Chaozhou Three-Circle (Group) Co.,Ltd.'s (SZSE:300408) largest shareholders are individual investors with 40% ownership, private companies own 34%

Key Insights

• Significant control over Chaozhou Three-Circle (Group)Ltd by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 16 shareholders own 50% of the company
• Institutional ownership in Chaozhou Three-Circle (Group)Ltd is 21%

To get a sense of who is truly in control of Chaozhou Three-Circle (Group) Co.,Ltd. (SZSE:300408), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 40% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, private companies make up 34% of the company’s shareholders.

Let's delve deeper into each type of owner of Chaozhou Three-Circle (Group)Ltd, beginning with the chart below.

View our latest analysis for Chaozhou Three-Circle (Group)Ltd

What Does The Institutional Ownership Tell Us About Chaozhou Three-Circle (Group)Ltd?

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.

We can see that Chaozhou Three-Circle (Group)Ltd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Chaozhou Three-Circle (Group)Ltd's historic earnings and revenue below, but keep in mind there's always more to the story.

Chaozhou Three-Circle (Group)Ltd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Chaozhou Sanjiang Investment Co. Ltd. with 34% of shares outstanding. Wan Zhen Zhang is the second largest shareholder owning 2.8% of common stock, and China Securities Finance Corp, Asset Management Arm holds about 1.4% of the company stock.

A closer look at our ownership figures suggests that the top 16 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Chaozhou Three-Circle (Group)Ltd

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in Chaozhou Three-Circle (Group) Co.,Ltd.. The insiders have a meaningful stake worth CN¥2.7b. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 40% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Chaozhou Three-Circle (Group)Ltd. 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 Company Ownership

We can see that Private Companies own 34%, 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. Take risks for example - Chaozhou Three-Circle (Group)Ltd has 2 warning signs we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.