的基础。第二，推动全球资产配置业务进一步的增长。第三，持续优化Olive资管业务收入的结构。同时，我们将继续深化AI在核心经营流程当中的应用，并在合规框架下逐步扩大全球的协同能力。截止3月31号，公司持有现金、现金等价物及短期投资人民币51.3亿，维持零有息负债的健康的资产负债表的结构。董事局已建议向股东大会提交2025年度按100% Non-GAAP净利润派发股息及特别股息的议案，在6月11号股东大会审议通过后实施。这将延续诺亚连续第三年以100% Non-GAAP净利润为基准的股东回报政策框架。我们将继续在保持财务纪律的前提下，投入全球化与AI能力的建设。我们仍处于转型过程之中，短期的承压点是透明的，但长期经营模型的逻辑正在变得比过去更加地清晰。第一季度不是终点，它更像是诺亚新经营模型开始被验证的一个起点。我们正在从一家传统的财富管理机构逐步演变为一家AI驱动、全球化，服务全球华人家庭的财富管理平台。这个过程不会一蹴而就，但方向正在变得越来越清晰。谢谢大家。接下来我把时间交给CFO潘欣，为大家介绍更详细的财务表现。

remainder of 2026, our work will continue to focus on the three priority areas clearly set out by our chairlady in her 2025 letter to shareholders. First, expanding our overseas client base. Second, further growing our global asset allocation capabilities. Third, continue to optimize the revenue structure of Olive, our asset management business. Lastly, deepen AI applications in our core operating processes and gradually expand global collaboration capabilities within a compliant framework. As of March 31st, we held CNY 5.13 billion in cash equivalents, and short-term investments, maintained a healthy balance sheet with zero interest-bearing debt. The board announced a dividend proposal for approval at our shareholders meeting, including a special dividend that brings the total payout to 100% of full year 2025 non-GAAP net income. Subject to approval at the June 11th meeting, the plan will be implemented.

This would extend our shareholder return framework for a third consecutive year based on 100% of non-GAAP net income. We will continue to invest in globalization and building AI capabilities while maintaining financial discipline. We are still in the midst of our transformation. The short-term pressure points are visible, but the logic of our long-term operating model is becoming clearer than ever before. The first quarter is not the destination. It is more like a starting point where our new operating model is beginning to be validated. We are evolving from a traditional wealth management institution into an AI-driven global platform serving Chinese families around the world. This process will not happen overnight, but our direction is becoming increasingly clear. Thank you. I will now hand the time over to CFO Qing Pan to review our financial performance in greater detail.

Thank you, Xander, and good day to everyone joining us. The first quarter of 2026 marked a solid start to the year and continued progress on transition toward a more investment-led and quality-driven global wealth management platform. I would like to highlight three key messages. First, while total revenue remained stable, the quality of our revenue mix improved meaningfully, driven by strong growth in investment-related fundraising fees and performance-based income. Second, disciplined cost management and structural efficiency initiatives delivered substantial operating leverage. Operating profit increased significantly and operating margin expanded further. Third, reported net income was affected by non-operational volatility. This mainly reflected mark-to-market accounting adjustments on a specific listed investment recorded under income from equity and affiliates. Excluding that specific mark-to-market impact, non-GAAP net income would have reached CNY 216 million, up 28% year-over-year.

For the first quarter, total net revenue was CNY 626 million, up 1.8% year-over-year. This stability was achieved despite a deliberate 49.9% reduction in insurance-related revenue as we continued to optimize our business mix. One-time commissions were CNY 113 million, up 5.9% quarter-over-quarter. Within this, commissions from newly raised investment products increased to CNY 53 million, up 46.1% year-over-year and 41.6% quarter-over-quarter. Recurring management fees were CNY 379 million, down 3.4% year-over-year and 2.5% quarter-over-quarter. Performance-based income reached CNY 100 million, up 253% year-over-year, primarily driven by strong realization from CNY-denominated private secondary products. Overall, the quarter further demonstrates our continued shift toward a higher quality investment-led revenue structure. Our lean operating model continues to deliver measurable financial results, with AI increasingly serving as the structural driver of efficiency.

