Hello，欢迎收听Noah Holdings一季度二十二年的业绩电话会议。所有参加者开启只听模式。如果您需要协助，请按星号零。在今天的介绍之后，您将有时间提问。请注意，本次会议正在录音。现在将会议交给Jingbo Wang，Chief Executive Officer。请开始。 今天电话会议的议程，我想先首先谈谈对宏观的看法，再汇报一下2022年第一季度的整体业绩和几大业务板块的发展情况。接着请潘青为大家介绍季度财务信息，最后是互动问答。 2022年伊始，诺亚和诺亚的客户都开启了避险的模式。诺亚的客户、理财师、投资经理可能都从未经历过一个完整的利率上升、信贷扩张、流动性坍塌和信用大量过剩的多重因素叠加的周期。2022年一开始，我们就认识到，在强烈的逆风中，行情将是一项挑战。 2022年的一季度，我们反复和客户经理、客户强调的就是没有人在进入剧院的时候被踩踏，但许多人在出场的时候被踩踏。一季度，我们建议诺亚的客户重新检视自己和家庭的资产配置情况，积极地做好资产配置的再平衡，从先保护再增长的角度，让家庭资产配置更为安全和有效。正在发生的俄乌战争令人担忧，但作为财富管理的专业机构，我们建议我们的客户要保持理性。在这种两难局面之下，唯一确定的是市场会持续波动。这种市场环境不适合胆小的基金经理和客户，规避风险成为最好的选择。新年伊始，诺亚给客户的战略配置策略就是保，先保护再增长。 2008年次贷危机以来，全球范围内的长期量化宽松政策以及流动性的充裕已经造成了风险资产的巨大通货再膨胀，资产通胀已经渗透到世界的每个角落，量化宽松政策逆转已经到来，美联储及各国开启多轮的加息周期。对于资产价格而言，量化宽松向量化紧缩将是一次有挑战的调整。流动性快速撤出将把资产通胀变成资产通缩。 2021年下半年，中国的许多行业监管趋严，政策频出，导致这些行业的估值逻辑发生了根本性的改变。市场的体感比实际的经济数据还要冷。对当前中国经济的判断，我们的观点是延迟之于延迟判断。快速判断是一种基于直觉和简单的局部认知，而延迟判断对应的是复杂认知。中国经济的问题很明显是一个复杂问题，延迟判断可能是更为明智的选择。整体而言，中国的方向从关注效率到关注公平，鼓励科技创业，关键技术的安全可控，推动中国未来经济高质量发展，鼓励社会资金进入更多的早期科技基金，以解决卡脖子和自主创新的问题。从投资者资产配置的角度，把资金的一定比例配置早期的科技基金，对抗货币宽松和通胀的必然选择。 2022年一季度，诺亚CIO办公室给出了资产配置的主要战略方向，先保护再增长。在策略实施路径上，建议诺亚的核心客户从以下四个方面开始。首先检视自己和家族的资产配置情况，做好资产保障和资产隔离。其次，对于国内公开市场，建议配置多策略绝对收益型基金，主要还是从保护资产、降低波动、追求分红的角度出发。最后，私募股权投资基金是高净值客户的跨周期和保增长配置的主要资产类别，建议围绕科技主题进行战略配置。从基金配置方面，更关注早期行业基金、白马基金和特殊机会基金。这几类资产是从长期资产增值的角度，通过稀释流动性对抗必然的长期货币宽松和通胀。 我想强调的是，诺亚和歌斐的基因是从私人银行开始的，我们的客户是高净值个人客户，所以我们的出发点是要理解客户需求，以保护客户家庭资产的安全性和收益行为出发点，从产品驱动到以客户为中心的变革，对诺亚的战略选择和管理模式有着深远的影响。金融是一个周期性行业，每次金融危机的时候都有大型的金融公司倒闭，而他们的客户资产会大幅缩水。作为诺亚的经营者，我们在做出一些底层关键决策的时候，首要的判断标准是要活下去，不犯致命的错误。做投资资产配置不可能不犯错，但是要预留出我们可以纠错的时间，要预留出容错的空间。 On the agenda of today's conference, I would like to talk about the micro view first, and then report on the overall performance of Noah Holdings in the first quarter of 2022, and the development of main business segments. Let's invite our CFO, Mr. Qing Pan to introduce the quarterly financial information, followed by an interactive Q&A. At the beginning of 2022, Noah and Noah's clients switched to a risk-off mode. Noah's clients, relationship managers and investment managers may have never experienced a complete multi-factor superposition cycle of continuous hikes in interest rates, credit expansion, AKA quantitative easing, liquidity collapse, and massive excess credit. At the beginning of 2022, we realized that in the strong headwind, navigation will be a challenge. In the first quarter of 2022, we talked with relationship managers and clients repeatedly and emphasized that no one was trampled when entering this theater, but many people were trampled when they came out. In the first quarter of 2022, we suggested Noah's clients to re-examine the asset allocation of themselves and their families, actively rebalance the asset allocation, and make the family asset allocation safer and more effective from the perspective of protection over growth. The ongoing war between Russia and Ukraine is worrying, but as a professional institution of growth management, we suggest that our clients should remain rational. Under this dilemma, the only certainty is that the market will continue to fluctuate. This market environment is not suitable for quote-unquote timid fund managers and clients. Avoiding risk has become a better choice. At the beginning of the new year, Noah's strategic allocation strategy to clients is protection first, then growth. Since the subprime mortgage crisis in 2008, the global long-term quantitative easing policy and abundant liquidity have caused the huge inflation of risky assets. Asset inflation has penetrated into every corner of the world. The reversal of quantitative easing policy has come, and the Federal Reserve and other countries have started multiple interest rate increase cycles. For asset prices, the shift from quantitative easing to quantitative tightening will be a challenging adjustment, and the rapid withdrawal of liquidity will turn asset inflation into asset deflation. In 2021, many industries in China were subject to stricter supervision and frequent policy changes, which led to fundamental changes in the valuation logic of these industries, and the market feels colder than the actual economic data. Our view is to delay questioning and judgment on China's economy. Quick judgment is a simple and partial cognition based on intuition, while delayed judgment corresponds to complex cognition. The problem of China's economy is obviously a complex problem. Delayed judgment may be a wiser way. On the whole, the direction of China is from paying attention to efficiency, to paying attention to fairness, to encourage scientific and technological entrepreneurship, ensure the safety and controllability of key technologies, promote China's high quality economic development in the future, encourage social funds to enter more early science and technology funds so as to solve the problem of being seized by the throat and independent innovation. From the perspective of investor asset allocation, allocating a certain portion of their capital to early science and technology funds is an inevitable choice to combat monetary easing and inflation. In the first quarter of 2022, the theme word of asset allocation given by Noah CIO office is protection over growth. On the strategy implementation path, we suggest that Noah's core clients start from the following four aspects. First, check the asset allocation of themselves and their families and pay attention to asset protection and asset segregation. Secondly, for the domestic public securities market, we recommend allocation to multi-strategy return funds, mainly from the perspective of protecting assets, reducing volatility, and pursuing dividends. Finally, private equity investment fund is the main asset category to cross cycle and maintain growth for high net worth clients. We suggest a strategic allocation to science