Noah Holdings Limited

And welcome to the NOAA Holdings 1Q 2022 Earnings Conference Call. All participants are 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. Please note this event is being recorded. I would now like to turn the conference over to Jingbo Wang, Chief Executive Officer. Please go ahead.

Okay, thank you. In today's phone call, I would like to talk about Hongguan's views. I would like to report on the overall performance of the first quarter of 2022 and the development of several major business units. Next, I would like to ask Panqing to introduce the financial information of the quarter. Finally, I would like to ask questions and answers. Since the death of 2022, Luoya and Luoya's customers have all started to avoid risk. Luoya's customers, financiers, and investment managers may have never experienced a complete rise in interest rates, and the multiple factors that overestimate credit. At the beginning of 2022, we realized that the strong wind and wind will always be a challenge. In the first quarter of 2022, we repeated the customer experience. Customers emphasized that no one was trampled when entering the theater, but many people were trampled when they came out. In the first quarter, we suggest that Luoya's customers re-check their asset allocation situation with their families, New year is here. The strategic strategy of Loya for customers is to protect first and then grow. Since the 2008 generation crisis, the long-term量化宽松政策 in the global scope and the abundance of liquidity have caused a huge inflation of risk assets. The asset inflation has penetrated into every corner of the world. The reverse of the量化宽松政策 has arrived. The increase in interest rates of the United Nations and other countries has opened many rounds. Fast judgment is a kind of partial knowledge based on intuition and simplicity. And delay judgment corresponds to complex knowledge. The problem of China's economy is obviously a complex problem. Delay judgment may be a more wise choice. Overall, China's direction is from attention to efficiency to attention to fairness. Encourage the safety and control of key technologies in the technology industry. Promote the high-quality development of China's future economy. Encourage social funds to invest in more early-stage technology funds to solve the problem of卡脖子 and independent innovation. From the perspective of investor asset allocation, a certain proportion of funds to allocate to early-stage technology funds is a necessary choice to fight currency relaxation and inflation. In the first quarter of 2022, Loya's CIO office gave the main strategic direction of asset allocation, first protect, then grow. On the strategic implementation path, it is recommended that Loya's core customers start from the following four aspects. First, explain the asset allocation situation of themselves and their families, do asset protection and asset isolation, Secondly, it is recommended for domestic public markets to set up multi-strategic absolute revenue funds, mainly from the perspective of protecting assets, reducing fluctuation, and pursuing wealth. Finally, the Shimoku All-Influence Fund is a high-quality client's main asset category of cross-week and guarantee growth. It is recommended to surround the technology theme and strategic configuration. In terms of fund configuration, it is more concerned with early industry funds, white horse funds, and special opportunity funds. These types of assets are from the perspective of long-term asset growth, I want to emphasize that the genes of Loya and Gefei started from private banks. Our customers are high-end individual customers, so our starting point is to understand the needs of customers and protect the safety and profitability of customer family assets as the starting point. From product drive to customer-centered transformation, it has a profound impact on Loya's strategic choice and management model. Finance is a periodic industry, On the agenda of today's conference,

I would like to talk about the micro view first, and then report on the overall performance of NOAA Holdings in the first quarter of 2022, and the development of main business segments. Then let's invite our CFO, Mr. Ching Pan, to introduce the quarterly financial information, followed by an interactive Q&A. At the beginning of 2022, NOAA and NOAA's clients switched on a risk-off mode. NOAA's clients, relationship managers, and investment managers, they have never experienced a complete multi-sector superposition cycle of continuous hikes in interest rates, credit expansion, aka quantitative easing, liquidity collapse, and massive excess credit. At the beginning of 2022, we realized that in the strong headwind, aviation will be a challenge. In the first quarter of 2022, we talked with relationship managers and clients repeatedly and emphasized that No one was trampled when entering the theater, but many people were trampled when they came out. In the first quarter of 2022, we suggest that NOAA's clients re-examine the asset allocation of themselves and their families, actively rebalance the asset allocation, and make the family asset allocation safer and more effective from the perspective of protection over growth. The ongoing war between Russia and Ukraine is worrying, but as a professional institution of growth management, we suggest that our clients should remain rational. Under this dilemma, the only certainty is that the market will continue to fluctuate. This market environment is not suitable for quotation marks timid from managers and clients. Avoiding risks has become a better choice. At the beginning of the new year, NOAA's strategic allocation strategy to clients is protection first, then growth. Since the subprime mortgage crisis in 2008, The global long-term quantitative easing policy and abundant liquidity have caused the huge inflation of risky assets. Asset inflation has penetrated into every corner of the world. The reversal of quantitative easing policy has come, and the Federal Reserve and other countries have started multiple interest rate increase cycles for asset prices. The shift from quantitative easing to quantitative tightening will be a challenging adjustment, and the rapid withdrawal of liquidity will turn asset inflation into asset deflation. In 2021, many industries in China were subject to stricter supervision and frequent policy changes, which led to fundamental changes in the valuation logic of these industries. And the market feels colder than the actual economic data. Our view is to delay questioning and judgment on China's economy. Quick judgment is a simple and partial cognition based on intuition, while delayed judgment corresponds to complex cognition. The problem of China's economy is obviously a complex problem. Delayed judgment may be a wiser way. On the whole, the direction of China is from paying attention to efficiency to paying attention to fairness. to encourage scientific and technological entrepreneurship, ensure the safety and controllability of key technologies, promote China's high-quality economic development in the future, encourage social funds to enter more early science and technology funds, so as to solve the problem of being seized by the throat and independent innovation. From the perspective of investor asset allocation, allocating a certain portion of their capital to early science and technology funds is an inevitable choice to combat monetary easing and inflation. In the first quarter of 2022, the theme word of asset allocation given by NOAA's CIO office is protection over growth. On the strategy implementation path, we suggest that NOAA's core clients start from the following four aspects. First, Check the asset allocation of themselves and their families and pay attention to asset protection and asset segregation. Secondly, for the domestic public securities market, we recommend allocation to multi-strategy return funds, mainly from the perspective of protecting assets, reducing volatility, and pursuing dividends. Finally, private equity investment fund is the main asset category to cross-cycle and maintain growth for high net worth clients. We suggest a strategic allocation to science and technology and pay more attention to early industry funds, white horse funds, which have experiences to ride through cycles, and special opportunity funds. From the perspective of long-term asset growth, such assets fight against the inevitable long-term monetary inflation by sacrificing liquidity. I would like to emphasize that NOAA and Gopher Asset Management's genes are private banks. and our clients are highly worth individual clients. Therefore, our starting point is to understand client needs and take protecting the safety and profitability of the client's family assets as a starting point. The transformation from product-driven to client-centric has a far-reaching impact on NOAA's strategic choice and management model. Finance is a critical industry. In every financial crisis, large financial companies closed down and their clients' assets shrink significantly. As the operator of NOAA, when we make some key fundamental decisions, the first criterion is to survive and not make fatal mistakes. It is impossible to not make mistakes in investment and asset allocation, but we should reserve time and space for us to correct and tolerate them.