Total operating costs and expenses declined to CNY 389 million, down 9.2% year-over-year and 18.1% quarter-over-quarter. As of the end of the quarter, group headcount was 1,726, down 10.4%, leading personnel costs to decline 12.2% year-over-year to CNY 267 million. This reflects productivity gains rather than business contraction. Our AI strategy focuses on improving output per capita and operational efficiency. AI-driven tools now support client engagement, automated reporting, suitability processes, and routine workflows that previously required manual intervention. This enables us to scale global operations when maintaining disciplined cost control and service quality. SG&A were CNY 103 million, down 10.8% year-over-year, and 35.1% quarter-over-quarter. Total operating cost expenses were CNY 389 million, down 18.1% compared to last quarter. As a result, operating profit increased to CNY 236 million, up 27.1% year-over-year.

Operating margin therefore expanded to 37.8%, compared with 30.3% in the first quarter of last year. Excluding government subsidies, operating profit was RMB 236 million, up 33.7%. These results highlight the scalability of our platform and financial benefits of our structure optimization. Below the operating line, investment interest and other income totaled RMB 19 million. Interest income remained RMB 32 million. Investment income was negative RMB two million. Foreign exchange loss was RMB 6 million, and contingent expenses was RMB 3 million. Share of losses from equity and affiliates was RMB 65 million. As a result, Non-GAAP net income attributable to Noah was RMB 134 million, with a margin of 21.4%. Total transaction values reached RMB 23.3 billion, up 44.8% year-over-year and 37.5% quarter-over-quarter.

US dollar denominated private secondary products reached US$293 million, up 161% year-over-year, when RMB denominated private secondary products reached RMB 5.3 billion, up 61% year-over-year. This fund raising momentum directly supported the growth in investment related commissions and reinforced our strategy. As of the end of the quarter, Group AUM was RMB 140.2 billion, and AUA was RMB 233.5 billion. Total AUM and AUA at the group level declined, yet our US dollar denominated base continued to grow. Overseas AUM reached US$6.2 billion, up five percent, and overseas AUA reached US$9.6 billion, up almost six percent year-over-year. Total Diamond and Black Card clients reached 9,029. Overseas Diamond and Black Card clients reached 1,781, up 3.8% quarter-over-quarter, reflecting continued traction in overseas markets. Our balance sheet remains strong and highly liquid.

As of the end of the quarter, cash and cash equivalents were CNY 4.3 billion and short-term investments were CNY 834 million. Total assets were CNY 11.6 billion, and total liabilities were CNY 1.7 billion. Our asset liability ratio remained low at 14.5%, and our current ratio was 4.8 times, providing ample flexibility for growth and shareholder returns. We believe our current market valuation does not fully reflect the strength of our balance sheet, the resilience of core earnings, and the scalability of our operating model. With shareholders' equity of about CNY 9.9 billion, the company is trading at roughly 0.5 times book value, when delivering an annualized return on equity of approximately 5.4%. In our view, this does not adequately reflect our intrinsic value and long-term earnings potential.

Since the beginning of 2020, we have repurchased 2 million ADSs for approximately $20 million, representing about 2.7% of outstanding shares. Since launching the program shareholder return in 2024, we have cumulatively repurchased 3 million ADSs for $35 million. We have declared to distribute 100% of our non-GAAP net income as dividends for the third consecutive year. These actions reflect management's confidence in the company's intrinsic value and our commitment to enhancing long-term shareholder returns. In summary, the first quarter reflects disciplined execution of our strategic transition. Revenue quality improved, operating leverage strengthened, and AI-driven productivity gains continued to enhance structural efficiency. While reported earnings were influenced by non-operational volatility, the underlying trajectory of our core business continues to improve.

With a fortress balance sheet, a leaner and more scalable operating platform, and continued capital returns through share repurchases, we believe the company remains fundamentally undervalued relative to its intrinsic strength and long-term earnings potential. We remain fully committed to disciplined execution, prudent capital allocation, and sustainable long-term value creation. Thank you, everyone. We'll now open the floor for questions.

Thank you, Qing Pan. Thank you, Zhe Yin, for the presentation. Operator, please open the floor for questions.

Thank you. We will now begin the question and answer session. To ask a question, please press star then one on your telephone keypad. If you are using a speakerphone, please pick up the handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Your first question today comes from Calvin Lung from Citi. Please go ahead.

I'll quickly translate my question. Thanks for taking this. This is Calvin Lung from Citi. Last Friday, China tightened the regulations on cross-border brokerage businesses. What is management's view on the evolving regulatory landscape on this front, and what is the potential impact to Noah's domestic market business? Considering a few offshore brokers were fined by regulators regarding their unauthorized brokerage businesses, what is management's take on the compliance risk in domestic market going forward? Thank you.