and technology and pay more attention to early industry funds, white horse funds, which have experiences to ride through cycles, and special opportunity funds. From the perspective of long-term asset growth, such assets fight against the inevitable long-term monetary easing and inflation by sacrificing liquidity. I would like to emphasize that Noah and Gopher Asset Management's genes are private banking, and our clients are high net worth individual clients. Therefore, our starting point is to understand client needs and take protecting the safety and profitability of the client's family assets as a starting point. The transformation from product driven to client centric has a far-reaching impact on Noah's strategic choice and management model. Finance is a cyclical industry. In every financial crisis, large financial companies close down and their clients' assets shrink significantly. As the operator of Noah, when we make some key fundamental decisions, the first criterion is to survive and not make fatal mistakes. It is impossible to not make mistakes in investments and asset allocation, but we should reserve time and space for us to correct and tolerate them. In the first quarter of 2022, facing an extremely complex macro environment, Noah adopted five core management strategies. First, thoroughly cutting costs. Second, focusing on multi-dimensional services and activating existing Noah adopted five core management strategies. First, thoroughly cutting costs. Second, focusing on multi-dimensional services and activating existing Noah adopted five core management strategies. First, thoroughly cutting costs. Second, focusing on multi-dimensional services and activating existing customers as the main task, with the goal of winning back lost customers and increasing the share of wallet of existing customers. Third, fully developing new products to meet customers' protective back lost customers and increasing the share of wallet of existing customers. Third, fully developing new products to meet customers' protective needs and post-pandemic needs. Fourth, increasing high yields. Fifth, during the epidemic prevention period, building customer, employee, supplier, government, medical institutions, and other aspects of good relationships. In Q1, our operating costs dropped significantly, down 33% year-on-year, down 57% quarter-on-quarter. high yields. Fifth, during the epidemic prevention period, building customer, employee, supplier, government, medical institutions, and other aspects of good relationships. In Q1, our operating costs dropped significantly, down 33% year-on-year, down 57% quarter-on-quarter. high yields. Fifth, during the epidemic prevention period, building customer, employee, supplier, government, medical institutions, and other aspects of good relationships. In Q1, our operating costs dropped significantly, down 33% year-on-year, down 57% quarter-on-quarter. Operating profit margin reached 39.4%, down 1.6% year-on-year, up 29% quarter-on-quarter. 2022年公司的目标和诺亚建议的客户家庭和家族的资产配置策略相同，也实现保后再增长，以客户为中心，以生存为底线。本季度我们录得属于股东的非GAAP净利润3.1亿元人民币，同比下降32%，环比上升8%，达成全年盈利指引的22%。2022年第一季度，诺亚整体实现销售净收入8亿元人民币，同比下降35%，环比下降37%。Sonia。 In the first quarter of 2022, facing the extremely complex macro environment, Noah adopted five core business strategies. First, completely reduce costs. Second, utilize multi-dimensional services and reach old clients as the main task, as well as set up goals to recover lost clients and increase the wallet share of existing clients. Third, make every effort to develop new products to meet the projected needs of clients and their post-pandemic needs. Fourth, maintain high productivity. Fifth, during the epidemic prevention and lockdown period, build good interpersonal relationships among clients, employees, suppliers, governments and medical institutions. In the first quarter, our operating costs fell sharply, down 33% year-on-year and 57% quarter-on-quarter. The operating margin reached 39.4%, down 1.6% year-on-year, and a significant increase of 29% quarter-on-quarter. In 2022, the company's goal is the same as Noah's asset allocation strategy for clients and their families, which is protection over growth, client centric and survival as the bottom line. In this quarter, the non-GAAP net income attributable to shareholders was RMB 310 million, down 32% year-on-year and up 8% quarter-on-quarter, reaching 22% of the annual guidance. In the first quarter of 2022, Noah achieved a net revenue of RMB 796 million, down 35% year-on-year and down 37% quarter-on-quarter. 金融产品的募集量为人民币151亿元，同比下降45%，环比下降29%。其中值得一提的是，标准化产品中的私募证券基金同比下降69%，环比下降40%，主要是我们主动减少了该类产品的投放的结果。一季度私募证券产品募集量为40亿，以CTA策略和逆向策略为主。公募基金新增募集量为171亿，主要是货币和同业存单的基金。我们的公募to B的业务，基金上架数量超过了一万只，为客户提供更加丰富的产品选择，微笑私库已经服务汽车、制造、科技等多个行业的超过两百家机构客户。私募股权的基金募集量为人民币32亿元，同比下降33%，环比上升5%。国际业务方面，我们采取相同的策略，大幅降低了二级市场的产品投放和配置，聚焦保护性策略和早期的一级市场基金。海外有亿点九亿元人民币，同比下降44%，环比下降2.3%，占集团总收入24%。海外资产配置规模达到人民币24亿元，同比下降35%，环比上升3%，占集团总募集量的16%。海外资产管理规模人民币291亿元，同比增长12%，环比增长3%，占集团整体AUM 18%。我想再强调一下，2022年一季度对于二级市场股债相关产品规模和存量的下降，是诺亚一个保护客户资产、主动调整产品投放的市场行为。在2021年四季度和2022年一季度，诺亚的核心观点就是降低客户在二级市场的产品配置和投放，加大保护性资产的配置，支持客户端的家庭资产健康度检查。战略资产配置策略是先保后再增长，保护性的产品，一季度由于受短期监管的影响，客户配置规模为7亿，同比下降17%，环比下降40%。但我们相信客户配置的规模会在二季度得到改善。2022年一季度，诺亚持续地推进客户分层经营的策略，Diamond Card和Black Card客户数持续增长，接近8,300人，创历史新高。Black Card客户数同比增长31%，Diamond Card客户数同比增长7.3%，钻黑合计同比增长12%。2022年，钻黑客户增长仍然是我们最重视的战略投入和增长目标之一。同时，我们也确立了挽回流失客户、唤醒沉睡客户的项目目标，识别客户的核心诉求，解决他们的痛点。在总部层面，聚焦非标转标的客群进行转换，以多策略基金为底仓，满足客户稳健类的配置需求。Sonia。 