Private companies invested in Nanjing Inform Storage Equipment (Group) Co., Ltd. (SHSE:603066) copped the brunt of last week's CN¥477m market cap decline

Key Insights

• Significant control over Nanjing Inform Storage Equipment (Group) by private companies implies that the general public has more power to influence management and governance-related decisions
• A total of 3 investors have a majority stake in the company with 55% ownership
• Insider ownership in Nanjing Inform Storage Equipment (Group) is 10%

If you want to know who really controls Nanjing Inform Storage Equipment (Group) Co., Ltd. (SHSE:603066), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are private companies with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, private companies endured the biggest losses as the stock fell by 13%.

Let's delve deeper into each type of owner of Nanjing Inform Storage Equipment (Group), beginning with the chart below.

Check out our latest analysis for Nanjing Inform Storage Equipment (Group)

What Does The Lack Of Institutional Ownership Tell Us About Nanjing Inform Storage Equipment (Group)?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Nanjing Inform Storage Equipment (Group) might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

We note that hedge funds don't have a meaningful investment in Nanjing Inform Storage Equipment (Group). Looking at our data, we can see that the largest shareholder is JDZ CCT Co.,Ltd with 31% of shares outstanding. With 14% and 10% of the shares outstanding respectively, Shanghai Yuanshu Enterprise Management Consulting Center (Limited Partnership) and Yue Yue Jin are the second and third largest shareholders. Yue Yue Jin, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 55% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Nanjing Inform Storage Equipment (Group)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Nanjing Inform Storage Equipment (Group) Co., Ltd.. It has a market capitalization of just CN¥3.1b, and insiders have CN¥320m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 42% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 47%, of the Nanjing Inform Storage Equipment (Group) stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Nanjing Inform Storage Equipment (Group) better, we need to consider many other factors. For instance, we've identified 3 warning signs for Nanjing Inform Storage Equipment (Group) that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.