Hello everyone. Joining me today are Ms. Jingbo Wang; Chairman and CEO and Ms. Ching Tao, Noah's CFO. I will start by providing a brief overview of the financial highlights for the fourth quarter and full year 2015 and walk you through you the performance of our core wealth and asset management businesses. After that Chairman Wang will provide an update on our strategic initiative to establish an integrated financial services platform to support the sustainable growth of the company. Lastly Ching will provide further insight into our financials and provide our 2016 guidance. We will be happy to take any questions at the end of our prepared remarks. Noah has always been focused on improving our core competitiveness in the wealth and management industry. We are committed to maintaining our stringent risk control standards, selecting the best quality products in the global market, enhancing the professional service skills of our relationship managers, continuously strengthening our asset management team and actively doing the development of our internet finance business. These assets has been recognized by our clients and investors, particularly given that we've been operating in the context of a structural transition in China's broader economy and volatility in the global capital markets. I'm pleased to report that both the top and bottom lines were in line with our expectations in the fourth quarter of 2015. We also achieved a non-GAAP net income of RMB603 million for the full year 2015. This is in line with our guidance that we gave at the beginning of the year. First I'll run through some of the highlights for the quarter and for the year. Net revenues were RMB574 million in the fourth quarter, a 47.5% increase from the fourth quarter in 2014. And non-GAAP net income was RMB106 million, up 11.4% year-over-year.…

Thank you, Kenny. Looking back at 2015 as an industry professional with over 15 years' experience, we've once again learned the importance of respecting the market. Looking at the market today, on the one hand it is concerning that we will face a slowing economy in China and globally, with an increasing risk of deflation. On the other hand, China's wealth and asset management industry is massive in scale and has huge potential for future growth. And Noah is the one of the key players in the industry. Over the past 10 years, Noah has maintained its focus on a well-defined strategy. With our extensive market experience and deep industry insight we are positioned as a wealth management and asset management expert that serves Chinese people all over the world. We have maintained our focus on building our core competitive advantages in wealth and asset management. We have continuously improved our capabilities in research, product selection risk control and asset management capabilities. We have also enhanced the professional service of our relationship mangers and continuously strived to understand our customer's real and long-term needs and build long-term trust with our customers. In 2015 in the context of ongoing internal transformation and an abnormal competitive environment, we have made significant progress. Transformation is difficult and we are very pleased that we have successfully resisted the temptations of the market and customer requests and focused on customer communication and investor education. Although we are yet to see the results of these assets internally we are fully aligned in our commitment to being the best version of ourselves, and living our corporate values rather than praying for the best market. We are confident about the future thanks to our culture and our values. We believe that we will continuously increase our market share…

Thank you, Chairman Wang and hello everyone. Today I'll give an overview of our Q4 and full year results and then open the call up for questions. As Kenny and Chairman Wang noted we are really pleased to deliver solid results for the fourth quarter and full year 2015. Q4 net revenues increased 47.5% to Renminbi 573.7 million or US$88.6 million and full year net revenues increased 38.7% to Renminbi 2.1 billion or US$327.3 million. On the bottom line non-GAAP net income grew 11.4% year-over-year to Renminbi 106.2 million or US$16.4 million in the fourth quarter. And for full year 2015 non-GAAP net income grew 25.9% to RMB603.5 million or $93.2 million which was in line with our guidance of $90 million to $95 million. Looking more closely at our fourth quarter performance, we distributed approximately RMB20 billion or $3.1 billion of wealth management products in the fourth quarter representing a 69.4% increase from the same period a year ago. You can find the breakdown of operating metrics in our wealth management business at the back of the earnings release. The weighted average, one time commission rate for the fourth quarter was 0.86% compared to 1.03% in the same period last year and 0.85% in the third quarter of 2015. The fluctuations in the commission rate are primarily due to shifts in our product mix. Recurring revenues were RMB287 million or $44.3 million accounting for 47.6% of total revenues in the fourth quarter of 2015, compared to RMB217.5 million in the fourth quarter of 2014 or 52.7% of total revenues. The decline in recurring revenues as a percentage of net revenues was primarily due to change in the product mix of our wealth management business and a change in the composition of asset types in our asset management business. Going…

Yes, thank you. We will now begin the question-and-answer session. [Operator Instructions] And the first question comes from the Sam Dubinsky with Carlson Capital.

Hey guys, thanks for taking my questions. Just a few here, if I look at your operating income it declined 57% year-over-year in Q4. So how do we think about that versus the net income guidance for 14% to 19% growth, like how does the operating income line trend going forward?

Hey Sam, thanks for the question. It's Kenny, can you hear me well?

