Noah Holdings Ltd (NOAH) Q2 2026 Earnings Call Transcript

Good day and welcome to the NOAA Holdings Limited second quarter and half year 2026 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 than one on your telephone keypad and to withdraw your question, please press star than two. 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 Chu with Investor Relations. Please go ahead.

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. Noah Wang, Co-Founder and Chair Lady, Mr. Sander Yin, Co-Founder, Director and CEO, Mr. Grant Pang, CFO, and Mr. Jason Wu, Deputy CFO. Mr. Yin will begin with an overview of our recent business highlights, followed by Mr. Pang, 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 and that may cause actual results to vary materially from those in our forward-looking statements. Potential risks and uncertainties include but not limited to those are lighted in our public filings with the SEC and the Hong Kong Stock Exchange. NOAA 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. Hello, this is the operator.

Your line is open.

Are you perhaps muted? 到了第二季度 我认为这个判断已经可以再往前走一步了 旧的模式的收入在有序的一个退出 而我们新的经营模式不仅开始被验证 也开始产生收入 资产增长和利润 尤其是这跟大家分享的是 我们过去一年重点推动的AI财富管理部的新模式 已经在新加坡形成了一个第一个的完整的样本 这个季度我们观察到有三个进一步的清晰的事实 第一个的话是新加坡用了大约十个月的时间 跑通了AI财富管理部的新经营模式 并在七月份实现了单月的盈利 第二个是我们上百年业绩报酬净收入人民币2.38亿元 我们多年积累的全球投资能力正在持续转化为利润 第三个是在员工人数同比下降17%的同时,我们美元AUM同比增长11.7%,尤其是海外RM的人数同比下降36%,但是海外资产仍然增长,说明我们正在逐步打破传统财富管理行业,增长必须依赖RM人数增长的一个线性的关系。 This is what we want to do today's change to the market today. Because AI has not only changed the value of the product and the value of the product, but it's in the beginning of changing our front-end system, customer service, and the way of the world. Next, I will share the four four areas of財務, and I will share with you the next half year's work.

Good morning, everyone. Thank you for joining NOAA holding second quarter's 2026 earnings call. As we enter the second quarter, NOAA's transformation reached a new stage. On our first quarter earnings call, we said that Q1 represented the beginning of the validation of NOAA's new operating model. After the second quarter, I believe we can take that conclusion one step further. Wevenue associated with our legacy model are being spaced out in an ordinary manner, while our new operating model is not only being validated, but it's 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 point in Singapore. This quarter, we observed three developments that have become increasingly clear. First, Singapore has proved that 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 growth for investment capabilities we have built over many years are increasingly translating into earnings. Third, while our total employee headcount declined 17% year-over-year, US dollar denominator AUM increased by 11.7%. More importantly, our overseas RM headcount declined by 36.2% year-over-year while overseas asset continued to grow. This suggests that we are beginning to decouple asset growth from RM headcount growth, a relationship that has historically been highly leaner in traditional wealth management. This is also the most important message we would like to communicate to the market today. For NOAA, 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.

