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spk09: Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Highway and Heritage Limited Third Quarter Fiscal 2021 Earnings Conference Call. Well, at this time, all participants are in the listen-only mode. We will be hosting a question and answer session after the management's prepared remarks. I'll now turn the call over to the first speaker today, Mr. Nick Hsiao, Vice President of Highway and Heritage. Please go ahead, sir.
spk03: Thank you, operator. Hello, everyone. On the call with me today are our director and CEO, Madam Wang Dian, and our CFO, Mr. Zhou Huicheng. I will translate for the CEO and the CFO and then host the Q&A session. You can refer to our third quarter fiscal year 2021 financial results on our company's IR website, ir.highwindwealth.com. Before we start, please note This call may contain forward-looking statements made pursuant to the safe harbor provision for the private security litigation reform act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievements of the company. Hello, everyone.
spk10: Hello, everyone. Welcome.
spk03: And thank you all for joining today's call for high-winged and lauded financial results for the third quarter of fiscal year 2021. Our recent listing on NASDAQ was a major milestone in our corporate journey. We are committed to creating long-term value for our clients and investors and look forward to earning your trust through our performance, prudence, and hard work.
spk10: 2021 is the third year of the fiscal year. China's economy has grown rapidly, and investment and financing activities have continued to rise. This has created good external conditions for the rapid development of the wealth management industry. After the global market fluctuation in 2020, China's high-profile customers have a stronger understanding of objective, stable, and systematic asset allocation services. Customers have a higher requirement for the professional capabilities of wealth management institutions, and the overall planning capabilities. During the third quarter of fiscal year 2021, China continued its strong economic recovery with acceleration investments and the financing activity. This provided
spk03: a supportive backdrop for the wealth management sector. After experiencing the global volatilities of 2020, Chinese high net worth clients demand unbiased and high quality asset allocation services. And the challenge is that wealth manages more than ever to deliver robust investment advisory and holistic solutions. We were able to meet these challenges and achieve exceptional financial performance by focusing on the core elements of our strategy, to fulfill clients, to empower our talents, and to drive innovation and efficiency through technology.
spk10: In the third fiscal year of 2021, we achieved a revenue of 4.63 billion RMB, which is a 46.5% increase. The net profit of shareholders is 6,187 million RMB, which is a 97.6% increase. Whether it is revenue or net profit, we have created a record high since the beginning. We believe that high-quality growth in income and profits is the natural result of the correct strategy and efficient execution. The results of this quarter also prove this point again.
spk03: During the third quarter of fiscal year 2021, we achieved all-time highs in both net revenues and net income. Our net revenues were ranging from 463 million, increasing 46.5% year-on-year, Net income attributable to shareholders was RMB 61.87 million, increasing 97.6% year-on-year. We believe that strong financial performance is a natural result of a meticulous execution of a good growth strategy. This was proven once again in this quarter.
spk10: As a customer, 2021 is the third fiscal year. Our total number of customers reached 124,043. This shows that our customer capacity and customer relationship maintenance capacity are continuing to improve. At the same time, our current number of active customers has increased by 24.7%, reaching 29,064 people, creating a new record. This shows that we have further improved the activity level and performance contribution of the customer group based on large data such as customer division, customer image, and customer demand detection capabilities. For example, in this quarter, the amount of customer asset allocation of Smole products reached RMB 3.38 million, which increased by 14.5% compared to the same period this year. This shows that the deployment efficiency of customer funds has been further improved. The rapid growth of customer size also relies on high-quality investment and investment capability. Our asset configuration suggestions across asset categories and across trading strategies have been continuously examined in the market cycle and have won the trust of customers and have been fully recognized by customers. As of March 31, 2021,
spk03: Our total clients had grown to a historical high of 124,043, increasing 13.5% year-on-year. This was made possible by our efficient client acquisition and the strong client servicing skills. Meanwhile, our active clients in the quarter reached a new record of 29,064, increasing 24.7% year-on-year. The growth in client activities was proven by our use of data analytics to sharpen client documentation, client profiling, and client needs discovery. The average transaction ticket size per client of a privately-raised product during the quarter increased 14.5% year-on-year to randomly 3.38 million, demonstrating the increased efficiency in our client's asset allocation. The continued growth in our client base was also supported by our high-quality research and advisory services. Our investment advice for clients across asset classes and across investment strategies has been proven through mock cycles and is trusted by our clients. During the quarter, we hosted 484 online and offline client events with more than 13,000 high-net-worth clients in attendance. In April, we unveiled our 11th after-allocation white paper entitled A New Strategy for New Contexts. This white paper has been read by more than 35,000 of our clients to date, another testament to our intellectual leadership.