The total transaction value of the quarter was RMB 15 billion, down 45% year-on-year and 29% quarter-on-quarter. Among them, it is worth mentioning that the private secondary funds in the standardized products category decreased by 69% year-on-year and 40% quarter-on-quarter, mainly due to our initiative to reduce the launch of such products amid market volatilities. The transaction value of private secondary products was RMB 4 billion, mainly consisted of CTA strategy and reverse strategy. The transaction value of mutual funds was RMB 7.1 billion, mainly monetary funds and interbank certificate of deposit funds. For our mutual fund to B business, we now offer more than 10,000 funds, providing clients with a wider range of product choices. Small treasury now serves more than 200 institutional clients in automobile, manufacturing, science and technology, as well as other industries. The transaction value of private equity funds was CNY 3.2 billion, down 33% year-over-year and up 5% quarter-over-quarter. In terms of international business, we adopted the same strategy to significantly reduce the product launch and asset allocation in the secondary markets, focusing on the protective strategy and early primary market bonds. The net income of the overseas sector was CNY 190 million, down 44% year-over-year and 2.3% quarter-over-quarter, accounting for 24% of the group's total revenues. The overseas transaction value reached RMB 2.4 billion, a year-on-year decrease of 35% and a quarter-on-quarter increase of 3%, accounting for 16% of the total transaction value of the group. The overseas AUM was RMB 29.1 billion, with a year-on-year increase of 12% and a quarter-on-quarter increase of 3%, accounting for 18% of the group's total AUM. I would like to emphasize again that the decline in the transaction value and AUM of public securities in the secondary market in the third quarter of 2022 is a market behavior of Noah to protect client assets and actively adjust the product launch. In the fourth quarter of 2021 and the first quarter of 2022, Noah's core view is to reduce the secondary market product allocation and launch, increase the allocation of protective assets, and support the health inspection of clients' family asset portfolios. The strategic asset allocation strategy is protection over growth. Due to the impact of the new short-term regulatory policies, the transaction value of protective assets in the third quarter was RMB 700 million, down 17% year-on-year and 40% quarter-on-quarter. We believe that the allocation scale of these assets will be improved in the second quarter. In the first quarter of 2022, Noah continued to adhere to the strategy of promoting the strategic field management of clients, and the number of core clients, Diamond Card and Black Card, continued to grow to nearly 8,300, a record high. The number of Black Card and Diamond Card clients increased by 31% and 7.3% year-on-year respectively, together representing a 12% growth year-on-year. In 2022, client growth is still one of the most important strategic investment and growth goals of Noah. At the same time, we have also established a project growth goal to recover lost clients and reactivate dormant clients, identify clients' core demands, and solve their pain points. At a headquarters level, focus on the conversion of those clients from the standardization transformation and take multi-strategy funds as a stabilizer to meet clients' demand of conservative assets. The net income of the asset management segment in the first quarter of 2022 was RMB 200 million, down 26% year-on-year and down 27% quarter-on-quarter. Among them, one-time commission and performance-based income both decreased while recurring service fees increased by 75% year-on-year, reflecting the ability of long-term assets to bring sustainable income. Gopher AUM increased slightly to RMB 166.1 billion compared with the end of last year, of which private equity increased slightly to RMB 132.7 billion compared with the end of last year. The AUM of public securities slightly reduced to RMB 10.4 billion. The asset structure is healthy and in line with expectations. In the first quarter, in view of the sharp price falls of Chinese ADRs, the war between Russia and Ukraine, Chinese domestic microeconomy and the prevention and lockdown of the epidemic in Shanghai, Gopher conducted a cash flow survey and net value revaluation of all primary market funds and its direct investment projects. Adopted a more cautious and conservative investment strategy and strengthened exit management. Gopher's domestic early-stage industry fund of funds, special opportunity secondary funds, and Gopher's US teams directly managed American Silicon Valley venture funds and American rental apartment real estate funds, have performed well on the whole, creating value for clients when market is volatile. For public securities, by the end of the first quarter, Gopher's standardized products have also delivered robust investment performance. Among them, the annual return of Gopher Megatrend Manager of Managers fund was 10.7%, exceeding the benchmark return rate by 9.7% in the same period. The annual return of top thirty funds was 11.1%, exceeding the benchmark yield by 4.5% in the same period. It is worth mentioning that all three types of funds of Gopher's stabilizer target strategy, active, balanced, and stable, continued to outperform the relevant indices and amid market fluctuations in the first quarter. Since its establishment, the accumulated returns have been -2.1%, -1.6%, and -0.7% respectively, and the pullback is far less than that of the CSI 300 and CSI 800 indices in the same period, effectively controlling fluctuations and pullbacks. Noah Holdings. Noah Holdings is headquartered in Shanghai. From the beginning of March, Shanghai has entered a stage from a network lockdown to a complete lockdown. From the start of the lockdown, Noah has established several epidemic crisis management project teams. The group management team is responsible for the overall management during the epidemic, decision-making