Non-gap is due to Nokia's 2.38 billion, which is 25.9% and is 77.8%. On the last year, we have人民币 12.46 billion, which is 0.1% and is 0.1% and is 4.52 billion, which is 30.3% and is 36.3% and is 8.4%. Non-gap is 3.72 billion, which is 3.9% and is 3.9% 本季度也标志着诺亚兹上市以来 连续第63个季度实现能gap的盈利 收入总量与去年基本是平 但收入结构和经营效率已经发生了明显的变化 我想把这个变化的话再进一步的阐述一下 第一个方面 旧模式相关收入正在有序的一个退出 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Carray 净收入达到人民币2.38亿元 同比增长364% 投资类传媒募集费同比增长13.4% 投资收益人民币3979万元 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 但我们更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。 percent year-over-year and 77.8 percent quarter-over-quarter. For the first half of the year net revenues were renminbi $1.25 billion broadly flat year-over-year. Operating income reached renminbi $452 million of 30.3 percent year-over-year with an operating margin of 36.3 percent representing an improvement of 8.4 percentage points from the same period last year. Non-GAAP net income was 372 million RMB up 3.9% year-over-year. This quarter also marked the north 63 consecutive quarter of non-GAAP profitability since our IPO. While total revenue remained broadly 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 the first 6% year-over-year in the third 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 the international business separately in more detail later. On the other hand, revenues associated with our investment capabilities are increasingly being realized. Net performance-based income, or what we call carry, which the 238 million RMB in the first half, up 364% year-over-year. Distribution income from investment products increased 13.4%. investment income was 39.79 million renminbi 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 discipline cost management and organizational streaming. But more importantly, we believe that they reflect a structural change in how noise 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. Our view of the earning structure is clear. During the transformation period, carrier realization and course discipline provides support for profitability. And 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 about 30%, while quarterly results may naturally fluctuate depending on product mix and the timing of expenses? 观察全球优秀投资机构的集体选择 第三层通过跟头和直头 把前两层积累的信息优势转化为回报更高及中度更高的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 持续由早期基金进入收获的阶段 使得开锐具备滚动对线的基础 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的强化这套投资系统 资产端我们较早的布局了全球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支支基金 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 持续在加创什么 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 把合适产品匹配给合适客户 投资判断,客户的理解与配置能力开始被数据连接在一起 数据积累的越深,判断就越精准 客户获得好的投资结果以后,副投和AUM就会提高 最终进一步的形成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carry1.58亿美元 这个兑现能力是记录有可以来验证的 Care 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 robo funds, which gives us exposure to the most advanced industry's 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 robo 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 from the foundation of our continuously evolving product portfolio. Funds established in different vintage are at different stages of their life cycles. As earlier funds progressively enter the harvesting period, they create the foundation for recurrent 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 our set 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 looked through these 60 underlying funds and use institutionalized data system and cross-validation to understand what leading GPs are investing in together, where they are increasing their exposure and where capital and industry trends and 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 ethic 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 investment rates and AUM can increase, which in turn creates the potential for future carry this is the long-term side will we are working to build our Hong Kong platform has historically distributed accumulated US dollar 158 million in carry already demonstrating a track record of actual realization of course alternative investment are inherently cynical 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. 同比增长11.7% 美元的AUA97.8亿美元 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 现金等价务及短期投资约人民币51元 维持零有息负债 历史诚心已遗留的项目问题 本季度也取得了关键的进展 In terms of transaction values, total fundraising reached renminbi $40.5 billion in the first half, up 22.4% year-over-year.

U.S. dollar denominated product fundraising reached the U.S. dollar $2.45 billion, up 8.4% year-over-year, accounting for 41% of the total. As of end June 30th, Group AUM returned it to sequential growth and reached renminbi $140.9 billion. U.S. dollar denominated AUM reached the US dollar 6.5 billion, up 11.7% year-over-year, while US dollar denominated AUA reached the US dollar 9.78 billion, up 7.5%. Our balance sheet remains strong. As of June 30, we held approximately RMB's 5 billion in cash, cash equivalents and short-term investments, with zero interest-bearing debt. We also made important progress this quarter in resolving the legacy campsite matter. During the first half, we completed the insurance 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 proposition 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. 约20.7% 那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 最重要的好合是客户有没有赚到钱 我们看客户的盈利 客户的流程以及加权投资的收益 当前产品货价以量化中信 CTA等防守型策略为主 但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 对于传统高反应保障类的这种业务 我们已经主动收缩并有序的停止 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地位也越来越清晰 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 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. Nor Upright wasted 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 profits. 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. Guovar generated net revenues of RMB $341 million in the first half, broadly flats 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 exit the traditional high-commission protection product model, shifting instead to a comprehensive services such as family succession and in-heritage pending. 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 ask the allocation of capabilities, and use AI to improve client engagement and service efficiency.

21.9% 这个降幅需要拆开来看 接近9成来自于 以及就转介绍通路的退出 提出这两部分后 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% 海外钻石及黑卡客户1791人,同比增长8.9%,二季度活跃的客户3494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,暂时快与新引擎并往的一个速度,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。 In the second year, there is a change that we think is very important. The second year of the second year, the R&M rate will be 36.2% and the A&M rate will be 11.7% If we look at the traditional trade-off company's business strategy, the two things will not happen at the same time. Because the past year, the R&M rate is very simple. The R&M rate is more than the customers, and the more than the A&M rate is more than the A&M rate. Thank you. 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真正改变财富管理环境的地方 Let me first review the numbers for our international business.

