Noah Holdings Limited

Good day, and welcome to the NOAA Holdings Fourth Quarter 2021 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 a touchtone phone. 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 Wong. Please go ahead.

Thank you. Today, I would like to talk about Hongguan's view on the phone conference. I would like to report on the overall performance of Luoya in 2021 and the development of several branches. Next, I would like to introduce you to the annual financial information. Finally, I would like to interact with you. Looking back at the past year, we have once again experienced the complexity and cycle of the financial market. In China, the wealth management and management industry have been transformed. The industry is changing, and the management ecosystem and characteristics are different from the past. The industry has come to a turning point in the business model. The relaxed monitoring cycle has fallen, and the sales direction has become the past. The bottom-up assets provided by domestic private banks to customers have been taken over by real estate banks, embracing the era of full-fledged products. We believe that we must replace customer thinking with sales thinking in order to be able to compete. Investors and entrepreneurs are gradually maturing. The increase in population aging and residential wealth continues to grow in the industry. This shows that China's wealth management industry is developing steadily. At the same time, the long-term quantitative easing policy and the abundance of liquidity around the world have caused a huge inflation of risk assets. Inflation has penetrated into every corner. The reverse of quantitative easing policy is coming. Many industry monitoring models and market valuation have begun to change. In the past 10 years, China's economy has undergone a significant growth, but there are also four major structural problems that make the market worried. Capital banks, real estate, local financing platforms, and so on. After long-term but firm adjustments, we see that in 2020, the capital banks and real estate that the central bank was worried about in the past, the hidden debt of the local government, etc., should be said to have been corrected. China's steady growth and the macro-structural strategy achieved better results. In 2022, China's economy has returned to its original state, and the manufacturing industry has been upgraded. Industrial competitiveness has been significantly improved. Small and medium-sized enterprises continue to remain active and have low tax rates, etc. Both in the manufacturing industry, exports, and key supply chains, they have shown stronger resilience and vitality. Chinese private enterprises are more focused on high-quality development and begin to seek benefits in management. These discoveries have made us full of confidence in China's economy and the market. The Russian-Ukrainian war that is taking place is worrying. In this process, we can be sure that the market will continue to fluctuate. From the perspective of understanding the financial needs and wealth sources of the market, we recommend that financial management customers take the strategy of first protecting and then growing in the 2022 ROYA CIO Office Strategy Report. The first is to actively check the asset configuration of yourself and your family, do asset protection and asset protection, and further balance the global asset configuration. Considering that it is still a currency superinflation and inflation for the long term, On today's conference call, first, I'd like to talk about my observation of the microenvironment, then report on NOAA's overall results in 2021 and performances of major business segments.

Our CFO, Mr. Panqing, will then introduce detailed annual financial results of the company, followed by a Q&A session. Looking back on the past year, we once again experienced the complexity and periodicity of the financial markets. In China, the wealth management and asset management industries have undergone paradigm transformation. The industrial changes, business ecology, and characteristic positioning are different from those in the past. The industry has ushered in an inflection point in the evolution of business models. The loose supervision cycle ended, and the sales orientation became the past. The underlying assets provided by domestic private banks to clients migrated from realistic bonds to NAV-based funds, embracing the era of equity products. We believe that we must replace the sales mindset with a client-centric one in order to survive the competition. Investors and practitioners have been gradually maturing. The aging population and the increase of residents' wealth is helping the continuous growth of the industry. All these developments show that China's wealth management industry is developing steadily and healthily. At the same time, the inflation of risky assets is prevalent across the globe due to the quantitative easing policy and surplus of liquidity that have persisted for a long time. The reversal of quantitative easing will change regulatory models and market valuations of many industries. Over the past 10 years, China's economy has achieved remarkable growth, but there are also certain major structural issues that concerns the market. Shadow banking, realistic imbalance, financing platform, industry with overcapacity, as well as resource industries with high pollution and high energy consumptions. after a long-term but firm adjustment. We can see that in 2022, the shadow banking, real estate, and government invisible liabilities that the central bank worried about in the past have been corrected. China's micro-strategy of steady growth and structural adjustment has achieved good results. In 2022, China's economy will further return to real economy. The manufacturing industry will be upgraded every two weeks. Oh, sorry. Iteratively, the industrial competitiveness will be significantly improved. Small and medium-sized enterprises will continue to be active and enjoy a low tax rate. Manufacturing, export, and key supply chains have shown strong resilience and vitality. China's private enterprises pay more attention to high-quality development and begin to seek benefits in management. These findings allow us to have full confidence in China's economy and the market. While the ongoing Russian-Ukraine war is worrying, we can be sure that in this process, the market will continue to fluctuate from the perspective of understanding the financial needs and wealth sources of the market. In the first strategy report of NOAA CIO Office in 2022, we plan to suggest our wealth management clients to adopt the strategy of protection before growth. First of all, actively check the asset allocation of themselves and their family and make sure of asset protection and asset safeguard. Secondly, further balance their global asset allocation and consider the long-term situation of excessive currency issuance and inflation. In the secondary market, primarily utilize this multi-strategy portfolio allocation strategy. In the primary market, adopts the strategy to pay more attention to the cross-cycle early investment in hard technology.