Individual investors who hold 50% of Guangdong Topstrong Living Innovation and Integration Co., Ltd. (SZSE:300749) gained 11%, insiders profited as well

Key Insights

• Significant control over Guangdong Topstrong Living Innovation and Integration by individual investors implies that the general public has more power to influence management and governance-related decisions
• A total of 18 investors have a majority stake in the company with 50% ownership
• Insiders own 41% of Guangdong Topstrong Living Innovation and Integration

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If you want to know who really controls Guangdong Topstrong Living Innovation and Integration Co., Ltd. (SZSE:300749), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 50% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched CN¥1.5b last week, while insiders who own 41% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about Guangdong Topstrong Living Innovation and Integration.

View our latest analysis for Guangdong Topstrong Living Innovation and Integration

What Does The Lack Of Institutional Ownership Tell Us About Guangdong Topstrong Living Innovation and Integration?

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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Guangdong Topstrong Living Innovation and Integration, for yourself, below.

Guangdong Topstrong Living Innovation and Integration is not owned by hedge funds. Xinda Lin is currently the largest shareholder, with 39% of shares outstanding. Zhongshan Kaiyue Investment Enterprise (Limited Partnership) is the second largest shareholder owning 4.4% of common stock, and Zhongshan Jianda Jewelry Co., Ltd. holds about 2.1% of the company stock.

Our studies suggest that the top 18 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 Guangdong Topstrong Living Innovation and Integration

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 Guangdong Topstrong Living Innovation and Integration Co., Ltd.. Insiders own CN¥619m worth of shares in the CN¥1.5b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 50% stake in Guangdong Topstrong Living Innovation and Integration, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

It seems that Private Companies own 7.9%, of the Guangdong Topstrong Living Innovation and Integration stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Guangdong Topstrong Living Innovation and Integration .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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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.