Good day, welcome to the Noah Holdings Second Quarter 2022 Earnings Conference Call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ms. Jingbo Wang, CEO of Noah Holdings. Please go ahead. Thank you. 今天那电话会议的议程，我想首先分享一下我对宏观的看法，再介绍一下诺亚2022年第二季度的整体业绩，几大板块业务的发展情况以及我们的策略。接下来请潘青为大家介绍季度的财务信息。最后是互动问答。过去两年，因为疫情导致的全球实体经济去杠杆、去产能，加之俄乌战争的影响加剧了全球的通胀。2022年上半年，中国持续的疫情防控政策对包括珠江三角洲、长江三角洲的核心区的经济增长带来了前所未有的挑战。一方面供给端遭遇冲击，需求端明显收缩，另一方面预期软弱，二季度经济探底，市场触底。诺亚作为总部在上海的公司，在二季度三分之二的时间有超过1,800名员工被封控在家。我们观察到高净值家庭和民营企业的投资情绪发生了显著的变化，提升资产的安全性和流动性是客户的第一诉求。另外一方面，中国民营企业和高净值家庭的全球配置需求有明显的提升。2022年下半年，诺亚对于客户需求的判断和资产配置建议是稳字当头，适者生存。中国民营企业和高净值家庭开启双循环。我们建议客户启动全球资产配置再平衡，中国和海外配置比例为100比100。国内资产配置于中国市场，海外资产配置于国际市场。中国民营企业在海外市场建立新的品牌或者国际总部，完全独立地耕耘国际市场。国内总部和国际总部分别承担不同的职能。假以时日，中国民营企业和高净值家庭的被动全球化过程中可能会取得很大的进展，甚至会有令人意想不到的惊喜。诺亚创业18年，经历了多次市场周期，也幸运地建议客户提前退出了诸如内房债等资产，尽可能保护了客户的资产安全。诺亚2010年在纽交所上市，2022年7月13日成功在香港二次上市，也已经宣布开启了向双重主要上市的转移。今天在这里诚挚地感谢在香港二次上市过程中给予了我们大力支持的股东和投资人。在动荡的市场环境下，我们的国际发售超募5.9倍，香港公开发售超募3.3倍，其中长线价值投资人超募2.6倍，引入了多种类型的新机构股东。在低迷的市场环境下非常地不易。本月初刚开完董事会，批准了诺亚长期的年度分红机制。我们计划今后每年的非通用准则净利润拿出不低于10%来派息，旨在稳定持续地回报股东。 I will first share my views on the macro environment, then introduce the overall performance of Noah in the second quarter of 2022, the development of our major business segments and our overall strategy. Next, let's invite our group CFO Pan Qing to introduce the quarterly financial information followed by our Q&A. In the past two years, the global real economy deleveraging and capacity reduction caused by the epidemic and the impact of the Russia-Ukraine war has exacerbated global inflation. In the first half of 2022, China's continuous epidemic prevention and control policy have brought unprecedented challenges to the economic growth of core regions, including the Pearl River Delta and the Yangtze River Delta. On one hand, the supply side has been impacted and the demand side has contracted significantly. On the other hand, expectations are weakening. The economy reached the bottom and the market bottomed out in the second quarter. As a company headquartered in Shanghai, more than 1,800 employees experienced a lockdown at home in the second quarter. We observed that the investment sentiment of high net worth families and private enterprise clients has changed significantly. Improving the safety and liquidity of assets is the first demand of clients. At the same time, the global allocation needs of Chinese private enterprises and high net worth families have been significantly improved. Noah's judgments on client demand and asset allocation suggestions are stability first, survival of the fittest, and domestic international dual circulation for Chinese enterprises and high net worth families. We suggest that clients start a rebalancing of their global asset allocation. The ratio of Chinese and overseas asset allocation is 100- 100. Domestic assets are allocated to the Chinese market and overseas assets are allocated to the international market. Chinese private enterprises to establish new brands or international headquarters in the overseas market and cultivate the international market completely independently. Domestic headquarters and international headquarters assume different functions. Over time, China's private enterprises and high net worth families may make great progress in the process of passive globalization and even have unexpected surprises. Noah has been in business for 18 years and has experienced many market cycles. We're also lucky that we have suggested clients to withdraw from assets such as domestic real estate developers, banks in advance, and protected the assets of clients as much as possible. Noah was listed on the New York Stock Exchange in 2010 and successfully listed in Hong Kong on July 13th, 2022. We have also announced the start of the conversion to dual primary listing. Today, I hereby sincerely thank the shareholders and investors who give us great support in the process of Hong Kong's secondary listing. Under the turbulent market environment, our global offering was 5.9 times oversubscribed. The Hong Kong public offering was 3.3 times oversubscribed. Specifically, we saw long-term value investors 2.6 times oversubscribed. During the secondary listing offering, we received support from many types of new institutional shareholders, which is quite an investor onboarding achievement in the sluggish market environment. At the beginning of this month, the board of directors approved Noah's long-term annual dividend mechanism. We plan to pay dividends of no less than 10% of the annual non-GAAP net income in the future, aiming to deliver stable and sustainable return to shareholders. 