Cd Intl Entrprises (PINK:CDII)

WEB NEWS

Wednesday, July 12, 2017

Comments & Business Outlook

PLANTATION, Florida, July 12, 2017 /PRNewswire/ --

CD International Enterprises, Inc. ("CD International, or the Company") (OTC: CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, today announced that CD International has entered into a purchase contract to purchase 10,000 tons of copper concentrate (30% Cu) per month or 120,000 tons over 12 months with a Chile-based company.

Per the purchase contract, CD International agrees to purchase 10,000 metric tons of copper concentrate (30% Cu) per month over a period of 12 months. The total shipment over a period of 12 months will be 120,000 metric tons of copper concentrate. The initial 12 months contract of 120,000 metric tons of copper concentrate values approximately US $260 million on basis of the current copper future price on the London Metal Exchange. 

China imported 4.74 million metric tons of copper concentrate from Chile in 2016, up 26.7% year-on-year, the latest data released Tuesday by the General Administration of Customs showed.
Chile is China's top source of imported copper concentrate. China imported 17.05 million metric tons of copper concentrate in 2016.

Dr. James Wang, Chairman and CEO of CD International commented on the purchase contract, "We are very excited to enter this purchase contract, as we continue to source mineral commodity for our Chinese clients. We have delivered copper concentrate from Chile and Bolivia to China in the past, as demand by China for copper concentrate continues to grow substantially. Under our new mineral trading model, we are confident we can create a profit center while limiting exposure of our capital to market risk. We believe a successful completion of this transaction will fundamentally change our company's future for years to come."


Wednesday, May 24, 2017

Comments & Business Outlook

PLANTATION, Florida, May 24, 2017 /PRNewswire/ --

CD International Enterprises, Inc. ('CD International, or the Company') (OTC: CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, today announces that it has entered into a full corporate offer with a Dominican Republic-based company for the monthly purchase of 100,000 tons of metallurgic-grade bauxite.

The terms of the offer require CD International to purchase 100,000 metric tons of metallurgical-grade bauxite per month, for a period of 12 months. The total shipment will be 1.2 million metric tons. This initial 12-month contract is valued at approximately US$37 million on the basis of FOB price at Cabo Rojo, Dominican Republic.

Dr. James Wang, Chairman and CEO of CD International, commented, "We are pleased to enter into this agreement on the heels of signing a separate offer to purchase copper cathodes, valued at approximately $330 million. As part of sourcing a variety of industrial commodities for our clients in China, we are advancing our newly established business model and leveraging our existing connections in China. Upon a successful delivery of bauxite to our clients in China, we believe we will enter a new level of business. Under our new mineral trading model, we are confident we can create a profit center while limiting exposure of our capital to market risk. Importantly, we are also actively pursuing new mineral suppliers for our clients in China, South America and North America. As we move forward, we believe we are well-positioned to take advantage of increasing demand of industrial commodities in the years to come."


Tuesday, May 16, 2017

Comments & Business Outlook

PLANTATION, Florida, May 16, 2017 /PRNewswire/ --

CD International Enterprises, Inc. (CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, today announces that it has entered into a wholesale distribution agreement with GWR Distributors, Inc. based in the U.S., GWR Distributors is one of the world's leading suppliers of cannabidiol (CBD)-based products derived from hemp. 

Per the agreement, CD International will purchase CBD products at a wholesale price from GWR Distributors, and then market the products to Chinese-speaking consumers. The CBD products include CBD capsules and concentrates, edibles and oils, isolates, syrup and terp, as well as CBD for pets.

The distribution agreement strengthens CD International's Green Products Distribution division and online store, which were recently launched for the distribution of CBD-based products worldwide. These initiatives are part of the Company's expansion plans to sell CBD-based products in Chinese-speaking communities, which collectively represent a potential global market of over 1.6 billion people.

"We are very pleased to work with GWR Distributors, one of the world's leading suppliers of CBD-based products, to bring the best CBD-based products manufactured in the U.S. to our target market. With multiple successful global transactions, a wealth of international relationships, and in-depth knowledge of the innate practices of Chinese commerce and customers, we believe we are well-positioned to take advantage of substantial growth of CBD based products in China for years to come," said Dr. James Wang, chairman and CEO of CD International Enterprises.


Wednesday, May 10, 2017

Acquisition Activity

PLANTATION, Florida, May 10, 2017 /PRNewswire/ --

CD International Enterprises, Inc. ("CD International, or the Company") (CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, today announces that it has entered into a full corporate offer to purchase 5,000 tons of copper cathodes (99.99% Cu) per month with a Tanzania-based company.