Net revenues from the international segment were Renminbi's $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 US dollar denominated investment products were broadly flat year-over-year while our client base and asset continued to grow. US dollar denominated AUM increased 11.7% year-over-year. As of In 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 faced 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 hat count was down 36.2% year over year while U.S. dollar denominated 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 RM leads 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 NOAA's future operating model. First, AI-empowered RMs. Second, the AI work management department. And third, AI plus ecosystem expansion. After the second quarter, we are beginning to see the second front office engine, the AI Wealth Management Department moved from an organizational concept into a real operating model. So what is the AI Wealth Management Department? It is not simply about giving traditional RMs a few additional AI tools. At 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 RR. This makes traditional work management industry inherently difficult to scale. The AI work management department sits to redesign this process. AI and a centralized work 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 the capabilities of the entire Nord platform. This is where we believe AI can fundamentally change wealth management. It is not simply about helping OneRM preparing materials faster, it is about giving wealth management the opportunity to move from an individual productivity model toward an institutionalized productivity model.

在新加坡 第一个是完整的一个样本 来验证这套模式 在市场上的成功性 从去年四季度启动到现在 新加坡AM从不到一亿美元 增长到二季度超过四亿美元 并在今年的七月份 实现了单元的盈利 更加值得关注的是 它的增长方式 目前AI富能的团队 已经承接92%的客户的日常富 再由直播团队负责合规与专业交付 这使得专业人员可以把大量时间从重复性的行政事务 信息的整理和标准服务中释放出来 更多投入真正需要人类完成的事情 理解客户 建立信任 判断需求 进行重要的决策沟通 同时外部合作伙伴贡献了42%的新增AUM 下半年新加坡募集1.58亿美元 同比增长126% 而这个增长的全过程没有依赖RM人数的大规模的扩张 对我们而言 这组数字的重要意义不仅是新加坡业务增长 而是它第一次证明 那有可能把财富管理从过去高度依赖招募RM的增长模式

逐渐转变为AI平台加专业吃牌人员加生态伙伴的增长模式 这意味着增长的单位经济管理半径与全球复制能力都有可能发生变化 这也是为什么我们把AI财势管理部看成诺压未来非常重要的一条增长曲线 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 US$100 million to more than US$400 million by the second quarter and the business achieved a monthly profitability in July. What's even more important is how their growth was achieved. Today, 92% of clients are covered by our AI-enabled service model for day-to-day engagement. Our licensed professionals remain responsible for regulated activities, professional judgment, and compliant delivery. This allows our professionals to spend significantly less time on reputative 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 currently built at 42% of our new AUM. Singapore raised US$158 million in the first half, up 126% year-over-year. And 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 NOAA may be able to gradually shift wealth management from a growth model highly depending on recruiting more RMS to work a model driven by an AI platform, licensed professional plus ecosystem partners. If this model continues to be validator, it has the potential to change our unique 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 NOAA.

Thank you. Thank you very much.

Our international business by segment, our wealth generated net revenues of renminbi $193 million in the first half, including renminbi $88.65 million in the second quarter. All of asset management generated net revenues of renminbi $198 million in the first half. U.S. dollar denominated private equity fundraising reached the U.S. dollar $410 million, up 13.4% year over year. U.S. dollar denominated structured product and hedge fund fundraising reached the U.S. dollar $590 million of 33.2%. Golri 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-network families around the world. Their assets, families, residency, education and next generation planning are becoming increasingly global. Historically, serving these clients stimulationally across Hong Kong, Singapore, Japan, Canada, Australia, the UK, Europe and the United States would have required 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 NOAA to serve Chinese high network families around the world at scale. 以及AI家的生态拓展 如果说一季度是提出被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板 那下半年的核心任务就是从一个样板走向一套可复制

可化市场复制的系统 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AI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

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

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 Empowerless RM, the AI Wealth Management Department, and AI Plus Ecosystem Extension. 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 towards a 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 UK, 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 centralize the AI wealth management capabilities plus local licensed professionals plus local ecosystem partners. AI amplifies 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 core space. If this model can be replicated successfully, we believe it could meaningfully improve the future unit economics of our international business.

而直播团队负责专业判断与合规的交付

The second is to use AI to強化投資能力 and carry the持續兌線. 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的共同投资与加算的方向 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 客户获得好的投资接口就会提高满意度和负投语 富投持续地推动AUM的增长 优质资产最终退出又带来Carry 这个飞轮已经开始赚起来

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 Second, use AI to strengthen investment capabilities and the sustainable realization of Carry On the SSI, we looked through Lili's 60 underlying funds and continuously analyze the common investment and follows-on investment decision of leading robo-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, certification and reinvestment rates would be improved. Reinvestment drives AUM growth and when high-quality assets ultimately realize the value they generate carry. This firewall has already begun to turn.

