Operator: You may also submit questions via the webcast. Please note, today’s event is being recorded. I would now like to turn the conference over to Doreen Chew with investor relations. Please go ahead.

Doreen Chew, Investor Relations, Noah Holdings: Thank you. Good morning and good evening, everyone. Welcome to Noah’s second quarter 2026 earnings conference call. Joining me on the call today are Ms. Jingbo Wang, co-founder and Chairlady, Mr. Sanda Yin, co-founder, Director and CEO, Mr. Grant Pan, CFO, and Mr. Jason Wu, Deputy 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 to 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 Stock Exchange of Hong Kong Limited.

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

Operator: Hello, this is the operator. Your line is open. Are you perhaps muted?

Doreen Chew, Investor Relations, Noah Holdings: Good morning, everyone. Thank you for joining Noah Holdings’ second quarter 2026 earnings call. As we enter the second quarter, Noah’s transformation reached a new stage. On our first quarter earnings call, we said that Q1 represented the beginning of the validation of Noah’s new operating model. After the second quarter, I believe we can take that conclusion one step further. Revenues associated with our legacy model are being phased out in an ordinary manner. While our new operating model is not only being validated, but is also beginning to generate that revenue, asset growth and profit. Most importantly, our AI Wealth Management Department and new AI-enabled front office operating model we have been developing over the past year has now established its first meaningful proof points in Singapore. This quarter, we observed three developments that have become increasingly clear.

First, Singapore has proved the first meaningful validation of our AI Wealth Management Department model in approximately 10 months, and the business achieved monthly profitability in July. Second, performance-based income reached RMB 238 million in the first half of the year, demonstrating how the global investment capabilities we have built over many years are increasingly translating into earnings. Third, while our total employee headcount declined 17% year-over-year, USD AUM increased by 11.7%. More importantly, our overseas RM headcount declined by 36.2% year-over-year, while overseas assets continued to grow. This suggests that we are beginning to decouple asset growth from RM headcount growth, a relationship that has historically been highly linear in traditional wealth management. This is also the most important message we would like to communicate to the market today. For Noah, AI is no longer simply about improving efficiency or reducing costs.

It is beginning to change how we organize our front office, how we serve clients, and how we expand globally. Today, I will discuss our financial performance, our Mainland China business, our international business, and our key priorities for the second half of the year.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 好，第一个方面是财务表现方面。在第二季度，集团实现净收入人民币6.2亿元，经营利润人民币2.16亿元，同比增长34%，经营利润率34.8%。Non-GAAP归属于诺亚的净利润人民币2.38亿元，同比增长25.9%，环比增长77.8%。上半年净收入人民币12.46亿元，同比增长0.1%，经营利润人民币4.52亿元，同比增长30.3%，经营利润率36.3%，同比提升8.4个百分点。Non-GAAP净利润人民币3.72亿元，同比增长3.9%。本季度也标志着诺亚自上市以来连续第63个季度实现Non-GAAP的盈利。收入总量与去年基本持平，但收入结构和经营效率已经发生了明显的变化。我想把这个变化再进一步地阐述一下。第一个方面，旧模式相关收入正在有序地退出。上半年，募集费净收入同比下降36%，其中主要是保障类的产品下降53.8%。这部分收缩是我们主动进行的战略选择。中国大陆和国际业务的具体情况我后面会分别来说明。另一方面，投资能力相关收入正在兑现。上半年业绩报酬，也就是Fund-Based Carry净收入达到人民币2.38亿元，同比增长364%。投资类产品募集费同比增长13.4%，投资收益人民币3,979万元，去年同期为亏损。同时，运营效率持续地提高。上半年经营成本与费用同比下降11.6%，其中人力成本同比下降12.7%。这些数字背后有成本纪律和组织精简的贡献。但我们认为更值得关注的是诺亚正在开始用一种更轻、更数字化、更依赖平台能力，而不是单纯依赖人数扩张的经营方式。这是我们过去几个季度持续投入AI以后开始看到的结构性的变化。

Doreen Chew, Investor Relations, Noah Holdings: In the second quarter, we generated net revenue of RMB 620 million. Operating income was RMB 216 million, up 34% year-over-year, with an operating margin of 34.8%. Non-GAAP net income attributable to Noah was RMB 238 million, up 25.9% year-over-year, and 77.8% quarter-over-quarter. For the first half of the year, net revenues were RMB 1.25 billion, broadly flat year-over-year. Operating income reached RMB 452 million, up 30.3% year-over-year, with an operating margin of 36.3%, representing an improvement of 8.4 percentage points from the same period last year. Non-GAAP net income was RMB 372 million, up 3.9% year-over-year. This quarter also marked Noah’s 63rd consecutive quarter of Non-GAAP profitability since our IPO. While total revenue remained quarterly stable compared with last year, the composition of our revenue and our operating efficiency have changed meaningfully.

I’d like to explain this change clearly. On one hand, revenues associated with the legacy model are being phased out in an ordinary manner. Net distribution income declined 36% year-over-year in the first half, including a 53.8% decline in insurance-related products. This contraction reflects deliberate strategic choices we have made. I will discuss the Mainland China and international business separately in more details later. On the other hand, revenues associated with our investment capabilities are increasingly being realized. Net performance-based income, or what we call Carry, reached RMB 238 million in the first half, up 364% year-over-year. Distribution income from investment products increased 13.4%. Investment income was RMB 39.79 million, compared with a loss in the same period last year. At the same time, operating efficiency continued to improve.

Operating costs and expenses declined 11.6% year-over-year in the first half, including a 12.7% reduction in personnel costs. These improvements reflect both disciplined cost management and organizational streamlining. More importantly, we believe that they reflect a structural change in how Noah is beginning to operate. We are now increasingly operating with a leaner, more digitalized model that relies more on platform capabilities and less on simply adding headcount. This is one of the structural outcomes we are beginning to see after several quarters of sustained investment in AI.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 我们对利润结构的看法是清晰的。转型期的利润由Carry来支持，与成本纪律来守住。而未来经营性的收入真正能够恢复增长，要依靠新的增长引擎并网。其中AI财富管理部就是我们正在重点验证的新的增长引擎之一，这是下半年管理层最重要的核心工作之一。我们维持一季度业绩会上的判断，全年经营利润率保持在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。

