Private companies invested in Yunnan Botanee Bio-Technology Group Co.LTD (SZSE:300957) copped the brunt of last week's CN¥941m market cap decline

Key Insights

• The considerable ownership by private companies in Yunnan Botanee Bio-Technology GroupLTD indicates that they collectively have a greater say in management and business strategy
• The top 2 shareholders own 58% of the company
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Yunnan Botanee Bio-Technology Group Co.LTD (SZSE:300957), then you'll have to look at the makeup of its share registry. With 54% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to CN¥20b last week, private companies would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Yunnan Botanee Bio-Technology GroupLTD, beginning with the chart below.

Check out our latest analysis for Yunnan Botanee Bio-Technology GroupLTD

What Does The Institutional Ownership Tell Us About Yunnan Botanee Bio-Technology GroupLTD?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Yunnan Botanee Bio-Technology GroupLTD. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Yunnan Botanee Bio-Technology GroupLTD, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Yunnan Botanee Bio-Technology GroupLTD. The company's largest shareholder is Kunming Nuona Technology Co., Ltd., with ownership of 46%. Meanwhile, the second and third largest shareholders, hold 12% and 6.6%, of the shares outstanding, respectively. In addition, we found that Zhenyu Guo, the CEO has 2.6% of the shares allocated to their name.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 58% stake.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Yunnan Botanee Bio-Technology GroupLTD

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We can see that insiders own shares in Yunnan Botanee Bio-Technology Group Co.LTD. This is a big company, so it is good to see this level of alignment. Insiders own CN¥535m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

With a stake of 12%, private equity firms could influence the Yunnan Botanee Bio-Technology GroupLTD board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

We can see that Private Companies own 54%, of the shares on issue. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 4 warning signs for Yunnan Botanee Bio-Technology GroupLTD that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.