HUAXI Securities Co., Ltd.: history, ownership, mission, how it works & makes money

From its 2000 founding in Chengdu to a 2010 listing on the Shenzhen Stock Exchange as 002926.SZ, HUAXI Securities has grown into a diversified financial services firm whose 2024 results-3.90 billion yuan in revenue (up 23.12%) and 727.97 million yuan in net income (up 71.31%)-signal accelerating momentum; backed by a registered capital of 2.625 billion yuan and a largest shareholder stake of 28.52% held by state-owned Luzhou Laojiao (March 2025), the company leverages brokerage, asset management, investment banking and wealth-management businesses (including margin financing, securities lending and underwriting) to earn commissions, fees and trading profits while pursuing fintech-driven digital expansion, regional SME-focused advisory and a dividend policy (2024 final cash dividend of 0.85 yuan per share) that complements a market capitalization of about 24.75 billion yuan (Dec 2025) and a 52-week trading range of 7.41-11.28 yuan, all against a backdrop of strong risk-management, CSR outreach reaching over 1 million people, and a strategic push to convert western China franchise strengths into broader revenue streams-keep reading to unpack its history, ownership, operations and paths to profitability.

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

• Founded: 2000 (Chengdu, Sichuan Province)
• Shanghai branch established: 2004
• IPO: 2010 - Shenzhen Stock Exchange (002926.SZ)
• Online trading platform launched: 2015
• Breadth of services by 2020: brokerage, asset management, investment banking, wealth management

History & Milestones

• 2000 - Company established to provide securities brokerage and related services in western China.
• 2004 - Strategic expansion into Shanghai to access national capital markets and institutional clients.
• 2010 - Public listing on Shenzhen Stock Exchange (ticker 002926), unlocking capital for expansion and compliance transparency.
• 2015 - Deployment of an online trading platform, enabling electronic brokerage, mobile trading, and expanded retail reach.
• 2020 - Formal diversification into asset management and wealth management; ramp-up of investment banking capabilities.
• 2024 - Reported strong financial performance with revenue growth and margin expansion.

Ownership & Corporate Structure

• Publicly traded company (A-share) on Shenzhen Stock Exchange - free float combined with strategic institutional and corporate shareholders.
• Typical shareholder mix includes: founding/controlling shareholders, institutional investors, retail investors, and potential cross-holdings with regional financial institutions (specific shareholder percentages fluctuate with market transactions and disclosures filed to SZSE).
• Governance comprises a board of directors, supervisory board, and senior management overseeing trading, investment banking, asset management, compliance, risk control, and operations.

Mission, Vision & Values

• Mission: Provide accessible, compliant, and value-driven financial services to retail and institutional clients across China.
• Vision: Build a trusted, technology-enabled securities group delivering integrated wealth and capital market solutions.
• Core values: client focus, compliance, innovation, risk management, and regional development.

Further company mission and strategic outlook are detailed here: Mission Statement, Vision, & Core Values (2026) of HUAXI Securities Co., Ltd.

How HUAXI Securities Works - Business Lines & Operations

• Brokerage: Retail and institutional securities trading (equities, bonds, ETFs), order execution, margin financing, and custody services via offline branches and online platforms.
• Investment Banking: Underwriting (IPO and bond issuance), M&A advisory, corporate financing solutions for SMEs and regional enterprises.
• Asset Management: Public and private funds, discretionary mandates, and product distribution to high-net-worth and institutional clients.
• Proprietary Trading & Market Making: Select trading desks conducting matched-book trades, liquidity provision, and short-term trading strategies (subject to regulatory capital and risk limits).
• Wealth Management & Advisory: Structured products, wealth planning, and tailored portfolio services for affluent clients.
• Technology & Platforms: Online/mobile trading platform (since 2015) enabling e-KYC, real-time quotes, order routing, and client portfolio management.

Revenue Streams & How the Company Makes Money

• Commissions & Brokerage Fees: Transaction-based fees from retail and institutional trades executed on exchanges and over-the-counter markets.
• Investment Banking Fees: Underwriting fees, advisory fees from IPOs, bond issuances, and M&A transactions.
• Asset Management Fees: Management fees and performance fees from mutual funds, private funds, and discretionary accounts.
• Interest Income: Margin financing and securities lending interest from client loans and repo activities.
• Proprietary Trading Gains: Trading profits and market-making spreads (volatile and regulated by capital requirements).
• Service & Advisory Fees: Wealth management advisory and custody/clearing services fees.

