Thirty years represents a journey and a spirit, a time of accumulation and the gathering of strength. Since its establishment in 1996, Huishang Futures has grown alongside China's futures market, adhering to compliant operations, cultivating risk management expertise, and serving the real economy with steady progress that has built today's achievements. At thirty, the company stands mature and vigorous, unwavering in its original mission and determined to write a new chapter of high-quality development through comprehensive risk management.

In March 2026, the company convened a comprehensive risk management working conference, accompanied by specialized position-level risk control training and focused joint risk assessment sessions for key areas. These activities exemplify how the company systematically conducts precise risk assessments and implements rigorous control measures across its operations. In recent years, the company has maintained compliance as its core development principle, continuously optimizing its full-chain risk control system while innovatively establishing an integrated "Party building + Learning + Risk Control" mechanism that transforms Party building advantages and research outcomes into governance effectiveness and professional capabilities.

Leading Risk Control Through the "Golden Key" Party Building Brand

Strengthening Party building leadership to solidify risk management foundations, the company persists in using Party leadership as the guide and risk control as the cornerstone. By establishing a "Party Member Risk Management Pioneer Team," the company continuously deepens the integration of Party building with comprehensive risk management, converting political and organizational advantages into governance effectiveness. This red foundation builds a strong risk control fortress for high-quality development.

Through innovative construction of the "Party building + Learning + Risk Control" integrated mechanism, the company has shifted risk management from passive response to active prevention. The Compliance Review Department, together with relevant Party branches, conducts joint Party lectures on risk control coordination, communicating compliance bottom lines through policy interpretation, risk assessment, and case studies to strengthen all-staff risk awareness. Regular advancement meetings review risk situations, deploy prevention tasks, and implement corrective actions, ensuring Party leadership runs through the entire closed-loop of risk identification, monitoring, handling, and rectification.

The company has built a distinctive "Comprehensive Risk Garden" cultural wall, concretizing the political requirement of "resolutely winning the battle against major risks" through a visualized risk control publicity matrix centered on improving management systems, strengthening awareness, refining daily operations, and elevating standards. By actively disseminating practical achievements and innovative practices in Party-led risk control, the company fosters a culture where everyone values compliance, prioritizes risk management, and upholds defensive lines at every level.

Balancing Innovation with Integrity: Professional Risk Control Safeguarding Stable Operations

Deepening refined risk control construction forms the cornerstone of stable operations. Risk stability ensures business stability, and strong fundamentals drive development. The company remains committed to serving the real economy, treating comprehensive risk management as the lifeline for sustainable growth. Relying on Party building foundations, institutional safeguards, technological empowerment, and cultural development, it continuously optimizes risk systems and implementation measures through professional, refined, and normalized management models.

Upholding institutional precedence and refined control, the company consistently improves its comprehensive risk management framework. Over the past three years, it has regularly conducted major risk assessments and situation analyses, systematically compiling a comprehensive risk prevention checklist covering seven primary risk categories and 23 secondary classifications. This creates a clear, standardized risk management system ensuring precise, efficient, and compliant business operations while monitoring market dynamics and industry trends through annual major risk evaluations and special assessment reports.

To address lagging risk control, the company innovatively established a "Monitoring-Early Warning-Handling-Review" closed-loop system. First, it implemented a red-yellow light graded warning mechanism with scientifically quantified indicators for core businesses serving the real economy. Through high-frequency control models, risks are identified, warned, and handled early, with full tracking of rectification progress for critical matters. Over the past five years, 86 red-light warning events occurred. For violations like customer position breaches and physical contract payment defaults, measures including increased margins, loss recovery, and position supplementation were taken with follow-up supervision. Three responsible personnel were held accountable under the company's accountability system for investment violations. Second, strictly aligned with industry regulatory requirements, the company conducted five comprehensive stress tests and one specialized stress test over five years. For identified issues including single revenue structure, insufficient net capital buffers, customer breaches, and high external investment ratios, measures such as business diversification, net capital monitoring enhancement, full-process brokerage risk control strengthening, and asset management concentration management optimization were implemented to boost overall resilience.

