Jingbo Wang | Co-Founder & Chief Executive Officer |
Qin Pan | Chief Financial Officer |
Ethan Wang | CLSA |
Emma Liu | Bank of America |
Good day, and welcome to the Noah Holdings Fourth Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Chairlady Wang. ahead. go Please
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question begin with will first [Operator The today Please comes Wang We from the question-and-answer go now ahead. Instructions] CLSA. Ethan session.
questions. two have I Language] [Foreign
and That's year the in based seen employee have terms year-to-date of market any first change environment, The products? and first on preference last mutual in one product the segment fund question. the quarter is we fourth
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our and it our the wondering more in just fit of year's cost explain doesn't consideration can this strategic growth, market in situation environment management you. Thank behind So, context China? details COVID if the
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all time, That's Qin. Language] [Foreign for your
Thank you, Ethan.
next America. The Bank Liu Instructions] question of Please comes ahead from with go [Operator Emma
So question. I my will Language] [Foreign translate briefly
that recently products cost. will well poor how Gopher’s of of a as investment third-party So behaviors your as China as managers, to received significantly, performance the impact API is clients? related it than the so and question Second as Kong the question stock Hong how AUM, these well will first your it is impact of
we have books correct, of they think RM First business -- lending XXXX, that number of be And to of you that clients who the your I was the quarter. probably this that was between And to book you is -- XX% experienced your continued -- the costs spend of in product the also end you of new XX%, have this actually have new -- you And do as build and well that noticed XXXX, products. actually all to first the that you the other your their of progress which for completed Thank experienced, XX%, so continued what's quarter, where think, started they RM that Chinese in allocation XX% any your actually in And may continue know, forward. pretty declined in that business, business actually credit made going some real called portfolio much you of wanted a year. year? losses time and more our us of to to for restructuring this we to that were as clients in will plans credit the are relates expect pretty to net that for will mix. of of group how two, see and actually XX% so large, probably credit have margin it previously XX% margin our fourth your your lending we behind institutions, gave exposure, private actually you because declined the for do to stable I help clients. the of with guided non-standard investments we and all, see they What's reason net the emergence group adjust pretty transformation, as from estate, room assets lucky products, to be a private credit fourth
terms actually, to In of as products clients of the the some products Gopher know, the we within the materialize gain NOAH, the we that asset, for of have. that majority the AUM portfolio the XXXX year and that in market, also on but you of is have exited of the they primary have P-products,
risk key well small target return for terms some for generates of better comparing product. key which that things that that And give one demonstrated They the allocation the have the client's transformation did demand generates some maintained time actually especially type okay a as also quicker probably a for layer the that but So I interest on but the we products one probably have position, we other we in the volatility terms main fundamental high to allocation in return resilient the obviously, products the also secondary them of cash the Gopher in to assets. CPA our clients, of recently. asset is And much would as products actually level that the recently. balanced and multi-strategy markets, including face have pretty initiative volatility they're uncertainties. averse, high protection stability type for taken also of products, public the seen portfolio still products the and notice of returns the show actually NOAH as But products at the example, clients turn a think obviously for of such same of and of, the have and of return and of returns, choice very a yesterday, of is moderate of asset become products, portfolio, of of positive that have still in on noticed overall the help some distribute, a
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the on on second that in products, on seize the you the credit have back moving actually have loan of second XXXX, moving in loan issued is actually loss if the from the recall, retracted we terms question, decided the relative have have to on actually So to we original Emma, question, products. the of proactively we your to on product we of loan overall And similar decided of some your offering products products. that
was are continue to terms model on have Emma? of much we're foresee in type your we don't third of in probably exit question, with as have of reserve this And worked type the products. we the forward going So credit business. pretty computed, that audit, to of going now loss large validation that restructuring, majority been we expand our increase to we What have a continue the our based
why XX% decline to XX% your The third as your both if a in XX% is relationship is and first it there quarters? to as keep managers question you. of about net decided Thank to quarter, margin, we in in number
Yes.
margin as explaining For net question. I actually Ethan's the have
season. actually First it's concentrated of pretty marketing all,
the maintain fourth take operating net two still a at of actually half talking overall joined of fixed add we in XX% series conferences, the separate but probably is quarter. also margin, overall, thing. single increase reform to to clients, which including obviously, of look also annual on I the little guess cities, [ph], also XX% volume or in usually quarter. actually about we that marketing the cost population low that's margin. and cards operating XX% basically for So XX% quarter think the bench the process, the bit -- year black I of we're one And to a so the But But pressure the the last while that pays card in margin a is aims the the budget which around from are offline is close so a margin
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into there reform. especially half So regrouping when the last absorbing been RM has the the activities, of there's quite group a of bit --
the at a volatility the new proactive, of reform in terms And time, you're when reasonable adjusting adjusting low a XXXX. pretty for bit amount timing for the in low same we've So there's probably relatively of in XXXX. But performing and investment we in to between the us the continued put of talent good on the RM. believe little mix heighten also to a market recording in budget becoming of performing -- to terms is acquisition actually,
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you. Thank
problem, Emma No
ahead. with [Operator Instructions] The next from Please Andrew go Value question comes Clareon [ph]. MF
for a ask to allocation. hoping was my question. you I Hi, on capital thank question taking
cash healthily, You US$XXX which million think business I all with the have even think And sheet, you've testament which year, over past purchased of sounds virtually strong and clean on it exceptionally business. a your cash balance like the talent quite I in the next to just headquarters, flow year. this you the against really and year that is debt quality made, projecting a strategic with still you're no positive a investments and
price, price cash just the in that bit but With goes a volatility be accretive repurchases share could spend that and it we've share that of you the if towards seen have I quite and you the prices end to at XX% XXXX, XX% on million think share US$XXX of all premium close to a spend about were I stock know repurchases at the where that today.
So the I in was allocation return capital hoping at terms some maybe to willingness to understand to shareholders of the in look that form.
in So Thank Andrew. the a we have internal guess way of [Foreign put Language] to you, definitely I Andrew. discussed meetings. on thanks, extensively simple one we have that one and considerations that's the that also of tops
are it's will for conscious have, including the at be we install much to value market, that wanted definitely in have also share kinds of to also shareholders analysts, a that we just we're probably low stock the but conscious with cope very that mechanism -- it reflection And guess very comment will the that and of at on to tools point. I a same I well all mind I'm So the for find of convenience I of actually but seems returns right guess style not timing. keeping the and the but shareholders. ROE this And I the to keep at understand abundance liquidity timing our it's our wait obviously, this, of time, return planning the management and uncertainty of too creating we on am also some to at very I'm time, shareholder as our the of
Okay. you. That’s helpful to understand. Thank
Andrew. Thanks,
[Foreign Language] Okay.
So, on color this Chairlady Wang question. some supplemented
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the been Thank additional it's fun as to you undoubted you color the for in very operationally, yes, and execution all shareholder, have watch, I of terms helpful. and all exceptional it's success. And think been congratulations a that on
front, optimism. seeing towards some on capital perspective, I on shareholders top a the a cherry from be and think even the think, would pointing positive allocation even signs of more I those
to the realize. forward you with look we'll much So future must
So the thank for you very much answering questions.
Great, thanks, Andrew.
back like to closing for Pan the question-and-answer Grant to session. remarks. This over our would I turn concludes conference any
calls. several you you. everyone thank Thank for talk And time. I scheduled. soon, on we Great, And any you, your have remarks. more don't have conferences And we'll to those
now you has presentation. concluded. conference Thank for attending The today's
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