spk10: According to the scale of the business, in 2021, the third fiscal year, the financial management section increased the amount of asset allocation to 21.7 billion RMB, which is 22.5% of the total growth. Among them, the added configuration amount of Smoot products increased by 53.2% to 201 million RMB, which is a record high. This is due to the continuous expansion of our Smoot product range. The quality control of the premium-type supply chain is more in-depth, and the digital sales platform X-Link accurately matches the needs of customers with the characteristics of the product. For example, in this quarter, we continue to increase the number of cooperating private institutions, attracting more and more high-quality trading opponents. The strategic distribution and freshness of the configuration has basically been fully covered. At the same time, the newly added configuration amount of public products is 15.8 billion RMB, which has dropped by 65%. However, the asset configuration amount of private securities products has increased by more than 116 times, reaching 5.2 billion RMB. During this quarter, the aggregate transaction value of world's natural products reached R&B 21.7 billion, increasing 22.5% year-on-year. Notably,
spk03: The transaction value for privately-raised products during the quarter reached historical high of RMB 20.1 billion, growing 53.2% year-on-year. The growth was supported by our expanding product range, rigorous due diligence, and its ability to accurately discover client needs through the X-Link digital sales platform. During the quarter, we added more products to our product menu. We also kicked off collaboration with additional asset managers to extend our scope to cover the full range of product tenets and investment strategies. During the quarter, our transaction value for publicly raised products was RMB 1.58 billion, a decrease of 65% year-on-year. However, our transaction value for private security funds increased by more than 116 times to reach RMB 500.2 million. These numbers reflected the migration within the liquid space from momentum-driven mutual funds to performance-driven private funds. This is a trend encouraged by our long-term investment philosophy.
spk10: In the third fiscal year of 2021, our total operating cost is 3.7 billion yuan, which is 35.8% lower than the increase in operating income at the same time. The increase in operational efficiency is also due to the continuous flattening, compactification, and high-efficiency of our organizational structure. For example, the two regional sub-centres such as Yuegang 2 and Jingjingji, which we have established, have also had an active role in improving decision-making efficiency and strengthening cross-sector sales. During the quarter, our total operating costs
spk03: increased 35.8% year-on-year to RMB 371 million, growth slower than our revenue for the same periods. Our continued efficiency gains were the result of our transition towards a flat and nimble organizational structure. For example, we established two regional headquarters in the Greater Bay Area and the Bohai Economic Ring to increase responsiveness for regional trends, accelerate decision-making, and promote cross-selling among local teams. In addition, we have been very effective at guiding operations with our specialist committees, which combine expertise with accountability. Meanwhile, we continue to deploy technology in our procurement, resource allocation, and efficiency tracking to further optimize costs.
spk10: In the third fiscal year of 2021, the efficiency of the financial team has also improved. Li Caishi's new asset allocation amount reached RMB 13,670,000, which increased by 32.4%. Li Caishi's revenue exceeded RMB 290,000, which increased by 58.3%. The improvement of Li Caishi's team is due to the contribution of the professional training system and the transformation of our incentive mechanism towards long-term equity. During the quarter, our relationship managers continue to raise their productivity.
spk03: Transaction value per Registration Manager was RMB 13.67 million, increasing by 32.4% year-on-year. Net revenue per Registration Manager exceeded RMB 290,000, representing a substantial increase of 58.3% year-on-year. These efficiency gains were powered by our excellent training regime and the gradual transition of our compensation practices equity-based assistance, igniting the entrepreneurial passion of our people. In addition, we continue to upgrade the functionality of our technology platform to enhance client needs discovery and expand sales touchpoints, further boosting the productivity of relationship management. 还有几个信息在这里与大家分享。
spk10: In March 2021, the Swiss Stock Exchange listed the company Rysen Bank in Hainan and signed a strategic cooperation agreement with Hainan to provide global wealth management solutions to Hainan's customers. In April, the global wealth management industry's top magazine, Wealth Growth in Asia, won the award of the best wealth management institution in the Hainan Central China Region. In May, Wande, China's largest financial information platform, I would like to share some exciting recent developments.
