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 then one on your telephone keypad, and to withdraw your question, please press star then 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 NOAA's second quarter 2026 earnings conference call. Joining me on the call today are Ms. Noah Wang, co-founder and chairlady, Mr. Sander Yin, co-founder, director, and CEO, Mr. Grant Tang, 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 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 highlighted 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. Yin, COP's Go Ahead.

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

Hello, investors, analysts, and friends. Thank you for participating in the second quarter of the NOEA Control Group in 2026. In the second quarter, NOEA's transformation has reached a new position. In the first quarter of the conference, we mentioned that the first quarter is more like a starting point for NOEA's new management model to be verified. In the second quarter, We think that this judgment can go one step further. The income of the old model is withdrawing in the future, and our new business model is not only being verified, but also starting to generate income, asset growth and profits. Especially what I want to share with you is that the new model of AI wealth management that we focused on in the past year has formed the first complete sample in Singapore. This quarter, we observed three further clear facts. The first one is that Singapore has used about 10 months to run through the new financial model of the AI Financial Management Department and achieved unit profit in July. The second one is that in the first half of the year, our profit and loss net income of RMB 2.38 billion, our global investment capabilities accumulated over the years are continuing to transform into profits. The third one is that while the number of employees dropped by 17%, our AUM per dollar increased by 11.7%. In particular, the number of RMs overseas has dropped by 36% at the same time, but overseas assets are still growing. This shows that we are gradually breaking the linear relationship between the traditional financial management industry growth that must rely on the growth of RMs. This is also one of the changes we most want to send to the market today. Because the most important meaning of AI is not only to improve efficiency and reduce costs, but also to start changing the way we organize our front desk, the way we serve our customers, and the way we expand the world. Next, I will share with you the four key aspects of China's business, international business, and key work in the second half of the year.

Good morning, everyone. Thank you for joining NOAA Holding's second quarter 2026 earnings call. As we entered 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. Revenues 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, a 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 the first meaningful validation of our AI Wealth Management Department model. In approximately 10 months, and the business achievement monthly profitability in July. Second, performance-based income reached RMB 238 million in the third half of the year, demonstrating how the growth of 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 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 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 would discuss our financial performance, our mainland China business, our international business, and our key priorities for the second half of the year.

The first aspect is financial performance. In the second quarter, the group achieved a net income of RMB 6.2 billion, net profit of RMB 2.16 billion, which increased by 34%. Net profit of RMB 34.8%. Nungat, which belongs to NOA, has a net profit of RMB 2.38 billion, which increased by 25.9%, which increased by 77.8%. Last half year, the net income of RMB 12.46 billion, which increased by 0.1%. have increased their net profit by 4.52 billion yuan, which is 30.3% higher than before. Their net profit is 36.3%, which is 8.4% higher than before. Nungap's net profit is 3.72 billion yuan, which is 3.9% higher than before. This quarter marks the 63rd consecutive quarter of Nungap's profit since its launch. The total revenue and the basic average of last year, but the revenue structure and operating efficiency have changed significantly. I would like to talk about this change I would like to talk about this. First, the old model of relevant income is on the way to exit. In the first half of the year, the total gross income fell by 36%. Among them, it was mainly the stock market that fell by 53.8%. This part of the contraction is our strategic choice. The specific situation of mainland China and international business will be explained separately later. On the other hand, the relevant income of investment capabilities is on the line. In the first half of the year, the profit of the business, that is, the carry, the carry of the founder base, the net income reached RMB2.38 billion, which increased by 364% in the same ratio. The revenue of the investment type is 13.4% in the same ratio, and the investment income is RMB3,979,000, which was a loss in the same period last year. At the same time, the operating efficiency continues to increase. In the first half of the year, the operating cost and cost decreased by 11.6% in the same ratio, of which the labor cost decreased by 12.7%. These numbers have cost-efficiency and organizational efficiency contributions behind them. But what we think is more worth paying attention to is that NOIA is starting to use a more light, more digitalized, more dependent platform ability, rather than simply relying on the expansion of the number of people. This is the structural change we have seen since we continued to invest in AI in the past few seasons.

