Xinyi Electric Storage Holdings Limited (HKG:8328) insiders, who hold 72% of the firm would be disappointed by the recent pullback

Key Insights

• Xinyi Electric Storage Holdings' significant insider ownership suggests inherent interests in company's expansion
• 51% of the company is held by a single shareholder (Ching Sai Tung)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Xinyi Electric Storage Holdings Limited (HKG:8328), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 72% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to HK$786m last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Xinyi Electric Storage Holdings, beginning with the chart below.

See our latest analysis for Xinyi Electric Storage Holdings

What Does The Lack Of Institutional Ownership Tell Us About Xinyi Electric Storage Holdings?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

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. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. 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 Xinyi Electric Storage Holdings, for yourself, below.

Xinyi Electric Storage Holdings is not owned by hedge funds. Ching Sai Tung is currently the largest shareholder, with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Sing Lee is the second largest shareholder owning 6.3% of common stock, and Ngan Ho Ng holds about 3.4% of the company stock. Ngan Ho Ng, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Xinyi Electric Storage Holdings

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. 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 the majority of Xinyi Electric Storage Holdings Limited. This means they can collectively make decisions for the company. That means they own HK$562m worth of shares in the HK$786m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Xinyi Electric Storage Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.