2022年二季度，诺亚实现了销售净收入7.4亿元人民币，归属股东非GAAP净利润为3.6亿元人民币，同比增长5.4%，环比增长13.3%。截止6月30日，已累计完成利润6.7亿，达成了全年盈利指引的46%。在核心业务数据方面，二季度募集量为193.2亿元人民币，同比下降22.7%，环比增长28.8%。其中私募股权募集量为39.2亿，环比增长23.2%，公募基金为122亿，同比增长30%，环比大增71.4%。这个也让我们感到欣慰。虽然市场低迷，客户投资信心不足，但仍然愿意把更大的钱包份额让诺亚进行管理。这个季度受市场环境和投资情绪的影响，整体居民储蓄率大幅上升，私募证券基金募集量同比、环比均大幅下降。高净值和超高净值客户是我们的核心客户群。诺亚的Diamond和Black Card数一直稳步增长。截止2022年6月30日，诺亚Diamond客户达到了6,774位，同比增长6.1%，Black Card客户达到了1,786位，同比增长20.5%。我们持续聚焦钻黑客户的同时，也在着力蝴蝶和服务好浅钻和浅黑客户，以及挽回流失客户，唤醒沉睡客户。在挽回流失和休眠客户方面今年取得了很大的进展。截止8月19日，我们今年已经累计挽回了714位流失客户。 In the second quarter of 2022, Noah achieved net revenues of CNY 738 million and a non-GAAP net income attributable to shareholders of CNY 355 million, up 5.4% year-on-year and 13.3% quarter-on-quarter. As of June 30th, the accumulated non-GAAP net income was CNY 669 million, reaching 46% of the annual guidance. In terms of core business data, the transaction value of the second quarter was CNY 19.3 billion, a year-on-year decrease of 22.7% and a quarter-on-quarter increase of 28.8%. Among them, the transaction value of private equity was CNY 3.9 billion, an increase of 23.2% quarter-on-quarter. Mutual funds were CNY 12.2 billion, up 30% year-on-year, and 71.4% quarter-on-quarter. We're gratified by the outcome that although clients have insufficient investment confidence amid sluggish markets, they're still willing to let Noah manage a larger share of their wallets. In this quarter, affected by the market environment and investment sentiment, the overall household savings rate has risen by a large margin. Our transaction value of private secondary funds dropped significantly year-on-year and quarter-on-quarter. High-net-worth and ultra-high-net-worth clients are our core client group, and Noah's Diamond and Black Card clients have been growing steadily. As of June 30th, 2022, Noah had 6,774 Diamond clients, which grew 6.1% year-on-year. The number of Black Card clients reached 1,786, with a year-on-year increase of 20.5%. While continuing to focus on Diamond and Black Card clients, we're also putting forth efforts on identifying and serving potential Diamond and Black Card clients, as well as recovering lost clients and reactivating dormant accounts. In terms of recovering lost clients and dormant clients, great progress has been made this year. As of August 19th, we have recovered 714 lost clients this year. 截止2022年6月30日，歌斐资产管理规模为1,554亿元人民币，受分配的影响，较上季度末微降了0.4%。其中私募股权的管理规模稳定在1,320亿元人民币。公开市场产品的管理规模比上季度末增长3%，达到了107亿。在房地产基金方面，同样主要是由美国出租公寓基金和境内两栋商业核心区的写字楼基金构成。歌斐的海外资产规模同比上升6.2%，环比上升1.5%，达到了296亿元人民币。私募股权、公开市场、房地产各自取得了1.1%、6.4%和2%的环比增长。 一级市场方面，歌斐二季度完成了四个项目的退出，S Fund六期在持续募集中，且随着二级市场估值逐步回归中枢，S Fund六期的投资人也进入了更加安全的估值边界。歌斐的私募股权基金在二季度完成了26亿元人民币的募集。歌斐的目标策略产品稳健、平衡、积极三个类型的策略，虽然2022年市场环境严峻，但截止8月12日，今年的收益分别为0.4%、负的3.3%和负的4.7%，而同期的沪深三百、中证八百分别为负的15.2%和负的14.6%。歌斐目标策略基金的表现远优于同期可比指数，有效地控制了波动跟回撤，发挥了财富抵仓的作用。同时，歌斐也在积极孵化不同策略互为补充的股票直投产品。在香港二级上市后，我们开始在香港建立更大规模的国际私人银行队伍和全球筛选的产品团队，以适应客户的全球化服务和配置需求。诺亚的新加坡办公室也开始推进新的业务计划。歌斐国际也开始构建新的研究能力，丰富国际产品线，以满足客户的需求。As of June 30th, 2022, Gopher's AUM was RMB 155.4 billion, which slightly decreased by 0.4% compared with the end of the previous quarter due to more distribution. Among them, the AUM of private equity stabilized at CNY 132 billion, and public securities increased by 3% over the end of last quarter, reaching CNY 10.7 billion. In terms of Gopher's real estate AUM, it is mainly composed of the U.S. rental apartment funds and the office buildings located in two commercial core areas in China. Gopher's overseas AUM increased by 6.2% year-on-year and 1.5% quarter-on-quarter, reaching CNY 29.6 billion, with private equity, public securities and