Transcript: Noah Holdings Q1 2026 Earnings Conference Call

Noah Holdings (NYSE:NOAH) released first-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below.

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Summary

Noah Holdings Limited reported Q1 2026 net revenues of RMB 626 million, a 1.8% increase year over year but a 14.7% decline quarter over quarter due to reduced insurance contributions and seasonal private equity performance fees.

Operating profit reached RMB 236 million, up 27.1% year over year, with an operating margin of 37.8%, attributed to cost control and organizational efficiency.

The company's strategic focus includes enhancing its global presence with new operations in Japan and a US broker-dealer license, emphasizing AI-driven client operations and wealth management.

Noah Holdings' domestic business saw significant growth with a 131% increase in RMB mutual fund transaction value and a 61% increase in private secondary products year over year.

The company is leveraging AI to improve efficiency and client service, with significant growth in Singapore's AUA, demonstrating the potential of AI-driven wealth management models.

Future plans include expanding global asset allocation capabilities, optimizing revenue structures, and deepening AI applications, supported by a strong balance sheet with zero interest-bearing debt.

Management acknowledged regulatory compliance challenges but emphasized the minimal impact on its operations, given the low revenue contribution from securities business and adherence to legal standards.

Full Transcript

OPERATOR

Good day and welcome to the NOAA Holdings Limited first quarter 2026 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 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 Doreen Chu, Investor Relations. Please go ahead.

Doreen Chu (Investor Relations)

Thank you and welcome and good morning everyone to Noah Holdings Ltd's first quarter of 2026 earnings conference call. Joining me on the call today are Ms. Wang Dingbo, the co-founder and chairlady Ms. Sande Yin, the co-founder, Director and CEO, and also Mr. Grant Pang, the CFO. Mr. Yin will begin with an overview of our recent business highlights followed by Mr. Pang who will discuss our financial and operational results. They will all be available to take your questions in the Q and A section that follows.

And please note that the discussion today will contain forward looking statements that are subject to risks and uncertainties that may cause actual results that varies materially from those in our forward looking statements. Potential risks and uncertainties include, but are not limited to those outlined in our public filings with the SEC, and the Hong Kong Stock Exchange. NOAA does not undertake any obligation to update any forward looking statements except as required under applicable law.

With that, I would like to pass the call over to Mr. Yin. Please go ahead.

Yin

Investors and analysts and thank you for Joining NOAA Holdings First Quarter 2026 Earnings Conference Call as we start 2026, the pace of NOAA's transformation has become clearer than ever before. In the first quarter, we observed three increasingly visible trends. First, our profitability structure continues to improve with operating margin reaching one of the highest quarterly levels in recent years. Second, our domestic business is regaining momentum in core investment and asset allocation with both active clients and transaction value achieving double digit growth.

Third, our overseas business continues to advance in line with our strategy of proactively adjusting our revenue mix while a new operating model driven by globalization and AI gradually takes shape. Before going into a more detailed review, I would like to share two milestones in our global footprint that we recently achieved. Our Japan office officially commenced operations on May 4th and our US broker dealer license has completed the final approval process with key team members set to officially join in June.

These two developments mean that our network is entering a new phase moving from license deployment to operational execution. Next, I would like to share our progress from four financial performance, domestic business, overseas business and AI strategy. [Inaudible] Quarter we recorded net revenues of RMB626 million up 1.8% year over year and down 14.7% quarter over quarter. The sequential decline was mainly due to a further decrease in contribution from the insurance business as well as a seasonal decrease in performance fee income from overseas private equity products following concentrated year end recognition.

However, on the profit side, benefiting from our disciplined execution in cost control, organizational streamlining and expense management, operating profit reached RMB 236 million up 27.1% year over year. Operating margin was 37.8% marking one of the highest quarterly levels in recent years. Non GAAP net income was RMB 134 million. It is important to note that this quarter's strong margin performance benefited from continued optimization in our business mix and further release of additional organizational efficiency. We expect full year operating margin to remain in a healthy range above 30%, although quarter to quarter fluctuations are natural due to product mix and expense timing.

This quarter also marked our 62nd consecutive quarter of non GAAP profitability since listing this is the discipline we have maintained across multiple market cycles. Last quarter our active clients reached 10,742 up 21.8% year over year. Transaction value reached RMB 23.3 billion compared with RMB 16.1 billion in the same period last year. In our domestic business, transaction value of RMB denominated mutual fund products reached RMB 9.9 billion up 131% year over year, while transaction value of from RMB denominated private secondary products reached RMB 5.3 billion up 61% year over year.

