CD International Enterprises, Inc. (CDII)

Tip on: April 3, 2017

CD International Enterprises, Inc. (CDII)

is a U.S.-based company operating in two primary business segments: mineral trading and consulting services. Headquartered in Deerfield Beach, Florida, with operations centering on the rapid growth of the Chinese economy, CDII allows prospective investors to participate in the considerable opportunities presented by emerging markets in both the People’s Republic of China and the Americas.

CDII Minerals, Inc., a wholly-owned subsidiary of CD International, serves as its commodities trading division. Through CDII Minerals, CDII sources, aggregates and distributes iron ore, manganese ore and scrap metals for clients operating throughout China. The company maintains a strategic position between its North and South American suppliers and its Chinese clients, allowing it to both address a niche market opportunity and facilitate more efficient transactions for its customers.

In addition to its mineral trading services, CDII has found success in offering a comprehensive suite of consulting services related to the unique characteristics of business operations in China. In December 2016, the company announced its entry into a two-year corporate agreement with a China-based subsidiary of Everbright International Construction Engineering Corporation, through which CDII will provide information related to foreign and domestic constructions, project tending offers, government communications and local networks. In January 2017, CDII announced its entry into a similar agreement with Zhangjiajie Shengshi Agricultural Development Company, through which it will provide consulting services related to a number of business developments, including the development of a distribution business centered on cannabidiol extract derived from industrial hemp.

Per the company’s website, CDII’s greatest strength lies in the quality of its personnel, which includes a culturally diverse group of professionals operating within the United States, as well as in China and emerging markets throughout the Americas. Dr. James Wang has served as CEO and chairman of the CDII board since August 2006. He has also served as CEO and chairman of China Direct Investments since January 2005. Wang brings a wealth of experience in corporate finance in the U.S. capital markets to the CDII management team, and his work in the identification and acquisition of China-based growth companies has played an instrumental role in the execution of CD International’s strategic vision for over a decade.

Wang is joined on the CDII management team by Controller Shirley Xu and Vice President of Business Development Katie Zhao. Xu has served as the company’s controller since January 2013, assuming a range of responsibilities including internal control, general ledger accounting oversight, and financial reporting for CDII and its subsidiaries. She is also responsible for SEC financial reporting for the company’s consulting segment clients.

Katie Zhao has served in her current role with CD International since January 2012. Prior to becoming VP of business development, she served as the company’s project manager from 2007 to 2009 and as senior account executive from 2010 to 2011. From these positions, Zhao played a key role in the establishment of CDII’s U.S. distribution channels for its Chinese clients, as well as the implementation of a network connecting the company’s U.S. and China-based offices.

Investment Considerations

  • Strong management team with wealth of experience
  • Recent acquisition forecasted by management to add $5M to $7M in net income in fiscal 2017 and grow to $8M to $12M in fiscal 2018
  • New mineral trading model is designed to create a profit center while limiting risk exposure
  • China iron ore imports hit a new record in 2016

CD International Enterprises, Inc. Website