spk03: In March, we signed a strategic collaboration agreement with the BP Bank, a company listed on the Swiss Stock Exchange, to provide hiring clients with global wealth management solutions. In April, High Wing was voted the best wealth manager of Greater China out of the Wealth Briefing Asia Greater China Award 2021. In May, Wings Info, China's largest financial information provider, began publishing High Wing Research Institute's reports to their subscribers who are mostly professional investors and institutions. These achievements are tribute to high-wing leadership position in China's wealth management sector and reflects our operational excellence and commercial success.
spk10: As the world enters the post-pandemic era, the distance between clients and wealth management agencies is getting closer and the relationship is getting deeper. Thank you again.
spk03: The world enters a period of recovery and adjustment. The bond between clients and the wealth managers has grown closer and stronger. Today, highway is combining growth with excellence, delivering value in addition to scale, and leveraging success in China to build a global brand. guided by client insights, backed by technology, and empowered by our passionate people. We are fully confident in delivering high-quality and sustainable growth throughout economic cycles. Thank you. Now I would like to pass on to our CFO, Mr. Zhou, to review our financial results for the third quarter of fiscal year 2021. Thank you for attending our call.
spk05: All the financial data mentioned above Hello, and thank you for joining us today. Before I proceed, please note all numbers presented are in renminbi terms, and therefore the third quarter of fiscal year 2021 ended March 31st, 2021.
spk03: while all the comparisons and the percentage changes are year-on-year, unless stated otherwise.
spk05: In terms of income, this quarter's company's income has grown strongly, reaching a total of RMB4.63 billion, with a growth of 46.5%. The growth of income mainly comes from the financial management business. In this quarter's income, the financial management business has reached RMB4.26 billion, with a growth of 49.9%. The growth of this business is mainly due to the rapid increase in the amount of asset configuration of our private property. Secondly, the income of this season's insurance economy business is 25.77 million RMB, which decreased by 14.7% in the same period in 2020, mainly due to the travel restrictions related to the COVID-19 epidemic, so that the channels for obtaining business income are affected. Thirdly, the income of this season's asset management business is 5.33 million RMB, We achieved strong growth during the quarter as our total net revenues increased by 46.5% year on year.
spk03: to RMB $463 million. Growth was primarily driven by our wealth management services, which increased revenue by 49.9% year-on-year to RMB $426 million. Growth for this segment was mostly due to increased volumes in privately raised products. Net revenues from insurance brokerage services were RMB $25.77 million, decreasing by 14.7% year-on-year. mostly due to travel restrictions related to the COVID-19 pandemic. Net revenue from after-match services will remain the $5.33 million, increasing by 265.5% year-on-year, as client interest in offshore funds and mandates continue to grow. Net revenue from other services will remain the $6.2 million, mostly from technology consulting and other value-added services.
spk05: Alright, in terms of cost, The total operating cost and cost of this quarter is RMB3.71 billion, which is 35.8% of the total growth, and the growth trend is consistent with our income growth. Among them, the salary and welfare of employees is 37.5% of the total growth, and the sales cost is 21.7% of the total growth, and the management cost is 19.4% of the total growth, which is in line with our income growth. In terms of profits, the operating profit of this quarter is RMB9,182 million, The net profit is 6,187 million yuan. The net profit is 97.6%. In this quarter, the basic income of each ADS is 2.46 yuan. The net income is 1.25 yuan higher than that of 2020. Each ADS corresponds to two companies' average income. For the quarter, total operating costs and expenses for RMB321 million, increasing by 35.8% year-on-year, in line with our net revenue growth.
spk03: Looking at the cost breakdown, cost of compensation and benefits increased by 37.5%. Sales and marketing expenses increased by 21.7%. General and administrative expenses increased by 19.4%. All these changes were in line with our revenue growth. Income from operations increased by 115.3% year on year, to remain being 91.82 million. while net income increased by 97.6% year-on-year to RMB $61.87 million. Basic and diluted earnings per ADS were both RMB 2.46 compared to RMB 1.25 in the same period of fiscal year 2020. Each ADS represents two of the company's ordinary shares. As for our balance sheet, we have RMB $404 million in cash, cash equivalents, and restricted cash as of March 31st, 2021, compared with RMB 188 million as of June 30th, 2020.
spk05: Finally, I'd like to share our expectations for the coming quarter. For the fourth quarter of the current fiscal year, ended June 30th, 2021, we expect our net revenues
spk03: to be between RMB 480 million and RMB 510 million. This forecast only reflects our current and preliminary views on the market and operational conditions, which are subject to change. Looking ahead, we expect to continue to expand our client franchise, enhance our products and services, empower our people, deploy technology, and increase operational efficiency, and create substantial and sustainable value for our clients and shareholders. Thank you. This concludes our prepared remarks for today. Operator, we are now ready to take questions. Thank you.
