Xian Zhong’en

Xian Zhong’en asked about the significant contribution of investment income and income from equity in affiliates to net profit growth, requesting reasons behind this trend and expectations for Q4. He also inquired about the double-digit year-over-year and sequential increase in active clients, asking for observations on client behavior, financial statement impact, and the trend for Q4.

Answer

Chairwoman Jingbo Wang explained that the investment income is primarily due to successful exits from previous investments, particularly as a GP for PE funds, and valuation gains in a favorable market. She attributed the increase in active clients to a stronger focus on investment products, which encourage repeat buying and foster stronger client relationships, reinforcing the company's AUM-driven strategy. CEO Zander Yin and Chairwoman Wang further elaborated that past right investment decisions, including PE funds and U.S. listings, are now yielding good results, attracting more clients to invest with Noah Holdings.

Xian Zhong’en asked about the reasons behind the significant contribution of investment income and income from equity in affiliates to Noah Holdings' net profit growth, and the expected trend for these items in Q4. He also inquired about the observed double-digit year-on-year and sequential growth in active client numbers for Q3, seeking insights into client behavior, the financial impact, and the trend anticipated for Q4.

Answer

CEO Zander Yin attributed the investment income growth to successful exits and valuation gains from previous investments, particularly as a GP for PE funds, noting that while unpredictable, such gains are recurring. He linked the increase in active clients to the company's shift towards investment products, which foster continuous client engagement and higher repurchase rates, expecting this trend to continue with AUM growth. Chairwoman Jingbo Wang added that strong investment performance attracts clients, encouraging further investment.