Yes.

Okay, thanks for asking that question first. Actually I want to address that head on. First of all I think Ching mentioned a lot in her speech around the change in product mix which is quite conscious. We basically wanted to move towards longer duration product which actually brings us recurring revenue for many years to come. So in essence what you see is we have costs that are more upfront, a lot more recurring revenue in the future years. And so the margin is the margin product for the particular quarter but the revenue actually doesn't get reflected until years later. So that's one point. Secondly is actually you see that in our operating income we actually have an item called government subsidy, which actually tends to fluctuate between quarters but quite stable over the year. So what happened was that we actually received a larger portion in previous quarters and we received much smaller portion in the fourth quarter. But over the whole year we actually received probably around 24% to 30% more government subsidies in 2015. So that's why I think we did a very thorough budget for next year. We are quite confident we'll actually reach the guidance that we just announced.

And what's embedded in terms of if you can disclose like government subsidies and things like performance payments just so we can better…

Yeah, I think we can't do all the line by line items but essentially the name is not exactly a subsidy. What this is, we conduct businesses in certain cities where the government provide incentives for us to be conducting businesses in those cities. And those basically are, the more business we do the more incentives we get and that's it. So they're not really subsidizing us but much more we do - in certain cities that we do businesses in then they will basically help us with a refund or it really it depends on the volume business that we do. So it's highly related to how much we do in a particular city.

Okay, great. And just how do we think about the OpEx line going forward given the change in the product mix?

The - I think it will become more stable. I think in December, in the fourth quarter, there is a conscious choice to make sure we get a lot more market share. So you see that we have a substantial increase in client numbers, we have substantial increase in terms of volume, as a way to prepare for 2016. That's why I think in terms of the margin will be in line with average what we see of 2015. The fourth quarter is a bit of an abnormal quarter because of the fluctuations in subsidy as well as the incentives we give to the relationship managers for the long-term duration products.

Yeah, so I would just add to that to say that in the fourth quarter in particular there was a bit more of a hedge fund relationship manager compensation, certain selling and marketing expenses and also relatively less government subsidy that were received. We expect the operating margin to normalize and see improvements in the first quarter of 2016 and going forward.

Okay and just tax rate things like that I thought the tax rate look little bit low this quarter. How to think about that?

Yes, we have been trying to optimize our tax rate and work with the government authorities. So we do operate businesses in certain areas where we have a preferential tax rate. And so overall that is how our effective tax rate comes down a little bit.

So I mean thanks to [indiscernible] the team we've - in the last 18 months we have a very strong financing that basically helped us on three things. One is the government "subsidy" second is the tax rate, third is you see that now cash and investment income has also improved. We think that in terms of treasury and finance functions the Noah team has really delivered this year and we will continue to improve on that next year.

Okay, great and my last one is just what exactly the investment income was this quarter and Q4 looked a bit higher than normal. What exactly is in investment income and also is that just straight line going forward or how do we think about that?

I would like at the full year amount. Investment income typically represents returns earned from cash and cash equivalent short-term money market side and certain short-term wealth management products. So still very, very safe investment.

Okay. So that's the number for the year, not the quarter?

In a particular quarter there maybe a little bit of volatility. I would also note that we have our cash and cash equivalents invested in both US dollar and RMB, and so depending on the fluctuation in the exchange rate et cetera there maybe a little bit difference in how we book it, which is also why we've now, going forward changed our reporting currency to RMB with one column for US dollar reconciliation. But the cash and cash equivalents and short-term investments mainly are money markets and other very safe fairly highly liquid short-term wealth management products.

Okay, thank you very much.

Thanks, Sam.

Thank you.

Thank you. And the next question comes from Du Lijuan with CICC.

Okay. Thanks for taking my question. I have [indiscernible] first for Ms. Wang and Kenny and second, the other one for Ching. So the first question is likely we will see fee rate decline trend although with an upgrading product mix, and we also see the company is getting more cautious attitude in product screening. So my question is that can you share with us how is Noah going to maintain the double digit growth in 2016, and for Ms. Wang, if you have to list your key focus this year for Noah, could you give us three priorities this year. And the last question for Ching, is that Ching could you share more color on the incentive policy for I&M [ph] when they sell these key products with longer duration? I mean could you give us some quantitative indicators why they need to be paid more, and how do pay them with in different years or something. Thanks.