Doreen Chew, Investor Relations, Noah Holdings: Our view of the earning structure is clear. During the transformation period, carry realization and cost discipline provide support for profitability. For recurring revenues to return to sustainable growth, new growth engines must come online. The AI Wealth Management Department is one of new growth engines we are now actively validating. This will be one of management’s most important priorities in the second half of the year. We maintain the outlook we provide on our first quarter earnings call. We expect our full year operating margin to remain at a healthy level above 30%, while quarterly results may naturally fluctuate depending on product mix and the timing of expenses.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 关于carry，carry的话绝对不是一次性的这种收入，而是一套长期积累、可以持续滚动产生的系统的能力。我们的底层运作很清晰，就是三层结构。第一层做全球顶级基金的LP，获得最前沿的产业视野和资产的信息。第二层通过母基金进一步放大信息网络，观察全球优秀投资机构的集体选择。第三层，通过跟投和直投，把前两层积累的信息优势转化为回报更高、集中度更高的carry的来源。这三层结构构成了我们滚动发行的产品线。不同年份设立的基金处于不同的生命周期，持续有早期基金进入收获的阶段，使得carry具备滚动兑现的基础，而不是依赖单一项目的偶发性的收入。另一方面，AI数据能力正在进一步地强化这套投资系统。资产端，我们较早地布局了全球AI价值链中的核心资产，目前很多资产仍处于价值释放的早中期。我们穿透近60只子基金，通过机构化的数据体系和交叉的验证，观察优秀的GP共同投资什么，持续在加仓什么，以及资产和产业趋势正在向哪里集中。在客户端，AI开始帮助我们解决另一个非常重要的一个问题，就不仅是选对产品，也要选对客户。在合适的时间把合适的产品匹配给合适的客户。投资判断、客户的理解与配置能力开始被数据连接在一起。数据积累得越深，判断就越精准，客户获得好的投资结果以后，复投和AUM就会提高，最终进一步地形成carry。这是我们希望建立的长期的飞轮。香港平台历史上已经累计实际支付carry 1.58亿美元。这个兑现能力是记录有可以来验证的。当然此类投资有其固有的周期，carry逐年也会有波动。我们不会对此做常态化的承诺。最新的进展会继续按照季度向大家披露。

Doreen Chew, Investor Relations, Noah Holdings: Carry is not a one-time outcome driven by luck. It is the result of a long-term, systematic investment capability that can continuously generate value across investment cycles. Our underlying model consists of three layers. The first layer is investing as an LP in leading global funds, which gives us exposure to the most advanced industry insights and investment opportunities. The second layer is using our fund of funds portfolio to broaden that information network and observe the collective investment decisions of leading global investment institutions. The third layer is co-investment and direct investment, where we convert the information advantage accumulated through the first two layers into more concentrated sources of potential return and carry. Together, these three layers form the foundation of our continuously evolving product portfolio. Funds established in different vintages are at different stages of their life cycles.

As earlier funds progressively enter their harvesting periods, they create the foundation for recurring carry realization rather than dependence on any single investment or exit. At the same time, AI and data capabilities are further strengthening this investment system. On the asset side, we positioned ourselves relatively early in several core segments of the global AI value chain, and many of these assets remain in the early to middle stages of value realization. We look through nearly 60 underlying funds and use institutionalized data systems and cross-validation to understand what leading GPs are investing in together, where they are increasing their exposure, and where capital and industry trends are converging. On the client side, AI is helping us address another equally important question.

It is not only about selecting the right product, it is also about identifying the right client and matching the right product with the right client at the right time. Investment judgment, client understanding, and asset allocation are increasingly being connected through data. The deeper the data becomes, the more precise our judgment can be. When clients achieve strong investment outcomes, the reinvestment rates and AUM can increase, which in turn creates the potential for future carry. This is the long-term flywheel we are working to build. Our Hong Kong platform has historically distributed a cumulative $158 million in carry already, demonstrating a track record of actual realization. Of course, alternative investments are inherently cyclical, and carry will fluctuate from year to year. We will not normalize or make linear assumptions around carry, and we will continue to provide updates each quarter.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 在募集与规模方面，上半年集团募集量40.5亿元，同比增长22.4%。其中美元产品募集24.5亿美元，同比增长8.4%，占比41%。截止6月30号，集团AUM按季度恢复增长，达到人民币1,409亿元，其中美元AUM 65亿美元，同比增长11.7%，美元的AUA 97.8亿美元，同比增长7.5%。资产负债表继续保持稳健。截至6月30号，公司持有现金、现金等价物及短期投资约人民币50亿元，维持零有息负债。历史承兴遗留的项目问题，本季度也取得了关键的进展。上半年我们完成了对已和解客户的股票发行。二季度面向尚未和解的客户推出新的和解方案，签署接受的投资人持续增加。由于前期拨备计提非常充分，二季度录得部分的拨备的回拨，这块历史不确定性的问题已经明显地得到了收窄。

Doreen Chew, Investor Relations, Noah Holdings: In terms of transaction values, total fundraising reached RMB 40.5 billion in the first half, up 22.4% year-over-year. USD denominated product fundraising reached $2.45 billion, up 8.4% year-over-year, accounting for 41% of the total. As of June 30th, Group AUM returned to sequential growth and reached RMB 140.9 billion. USD denominated AUM reached $6.5 billion, up 11.7% year-over-year. While USD denominated AUA reached $9.78 billion, up 7.5%. Our balance sheet remains strong. As of June 30th, we held approximately RMB 5 billion in cash equivalents and short-term investments with zero interest-bearing debts. We also made important progress this quarter in resolving the legacy Camsing matter. During the first half, we completed the issuance of shares to clients who had previously entered into the settlement agreement.

In the second quarter, we introduced a new settlement proposal for clients who had not yet settled, and the number of investors accepting the proposal continues to increase. Given the adequate provision we made previously record, we recognize a partial reversal during the second quarter. The uncertainty associated with this legacy matter has now been meaningfully reduced.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 第二部分是中国大陆的业务，中国大陆业务延续一季度确定的方向，回归投资与资产配置的本源，向标准化具备长期配置价值的资产进一步地聚焦。第二季度，中国大陆业务净收入人民币3.84亿元，上半年合计人民币7.76亿元，同比增长约20.7%。诺亚正行上半年募集人民币82.7亿元，净收入人民币4.14亿元，同比增长59.8%。对于正行，我们的经营理念也越来越简单，最重要的考核是客户有没有赚到钱。我们看客户的盈利、客户的留存以及加权投资的收益。当前产品报价以量化、中性、CTA等防守型策略为主。在目前市场环境中，我们不追求简单的做大规模，而是更加注重资产的质量、客户的投资结果以及长期的信任。歌飞上半年净收入人民币3.41亿元，与去年基本持平。中国大陆保险业务上半年净收入人民币338.2万元。对于传统高保用保障类的这种业务，我们已经主动收缩并有序地停止，逐渐转向家族传承等综合的服务。这个调整发生在监管要求之前，是我们基于长期客户价值主动进行的选择。中国大陆未来的业务定位也越来越清晰，聚焦二级市场，以专业投资能力和资产配置能力来服务客户，同时通过AI提升客户经营和服务的效率。

Doreen Chew, Investor Relations, Noah Holdings: Our Mainland China business continued in the direction we established in the first quarter, returning to the fundamentals of investment and asset allocation, with greater focus on standardized assets that offer sustainable long-term allocation value. In the second quarter, Mainland China generated net revenues of RMB 384 million. For the first half, net revenues totaled RMB 776 million, up approximately 20.7% year-over-year. Noah Upright raised RMB 8.27 billion in the first half and generated net revenues of RMB 414 million, up 59.8% year-over-year. For Upright, our operating philosophy is becoming increasingly simple. The most important measure of success is whether our clients make a profit. We focus on client profitability, client retention, and weighted investment returns. Our current product shelf is primarily focused on defensive strategies such as market neutral quantitative strategies and CTAs. In the current market environment, we are not pushing scale for the sake of scale.