real estate achieved 1.1%, 6.4%, and 2% quarter-on-quarter growth respectively. In terms of primary market, Gopher completed the exit of four projects in the second quarter. The S Fund VI of secondary fund of S Fund continues to raise capital and with the gradual return of the secondary market valuation, the investment of S Fund has entered a safer valuation margin. Gopher's private equity funds raised RMB 2.6 billion in the second quarter. Gopher's target strategy products have three types of strategies, conservative, balanced and positive. Although the market environment in 2022 remains severe, as of August 12th, 2022, the performances of the three strategies were 0.4%, -3.3% and -4.7% respectively, while that of CSI300 and CSI800 were -15.2% and -14.6% respectively in the same period. The performances of Gopher's targeted strategy funds have been far better than that of the comparable indices, effectively controlling volatility and pullbacks and playing the role of wealth stabilizer. At the same time, Gopher is also actively incubating different strategies and complementary equity direct investment products. After the secondary listing in Hong Kong, we began to establish a larger international private banking team and a global product screening team in Hong Kong to meet the global asset allocation and service needs of clients. Now, our Singapore office also began to promote new business plans. Now, Gopher International has also started to build new research capabilities and enrich international product lines to meet clients' demand。诺亚控股集团的可持续发展委员会自2021年成立以来，一直践行可持续发展为诺亚带来长效动能的价值主张，进行了定期和不定期的会议，推动在投资决策和产品筛选的过程中将相关ESG议题纳入决策的考量，同时提升客户和业务合作伙伴端的对ESG的认知，协助制定解决方案，并且定期向董事会和管理层进行汇报。过去一年，我们ESG普及工作是卓有成效的。我们对钻黑客户进行了2021年的ESG调研，结果显示ESG在高净值客户中的普及度增长了35%，达到80%。客户的投资意愿提高了约3.5倍，达到50%。歌斐资产在今年五月给合作资产管理人发放了ESG问卷，结果显示头部资产管理人的ESG行为在过去一年更加凸显，绝大多数计划在未来一到三年提升ESG相关投资产品的比例。有超过70%的机构已经开始了实践。同时，我们不断地丰富着境内外ESG线上投资产品的专区，对理财师进行持续的ESG专项投资顾问培训，在国内外公众号中植入更多的ESG资讯和产品的信息。诺亚和歌斐资产责无旁贷，会继续发挥我们的圈层影响力，提升ESG产品的研发，提升集团的可持续运营。Since its establishment in 2021, the Sustainable Development Committee of Noah Holdings has been practicing the value proposition that sustainable development brings long-term kinetic energy to Noah. It has held regular and irregular meetings to promote the inclusion of relevant ESG issues in the decision-making of investment and product selection, to improve the ESG awareness of clients and business partners, and regularly report to the board of directors and senior management. In the past year, our ESG promotion work was fruitful. We conducted an ESG survey on the Black Card and Diamond Card clients in 2021, and the results showed that the popularity of ESG among high net worth clients increased by 35% and reached 80%. Our clients' ESG investment intention increased by about 3.5 x to 50%. Gopher also issued an ESG questionnaire to its investment partners in May this year. The results show that ESG behavior of the leading asset managers has become more prominent in the past year. Most of them plan to increase the proportion of ESG related investment products in the next one to three years, and more than 70% of the institutions have started to practice. At the same time, we have constantly enriched the product offering of our dedicated online ESG investment sections, both onshore and offshore, conducted continuous ESG special investment consultancy training for our relationship managers and implanted more ESG information and product information in internal and external media platforms. Noah and Gopher are duty-bound to continue to exert our circle influence, improve this research and development of ESG products, and enhance the sustainable operation of the group. Thank you. Sonia. Finally, I would like to say that the future is bright and the road is winding. There was an article entitled Name is Strategy, which said that the name of a company often contains a certain strategy. First, it contains a certain vision, planning and intention. On the other hand, vision, planning, and intention will reversely shape our behavior. Noah's name is taken from the Bible. First of all, Noah was a