Breaking Down HUAXI Securities Co., Ltd. Financial Health: Key Insights for Investors

Founded in 2000 and headquartered in Chengdu, HUAXI Securities Co., Ltd. has grown into a comprehensive securities firm with total assets of 1,003.93 billion yuan and net assets of 238.63 billion yuan as of March 2025, a business footprint backed by a controlling shareholder-Luzhou Laojiao Group-holding 28.52% of shares and an AAA long‑term credit rating that signals stable creditworthiness; driven by a mission to deliver specialized services across brokerage, wealth management, credit, investment banking and fund management while embedding a strong risk‑management culture, integrity, transparency and digital transformation (including over RMB 500 million invested in fintech such as mobile trading and AI analytics), HUAXI positions wealth management as its largest revenue engine alongside investment and investment‑banking services, pursues a vision of becoming a first‑class investment bank with domestic strength and global influence through a two‑pronged cross‑border, tech‑empowered model and an "investment banking gene + full business chain" strategy, and anchors its operations in core values-Integrity, Customer First, Innovation, Social Responsibility and Teamwork-while emphasizing financial strength and sustainability to serve clients, shareholders, staff and society.

HUAXI Securities Co., Ltd. (002926.SZ) - Intro

• Founded: 2000
• Headquarters: Chengdu, Sichuan, China
• Control: Luzhou Laojiao Group - 28.52% shareholding
• Credit rating: AAA long-term credit rating (stable outlook)

• Deliver professional, compliant, and client-centric financial services that create long-term value for retail and institutional clients.
• Promote inclusive capital market access across Western China while upholding regulatory standards and risk controls.

• Be a leading integrated securities firm known for stability, innovation, and deeply rooted client relationships in China's capital markets.
• Expand asset management and investment-banking capabilities to support enterprise growth and household wealth accumulation nationwide.

• Integrity - operate with transparency and rigorous compliance.
• Client-first - prioritize client outcomes and tailored financial solutions.
• Professionalism - maintain high standards in risk management, research, and execution.
• Innovation - adopt digital tools and product diversification to enhance service delivery.
• Stability - preserve capital and creditworthiness; sustain an AAA long-term rating.

• Wealth management: largest revenue driver, emphasizing retail distribution and advisory platforms.
• Investment services & investment banking: key contributors via underwriting, advisory, and institutional sales.
• Asset management & fund products: growth focus through public and private fund management capabilities.
• Credit and margin services: supporting brokerage and institutional financing needs.

• Controlling shareholder: Luzhou Laojiao Group - 28.52% (provides stable strategic backing).
• Governance emphasis: board oversight, independent audit processes, and adherence to China Securities Regulatory Commission guidelines.

HUAXI Securities Co., Ltd. (002926.SZ) Overview

Mission Statement

• Deliver specialized financial services to individual and institutional clients through innovative products and tailored solutions.
• Create sustainable stakeholder value while balancing growth with social and regulatory responsibility.
• Maintain a robust risk management culture to ensure stability and security across trading, brokerage, asset management, and investment banking operations.
• Uphold integrity and transparency to build and preserve trust with clients, counterparties, regulators, and investors.
• Drive technological advancement and digital transformation to enhance client experience, operational efficiency, and analytics capabilities.
• Demonstrated commitment to innovation with fintech investments exceeding RMB 500 million in mobile trading, AI-driven analytics, and platform infrastructure.

Vision

• Be recognized as a leading, technology-enabled securities firm in China serving retail, corporate and institutional investors.
• Continuously expand product breadth-broking, wealth management, custody, margin financing, and underwriting-with scalable digital delivery.
• Achieve long-term sustainable growth while maintaining prudent capital and risk metrics that protect clients and the market.

Core Values

• Client-centricity: prioritize client outcomes and transparency in advisory and execution.
• Integrity: strict adherence to compliance, ethical standards, and fair dealing.
• Innovation: continuous investment in fintech, data science, and automation to improve services.
• Risk discipline: embed risk controls across front, middle, and back office functions.
• Accountability: measurable targets, governance, and performance aligned with stakeholder interests.

• Recent initiatives include deployment of AI-driven client analytics, a refreshed mobile trading app, and strengthened middle-office controls funded through the fintech program.
• Operational priorities emphasize scalability of digital platforms while preserving conservative risk limits and enhancing auditability of trading and advisory workflows.

