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
• Institutions own 16% of Hithink RoyalFlush Information Network

To get a sense of who is truly in control of Hithink RoyalFlush Information Network Co., Ltd. (SZSE:300033), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 15% 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.

See our latest analysis for Hithink RoyalFlush Information Network

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

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.

Hithink RoyalFlush Information Network already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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.

Hithink RoyalFlush Information Network is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Zheng Yi with 36% of shares outstanding. With 11% and 9.5% of the shares outstanding respectively, Qiongjiu Ye and Shanghai Kaishi'ao Information Consulting Center (Limited Partnership) are the second and third largest shareholders. Interestingly, the second-largest shareholder, Qiongjiu Ye is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our most recent data indicates that insiders own the majority of Hithink RoyalFlush Information Network Co., Ltd.. This means they can collectively make decisions for the company. Insiders own CN¥37b worth of shares in the CN¥66b company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 18% 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

It seems that Private Companies own 9.5%, of the Hithink RoyalFlush Information Network stock. 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 Hithink RoyalFlush Information Network is showing 2 warning signs in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.