Terms of the offer require CD International to purchase 5,000 metric tons of copper cathodes (99.99% Cu) per month over a period of 12 months.  The total shipment over a period of 12 months will be 60,000 metric tons of copper cathodes. Based on the current copper future price on the London Metal Exchange, this initial 12-month contract of 60,000 metric tons of copper cathodes is valued at approximately US$330 million. 

Dr. James Wang, Chairman and CEO of CD International, commented, "We are very excited to enter this full corporate offer as our Chinese clients are ready to make purchases.  China imported 3.63 million metric tons of refined copper in 2016, just shy of the previous year's record 3.68 million metric tons. To fulfill a niche market and facilitate smooth transactions, we have been working very hard in the past several years to strategically place ourselves between our suppliers and our buyers in China.  This newly sourced supply could provide us with a stable supply of copper cathodes for our clients in China. We expect to commence the first shipment for our clients within months.  More importantly, the new business vertical is expected to provide substantial profits for our shareholders in years to come." 


Wednesday, May 3, 2017

Comments & Business Outlook

PLANTATION, Florida, May 3, 2017 /PRNewswire/ --

CD International Enterprises, Inc. ('CD International, or the Company') (OTC: CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, today announced that CD International has entered into a letter of intent with a Honduras-based company to purchase iron ore (62% to 63% Fe).

Per the letter of intent, CD International agrees to purchase 100,000 metric tons of iron ore (62% to 63% Fe) per month over a period of 12 months. The total shipment over a period of 12 months will be 1.2 million metric tons of iron ore. The monthly supply can be increased to 500,000 metric tons per month or 6 million metric tons of iron ore per year. The initial 12 months contract of 1.2 million metric tons of iron ore values approximately $84 million on basis of the current CIF China price. 

According to Chinese customs data, China's imports of iron ore rose 7.5 percent to a record 1.024 billion tons in 2016. The total topped the 2015 record of 952.84 million tons. China's 2017 March iron ore imports rose 11 percent from the same month a year earlier to the second-highest monthly amount on record as the world's second-biggest economy ramped up a drive for cheap overseas supply as the cost of domestic output grew. Imports in March were 95.56 million tons, according to data from the General Administration of Customs. For the first quarter of 2017, imports grew 12 percent to 271 million tons. That is a quarterly record. This rise was the result of two factors: resilient steel demand in China (partly driven by government stimulus measures) and the replacement of Chinese domestic iron ore production by the import of cheaper high-grade ore imports, mainly from Australia and Brazil.

Dr. James Wang, Chairman and CEO of CD International commented on the letter of intent, "We are pleased to enter this letter of intent, as we have been proactively sourcing iron ore supply for our Chinese clients. This newly sourced supply could provide us a stable supply of iron ore for our clients in China. Under our new mineral trading model, we believe we can create a profit center while we limit exposure of our capital to market risk. Imported iron ore to China will continue at the levels we are seeing now, or perhaps even grow as we go forward. We actively pursue new mineral suppliers for our clients in China in both South and North America. As we move forward, we believe we are well positioned to take advantage of increasing demand of iron ore by China in years to come." 


Wednesday, December 21, 2016

Resolution of Legal Issues

PLANTATION, Florida, December 21, 2016 /PRNewswire/ --

CD International Enterprises, Inc. ("CD International") (OTC: CDIID, CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, today announced that CDI Shanghai Management Company, Limited, a wholly-owned subsidiary of CD International, has entered into a two-year corporation agreement with Everbright Investment & Construction Company (Shenzhen), Limited, a wholly-owned subsidiary of Everbright International Construction Engineering Corporation, specializing in constructions of domestic and foreign housing construction projects and domestic international tendering projects, exportation of all construction machinery and materials, staffing of labor personnel for international construction projects, construction contracting, professional contracting, consulting services in regards to road transpiration and project supervision, sales of construction material, metal material, wood, and electronic machineries.

Under the corporation agreement, CDI Shanghai Management will provide Everbright Investment & Construction Company information related to foreign and domestic constructions, project tendering offers, government communications, and local networks. Two parties will be working together in terms of their qualifications, technology, facilities, project management, and project personnel for any specific projects.

Commenting on the corporation agreement, Dr. James Wang, Chairman and CEO of CD International said, "We are very excited to have an opportunity for working with Everbright Investment & Construction Company, Limited.  We believe that we can generate substantial consulting and finder fees by working with a subsidiary owned by one of top Chinese companies.  The corporation agreement will open more business opportunities for us for years to come."