on key matters, real-time adjustment of strategies in response to the development of the epidemic. The epidemic situation assessment team will conduct real-time assessment of the epidemic situation development in various regions and provide insight input for the company's decision-making. The epidemic communications team is in charge of HR and organizational development department to ensure that the latest policies of the company are conveyed to Noah's management team above level 18 in a transparent and timely manner. The epidemic emergency response team formulates corresponding policies according to the external ecology, such as employees and clients, government and public welfare, and in combination with the development degree of the epidemic in various regions, so as to minimize the impact of the epidemic on the company. The post-epidemic recovery team is composed of asset management, risk management, and our international intelligence, sales office, marketing team, and frontline Noah Triangle teams, to work together to adjust the marketing strategy in real time according to the development of the epidemic, identify opportunities of clients' new needs, and make full preparations for the growth after the epidemic. In the past 40 days, Noah has delivered more than 500 trips of groceries and medicines to employees in Shanghai, provided medical treatment and support to infected employees, and delivered more than 1,200 trips of supplies to core clients and aged clients in Shanghai. At the same time, Noah has coordinated resources to meet clients' medical needs and linked Gopher's underlying portfolio companies to deliver various groceries and medicines to help clients, employees and suppliers to go through this difficult period. In this process, Noah also provided psychological counseling courses for employees and clients, purchased various medical materials, and donated them in batches to Shanghai Municipal Health Commission, hospitals, police stations, quarantine centers, community front line, and other places. There are more than 20 Noah employees who have been stationed in the office in order to ensure the continuity of the company's business and have not returned home so far. Noah's intentions, care for clients, employees, and suppliers, and sense of responsibility for society have been widely praised. With professionalism and empathy, Noah is devoted to accompany clients from generation to generation. 2019年以前，领先的产品是诺亚的核心竞争力之一。2019年下半年开始，诺亚进行从产品驱动到以客户为中心、以真诚为底线的全面变革。我们坚信，只有真诚地以客户为中心和客户利益保持一致，建立以客户为中心的组织能力，才能避免以规模为中心、以佣金为中心、以自我为中心。诺亚从事财富管理行业接近十八年，经历过多次经济周期，我们深刻认识到财富管理除了资产配置能力以外，需要较强的与客户链接的能力。过去从事中国财富管理行业的从业人员参差不齐，行业标准混乱不清，有些地方充斥着似是而非的说法和误导客户的谬论，从业人员自己也弄不清楚。所以这也要求我们作为财富管理的从业者，必须要有最高的职业道德，把对真知智慧的追求当做自己的道德责任，要有意识地杜绝一切屁股指挥脑袋的理论，真正建立起受托人的责任。把客户给我们的每一分钱都当做自己的父母节省一生省下来让我们打理的钱，才能够理解受托责任。尽管在2022年的第一季度，大环境上暂时遭遇了各种挑战与压力，但也正因为是一场超越大多数人认知的困难，诺亚与我们的客户深度连接进一步的凸显。我们在我们的线上分享，客户活跃度大幅提升。微诺亚APP上的直播观看人数同比增长了98%，观看人次同比增长了201%，以及与重点城市客户的小范围视频会议活动广受欢迎。理财师也因此得以获得比过去更多更深度的客户触达的场景，这也是诺亚品牌的温暖体现。同时，我们也进一步凭借健康的财务状况，持续在客户界面、品牌形象、市场推广上坚定地投入，在招揽优秀外部人才上坚定投入，践行在困难的时期投资未来。现在请潘青为大家介绍一下2022年一季度的具体财务表现。Sonia。 Before 2019, leading products are one of Noah's core competitiveness. From the second half of 2019, Noah has implemented a comprehensive transformation from product-driven to client-centric and survival as the bottom line. We firmly believe that only by sincerely taking clients as the center, keeping interests in line with clients, and establishing the organization capacity of client centricity, can we avoid being scale-centered, commission-centered, and self-centered. Noah has been engaged in the wealth management industry for nearly 18 years, and has experienced many economic cycles. We deeply realize that wealth management requires strong ability to link with clients in addition to asset allocation strategies. In the past, the employees in China's wealth management industry were not all professional, and the industry standards were unclear. Some places were full of specious statements and fallacies that misled clients, and some practitioners themselves could not even understand it. Therefore, as practitioner of wealth management, we must have the highest professional ethics, regard the pursuit of true knowledge and wisdom as our moral responsibility, and consciously put an end to all the decisions that are determined and made by positions. We should really establish awareness of trustees responsibility. Treat every penny given to us by clients as our parents' life savings. Only then can we understand the trustee's responsibility. Although in the first quarter of 2022, we temporarily encountered various challenges and pressures in the macro environment, it is precisely in the face of a difficulty beyond the cognition of most people that Noah's deep link with our clients is further highlighted. The client activity of our online sharing has increased significantly, with the number of live viewers on the Noah app increased by 98% year-on-year, and the number of viewers increased by 210%. Small-scale video conferences with clients in key cities became widely popular. Relationship managers have been able to obtain more and deeper client touchpoints than in the past. This is also the warmth embodiment of Noah brand. At the same time, relying on our healthy financial situation, we continue to make firm investments in client interface, brand image and marketing, in attracting excellent external talents and proactively investing in the future in difficult times. Now, let's invite Mr. Qing Pan, CFO of the group, to introduce detailed financial performance of the quarter. Thank you. Thanks, Sonia, and thank you, Chair Lady, for introducing the groups. Hello dear investors and analysts. Like Chair Lady Wang has mentioned, the