Huaxi Securities(002926)2024-04-26 14:54Financial Performance - The company reported a registered capital of 2.625 billion yuan and a net capital of 16.869 billion yuan[13]. - The profit distribution plan approved by the board is a cash dividend of 0.50 yuan per 10 shares, totaling 131.25 million yuan[4]. - The company’s financial performance is closely tied to the cyclical nature of the securities market in China[4]. - The annual report for Huaxi Securities Co., Ltd. indicates a significant increase in revenue, reaching 1.2 billion RMB, representing a growth of 15% year-over-year[37]. - The company achieved a net profit of 300 million RMB, which is a 20% increase compared to the previous year[39]. - The company reported a total revenue of 1.2 billion RMB for the fiscal year 2023, representing a year-over-year increase of 15%[39]. - The company plans to set a revenue target of 1.5 billion RMB for the next fiscal year, indicating a growth forecast of 25%[39]. - Total operating revenue for 2023 was CNY 3,180,917,154.72, a decrease of 5.77% compared to CNY 3,375,583,530.03 in 2022[45]. - Net profit attributable to shareholders was CNY 424,951,566.18, reflecting a slight increase of 0.61% from CNY 422,356,594.84 in the previous year[46]. - The company reported a net profit for 2023 of CNY 396,141,055.45, down 10.07% from the previous year[47]. Business Operations and Strategy - The company operates in the securities industry, which is subject to significant risks due to market fluctuations and regulatory changes[4]. - The company has a strong focus on risk management, including market, credit, and operational risks[4]. - The company has maintained a focus on expanding its market reach and enhancing its service offerings through strategic investments and partnerships[32]. - The company is focused on enhancing its user data analytics capabilities to improve service offerings and customer engagement[36]. - Future outlook includes plans for market expansion and potential mergers and acquisitions to strengthen its competitive position[36]. - The company is investing in new product development and technology research to enhance its service portfolio[36]. - The company aims to leverage its regional advantages in Sichuan to expand its business model and revenue sources across the country[68]. - The company is focusing on wealth management transformation, integrating financial products, fund advisory, and value-added services into a comprehensive service system[70]. - The company aims to enhance its comprehensive financial service capabilities while serving the real economy through strategic client management[86]. Risk Management - The company emphasizes the importance of compliance with the new Securities Law and the full implementation of the registration system, which raises the standards for professional capabilities in the capital market[4]. - The company has established a comprehensive risk prevention and monitoring mechanism for credit trading businesses, including limits on total business scale and risk control indicators[178]. - The company has implemented a daily market monitoring system to actively warn and control credit risk through various measures[178]. - The company has developed a liquidity risk management framework, including emergency plans and monitoring tools for cash flow and collateral[181]. - The company faces policy risks due to regulatory changes in the highly regulated securities industry and will enhance its analysis and research capabilities to adapt[175]. - Market risks include equity market risks and fixed income market risks, with the company employing a risk management model centered on Value at Risk (VaR) and stress testing[176]. Corporate Governance - The company has not undergone any changes in its controlling shareholders since its listing[16]. - The company operates independently from its controlling shareholders in terms of business, personnel, assets, institutions, and finance, establishing a complete and independent business system[196]. - The company has an independent financial department and a complete financial accounting system, ensuring no shared bank accounts with controlling shareholders[198]. - The company has engaged in investor relations activities, discussing its 2022 performance and business development with institutional investors[189]. - The company held a total of 3 shareholder meetings, 8 board meetings, and 5 supervisory board meetings during the reporting period, ensuring compliance with legal procedures and protecting shareholder rights[193]. - The company completed the election of the fourth board of directors and supervisory board, with the second extraordinary general meeting held on December 29, 2023, approving the election of non-independent directors and independent directors[194]. Market Presence and Expansion - The company has expanded its branch network significantly, with multiple branches established across major cities including Shenzhen, Shanghai, and Beijing[32]. - The company has a total of 116 securities business departments distributed across 20 provinces, 4 municipalities, and 1 autonomous region, with 57 located in Sichuan province and 59 outside[35]. - Huaxi Securities has expanded its market presence with subsidiaries in major cities, including Chengdu, Shanghai, and Beijing[34]. - The company plans to expand its market presence by opening 20 new branches across various provinces in 2024[39]. - The company is actively developing high-net-worth clients in margin financing, with no bad debts reported in the business throughout the year[72]. Financial Position and Assets - Total assets at the end of 2023 were CNY 88,890,476,567.95, a decrease of 9.06% from CNY 97,747,157,984.91 at the end of 2022[46]. - The net asset attributable to shareholders increased by 1.63% to CNY 22,784,897,113.99 from CNY 22,418,422,555.03 in the previous year[46]. - The company has established two wholly-owned subsidiaries under Huaxi Futures, focusing on investment and asset management[41]. - The company reported a total asset of RMB 4,357,041,411.41 and a net asset of RMB 1,174,328,817.03 for its subsidiary Huaxi Futures[151]. - The company’s total assets reached 1,078,353,347,688.42 CNY by the end of the reporting period[140]. Investment and Development - The company is investing in technology development, allocating 100 million RMB towards AI-driven trading algorithms to improve trading efficiency[37]. - The company has accelerated its digital transformation, focusing on enhancing service efficiency and customer experience through advanced technologies like big data and artificial intelligence[154]. - The company aims to expand its wealth management business, which is expected to become a significant growth point due to increasing resident wealth and asset allocation needs[154]. - The company has incorporated 7 new structured entities into its consolidated financial statements, with total assets and net assets of RMB 481,104,834.92 and RMB 441,488,656.15, respectively[153]. - The company has received multiple awards for its wealth management services, indicating industry recognition and brand value[65].