Monday, May 23, 2016

Comments & Business Outlook
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
For the three and six months ended March 31, 2016 and 2015
(Unaudited)
 
   
   
For the Three Months Ended March 31,
   
For the Six Months Ended March 31,
 
   
2016
   
2015
   
2016
   
2015
 
Revenues
  $ 48,772     $ 57,475     $ 82,987     $ 172,416  
Including: revenues from related party
    21,375       10,000       45,249       13,750  
Cost of revenues
    12,888       29,992       21,516       30,027  
Gross profit
    35,884       27,483       61,471       142,389  
Operating expenses:
    -       -                  
Selling, general, and administrative
    404,409       548,752       801,539       1,186,809  
Total operating expenses
    404,409       548,752       801,539       1,186,809  
Operating loss
    (368,525 )     (521,269 )     (740,068 )     (1,044,420 )
Other income (expenses):
    -       -                  
Other income (expenses)
    (1,118 )     5,099       100,793       103,375  
Interest expense
    (540,757 )     (33,654 )     (1,466,286 )     (443,939 )
Interest expense - related parties
    (8,100 )     (45,000 )     (16,200 )     (90,409 )
Realized loss on marketable securities available-for-sale
    (37,979 )     -       (90,658 )     -  
Gain (loss) on revaluation for receivable and payable of marketable securities available-for-sale
    8,544       (2,300 )     27,644       (42,866 )
Change in fair value of derivative liabilities
    3,941,234       274,540       (7,299,047 )     749,884  
Total other income (expenses)
    3,361,824       198,685       (8,743,754 )     276,045  
Income (loss) from continuing operations before income taxes
    2,993,299       (322,584 )     (9,483,822 )     (768,375 )
Income tax expense
    -       -       -       -  
Net Income (loss) from continuing operations
    2,993,299       (322,584 )     (9,483,822 )     (768,375 )
Discontinued operations:
    -       -                  
Loss from discontinued operations, net of taxes
    -       -       -       (19,033 )
Total loss from discontinued operations, net of taxes
    -       -       -       (19,033 )
Net income (loss)
    2,993,299       (322,584 )     (9,483,822 )     (787,408 )
Net income (loss) attributable to CD International Enterprises, Inc.
    2,993,299       (322,584 )     (9,483,822 )     (787,408 )
Dividends on series A preferred stock
    (20,130 )     (20,130 )     (40,260 )     (40,260 )
Net income (loss) allocable to common stockholders
  $ 2,973,169     $ (342,714 )   $ (9,524,082 )   $ (827,668 )
COMPREHENSIVE INCOME (LOSS):
    -       -                  
Net income (loss)
  $ 2,993,299     $ (322,584 )   $ (9,483,822 )   $ (787,408 )
Foreign currency translation adjustments
    986       (17,555 )     504       111,374  
Unrealized gain (loss) on marketable securities available-for-sale
    23,453       (3,950 )     53,103       (31,750 )
Comprehensive income (loss)
    3,017,738       (344,089 )     (9,430,215 )     (707,784 )
Foreign currency translation adjustments - non-controlling interest
    -       -       -       (62 )
Comprehensive income (loss) attributable to CD International Enterprises, Inc.
    3,017,738       (344,089 )     (9,430,215 )     (707,722 )
Preferred stock dividend
    (20,130 )     (20,130 )     (40,260 )     (40,260 )
Comprehensive income (loss) attributable to common stockholders
  $ 2,997,608     $ (364,219 )   $ (9,470,475 )   $ (747,982 )
                                 
Basic and diluted net income (loss) per common share - basic:
                               
Net income (loss) from continuing operations
  $ 0.00     $ (0.01 )   $ (0.02 )   $ (0.01 )
Net loss from discontinued operations
    -       -       -       (0.00
     Net income (loss) per common share
  $ 0.00     $ (0.01 )   $ (0.02 )   $ (0.01 )
Basic and diluted net income (loss) per common share - diluted:
                               
Net income (loss) from continuing operations
  $ 0.00     $ (0.01 )   $ (0.02 )   $ (0.01 )
Net loss from discontinued operations
    -       -       -       (0.00
     Net income (loss) per common share
  $ 0.00     $ (0.01 )   $ (0.02 )   $ (0.01 )
Basic weighted average common shares outstanding
    633,211,160       67,347,474       430,394,279       64,800,771  
Diluted weighted average common shares outstanding
    3,350,189,582       67,347,474       430,700,882       64,800,771  

Thursday, May 12, 2016

Acquisition Activity

DEERFIELD BEACH, Florida, May 11, 2016 /PRNewswire/ --

CD International Enterprises, Inc. ("CD International") (OTC: CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, today announced that its wholly owned subsidiary, China Manor Assets Investment Management Company, Limited ("CMAIM") entered a letter of intent to purchase 20% equity in Bridgewater Warranty Group, Limited (BWG), for a consideration of $1 million. BWG intends to domicile its operations in the colony of Bermuda.