Instead, we are placing greater emphasis on asset quality, client investment outcomes, and long-term trust. Gopher generated net revenues of RMB 341 million in the first half, broadly flat year-over-year. Our Mainland China insurance business generated net revenues of RMB 382 million in the first half. We have proactively reduced and gradually exited the traditional high commission protection product model, shifting instead to more comprehensive services such as family succession and inheritance planning. This adjustment began before the relevant regulatory requirements and reflected our own long-term assessment of client value. The future positioning of our Mainland China business is becoming increasingly clear. We will focus on secondary market investments, serve clients through professional investments and asset allocation of capabilities, and use AI to improve client engagement and service efficiency.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 好，第三个方面是国际的业务。AI财富管理部的新模式开始落地了。在国际业务方面，上半年国际板块净收入人民币4.69亿元，占集团净收入的37.7%，同比下降21.9%。这个降幅需要拆开来看，接近九成来自于保险业务的主动收缩，以及旧转介绍通道的退出。剔除这两部分后，美元投资产品收入与去年基本持平，而客户的资产仍然保持增长。美元AUM同比增长11.7%。截至6月30号，海外注册客户21,059人，同比增长11%。海外钻石级黑卡客户1,791人，同比增长8.9%。二季度活跃的用户3,494人，环比增长8.5%。所以我们对国际业务当前阶段的判断并没有变化，客户和资产并没有流失，是旧引擎退出的速度暂时快于新引擎并网的一个速度。这与过去我们几个季度我们向市场披露的收入结构调整节奏是一致的。但二季度有一个变化我们认为尤其重要。截至二季度末，海外RM人数同比下降36.2%，同期美元AUM反而同比增长11.7%。如果按照传统财富管理公司的经营逻辑，这两件事情通常不会同时发生，因为过去行业的增长公式非常简单，更多的RM带来更多的客户，更多的客户带来更多的AUM和收入。而我们过去一年一直在尝试改变这个公式。一季度业绩发布会上面，我们第一次比较完整地介绍诺亚的未来的三个前台，第一个是AI赋能的RM，第二个是AI财富管理部，第三个是AI加生态拓展。二季度以后，我们开始看到第二个前台，就是AI加财富管理部，从组织概念走向了真实的经营。那什么是AI加财富管理部呢？它并不是简单地给传统RM增加几个AI的工具，它本质上是一种新的财富管理前台组织的方式。过去一个客户通常对应一个RM。客户体验、产品理解、服务频率，甚至很多信息都高度依赖这个RM个人。这意味着传统的财富管理非常难规模化，尤其在海外。而AI财富管理部尝试重新拆解这个过程，由AI和集中化的财富管理团队承担大量高频、标准化和数字化的客户经营与日常的服务，由持牌的专业团队完成需要判断合规和专业责任的关键环节，再通过生态合作伙伴不断地扩大客户的来源。这样一个客户不再只是属于某一个RM，而是由整个诺亚的平台能力共同服务。这也是我们认为AI真正改变财富管理行业的地方。不是让一个RM写材料更快，而是让财富管理第一次有机会从个人生产力的模式进入一个机构生产力的模式。

Doreen Chew, Investor Relations, Noah Holdings: Let me first review the numbers for our international business. Net revenues from the international segment were RMB 469 million in the first half, accounting for 37.7% of group net revenues and declining 21.9% year-over-year. This decline needs to be understood in context. Nearly 90% of the decline came from the deliberate contraction of our insurance business and the exit from legacy referral channels. Excluding those two factors, revenue from U.S. dollar denominated investment products were broadly flat year-over-year. While our client base and assets continue to grow, U.S. dollar denominated AUM increased 11.7% year-over-year. As of end June, registered overseas clients reached 21,059, up 11% year-over-year. Overseas diamond and black card clients reached 1,791, up 8.9%. Active overseas clients reached 3,494 in the second quarter, up 8.5% sequentially. Our assessment of the current stage of our international business therefore remains unchanged. We are not losing clients or assets.

The legacy engines are simply being phased out faster than the new engines are coming online. This is consistent with the revenue mix transition we have discussed with the market over the past several quarters. However, one development in the second quarter is particularly important. As of the end of the second quarter, overseas RM headcount was down 36.2% year-over-year, while U.S. dollar denominator AUM increased by 11.7%. Under the traditional wealth management operating model, these two outcomes would rarely occur at the same time. Historically, the industry’s growth formula has been straightforward. More RMs lead to more clients, more clients lead to more AUM and more revenue. However, the past year, we have been working to change that equation. On our first quarter earnings call, we introduced the three front office engines that we believe will define Noah’s future operating model. First, AI-empowered RMs.

Second, the AI Wealth Management Department. Third, AI plus ecosystem expansion. After the second quarter, we are beginning to see the second front office engine, the AI Wealth Management Department, moves from an organizational concept into a real operating model. What is the AI Wealth Management Department? It is not simply about giving traditional RMs a few additional AI tools. As its core, it represents a new way of organizing the front office of a wealth management business. Historically, one client was typically associated with one RM. The client experience, product understanding, frequency of engagement, and often a significant amount of client information will highly depend on that individual RM. This makes traditional wealth management industry inherently difficult to scale. The AI Wealth Management Department seeks to redesign this process.

AI and a centralized wealth management team handle a significant portion of high-frequency standardized and digitalized client engagement and daily services. Licensed professionals are responsible for the critical stages requiring judgment, compliance, and professional accountability. Ecosystem partners then expand our client reach. Under this model, a client no longer belongs simply to an individual RM. The client is served by the combined capabilities of the entire Noah platform. This is where we believe AI can fundamentally change wealth management. It is not simply about helping one RM preparing materials faster. It is about giving wealth management the opportunity to move from an individual productivity model toward an institutionalized productivity model. Singapore is the first market where we have fully tested this model.

From its launch in the fourth quarter of last year, Singapore AUM grew from less than $100 million to more than $400 million by the second quarter, and the business achieved monthly profitability in July. What is even more important is how that growth was achieved. Today, 92% of clients are covered by our AI-enabled service model for day-to-day engagement. While licensed professionals remain responsible for regulated activities, professional judgment, and compliant delivery. This allows our professionals to spend significantly less time on repetitive administrative work, information organization, and standardized services, and more time on the things that truly require human capability: understanding clients, building trust, identifying needs, and communicating around important decisions. AI at the same time, external and ecosystem partners contribute 42% of our new AUM. Singapore raised $158 million in the first half, up 126% year-over-year.