In the second quarter, we generated net revenue of RM620 million. Operating income was RM216 million, up 34% year-over-year, with an operating margin of 34.8%. Non-GAAP net income attributable to law was RM238 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 the North's 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 36% 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 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 are what we call carry, which the 238 million renminbi 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 the 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 begins 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.

We have a clear view of the profit structure. The transition period profit is supported by carry. will all be supported by the cost-efficiency record. In the future, the real recovery growth of operating income will depend on the new growth engine and me. Among them, the ASF Management Department is one of the new growth engines that we are focusing on verifying. This is one of the core tasks of management in the second half of the year. We maintain the judgment at the first quarter meeting. The annual operating rate remains at more than 30% healthy.

Our view of the earnings structure is clear. During the transformation period, career realization and course discipline provide 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 the 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.

Why are you carrying? Carrying is definitely not Weiguo Wu, Jing Pan, Weiguo Wu, Jing Pan, Weiguo Wu, Jing Pan, have accumulated the information advantage in the first two layers, turning it into a higher return and higher concentration source of carry. These three layers constitute the product line of our rolling launch. Funds established in different years are in different stages of life. Continuous early-stage funds enter the harvest stage, so that carry has the basis of rolling line, rather than relying on one project to generate revenue. On the other hand, AI data capability is further strengthening this investment system. In the asset section, we have already set up the core assets in the global AI value chain. At present, many assets are still in the early stage of value release. We have penetrated nearly 60 subsidiaries, through institutionalized data systems and cross-examination, to observe what excellent companies are investing in, what they are continuing to add, and where the asset and industry trends are heading. In the customer section, AI has begun to help us solve another very important problem, will be selected by the right product and the right customer at the right time and match the right product to the right customer. The customer's understanding and configuration ability are connected by data. The deeper the data is accumulated, the more accurate the judgment is. After the customer obtains a good investment result, the return and AUM will increase and eventually carry on. This is the long-term flying wheel we hope to build. Carrie 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 front 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 ventages are at different stages of their life cycles. As earlier funds progressively enter the harvesting periods, 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 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 realisation. We look through these 60 underlying funds and use institutionalised 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 fight we are working to build. Our Hong Kong platform has historically distributed a cumulative US$158 million in carry already, demonstrating a track record of actual realisation. Of course, Alternative investments 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.

In terms of revenue and scale, in the first half of the year, the company's revenue was 40.5 billion yuan, which increased by 22.4%. Of which, the U.S. product's revenue was 24.5 billion yuan. 8.4% growth rate, 41% ratio. As of June 30th, AOM's growth rate has reached RMB1409 billion. AOM's growth rate is 65 billion. 11.7% growth rate. AOM's growth rate is 7.8 billion. As of June 30th, AOM's growth rate is 7.5%. As of June 30th, AOM's growth rate is 7.8 billion. Weiqui Ling, Youxi Fuzai, Li Shi, Chen Xing, Yi Liu's project issues have achieved key progress in this quarter. In the first half of the year, we completed the issuance of stocks for customer reconciliation. In the second quarter, we launched a new reconciliation plan for customers who have not yet been reconciled. The number of investors who signed and accepted continues to increase. Due to the very high number of broadcasts in the previous period, the second quarter recorded a part of the return of broadcasts. This history is uncertain. I think the problem has been clearly identified.

In terms of transaction values, total fundraising reached RMB 40.5 billion in the first half, up 22.4% year-over-year. U.S. dollar denominated product fundraising reached 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 to sequential growth and reached RMB $140.9 billion. U.S. Dollar Denominator AUM reached the U.S. Dollar $6.5 billion, up 11.7% year-over-year, while U.S. Dollar Denominator AUA reached the U.S. Dollar $9.78 billion, up 7.5%. Our balance sheet remains strong. As of June 30th, we held approximately RMB 5 billion in cash, cash equivalents and short-term investments with zero interest-bearing debts. We also made important progress this quarter in resolving the legacy canvassing matter. During the first half, we computed 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.

