Key Insights

• Significant control over Shenyang Xingqi PharmaceuticalLtd by individual investors implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 22 shareholders
• 31% of Shenyang Xingqi PharmaceuticalLtd is held by insiders

To get a sense of who is truly in control of Shenyang Xingqi Pharmaceutical Co.,Ltd. (SZSE:300573), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 48% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors gained the most after market cap touched CN¥21b last week, while insiders who own 31% also benefitted.

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

What Does The Institutional Ownership Tell Us About Shenyang Xingqi PharmaceuticalLtd?

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.

Shenyang Xingqi PharmaceuticalLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Shenyang Xingqi PharmaceuticalLtd, (below). Of course, keep in mind that there are other factors to consider, too.

Shenyang Xingqi PharmaceuticalLtd is not owned by hedge funds. Jidong Liu is currently the company's largest shareholder with 28% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 4.8% and 3.4%, of the shares outstanding, respectively. Additionally, the company's CEO E. Gao directly holds 1.2% of the total shares outstanding.

After doing some more digging, we found that the top 22 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Shenyang Xingqi 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Shenyang Xingqi Pharmaceutical Co.,Ltd.. It is very interesting to see that insiders have a meaningful CN¥6.3b stake in this CN¥21b business. 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

The general public-- including retail investors -- own 48% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shenyang Xingqi PharmaceuticalLtd better, we need to consider many other factors. Take risks for example - Shenyang Xingqi PharmaceuticalLtd has 1 warning sign we think you should be aware of.

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.