In the second half, we intend to further deepen the data foundation and improve the efficiency of this system. 这项合作是集团自2024年以来持续推进海外中货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的提供。 Why are these basic tools very important? Because if the AI government government is going to be really to scale-up, the first part of the AI is the only part of the first part. The management, trading, financing, and revenue are all the basic tools to be done. The first-up AI and the second-up平台 must be done at the same time. The global development will be really to build a scale-up.

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 operate scalability across our licensed entities in Hong Kong, Singapore, the United States, and Japan. The relevant services are provided only to non-Mingland Chinese residents, clients who map applicable law regulatory requirements. Why does this infrastructure matter? Because if the AI World 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 transformization must happen together for global expansion to generate true economies of scale.

AI家生态拓展开始与 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 诺尔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的复用 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。 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 lead to rebuild an entire infrastructure, converting products, research, technology, accounts, operations and compliance. Once NOAA 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 fixed costs.

That's why we are still in the process of changing the process. Thank you. 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 全球过程意味着不断的招聘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财富管理部加持牌的专业团队和全球金融基础设施 再加上生态的伙伴的一个网络去服务 分布在全球不同市场的高性质的华人家庭 如果这套模式持续被验证在诺亚未来的增长 将越来越少的取决于增加多少人 而越来越多的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 以及我们的生产网络能够连接多少的专业的伙伴 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 这条路不会一出而就,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 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 profitability, AUM growth, improve the positivity, a working Singapore proof point, and a model that's beginning to demonstrate we play capability. Most importantly, the implementation of the AI World Management Department has given us a much clearer view of something we believe is fundamental. AI is not simply helping NOAA 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-neigh-world families across different markets through a combination of an AI-powered platform plus licensed professional and global financial infrastructures and ecosystem partner network. If this model continues to be validated, NOAA'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 earth. Nor is it evolving from a traditional wealth management institution into an AI-driven global wealth management platform, serving Chinese high-network families around the world. This transformation will not happen overnight, but beginning this quarter, it is no longer simply efficient. It is becoming a real operating model, which clients' AUM revenue profitability and increasingly evidence of repurposed all 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.

Thank you, Doreen, and thank you, Xander. And good day to everyone joining us. As Zender laid out in great detail, just now we're 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 linear operating model enabled by AI and process redesign. As our CEO discussed, U.S. dollar EOM grew 11.7% year-over-year, even as overseas RM headcount declined 36.2%. This is early financial evidence that we're 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 performed income performance income in every year we have reported and it grew 78 in 2025. in hong kong alone we have distributed us dollar 158 million of carry to date supporting the story is a u.s dollar asset base that keeps growing. U.S. dollar AUM up 11.7% and U.S. dollar AUA up 7.5% year-over-year. Of course, it's challenging to forecast carry income because realization depends on market conditions, exit opportunities, and the timing of underlying portfolio realizations. So 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 was 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 decision to sort of walk away from business that does not meet our margin and suitability standards. Recurrent management fees were R&B 360 million, down 10.8% year-over-year and 5% sequentially as legacy RMB private equity assets runoff. A moment more on Kerry 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 Entropic. When realization of care depends on the timing and form of assets, 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 realized is 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 a 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 to sequentially decline. The first quarter was the exceptionally strong RMB fundraising quarter and we advise clients in June to position ahead of the eight-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 U.S. dollar asset base grew. U.S. dollar AUM reached U.S. dollar 6.5 billion, up 11.7% year-over-year. AUA reached U.S. 9.8 billion, up 7.5%. International registered clients were up 11% year-over-year. That is the clearest evidence our misses moving forward 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. When 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 organizations to carry the same service coverage. As Andrew 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, I am dropped year over year, about 36%, when U.S. dollar AUM increased 12%, 11.7%. In Singapore, when we're testing this model end-to-end, AUM has grown from less than U.S. dollar 100 million to more than U.S. $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 costs. On the non-personnel side, second quarter selling expenses dropped 10% year-over-year, Well, for the first half, they were down 18.6% to RMB 92 million. Moving on operating profit and non-gap 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 is down 8.7%, tracking lower quarterly net revenues. For the first half, operating profit reached RMB 452 million of 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 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 $7.2 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. 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 commoditizing was durable in this business the ability to make clients money and to be paid only when they do that is how we're built will co-invest alongside with our funds and clients care 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 campaign matter we made real progress this quarter we accelerated the related share insurance where removes our 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 shareholder's 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. Shareholder's equity was RMB $9.8 billion. We're trading at roughly half of both 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 a sustainable retain returns, we completed our 2025 dividend distribution in July 2026, making our third consecutive year maintaining 100% net income payout ratio and bring 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 U.S. dollar, 34 million. These capital development actions highlight our commitment to enhancing shareholder value and our confidence in NOAA'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 third straight quarter of profit growth, driven by disciplined cost management and increasingly efficient operating model. We're also beginning to see early financial evidence of the new operating model, as Xander just pointed out, U.S. dollar yield continued to grow, increased 11.7 percent year-over-year when the Overseer IAM headcount dropped. Singapore has provided the first meaningful proof point that the AI in milk wealth management model can support asset growth without proportional adding on the IAM headcounts. Secondly, what will need to work? Core commissions and management fees both fell. Overall side acquisition has year to return growth and regulatory headwinds heightened noticeably. Third, what underpins our foundation? Our international business continues to expand in both asset and client count. Our investment franchise maintains unbroken annual track record of generating carry. and a balance sheet remains debt-free with strong in 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. So thank you for your continued trust for time and partnership.

