Beijing Konruns Pharmaceutical Co.,Ltd.'s (SHSE:603590) largest shareholder, CEO Jianhua Liu sees holdings value fall by 7.8% following recent drop

Key Insights

• Significant insider control over Beijing Konruns PharmaceuticalLtd implies vested interests in company growth
• A total of 3 investors have a majority stake in the company with 51% ownership
• Institutions own 18% of Beijing Konruns PharmaceuticalLtd

If you want to know who really controls Beijing Konruns Pharmaceutical Co.,Ltd. (SHSE:603590), then you'll have to look at the makeup of its share registry. With 43% stake, individual insiders 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).

And following last week's 7.8% decline in share price, insiders suffered the most losses.

Let's delve deeper into each type of owner of Beijing Konruns PharmaceuticalLtd, beginning with the chart below.

View our latest analysis for Beijing Konruns PharmaceuticalLtd

What Does The Institutional Ownership Tell Us About Beijing Konruns PharmaceuticalLtd?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Beijing Konruns PharmaceuticalLtd does have institutional investors; and they hold a good portion of the company's stock. 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 Beijing Konruns PharmaceuticalLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Beijing Konruns PharmaceuticalLtd. Looking at our data, we can see that the largest shareholder is the CEO Jianhua Liu with 32% of shares outstanding. In comparison, the second and third largest shareholders hold about 10% and 9.2% of the stock. Interestingly, the third-largest shareholder, Xijuan Wang is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders.

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 51% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Beijing Konruns PharmaceuticalLtd

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. 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.

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 Beijing Konruns Pharmaceutical Co.,Ltd.. Insiders have a CN¥1.9b stake in this CN¥4.5b business. 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-- including retail investors -- own 32% 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

We can see that Private Companies own 6.0%, 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. To that end, you should be aware of the 1 warning sign we've spotted with Beijing Konruns PharmaceuticalLtd .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.