A：The three trends observed in the first quarter of 2026 were: (1) a continuing improvement in the company's profitability structure, with an operating margin reaching one of the highest quarterly levels in recent years; (2) regaining momentum in domestic core investment and asset allocation, with both active clients and transaction value achieving double-digit growth; and (3) the overseas business advancing in line with the strategy of proactively adjusting revenue mix, while a new operating model driven by globalization and AI is gradually taking shape.

A：The two milestones mentioned in the company's progress are: (1) The 'A deal' has received final approval, and key team members are set to officially join in June, signaling the company's network is entering a new phase, moving from license deployment to operational execution; and (2) Progress in shifting from a single relationship manager model to a new model driven by the collaboration of AI-enhanced relationship managers and traditional relationship managers.

A：In the first quarter, the company's net revenues were RMB 626 million, up 1.8% year over year and down 14.7% quarter over quarter. The operating profit reached RMB 236 million, up 27.1% year over year, with an operating margin of 37.8%, which was one of the highest quarterly levels in recent years. The non-GAAP net income was RMB 134 million, and the company expects the full year operating margin to remain in a healthy range above 30%.

A：The strategic direction for the domestic business is to continue focusing on the secondary market and building a leading position in the prior, including public mutual fund, private secondary market products, client operations, and the NOAA Upright fund distribution platform capabilities. The company aims to enhance operations in these areas and believes the domestic wealth management industry is transitioning towards a true long-term era centered on investment research and asset allocation.

A：The company plans to leverage AI to globally coordinate and scale services for Chinese high net worth families around the world. This includes building a presence across key regions serving global Chinese clients and utilizing a platformization and scalable framework to handle assets, family identity, education, and next-generation planning that are increasingly globalized.

A：According to the company, AI is fundamentally changing the wealth management industry by redefining the front office structure rather than just providing another efficiency tool. It enhances the ability of relationship managers to cover clients and focuses future relationship managers on deep client engagement rather than routine process work.

A：The new model being formed by the company utilizes AI to drive client operations, content services, allocation support, and global collaboration. This creates a lighter organizational structure that can serve broader client needs. The model aims to elevate individual service capacity, breadth of coverage, and professionalism of asset allocation without relying on traditional headcount expansion. Singapore is the first fully developed testing ground for this model, and it has shown a 192% year-over-year growth in AUA and revenue generation per capita of 8.5 times.

A：The three engines that will drive the company's growth in the future of wealth management are AI capabilities, a global compliance network, customer context data, and replicable platform-based service capabilities.

A：The company has demonstrated the return on its AI investments by enhancing organizational efficiency, with a decline in total headcount while maintaining stable net revenues, and by the productization of operating capabilities, as evidenced by the launch of the AI.M platform and its integration across booking centers.

A：The three priority areas for the remainder of 2026 are expanding the overseas client base, further growing global asset allocation capabilities, and continuing to optimize the revenue structure of all asset management business, as outlined in the 2025 letter to shareholders by the chairlady.

A：The company is in the midst of its transformation, and while the first quarter represents a starting point where the new operating model is beginning to be validated, it is clear that the company is evolving from a traditional wealth management institution into an AI-driven global platform serving Chinese families around the world.

A：In the first quarter of 2026, the company's total net revenue was RMB 626 million, up 1.8% year over year, driven by a strong revenue mix quality improvement. Operating costs and expenses declined to RMB 389 million, down 9.2% year over year and 18.1% quarter over quarter, indicating a continued improvement in the financial performance and operational efficiency through the lean operating model.

A：The company has been returning value to shareholders through share repurchases, having repurchased 2 million ads for approximately $20 million, representing about 2% of the outstanding shares, since the beginning of 2020. Cumulatively, the company has repurchased 3 million ads for $35 million and has also declared a distributed 100% of its non-GAAP net income as dividends for the third consecutive year.

A：The company has confirmed paying attention to the tightened cross-border business regulations in China but emphasizes that these are not new rules but rather a reinforcement of existing ones that have been in the market for a few years. The company reassures compliance with legal requirements in different jurisdictions, including for overseas accounts. It notes that the revenue contribution from the security business, which is affected by these regulations, is rather small and, therefore, does not foresee any significant impact to the company's business model.

A：For the first quarter, the company reported total net revenue of RMB 1,148 million, up 100% year over year. Operating profit increased significantly, and operating margin expanded. Net income was affected by non-operational volatility, mainly from mark to market accounting adjustments. Non-GAAP net income would have reached RMB 285 million, up 28% year over year. Total operating costs and expenses declined to RMB 393 million, down 18.1% compared to the last quarter, leading to an increase in operating profit and an expanded operating margin.

A：AI is serving as a structural driver of efficiency in the company's operations, with total operating costs and expenses declining and productivity gains achieved. AI-driven tools support client engagement, automated reporting, suitability processes, and routine workflows, enabling the scaling of global operations while maintaining service quality. AI has contributed to a 10.3 million decrease in operating expenses, demonstrating its role in enhancing the efficiency of the company's lean operating model.

A：The company has repurchased 2 million ADfs for approximately US dollar $20 million, representing about 4% of outstanding shares since the beginning of 2020, and has also declared to distribute $35 million in non-GAAP net income as dividends for the third consecutive year. These actions reflect management's confidence in the company's intrinsic value and commitment to enhancing long-term shareholder returns.

A：Management views the recent tightened cross-border regulations as not representing a new set of rules but rather a reinforcement of existing ones. The company has always complied with legal requirements in various jurisdictions, including Anti-Money Laundering (AML) requirements and ensuring all funds transferred into investment accounts come from legitimate financial institutions. The revenue contribution from the security business is small, and management does not foresee much impact on the company's business model. Operations under different jurisdictions have consistently complied with legal requirements.

A：The company has paid significant attention to new rules and regulations, reviewed its internal procedures according to the Securities and Futures Commission (SFC) requirements, and is confident that it fully complies with legal requirements not only in Hong Kong but across Singapore, USA, and other regions. The company serves a global Chinese high-net-worth client base with a business model that is slightly different from the securities online platform, and the revenue contribution from securities trading is less than 1%. Furthermore, all money transfers to investment accounts from overseas banks are non-zero, emphasizing the company's commitment to compliance.

A：The operating trend in the second quarter is expected to continue a strong investment sentiment, influenced by market conditions. The company has been promoting wealth management, helping clients diversify assets into different classes and products. For the domestic market and overseas market, investment sentiment has been improving, and the company has introduced AI-related products to support investment ideas. The company believes that with high-quality products and AI-backed client risk analysis, sales allocations should improve, and the focus remains on protecting and growing client assets.

A：Management does not provide a set agenda or target for frontline teams, but notes a declining number of arms driven by performance. The company continues to achieve higher fundraising due to the quality and efficiency of its operations, and does not expect intentional shrinking of the front-line team. The focus is on ensuring the team is fully utilized and generates results.