Key Insights

• Insiders appear to have a vested interest in Hithink RoyalFlush Information Network's growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 57% ownership
• 13% of Hithink RoyalFlush Information Network is held by Institutions

If you want to know who really controls Hithink RoyalFlush Information Network Co., Ltd. (SZSE:300033), then you'll have to look at the makeup of its share registry. We can see that individual insiders 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.

And following last week's 10% decline in share price, insiders suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Hithink RoyalFlush Information Network.

What Does The Institutional Ownership Tell Us About Hithink RoyalFlush Information Network?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Hithink RoyalFlush Information Network does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Hithink RoyalFlush Information Network's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Hithink RoyalFlush Information Network. The company's CEO Zheng Yi is the largest shareholder with 36% of shares outstanding. Qiongjiu Ye is the second largest shareholder owning 11% of common stock, and Shanghai Kaishi'ao Information Consulting Center (Limited Partnership) holds about 9.5% of the company stock. Interestingly, the second-largest shareholder, Qiongjiu Ye is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Hithink RoyalFlush Information Network

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.

It seems that insiders own more than half the Hithink RoyalFlush Information Network Co., Ltd. stock. This gives them a lot of power. Insiders own CN¥92b worth of shares in the CN¥165b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hithink RoyalFlush Information Network. 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.

Private Company Ownership

Our data indicates that Private Companies hold 9.5%, of the company's shares. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Hithink RoyalFlush Information Network better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Hithink RoyalFlush Information Network (of which 1 is potentially serious!) you should know about.

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.