The second part is business in Mainland China. Mainland China's business has a long-term direction. have returned to the original source of investment and asset allocation to standardize assets with long-term asset allocation values. In the second quarter, mainland China's business net income is RMB 3.84 billion. In the first half of the year, the total RMB was RMB 7.76 billion, which increased by about 20.7%. In the second half of the year, the total RMB was RMB 82.7 billion, which net income was RMB 4.14 billion, which increased by about 59.8%. For Zhengxing, our business concept is also getting simpler and simpler. The most important question is whether the client has made money. We look at the profit of customers, the flow of customers, and the profit of capital investment. At that time, the price of products was based on the defense strategy such as quantitative center, CTA, etc. In the current market environment, we do not pursue a simple large-scale, but pay more attention to the quality of assets, the investment results of customers, and long-term trust. Gefei's first half year net income of RMB3.4 billion is the same as last year's basic quality. China's mainland insurance business's first half year net income of RMB338.2 million. For this kind of traditional high-end insurance business, we have taken the initiative to shrink and stop it, gradually turning to comprehensive services such as family inheritance. This adjustment took place before supervision requirements, and we took the initiative to choose based on long-term customer value. The future position of business in mainland China is also getting clearer and clearer, focusing on the second-tier market to serve customers with professional investment capabilities and asset allocation capabilities.

Our Mainland China business continued in the direction we established in the third 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. North 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. Gova generated net revenues of RMB341 million in the first half, broadly flat year over year. Our mainland China insurance business generated net revenues of RMB382 million in the first half. We have proactively reduced and gradually exceeded the traditional high commission protection product model. shifting instead toward comprehensive services such as family succession and in-heritage 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 answer allocation of capabilities and use AI to improve client engagement and service efficiency.

Okay, the third aspect is international business. The new model of the AI Financial Management Department has started to land. In terms of international business, in the first half of the year, the international market gross income of RMB 4.69 billion accounted for 37.7% of the group's gross income, which is 21.9% lower than before. This gap needs to be disassembled. and many more. After these two parts, the US dollar investment product revenue and last year's basic food and customer assets still maintain growth. The US dollar AUM increased by 11.7%, and on June 30, overseas registered customers, 21059 people, increased by 11%. Weiguo Wu, Jingbo Wang, Wing Shan Ng, Hong Li, Zhe Yin, Sonia Han We think the change is especially important. Until the end of the second quarter, the number of overseas RM has dropped by 36.2%. At the same time, the U.S. dollar AM has increased by 11.7%. According to the management logic of traditional wealth management companies, these two things usually do not happen at the same time. Because the growth formula of the past industry is very simple. More RM brings more customers. More customers bring more AM and income. We have been trying to change this formula for the past year. In the first quarter of the press conference, we introduced the three frontiers of Noya in a more complete way. The first one is AI-powered R&D. The second one is AI-powered wealth management. The third one is AI-powered ecological expansion. After the second quarter, we began to see the second frontier, which is AI-powered wealth management, from the organizational concept to the real business. What is AI-powered wealth management? It is not simply to add a few AI tools to traditional R&D. It is essentially a new way of organizing the frontiers of wealth management. In the past, a customer usually corresponded to one RM. Customer experience, product understanding, service frequency, and even a lot of information are highly dependent on this RM person. This means that traditional financial management is very difficult to scale, especially overseas. And the AI Financial Management Department tries to reshape this process. AI and centralized financial management teams carry a large number of high-level standardized and digitalized customer management and daily services. and other professional teams to complete the critical part that requires judgment, compliance, and professional responsibility, and expand the source of customers through eco-cooperative partners. Such a customer is no longer just a certain RM, but has the ability of the entire NOEA platform. This is also where we think AI really changes the financial management industry, not to make a RM write materials faster, but to let financial management have the first chance to enter an institutional production mode from a personal production mode.