We're now happy to take your questions hi Doreen here since we have the webcast we received a few question let me read through the first one and let management to do the answers first question is from Kevin from Citibank and he's asking on contingent litigation expenses and the related liabilities we noticed there was a referral of contingent, a reversal of contingent litigation expenses in second quarter. Can management give more color on the recent development on the litigation and can we expect more reversal in the next few quarters? Thank you.

So as the CEO Jeff mentioned, in the second quarter we introduced a new settlement plan relating to KEMSI. So as of today more than 80% of our affected client has accepted the settlement plan, so our legacy risk exposure has declined substantially. So as we have made provisions in prior years for the litigation risk associated with all unsettled clients, so we are now making adjustments in the provision balance on a quarterly basis in line with actual settlement progress. Now we are continuing to engage with those those remaining unsettled clients, but unfortunately we cannot make any prediction on the future provision rehearsal because we are still tracking those settlement progress and we will keep focusing on the core operating profit.

Thank you, Jason. And maybe we should open the line to see if that's anyone using the phone to score in if that's any questions.

Yes, ma'am. As a reminder to ask a question, please press star than one. And our first question today comes from Peter Chang at JP Morgan.

Please go ahead. 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matrix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 然后第二个问题是也是关于这个AI的 AI的那个AI财富管理的这个业务的 我想问一些细化的问题 在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在对比旧模型有什么变化 And then in the new AI management model, how to grow and grow and grow our customer base, customer base, customer base. Finally, I want to introduce the AI management movement through our investment management team, how to grow and grow our customer base, 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 Mange 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 be taken and what matrix will you recommend investors to monitor to track the progress of this transition? And do we have any longer-term targets for this AI strategy, say any target in the next three to five years? My second question is also on AI wealth management. I wish to understand for the KPIs you give to your relationship managers, how does the new KPI under the new AI wealth management model look like? And how does this compare to the KPIs in the old models? And how NOAA is growing your account based under the new AI was made model? And can you also give any examples on how AI has improved our, let's say, how AI has improved the productivity for the IMs? For example, the number of cons when RM can provide service to and the number of AUM when RM can serve.

Thank you. 但我们这次反复强调我们在AI不是简单的给一个工具,而是彻底的改变我们的组织模式,我们从一个潜台变成了三个潜台,以前我们只有靠传统的RM一个潜台,现在我们是被AI富人的传统的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家的生态拓展部, 那我们认为在这几个方面都是取得了比较好的成果吧 在IM富人方面我们其实是没有怎么讲呢 就是没有想去特别的触动IM的利益 而是只是希望通过AI富人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IM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 这个对AM本身是它的平静 难度还是非常大的 你想真也不行 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 And then we will be able to use AI-type management to help it. And then the customer will be able to turn it off. Maybe one AI-type management to say in Singapore, we may only have six people, but it can be used to 500 customers. And these customers, there are some of the old customers, but because of the service, it's gone, now it's back again. And the customer will be able to turn it off. The third thing is the environment. We're talking about the world, the world, the world, 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 或者RA在美国那么他们就可以挂在我们这个平台上帮我们转接客户就有点像EM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一业的联盟做房地产的然后做这个教育的那他们有客户但是他没有 我们的词牌代表来转化 我们也会给它一些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AIF了 我觉得这个是可以的 但是效率的提升是缓慢的 Let me do the translation 我先参议一下 王总 Let me do the translation Thanks Peter for the questions So what Charlie was trying to explain that is what we've been elaborating the whole morning is the new system, NOAA 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 repetitively talking about is how we've been using three platforms, which is the AI-empowered RMs. I mean, we still value humans, and AI, yes, can be the tools to empower the performance. But at the same time, it's more about we have built up the AI well-management department, and also we've been having this platform called AI Plus Ecosystem Explanions. So I'll give you some examples. It's, say, in Singapore, we have only six 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 find out that it enhance more than just efficiency and more than just numbers of clients versus how many RMs can cover. And also our experience with the AI plus ecosystem platform, which is that we've been able to cooperate with expertise from different industries, which they may have clients that have well-management needs, but they don't have the license. And cooperating with us, we provide fee 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. So it's no longer just a very traditional way to look at wealth management business under this model. Peter, have I asked a question?