OK，谢谢。我先回答一下。我们也关注到这个新闻，这是一个行业内的新闻，这其实是一个老新闻，很多年之前就有这个方面的规定。而这次只是一个进一步的在合规方向下的执法强化。对诺亚来说，我们一直是坚持合规的经营的。我们所有的客户入境都是来自于海外的银行的一个账户，就是在香港金融监管局监管下的任何机构的账户。我们的开户的流程，KYC的流程都是严谨的，所以说不存在这种非法开户这些情况。那么对于诺亚来说，其实我们券商的业务本身的规模也不是很大，在我们整个收入业务当中的占比也是非常小的，所以说也不会产生很大的影响。刚才您说到国内那些监管的要求，其实也是我们一直关注的一个地方，对诺亚来说，我们在各个司法区都是坚持合规经营的一个方式。所以说目前来说，我们也非常高度关注这个政策可能会产生的影响。但从对诺亚本身商业模式的影响来说，我们其实觉得这个影响是非常小的。

Let me do the translation. The CEO confirmed that the company has paid attention to this news. We have to emphasize that this is not exactly a news happening, but more like a reinforcement of an existing rule that has been introduced to the market a couple of years ago. We would like to emphasize that the company has been always compliant to legal requirement under different jurisdictions, and particularly for the overseas accounts that have been opened, it's all under the compliant requirement. Under say, for example, in Hong Kong, would be all the KYC requirements and all that. Also about the money transfer into this investment account is from legitimate financial institute operator and under HKMA regulation. That all the money transferred in the investment account is from those validated financial institutions.

Having said that, the security business, the revenue contribution to the company is rather small. All in all, we don't see much impact to Noah for our business model. We must once again say that all of our operations under different jurisdictions have been always compliant to the legal requirements.

我补充一下。我觉得首先我们非常重视这条新闻，所以在出来以后，我们也根据SFC出的最新的制度完全地进行了自查。我想诺亚我们在过去的一段时间做了很多基础的工作，我们在香港、新加坡、美国有我们的booking center，我们主要跟互联网券商的不同的是服务high net worth Chinese family around the world，就是全球的华人。我们现在看下来，用最严格的标准，有内地的户口或者内地的身份证开户的客户，在我们这儿占公司收入不到1%这个比例，非常低。而且这些客户100%都是从大银行、海外的银行入境到我们这儿的，我们没有任何一笔是从大陆的银行入境过来的，所以我们认为我们自己还是非常comfortable的，可能对我们来讲是在这次监管政策中是危中有机。

The Chairlady further supplemented on the answers. The company's been paying huge attention to these newly executed rules and situation. We've immediately reviewed our internal procedure according to the SFC requirements.

We are very comfortable to say that we are fully comply with the legal requirement, and that is not only in Hong Kong but across Singapore, U.S.A., all of our booking centers. Slightly different from these securities online platform, what we serve is the global Chinese high-net-worth. As a slightly different from the business model, and having said that, security business is only contributing less than 1% to our total revenue. We further emphasize again, all the money transfer to the investment account are from overseas banks, none, zero of the money transferred into the investment account is from China Bank. She's slightly optimistic that maybe this could be a chance for Noah, because we have been always compliant to regulations.

还有补充一个细节，就是我们的运营和科技团队在booking center完全百分百都是设在境外的，香港在香港，新加坡在新加坡，美国在美国。那目前我们来看的话，我们的香港iARK代现平台也没有在境内配置任何一名员工。

iARK, which is our app for security trading in the company, and all the operational system and also the technical supporting systems are all placed in overseas market and overseas like in Hong Kong. Also for iARK, we have zero employees that basically refers to iARK in the domestic market. Again, we are fully compliant to the requirement of SFC and CSRC.

根据现在监管的进一步的严格要求，我们对于未来大陆的referral也会进行进一步的管理。

Further, the company is already reviewing the referral requirement for the business from domestic to overseas according to the legal requirement. Jonathan hope that answer your question.

好，谢谢。

Thank you. Your next question come from Peter Zhang from JP Morgan. Please go ahead.