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 asset continued 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 hat count was down 36.2% year-over-year, while US dollar denominator AUM increased by 11.7%. Under the transitional 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 North's future operating model. First, AI-empowered RMs. Second, the AI Wealth 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, move from an organizational concept into a real operating model. So what is the AI Wealth Management Department? It is not simply about giving conditional 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 were highly dependent on that individual RM. This makes traditional wealth management industry inherently difficult to scale. the AI Wealth Management Department sits 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 NOAA 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.

新加坡AM从不到1亿美元增长到二季度超过4亿美元。 have achieved single profit in July this year. What is more worth paying attention to is its growth. At present, the AI-powered team has accepted 92% of the client's daily income, and the production team is responsible for the harmonization and professional interaction. This means that professionals can take a lot of time from repetitive administrative tasks, organize information, and release it in standard service, and invest more in things that humans really need to accomplish, understand customers, established trust, judged demand, and made important decision-making communications. At the same time, external partners contributed 42% of the new AUM. In the first half of the year, Singapore has accumulated US$1.58 billion, which has increased by 126%. The entire process of this growth did not depend on the large-scale expansion of RM. For us, the importance of this number is not only the growth of Singapore's business, but also its first proof. In addition, it is possible to take wealth management from the growth model of high-reliance recruitment of RM in the past 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 that growth was achieved. Today, 92% of clients are covered by our AI-enabled service model for day-to-day engagement. are 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 servicing, and more time on the things that truly require human capability. Understanding clients, building trust, identifying needs, and communicating around important decisions. and AI at the same time. External ecosystem partners contributed 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 headcounts. 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 toward 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 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 NOAA.

According to ARC Finance, the first half of the year, ARC's revenue was 1.93 billion yuan, which is 8,895 million yuan in the second quarter. The first half of the year, OREO's revenue was 1.98 billion yuan, which is 4.1 billion yuan in the first quarter, which is 13.4% increase. The second half of the U.S. dollar has been crystallized, and the total amount of fund-raising products is 5.9 billion U.S. dollars, which is 33.2% of the total growth. Glory has been passed down for the first half of the year, with a net income of RMB 78.24 million. The independent agent network has expanded to 238 people. Our international business strategy has not changed. We continue to focus on serving high-end Chinese families around the world. Their assets, families, identities, education, and the next generation are becoming more and more globalized. In the past, in Hong Kong, Singapore, Japan, Canada, Australia, Britain, Europe, and even the United States, these customers needed a huge local R&D and operation organization. Therefore, it is difficult to achieve an economically effective global coverage. AI wealth management has changed exactly this global cost structure. In the past, many customers were not dense enough and could not scale up the economically covered market. Looking at our international business supply segment, ArcWealth generated net revenues of RMB 193 million in the first half, including RMB 88.65 million in the second quarter.

All of asset management generated net revenues of RMB 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 structural products and hedge fund fundraising reached the U.S. dollar 590 million, up 33.2%. Gold rate generated net revenues of RMB 78.25 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, 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 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 NOAA to serve Chinese high-net-worth families around the world at scale.

The fourth part is the focus for the second half of the year, moving from a sample to a repeatable system. In the first quarter, we proposed a new model of three front desk cooperatives, which is AI-reinforced R&D, AI's wealth management department, and AI's ecological expansion. If the first quarter is a preliminary verification of B-examination, then the biggest progress in the second quarter is that the AI wealth management department has already appeared as the first elite sample. In the second half of the year, the core task is to go from a sample to a set of repeatable systems. We specifically focus on four things. First, Weiguo Wu, Jing Pan, Weiguo Wu, Jing Pan, Weiguo Wu, Jing Pan Weiguo Wu, Jingbo Wang, Wing Shan Ng, Hong Li, Zhe Yin, Sonia Han, Wing Shan Ng, Hong Li, Zhe Yin, Sonia Han

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 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 is the 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 centralized 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 cost base. If this model can be replicated successfully, we believe it could meaningfully improve the future unit economics of our international business.