righteous man. He chose to live an honest and upright life, regardless of the behavior of people around him. He insisted on giving trust and was full of awe for life. His life was full of possible risks. He took precautions and built the ark with gopher wood, making full preparations for the possible flood. Noah was full of courage, forward-looking, and correct judgment. The ark carried pairs of healthy species. Noah and them sailed to the future on the ark. This is the meaning of Noah's Ark, and it seems to be a metaphor for Noah Holdings' own mission, vision, and values. In 2022, we deeply feel that we have a great responsibility to our clients. The greater the macro uncertainty, the more we need to think calmly and make mature judgments. We believe that beyond wealth lies the wisdom of life. Noah devote ourselves to creating legacy for clients for generations to come. Next, let's invite CFO Pan Qing to introduce the financial data of this quarter in detail. Thank you. Thank you. Thank you, Chairlady. Hello dear investors and analysts, including our new shareholders who supported our secondary listing in Hong Kong. Following the impact of major events such as geopolitical conflicts in the first quarter, macro environment in the second quarter continued to be under pressure. As of the end of July 2022, the U.S. Federal Reserve has raised interest rates by accumulated 225 basis points. In China, prolonged COVID-19 lockdowns led to only a 0.4% GDP growth in the second quarter. Investor sentiment hasn't fully recovered, evidenced by distribution value of mutual fund products in the country decreased by 25.8% year-over-year in the quarter, and to a whopping 57.8% year-over-year for the first half of the year. As well as the savings rate has risen to 34% as of the end of second quarter, compared to only roughly 30% pre-pandemic. At the same time, we're mindful of the tensions between the two largest economies in the world. In July, Noah successfully completed the secondary listing in Hong Kong, partially mitigating the ADR delisting risk. This month, we have also announced to pursue a voluntary conversion to dual primary listing status in the U.S. and Hong Kong, hoping to further resolve delisting pressure. We also installed a long-term scheme to pay at least 10% of our non-GAAP net income as annual dividends to shareholders starting from April next year. Now please let me walk you through more detailed results of the second quarter. Non-GAAP net income was RMB 355 million for the quarter, up by 0.4% year-over-year, and 13.3% quarter-over-quarter. For the first half, it was RMB 669 million, representing 46.1% of our full year non-GAAP net income guidance. Income from operations of the quarter was RMB 323 million, a 3.6% decrease year-over-year, but a 3% growth over the last quarter, mainly because of the decreased net revenues for the quarter, but partially offset by lower expenses such as general administrative expenses, marketing and spending, client activities, as well as more government grants received in the second quarter due to the COVID-19 lockdown in parts of China, especially in Shanghai. Consequently, the operating margin was 43.8%, up 17.4% year-over-year and 11% quarter-over-quarter. With the orderly resumption of work in major domestic economic regions since June, it is encouraging to witness a recovery in transaction value as expected, which recorded a 28.8% increase over the last quarter from CNY 15 billion to CNY 19.3 billion. Compared to the last year, still down 22%, especially when we had a really strong second quarter last year. Noticeably, the transaction value of mutual fund products continued to grow against the market tide, with a significant increase of 71.4% quarter-over-quarter and a 30% year-over-year to CNY 12.2 billion. In the second quarter, the total number of mutual fund active clients was 11,248. The transaction value of private equity increased 23.2% over the last quarter to CNY 3.9 billion, but down 39% year-over-year, representing a quarterly recovery that had been expected, while the transaction value of PE products saw a decrease of 