Bridgewater Warranty Group, Limited, DBA Warrnty-One.com, is a company with a global vision for a better warranty program for all household electronics under one umbrella. Every aspect of BWG has been designed to deliver exceptional results. BWG embraces customer goals and focuses on its proven methods by giving them the results they need, quickly and efficiently. BWG's focused approach is to revitalize existing service plan programs and to develop new service capabilities to give customers peace of mind.

With the equity investment by CMAIM, CMAIM will receive an exclusive right to market and sell BWG warranty services in China.

Commenting on the acquisition, Dr. James Wang, Chairman and CEO of CD International said, "With this equity investment, we believe that CMAIM could launch a new venture in China to expand its service offering beyond financing lease business in China. BWG's business model is unique in terms of generating substantial cash flow with very little upfront investment. We believe that it could be working out very well in China, as we see there is a great demand for such services in the market place. The venture could be another profit center for our corporation."


Wednesday, March 9, 2016

Comments & Business Outlook

Item 1.01 Entry into a Material Definitive Agreement.


The information contained in Item 2.01 below relating to the Share Share Exchange Agreement (as defined below) is incorporated herein by reference.


Item 2.01 Completion of Acquisition or Disposition of Assets.


On March 7, 2016, CD International Enterprises, Inc. (the "Company") entered into (and closed) a Share Exchange Agreement (the "Agreement") to acquire 100% ownership in equity interest in Chinese Manor Assets Investment Management Company, Limited, a Cayman corporation ("CMAIM") from CMAIM's sole shareholder, Mr. Xiangjun Wang. The Agreement was unanimously approved by our Board of Directors.


Under the terms of the agreement, the Company purchased 100% ownership interest in CMAIM for an aggregate purchase price of $5 million based on the initial registered capital for CMAIM's wholly-owned subsidiary in China. CDII will issue to Mr. Wang 1,670,000 shares of company's Series G Convertible Preferred Stock with a total market value of $5 million. The preferred stock can be converted to Company's common stock upon a listing of the Company's common stock on NYSE or NASDAQ. The convertibility ratio is one share of the preferred stock to one thousand shares of Company's common stock. Each share of the preferred stock has the voting rights of 1,000 shares of Company common stock; and, thus, Xiangjun Wang, the sole equity owner of CMAIM, will be able to vote approximately 70% of the Company's common stock and control the Company.


CMAIM owns 100% of equity ownership of Shenzhen Tianron Finance Leasing Company, Limited, a Chinese limited liability company based in Shenzhen, China ("STRFL"). CMAIM is doing business through STRFL in the areas of financing, investment and business management in the industries of biotechnology, high-tech, media, agriculture, and health care.


The Agreement contains certain representations, warranties and covenants between the parties. The Agreement may be terminated by any party to the agreement if the closing under the terms of the Agreement has not occurred in accordance with the Agreement. The Company plans to file a Form 8-K/A within 71 days to disclose audited financial statements of CMAIM since its inception.


Mr. Xiangjun Wang has no family relationship with Company's management.


The foregoing description does not purport to be complete and is qualified in its entirety by reference to the agreement, a copy of which is filed as Exhibit 10.73 hereto and is incorporated herein by reference.


Item 3.02 Unregistered Sales of Equity Securities.


The information set forth in Item 2.01 above relating to the Agreement is incorporated herein by reference. The issuance of shares of the Company's common stock to the former sole security holder of CMAIM was not registered, and will not be registered, under the Securities Act, pursuant to an exemption from the registration requirements provided by Section 4(a)(2) thereof and Rule 506(b) of Regulation D thereunder. The shares of Company common stock will be "restricted securities" for purposes of Rule 144 and subject to certain requirements before sale, including holding period requirements, unless sold pursuant to an effective registration statement under the Securities Act.


Item 5.01 Changes in Control of the Company.