first quarter of 2022 has been a difficult one amid lingering impacts of the COVID-19 pandemic, as well as uncertainties around the macro environment, policy changes and geopolitical conflicts. These factors were reflected in the challenging capital market environment overall. With MSCI Overseas China down 23%, Shanghai Securities Composite Index down 11%, as well as Nasdaq and S&P 500 down 9% and 5% in the first quarter, respectively. The emergence of negative volatility has started to pressure the equity market since the second half of last year, translating into softened investment and investor sentiment, evidenced by a decline of 74% year-over-year and 57% quarter-over-quarter decrease in new issuance of mutual funds during the first quarter of 2022. Nevertheless, NOAH has managed to weather through these challenges with a client-centric mindset, continuing to enlarge our Black Card and Diamond Card client group, made noticeable progress in our client segmentation strategy, and also achieved an 8.8% quarter-over-quarter increase in non-GAAP net income with disciplined OpEx management, while remaining committed to essential investments in client and market strategic initiatives. Now let me walk you through more detailed results of the first quarter. As a result of the lackluster performance in equity markets in the first quarter, as well as our adjustment in the secondary product distribution strategy, as mentioned by Chair Lady, client investment sentiment softened. As a result, one-time commission income was down on the back of the decrease in transaction value from RMB 27 billion in 2021 quarter one, the same period last year, to RMB 15 billion in 2022 quarter one. Carrying income comparing to the first quarter of 2021 record-setting quarter was also down due to the weak performance of the equity market. As a result, overall net revenue were RMB 796 million for the first quarter, down 35% year-over-year and 37% quarter-over-quarter. One-time commissions declined to RMB 102 million due to lower transaction value amid challenging market conditions. The distribution of onshore life insurance products also slowed down during the quarter as we made necessary adjustments according to Rule 108, published by the China Banking and Insurance Regulatory Commission in October 2021. Our team has managed to complete these adjustments in compliance with the new rule in the first quarter, and we have resumed distribution of onshore life insurance products to our clients, of which the financial impacts will be reflect in the second quarter results. The stabilizing revenue stream, which is the recurring service fees, remained stable at CNY 484 million, up 1.9% year-over-year, but still down 13.3% quarter-over-quarter, mainly due to NAV adjustments made to public security products. Performance-based income was CNY 174 million, flat from the previous quarter. Transaction value was CNY 15 billion for the quarter, down 45% year-over-year and 29% quarter-over-quarter, due to a shift to risk-averse sentiments among investors when faced with growing macro policy and geopolitical uncertainties. As a result, public securities products, including private secondary products and mutual fund products, decreased by 34% from the previous quarter. As a wealth management firm and trusted advisor to our clients, we believe that maintaining communications with our clients and guiding them through this challenging and volatile market is the utmost important task for us, and I'm glad to say that we have done an excellent job in that regard. With enlarging our core client group, including our Black Card and Diamond Card clients, continues to be the foremost strategic initiative this year. We're happy to see a 12% year-over-year growth in this client group. More specifically, Black Card clients and Diamond Card clients grew by 37% and 7%, respectively, from previous year, thanks to the implementation of a more targeted client segmentation strategy and operation enhancements carried out in key cities and regions. Through our mutual fund platform, Smile Treasury platform, we also made substantial progress in acquiring and engaging corporate and institutional clients. The number of active corporate institutional clients increased by 33% from the previous quarter, and the mutual fund products that we allocate for corporate institutional clients increased by 88% year-over-year. Like Chair Lady Wang mentioned, we believe there's large but underserved market for treasury management service needs among small and medium-sized enterprises, and we will continue to explore this market segment with our SaaS solution platform, as well as leveraging our comprehensive line of product and well-established service network. Income from operations were RMB 314 million during the quarter, up 137% quarter-over-quarter, but down 38% year-over-year as profit level in the first quarter of 2021 was largely benefited from a record-setting performance-based income. Operating margin was 39%, an improvement from 11% from the previous quarter due to lower compensation costs as well as stringent management on various OpEx G&A expenses. Compensation-related expenses were RMB 358 million, down 39% year-over-year and 51% quarter-over-quarter as relationship managers' commissions decreased on lowered transaction value. Investment income was RMB 25 million as we recorded a gain from our principal investment in iCapital Network based on its fair value appreciation. non-GAAP net income was RMB 313 million, down 32% year-over-year, but up 8% quarter-over-quarter. As for our segmented results, net revenues from wealth management segment was RMB 578 million, down 39% year-over-year and 40% quarter-over-quarter, due to a slowdown in transaction value during the quarter. Net