Yeah. We use AI to strengthen investment capabilities and continue to line up with carriers. On the asset side, we continue to observe the direction of joint investment of the world's excellent GP through the transmission of up to 60 digital data. On the customer side, we use AI data capability to improve the efficiency of the match between the product and the customer. This is not a simple product recommendation. Our goal is to understand the customer's real needs, risk tolerance capability, and have asset structure and historical investment behavior, and then find a more appropriate asset. Second, use AI to strengthen investment capabilities and the sustainable realization of carry.

On the asset side, we look through the 60 underlying funds and continuously analyze the common investment and follow-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 clients. 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 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.

第三個是繼續加強海外運營基礎的設施 本季度集團繼續推進海外運營基礎設施的一個建設 我們集團與美國石牌銀行機構Columb Bank, Column National Association建立了合作 to improve the opening of overseas customer accounts and the processing capability of multi-type settlement and payment. This cooperation is a part of the group's continued promotion of overseas mid-range capacity construction since 2024 and will support Hong Kong, Singapore, the United States, and Japan to develop the entity to improve the efficiency and operability of customer service and operation. The relevant service is only in line with the provision of non-Chinese domestic residents and customers that meet the local legal requirements. Why are these basic facilities very important? It is because if the AI Finance Management Department wants to really cross-area scale the future, the front desk AI is just one of them. The execution of accounts, transactions, payments, regulations, and assets must form a unified and efficient basic facility. Front desk AI and back desk platformization must occur at the same time. Global expansion can really form a scale economy.

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 scalability 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 met 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. from Office AI Transformation, and Back-end Performing Must Happen Together for Global Expansion to Generate True Economies of Scale.

第四個是由AI的能力建立全球的生態夥伴的一個網絡。 針對企業戰略業務的平台,我們累計AUM已經超過了3300萬美元。 The business partners have already started. The first partner institution has been registered in Hong Kong and Singapore. All legal and military food and beverage operators have been completed. We are gradually seeing the third front desk, AI plus ecological expansion, begin to form a link with the AI wealth management department. In the future, an ecological partner does not need to rebuild the entire set of products, research, technology, accounts, operation and regulatory infrastructure. Last but not least, build a global ecosystem partner network powered by AI.

Our enterprise-focused platform has now accumulated more than US$30 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 third 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 built 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 technicals.

In comparison to the previous few seasons, our confidence in the future business model comes from more and more real data. In the first season, the new business model has begun to be gradually verified. In the second season, we have seen the growth of profits and AUM, the improvement of efficiency, and the improvement of the model of Singapore, as well as a set of mechanisms that can be copied, especially the landing of the Financial Management Department of AI, which made us see it more clearly for the first time. AI not only helps NOEA to make today's things cheaper and faster, may help us do things that the traditional wealth management model couldn't do in the past. Under the traditional model, global expansion means continuous recruitment of R&D, construction offices, and increased fixed costs. Under the new model, we hope to serve high-quality Chinese families in different markets around the world through the AI wealth management department, the professional team of Chi Pai, and a network of global financial infrastructure and ecological partners. If this model continues to be verified in the future growth of Noya, will be less and less depending on how many people are added, and more and more depending on how many customers our platform can serve, how many customers our AI can understand, how many values our asset platform can create, and how many professional partners our production network can connect with. This is the real change of the financial management company of the AI era that we understand. Noya has gradually turned from a traditional financial management organization into a globalized, Weiguo Wu, Jingbo Wang, Wing Shan Ng, Hong Li, Zhe Yin, Sonia Han, Weiguo Wu, Jingbo Wang, Wing Shan Ng, Hong Li, Zhe Yin, Sonia Han

