Qingdao Ai Innovation Technology Group Co., Ltd. (HKG:2121)'s largest shareholder is a private equity firm, which benefited from a HK$412 million jump in market capitalization last week.

key insights

• The private equity firms' significant control over Qingdao Ai Innovation Technology Group means that the general public has more power to influence management and governance-related decisions.
• Top 4 shareholders own 57% of the company
• What Insiders Recently Bought

If you want to know who really controls Qingdao Ai Innovation Technology Group Co., Ltd. (HKG:2121), then you have to look at the makeup of its share registry. And the group with the biggest slice of the pie is private equity firms, with 39% ownership. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).

As a result, the stock price rose 15% last week, bringing the company's market capitalization to HK$3.2 billion and giving it the highest score overall for private equity firms.

The chart below zooms in on the different ownership groups for Qingdao AInnovation Technology Group.

Check out our latest analysis for Qingdao AInnovation Technology Group.

What does institutional ownership say about Qingdao AInnovation Technology Group?

Institutional investors commonly compare their own returns to the returns of a closely followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.

Qingdao AInnovation Technology Group already has institutional investors on the share registry. Institutional investors actually own a significant stake in the company. This may indicate that the company has some credibility in the investment community. However, it is best to be wary of relying on approval from institutional investors. Institutional investors sometimes make mistakes, too. When multiple institutional investors own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade fails, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see Qingdao AInnovation Technology Group's past earnings and revenue below, but keep in mind there's always more to the story.

Qingdao AInnovation Technology Group is not owned by hedge funds. Sinovation Ventures (Beijing) Enterprise Management Limited is currently the company's largest shareholder with 26% of shares issued. CICC ALPHA (Beijing) Private Investment Fund Management Co., Ltd. is the second largest shareholder owning 13% of common shares, and Hui Xu holds approximately 11% of the company's shares. The third largest shareholder, Hui Xu, also holds the title of Board of Directors Member.

To make our research more interesting, we found that the top 4 shareholders control more than half of the company. This means that this group has significant influence over company decisions.

Researching institutional ownership is a good way to assess and filter a stock's expected performance. The same can be done by studying analyst sentiment. There are quite a few analysts covering this stock, so it might be useful to know their aggregate forecast for the future.

Insider ownership in Qingdao A Innovation Technology Group

The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.

Most consider insider ownership a positive, because it can indicate the board is well aligned with other shareholders. However, in some cases, too much power may be concentrated within this group.

It appears that insiders own a significant portion of Qingdao Ai Innovation Technology Group Co., Ltd. Insiders own HK$613m worth of shares in the HK$3.2b company. This could suggest that the founders still own a large number of shares. Click here to see if they are buying or selling.

Public Ownership

With an ownership of 22%, the general public, mainly retail investors, have some influence over Qingdao AInnovation Technology Group. While this size of ownership may not be enough to tilt policy decisions in their favor, they can still collectively influence company policy.

private equity ownership

The private equity firm holds a 39% stake and may influence Qingdao AI Innovation Technology Group's board of directors. Some may like this because private equity can be activists who hold management accountable. However, private equity can also be sold by taking a company public.

Private company ownership

It appears that private companies own 5.4% of Qingdao Ai Innovation Science and Technology Group's shares. It might be worth looking into this further. If insiders or other parties have an interest in these private companies, this must 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. However, to understand Qingdao AInnovation Technology Group better, you need to consider many other factors.Case in point: we discovered 2 warning signs for Qingdao AInnovation Technology Group you should know.

If you want to know what analysts are predicting in terms of future growth, don't miss this free Report on analyst forecasts.

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