Key Insights

• Significant control over Jiangxi Guoguang Commercial Chains by private companies implies that the general public has more power to influence management and governance-related decisions
• Jiangxi Guoguang Industrial Co., Ltd. owns 51% of the company
• Insiders own 36% of Jiangxi Guoguang Commercial Chains

To get a sense of who is truly in control of Jiangxi Guoguang Commercial Chains Co., Ltd. (SHSE:605188), it is important to understand the ownership structure of the business. With 53% 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.

Following a 8.0% increase in the stock price last week, private companies profited the most, but insiders who own 36% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Jiangxi Guoguang Commercial Chains, beginning with the chart below.

Check out our latest analysis for Jiangxi Guoguang Commercial Chains

What Does The Institutional Ownership Tell Us About Jiangxi Guoguang Commercial Chains?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Since institutions own only a small portion of Jiangxi Guoguang Commercial Chains, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Jiangxi Guoguang Commercial Chains. Our data shows that Jiangxi Guoguang Industrial Co., Ltd. is the largest shareholder with 51% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 17% and 8.7%, of the shares outstanding, respectively. Shulan Jiang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Jiangxi Guoguang Commercial Chains

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders maintain a significant holding in Jiangxi Guoguang Commercial Chains Co., Ltd.. It has a market capitalization of just CN¥5.0b, and insiders have CN¥1.8b worth of shares in their own names. 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

With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jiangxi Guoguang Commercial Chains. 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

Our data indicates that Private Companies hold 53%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jiangxi Guoguang Commercial Chains better, we need to consider many other factors. For instance, we've identified 3 warning signs for Jiangxi Guoguang Commercial Chains (2 are potentially serious) that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.