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, improved positivity, a working Singapore proof point, and a model that's beginning to demonstrate replicability. 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 nor 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, 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-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 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 Xander laid out in great details 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%. Nungap 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 AUM 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 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 tariff 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. 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 tradition to sort of 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 and 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 Entropic. 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 realizes driven and will not be smooth or linear from period to period and should not be annualized of any single quarter. Accrued amounts move with valuations in both directions. We do not accrue carry or forecast carry. We're recorded 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 and a quarter, up 1.1% year over year and down 26.4% sequentially. First half volume was RMB 40.5 billion, up 22.4%. U.S. 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 we advised clients in June to position ahead of the A share adjustment that did come in in July. We tracked 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 business is moving forward in 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 organization 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, IOM dropped year-over-year about 36% when US dollar AUM increased 12%, 11.7%. In Singapore, When we're testing this model end-to-end, AUM has grown from less than US$100 million to more than US$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, 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 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 income. On the bottom line, second quarter non-daffing 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 remained 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 a 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 on portfolio at work. Income from equity affiliates was a gain of RMB 55 million in a 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 class money and to be paid only when they do. That is how we're built. We'll 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 canvassing matter, we made real progress this quarter. We accelerated the related share insurance where we removed a significant piece of uncertainty and we launched a new settlement plan for the remaining colonies. 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 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 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 US dollar 34 million. These capital deployment 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. Whilst we're beginning to see early financial evidence of the new operating model, as Xander just pointed out, U.S. Dollar Aon continued to grow, increased 11.7% year-over-year when the Overseas Iron Headcount dropped. Singapore has provided the first meaningful proof point that an AI-enabled wealth management model can support asset growth without proportionally adding on the item headcounts. Secondly, what will need to work? Core commissions and management fees both fell. Overall site acquisition as 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 talent. Our investment franchise maintains unbroken annual track record of generating carry, and our balance sheet remains debt-free with strong in liquidity, fully backing our high payment commitments. The financial objective behind the 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, Dorian here. Since we have the webcast, we received a few questions. 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 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 reversal in the next few quarters? Thank you. Okay.

I'll take that question. So as the CEO just mentioned, in the second quarter, we introduced a new settlement plan relating to chemistry. So as of today, more than 80% of our affected clients 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 adjustment in the provision balance on a quarterly basis in line with actual settlement progress. Now we are continuing to engage with 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'll keep focusing on the core operating profit.

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

Yes, ma'am. As a reminder, to ask a question, please press star then 1. And our first question today comes from Peter Chang at J.P. Morgan. Please go ahead.

Thank you for the opportunity to ask questions. Congratulations to Noya for achieving excellent secondary education performance. I will ask two questions here. The first is that the management has mentioned that we are now in a transitional stage, and then our AI strategy has also achieved certain progress. I would like to ask if the management thinks that this transitional How long will this phase last? What matrix do you think our investors can pay attention to to master the progress of this transformation? In the medium term, let's see what our goals are in three to five years. The second question is also about the AI wealth management business. I would like to ask some detailed questions. For our investment fund, what is the KPI of the investment fund we are now giving? And what are the changes in these KPIs compared to the old model? And under the new AI financial management model, how do we grow and expand our customer base? Finally, Mr. Kofo, please introduce the drive of AI to improve the productivity of our investment managers. For example, how much has the number of customers of an R&D service increased? How much has the number of AOMs of an R&D management increased? What are the changes compared to a year or two ago? Thanks for giving me the opportunity to ask questions. This is Peter Zhang from JPMorgan. Congratulations on the very strong second quarter result and I have two questions. First is, Manju mentioned 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 target for this AI strategy say any targeting 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 the new KPI under the new AI Wealth Management model look like and how this are compared to the KPIs in the old models and how NOAA is growing your account base under the new AI Wealth Management model and Can you also give any examples on how AI has improved the productivity for the RMs? For example, the number of times when RM can provide service to and the number of AUMs when RM can serve. Thank you.