[Foreign language] 好，感谢管理层给我提问的机会，我是摩根大通的 Peter Zhang。 [Foreign language] 我这边有两个问题。 [Foreign language] 第一个是我们看到这个季度的产品销售量有所回暖，理财产品的销售量有所回暖。 [Foreign language] 我们想问一下，这样的趋势在二季度是不是持续？ [Foreign language] 二季度我们看到，我们客户的投资情绪怎么样？ [Foreign language] 能不能分国内和海外帮我们介绍一下这个产品的销售的进一步的趋势？ [Foreign language] 这是第一个问题。 [Foreign language] 第二个问题是我们也看到第一季度我们对于成本的管控也非常好，非常超预期。 [Foreign language] 可不可以请管理层给我们展望一下，对于前年我们的 head count 的增长，还有成本我们应该怎么思考？ [Foreign language] 那我做一下翻译。 Thanks for giving me the opportunity to ask this question. This is Peter Zhang from JPMorgan. I have two questions. First is I will notice that wealth management product transaction volume has pick up sequentially in first quarter, which is a really good trend. We are wondering what's the operating trend in second quarter? Do we see continual strong investment sentiment in our clients? How's the clients demand for domestic and overseas investment products? Secondly, my question is on the cost side. We have a really good cost control in first quarter. I'm wondering whether management can share what's the full year guidance for our head count growth and operating expense trend. Thank you.

谢谢Peter。我先回答第一个问题，关于产品的募集和未来的一个趋势。我觉得这个是个很好的问题。我分两个部分，一个是国内，一个是海外。国内的话，确实得益于资本市场的一个持续的表现。这个行业确实市场比较热，客户的信心就回来。相比于前年，我们看到这两年，去年和今年的一季度，整个的二级市场，客户的投资情绪和规模都在上升。但其实我们在国内也做了一个非常重要的工作，就是强调资产配置并不是简单地随着市场的热点，哪个好卖就销售哪个基金，而是强调给客户一个多元化的多策略的资产配置，强调客户组合的整体收益。所以说我们在去年今年持续在帮客户做程序资产配置解读，而且在今年的话，得益于AI，我们给客户的资产配置的完整性和客户持仓的稳定性，调仓的过程当中做了非常多的工作。这个客户也开始逐渐认识到，我们在配置的里面逐渐发挥稳定器的作用。所以说一方面市场持续得比较好，但另一方面，我们其实在国内的业务模式也在朝真正的配置方向去转型，也确实获得比较好的效果。那么海外的话，我觉得我们最大的市场就是AI，这个确实是个热点。而且我们本身在去年也看到过去几年CIO的报告其实也一直在强调这个划时代的过程当中，AI所带来的一个新的趋势。所以说我们在给客户的产品选择和产品的配置上面，是围绕着AI的逻辑来展开的，譬如说AI的基建、AI的VC、AI驱动的整个市场的资产，大的指数、结构化产品等等这些。所以说，正是因为CIO报告的一个驱动，让我们的客户在认可CIO报告开始，逐渐在完成资产的一个调仓，更多的布局在AI上面。所以我们在看到这个季度的产品持续地表现不错。我觉得更重要的其实我们在持续在全球Olive资产管理的平台的全球产品管理人覆盖的广度和深度，尤其在美国产品团队的覆盖的深度上面，确实也看到了非常多的优质资产。我觉得在财富管理行业核心是两块，一块是产品，一块是客户。产品把握住了大的趋势和方向，然后又让客户能够去理解和产生行动，这就会形成一个持续的好的效果。而且在整个的过程当中，又加上前面也讲到，能够让AI在赋能对客户的识别，以及产品匹配客户上面我们做了很多工作。所以说很多产品并不是我们说一定要像过去一样广撒网普遍地去宣传，而是更多的是精准地找到合适的客户，跟他进行深度的讲解。那在产品销售规模的效率上面也得到了很好的一个提升。Sorry。

Yes. Thank you CEO. Back to Peter's question, appreciate for what is asked. We will want to answer the question divided into two parts, which is the domestic market and also the overseas market. We must admit that for investment sentiment, a lot of time is affected by the entire market situation.

