Good day. And welcome to the Noah Holdings Limited Third Quarter 2020 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. Please note that this event is being recorded. I would now like to turn the conference over to Jingbo Wang. Please go ahead, sir.

Thank you. 2020 is a new beginning after 30 years of development. Shanghai has developed into an international financial center, specializes in Renminbi oriented asset allocation. Currently, more than 50% of the Renminbi assets held by overseas market entities are here, making the city an open Renminbi asset allocation business. This year 2020 also marks Noah's 15th year of Inception and Noah Holdings 10th Listing Anniversary on the New York Stock Exchange. Noah was founded in Shanghai. We're still headquartered here. We're grateful for this great city's development and its support for us as a firm. It has been five quarters since the Camsing incident last year and our transformative shift from single-counterparty private credit products into standardized products. We thank our team for their efforts and the market for its support. Today, I feel honored to report our satisfactory achievements in the third quarter to our shareholders and analysts. Both transaction value of standardized products and a number of active clients reached a record high. Clients’ confidence are restored and team morale is good. It is evident that our strategic transformation has reached a successful milestone. I would like to first briefly on our Holdings overall performance in the third quarter of 2020, the development of our major business segments, the growth targets, as well as investment strategy. Then, I would like to share my opinions on macro and regulatory landscape. Then Grant will present the financial results for the third quarter, followed by a Q&A session. Starting from the third quarter of 2019 Noah seized the offering of non-standardized single-counterparty private credit products, accelerated the redemption of these products and transformed to full scale public securities products. After five quarters of transformation, with the strong support of our clients and the continuous efforts of our team, transaction value…

Thank you, Chairlady, and thank you, Sonia for translating. Hello everyone. We're very excited to share with you the stellar financial results for the third quarter of 2020, marking a very successful transformation arising from resumed client trust and confidence of the economic outlook. While also very happy to report that we are ahead of schedule to deliver the full year non-GAAP net income guidance amidst a very volatile and challenging environment this year. Net revenues for the third quarter of 2020 were RMB859 million, up 2% year-over-year and 15% quarter-over-quarter. Non-GAAP net income for the quarter was RMB301 million, marking a total year-to-date non-GAAP net income of 2020 of RMB864.2 million achieving 96% full year guidance. By revenue contribution we achieved one-time commission revenue in the amount of RMB194.8 million, compared with RMB150 million in the same quarter last year, up almost 30% and 53.5% quarter-over-quarter. Considering this growth is achieved with very little contribution from overseas insurance due to the COVID-19 situation, we're very happy to see the full recovery of a capability of providing the right product to our clients. As mentioned by Chairlady, Wang, was surely encouraging for us is to see the record number of active clients reaching 20,509 this quarter, up 105.9% year-over-year and almost 40% quarter-over-quarter. The growth was fueled by increased activities in both conventional products and mutual funds distributions. We believe this indicates a restored client confidence and a sign of resumed rapid business growth. Total transaction values of financial product were distributed during this quarter was RMB28.8 billion, an increase of 122% from a year ago. Among which RMB20.8 billion were public security products or standardized products also record high for this category since listening. After five quarters of transformation, public security product has fully replaced non-standardized single-counterparty credit funds…

[Operator Instructions] And our first question will come from Ethan Wang with CLAS (sic) [CLSA]. Please go ahead.

Thank you, and good morning, management. I have two questions. The first is on our full year guidance. Just wondering if our full year guidance is too conservative, because based on our first three quarters results, it seems like we can increase our full year guidance a bit and so we are going to have, say, in the fourth quarter revenue, if we think about like a reasonable growth from last year then your guidance should be higher. How should we think about that? That's my first question. And the second question is on the regulations and two parts, can you guys update on the latest development of fund advisory licenses? And the second is on the internet deposits, because it seems like regulators have recently tightened their grip in this area, so this effects our business down the road and what's our latest trend for our departed business? Thank you.

Hi, Ethan. Can you repeat the last half of your question about the internet deposit?

Sure. It seems that regulators have recently tightened our internet deposit, PBOC, Financial Credit Report went out to state some irregularities in this area. So this affects our business because previously we were selling with plan to going through this system. Does this affect our plan?

Sure, Ethan. Thank you for your question. I'll take the first question and Chairlady, Wang, will address the second? For the first question, I believe, when we actually gave the full year financial guidance at the beginning of the year, obviously, the outlook for 2020 was quite uncertain. We believe that we made a, I would say, reasonable, I wouldn't say, it's overly conservative, I believe at that time was still pretty challenging, looking at the road ahead of us, especially knowing that the gate to Hong Kong wouldn't be open very soon. So we'll be missing a pretty big chunk of revenue from overseas insurance. So we don't believe that target was set too overly conservative. And we’re very lucky to see a very strong financial performance in the third quarter, but we remain calm for the rest of the year. As you know, in the industry, we do experience some sort of seasonality in the fourth quarter, because holiday season, as well as the fund uses for institutions. So, we'll still maintain the same guidance. Although, we're very confident that we'll be able to at least get to the very high end of that range, a little bit exceeding that particular guidance. So I'll let Chairlady, Wang, to take the second question. [Foreign Language]

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And our next question will come from Xue Yuan with BICC (sic) [CICC]. Please go ahead.

[Foreign Language] Thank you.

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Okay. [Foreign Language]

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Our next question will come from Daphne Poon. Please go ahead.

Hi. Good morning, management. Thanks for taking my questions. I want to first congratulation on the strong result. So I have three questions. So first is regarding your Grofers management fee. We saw that the management fee has been picking up quite consistently in the past few quarters. So in the latest quarter by our calculation is about 92 basis points. So just wondering if there's any particular drivers behind and whether the management see this as a sustainable trend? And second is also regarding Grofers, so we noted that the AUM for the purpose of clarity from the Grofers, the growth has been also muted in the past few quarters. So just wondering, what's the reason behind and what's the outlook there and also if the management can share the outlook on the overall Grofers AUM, like, when you expect for a turnaround maybe sometime even next year? And lastly, just wondering if there's any update on the Camsing [inaudible] paying in terms of your client acceptance so far? Thank you.

Thank you, Daphne. Let me ask the question first.

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[Foreign Language] Daphne your question on the Grofers management fee, first of all, it keeps going up, one, we actually having thicker layer on private equity, so which actually comes in with the higher management fee than the credit products that have little management fee – recurring management fee. And two is the increase this quarter actually still has a little to do with the continued exit of some of the credit products that have back end management fees. We expect that to at least the increasing in the PE products will continue to bring in health management fee flow. And in terms of the Camsing update, we have, as of November the 13th, the first batch day for the settlement plan, we have two batch dates. As of the first batch day, we have signed about 240 contracts with our clients. The one-third in terms of number of people and it's almost 30% as well for the total amount outstanding. So it's about 1 billion in dollar amount and about 240 in number of holders. And the second batch comes along at the end of the year, which will be end of the settlement plan. We expect that to be probably going to be around 50% to 60% of total number of people to be conservative.

Okay. Thank you. Sorry, can I just clarify the 50% to 60% is just for segment management or total number of clients.

Total number of clients as -- usually it also coincides with amount. So it's about 50% to 60% and 50% to 60% of the dollar value. So that's on the conservative side. If we are being a little bit optimistic, I think, it's probably in the range of 70% to 80%. We'll see.

Okay. Got it. Thank you.

Okay. Thanks, Daphne.

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Grant Pan for any closing remarks. Please go ahead.

Okay. So thank you shareholders and analysts. Very excited to be able to deliver these results for you and we'll have, obviously, one-on-one calls afterwards, so we could probably talk a little bit in more details. So see you in a bit.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.