Okay. So I'll first answer the first question and I'll let Chairman Wang answer the second and I'll have Ching answer the third one. So in terms of maintaining double digit growth and a guidance of 20% increase in profit, I think you will see that this quarter is a strategic quarter. What we see in the market is that there is a lot of room for us to gain substantial market share. So we actually change few things. One is we shift towards very long term products which allow us to be very sticky with our clients. So average duration is seven plus years and so these are clients that'll stay with us for a long time and not only do we have active increase in number of clients, but also active increase in the duration of products they buy and active increase in the amount that they purchase on a per transaction basis. The second thing that we've done is you see we've shifted the product mix not only to long term PE but also to insurance. Now the insurance will never be a majority of what we do. But it's actually important part of having a broader conversation with the clients on asset management and asset allocation. And so our insurance brokerage license in both Hong Kong and China have actually helped us substantially in this quarter. So our client insurance increase by 170% plus. So that would immediately help us set a good base for 2016. The third thing we've done actually you see that in our relationship manager base, we've increased substantially from 700 plus to about 1,000 plus now. That increase was not just focused on this year. We actually spent a year training them so that they are actually even more productive next year. We actually sent this year for example 130 relationship managers to Zurich to get them trained on family office allocation. So this whole year is basically a year of preparation of consolidation and market share for next year. So that's why we are quite comfortable we'll get to the guidance we just announced.

Okay. Our Chairlady Wang will answer the question in Chinese and then we'll translate that in English.

Okay, thank you for your question. In terms of the three priorities what are we are focusing in 2016. I think the first one we still want to optimize our product structure and also educating investors and we would like to have also have to [indiscernible] investment philosophy which is consistent with the institutional investment. The second one is actually we would like to enhance our investment capacity of our Gopher Asset Management in all firms. I think in 2016 I think it's a very good opportunity for the Gopher Asset to leap forward. Number three is actually we're going to focus on the Internet finance or Internet wealth management platform. We think it's a very good opportunity in this year for us to enhance that capability as well.

[Foreign Language - Chinese].

So let me just translate the question right. So the question was when do we see the Internet finance business turning into, from a volume gain to a one that focused on profitability. So that's the question, yeah.

Okay I think we have to focus on long term. I think to establish a strong Internet finance platform is an irreversible trend. But now we're not particularly focusing on profitability but we want to gain more market share. Number two we still think the landscape, the competitive landscape in the Internet finance industry is still very challenging. However the recent clean-up actually opens up more opportunity for us to grow in the future. I just want to add to my comment. Actually there has been a lot of debate over Internet finance or financing Internet. Actually our conclusion is that actually the core is still financed. So I think Noah has a very strong platform and is very competitive in terms of fund raising and as a finance company. So I think Noah has a really good long-term potential to further grow our Internet finance platform.

Just to - it's Kenny here, just to add a point around Internet finance and how much we're investing. Basically we're looking at this very closely. The two main businesses the wealth and asset management businesses are the main profit driver of the entire group. The Internet finance, this is an area that we want to invest in. But we're also ensuring that how much we invest is actually a small percentage of the entire group's profit every year. And now that we've grown potentially in 2015, we'll continue to invest in this particular platform, but at the same time we're actually looking at the numbers very closely to ensure that we don't exceed the amount that we want to invest in this particular new business.

Okay, Ching, could you share your view on the incentive policy?

Yeah. So basically we have a fairly complicated commission structure by which we pay our relationship managers. The commission differs a little bit by asset class. So typically the private equity asset class has slightly higher commission rate. So since we did distribute more in terms of transaction value in the fourth quarter, the relation manager compensation correspondingly was a little bit higher. Now I would characterize that as akin to a tiny mismatch between when we book a cost and also when we receive the revenue, because the private equity fund generate management fees and the duration, the arbitration has increased to over seven years. So we expect very healthy stream of recurring service fees to come from the private equity products that we distributed. We're also seeing near-term that there is going to be increased revenue from these management fees in early 2016. So I cannot give you the specific amount but we expect overall that the operating margin will recover and will be more close to be average levels we've been running at for the past few years. So I would not be terribly concerned about the quarter-over-quarter volatility.

Okay. Thanks.

Thank you. And the next question comes from Joy Wu with JPMorgan.

Hi, management. Thank you for taking my question. I have two questions. One is do you see any capital needs going forward for business expansion? And the second is we hear some rumors that Noah is going private? I'm wondering if that is one option going forward for Noah. Thank you.