40% quarter-over-quarter and 68.9% year-over-year due to the volatile market environment and less investor interest in the asset class as expected. Benefiting from continuous strategic investments in our core client group, Diamond and Black Card clients grew to 8,560, up 3.3% quarter-over-quarter and 8.8% year-over-year, among which the number of Black Card clients increased by 20% year-over-year. We have also been making efforts on reactivating dormant accounts and retrieving lost accounts due to the transformation to standardized products. Our client-centric philosophy will continue to be a key strategy in the long run. It's also worth mentioning that among active clients, the number of clients who purchased insurance products during the quarter was 1,009, 16x more than the first quarter of 2022, and 3x more than the same period last year, as we resumed the sales of certain products after resolving a temporary regulatory requirement in the first quarter this year. Net revenues of the quarter was RMB 738.1 million, down 17.9% and 7.2% quarter-over-quarter, mainly due to decreases in performance-based income. As the transaction value of private equity mutual fund and insurance products recovered in the quarter, our one-time commission more than doubled quarter-over-quarter to RMB 207 million, but still down 16.1% year-over-year due to less public securities distributed. Recurring service fees remained relatively stable at RMB 458.9 million, a decline of 7.9% year-over-year and 5.2% quarter-over-quarter, mainly due to NAV adjustments. Performance-based income dropped to RMB 25.9 million, down 78.8% and 85% quarter-over-quarter, primarily due to the lack of profitable exits from public securities. Net revenues from other service fees for the second quarter of 2022 were CNY 46.4 million, a 44% increase from the corresponding period in 2021, primarily due to more value-added services Noah offers to our high-net-worth clients since the Shanghai lockdown. Let me roll back and do a quick correction. When I mentioned the transaction value of private products saw a decrease of 40% quarter-over-quarter, it should be transaction value of private secondary products saw a decrease of 40%. Now the segmented results. As for our segmented results, net revenues from the wealth management segment were CNY 509 million, down 18.7% year-over-year and 12% quarter-over-quarter due to a slowdown in transaction value during the quarter. Net revenues from the asset management segments were RMB 210 million, down 17% year-over-year, but up 5% quarter-over-quarter. First, AUM was RMB 155.4 billion as of June 30th, 2022, slightly lower than RMB 156.1 billion at the end of first quarter due to more distributions and redemptions during the quarter. Moving on, the balance sheet. We remain in a healthy liquidity position as the current ratio stood at 3.2x. The debt-to-asset ratio was 19.4, still with no interest-bearing debt on our book. By the end of second quarter, we had RMB 3.6 billion in cash. It should also be noted that net proceeds of the Hong Kong secondary listing have not been included yet until the next quarter. Supported by this healthy balance sheet and continuous strong cash flow generating capabilities. We announced that the board had approved and adopted an annual dividend policy on August tenth. In normal circumstances, the annual dividends to be declared and distributed in each calendar year shall be, in principle, no less than 10% of the group's non-GAAP net income attributable to the shareholders of the preceding financial year as reported in the company's audited financial statements, which aims to provide stable and sustainable returns to the shareholders of the company. The dividend will be subject to shareholders' approval at the AGM no later than the end of June each year. Once approved, the dividend shall be declared by the company and paid out to the shareholders. Being confronted with the current complex international geopolitical environment, the board had approved a motion to pursue the voluntary conversion to dual primary listing on Hong Kong Exchange, which will further