HUAXI Securities Co., Ltd. (002926.SZ) - Mission Statement

• Serve national strategic needs and social development through capital market solutions and institutional advisory.
• Put customers at the center of product design and service delivery, ensuring client-aligned outcomes.
• Adhere to compliance, ethics, and risk discipline while fostering innovation in digital finance.
• Create cross-border, ecological interaction between wealth management and institutional services enabled by technology.

• International competitiveness and brand influence: expand cross-border deal flow, offshore product distribution, and global partnership networks.
• "Investment banking gene + full business chain" differentiation: deepen advisory, underwriting, asset management, trading, and research integration to deliver holistic client solutions.
• Digital and intelligent development: accelerate data-driven decisioning, AI-assisted research, and automated client servicing across business cycles.
• Leadership in key customer segments: capture leading share among high-net-worth families, mid-to-large corporates, and institutional investors in target sectors.
• Stakeholder accountability: align goals and incentives to create value for clients, shareholders, employees, and society.

• Accountability: measurable commitments to clients, shareholders, staff, and society.
• Customer Orientation: tailor solutions using data and domain expertise.
• Integrity and Compliance: adherence to regulatory standards and ethical conduct.
• Innovation with Prudence: apply fintech and data analytics while maintaining strict risk controls.
• Collaboration and Inclusion: build cross-border partnerships and inclusive product ecosystems.

• Platform integration: unify institutional and wealth channels to create cross-sell and data synergies.
• Technology investment: AI research tools, client portals, and risk engines to enable intelligent, cycle-resilient operations.
• Talent and culture: recruit sector specialists and cultivate an "IB gene" mindset across the full business chain.
• Selective globalization: pursue strategic overseas alliances and product passports in priority markets.

HUAXI Securities Co., Ltd. (002926.SZ) - Vision Statement

• Integrity - Serve as the cornerstone of every transaction, advisory service and internal control, embedding compliance and ethical behavior into governance and day-to-day operations.
• Customer First - Prioritize clients through tailored wealth- and capital-market solutions, customer-centric product design and a high-touch service model across retail, institutional and corporate segments.
• Innovation - Maintain a sustained R&D investment program to enhance digital platforms, trading systems and quant/research capabilities that improve execution, analytics and product breadth.
• Social Responsibility - Integrate ESG considerations into underwriting, asset management and advisory activities while investing in community development and financial literacy programs.
• Teamwork - Foster cross-functional collaboration to accelerate decision-making, risk management and client delivery across sales, research, trading and back-office teams.
• Financial Strength & Sustainability - Pursue prudent balance-sheet management, diversified revenue streams and capital adequacy to ensure long-term stability for stakeholders.

• R&D & Technology: target cumulative R&D investment of RMB 500 million+ over a 3-5 year horizon to upgrade trading systems, risk engines and client portals.
• Client Expansion: aim to grow retail and institutional client base by 15-20% annually through digital acquisition, partnerships and expanded product suites.
• ESG & Community: dedicate at least 1% of annual after-tax profits to community programs, financial education and sustainable-investment initiatives.
• Capital & Liquidity: maintain regulatory minimum capital ratios with a forward-looking buffer equivalent to 20-30% above statutory requirements to support business growth and market stress.

• Integrity - strengthened compliance frameworks, regular internal audits, whistleblower channels and board-level risk committees to ensure governance aligns with best practices.
• Customer First - expanded advisory teams, segmented product lines (wealth management, margin financing, structured products) and client NPS targets above industry average to measure service quality.
• Innovation - deployment of low-latency execution tools, AI-driven research models and mobile-first client interfaces; pilots for algorithmic trading and robo-advisory services.
• Social Responsibility - structured green- and ESG-themed products, underwriting discipline favoring sustainable sectors, plus measurable community outreach (workshops, scholarships, pro bono advisory).
• Teamwork - talent development programs, cross-department rotation and incentive systems aligned to collective KPIs rather than siloed objectives.
• Financial Strength - conservative liquidity coverage, diversified funding channels (institutional deposits, interbank facilities) and stress-testing routines integrated into planning cycles.

• Quarterly public disclosures on core financials (revenue, net profit, operating expenses) and key risk indicators.
• Annual sustainability report detailing ESG investments, community outcomes and portfolio-level carbon/impact metrics where applicable.
• Board-reviewed scorecards tracking customer satisfaction, compliance incidents, R&D milestones and staff retention rates.