Rare Earth Exchanges–Ownership Structure of China Northern Rare Earth (Group) High-Tech Co., Ltd.

Nov 26, 2024

Highlights

  • Retail investors hold the largest share at 53%, giving individual investors significant corporate governance influence.
  • Baotou Steel (Group) Co., Ltd. is the largest shareholder, controlling 37% of shares, with indirect Chinese government ownership.
  • The company demonstrates a dispersed control structure with no single entity completely dominating decision-making.

China Northern Rare Earth (Group) High-Tech Co., Ltd. (SHSE:600111) has a diverse ownership structure with retail investors holding the largest share at 53%. This level of public ownership gives individual investors significant influence over key decisions such as board composition, executive compensation, and dividend policies. Private companies follow with 41% ownership, suggesting potential ties to insiders or related parties. Institutional investors also own a stake, adding professional credibility, though hedge funds are notably absent. Indirectly the Chinese government owns a sizable interest.

Key insights as reported in Simply WallSt (opens in a new tab)

  • Major Shareholders: Baotou Steel (Group) Co., Ltd. is the largest shareholder, controlling 37% of shares. The next two largest shareholders hold 4.3% and 0.8%, respectively.
  • Insider Ownership: Insiders, including board members, hold less than 1% of the company, collectively valued at CN¥4.0 million.
  • Institutional Credibility: While institutions hold a respectable portion, their influence is limited compared to retail and private ownership.
  • Analyst Coverage: The company is followed by analysts, indicating interest in future growth prospects.

The ownership breakdown reflects a dispersed control structure, with no single entity dominating decision-making. However, the strong presence of retail investors underscores the public's potential to influence corporate governance. But we must underestimated related state control over related assets.

The company’s ownership structure includes a significant stake held by Baotou Steel (Group) Co., Ltd (opens in a new tab)., which owns 37% of the shares. Baotou Steel is a state-owned enterprise, indicating that the Chinese government indirectly holds a substantial portion of China Northern Rare Earth's shares through this ownership.

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By Daniel

Inspired to launch Rare Earth Exchanges in part due to his lifelong passion for geology and mineralogy, and patriotism, to ensure America and free market economies develop their own rare earth and critical mineral supply chains.

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