NOAA Upright recorded net revenues of RMB 208 million up 63% year over year, mainly driven by a doubling in public fund transaction volume as a result of structural opportunities in the A share market together with a rapid recovery in RMB denominated private secondary fundraising. This series of changes shows that when we refocus our resources on products and investment capabilities with genuine long term value, the operating performance of our domestic business improves structurally. At the same time, we have become even clearer about the strategic direction of our domestic business going forward. For our domestic business, we will continue to focus on the secondary market and building our asset allocation capabilities.

With key priorities including public mutual funds, private secondary market products, AI driven client operations and Noah Upright's fund distribution platform capabilities. We will continue to drive the enhancement of our operations in these areas. We believe the domestic wealth management industry is gradually moving away from the past stage which was driven by real estate and non standardized products and returning to a true long term era centered on investment, research and asset allocation.

As of March 31, overseas registered clients reached 20,373 up 11.9% year over year. Overseas AUA was US$9.6 billion up approximately 5.9% year over year. Transaction value of US dollar denominated products was US$1.15 billion for the quarter, broadly flat year over year. Our overseas client base and AUA continue to grow steadily and the pace of our revenue mix adjustment is consistent with the view we shared during our third quarter earnings call last year. Over the past few years we have continued to build our presence across key regions serving global Chinese clients including Hong Kong, Singapore, Japan, Canada, Europe, Australia and the United States.

What we are seeing more clearly is that global Chinese clients are entering a new stage. Their assets, families, identities, education and next generation planning are becoming increasingly globalized. In the past, serving global Chinese families across multiple jurisdictions, languages and generations was a business that relied heavily on individual experience and was extremely difficult to scale or replicate. For the first time, AI makes it possible for this kind of service to be globally coordinated in a systematized, platformized and scalable framework. This is why we believe one of our most important long term positions is not only to be a wealth management institution, but also becoming a global wealth management platform serving Chinese high net worth families around the world.

Over the past two decades, the logic to drive growth in the wealth management industry was clear but linear. One more relationship manager meant more revenue, one more client relationship meant more assets. This logic worked well in the past, but it also meant that the industry's expansion was structurally constrained by labor costs and overall management of the organization. Our view is that AI is fundamentally changing this equation. It is not simply adding another efficiency tool, it is redefining the front office structure of the wealth management industry.

In the past, wealth management was primarily driven by a single relationship manager (RM) model. Today we are gradually forming a new model driven by the collaboration of three front office engines. First, AI enhanced relationship managers. relationship manager (RM)s remain the most important long term driver of strong client relationships, but AI is significantly enhancing their ability to cover clients. In the future, relationship manager (RM)s will focus more on deep client engagement rather than repetitive process work.

Second, AI Wealth Management Department. This is a new type of front office team that we are actively building. The AI Wealth Management Department does not rely on traditional headcount expansion. Instead, it uses AI to drive client operations, content services, allocation support and global collaboration, enabling a lighter organizational structure to serve broader client needs. Singapore is the first fully developed testing ground for this model.

Over the past quarter, AUA in Singapore grew by approximately 192% year over year and revenue generation per capita reached 8.5 times. This is the first validation that without materially expanding the number of relationship managers, AI can elevate individual service capacity, breadth of coverage and professionalism of asset allocation by an order of magnitude. Third AI plus Ecosystem Expansion we believe the future of wealth management will not belong only to the internal relationship manager (RM) systems of large institutions.

More and more independent financial advisors, family offices and external professional firms need a platform that can provide a global asset supply chain, an AI workbench, a compliance foundation, global execution capabilities and brand credibility. We are gradually building this ecosystem. We believe these three engines will together form our growth drivers going forward and the future competitive landscape of the wealth management industry will no longer be defined simply by who has more relationship manager (RM)s but by who has stronger AI capabilities, who has a more complete global compliance network, who has deeper customer context data and who has more replicable platform based service capabilities. This is our most important strategic vision for 2025-20. Based on this strategic vision, we have made substantive progress at three levels. First level enhancing organizational efficiency Last year while maintaining stable net revenues, our total headcount declined by approximately 11% compared with 2024. In the first quarter of this year, headcount further declined by approximately 3% quarter over quarter.