This growth was achieved without relying on a large expansion in RM headcount. For us, the significance of these numbers goes well beyond the growth of the Singapore business itself. For the first time, they demonstrated that Noah may be able to gradually shift wealth management from a growth model highly depending on recruiting more RMs to build a model driven by an AI platform, licensed professional plus ecosystem partners. If this model continues to be validated, it has the potential to change our unit economics, management span and ability to replicate our business globally. This is why we view the AI Wealth Management Department as a potentially important new growth curve for Noah.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 好，分业务板块来看，ARK财富上半年净收入人民币1.93亿元，其中二季度人民币8,895万元。Olive资管上半年净收入人民币1.98亿元，美元私募一级募集4.1亿美元，同比增长13.4%。美元私募二级结构化及对冲基金产品募集5.9亿美元，同比增长33.2%。Glory传承上半年净收入人民币7,824万元，独立经纪人网络扩大至238人。我们的国际业务战略并没有发生变化，继续聚焦服务全球高净值的华人家庭，他们的资产、家庭、身份、教育和下一代正在越来越地全球化。过去要在香港、新加坡、日本、加拿大、澳洲、英国、欧洲乃至美国同时服务这些客户，需要庞大的本地RM和运营组织，因此很难实现经济有效的全球覆盖。AI财富管理部改变的正是这个全球化的成本结构。过去很多因为客户密度不够而无法规模化经济覆盖的市场，未来都有可能通过AI财富管理部加当地的持牌团队和生态伙伴的方式进入。所以我们常常说AI让诺亚服务全球华人这件事情第一次真正具备规模化的可能性。

Doreen Chew, Investor Relations, Noah Holdings: Looking at our international business by segment. ARK Private Wealth generated net revenues of RMB 193 million in the first half, including RMB 88.65 million in the second quarter. Olive Asset Management generated net revenues of RMB 198 million in the first half. USD denominated private equity fundraising reached $410 million, up 13.4% year-over-year. USD denominated structured products and hedge fund fundraising reached $590 million, up 33.2%. Glory generated net revenues of RMB 78.24 million in the first half, while its independent broker network expanded to 238 professionals. Our international strategy has not changed. We remain focused on serving Chinese high-net-worth families around the world. Their assets, families, residency application and next generation planning are becoming increasingly global.

Historically, serving these clients simultaneously across Hong Kong, Singapore, Japan, Canada, Australia, the U.K., Europe and the U.S. would have required a large local RM and operating organization in every market. That made economically efficient global coverage extremely difficult. Yet the AI Wealth Management Department changes the core structure of globalization. Markets that previously could not be economically covered because of insufficient client density may increasingly become addressable through a combination of the AI Wealth Management Department, local licensed professionals, and ecosystem partners. This is why we often say AI is making it possible for the first time for Noah to serve Chinese high-net-worth families around the world at scale.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 好，第四个部分是下半年的工作重点，从一个样本走向一套可复制的系统。一季度我们提出正在形成三个前台协同的新模式，就是AI赋能的RM、AI财富管理部以及AI家的生态拓展。如果说一季度是提出并验证这个初步的验证，那么二季度最大进展是AI财富管理部已经出现了第一个经营样本。那下半年的核心任务就是从一个样本走向一套可复制、可跨场复制的系统。我们具体聚焦在四件事情上面：第一个，把新加坡的AI财富管理部模式复制到更多的市场。新加坡模式已经完成了从启动AUM增长到单元盈利的第一阶段的验证。接下来我们正在把这一模式复制到香港和日本，并计划逐步进入加拿大、澳洲、英国和欧洲。我们不会简单复制传统财富管理公司的重资产开店的模式。我们的基本架构会是中央的AI财富管理能力，再加上当地的持牌的专业的团队，再加上当地的生态合作伙伴。AI负责放大平台的服务能力，而持牌团队负责专业判断与合规的交付。生态伙伴帮助我们用更低的固定成本来触达更多的客户。如果这一模式可以持续复制，我们认为它会显著改善诺亚国际业务未来的单位经济。

Doreen Chew, Investor Relations, Noah Holdings: Coming to the last part of this presentation would be the second half priorities. From one proof point to a replicable system. In the first quarter, we introduced the three front office engines that are beginning to shape our new operating model. AI empowers RM, the AI Wealth Management Department, and AI plus ecosystem expansion. If the first quarter was about introducing and initially validating this model, then the most important progress in the second quarter was that the AI Wealth Management Department produced its first operating proof point. Our priority for the second half is to move from one proof point toward the system that can be replicated across markets. We will focus on four major areas. First, replicate the Singapore AI Wealth Management Department model across more markets. The Singapore model has completed its first stage of validation, from launch to AUM growth to monthly profitability.

We are now working to replicate this model in Hong Kong and Japan, with plans to gradually expand into Canada, Australia, the U.K. and Europe. We do not intend to replicate the traditional wealth management model of building a heavy physical footprint in every market. Our basic architecture will be centralized AI wealth management capabilities, plus local licensed professional, plus local ecosystem partners. AI emphasizes the service capability of the platform. Licensed professionals provide professional judgment and compliant delivery. Ecosystem partners allows us to reach more clients with a lower fixed cost base. If this model can be replicated successfully, we believe it could meaningfully improve the future unit economics of our international business.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 第二，使用AI强化投资能力与carry的持续兑现。资产端，我们通过穿透近60个子基金的数据，持续观察全球优秀GP的共同投资与加仓的方向。在客户端，我们利用AI数据能力，提高产品跟客户之间的匹配的效率。这不是简单的产品推荐，我们的目标是理解客户真实的需求、风险承受能力、已有资产结构以及历史的投资行为，再找到更合适的资产。客户获得好的投资结果，就会提高满意度和复投率，复投持续地推动AUM的增长，优质资产最终退出，又带来carry。这个飞轮已经开始转起来，下半年我们希望进一步提高这个体系的数据的深度与运行的效率。

Doreen Chew, Investor Relations, Noah Holdings: Second, use AI to strengthen investment capabilities and the sustainable realization of carry. On the asset side, we look through nearly 60 underlying funds and continuously analyze the common investment and follows-on investment decision of leading global GPs. On the client side, we use AI and data capabilities to improve the quality of product to client matching. This is not simply product recommendation. Our objective is to understand the client’s real needs, risk tolerance, existing asset allocation, and historical investment behavior, and then we can identify the assets that are most appropriate for our client. When clients achieve strong investment outcomes, satisfaction and reinvestment rates would be improved. Reinvestment drives AUM growth and when high quality assets ultimately realize their value, they generate carry. This flywheel has already begun to turn.

In the second half, we intend to further deepen the data foundation and improve the efficiency of this system.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 第三个是继续加强海外运营基础设施。本季度集团继续推进海外运营基础设施的建设。我们集团与美国持牌银行机构Column Bank, Column National Association建立了合作，以提升海外客户账户的开立、多币种的结算与支付的处理能力。这项合作是集团自2024年以来持续推进海外中后台能力建设的一部分，将支持香港、新加坡、美国和日本持牌实体，提高客户服务的效率和运营的可扩展性。相关服务仅面向符合当地适用法规的非中国内地居民客户提供。那为什么这些基础设施非常重要呢？是因为如果AI财富管理部未来要真正跨区域规模化，前台AI只是其中的一部分，账户交易、支付、合规和资产的执行都必须形成统一而高效的基础设施。前台AI化与后台平台化必须同时发生，全球扩张才能够真正形成规模经济。

Doreen Chew, Investor Relations, Noah Holdings: Third, we will continue to strengthen our international operating infrastructure. During the quarter, the Group continued to strengthen the operating infrastructure supporting our international business development. The group established a partnership with U.S. licensed banking institution Column Bank or Column National Association to enhance account opening, multi-currency settlement, and payment processing capabilities for our international clients. This partnership is part of the international middle-and-back-office infrastructure we have been building since 2024 and is designed to improve client service efficiency and operating scalabilities across our licensed entities in Hong Kong, Singapore, the United States and Japan. The relevant services are provided only to non-mainland Chinese residents, clients who meet applicable law regulatory requirements. Why does this infrastructure matter? Because if the AI Wealth Management Department is ultimately going to scale across markets, AI in the front office is only one part of the equation.