spk09: Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please press star 1 on your telephone and write for your name to be announced. If you wish to cancel your request, please press the pound or hash key. When asking questions, please state your question in Chinese first, then immediately repeat your question in English for the convenience of everyone in the call. Once again, if you wish to ask a question, please press star 1 on your telephone keypad. Our first question comes from the line of Antonio Chang from BOCI. Please ask a question.
spk06: Thank you, Ms. Guan. Thank you, Mr. Wang and Mr. Zhou for the wonderful sharing just now. I also heard a few words in the sharing. One is technology means and the other is digitalization. Currently, the entire industry, especially China's network technology, has a relatively high level of development. I heard tech and digital were mentioned by the CEO and CFO. My question is that in a tech-saturated market like China, how is hiring really used in tech and what results you want to achieve? Thank you. Thank you.
spk10: For Hainin, digitalization is also a direction of future development, and we have always tried to create a smart Hainin. For Hainin, digitalization is not the number we imagine, but the way. In other words, Hainin recognizes customers, serves customers, acquires customers, or is an important guide for operating enterprises. I can talk in several dimensions. For customers, The digital tool allows us to construct accurate customer images from the multi-dimensional fragments of information of the client, so that we can determine the needs of the client. Based on this, we have designed a solution for thousands of people and thousands of chains for the client. For service clients, we can provide online and offline integrated services to clients through digital methods. And overall, it can improve the efficiency of information transmission, thereby improving the customer experience. In terms of getting customers, digital platforms and digital ideas can expand our marketing range. Such as online marketing, and the way of thinking, etc. can help our efficient customers, accurate customers. I will translate for the CEO. First, I want to say that for hiring,
spk03: Technology is not a tool, but a way to structure our business. Technology is a lens through which we find our clients, understand them, get to know their needs, and improve our operations. Firstly, we use technology to find clients through our digital platform. We broaden our interface with the highest-worth population in China and increase the efficiency of client conversion. We also use technology to understand clients. We construct client profiles and map client needs with the fragmented information by using diagnostic tools. This profiling provides the basis for our highly tailored solutions. In addition, we use technology to service clients. We use integrated online and offline engagements to enhance informational contents and to drive the procurement of client needs. Of course, we also use technology to improve operations. The intelligence and transparency generated from data help us manage process risks and costs. Next question.
spk09: Thank you. Next question comes from Anthony Ma from J.P. Morgan. Please ask a question.
spk07: Hello, President Wang. Thank you for your wonderful presentation. My name is Anthony Ma. My question is, we can see that in China's wealth management industry, the increase rate of sea silver in the past quarter is very high. In this case, I would like to ask, in the future, can we continue to maintain this long-term high rate of growth? If we can, what will be the driving force of our growth? So how do we have achieved the high growth in Chinese wealth management market? So how do you plan to sustain your high growth in the years to come, please? Thank you.
spk10: Okay, thank you. Actually, we all know that China's personal capital investment is now more than 2 million yuan. The number of high-income people has also reached nearly 2 million people. The Chinese financial management market is not only huge in scale, but also has an increase of about 15% per year. It can be said that there is a lot of space for development. In this huge space market, Haiyun Financial has experienced 16 years of development and has crossed the economic cycle of two rounds. It can be said that it has accumulated experience and permeated culture, forming the core competitive advantage. We not only have a team of more than 2,200 people, And we have also moved into more than 80 big cities in China and opened more than 170 financial centers. The number of clients we serve is also more than 120,000 high-quality clients and families. Of course, for the future, we will be based on the existing financial management business. We will be in the domestic and overseas asset blocks to carry out layout and enforcement, and further improve to increase the diversification of our revenue and consolidate it to increase our net profit. At the same time, we will continue to increase the type of asset configuration to improve the ability of investment management, so that we can continue to broaden the source of revenue and improve the portfolio of customers. In addition, we have been emphasizing digitalization. We will continue to promote the transformation of digitalization, strengthen the central stage of data, and develop intelligent tools to improve the efficiency of employees. We will also bring more extreme wealth management experience to our customers. We will also expand our overseas layout. We will continue to leverage Hong Kong as the core financial location overseas.