Okay. So thanks for the question Joy, and you were asking very direct questions. One is there is no plan to privatize and they are just all rumors that we are going to take this company private. So we will maintain our U.S. listing and we will not go private. So the entire discussion around AB [ph] structure is actually as we said we've been very transparent, we want to focus on the long-term. We want to create a structure which allow the fund to have more execution ability and agility in that. So there is no plans at all to privatize or delist from the U.S. We want to maintain a U.S. listing, hope that is clear. The first question really around capital. We do have a large amount of cash. We are cautious in what we look into but we are quite active into thinking to the potential acquisition expansion plans. The normal capital plans are the normal course of business, which includes IT investments, which includes expansion of our different businesses and that should not be a substantial growth in 2016. The inorganic growth it's an area that we want to look into that may actually use some of the cash that we have, that includes asset management, potential acquisitions but we are still very cautious in looking through what we can do.

Thank you so much.

[Operator Instructions] And our next question comes from Ryan Roberts with MCM Partners.

Good morning and thank you for taking my questions. My first question was just a follow-up on earlier one, actually just for clarity purpose. I think you said that the commission structure for different products that's all the same, however the different product categories the commission varies, is that correct for RMs?

Hi. Let me explain it this way. So we earn one time commission for distribution of wealth management products and we book as net revenues one time commission. So the commissions earned to Noah Holdings, the one commission varies by asset class and we disclosed the - it’s a little bit below 0.85, 0.86 is the number. Now separately relationship managers are paid with a low base salary and rest is basically commission bonus. So the commission we paid to relationship managers, the commission rates vary by asset class a little bit as well. So I would say that when they sell private equity products they typically command a slightly higher commission rate to the relationship managers paid in the form of bonuses.

Got you. Okay

Just to give you a sense, the rate itself is slightly higher by asset class for private equity. But if you look at the numbers that we disclosed, we have a substantially higher absolute amount in private equity products right. So for example last year we did RMB99 billion, of which 32% is private equity right. And the year before we did RMB63.4 billion of which 18.9% is private equity. So if you multiply that to the amount that we distributed, that is one of the main reasons why compensation to RMs for this quarter is particularly high. But as we said this represents multiple years of recurring revenue for assets that's - which is substantially different from what we had before.

Got it, okay. Thank you very much for that. My next question is on the branch network, there has been pretty serious growth year-over-year and I'm kind of curious where we are in that overall process. Should we expect to see more production from branch offices or kind of how should we look at the geographic footprint kind of going forward?

So I think we've - it's Kenny here. In terms of growth both in RMs as well as in city coverage, I think we're largely done. We may find few areas that we still want to go in terms of city and city coverage. So this year is all about consolidating what we have already built in 2015. So we don't expect to grow another 30 cities or 15 cities even, or even grow substantially in the branch offices. If you look at China basically we are already fully covering every city that we want to cover in terms of high net worth individuals.

Okay.

And I would - okay related to that I would further note that the growth in relation manager headcount exceeds the growth in the fixed branch or fixed asset network. So we're focused much more on relation manger productivity because they are a key sales force. Now part of why it's important to have a branch network is this is a trust business and a local business. So the relationship managers have to have local offices where they can meet the client and conduct business. But the focus is much more on relationship manager productivity as a driver of growth.

Okay, so that's a better metric to focus on okay. And if I could just sneak one more in on the Internet finance business, you mentioned before that, that you're growing market share and the business is growing well. Can you share with us some metrics that you're looking at, that we can kind of gage to understand how about business is growing and when profitability could become more a possibility for that?

So just one thing on Internet finance business, so we actually could make this a profitable business right away. What we were looking for, if you looked at our metrics so basically three things. One is we want to make sure we have not only rich clients but also paying clients. So clients are actually transacting on our platform. So that one has grown substantially, I think numbers we've disclosed already. Second is we want to make sure that we grow also on per transaction in terms of clients. And that number has also grown substantially. I think latest number is something around $23,000 [ph] on an per transaction basis, which I think is one of the highest if not the highest for any wealth management platform in China. So that's the second thing we look at. The third thing we look at is the qualitative metrics. We want to make sure that they don't just focus on one or two products but a broader suite of products, right. So moving away from just simple fixed income products to insurance, to other types of products that we think should - would be suitable for [indiscernible] clients online. So those are three things that we care a lot about, at least in the next 6 to 12 months to ensure that this business gets on a solid footing.

And can you give us a sense of what that last metrics in terms of your - it sounds like, and not quite to repeat customer ratio but kind of more of a, I'm not sure how do you phrase that, at least the cross-selling.

So basically if you look at our retail [ph] clients it's over, I can't give you a specific number but it's absolutely over 50% which is also if you look at any platform in the markets, I think it going to be highest if not one of the highest.

Okay, great. Thank you. That's very, very helpful. I appreciate all the clarity, thanks.

Thank you.

Thank you, and the next question comes from Anson Huang with Credit Suisse.