Account opening, transactions, payments, compliance, and asset execution must also operate through an integrated and efficient infrastructure. Front-office AI transformation and back-end platformization must happen together for global expansion to generate true economies of scale.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 第四个是用AI的能力建立全球的生态伙伴的一个网络。针对企业端的业务的平台，我们累计AUM已经超过了3,300万美元。这个事业合伙人的机制已经开始启动了，首批合伙机构已经在香港和新加坡完成注册，所有法定业务均由持牌人员完成。我们正在逐渐看到第三个平台，AI加生态拓展开始与AI财富管理部形成链接。未来一个生态伙伴并不需要自己重新建设整套的产品研究、科技账户运营和合规基础设施。诺亚把这些基础设施建设好以后，生态合作伙伴可以在合规的前提下使用这些能力服务自己的客户。我们把金融基础设施建一次，全球网络就可以不断地复用，这也是我们希望实现的模式。用平台的能力来扩大服务的半径，而不是用固定成本扩大组织的半径。

Doreen Chew, Investor Relations, Noah Holdings: Last but not least, build a global ecosystem partner network powered by AI. Our enterprise-focused platform has now accumulated more than $33 million in AUM. Our business partner program has been launched with the first group of partner institutions registered in Hong Kong and Singapore. All regulated activities are conducted by licensed professionals. We are beginning to see our front office engine AI plus ecosystem expansion connect with the AI Wealth Management Department. In the future, an ecosystem partner should not need to rebuild an entire infrastructure converting products, research, technology, accounts, operations and compliance. Once Noah has built this infrastructure, our partners can leverage these capabilities within the appropriate regulatory framework to better serve their own clients. We build the financial infrastructure once and the global network can reuse it rapidly.

This is the model we are looking forward and we are working toward expanding our service reach through platform capabilities rather than expanding our organizational footprint through tech cycles.

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 我们仍然确实还是处于转型的一个过程之中，我们也不回避短期的承压点是明显的，但是与几个季度以前相比，我们现在对未来经营模式的信心来自于越来越多真实的数据。一季度新的经营模式已经开始被逐步地验证。到了二季度，我们已经看到利润、AUM的增长、人效的提升、新加坡的样板，以及一套开始能够复制的机制，尤其是AI财富管理部的落地，让我们第一次比较清晰地看到了，AI不仅仅帮助诺亚把今天的事情做得更便宜、更快，它有可能帮助我们做过去传统财富管理模式做不到的事情。在传统模式下面，全球扩张意味着不断地招聘RM、建设办公室、增加固定成本。而在新的模式下，我们希望通过AI财富管理部加持的专业团队和全球金融基础设施，再加上生态伙伴的一个网络，去服务分布在全球不同市场的高净值的华人家庭。如果这套模式持续被验证，诺亚未来的增长将越来越少地取决于增加多少人，而越来越多地取决于我们的平台能够服务多少客户，我们的AI能够理解多少客户，我们的资产平台能够创造多少价值，以及我们的生态网络能够连接多少专业的伙伴。这才是我们所理解的AI时代财富管理公司的真正变化。诺亚正从一家传统的财富管理机构逐步演进为一个由AI驱动全球化、服务全球华人家庭的财富管理的一个平台。这条路不会一蹴而就，但从这个季度开始，我们已经不只是一个愿景，开始变成一个有客户、有AUM、有收入、有利润，并且可以复制的经营的模式。财富管理是可以用一辈子、一生去做的事业。我们谢谢大家。接下来我把时间交给CFO潘欣，为大家介绍更详细的财务的表现。

Doreen Chew, Investor Relations, Noah Holdings: We remain in the middle of transformation. The near-term pressure points are transparent, and we will not avoid them. But compared with several quarters ago, our confidence in the future operating model is increasingly supported by real operating data. In the first quarter, the new operating model began to show initial signs of validation. By the second quarter, we are already seeing possibility AUM growth, improved positivity. A working Singapore proof point and a model that is beginning to demonstrate replay capability. Most importantly, the implementation of the AI Wealth Management Department has given us a much clearer view of something we believe is fundamental. AI is not simply helping Noah do what we already do faster and at a lower cost. It may allow us to do things that were not economically possible under the traditional wealth management model.

Under the traditional model, global expansion meant continuously hiring more RMs, opening more offices and adding more fixed costs. Yet, under the new model, we aim to serve Chinese high-net-worth families across different markets through a combination of an AI-powered platform, plus licensed professional and global financial infrastructures and an ecosystem partner network. If this model continues to be validated, Noah’s future growth will become progressively less dependent on how many people we add and increasingly depend on, first, how many clients our platform can serve. Second, how deeply our AI can understand those clients. Third, how much value our investment platform can create, and how many professional partners our ecosystem can connect. This, in our view, is the fundamental transformation of a wealth management company in the AI era.

Noah is evolving from a traditional wealth management institution into an AI-driven global wealth management platform serving Chinese high-net-worth families around the world. This transformation will not happen overnight, but beginning this quarter, it is no longer simply a vision. It is becoming a real operating model which clients AUM revenue profitability and increasingly evidence of repeatable across markets. Wealth management is a lifelong commitment. Thank you for your time, and I will now turn the call over to our CFO, Grant, who will walk you through our financial results in greater detail.

Grant Pan, CFO, Noah Holdings: Thank you, Doreen, and thank you, Xander. Good day to everyone joining us. As Xander laid out in great details just now, we are at the turning point of upgrading our business. Our second quarter was about the quality of our profitability rather than pure growth in revenue. Our operating profit was RMB 216 million in the second quarter, up 34% year-over-year, with operating margin at 34.8%. Non-GAAP net income was RMB 238 million, up 25.9% year-over-year and 77.8% sequentially. For the first half of 2026, operating profit was RMB 452 million, up 30.3%, with a record half year margin of 36.3%. This was also our third consecutive quarter of year-over-year operating profit growth. The cost optimization behind the margin expansion is structural rather than cyclical. Operating costs fell 13.7% year-over-year, and total headcount streamlined about 17%.

For the first half, costs were down 11.6% on flat growth in revenue. Delivering the same revenue from a materially smaller cost base is what produced margin and efficiency. Importantly, this is increasingly about more than simply reducing overheads. It reflects a leaner operating model enabled by AI and process redesign. As our CEO discussed, USD AUM grew 11.7% year-over-year even as overseas RM headcount declined 36.2%. This is early financial evidence that we are beginning to support a larger asset base with a more efficient organization. Carry or performance-based income was RMB 138 million in the quarter and RMB 238 million in the first half. Carry is not a one-off event in our model. We have recognized performance income in every year we have reported, and it grew 78% in 2025. In Hong Kong alone, we have distributed $158 million of carry to date.

