2022-08-23 04:20Financial Data and Key Metrics Changes - In Q2 2022, the company achieved net revenues of RMB738 million, a decrease of 17.9% year-over-year and 7.2% quarter-over-quarter [13][42] - Non-GAAP net income attributable to shareholders was RMB365 million, up 5.4% year-over-year and 13.3% quarter-over-quarter, with accumulated non-GAAP net income reaching RMB669 million, representing 46% of the annual guidance [13][35] - The operating margin improved to 43.8%, up 17.4% year-over-year and 11% quarter-over-quarter [36][37] Business Line Data and Key Metrics Changes - The transaction value for the second quarter was RMB19.3 billion, down 22.7% year-over-year but up 28.8% quarter-over-quarter [14][37] - Mutual funds transaction value was RMB12.2 billion, an increase of 30% year-over-year and 71.4% quarter-over-quarter [15][38] - Private equity transaction value was RMB3.9 billion, up 23.2% quarter-over-quarter but down 39% year-over-year [14][39] Market Data and Key Metrics Changes - The overall household savings rate increased to 34% by the end of Q2 2022, compared to approximately 30% pre-pandemic [33] - The company noted a significant change in investment sentiment among high net worth families, with a focus on safety and liquidity of assets [6][11] Company Strategy and Development Direction - The company is focusing on dual circulation strategy, encouraging clients to initiate investments both onshore and offshore [51] - A long-term annual dividend mechanism was approved, aiming to pay no less than 10% of non-GAAP net income to shareholders [12][34] - The company is enhancing its international presence by establishing a larger private banking team and global product screening team in Hong Kong [22] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the geopolitical environment and the prolonged COVID-19 lockdowns, which affected client engagement and investment sentiment [4][32] - The outlook for the second half of 2022 remains cautiously optimistic, with expectations for improved client sentiment and increased investment activity during major marketing events [59][60] Other Important Information - The company has been actively recovering lost clients and reactivating dormant accounts, with 714 lost clients recovered this year [17] - The Sustainable Development Committee has been promoting ESG issues in investment decisions, with a notable increase in ESG awareness among clients [23][24] Q&A Session Summary Question: Client base growth in a volatile market - Management indicated that growth in diamond and black card clients was primarily driven by existing clients increasing their investments and referrals due to enhanced client satisfaction [54] Question: Relationship managers and team restructuring - Management is focused on upgrading the talent mix by recruiting fresh graduates and experienced veterans, aiming for growth in the relationship management team [56]