A formal announcement for NOAA Holdings Limited's third quarter 2025 earnings conference call, detailing listen-only mode, assistance availability, and post-presentation Q&A opportunity.

A call was hosted by Investor Relations, featuring a business overview by the CEO, financial and operational results discussion by the CFO, and a Q&A session. Forward-looking statements were noted as subject to risks and uncertainties, with no obligation to update them except as required by law.

Despite slight year-on-year revenue decline, Q3 saw significant improvements in profitability and margins, with non-GAAP net income up over 50%. Accelerated growth in investment products and the implementation of key initiatives, including overseas booking centers and AI projects, underscore the company's transformation strategy. The revenue mix is improving, driven by a larger share of new revenue from investment products, reflecting a focus on sustainable growth.

The dialogue highlights the distinct performance trends in overseas and domestic operations, emphasizing growth in investment products and the strategic rebalancing of operations. Overseas operations show increases in AUA and AUM, while domestic operations benefit from the A-share market rebound and focus on exits in the primary market. The insurance segment is in an adjustment phase, with planned consolidation and transformation. Investment services remain a core focus, and the company continues to serve clients with insurance products through a capital-light model.

The dialogue highlights the company's progress in establishing overseas booking centers, obtaining regulatory licenses, and integrating AI into operations. It outlines strategic growth through core capabilities enhancement, AI development, and global service platform expansion, aiming to improve shareholder returns and market share in global Chinese wealth management.

Despite a year-over-year decline in total net revenues, Noaa achieved robust non-GAAP net income growth of 52.2% for Q3 2025, driven by disciplined cost management and prudent investment decisions. Total AUM reached $5.9 billion, with notable growth in overseas clients and RMB-denominated products. The company maintained a strong balance sheet, with cash and short-term investments totaling RMB 5.0 billion, supporting global expansion and technology investments. Noaa remains confident in delivering sustainable growth and long-term value.

A Q&A session regarding investment products and the booking sector's potential increase, with participants encouraged to ask questions in English after restating them in Chinese if necessary. The session acknowledges strong results and opens the floor for inquiries.

Discusses the financial impact of AI investments and strategy optimization, focusing on revenue growth, client acquisition, and business model upgrades. Highlights the importance of tracking investment product revenue, AI RM team activation, and Eem service consolidation. Mentions infrastructure development for the US booking center and the shift in overseas vs. domestic relationship managers, attributing trends to strategic changes and market dynamics.

The dialogue focuses on a company's strategies for growth, emphasizing AI development and global booking centers to enhance revenue and client experience. It highlights the shift towards a more active investment approach, aiming to support overseas market development while maintaining a prudent financial stance. The discussion also touches on the introduction of AI in resource management, showcasing its efficiency and capacity to serve more clients, alongside the establishment of Clubhouse-style offices for elite client engagement in the domestic market.

The dialogue discusses the company's strategic shift towards AI-driven wealth management, highlighting the integration of AI assistants with RMs to enhance client engagement and service efficiency. It outlines the establishment of AI wealth management and AI ecosystem teams, emphasizing the focus on operational-driven models over human-centric ones. The company aims to leverage AI to strengthen its global platform and infrastructure, ensuring sustainable growth in both domestic and overseas markets. The strategy involves developing AI capabilities to improve investment product sales, particularly through digital channels, while also exploring commission-based agencies and EAM business models to diversify revenue streams.

The company emphasizes investments in funds that combat inflation, such as property and gold, alongside technology-related products, including AI. Leveraging a dedicated US team, the firm has enhanced its product offerings, notably in hedge funds and secondary market investments. Despite client interest in renminbi products, the company remains cautious, prioritizing overseas technology-focused investments.

The dialogue emphasizes the importance of a global infrastructure and comprehensive services in meeting the needs of Chinese high-net-worth clients. The speaker highlights the company's ability to serve all global Chinese, its strong asset management, and the establishment of a commission-based insurance agency team. The strategy focuses on building a global platform, developing business units, and utilizing new technologies to provide services across different time zones and geographical restrictions, aiming to be an AUM-driven revenue model.

The dialogue highlights significant contributions from investment income and equity affiliates to net profit growth, attributing this to past strategic decisions and favorable market conditions. It also discusses a rise in active clients, driven by a focus on investment products and enhanced client relationships, reflecting the company's shift towards becoming an AUM-driven entity.

AI significantly enhances client acquisition efficiency in overseas markets, as demonstrated by a Singapore client case. Despite a decline in overseas relationship managers, the focus shifts towards serving existing clients' investment needs, leveraging AI for better service delivery. The medium-term target for overseas RMT expansion remains, but AI's role in achieving this is now pivotal, enabling faster client onboarding and enhanced solutions, thus transforming the approach to overseas client acquisition and service.

A company shares insights on how their early digitalization efforts enabled efficient AI adoption, leading to current benefits and promising future gains.

The session ended with an invitation to contact IRC for additional queries, thanking participants, and announcing the conference's conclusion.