That's why we've been seeing that in 2025 and 2026 until now, the investment sentiment has been a lot improved compared to two years ago. However, what we've been really doing is not just getting business according to the market situation. What we've been doing is really trying to promote the idea that we've been helping clients to do the wealth management, which is to diversify their assets into different classes and different products so that they can have a better portfolio. That we have been seeing the progress in the domestic market. For overseas market, one of the things about being a wealth management company is the ability to getting the good product. According to the CIO report and also in the current market condition, AI has been a very important idea for investment idea. That's why we have different product that is AI related from infrastructure to AI company. That we've been doing that and also again, promote the same idea of helping clients to do their wealth allocation for a better portfolio. That we believe that with all this good quality product on hand, we should see a better sales allocations as a result. We must also emphasize that in terms of the selling abilities that now we've been using AI to support the company or the RM to do the clients risk analysis. We've been promoting products according to the client's needs that is more specific instead of doing the mass promotion like in the past, which again, we believe that we should enhance the efficiency of our selling and ultimately the selling results for the company.

我补充一下。我觉得分析师要理解我们的话，还是要看到诺亚还是一个有一个长期主义的公司。从22年我们开始提出来先保护再增长。确实我们的保险的规模是比较大的。我们的客户基本上在一个我们认为最重要的关键时刻都配置了保险。然后在23年我们就开始讲到中国民营企业的被动的出海。其实现在我想大家也都可以感知到了。25年我们基本上就开始看AI，然后在26年年初我们的核心策略是AI基建。我觉得当我们把这些我们的CIO的view拉在一起看的话，最重要的是保护了客户的资产，完成了客户资产的配置和增长。这就是为什么当市场好起来的时候，我们的规模会起来。我觉得对未来也是一样的，诺亚已经从2010年上市到我们今天也谈到，62个季度完成了净的盈利。我觉得客户还是会用他的真金白银来投票的。所以我自己也从业这么多年，我认为A股起来，市场的增长，说到底还是因为这个AI的叙事。诺亚过去是主要做一级市场为核心的，我们其实对于债什么的做得并不是那么好。我讲一个小的细节，就是我们发了很多VC PE的基金，都是跟科技相关的，也是最顶级的。过去朋友圈、微信群叫维权群，去年都改成价值投资群了。我们可以看到，我们的客户真金白银地在诺亚获得了收入，所以我们对我们未来的carry的分享也是很有信心的。那在海外的话，由于我们踏准了市场的节奏，给客户比较明确的指导，不论是在二级市场，在一级市场，客户都会有比较好的回报。所以我们是充满信心的。但是我们现在说实话，诺亚的市值确实太低了，我们也基本躺平了，主要是靠分红。所以我们也不在乎了。我们的核心非常简单，就是保护住客户的资产，让客户能够赚钱，他就可以长期跟我们走，我们是真正地变成了一个财富管理。当然我们不重视市值也是不对的，但是我也没办法主导分析师对我们的看法。所以我觉得我们——

这是董事长一个修辞手法。

对，所以我们是非常稳健的。我看到有一些互联网券商，当然做得都非常好了，但是它可能很少有一个指标，就是客户在他们这儿赚钱的比例。我们每年把所有诺亚的客户赚钱的比例，在我们每个板块是多少，作为一个非常重要的内部指标来考核的。所以我想我们谁都没有办法回答您刚才的问题，就是未来的规模怎么看，因为我们这个行业说30多年还是有点靠天吃饭的，但是我们还是充满信心的，因为就像巴菲特说的，短期是赌博机，长期是称重机。

When we reveal history of Noah, we've been talking about to protect our clients asset before growing in 2022. In 2023, it's about all this pricing entity in China that is going overseas market. Since last year we talked about AI, and for this year we emphasized in AI infrastructure product. What we've been demonstrating here is we are a real wealth management company. What we are doing is about how to make sure our clients asset can be well protected and ultimately have growth. Different from a lot of our friendly, not exactly competitors, but our peers, then I would say we always reveal how much profit our clients make every year. That has been a very key KPI for the staff here.

In a simple way saying that the company couldn't control a lot of things like the market cap or if the size of the company can grow drastically. However, if we look at what we've been doing with our clients, when we look at with the profitability for over 62 conservative quarters, when we have been looking at all these right decisions in the past, in history, we are confident that we've been able to keep up with the company and ultimately we'll be seen by the market.

I'll take Peter's second question. We actually don't have a set agenda or set target for frontline teams, obviously, although we see a declining number of items, but that's really driven by performance. As you could see, we're still achieving a much higher fundraising volume because of the higher quality and higher efficiency. We don't expect to have, I would say, intentional shrinking of the frontline team. We want to make sure, obviously they're fully occupied and able to generate enough volume as CEO and Chairlady just mentioned, there might be opportunity given the current policy situation. At the same time, obviously, we are targeting mid-back office efficiency, especially with the tool of AI.