Behind this is the gradual embedding of AI into key areas such as client interaction, content generation and operational processes, enabling the same revenue scale to be supported by a more streamlined organization. This is the first direct evidence of returns on our AI investments. Second level Productization of operating capabilities Our AI relationship manager (RM) platform officially went live in the third quarter of last year. It covers client research, generation of allocation recommendations, service record keeping and content output and is being integrated in parallel across our four booking centers.

AI is no longer just a back office tool. It is becoming a collaborative partner for our relationship manager (RM)'s third level reconstruction of the operating model itself. AI is not a PowerPoint concept for our organization. It has already become a new operating system that can generate real business results and has the potential to be replicated globally. Supporting these AI capabilities is the Global Platform Foundation. We have already built our three global platforms, Ark, Olive, and Glory Support, client and account execution, asset management and insurance, Trust and inheritance services and our four booking Centers in Shanghai, Hong Kong, Singapore and the United States together form our compliance and execution infrastructure. Going forward, our long term AI buildout will continue to advance across four clients, Relationship managers, products and governance.

For the remainder of 2026, our work will continue to focus on the three priority areas clearly set out by our Chairlady in her 2025 letter to shareholders. First, expanding our overseas client base. Second, further growing our global asset allocation capabilities. Third, continue to optimize the revenue structure of Olive our asset management business and lastly, deepen AI applications in our core operating processes and gradually expand global collaboration capabilities within a compliant framework. As of March 31, we held RMB 5.13 billion in cash, cash equivalents and short term investment maintained a healthy balance sheet with zero interest bearing debt.

The Board announced a dividend proposal for approval at our shareholders meeting, including a special dividend that brings the total payout to 100% of full year 2025 non GAAP net income subject to approval at the June 11 meeting, the plan will be implemented. This would extend our shareholder return framework for a third consecutive year based on 100% of non GAAP net income. We will continue to invest in globalization and building AI capabilities while maintaining financial discipline. We are still in the midst of our transformation. The short term pressure points are visible, but the logic of our long term operating model is becoming clearer than ever before. The first quarter is not the destination, it is more like a starting point where our new operating model is beginning to be validated.

We are evolving from a traditional wealth management institution into an AI driven global platform serving Chinese families around the world. This process will not happen overnight, but our direction is becoming increasingly clear. Thank you. I will now hand the time over to CFO Grant to review our financial performance in greater detail.

Grant Pang (CFO)

Thank you Zander and good day to everyone joining us. The first quarter of 2026 marked a solid start to the year and continued progress in our transition toward more investment that and quality driven global wealth management platform. I would like to highlight three key messages. First, while total revenue remained stable, the quality of our revenue mix improved meaningfully driven by strong growth in investment related fundraising fees and performance based income.

Second, disciplined cost management and structured efficiency initiatives delivered substantial operating leverage, operating profit increased significantly and operating margin expanded further. Third, reported net income was affected by non-operational volatility. This mainly reflected mark to market accounting adjustments on a specific listed investment recorded under income from equity affiliates excluding that specific mark to market impact.

Non GAAP Net income would have reached RMB216 million up 28% year over year. For the first quarter, total net revenue was RMB626 million up 1.8% year over year. This stability was achieved despite a deliberate 49.9% reduction in insurance related revenue as we continued to optimize our business mix. One time commissions were RMB 113 million up 5.9% quarter over quarter. Within this, commissions from yearly raised investment products increased to RMB 53 million up 46.1% year over year and 41.6% quarter over quarter.

Recurring management fees were RMB 379 million down 3.4% year over year and 2.5% quarter over quarter. Performance based income reached RMB 100 million up 253% year over year primarily driven by strong realization from RMB denominated private secondary products. Overall, the quarter further demonstrates our continued shift toward a higher quality investment led revenue structure. Our lean operating model continues to deliver measurable financial results with AI increasingly serving as the structured driver of efficiency.

Total operating costs and expenses declined to RMB389 million down 9.2% year over year and 18.1% quarter over quarter. As of the end of the quarter Group headcount was 1,726 down 10.4%. Leading personnel cost to decline 12.2% year over year to RMB 267 million. This reflects productivity gains rather than business contraction. Our AI strategy focuses on improving output per capita and operational efficiency. AI driven tools now support client engagement, automated reporting, suitability processes and routine workflows that previously require manual intervention.