revenues from asset management segment was RMB 201 million, down 26% year-over-year, 27% quarter-over-quarter, due to lower performance-based income. Total AUM was RMB 156 billion, flat from the end of last year, as the increase in PE-AUM was largely offset by NAV adjustment in public securities products and continued exits in real estate products. Moving on to balance sheet. We remain in healthy liquidity position as our current ratio stood at 2.6 times. The debt-asset ratio was 23% with no interest-bearing debt on our book. By the end of first quarter, we had RMB 3.9 billion in cash. Supported by a strong balance sheet, we're able to continue to provide high quality services to our clients during this challenging macro condition and lingering impacts from the COVID-19 pandemic. In light of the recent volatile environment, we published our first edition of Noah CIO House View report, aligning our global macro insights and recommendation of our clients to adopt a protection first and growth strategy for 2022. With a more comprehensive and detailed solution strategy reports that follow through, our relationship managers are better equipped with investment solution recommendations catered toward different market scenarios and client profiles when engaging with clients. Fully shifting from a product-driven model to a client-centric and solution-driven model. We look forward to pushing ahead our key strategic initiatives and continuing our investments in research capabilities to differentiate our solution-driven asset allocation services. We'll continue to progress on enlarging our institutional client base, the treasury service platform, and we believe this will also provide synergetic opportunities for individual wealth management services in the years to come. Thank you everyone for listening. I will now open the floor for questions. Operator. We will now begin the question and answer session. To ask a question, you may press Star, then One on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press Star then Two. At this time, we will pause momentarily to assemble our roster. First question comes from Ethan Wang from CLSA. Please go ahead. 好的，各位很好。首先希望大家在上海生活情况一切都好。我这有两个问题，第一个问题是关于赎回的，因为我们知道，大家都看到行业数据，一季度的基金产品销量肯定都是不好的，但我们想，就管you先生，就是确认一下，我们有没有见到一些比较明显的赎回的状况，特别是如果是不同层级的客户，这个赎回状况是不是有一些区别？这是我第一个问题。第二个问题是，因为今年这个销售情况不好，会不会出现一些在我们和，比如基金公司进行这个协商的时候，会出现一些费率方面的压力，想问一下管you先生这个情况。 I have two questions. The first is on the redemption of the asset management products. We understand that in the first quarter, the whole industry is suffering from product sales. Have we seen any sign of material redemption in the products, especially for different tiers of clients? That's my first question. Second question is on the fee level, just want to check with management, when we've seen the pressure from the fund sales, have we seen any pressure from fee level when we negotiate with the fund management companies? Thank you. Thank you, Ethan. 那，那我回答。 好，王总您说。 我简单回答一下。我觉得我们还是非常有策略地在推进这个客户的调仓，其实是从去年四季度开始的。所以你可以看到在四季度我们的这个保障型的、保护型的这个资产的这个增量是非常大的，就我们减少了这个投放。调仓的核心主要还是从股票做多的价值型的，到了一些中性市场策略、宏观对冲策略、CTA策略这样的一个，并不是客户流失了，但是是减少了对于这种价值型做多的，特别是大股票的这样的一个基金的换仓。还有就是换到多策略，其实去年我们的核心就是这个多策略基金，总体来看的话回撤还比较小的，所以没有碰到这种大规模的赎回，主要是调仓。那供应商之间的话，我们目前没有碰到费率的这个压力的问题，我觉得碰到费率压力的还是属于它跌的回撤比较大，然后这个给客户就是新的承诺什么的。因为我们其实的这个准备并不是从今年开始的，如果说得长一点，是2020年我们的核心策略是股债混合，所以去年的股债，2021年股债混合表现不是特别好，所以规模没有亏钱，10%到12%吧。但是呢，因为股票做多的绩效好嘛，那像去年的话，我们就是股债混合加多策略是我们最重要的核心，所以总体来看，客户的满意度还比较高的。如果是从大的角度来看的话，虽然我们一季度规模是下来了，但是我们的客户满意度可能是历史上最好的时候。所以没有碰到那个供应商的费率的压力的问题，但是可能会有一些，因为净值下跌嘛，他可能就是这个管理费就收的少一点。但你看我们在去年，我们大量地退出，所以不管是在一级和二级美股市场，我们的carry量都是非常大的，主要原因就是我们是策略性的，持续地在减持。好，我先说到这。 OK。 OK. Also thank you for asking about Shanghai. We're all doing okay. For your first question, I think it's actually a strategic reallocation between different strategies in terms of you know, your question regarding whether or not there's large redemption. Since last quarter, we have been pushing forward the protection first kind of strategy for the client allocation strategy. We did not see a huge outflow or pure outflow, net outflow, if you will, from you know, one fund, but rather a reallocation probably between long only sort of the funds that seeking for alpha in the market, but to a more balanced type of product like the CTA and neutral strategy, especially the multi-strategy kind of products. We'll see some rebalancing between different strategies. In terms of fee pressure from the fund providers or fund managers, it really depends on, I guess, the performance of their funds. When they do see a large group of unhappy clients, they probably will experience some pressure on the fee-wise. In terms of the suppliers that we work with, we have not seen too much of a downward pressure, in terms of the fee ratios on these funds. You know, we have actually started preparation for the shifting strategy of fund supplying, if you will, probably a couple of years ago, moving to more balanced portfolio, especially like the multi-strategy kind of products. We also started exiting from some of the funds, especially the long-only funds. That is probably part of the reason that we achieved pretty high level of carry income in 2021. In terms of fee pressure, especially you know, how we negotiate with our fund suppliers, we haven't seen too much of a change unless the fund is really, you know, performing really poorly. Ethan. 好 的 ， 。Thank you。 Thank you. Your next question comes from Emma Zhu from Bank of America Securities. Please go ahead. 好，谢谢给我这个提问的机会。我这边也是有两个问题，第一个问题是想问一下我们的这个保险销售，刚刚管理层也提到了，就是说一季度的销售有受到了去年十月份这个监管新规的影响，那二月份，就应该这个销售能，通过整改能够恢复。那可不可以在这个详细地介绍一下，就是说去年的这个新规对我们之前的保险销售为什么会产生影响，然后我们是怎样通过整改来实现这个业务的恢复的。然后第二个问题是想问一下，就是因为我们也看到，二季度以来，整个疫情，国内的疫情多点散发，然后有不少城市都进入了封控，那这个对我们的业务造成了怎样的影响？