Selected Financials (2023-2024)

Key Financial Observations

• 2024 revenue: 3.90 billion yuan, a 23.12% increase vs. prior year, driven by stronger brokerage volumes, higher investment banking fee income, and expanded asset management revenue.
• 2024 net income: 727.97 million yuan, up 71.31% YoY, implying operating leverage, margin recovery, and/or one-off items improving profitability.
• Improved net margin in 2024 reflects mix shift toward higher-margin businesses (investment banking, asset management) and cost controls.

Risk Factors & Regulatory Context

• Regulatory risk: Chinese securities firms operate under tight oversight by CSRC and exchange rules; changes in margin, leverage, or underwriting rules impact revenue and capital needs.
• Market risk: Brokerage and proprietary trading revenues are sensitive to market turnover, volatility, and investor sentiment.
• Credit & counterparty risk: Margin financing, repo, and brokerage credit exposures require prudent risk management and provisioning.

HUAXI Securities Co., Ltd. (002926.SZ): History

• Largest shareholder (Mar 2025): Luzhou Laojiao Group - 28.52% stake
• Registered capital: ¥2.625 billion
• 2024 final cash dividend: ¥0.85 per share
• Listing venue: Shenzhen Stock Exchange (002926.SZ)

• Provide full-service securities and wealth-management solutions tailored to corporate and retail clients.
• Support regional economic development while aligning with national financial stability and SOE governance standards.

• Brokerage commissions - retail and institutional order execution and trading flow.
• Investment banking fees - underwriting, M&A advisory and IPO sponsorship.
• Proprietary trading and market-making - trading income from fixed-income, equities and derivatives positions.
• Asset and wealth management fees - management fees, performance fees and structured product issuance.
• Interest income and financing services - margin financing, repo and custody-related interest spreads.

• Dividend distribution (¥0.85/share in 2024) signals capital return priorities within regulatory constraints.
• Ownership concentrated around a state-owned enterprise (Luzhou Laojiao) but balanced by institutional and retail holders, supporting governance under China's SOE rules.

HUAXI Securities Co., Ltd. (002926.SZ): Ownership Structure

• Mission: Deliver specialized, innovative financial services that empower clients and create stakeholder value.
• Values: Integrity, transparency, sustainability, and disciplined risk management.
• Technology focus: Investment in digital platforms, algorithmic trading tools, and client-facing mobile services to reduce costs and increase scalability.
• Social responsibility: Financial education programs impacting 1,000,000+ individuals nationwide.

• Primary revenue streams: brokerage commissions, underwriting and advisory fees, proprietary trading and investment income, asset management fees.
• How it makes money: Earns transaction and advisory fees on client activity; captures market-making spreads and trading profits on proprietary portfolios; generates recurring fee income from managed products.
• Risk controls: Capital adequacy, daily liquidity management, counterparty exposure limits, and compliance monitoring embedded in business processes.

HUAXI Securities Co., Ltd. (002926.SZ): Mission and Values

• Brokerage: Core retail and institutional securities and futures brokerage, distribution and agency sales of financial products, and sell‑side research and consulting to support trading and market access.
• Asset management: Management of collective asset management plans, directional and special asset management products, and private equity funds for institutional and high‑net‑worth clients.
• Investment banking: Securities underwriting (A‑share and bond issuance), sponsorship, M&A and restructuring advisory, and services connecting issuers to NEEQ/OTC markets for SMEs.
• Wealth management and margin business: Margin financing, securities lending, stock‑pledged repurchase transactions, and agreed repurchase securities trading targeted at both retail margin clients and institutional counterparties.
• Regional SME focus: Leveraging Western China footprint to originate and execute capital market solutions - IPO support, bond issuance, and M&A advisory - specifically tailored to SME financing needs.

• Transaction fees and commissions from brokerage and futures trading drive recurring cash flows tied to market volumes and retail investor activity.
• Management fees and performance fees from asset management and PE funds produce annuity‑style income and upside during strong markets.
• Underwriting and advisory fees from investment banking are episodic but high‑margin, tied to completed equity and bond deals as well as M&A mandates.
• Interest spread and financing income from margin lending, stock‑pledged repurchase, and securities lending support net interest revenue and enhance client stickiness.

