Key Insights

• Significant control over Ningbo Lian TechnologyLtd by private companies implies that the general public has more power to influence management and governance-related decisions
• 55% of the company is held by a single shareholder (Zhejiang Habi Intelligent Technology Co., Ltd.)
• Insiders own 14% of Ningbo Lian TechnologyLtd

A look at the shareholders of Ningbo Lian Technology Co.,Ltd (SZSE:300784) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit CN¥3.5b market cap following a 20% gain in the stock.

Let's delve deeper into each type of owner of Ningbo Lian TechnologyLtd, beginning with the chart below.

What Does The Lack Of Institutional Ownership Tell Us About Ningbo Lian TechnologyLtd?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Ningbo Lian TechnologyLtd might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Ningbo Lian TechnologyLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Zhejiang Habi Intelligent Technology Co., Ltd. with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Shifeng Li and Yi Qiu, with an equal amount of shares to their name at 6.0%.

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

Insider Ownership Of Ningbo Lian TechnologyLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that insiders maintain a significant holding in Ningbo Lian Technology Co.,Ltd. Insiders have a CN¥494m stake in this CN¥3.5b business. 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

The general public-- including retail investors -- own 29% 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 56%, 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. Be aware that Ningbo Lian TechnologyLtd is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.