Supporting the story is a USD asset base that keeps growing. USD AUM up 11.7% and USD AUA up 7.5% year-over-year. Of course, it is challenging to forecast carry income because realization depends on market conditions, exit opportunities, and the timing of underlying portfolio realizations. With that, let me take you through the details. Net revenue. Second quarter net revenue was RMB 620 million, down 1.5% year-over-year and 0.9% sequentially. First half net revenue was RMB 1.25 billion, in line with last year. One-time commission were RMB 87 million, down 44.1% year-over-year. The decline is mainly attributed to insurance income, where commissions fell 58.2% year-over-year. This also reflects competition intensified in this market and our own position to walk away from business that does not meet our margin and suitability standards.

Recurring management fees were RMB 360 million, down 10.8% year-over-year and 5% sequentially as legacy RMB private equity assets run off. A moment more on carry, because it’s often read as a windfall. It’s not. The reason is structure. Let me explain why it recurs. First, our investment work is institutionalized across 67 private equity funds built over more than a decade. We’ve looked through holdings across more than 50 sub-funds. Our multiple funds have invested across various vintages since early financing rounds of notable holdings such as ByteDance and Anthropic. When realization of carry depends on the timing and form of exits, this diversified portfolio across vintages provides a broad underlying base from which future performance-based income may be realized over time.

To caveat on that, carry is realities driven and will not be smooth or linear from period to period and should not be annualized off any single quarter. Accrued amounts move with valuations in both directions. We do not accrue carry or forecast carry. We record it on cash basis. We do not budget on peak carry, and one-off gains do not enter our fixed cost base. Turning to the drivers, transaction values of distribution were RMB 17.2 billion in the quarter, up 1.1% year-over-year and down 26.4% sequentially. First half volume was RMB 40.5 billion, up 22.4%. US dollar products grew 8.3% year-over-year and were the engine in the quarter. Two things drove the sequential decline. The first quarter was an exceptionally strong RMB fundraising quarter, and with clients in June to position ahead of the A-share adjustment that did come in in July.

We track this line closely because volume drives commissions today and builds the asset base that pays management fees later. Our US dollar asset base grew. US dollar AUM reached $6.5 billion, up 11.7% year-over-year. AUA reached $9.8 billion, up 7.5%. International registered clients were up 11% year-over-year. That is the clearest evidence our mix is moving toward investment-related business. More importantly, this asset growth was achieved when overseas RM headcount declined 36.2% year-over-year. We view this as early decoupling between asset growth and RM headcount growth as an important indicator of the operating leverage we’re seeking to build through AI-enabled servicing and our evolving front office model, as Xander just laid out. As highlighted earlier, total operating cost and expense continues to drop.

Looking at the breakdown, total compensation benefits for the second quarter fell 13.1% year-over-year to RMB 260 million, where for the first half, compensation was down 12.7% to RMB 527 million. This continues the efficiency work we have discussed for several quarters, with AI process redesign allowing for smaller organization to carry the same service coverage. As Xander discussed, the AI Wealth Management Department represents a further evolution of this model. Using AI and centralized service capabilities for high frequency and standardized client engagement when licensed professionals remain responsible for regulated activities, professional judgment, and compliant delivery. The early financial evidence is encouraging. Overseas RM dropped year-over-year about 36%, when US dollar AUM increased 11.7%. In Singapore, where we’re testing this model end to end, AUM has grown from less than $100 million to more than $400 million, and the business achieved monthly profitability in July.

Obviously, it’s still early, but if this model proves replicable, future asset growth can become progressively less dependent on proportional increases in RM headcount and fixed cost. On the non-personnel side, second quarter selling expenses dropped 10% year-over-year, while for the first half, they were down 18.6% to RMB 92 million. Moving on operating profit and non-GAAP net income. Operating profit for the second quarter was RMB 216 million, up 34% year-over-year, delivering an operating margin of 34.8%, up 9.2 percentage points from 25.6% a year ago. On a sequential basis, operating profit was down 8.7%, tracking lower quarterly net revenues. For the first half, operating profit reached RMB 452 million, up 30.3% year-over-year with a record margin of 36.3%. The key takeaway is conversion efficiency. Even on flat revenue, our cost discipline allowed a significantly higher portion of revenue to flow straight to operating income.

On the bottom line, second quarter non-GAAP net income reached RMB 238 million, up about 26% year-over-year and 77.8% sequentially, with non-GAAP net margin expanding to 38.4%. For the first half, non-GAAP net income reached RMB 372 million, up about 4% year-over-year. On a GAAP basis, second quarter net income attributable to shareholders was RMB 232 million, up 30% year-over-year and 86.2% sequentially. Reconciliation items remain modest, with share-based compensation falling 44% year-over-year to RMB 17.2 million in the quarter. Two non-cash items below the operating line also contributed to that result, which might naturally raise questions, so I want to clarify here. Investment income was a positive RMB 42 million in the quarter against a loss of RMB 14 million a year ago, and RMB 40 million in the first half against a loss of RMB 8 million. That lies our own portfolio at work.

The income from equity and affiliates was a gain of RMB 55 million in the quarter after charge in the first quarter, leaving a loss of RMB 10 million for the half against a gain of RMB 36 million in the first half of the last year. While these are non-cash items, there is a broader point, product access and distribution, and commoditizing what’s durable in this business, the ability to make clients money and to be paid only when they do. That is how we’re built. We co-invest alongside with our funds and clients, carry pays only after they make a profit, and fees persist only if they stay. Our investment portfolio and carry are two views of the same capability. On the legacy Camsing matter, we made real progress this quarter.

We accelerated the related share insurance, which removes a significant piece of uncertainty, and we launched a new settlement plan for the remaining clients. Settlements are concluding on average below our current provisional level. Contingent liabilities were RMB 455 million at June 30, down from RMB 505 million on March 31. Moving on to balance sheet and shareholders return. We ended the quarter with RMB 5.0 billion in cash and short-term investments, no interest-bearing debt, and the current ratio of 4.3 times. Shareholders’ equity was RMB 9.8 billion. We’re trading at roughly half of book value, a valuation that fails to reflect our true intrinsic value of underlying earnings capabilities, as demonstrated by our second quarter annualized non-GAAP return on equity of 9.7% and first half annualized ROE of 7.6%.

To deliver sustainable returns, we completed our 2025 dividend distribution in July 2026, making our third consecutive year maintaining 100% net income payout ratio and bringing accumulated dividends from 2022 to 2025 to roughly RMB 2.4 billion. In parallel, under our share repurchase program launched in 2024, cumulative execution reached over 3.2 million ADS shares for more than $34 million. These capital deployment actions highlight our commitment to enhancing shareholder value and our confidence in Noah’s long-term earnings potential. To close, I want to leave you with three key takeaways. First, what changed? We demonstrated the upgraded earning power of our platform, delivering a 34% year-over-year increase in operating profit, mid-30s operating margins, and the third straight quarter of profit growth, driven by disciplined cost management and increasingly efficient operating model. We are also beginning to see early financial evidence of the new operating model, as Xander just pointed out.