Hi, thank you management for the discussion [ph]. And we noticed - two questions from my side, first we noticed the PE product distribution contribute a lot to the growth last year. But looking ahead, it seems to me that because secondary market products and insurance products may be difficult this year. So what will be the key driver for the growth in terms of product distribution? And second question is we noticed that [indiscernible] invest in [indiscernible] one of our competitors. So want some comment from the management of Noah, will we follow. Thanks.

Give me a second. Want to see if Chairman Wang would answer the question around the product structure. And then to second question around the transaction, that was done on one of the players in the industry, we don't want to comment on a particular deal. But I'll leave you with three thoughts. At Noah we don't believe in executing transactions that may look good on the surface, but doesn't really add value to the company. That's one. Second is we don't believe that in this market we need to have a player investing in us, that is also focused on distribution. I think what we need to do in this market is to add asset management capabilities. Not distribution capabilities. Because I think we have the market pretty well covered in terms of clients but we do need this global asset management capabilities, not distribution capabilities. So for the particular transaction that you mentioned I don't think it falls under that category. The third thing is for any strategic share to come in, it needs to be substantial. So at a small percentage it doesn't really add much value to any particular company. But as I said I don't want to comment on any particular transaction. But from our side those are the three thoughts that we would leave you with.

I would like to translate that first question for Chairlady Wang about the product structure.

Yeah. Chair lady Wang just commented on our product structure in 2016. She basically said that the products, are our competitiveness and we still believe so in 2016 and even beyond. I think the key drivers for 2016 is mainly focused on the private equity, including private equities for cooperation with good partners as well as actually we are focused on the private equity fund of fund business as well. And then second thing where our focus on is actually M&A and related products. I think in terms of the M&A activity is very supported by the regulations and we are still seeing increasing demand from the listing company as well as the non-listing companies here in China. So maybe some, we are going to do more M&A related products in 2016. In terms of the fixed income products, our main focus in 2016 are supply chain, financing, consumer financing, so on and so forth.

Okay. Thank you. Then the next question comes from Henry Lau [ph] with Goldman Sachs.

Hey, thanks for taking my question. So my first question is regarding the dividend policy or potential share buyback. Can you share more about that, the future?

I was just translating for Chairman Wang. It's Kenny here. One is we, this year, we maintain a policy of no dividend. I think the company's actually growing at a substantial rate we want to maintain our cash balance to ensure that we can take opportunities where they come. And so we'll maintain a no-dividend policy for this particular year. In terms of share buyback, you will see that we announced a share buyback program in July last year. We will continue that program for a year from July last year. And if we see our share price going down to a certain level that we think is highly undervalued then we will continue to execute on that share buyback. We've actually executed on that share buyback program at some points during last year when we see the share price dropping to a level that we think is actually not reflecting the full value of the company.

So just quickly to add to that you see in our third quarter [indiscernible] earnings release, we bought back about $7 million worth of shares. This is back in around late August, early September as of fourth quarter there were no buybacks.

Okay. Thanks. So my next question is regarding what was mentioned by Chairman Wang like about abnormal competition we experienced in 2015, like can you elaborate more on that and do you see any threshold on the fees we charge for both the fund managers, do we have pressure on that side from competitors?

So I'll take that question for Chairman Wang. The "abnormal competition" is, if you see the last six months in the China wealth management market there are lot of players coming in that are not really well disciplined in terms of risk management, in terms of the way they look at financial products. And you also see these players coming and attracting clients. And so that competition has frankly died down substantially in the last few months, given the regulatory controls. But in last quarter of 2015 we do see lot of players just coming in without much proper training and preparation and starting to offer wealth management - "wealth management products" to clients. We see us consolidating the market in the few areas right. So in terms of asset management as Chairman Wang said we're now heavily focused on ensuring that in the few asset classes, we are the number one or number two player in the market. So for example private equity fund of funds, private equity is an area that we dominate and so the approach is to ensure that after we dominate, we are able to understand the industry in such a way that we can carry that advantage for many years to come. So we mentioned that in private equity we now have looked at about 1,000 projects. So we actually have a sense of where the market is going much faster than rest of the market. So in terms of the asset and wealth management industry I think we put ourselves in a pretty good position. Of course there is a lot of competition but we think that we're pretty well positioned for at least for few years to come.

Thank you. That's all my questions. Thanks.

Thank you. And as there no more questions at the present time I would like to turn the call back over to management for any closing comments.

Okay, so if there no more questions I want to thank everyone for taking the time. I think quarter has been a great quarter for us in terms of strategic position for the next decade. And thank you. We look forward to hearing from you. If you have more questions please write to our IR team, we can take more questions offline.

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