• Brokerage: Typically accounts for a significant portion of transaction‑based revenue; sensitive to market turnover and retail participation rates.
• Asset management: Provides recurring fee income; profitability linked to AUM growth and product mix (collective vs. private funds).
• Investment banking: Lower frequency but high margin - uplifts in IPO and bond markets materially boost annual net profit.
• Margin financing & securities lending: Earnings tied to interest rate spread and client leverage demand; risk management and collateral valuation are critical.

• Underwriting and sponsorship: Advises and underwrites equity and bond placements for regional issuers, including NEEQ/OTC recommendations for SMEs.
• M&A and restructuring advisory: Assist SMEs with strategic transactions, spin‑offs, and debt restructurings to access broader capital sources.
• Tailored financing: Structures bond issuance, private placements, and directed asset management products to meet SME cash‑flow and growth needs.

• Market risk: Exposure via trading and principal positions - mitigated by limits, VaR controls, and diversification across asset classes.
• Credit and counterparty risk: Prominent in margin financing and repo businesses - managed through collateral haircuts, margin calls, and concentration limits.
• Operational and compliance risk: Regulated by CSRC rules; internal compliance and risk committees oversee underwriting, asset management and client suitability.

• Deepening Western China presence to capture underserved SME financing demand and to act as financial intermediary for local governments and enterprises.
• Expanding asset management product offerings (private funds, structured products) to boost fee income and AUM.
• Leveraging digital channels and research capabilities to grow retail client base and improve trading volumes.

HUAXI Securities Co., Ltd. (002926.SZ): How It Works

• Core client-facing channels: retail and institutional brokerage (securities & futures), wealth management for high-net-worth clients, and asset management (collective and private funds).
• Institutional services: underwriting, M&A and financial advisory, margin financing, securities lending, and custodian/prime brokerage solutions.
• Proprietary activities: trading in equities, fixed income, derivatives and structured products to capture trading profits and provide market-making liquidity.

• Brokerage commissions - transaction-based fees from securities and futures trading. These are driven by client order flow, market volatility and pricing competitiveness.
• Asset management fees - recurring management and performance fees from collective investment schemes and private equity funds under management (AUM-based fees).
• Investment banking fees - underwriting fees and advisory fees earned from ECM/FCM transactions, bond issuances and M&A mandates.
• Wealth management fees and financing - revenues from margin financing, securities lending, advisory fees and structured wealth products sold to clients.
• Proprietary trading profits - P&L from the firm's own positions in equities, fixed income, repo/treasury operations and derivatives books.

• Brokerage: client places orders via trading platforms/relationship managers → HUAXI charges commission and clearing fees → settlement and custody services earn ancillary fees.
• Asset management: fund-raising → investment of pooled capital according to mandate → periodic management and performance fees charged on NAV/AUM.
• Investment banking: origination and structuring → underwriting syndication or advisory execution → upfront underwriting fees and success-based advisory fees.
• Wealth & financing: onboarding of wealth clients → tailored product sales, margin accounts and securities-lending arrangements → recurring fee & interest income.
• Proprietary trading: risk allocation to trading desks → market-making and directional positions → mark-to-market gains/losses flow to trading income.

• Revenue diversification across transactional (commissions), fee-based (AUM/advisory) and balance-sheet (trading/financing) streams smooths cyclicality.
• Margin requirements, counterparty limits, and trading risk limits curb tail exposure from proprietary trading.
• Client segmentation (retail vs institutional) and product mix (cash equities, futures, fixed income, structured products) enable cross-selling and retention.

• Market volatility directly impacts brokerage volumes and trading profits; calmer markets shift earnings toward fee-based asset management and advisory.
• Regulatory capital and leverage rules determine the scale of margin financing, securities lending, and proprietary book sizing.
• Competition on commission rates, platform features and product innovation affects client acquisition and average revenue per user (ARPU).

HUAXI Securities Co., Ltd. (002926.SZ): How It Makes Money

• Market capitalization (Dec 2025): ~24.75 billion yuan.
• 52-week stock range: 7.41-11.28 yuan, reflecting resilience and investor confidence.
• Strategic focus: small-to-medium enterprises (SMEs) and regional corporate clients.
• Technology: ongoing fintech investments to boost electronic brokerage, wealth management platforms and back-office efficiency.
• Risks: regulatory scrutiny, market volatility; mitigated via risk management and diversified fee streams.

• Outlook: HUAXI Securities is positioned to capture policy-driven SME financing demand and digital-adoption gains while navigating regulatory and cyclical market risks.
• Growth strategy: expand market share via comprehensive service suites, deepen regional client relationships, and scale fintech offerings to lift fee ratios and operational efficiency.