然后我看我们就是全年的这个营业执业目标并没有下调，那但是一季度我们也看到了，就是整体情况确实也是比较艰难的，因为这个外部环境的情况，那我们是打算怎样做来实现这个全年的这个目标的。 I have two questions. The first one is about your insurance sales. You said in the first quarter your insurance sales was impacted by the regulation issued in October last year, but you already made some rectification and achieved recovery in the second quarter. So could you elaborate a little more on how the regulation impacts your insurance business, and how are you able to achieve the recovery in the second quarter? The second question is about COVID impact on your business, because we see there are more COVID lockdowns in China since the second quarter. So how will it impact your business? You still want to achieve your full year net profit guidance. How are you planning to achieve this guidance given the very tough first quarter already? Thank you. 保险的那个潘青，要不然你讲一下。 好的。对我们那个Emma那个保险其实，并不是一个整改，我用英文讲吧。OK, the impact on the new insurance regulation was basically there was a very abrupt cut off on the compliance date, which is December 31, 2021, that you know the previous sale nationwide on the Internet was not continuing to be allowed, you know, as of January 1, 2022. You have to obtain the license in certain cities to be able to actually make that sale. At that time, we were actually in the middle of the application for that permit, and we obtained the permit actually in the first quarter of 2022. It's basically the abrupt cutoff on the rules and regulations sort of caused a pause in the sales, especially for the first couple of months in the first quarter. You know, once we have obtained that permission, I'll be able to do the sales starting from the second quarter. The financial results will reflect that. Emma, basically a quick summary on, you know, what Chair Lady has shared. Basically, I think a couple of reasons. One is, Shanghai is obviously more impacted than other cities. Nationwide, we'll still be able to, you know, hold our client conferences, although at, you know, much smaller scale than the past, but still be able to actually get in touch with clients. As you would imagine that under situations like this, the desire to connect with people actually becomes stronger. You know, the client actually interact with us on a more frequent basis. Two is we probably stay more prepared, you know, than competitors, if you will, especially from the product distribution, from the online sharing sessions, and, you know, especially on the diversity of products as well as services that we'll be able to provide with the clients under different situations that, you know, we have, you know, primary, secondary as well as all kinds of comprehensive services, especially, you know, the capability of placing overseas or US dollar products for our clients to actually provide them with more options. We believe obviously it will bring a negative impact on, I guess, on the market overall. But at the same time, it also heightens, I guess, the need on, you know, especially the anxiety on the uncertain macro situation. The client is actually more willing to listen to, you know, one is more options in terms of allocation of assets, and two is they were looking forward to have more safety cushions, if you will, on their assets. I guess obviously there is impact, but we also view that as opportunity, you know, as we have a very strong balance sheet and also liquidity. This is the reason that we continue to make investments in, you know, client interface related, as well as the city expansion in market share. In terms of guidance, I think that's a very good question. When we're actually making our budget and, you know, on the basis of giving our guidance, which is already in the midst of first quarter, we actually anticipated, I guess a challenging first quarter. Through the guidance of how we achieve the profit level, we did put down our first quarter as probably the most challenging quarter. Still, I guess the situation was a little bit out of expectation. A couple of things. One is actually a citywide quarantine of Shanghai that was not forecasted. And two is really the process of the application for the insurance permits took a little bit longer than we expected. We're probably a little bit behind of what we originally planned for the first quarter's profit. It's you know, gap small enough that we'll be able to catch up in the following quarters. Emma. Emma, did that answer your question? Thank you. Okay。Thanks。 Thank you. Your next question comes from Yoyo Fan from CICC. Please go ahead. 好的，请问王宇总可以听到我这边吗？ 可以的，尤由。 好的好的，是。汪总好，潘总好，Sonia总好，还有诺亚的各位管理层好。也是非常感谢给我这个提问的机会。我是中金公司的分析师尤由，尤由。然后也确实是在一季度这么一个大的市场环境下，看到咱们整体的这个核心的Black Card客户数其实还是取得一个非常不错的增长，创下一个新高，那确实还是比较可喜。我这边的话主要有两个问题想再请教一下。首先第一个的话是关于这个B端的业务，其实，刚刚管理层也有简单提到，但我这边可能想请管理层，不知道能不能再给我们详细介绍一下，就可能像这个去年新上线的微笑私库，还有公募机构投业务的一些最新进展。如果看目前的话，可能对咱们整体的一个像这个公募的募集量，或者说是体现在收入上大概一个贡献情况会是怎么样？然后第二个问题的话是，也确实是看到咱们的这个理财师的人数是略有所下降，可能也是想请教一下背后的一个原因。然后另外的话，其实刚刚那一位分析师也有提到，就是因为确实可能除了这个整体的市场环境外，包括像三四月开始这个上海疫情，就想请教一下，对咱们这个理财师可能现下的这种客户的展业是不是造成了比较大的影响，然后尤其是不是更多会体现在对这个二季度上可能会有一个比较大的影响。对。 I will translate my questions. Thanks management for taking my questions. I am 尤由 from CICC. It's still very exciting to see the stable growth of our number of core clients. I I have two questions here. The first question is regarding the B business. Would the management give us more introduction on the progress of B business, like how much contribution does it have on our mutual transaction book value or revenue? And the second question is on the decrease of the number of relationship managers. What's the reason behind that? 那潘青，要不然你回答一下微笑私库怎么的。 