Adopting problem-oriented and bottom-line thinking, the company treats on-site inspections as critical for source-level risk control, conducting annual special examinations of business lines, internal control units, and subsidiaries. For typical issues discovered over five years—including illegal hedging quota settings, imperfect OTC derivatives credit mechanisms with losses, irregular brokerage identity verification, missing intermediary abnormal transaction monitoring, non-standard warning reporting procedures, and marketing ideology concerns—relevant departments analyzed root causes and implemented corrections. The Compliance Review Department issued various penalties including warning letters to business departments, anti-money laundering accountability measures, and warning letters or compliance interviews for non-compliant personnel, with continuous tracking and rectification feedback ensuring problems are thoroughly resolved.

Focusing on all-staff risk control implementation, the company integrates individual employee risk prevention into its overall management system, emphasizing collective responsibility for risk and compliance integrity. Annual position-level risk control checklists detail each role's responsibilities and risk points, analyze potential impacts, and standardize prevention measures, achieving comprehensive coverage across all positions and business processes. Through refined position management, the company reduces risk occurrence probability at the source, urging every employee to maintain compliance bottom lines and embed risk control requirements throughout business development, customer service, and industrial empowerment—demonstrating practical commitment to serving the real economy.

Based on normalized risk governance, the company established weekly risk review, warning, and reminder mechanisms focusing on business operations, market fluctuations, compliance practices, complaint handling, and integrity standards. Over three years, 102 operational risk warning lists have been published. By moving prevention checkpoints forward, the company constructs normalized, refined front-end protective barriers, achieving early warning, prevention, and resolution of risks while providing stable risk control capabilities that safeguard high-quality development of the real economy.

Looking Forward: Advancing Toward a New Era of High-Quality Risk Management

As the company embarks on its new development journey, comprehensive risk management persists with bottom-line thinking and systematic approaches, promoting risk control system upgrades through stricter standards, more practical measures, and better mechanisms. The goal is building a modern, comprehensive risk management system characterized by rigorous institutions, strong execution, agile response, advanced technology, and deep-rooted culture, providing solid guarantees for steady progress in complex market environments.

By unifying problem-oriented and results-oriented approaches, the company will strengthen risk implementation foundations going forward. Future efforts will focus on weak risk management links with targeted supervision of new institutions, key areas, and critical positions, ensuring risk requirements reach operational frontlines. Management responsibilities at all levels will be reinforced to guarantee effective risk pressure transmission and dynamic risk elimination, making risk control truly comprehensive in scope and depth.

Proactively benchmarking regulatory guidance and advanced industry practices, the company will systematically restructure risk management institutions covering all businesses, scenarios, and lifecycles, enhancing scientific rigor, applicability, and binding force. For emerging business areas, risk rules research, assessments, and mechanism reserves will be strengthened—ensuring risk control precedes innovation and provides reliable protection for strategic breakthroughs.

Accelerating digital transformation in comprehensive risk management, the company will deeply apply AI large models, big data monitoring, and process automation technologies across contract management, risk warnings, violation monitoring, and anti-money laundering screening. By breaking data barriers between business systems, risk information will converge in real time with intelligent anomaly identification and rapid warning push, comprehensively improving risk management precision and response efficiency.

Supporting long-term governance, the company will maintain normalized risk management mechanisms including executive compliance interviews, key position risk control, and new employee training, embedding risk requirements throughout position performance and career development. Channels for risk discovery, hidden danger reporting, and problem escalation will be smoothed, encouraging employees to actively identify, report, and prevent risks. This fully mobilizes collective participation, forming a governance pattern of universal involvement, comprehensive coverage, and diligent implementation that solidifies core operational risk capabilities.

Through thirty years of weathering challenges and persistent progress, the company holds its original aspiration firm. Standing at this new starting point, it looks back on its journey while preparing to advance courageously with firmer conviction, more professional capabilities, and more pragmatic work styles. Continuously elevating modern risk management capabilities, the company will empower high-quality development through high-quality risk control, striving to create new achievements while contributing greater strength to serving the real economy, empowering industrial upgrading, and supporting the financial powerhouse construction.