eliminate the risk of U.S. listing, U.S. delisting. We want to thank the investors who supported the Hong Kong secondary listing and hope to provide the market with positive outcome in the coming months. Our CIO office also published the investment outlook for the second half of 2022, reiterating the protection before growth strategy for our clients. Meanwhile, we suggest our clients to initiate investment strategic layouts both onshore and offshore, also known as dual circulation. We are mindful of changing and challenging market scenarios, and we'll adjust our strategy accordingly. Again, we sincerely thank our shareholders for ongoing trust and support, and strive to create long-term value for our clients and for our shareholders. Thank you everyone for listening, and I will now open the floor for questions. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're 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'll pause momentarily to assemble our roster. The first question will come from Yi Zhao with Morgan Stanley. Please go ahead. 管理层早上好，我有两个问题想请教。第一个是关于这个客户基础，我们看到在这个二季度持续比较波动的市场环境下，咱们还是取得了整个钻黑客户环比依然一个稳定的增长。想请教一下背后有哪些主要的驱动力？然后咱们对今年或者是明年，这个在客户数量上有没有哪些增长的目标或者计划？然后第二个问题是关于这个理财师的队伍，因为我们看到它这个高净值客户数量增长，其实同时也需要一个相应数量的这个理财师队伍的规模的增长来保持咱们服务的一个强度和客户粘性。所以整体看到的话，理财师的数量在近两年一直在一千二到一千三百人间徘徊，然后最近两个季度环比还是略有下降。就想请教下咱们在去年完成了这个薪酬体制，还有KPI的改革之后，咱们理财师整个队伍的这个适应程度如何，有哪些主要的反馈，然后咱们对未来两到三年理财师队伍有没有哪些这个数量上的目标。Maybe I'll just briefly translate. The first question is about the client base. We're delighted to see, given under a very volatile market environment, we're still achieving a steady growth in the number of key clients in Black Card and Diamond Card. Just wondering management if we can share any of the driver behind, and do we have any target or plan for the client number growth this year or next year? Second question is on the number of relationship managers, which is we think it's important to, you know, keep a high touch service. We see the numbers have kind of fluctuating between 1,200 and 1,300 in the last two years and with some slight decline in the past two months to two quarters. Wonder how's the team's reaction or acceptance to the newly completed restructuring on the compensation the KPI system, and do we have any target for the next two to three years? Thank you. 好的，谢谢洪总。那个王总要发言呢。 因为我觉得这个经营环境还是比较复杂，特别是这些风控政策让我们在线上比较难以直接跟客户见面，跟触达客户。所以我觉得客户的增长，特别是这样黑卡的发展，主要还是老客户的升级。我们也提出来就是要近者悦远者来，如果我们把存量客户服务好，那么就有很多客户会给我们转介绍，并且会继续在我们这儿加仓。我觉得这个策略在今年，特别是在疫情风控期间，还是卓有成效的，因为比较难以建立陌生客户的信任，那这是我一个主要的原因吧，这是我的看法。那第二个关于理财师数量增长的预期的话，我们还是希望能够保持增长的，但是重要的就是要乘龙换鸟，因为在这个过程中，我们还是非常积极地在招聘，包括引入优秀的应届毕业生，这个对我们来讲，这个艰难的时刻，如果我们能够坚持招优秀的，我们也有一个项目叫招优进诺，就是优秀的理财师能够来到我们这儿，我们能够乘龙换鸟，能够让我们的队伍更年轻，品质更高，那客户的满意度也会提升。所以我们对于未来理财师，我们还是处于一个保持可能调整以后的增长状态。另外我们也会增加在香港跟新加坡的理财师的队伍，真正建立起我们国际的财管中心。那么在海外的话，这个队伍应该是增长速度会更加快。好，我先说到这。 王总，我翻译，然后再补充哈。 好。 Okay. To your first question, we believe that because of the complex situation, especially faced the lockdown. It has been quite difficult to get to the client scenario, especially in the offline situation. What we have been doing is really to serve and make the existing client base increase their satisfactory level. The majority of the growth achieved in the Diamond Black Card client tier is from the existing clients when they actually made more investments and upgrade internally. At the same time, the strategy of making the existing client happy and they are more willing to actually bring their clients and make referrals. We actually have another program called MGM, Member Get Member, which have shown actually very positive progress as well. It seems that the strategy has been working. Just a little bit of supplement to what Chairlady has mentioned. Another thing is that we have been continuously investing and upgrading our branding as well as the benefit system that's associated with the Black Card and Diamond Card members. In the past, it's mostly probably just, you know, some rebates or some points that's associated with benefits. This time we actually added a lot more benefits in terms of free classes, free lessons they can get in on investments as well as some other educational sessions which