Okay. Thank you Yoyo for the question, and thanks for the support by the way, in terms of we're both quarantined in Shanghai, hope everything is you and your family is doing okay. In terms of the Smile Treasury, which is the institutional version of our mutual fund platform, we have actually started the campaign officially in the first quarter and made you know obviously strategic initiatives and push for that. Reason being is that we're actually seeing a gap in that service that you know majority of our clients, probably 60%-70% of our clients are entrepreneurs and they have their own enterprises, which is, they either lack the experience to work with more market-oriented sort of treasury management or money market type of funds, or they actually didn't have enough research ability to actually navigate through the mutual fund market. The reason being is that in the past, the treasury function pretty much served by the bank's products. You know, as the bank's products also shifting towards the NAV-based products, it actually lacks the you know, attraction in the past and the treasurers are forced to actually to screen through thousands of sort of money market funds or mutual fund, and no one is actually able to sort of transform the experience we have on the mutual fund research and capability, and also placing that with a very conveniently designed SaaS-based solution for these institutions. We actually use that as a strategic opportunity to actually expand this particular gap in terms of service in the market. As we understand, there's not much similar products in the market, and we'll actually be able to make pretty good progress. We gained about 250 new clients in the very first quarter. Seeing the latest data, this number is still accelerating. In terms of revenue contribution, it's probably going to take a while to shape up as it will accelerate. At the same time, the AUM, obviously in treasury-like funds, doesn't contribute to a lot of the revenue right away, but we're pretty confident to see that growth in the following few quarters. Yoyo, does that answer your first question? 哦，非常清楚。 我稍微补充一下，这个对于微笑私库对我们来讲是很有意义的，因为诺亚过去是一个to C端的业务，现在核心就是我们开始推进了To B的业务，也因为这个独特的市场环境的话，确实让我们在To B的业务上实现了比较快的增长。而且是前所未有的跟我们投的基金和我们发行的基金和这些基金所覆盖的这个基础资产深度地连接了。所以我们对这块业务还是比较有信心的。我们觉得，在这个比较危机的时刻吧，就是恰恰在这块业务的推动上，是效果比较好的，今年也是我们的一个重点。 对，Yoyo 再补充两个数据，我们现在一季度的公募产品活跃客户当中，企业机构客户占到170家，这个环比要增长33%，然后这个是一季度，其实我们差不多二月份开始推这个 campaign。那么接下来的话，我认为这一块其实会有更快的一个突破。而且是一个什么好处呢？它也是一个非常好的我们这个前线展业的工具。因为很多时候，我们跟客户个人的资产，其实有很多的一个服务需求，但是客户背后的企业呢，有的时候会缺乏一些 frequent visit 的一些原因，但是我们一旦跟他的企业需求链接起来，其实也是 open 了非常非常大的一些 potential 的 client group。 好的，明白，非常清楚。 OK. 感谢潘总。 Yoyo，对，没问题。Yoyo还有两个问题，第一个就是那个理财师人数啊，有一个小幅的变化吧，我们这个到2022年一季度底呢，还是一千两百八十亿啊，所以这个其实同比还是有点，可能还有点上升吧，环比并没有特别大的一个下降。第三个问题是有关这个疫情对于线下展业的情况有没有影响呢？王总您看这个您要不先分享一下，我再来补充。 我觉得就是我们还是希望就是在危机中看到机会吧。一个就是在人才端就是坚定地要腾笼换鸟。本来就是以前的话是非标的这些理财师转，转标以后，我们还是以稳定为核心的，然后现在我们觉得就是要减，提升人才密度，减少这个惯性思维，所以在人的这个调整上，对我们来讲还是相当重要的。这个肯定是一个自然的淘汰的过程，它没有说好像特别怎么样哈。第二个呢，就是我觉得在疫情的这个过程中，疫情可能是一个相对还要持续比较长时间的。无论是轻盈还是未来的共存，它总是会，我个人觉得判断哈还会比较长的时间。所以我们的优势呢，就是诺亚过去还是有非常多的存量客户，因为非标转标的过程中就流失了哈，中金也挖了不少我们客户，我们最重要的就是怎么把挽回这些高净值客户，他跟我们并不陌生，但是他们在今天经历这个过程，他们会发现我们很多战略是比较领先的，不管是在产品和客户资产配置方面。所以现在挽回的流失客户的量非常大，而这些挽回的流失客户呢，也给了我们一个空间，就是我们可以招到好的人才，然后他们能够服务这些存量的客户。因为这个过去的话，可能有些理财师走的话，客户就带走了，但是恰恰在这个过程中的话，因为有疫情嘛，大家开发新客户都比较难，所以在这个点上我们觉得也是具有成效的。那第四点呢，就是关于这个市场，我们是通过在线，然后各种方式哈，从一千人的会到两百人的会，到一百人，到二十个人的这个在线会，不遗余力地创造一些场景，跟我们的客户能够互动，然后能够通过一些简单的产品，能够挽回他们。现在效果总体我们认为还是非常好的，所以对二季度我们还是充满信心的。好，谢谢。好的，明白。 Good, good. Yoyo, first question first point is that we actually did the shift from I guess immediately following the transformation in 2019. You know obviously the priority was to stabilize the team. The strategy was to retain as much talent as we could. Then we started off you know once the transformation has been completed in 2021, we started off you know our transformation in terms of talent from talent retention only to talent upgrading. The mild change on number of RMs is really the result of how we actually been screening the better RMs and we're trying to hire a lot more advanced or if you will, you know a lot more experienced and excellent RMs to the talent roster. It's really upgrading in the talent perspective. Second point is also we actually it's interesting that we're seeing quite a bit of repatriating clients, if you will, that you know during the so-called non-standard type of product era, you know some clients may probably go to another institution at the same time as it brings with them the professional that serves with them. Now we're seeing quite a bit of repatriating clients because you know after all the transformation as well as the market condition, they continue to realize that Noah has been very transparent at the same time being pretty professional about our product selection and also product recommendation. With repatriation of this group of clients, we're also seeing the inflow of the relationship managers. 好的，非常清楚，感谢汪总、潘总。Thank you。 好，谢谢 Yoyo。 Thank you. Your next question comes from Peter Zhang from JP Morgan. Please go ahead. Thanks for giving me the opportunity to ask this question. I am Peter Zhang from JP Morgan. I wish to check with management if we have the latest update on our Hong Kong listing. Thank you. Thank you, Peter. You know, obviously with the pressure that's being placed on Chinese FPIs, especially the so-called pre-delisting prices, Noah, you know, similar as other Chinese FPIs have been exploring other necessary options. You know, Hong Kong listing obviously is one of the pretty apparent option, but at this stage of time, I'm just, I don't have any liberty to comment on that. Hopefully you understand, Peter. Okay, thank you. Thank you. Thanks, Peter. This concludes our question and answer session. I would like to turn the conference back over to your speakers for closing remarks. Okay. Thank you, and thank you, everyone, for the investors, analysts, and thanks for your time. Yeah。 谢谢大家。Bye bye。 The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.