U.S. dollar AUM continued to grow, increased 11.7% year-over-year when the overseas AUM headcount dropped. Singapore has provided the first meaningful proof point that the AI-enabled wealth management model can support asset growth without proportional adding on the AUM headcounts. Secondly, what will need to work? Core commissions and management fees both fell. Overall client acquisition has yet to return growth and regulatory headwinds heightened noticeably. Third, what underpins our foundation? Our international business continues to expand in both assets and client count. Our investment franchise maintains unbroken annual track record of generating carry, and our balance sheet remains debt-free with strong liquidity, fully backing our high payout commitments. The financial objective behind transformation is straightforward, to build business where AUM, clients, and revenue can grow faster than fixed costs and headcounts. Thank you for your continued trust, for your time, and partnership.

We are now happy to take your questions.

Doreen Chew, Investor Relations, Noah Holdings: Hi. Doreen here. Since we have the webcast, we have received a few questions. Let me read through the first one and let management do the answers. First question is from Kevin from Citi, and he is asking, on contingent litigation expenses and the related liabilities, we noticed there was a reversal of contingent litigation expenses in the second quarter. Can management give more color on the recent development on the litigation, and can we expect more reversals in the next few quarters? Thank you.

Jason Wu, Deputy CFO, Noah Holdings: I will take that question. As the CEO just mentioned, in the second quarter, we introduced a new settlement plan relating to Camsing. As of today, more than 80% of our affected clients have accepted the settlement plan. Our legacy risk exposure has declined substantially. As we have made provisions in prior years for the litigation risk associated with all unsettled clients, we are now making adjustments in the provision balance on a quarterly basis in line with actual settlement progress. We are continuing to engage with those remaining unsettled clients. Unfortunately, we cannot make any prediction on the future provision rehearsal, because we are still tracking those settlement progress. We will keep focusing on the core operating profit.

Doreen Chew, Investor Relations, Noah Holdings: Thank you, Jason. Maybe we should open the line to see if there is anyone using the phone to call in, if there is any questions.

Operator: Yes, ma’am. As a reminder to ask a question, please press star then 1. Our first question today comes from Peter Zhang at J.P. Morgan. Please go ahead.

Peter Zhang, Analyst, J.P. Morgan: 好，感谢管理层给我提问的机会，也恭喜诺亚取得非常优异的二季度业绩。那我这边提两个问题吧。第一个是管理层提到我们现在是在一个转型的阶段，然后在我们的AI的策略也取得了一定的进展。我想请教一下，管理层觉得这个转型的阶段大概会持续多久？有哪些metrics您觉得我们投资者可以去进行关注，去掌握我们这个转型的进展？那中长期来看，在三五年我们有什么目标？然后第二个问题也是关于这个AI财富管理的这个业务的，我想问一些细化的问题。对于我们的投资经理，我们现在给到投资经理的KPI是什么？然后这些KPI再对比旧模型有什么变化？然后是在新的这个AI的财富管理模型下，我们是怎么去增长拓展我们的客户数、客户基础的？最后是可否请管理层介绍一下，通过这个AI的驱动，对于我们的投资经理的RM的生产力有些什么提升？比如说一个RM服务的客户增长了多少，一个RM管理的AUM增长多少，这个对比一两年前有什么变化？那我做一下翻译。Thanks for giving me the opportunity to ask questions.

This is Peter Zhang from J.P. Morgan. Congratulations on the very strong second quarter result, and I have two questions. First is management mentions that we are currently in a transition period, and the AI strategy has gained very strong momentum. I wish to understand how long this transition period could take, and what metrics will you recommend investors to monitor to track the progress of this transition? Do we have any longer term target for this AI strategy, say any target in next 3 to 5 years? My second question is also on AI wealth management. I wish to understand for the KPIs you give to your Relationship Managers, how the new KPI under the new AI wealth management model look like, and how this are compared to the KPIs in the old models?

How Noah is growing your client base under the new AI wealth management model? Can you also give any examples on how AI has improved the productivity for the RMs? For example, the number of clients one RM can provide service to, and the number of AUM one RM can serve. Thank you.

Jingbo Wang, Co-founder and Chairlady, Noah Holdings: 我是Nora Wang。我觉得要看你怎么理解这个问题。如果只是看RM的效率的提升的话，我觉得这个还是比较传统的模式，相当于你给RM增加了一些AI的工具，提升了工作效率，这个当然是需要的。但我们这次反复强调，我们的AI不是简单地给一个工具，而是彻底地改变我们的组织模式。我们从一个前台变成了三个前台，以前我们只有靠传统的RM一个前台，现在我们是被AI赋能的传统的RM，这第一个。第二个就是完全纯粹的AI的财富管理部，它是靠运营的方式来服务客户的。第三个就是AI加的生态拓展部。那我们认为在这几个方面，都是取得了比较好的成果。在RM赋能方面，我们其实没有想去特别地触动RM的利益，而是只是希望通过AI赋能以后提升跟客户服务的品质，然后让他有空间可以服务更多的客户。但传统的RM的客户拓展本身的速度不会太快。我们也做了很多数据的分析，你发现可能单个客户的AUM提升了，但是你要增加客户数量，这本身是它的瓶颈，难度还是非常大的，你想增也不行。但是AI的财富管理部就是基于运营来服务客户，这个数字效率是大幅提升的。比如说你有一些流失的客户，或者休眠的客户，然后我们不断地通过AI财富管理部来激活他，然后客户的转介绍。可能一个AI财富管理部，比如说在新加坡，我们可能只有6个人，但是他可以服务500个客户。而且这些客户有一些就是我们老的这些，因为RM的服务或者流失，他走了，现在他重新回来了，而且客户的转介。第三类就是生态拓展。我们今天讲的是诺亚的全球业务，比如说在日本、加拿大、澳洲，我们都可以找到这些专门服务华人的一些相对比较小的independent financial advisor或者RIA在美国，那么他们就可以挂在我们的平台上，帮我们转介客户，就有点像AM的模型，这个我们的效果也非常好。因为这些客户本来就是他们的客户，那还有一些可能业界联盟，做房地产的，然后做教育的，他们有客户，但是他们没有办法转化，他到了我们这儿以后，由我们的持牌代表来转化，我们也会给他一些marketing fee，那我们觉得这个效果是很好的，它推进了我们的拓展，我们今天的增量都不是出于传统RM的AI赋能。我觉得这个是可以的，但是效率的提升是缓慢的。

Doreen Chew, Investor Relations, Noah Holdings: Let me do the-

Jingbo Wang, Co-founder and Chairlady, Noah Holdings: 我不知道这个。

Doreen Chew, Investor Relations, Noah Holdings: [Foreign language] Let me do the translation. Thanks, Peter, for the questions. What Charlie was trying to explain is what we’ve been elaborating the whole morning is that the new system Noah is trying to build up, which no longer just rely on RMs and how many clients that one RM can serve. What we’ve been repeatedly talking about is how we’ve been using three platforms, which is the AI-empowered RMs. I mean, we still value humans and AI can be the tools to empower the performance, but at the same time, it’s more about we have built up the AI Wealth Management Department, and also we’ve been having this platform called AI plus ecosystem expansion.