This enables us to scale global operations when maintaining disciplined cost control and service quality. SGA 103 million down 10.8% year over year and 35.1% quarter over quarter. Total operating cost expenses were 389 million down 18.1% compared to last quarter. As a result, operating Profit increased to RMB 236 million up 27.11% year over year. Operating margin therefore expanded to 37.8% compared with 30.3% in the first quarter of last year. Excluding government subsidies, operating profit was RMB 236 million up 33.7%.

These results highlight the scalability of our platform and financial benefits of our structure optimization. Below the operating line, investment interest and Other income totaled RMB 19 million. Interest income remained RMB 32 million. Investment income was negative RMB 2 million. Foreign exchange loss was RMB 6 million and contingent expenses was RMB 3 million. Share of losses from equity and affiliates was RMB 65 million. As a result, non GAAP net income attributable to NOAA was RMB 134 million with a margin of 21.4%.

Total transaction values reached RMB 23.3 billion, up 44.8% year over year and 37.5 quarter over quarter. US dollar denominated private secondary products reached US$293 million up 161% year over year when RMB denominated private secondary products reached RMB 5.3 billion, up 61% year over year. This fundraising momentum directly supported the growth in investment related commissions and reinforced our strategy. As of the end of the quarter, Group AUM was RMB 140.2 billion and AUA was RMB 233.5 billion.

Total AUM and AUA at the group level declined, yet our US dollar denominated base continued to grow. Overseas AUM reached US$6.2 billion, up 5% and overseas AUA reached $9.6 billion up almost 6% year over year. Total diamond and Black cards clients reached 9,029. Overseas diamond black card clients reached 1,781 up 3.8% quarter over quarter, reflecting continued tropical traction in overseas markets. Our balance sheet remains strong and highly liquid as of the end of the quarter.

Cash and cash equivalents will RMB 4.3 billion in short term investments will RMB 834 million, total assets will RMB 11.6 billion and total liabilities will RMB 1.7 billion. Our asset liability ratio remained low at 14.5% and our current ratio was 4.8 times, providing ample flexibility for growth and shareholder returns. We believe our current market valuation does not fully reflect the strength of our balance sheet, the resilience of core earnings and the scalability of our operating model.

With shareholders equity of about RMB 9.9 billion. The company is trading at roughly 0.5 times book value when delivering an annualized return on equity of approximately 5.4%. In our view this does not adequately reflect our intrinsic value long term earnings potential and since the beginning of 2020 we have repurchased 2 million ADFs for profit approximately $20 million representing about 2.7% of outstanding shares and since launching the program shareholder return in 2024 we have cumulatively repurchased 3 million ADS for US$35 million plus we have declared to distribute 100% of our non GAAP net income as dividends for the third consultation consecutive year. These actions reflect management's confidence in the company's intrinsic value and our commitment to enhancing long term shareholder returns. So in summary, the first quarter reflects disciplined execution of our strategic transition, revenue quality improved operating leverage strengthened and AI driven productivity gains continue to enhance structural efficiency when reported earnings were influenced by non-operational volatility.

The underlying trajectory of our core business continues to improve. With a fortress balance sheet, a leaner and more scalable operating platform, and continued capital returns through share repurchases, we believe the company remains fundamentally undervalued relative to its intrinsic strength and long term earnings potential. So we remain fully committed to disciplined execution, prudent capital allocation and sustainable long term value creation.

Thank you everyone and we'll now open the floor for questions.

Yin

Thank you Grant and thank you Mr. Yin for the presentation and operator. Please open the floor for questions.

OPERATOR

Thank you. We will now begin the question and answer session. To ask a question, please press Start then one on your telephone keypad. If you are using a speakerphone, please pick up the handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. At this time we will pause momentarily to assemble our roster. Your first question today comes from Calvin Long from Citi. Please go ahead.

Calvin Long

I'll quickly translate my question. Thanks for taking this. And this is Kevin Lang from Citi. Last Friday China tightened the regulations on cross border brokerage businesses. What is management's view on the evolving regulatory landscape on this front and what is the potential impact to NOAA's domestic market business? Considering a few offshore brokers were fined by regulators regarding their unauthorized mortgage businesses. What is management's take on the compliance risk in domestic market going forward? Thank you.

Sande Yin (Co-founder, Director, and CEO)

Let me do the translation. The CEO we confirmed that the company has paid attention to these news. However, we have to emphasize that this is not exactly a new happening but more like a reinforcement of an existing rules that has been introduced to the market a couple of years ago. However, we would like to emphasize that the company has been always complied with to legal requirements under different jurisdictions and particularly for the overseas account that being opened is or under the complied with requirement under say for example in Hong Kong would be all the KYC requirement and all that.