actually being very welcomed by the clients. Basically, internal system during the lockdown, we actually had more time to invest as well as upgrade that system to actually increase the satisfaction level of the clients greatly. In terms of the relationship managers team, obviously we're still eyeing for growth. I think the strategy for this year is mainly for making room for better talent to come in and to upgrade the talent mix, especially, we're investing more heavily towards you know, fresh graduates from good schools. Want to make sure actually we have a younger pipeline for the future RMs team. At the same time, we're also actually having another program called 招优进诺, which means that we're actually targeting to recruit good veterans into Noah. The overall strategy undoubtedly will be towards the growth of our team. At the same time, we also make sure that the quality is well selected. We're also actually planning to invest quite heavily in terms of teams that's in Hong Kong and Singapore. We'll probably see a greater growth speed in that team in these two places. Yi Zhao, do we have your question? Yes, thank you very much. Same here. Thank you. Okay. Thank you. Again, if you have a question, please press star then one. Our next question will come from Peter Zhang with JPMorgan. Please go ahead. Hi. I will do the translation. My question is about the second half outlook because we noticed the management maintained our non-GAAP focus. Which will translate to a quite strong growth in second half non-GAAP profit growth. We are wondering what will be the key driver and what's the, say, W and T sales outlook in second half. Thanks. Okay. Thank you, Peter. Appreciate your question. Yeah, we actually are, you know, relatively happy, especially with the challenges that we faced in the second quarter, especially one of our main cities, Shanghai, which is also the headquarters of Noah, faced two months of lockdown and still be able to actually obtain a 46% progress. Actually, the non-GAAP net income actually has grown over both last quarter as well as year-over-year. We believe that we still are on track to make the full year guidance, especially, you know, for the industry seasonality. Majority of the big so-called client conferences and marketing events usually occur in the second half of the year. For example, we have Diamond and Black Card, which are both the end of year as well as beginning of year major marketing points as well as the main event of Black Card Gala every year usually takes place in November and December. We still believe that, you know, good wave of marketing events as well as the client conference are waiting to happen. Obviously, you know, we are prudently optimistic about, you know, how the client sentiment will be before the, you know, big conference in probably October and November. We believe that no matter what the outcome is, once our clients sentiment actually see some sort of level of certainty, they will definitely have a higher sentiment of making, you know, especially investments, and probably easier for them to make investment decisions. That's primarily the reason behind. 看王总有什么要补充的吗？ 就是有关我们下半年这个盈利指引跟经营状况。 市场环境还是严峻的，但是这个也让我们内部的话也激发了这个动能嘛。我觉得每次困难的时候，其实也是一个公司体现管理能力和推动这个商检的过程，就是皇者生存。以前的话，其实诺亚总体也没有那么激进，在市场上相比其他的一些机构哈。但是呢，我们有我们自己的节奏，那我觉得现在的话，其实对我们来讲也是一个非常重要的能够练内功的机会吧。我也在跟我们的核心团队沟通，就是碰到目前这个市场环境，大家觉得这个最大的挑战是什么？一个是内部的管理，一个是市场，一个是竞争。我觉得我们团队大家都认为我们最重要的还是提升我们的内部管理，要降本增效，然后才是市场，最后才是竞争。我觉得这个对我们来讲是更好的，更觉得comfortable的时候，所以我也不敢说我们一定可以做得非常好，但是我们团队认为我们还值得努力，因为还有两个季度的时间，我们还是想要努力地来就是冲一下的，大概是这样一个分享吧。 好，谢谢。现在有OK吗？回到你的问题了哈。 Again, if you have a question, please press star then one. This will conclude our question and answer session. I would like to turn the conference back over to Qing Pan for any closing remarks. Please go ahead. Thank you operator, and thank you very much our investor analyst, we have, you know, two quarters to go, and we're striving to get, you know, positive results for the market. Thank you very much for your time. The conference is now concluded. Thank you. Thank you for attending today's presentation. You may now disconnect. OK，那下次再见。