Ningbo Lian Technology Co.,Ltd's (SZSE:300784) biggest owners are private companies who got richer after stock soared 14% last week

Key Insights

• Significant control over Ningbo Lian TechnologyLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• Zhejiang Habi Intelligent Technology Co., Ltd. owns 55% of the company
• Insiders own 14% of Ningbo Lian TechnologyLtd

If you want to know who really controls Ningbo Lian Technology Co.,Ltd (SZSE:300784), then you'll have to look at the makeup of its share registry. With 56% stake, private companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, private companies benefitted the most after the company's market cap rose by CN¥360m last week.

Let's take a closer look to see what the different types of shareholders can tell us about Ningbo Lian TechnologyLtd.

Check out our latest analysis for Ningbo Lian TechnologyLtd

What Does The Lack Of Institutional Ownership Tell Us About Ningbo Lian TechnologyLtd?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. 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 Ningbo Lian TechnologyLtd, for yourself, below.

Ningbo Lian TechnologyLtd is not owned by hedge funds. Our data shows that Zhejiang Habi Intelligent Technology Co., Ltd. is the largest shareholder with 55% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. The second and third largest shareholders are Shifeng Li and Yi Qiu, with an equal amount of shares to their name at 6.0%.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Ningbo Lian TechnologyLtd

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Ningbo Lian Technology Co.,Ltd. It has a market capitalization of just CN¥2.9b, and insiders have CN¥412m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in Ningbo Lian TechnologyLtd. 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 56%, of the Ningbo Lian TechnologyLtd 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Ningbo Lian TechnologyLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Ningbo Lian TechnologyLtd that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

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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.