Yeah. he may have asked 关于我们这个转变的过程,大概我们预计会需要多久,会有比较明显的短,还有就是三到五年。 我觉得不是这样的,我们在新加坡的运营从去年九月份开始的,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。 So I think this AI's speed is very fast. So you can see in the 9th of July, we're in Singapore, we're in 8600 million. We're in today's second year, we're over 4 million. And it's a more high margin. So I think it's not 3 to 5 years. It's a very fast speed. We're now, it's very clear that we're going to increase in the world. Japan, we're very fast. We're going to see the progress. I think it's very fast. it's going to change. 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要让我们招募大量m的情况下我们招不到传统的m而且成本也非常高招来的m我们做了一个统计在海外我们这次也有意思的就是淘汰了很多海外的m因为我们发现他们根本带不了新的aum如果他有新的aum他也不会来洛亚他来洛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05年 03年开始到今天已经23年了 我们的客户遍布全世界 他们都已经住在全球 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 理财是离职 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,理财是离职,我们立刻可以接触,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。 Yes, I will add a little bit.

Maybe I will answer Peter's question. The New York market is in Hong Kong. Hong Kong in the past, was in the first stage to use the past in the past, the past, and the past, but the result is very important. And the result is not bad. Now, Hong Kong is changing using the AI-based model to connect the customers' already open. Thank you.

AI-powered platform, licensed professionals, and ecosystem partners. We're just three. I think this is a combination of together. We think we're more common for this approach.

Let me do a brief translation. So Peter, it's probably not the best three or five years because under the AI Earth, changes could be very fast. Which, take Singapore as an example. We've only started the business in September last year with only AUM of around 86 million, but now it's already over 400 million with those AUMs with a really high margin, high-quality AUMs. So what we've been trying to emphasize here is that under the AI-enabled company, we are no longer the transitional model. So it's not about hiring more RM and hopefully the RM can get clients ultimately about AUM. And with that, also explain we've been trying to expand our global footpins. And in Sanders' speech we've already mentioned, we are now replicating the AI model from Singapore to Hong Kong. and we will further expand the offices into different cities as well. But at the same time, the course will be under control and it's no longer the traditional way of wealth management company's model. And that we believe that it's going to have a drastic change in a relatively a lot shorter time compared to being the old model where we've tried it in Hong Kong when we first came here. But it doesn't seem to be a very successful experience. And that's why in Singapore we found the path to success and we are going to repeat that in a lot of different cities as well.

Thank you. And I'm sure there are further audio questions at this time, so I'll hand the call back over to the company.

Thank you. So we have another question here. And which is about the, sorry, the second question here is from Ms. Wang and she's asking, would you be able to tell us more on the different expectations for the current physical year and the periods ahead? Following the presentation on the AI development strategy, may we ask for your view on the anticipated efforts, 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. So I will let management to address about our dividend policies.

So now I will just use English to speak. So as we have just mentioned, you know, for the past three, four years, since 2022, we have cumulatively given out about 2.2 billion RMB, you know, given out the strong position in balance sheet and also highly managed liquidity, we expect to continually to distribute, you obviously a significant portion of the income to our shareholders to maintain high return. 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. And secondly, we believe that, you know, as Chair Lady and also CEO has mentioned, that when AI and Cary continue to push, hopefully, our profitability and earning power and upgrade the business model, we'll be able to sustain at least a comparable level of shareholder returns in the future.

Yes. Thank you, Grant. We still have a – can I check if there's any questions from the phone?

There are no further phone questions at this time.

If that's the case, I think we will wrap up the presentations today. And thank you, everyone, for joining us this morning. And I understand that there may still be further questions. please contact the IR team at your convenient time, and I look forward to talk to you into more details in the near future. Thank you very much.

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