We believe that many positions in the past that basically being performed by pure labor or pure hands are now being at least consolidated or merged into fewer positions. That actually leads to a significant, I would say, optimization in mid-back office structure. In the meantime, I think from the standpoint of whole year, although we don't expect to see huge expansion or growth in headcounts, we are going to see some key fulfillment in key markets worldwide, although just a couple of people. Obviously, we'll continue to invest in AI and technology. Peter.

[Foreign language] Thank you, very clear.

Okay.

Thank you. Once again, if you would like to ask a question, please press star then one and wait for your name to be announced. Your next question comes from Ying Tang from CICC. Please go ahead.

管理层好，很高兴给我这个提问的机会。我是中金公司经营组的唐英明，想和管理层请教两个问题。第一个问题是关于我们的海外业务。因为看到一季度境外业务的募集量、活跃客户数量，还有RM的数量都是略有下降的，所以想请教一下背后的原因，以及刚才管理层介绍了境外业务从牌照铺设进入到了经营落地的环节，那么后续我们应该怎样展望境外业务的增长呢？然后我的第二个问题是关于AI。刚才管理层也提到新加坡的AI财富管理部实现了更高的多的创收能力，还有客户经营的效率。所以想请问管理层是否可以再详尽地向我们介绍一下AI具体是怎么助力RM展业的，以及这个影响怎么体现在报表上？I will translate my questions. This is Yin Ming from CICC. I have two questions. First is transaction value, active client numbers and RM numbers for overseas business declined. Could you please talk about the reasons?

You mentioned overseas business has moved from a license setup to formal operation. What's the growth outlook for this segment going forward? My second question is about AI. The AI wealth management department in Singapore has delivered much stronger revenue generation and client service efficiency. Could you please talk about how AI helps RM develop their business? Thank you.

好，谢谢 Yin Ming。我先回答第一个问题，关于海外业务，其实可能同比的话，我们是增长的，环比的话稍微有点回落，其实也是跟市场和结构相关。我觉得我们的业务布局的话，海外业务是比较稳定的，在增长的。但另外一方面的话，其实我们确实这个季度的话也比较聚焦在高价值，就是我们的黑卡加伴钻石客户的一个服务和渗透的角度，这其实也是跟 AI 相关的。AI 的时代的话，其实我们对于高价值的客户在内部，因为我们过去几年都做了非常多的数据的和 CRM 系统那些结构化的数据和非结构化数据的整理，所以说 AI 时代就让我们可以更快速高效地去识别这些客户，然后匹配我们的一个产品的结构。所以说我们在看到我们把优质的资源，比如一些产品资源，其实也是更多地投放优质的客户上面，让他们能够在我们这里得到一个比较好的服务。我们在之前季度也披露过，我们推出叫诺贝积分。诺贝的话，其实也是衡量我们客户综合对诺亚的过去持续贡献的一个非常重要指标。那我们现在有了诺贝以后的话，我们对优质资源就可以向我们的优质客户有更多地倾斜。我觉得从未来来说，我们还会坚持这个策略，就是识别出我们高价值的客户，持续对我们有贡献的客户，然后让我们的优质的、市场的好的产品和资源投放，匹配给他们，让他们获得更长期的一个产品的投资和分享。

About your question about overseas business performance, we do see that a sequential drop in first quarter. However, when we look at the year-on-year, we still see a growth as reflected that we believe that is a normal performance across different quarters, various changes. About how AI has been enhancing our RMs. I guess we've been slightly touch base on the current way of doing business. We are now trying to be more focused and more accurate in picking products to certain clients. We've been able to distinguish a higher level of clients, so that we can be more efficient in terms of suggesting products to our clients and allocate the resources that we have on hand. Also we have introduced Nobel rewarding system since late last year, and that is more like a rewarding system we've been providing certain rewards to our clients. That again, would be focused on higher quality clients. That as a whole means that our selling methodology could be a better allocator in terms of our resources.

