Key Insights

• The considerable ownership by individual investors in Hefei Taihe Intelligent Technology GroupLtd indicates that they collectively have a greater say in management and business strategy
• The top 15 shareholders own 50% of the company
• Insider ownership in Hefei Taihe Intelligent Technology GroupLtd is 30%

If you want to know who really controls Hefei Taihe Intelligent Technology Group Co.,Ltd. (SHSE:603656), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 50% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 10% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 30% stock also took a hit.

Let's delve deeper into each type of owner of Hefei Taihe Intelligent Technology GroupLtd, beginning with the chart below.

What Does The Institutional Ownership Tell Us About Hefei Taihe Intelligent Technology GroupLtd?

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.

As you can see, institutional investors have a fair amount of stake in Hefei Taihe Intelligent Technology GroupLtd. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Hefei Taihe Intelligent Technology GroupLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Hefei Taihe Intelligent Technology GroupLtd. The company's largest shareholder is Da Hong Xu, with ownership of 24%. Sungrow Power Supply Co., Ltd. is the second largest shareholder owning 11% of common stock, and Founder H Fund Co., Ltd. holds about 2.8% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. 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 Hefei Taihe Intelligent Technology GroupLtd

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 a reasonable proportion of Hefei Taihe Intelligent Technology Group Co.,Ltd.. Insiders own CN¥1.0b worth of shares in the CN¥3.3b company. 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 50% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hefei Taihe Intelligent Technology GroupLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 11% of Hefei Taihe Intelligent Technology GroupLtd stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. Be aware that Hefei Taihe Intelligent Technology GroupLtd is showing 4 warning signs in our investment analysis , and 1 of those is potentially serious...

Of course this may not be the best stock to buy. So take a peek at this free 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.