Noah Holdings Limited

Welcome to the NOAA Holdings Limited Second Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Chair Lady Wang. Please go ahead.

China's financial management industry is experiencing a profound change. The COVID-19 pandemic has accelerated this change. In 2020, I define it as the year of reformation of Luo Ya's wealth. We start from the organization's ability to build, customer mobilization, and process reconstruction, three aspects, to promote Luo Ya's change, to allow our organization to adapt to the new environment of Chinese wealth management and asset management. Following the 2018 Qu Gang Geng and 2019 Li Cai Ruanxiang's major rectification, the promotion of supervision of qiyan and the epidemic, and the promotion of the new rules of governance, have quickly become the mainstream products of the Chinese financial management industry. The new needs of customers have exceeded the expectations of the industry. We believe that continuous investor education and changing customer awareness is the key to democratizing financial management. At the financial management end, NOEA has greatly trained financial experts that drive products as investment advisors, and launched a self-developed public-private investment platform. At the management end, we have strengthened investment and direct investment capabilities,

Regarding the teleconference agenda today, I will start with my viewpoint on macro level, then summarize NOAA's overall performance in the second quarter of 2020, the developments of major business segments, as well as the settlement we hope to reach with our clients on the Kempson incident. Then Grant will present financial results of the second quarter. This call will be concluded after a Q&A in the end. The wealth management industry has been experiencing underlying transformation in China, which has been accelerated by the COVID-19 epidemic. In my view, 2020 is the critical year for the transformation of NOAA. Through organizational capacity building, client insight, and process restructuring, NOAA is changing to be more adaptable to the new environment of wealth management and asset management in China. With the deleveraging in 2018, and the rectification of chaos in financial industry in China in 2019, the tightening of supervision and the impact of the epidemic. NAV-based products promoted by the new guidance on standardizing asset management business of financial institutions have quickly developed into the mainstream products in China's wealth management industry. The renewed demands from clients soar beyond industry expectations. We believe that further investor education and updated client perspectives are the keys to NAV-based wealth management. For the segment of wealth management, we have made much effort to train product-driven relationship managers as investment consultants. We launched our self-developed mutual fund investment consultancy platform. For the segment of asset management, we have strengthened our investment research and direct investment capabilities. and promoted direct sales and multi-channel institutional sales, all of which have made progress to some extent.