And also about the money transfer into this investment account is from legitimate financial institute operated under Hong Kong's regulation that all the money transferred into the investment account is from those validated financial institution. But having said that the security business the revenue contribution to the company is rather small. So all in all we don't see any impact or basically with no much impact to NOAA for our business model. And we must once again think that all of our operations under different jurisdictionss but jurisdictions has been always complied with to the legal requirements.

Chinese family around the world. [Inaudible] The Chairlady further supplemented on the answers. The company's been paying huge attention to this newly executed rules and situation and we've been immediately reviewed our internal procedure according to the SFC requirements and we are very comfortable to say that we are fully complied with the legal requirement and that is not only in Hong Kong but across Singapore usa all of our booking centers so different from or slightly different from these securities online platform what we serve is the global Chinese high net worth so slightly different from the business model.

And having said that security business is only contributing less than 1% to our total revenue. And we further emphasize again all the money transfer to the investment account from overseas banks. None. None of the money transferred into the investment account is from China Bank. So she's slightly optimistic that maybe this could be a chance from NOAA because we have always complied to regulations. Which is our app for security trading in the company and all the operational system and also the technical supporting systems are all placed in overseas market and overseas like in Hong Kong and also for IAC we have zero employees.

That basically refers to IAC in the domestic market. So again we are fully complied to the requirement of SFC and csrc. And further the company is already reviewing the referral requirement for the business from domestic to overseas according to the legal requirement. Kelvin, I hope that answers your question.

OPERATOR

Thank you. Your next question comes from Peter Chang from JP Morgan. Please go ahead.

Peter Zhang

Thanks for giving me the opportunity to ask this question. This is Peter Zhang from JP Morgan and I have two questions. First is I will notice that wealth management product transaction volume has picked up sequentially in first quarter which is a really good trend. We are wondering what's the operating trend in second quarter? Do we see continual strong investment sentiment at our clients? And how's the clients demand for domestic and overseas products investment products.

Secondly, my question is on the cost side we have a really good cost control in first quarter. I'm wondering whether management can share what's the full year guidance for our headcount growth and operating expense trends. Thank you.

Dio

Kuhu. Yes, thank you Dio. So back to PJ's question. Peter, for what you asked so what we will, we will want to answer the question divided into two parts which is the domestic market and also the overseas market. We must admit that for investment sentiment a lot of time is affected by the entire market situation and that's why we've been seeing that in 2025 and 2026 until now the investment sentiment has been a lot improved compared to two years ago.

However, what we've been really doing is not just, I mean getting business according to the market situation. So what we've been doing is really trying to promote the idea that we've been helping clients to do the wealth management which is to diverse the asset into different classes and different products so that they can have a better portfolio and that we have been seeing the progress in domestic market and for overseas market. One of the things about being a wealth management company is the ability to getting the good products and according to the CIO report and also in the market in the current market condition AI has been a very important idea for investment idea and that's why we have different products that is AI related from infrastructure to AI company and that we've been doing that and also again promote the same idea of helping clients to do their wealth allocation for a better performance. And that we believe that with all this good quality product on hand we should see a better sales allocations as a result. And we must also emphasize that in terms of the selling abilities that now we've been using AI to support the company or the RM to do the client's risk analysis.

So we've been promoting products according to the client's needs that is more specified in silver during the mass promotion like in the test which again we believe that should enhance the efficiency of our selling and ultimately the selling results for the company. [Inaudible] So we remember history of Noah we've been talking about to protect our clients asset before growing in 2022 and in 2023 is about all this pricing entity in China that is going overseas market.

And since last year we talked about AI and for this year we emphasized in AI infrastructure product. What we've been demonstrating here is we are a real wealth management company. So what we are doing is about how to make sure our clients asset can be well protected and ultimately have growth. And I mean different from a lot of our friendly, not exactly competitors but our peers. Then I would say we always reveal how much profit our clients made every year.

And that has been a very key KPI for our for the staff here. And so I mean in a simple way saying that the company couldn't control a lot of things like the market cap or if the size of the company can grow drastically. However, if we look at what we've been doing with our clients, when we look at we've been profitable for over 62 consecutive quarters, when we've been looking at all these right decisions been due in the past in history, we are confident that we've been able to keep up with the company and ultimately will be seen by the market.

