Key Insights

• The considerable ownership by retail investors in Fujian Aonong Biological Technology Group Incorporation indicates that they collectively have a greater say in management and business strategy
• The top 5 shareholders own 52% of the company
• Insider ownership in Fujian Aonong Biological Technology Group Incorporation is 13%

If you want to know who really controls Fujian Aonong Biological Technology Group Incorporation Limited (SHSE:603363), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 41% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by CN¥374m last week.

In the chart below, we zoom in on the different ownership groups of Fujian Aonong Biological Technology Group Incorporation.

What Does The Institutional Ownership Tell Us About Fujian Aonong Biological Technology Group Incorporation?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Fujian Aonong Biological Technology Group Incorporation does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Fujian Aonong Biological Technology Group Incorporation's earnings history below. Of course, the future is what really matters.

Fujian Aonong Biological Technology Group Incorporation is not owned by hedge funds. Xiamen Aonong Investment Co., Ltd. is currently the largest shareholder, with 31% of shares outstanding. You Lin Wu is the second largest shareholder owning 10% of common stock, and Zhangzhou Financial Investment Group Co., Ltd. holds about 5.1% of the company stock. You Lin Wu, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On looking further, we found that 52% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of 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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Fujian Aonong Biological Technology Group Incorporation

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our most recent data indicates that insiders own a reasonable proportion of Fujian Aonong Biological Technology Group Incorporation Limited. Insiders own CN¥498m worth of shares in the CN¥3.8b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 41% stake in the company, and hence can't easily be ignored. 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

We can see that Private Companies own 40%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Fujian Aonong Biological Technology Group Incorporation , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com