To give you some example is say in Singapore, we have only 6 people, but we’ve been able to cover 500 clients, which in the past is basically impossible. But with the new system that the company is building, we found out that it enhance more than just efficiency and more than just numbers of clients versus how many RMs can cover. Also our experience with the AI plus ecosystem platform, which is we’ve been able to cooperate with expertise from different industries, which they may have clients that have wealth management needs, but they don’t have the license. Cooperating with us, we provide fees to them, and then at the same time, they can better serve the client as well, and they can refer the clients to us for wealth management needs.

It is no longer just a very traditional way to look at wealth management business under this model. Peter, have I answered your question? Yes.

Jingbo Wang, Co-founder and Chairlady, Noah Holdings: 王总，他可能还有问到关于我们这个转变的过程，大概我们预计会需要多久，会有比较明显的改变。还有就是三到五年大概是——对。不能的，我觉得不是这样的。我们在新加坡的运营从去年9月份开始的，那我们觉得一个季度以后就发生了非常大的变化，因为在AI时代一切都被加速了。就好像我们今天做一个系统的开发，如果两个星期做不成，那肯定就错了方向。所以我自己觉得这个AI的速度是非常快的。所以你可以看到，在去年9月，我们在新加坡，我们的AUM是8,600万，我们到今天二季度，我们是超过4个亿，而且都是有品质的，就是margin比较高的AUM。所以我个人觉得绝对不会是三到五年，而是非常快的速度。我们现在很显然，我们会加强我们在全球的拓点，日本我们很快，我们已经看到进步了，我觉得很快两个季度就会有变化。那接下来加拿大、澳洲、欧洲我们都会有我们的点开出来。以前我们比较谨慎，不敢开，原因是因为你在没有让我们招募大量RM的情况下，我们招不到传统的RM，而且成本也非常高。招来的RM，我们做了一个统计，在海外，我们这次也有意思地淘汰了很多海外的RM，因为我们发现他们根本带不了新的AUM，如果他有新的AUM，他也不会来诺亚，他来诺亚的都是没有客户的。所以这个是我们觉得完全不行的。但是诺亚确实做了很多年了，我们在这个行业从2003年开始，到今天已经23年了，我们的客户遍布全世界，他们都已经覆盖全球，并且都听过我们的名字。那我们通过不是招募RM的方法，而是通过AI财富管理部的方式，我们搭建平台，我们的客户很快就回来了，而且服务的品质更高。理财师离职，现在对我们来讲，我一点都不害怕了。为什么呢？因为所有的客户都是我们在平台上运营的，理财师离职，我们立刻可以接住。这个就是我觉得带来的很大的不同，肯定不是三五年的转变，是全面加速的，我认为在AI的时代，而且我们非常有信心可以服务好他们。

Sanda Yin, Co-founder, Director and CEO, Noah Holdings: 对，我也补充一点，可能回答Peter的问题，就是新加坡的模式，香港过去的话，其实也是在开始第一阶段沿用过去的我们国内发展的一些经验，就是招理财师，然后理财师希望他能够投客户，但是发觉非常重，而且效果非常不好。那现在香港也在转变，用AI加的AI财富管理部的模式，然后去链接已经开户的客户，通过这个运营的效率，就AI赋能下面的话，效果是非常不错的，而且理财师走和不走都不会影响公司跟客户之间的连接。我觉得这一点就是一个模式改变。所以说我们之前刚才在讲，我们通过AI赋能的理财师，但是核心是后面几个，AI加的财富管理部、AI生态拓展部，还有我们的基础设施的平台建设，这三个共同来承接住，通过平台的人来承接住我们的客户。

Jingbo Wang, Co-founder and Chairlady, Noah Holdings: 对，就是AI powered platform、licensed professionals，还有ecosystem partners，我们就三个。我觉得这个是结合在一起的，我们对这个打法我们已经觉得是比较成熟了。

Doreen Chew, Investor Relations, Noah Holdings: Let me do a brief translation. This is probably not the best three to five years, because under the AI era, changes could be very fast. Take Singapore as an example, we have only started the business in September last year with only AUM of around RMB 86 million, but now it is already over RMB 400 million with those AUM with a really high margin, high quality AUMs. What we have been trying to emphasize here is that under the AI-enabled company, we are no longer the transitional model. It is not about hiring more RMs, and hopefully the RM can get clients ultimately about AUM. With that, also explain we have been trying to expand our global footprints. In Sandra’s speech we have already mentioned, we are now replicating the AI model from Singapore to Hong Kong. We will further expand the offices into different cities as well. At the same time, the cost will be under control, and it is no longer the transitional way of wealth management company’s model. We believe that it is going to have a drastic change in a relatively a lot shorter time compared to be in the old model where we have tried in Hong Kong when we first came here. It does not seem to be a very successful experience. That is why in Singapore we found the path to success, and we are going to repeat that in different cities as well.

Operator: Thank you. I am showing no further audio questions at this time, so I hand the call back over to the company.

Doreen Chew, Investor Relations, Noah Holdings: Thank you. We have another question here, which is about the. The second question here is from Miss Wang, and she is asking: Would you be able to tell us more on the dividend expectation for the current fiscal year and the periods ahead? Following the presentation on the AI development strategy, may we ask for your view on the anticipated assets effects on both revenue and profitability in the medium to long term? I think we have basically answered the second part of the questions about how AI development is going to help the revenue and profitability in the future. I will let management to address about our dividend policies. [Foreign language]

Grant Pan, CFO, Noah Holdings: [Foreign language] So as we have just mentioned, for the past three, four years since 2022, we have cumulatively given out about RMB 2.2 billion. Given the strong position in balance sheet and also highly managed liquidity, we expect to continually to distribute obviously a significant portion of the income to our shareholders to maintain high returns. But obviously, we have not been decided on exactly the portion or ratio of the future dividend, but we believe they remain consistent on the asset allocation and also shareholder return policy to our shareholders. Secondly, we believe that, as Chairwoman and also CEO has mentioned, that when AI and carry continue to push hopefully our profitability and earning power and upgrade the business model, we will be able to sustain at least a comparable level of shareholder returns in the future. Dory?

Doreen Chew, Investor Relations, Noah Holdings: Yes. Thank you, Grant. We still have a Can I check if there are any questions from the phone?

Operator: There are no further phone questions at this time.

Doreen Chew, Investor Relations, Noah Holdings: If that’s the case, I think we will wrap up the presentations today, and thank you for everyone for joining us this morning. I understand that there may still further questions, please contact the IR team at your convenience time, and I look forward to talk to you into more details in the near future. Thank you very much.

Operator: Thank you. This does conclude our conference for today. We thank you all for attending today’s presentation. You may now disconnect your lines.