So I'll take Peter's second question. We actually don't have a set agenda, set target for frontline teams obviously although we see a declining number of items but that's really driven by performance. So as you could see, we're still achieving much higher fundraising volume because of the higher quality and high efficiency. So we don't expect to have I would say intentional shrinking of the frontline team. We want to make sure obviously they're fully occupied and able to generate enough volume.

As you know as CEO and chairlady just mentioned there might be opportunity given the current policy situation. At the same time obviously we are targeting middle and back office efficiency especially with the tool of artificial intelligence (AI). We believe that many positions in the past that basically being performed by pure labor, pure hands are now being at least consolidated merged into fewer positions. So that actually leads to significant I would say optimization in middle and back office structure.

But in the meantime I think from the standpoint of how whole year, although we don't expect to see huge expansion or growth in headcounts, we are going to see some key fulfillment in key markets worldwide. Although just couple of people and obviously we'll continue to invest in artificial intelligence (AI) and technology.

Peter Zhang

Thank you. Very clear. Thank you.

OPERATOR

Once again, if you would like to ask a question, Please press start then 1 and wait for your name to be announced. Your next question comes from Yinying Tang from cicc. Please go ahead.

Yinying Tang

[Inaudible] [Inaudible] AI. I will translate my questions. This is Yingming from cicc. I have two questions. First is transaction value active client numbers and relationship manager (RM) numbers for overseas business declined? Could you please talk about the reasons you mentioned? Overseas business has moved from a license set up to formal operation. What's the growth outlook for this segment going forward? My second question is about AI. The AI wealth management department in Singapore has delivered much stronger revenue generation and client service efficiency.

Could you please talk about how AI help relationship manager (RM) develop their business? Thank you.

Yin

So about your question about overseas business performance we do see that a sequential drop in first quarter however when we look at the year on year we still see a growth as reflected that we believe that is a normal performance across different quarters various changes and about how AI has been enhancing our RMs (relationship managers) so I guess we've been slightly touched base on the current way of doing business. We are now trying to be more focused and more accurate in picking products to certain clients so we've been able to distinguish a higher level of clients so that would be more efficient in terms of suggesting product to our clients and allocate the resources that we have on hand and also we have introduced Noah's rewarding system since late last year and that is more like a rewarding system We've been providing certain rewards to our clients that again would be focused on higher quality clients and that as a whole means that our selling methodology could be a better allocated in terms of our resources As you may aware we've been basically fully licensed in Hong Kong and in Singapore we have the different types of license under the regulatory of MAS and we're currently applying for the asset management license as well. So back to your question about the US Market Booking center license and again it's one of the important steps that to complete the development of we are having a very important strategic booking strategy for the company and after the license being granted we are now working on the details of reapplying business in that market and that we believe is going to be a very important strategic move for the company.

[Inaudible] This one. The chair lady now doing a public not announcement but suggestion to all our analysts when you are doing the analysis of the company maybe no longer we should use the relationship manager (RM) as the indicator or number of relationship manager (RM)s as the indicator the company's business size in the future but what we've been trying to suggest that because of the enhancement of AI so all the human relationship manager (RM)S been supported in the first hand and secondly we have built up the AI plus wealth management department as in the CEO's presentation we've talked about how this AI wealth management been able to do or to support to take care of our clients but without enhancing more human resources on that and also what we've been further developing is the AI ecosystem that is more like a like referral business to cooperate with different types of professional individuals in the market that should help us to get clients under the AI plus wealth management system. So using Singapore as an example. Yes, Singapore is not an easy market. It's more but competitive and it's really difficult to hide the right rm.

The cost will be very high and that's why we've been using AI as a testament when we started in this market and we have found out that we have been getting very good results from that market that as mentioned, we have 191% growth in AUA in the first quarter. And that's why we've been going forward to try to apply the same system in into different overseas markets as well. I mean, ultimately we would like to apply that in the domestic market too. However, some limitation of the historical structure and also because of the different AI system that may be slower.

However, we should expect that the application to different overseas markets should be bringing results to the company in the near future. Is there any more questions?

OPERATOR

Thank you. There are no further questions at this time. This concludes our question and answer session. I would now like to turn the conference back over for any closing remarks.

Yin

Thank you. Thank you everyone for joining us today. And please feel free to reach out the IR team for any further questions. Thank you very much.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.