spk03: As we know, China has more than 2 million high net worth individuals and more than RMB 200 trillion of personal wealth. This huge market will continue to grow at a 50% higher in the years to come. High wind has had 16 years of continuous growth. and navigated multiple economic cycles. We have built a physical network of more than 170 world service centers in more than 80 cities in China, nearly 1,600 relationship managers, a strong digital platform, and 120,000 high-net-worth clients. Building on the successful world management business, we will accelerate the build-out of asset management business in both onshore and offshore locations to increase the weighting of recurring income and diversify revenue sources. We will also continue to expand our product offerings, strengthen advisory capabilities, and enhance investment management expertise. We will also promote cross-selling and up-selling to increase our share of client wallets. In the meantime, we continue to make great progress in our digital transformation, our digital infrastructure, digital interfaces, have delivered excellent experiences for clients, efficiency gain for our team, and a commercial value for the firm. In addition, we will scale up our Hong Kong business and optimistically enter new offshore markets. Chinese wealth is rapidly globalizing, and High Wing is well-placed to be the bridge. Thank you. Next question.
spk09: Thank you. Our next question comes from Joshua Chu from Rothschild & Company. Please ask a question.
spk04: Hello, everyone. Thank you for the briefing. We just heard that the growth of the company in the past is relatively strong. At the same time, we also noticed that the company's financial performance, especially in terms of net profit, is relatively weak for the market. So our next question is to ask the management of the company about the future progress or improvement So we noticed that the company has delivered a very strong close traffic over the recent period. On the other hand, we also observed that the net margin has been relatively weak compared to market in some of the peers. So our question is that if the management has in mind any or changes that could help improve the net profit margin in the near or medium term?
spk05: Thank you. Thank you for your question. First of all, from our financial report, you can see that in the income of the financial management business, the product with the highest company income is constantly increasing. At the same time, the income of our management business is also increasing rapidly. This will further improve our overall income level. In addition, with the acceleration of our company's digitalization process, the production capacity of people is constantly increasing, and the operating cost of editing will continue to decline. The ratio of total income and total cost will quickly improve and release significant editing profits. Third, our investment in talent training and customer education, the value of the intellectual property and brand that are produced, is an important motivation for our business to develop for a long time. We will continue to optimize our investment in this area and will further improve our income.
spk03: Thank you. First of all, we expect continued momentum in our revenue growth. The weighting of high-margin products in our world's management business is expected to increase, and the revenue from our app management business are also expected to rapidly scale up. Meanwhile, as our digital transformation delivers efficiency gains and as the productivity of relationship managers continues to grow, The marginal cost of a business continues to decrease. This means sustained improvement of the cost-income ratio and will create substantial profit growth from our operations. The investments we make in nurturing our people and educating our clients generate tremendous intellectual capital and branding value. These are crucial foundations for our commercial success. We will continue to make smart investments in these areas. Thank you. Our next question.
spk09: Thank you. Next question comes from Joseph Chan from Kuotai Jinan. Please ask a question.
spk08: Hi, this is Joseph Chan of Kuotai Jinan Wealth Management. I'm based in Hong Kong. And the CEO just now mentioned about the strategic cooperation agreement with the VP Bank, the Swiss Bank. What are the benefits of this co-op or tie-up? Thank you.
spk03: I will take this question. VP Bank, our partner, is a boutique European private bank famous for its expertise in global custody, execution, fund advisory, and wealth planning. Through the recently executed cooperation, we now can use the VP Bank's so-called trading and custodian platform to manage accounts and implement investment strategies for our high-net-worth clients in the offshore space. Also, a VP bank can provide credit to hiring clients to support their portfolio construction, insurance policy financing, and even real estate purchases in some global locations. The cooperation between hiring and a VP bank will meet client demands for integrated onshore and offshore proposition. This also reflects the appetite of global financial institutions for the China market. Actually, just two weeks ago, the Shanghai government published a major policy announcement on the plan to build Shanghai into a global hub for asset management. This plan includes supportive measures for global asset managers coming to China, but also for Chinese asset managers entering the offshore markets. Haiwen will look for opportunities to work with the leading global asset managers to capture opportunities and value in this space. Thank you, Joseph. Next question.
spk09: Thank you. Next question comes from Yanran Singh from BOCI. Please ask your question.
