Private companies are the largest owners of Yunnan Plant Biotechnology Group Co., Ltd. (SZSE:300957), which was hit as its market capitalization fell by CA$2.7b.

key insights

To know who really controls Yunnan Botanee Bio-Technology Group Co.LTD (SZSE:300957), it's important to understand the ownership structure of the business. The group that owns the most shares in the company (about 55% to be exact) is a private company. In other words, this group faces the greatest upside potential (or downside risk).

The private company would have faced the biggest losses than any other shareholder group in the company, as its market capitalization fell to C$26 billion last week.

The image below zooms in on the various ownership groups of Yunnan Plant Biotechnology Group Co., Ltd.

See our latest analysis for Yunnan Botanee Bio-Technology GroupLTD.

What does institutional ownership tell us about Yunnan Plant Biotechnology Group Co., Ltd.?

Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Yunnan Plant Biotechnology Group Co., Ltd. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. If multiple financial institutions change their view on a stock at the same time, you could see the stock price drop fast. It is therefore worth checking Yunnan Plant Biotechnology Group LTD's earnings history, below. Of course, what really matters is the future.

We note that hedge funds don't have any meaningful investments in Yunnan Plant Biotechnology Group Co., Ltd. Kunming Nuona Technology Co., Ltd. is currently the company's largest shareholder with his 46% of the outstanding shares. Beijing Hongshan Kunde Investment Management Center (LP) and Kunming Zhenli Consulting Co., Ltd. hold 15% and 6.5% of the outstanding shares, respectively, making them the second and third largest shareholders.

On closer inspection, we found that the top two shareholders together control more than half of the company's shares, suggesting that they have significant power to influence the company's decisions.

While researching 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 a significant number of analysts covering this stock, so it might be useful to know their aggregate forecast for the future.

Insider ownership in Yunnan Botanee Bio-Technology GroupLTD

The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. The answers of company management to the board of directors and the latter must represent the interests of shareholders. In particular, top-level managers may serve on the board themselves.

I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.

Our latest data shows that insiders own some shares in Yunnan Plant Biotechnology Group Co., Ltd. This is a big company, so it's good to see this level of collaboration. Insiders say he owns CA$674m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if these insiders have been selling.

Open to the public

With an ownership of 18%, the general public, who are mostly retail investors, have some influence over Yunnan Plant Biotechnology Group Co., Ltd. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.

private equity ownership

Private equity firms hold a 15% stake and may influence Yunnan Plant Biotechnology Group Co., Ltd.'s board of directors. Some investors may be encouraged by this, as private equity may be able to encourage strategies that help the market recognize a company's value. Alternatively, those holders may withdraw from their investment after the initial public offering.

Private company ownership

It appears that private companies own 55% of the shares in Yunnan Botanee Bio-Technology GroupLTD. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.

Next steps:

It's always worth thinking about the different groups who own shares in a company. However, to understand Yunnan Botanee Bio-Technology GroupLTD better, you need to consider many other factors. For example, consider the ever-present fear of investment risk. We've identified 2 warning signs for you Yunnan Botanee Bio-Technology GroupLTD (at least one potentially serious) and understanding them should be part of your investment process.

If you're like me, you might want to consider whether this company will grow or shrink. Luckily you can check this free report showing analyst forecasts for its future.

Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.