I think it depends on how you... I'm Nora Wang I think it depends on how you understand the problem If we just look at the improvement of the efficiency of R&D, I think this is a more traditional model. It's equivalent to you giving R&D some more AI tools and improving the efficiency of work. Of course, this is necessary. But this time we repeatedly emphasize that we are not simply giving a tool in AI, but we have changed our organizational model thoroughly. We have changed from one front desk to three front desks. In the past, we only relied on the traditional R&D front desk. Now we are the first traditional R&D that has been restored by AI. Weiguo Wu, Jing Pan, Weiguo Wu, Jing Pan Then let it have space to serve more customers But the traditional IAM's customer expansion itself will not be too fast We also did a lot of data analysis You may find that the AUM of single customers has increased But you have to increase the number of customers This is very difficult for IAM itself You can't do it if you want to But the financial management department of AI is based on operation to serve customers This number this and many more. Some of them are our old ones, but because of Army's service or loss, it's gone. Now it's back again, and the client's transfer. The third type is ecological expansion. What we are talking about today is the global business in Asia. For example, in Japan, Canada, and Australia, we can find these relatively small independent fellowship advisors that serve Chinese people or RAs in the United States. Then they can hang on our platform Help us transfer customers It's a bit like EM's model Our effect is also very good Because these customers are originally their customers There are also some business alliances Do real estate Then do this education They have customers But they didn't transfer it to him He came to us After that, we will give him some marketing fees We think this effect is very good He promoted our expansion Our increase today Let me do the translation. Thanks, Peter, for the questions. So what Chelys was trying to explain is that

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 web management department, and also we've been having this platform called AI Plus Ecosystem Explanations. 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 found out that it has 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 wealth 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 ways to look at wealth management business under this model. Peter, have I answered the question? Yeah. And... No, no, no. 我觉得不是这样的。 我自己我们在新加坡的运营从去年9月份开始的。

We think that after one quarter, there will be a huge change. Because in the AI era, everything has been accelerated. It's like we are doing a system development today. If we can't do it in two weeks, it will definitely go in the wrong direction. So I think the speed of AI is very fast. So you can see that in September last year, in Singapore, our AUM was 86 million. Today, in the second quarter, we are more than 4 billion. And we all have high-quality AUM. So I personally don't think it will be three to five years, but it's a very fast speed. We have seen a lot of progress in Japan, and I think there will be a change in the next two seasons. In Canada, Australia, and Europe, we will have our points open. In the past, we were more cautious and didn't dare to open. The reason is that we couldn't get traditional arms in the situation where we had to recruit a large number of arms. Weiguo Wu, Jing Pan, Weiguo Wu, Jing Pan, We have been in this industry for many years. We have been in this industry for many years. We have been in this industry for many years. We have been in this industry for many years. We have been in this industry for many years. We have been in this industry for many years. We have been in this industry for many years. Why? Because all the customers are operated by us on the platform. We can immediately contact you if you want. This is what I think brings a big difference. It's definitely not a three or five-year change. It's a full-scale acceleration in the era of AI. And we are very confident that we can serve them well.

Yes, I would also like to add a little bit to answer Peter's question. Weiguo Wu, Jing Pan, Weiguo Wu, Zhe Yin, Sonia Han AI-powered platform, licensed professionals, and ecosystem partners. We have three of them.

Let me do a brief translation.

So, Peter, it's probably not about three or five years because under the AI era, changes could be very fast. 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 AUM 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 footprint and in Sander's 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 Weiguo Wu, Jing Pan, Weiguo Wu, Jing Pan 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 sorry we don't have any 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 fiscal year and the periods ahead? Following the presentation on the AI development strategy, may we ask for your view on the anticipated 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 would like management to address about our dividend policies. 关于我们的那个派试的情况,公司能给一个简单的介绍吗? 潘总。

So as we have just mentioned, for the past three, four years, since 2022, we have cumulatively given out about 2.2 billion RMB, given out a strong position in balance sheet and also highly managed liquidity. We expect to continually to distribute, you know, obviously a significant portion of the income to our shareholders to maintain high returns. 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 Carey continue to push hopefully our profitability and earning power and upgrade the business model I will be able to sustain at least a comparable level of shareholder returns in the future. Doreen?

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 IELTS team at your convenience time and I look forward to talk to you in 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.