spk00: Hello. Thank you for your introduction and congratulations to Hanyun for achieving such a good result this year. I have a question about our product strategy. We know that one of the advantages of Hanyun's traditional products is that it is a product related to real estate. However, we also see that according to some of the materials announced by the third party, We know that one of our wealth management business advantages the supply of the rare estate products. However, according to the third party's private wealth report, we can see that in the absent allocation of the high net worth population of the equity investment and the demand for the private equity and funds all increases significantly. So do we have some advantages of these exchanges? Thank you.
spk03: Thank you, Shirley. I want to take a shot. It's a very good question, Shirley. You correctly pointed out that at this moment, the bulk of the products our clients you know, transact through us are, you know, the real estate-backed fixed income products. I think we should look at it this way. For the portfolio of any high-end clients, it's just like a wedding cake. At the bottom is a fixed income. People love the certainty and the cash flow. On top of it, people gradually build liquid alpha mutual funds and then a liquid long-term alpha private equity venture capital and hedge funds. I think hiring is in a very advantageous position because we have been with the client for about 16 years. For our 120,000 clients, they have always known us as robust, reliable, delivering what we promise. That's a feature of our fixed income centric proposition in the past. But now leveraging the same client relationships and gradually expanding our spectrum of a product and building up our advisory skills in more asset classes, I think it's a matter of time, and actually very quickly, clients would bring more business to us, and we'll be in an even stronger position to do truly multi-asset class allocation across private and public, and across equity and fixed income, and of course, across offshore. So on to your question, if we have a client relationships, and then 16 years of unbroken charts, it's actually pretty easy to expand our product spectrum. And you are going to see that pretty soon. Thank you.
spk09: All right. Thank you. Our next question comes from Sandy Mater from Evaluate Research. Please ask a question.
spk01: Yes. Congratulations on the strong earnings performance as well as execution. The wealth management business accelerated this quarter. You were up 50%. And you mentioned that privately raised products have been doing really well. Do you get higher margins in that? And can you talk about what specific products is selling really well or where is the customer interest in what sort of products? Thank you.
spk03: Thank you. I will translate this question and let the audience understand it. At the same time, I will ask our head of headquarters to answer it. This analyst mentioned that Haiying's performance is very good. He noticed that in the middle of our client's asset configuration, the amount of products in the market is relatively large. He wants to know what kind of topics and what kind of products are liked by customers in the market. Please introduce our head of headquarters.
spk10: Hello, first of all, as a three-party wealth management institution, we are guided by the needs of customers and make comprehensive asset configuration around the needs of customers. As I said before, with the changes in the market and the development of the financial management institutions, investors do like the products of HUSHOU. However, as the number of our high-end customers increases and the demand increases, they do have a demand for private products, including some securities products in the second-tier market. In this regard, we have also done a lot of product layout, because our purpose is to make a comprehensive asset configuration for the customer. Therefore, in the whole, for the high-end customers to serve, we have to use this headlight and red light as the premise to do individualized service for customers. So we will see that as a three-party wealth management company, we not only say that according to the needs of the market, According to the customer's needs, the changes in the market, we do asset allocation for the customer. More importantly, we also need to understand the changes in policy, the changes in the market, to guide the customer, to know where the customer's needs are, and why we have a lot of investor education every year. Therefore, for Haini Wealth, we have always used the customer as the center. According to the changes in the market and policy, we do a comprehensive asset allocation for the customer.
spk03: Thank you. I will translate for the CEO. To answer your question, yes, as you correctly noticed, privately-raised products are currently very popular with our clients and the mainstay of the business. But we do believe, and we're already witnessing, clients' needs are rapidly diversifying, and we're expanding our product universe to meet them. Very importantly, high-wing ad allocation methodology is based on three pillars. The first one, we are very good at macroeconomic research. So we have our house view on the market at the classes, and we tend to be right. And the two, we also focus on the policy and the macro regulations so that we position our client's portfolio with foresight. And very importantly, We think client needs are not necessarily obvious and apparent to themselves. So we understand the client, we know the needs, and we anticipate the needs. So it's part of the client education process. Based on research, policy reading, and the client understanding the three pillars, our application methodology will support expansion of our business interface with our clients. Thank you.
spk09: Great. Thank you. If there are no further questions at this time, I'd like to hand the conference back to our management team for the closing remarks.
spk03: Okay. Thank you, operator, and thank you, everyone, for attending today's call. If you have any further questions or inquiries, please feel free to contact us at our IR website. We very much look forward to speaking with all of you at our next earnings call. On this note, we wish you a very good day. Thank you.
spk09: Thank you, ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.
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