关于海外booking center牌照，其实我们这个季度披露我们拿到了美国的broker-dealer的牌照。其实从单一地域来说的话，我们是拓展了我们在美国作为四大booking center地区之一，未来的业务的一个发展。那么其实在香港我们其实已经是基本上全牌照的了，能够覆盖和支持我们所有的业务。在新加坡，我们也是在MAS下面有牌照，然后我们正在补充申请我们的资管牌照，就可以给我们的客户做更多的类似于全权委托这些业务的一个可能性。所以说在海外的booking center也是遵循我们大的战略，四大booking center服务，形成一个全球化的网络来服务我们的华人客户。那么美国的牌照落地也是能够加强这一块booking center板块当中业务落地的一个持续的计划动作之一。接下来我们会在这方面会加大投入的，谢谢。

As you may aware, we've been basically fully licensed in Hong Kong, and in Singapore we have different types of license under the regulatory of MAS, and we're currently applying for the asset management license as well. Back to your question about the U.S. markets booking center license. Again, it's one of the important steps that to complete the development of we are having a very important strategic booking centers for the company. After the license being granted, we are now working on the details of really applying business in that market. That we believe is going to be a very important strategic move for the company.

关于新加坡的一些想法。

我补充一下，首先我觉得，我希望分析师可能过去是我们有多少理财师，然后你们来建模，我觉得这个方法在AI时代可能不对了。我们现在不仅是有理财师一个前台，我们可能是三个前台。理财师他必须是被AI赋能的。所以我们的理财师，我们有一个叫AI RM，他的所有的客户都可以通过AI来指导他怎么经营，对客户进行分析，然后怎么匹配产品。第二个叫AI财富管理部。所以今天如果RM离职或者RM减少，其实对我们是好的，因为我们的客户就可以回到AI财富管理部，来为他们服务，是通过运营来服务这些客户。新增的客户主要通过转介绍，可以说是一个革命性的改变吧。第三个就是AI加财富管理部，就是AI生态。就有很多比如说非同业的，他会给我们做一些转介绍，我们也通过AI的方法来服务这些客户。我们在新加坡基本上完整地走过了这个流程。也可以说新加坡很难做，新加坡这个市场，因为它比较小。当然高净值客户也很多，全球的私行都把它作为重地。但是真正你要找到这种非常有品质的RM是非常难的，成本也很高。但是当我们开始用AI的方法切入以后，我们的业务成长了四五倍，而且服务的品质也大幅提升了。在当地的获客的增长，我们还是非常有信心的。通过新加坡覆盖整个东南亚。我们在新加坡的经验，也在反推回来我们的香港、美国、中国，确实也是一种改变，我们的商业模式的改变。当然因为我们在国内，我们的RM比较多，所以会慢一点。当然用的AI模型也不太一样，这个也是一些没办法跨越的。但是我们在海外，新加坡跟美国就完全可以用AI的方法来做了。比较新，本来RM比较少，所以我觉得你还会看到我们的RM数量进一步的减少，但是业务量不会降低。

The Chairlady is now doing a public, not announcement, but suggestion to our analysts. When you are doing the analysis of the company, maybe no longer we should use the RM as the indicator, or number of RMs as the indicator. The company needs business size in the future. What we've been trying to suggest that because of the enhancement of AI, all the human RMs have been supported in the first hand. Secondly, we have built up the AI plus wealth management department. As in the CEO's presentation, we've talked about how this AI plus wealth management has been able to do or to support, to take care of our clients, without enhancing more human resources on that. Also what we've been further development is the AI plus ecosystem.

That is more like a referral business to cooperate with different types of professional individuals in the market. That should help us to get clients under the AI plus wealth management system. Using Singapore as an example, yes, Singapore is not an easy market. It's small but competitive, and it's really difficult to hire the right RM. The cost will be very high. That's why we've been using AI as a testament when we started in this market. We have found out that we have been getting very good results from that market, that as mentioned, we have 191% growth in AUA in the first quarter. That's why we've been going forward to try to apply the same system into different overseas markets as well. Ultimately, we would like to apply that in the domestic markets too.

Some limitation of the historical structure and also because of the different AI systems, that may be slower. We should expect that the AI application to different overseas markets should be bringing results to the company in the near future.

[Foreign language] Is there any more questions?

Thank you. There are no further questions at this time. This concludes our question and answer session. I would now like to turn the conference back over for any closing remarks.

Thank you. Thank you everyone for joining us today, and please feel free to reach out the IR team for any further questions. Thank you very much.

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