Pursuant to the Agreement, on March 7, the Company issued 1,670,000 shares of Company's series G preferred stock to Mr. Xiangjun Wang as part of the purchase price of the acquisition of CMAIM. Each share of the preferred stock has the voting rights of 1,000 shares of Company common stock; and, thus, Xiangjun Wang, who was the sole equity owner of CMAIM, will be able to vote approximately 70% of the Company's common stock and control the Company.


Thursday, February 25, 2016

Comments & Business Outlook

Item 8.01                                Other Events.

 
On February 24, 2016, CD International Enterprises, Inc. (the "Company") filed a complaint against three entities and two individuals in the District of Columbia, United States District Court. The complaint alleges illegal, unregistered resale of 220 million shares of restricted common stock of the Company. The Company seeks monetary recovery for damages for breach of contract and/or wrongful conversion of restricted shares; for damages arising from violations of Sections 5(a), 5(c) and 17(a) of the 1933 Securities Act, and Sections 10(b) and 12(b) of the 1934 Securities Act, and Rule 10b-5 promulgated thereunder. Monetary recovery includes monetary gain through fraud by defendants of over $2 million and loss of Company¡¯s market value of over $33 million.


Monday, February 22, 2016

Comments & Business Outlook
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
For the three months ended December 31, 2015 and 2014
 
(Unaudited)
 
   
For the Three Months Ended
December 31,
 
   
2015
   
2014
 
 Revenues
 
$
34,215
   
$
114,941
 
 Including: revenues from related party
   
23,874
     
3,750
 
 Cost of revenues
   
8,628
     
35
 
 Gross profit
   
25,587
     
114,906
 
 Operating expenses:
               
 Selling, general, and administrative
   
397,130
     
638,057
 
 Total operating expenses
   
397,130
     
638,057
 
 Operating loss
   
(371,543
)
   
(523,151
)
 Other income (expenses):
               
 Other income
   
101,911
     
98,276
 
 Interest expenses
   
(925,529
)
   
(410,285
)
 Interest expenses - related parties
   
(8,100
)
   
(45,409
)
 Realized loss on marketable securities available-for-sale
   
(52,679
)
   
-
 
 Gain (loss) on revaluation for receivable and payable of marketable securities available-for-sale
   
19,100
     
(40,566
)
 Change in fair value of derivative liability
   
(11,240,281
   
475,344
 
 Total other income (expenses)
   
(12,105,578
   
77,360
 
 Loss from continuing operations before income taxes
   
(12,477,121
)
   
(445,791
)
 Income tax expense
   
-
     
-
 
 Net loss from continuing operations
   
(12,477,121
)
   
(445,791
)
 Discontinued operations:
               
 Loss from discontinued operations, net of taxes
   
-
     
(19,033
)
 Total loss from discontinued operations, net taxes
   
-
     
(19,033
 Net loss
   
(12,477,121
)
   
(464,824
)
 Net loss attributable to CD International Enterprises, Inc.
   
(12,477,121
)
   
(464,824
)
 Dividends on series A preferred stock
   
(20,130
)
   
(20,130
)
 Net loss allocable to common stockholders
 
$
(12,497,251
)
 
$
(484,954
)
 COMPREHENSIVE INCOME (LOSS):
               
 Net loss
 
$
(12,477,121
)
 
$
(464,824
)
 Foreign currency translation adjustments
   
(482
   
128,929
 
 Unrealized gain (loss) on marketable securities available-for-sale
   
29,650
     
(27,800
)
 Comprehensive loss
   
(12,447,953
)
   
(363,695
)
 Foreign currency translation adjustments - non-controlling interest
   
-
     
(62
)
 Comprehensive loss attributable to CD International Enterprises, Inc.
   
(12,447,953
)
   
(363,633
)
 Preferred stock dividend
   
(20,130
)
   
(20,130
)
 Comprehensive loss attributable to common stockholders
 
$
(12,468,083
)
 
$
(383,763
)
 Basic and diluted net loss per common share - basic:
               
 Net loss from continuing operations
 
$
(0.05
 
$
(0.01
)
 Net loss from discontinued operations
   
-
     
(0.00
          Net loss per common share
 
$
(0.05
 
$
(0.01
)
 Basic and diluted net loss per common share - diluted:
               
 Net loss from continuing operations
 
$
(0.05
 
$
(0.01
)
 Net loss from discontinued operations
   
-
     
(0.00
          Net loss per common share
 
$
(0.05
 
$
(0.01
)
 Basic weighted average common shares outstanding
   
229,781,930
     
62,309,431
 
 Diluted weighted average common shares outstanding
   
229,781,930
     
62,309,431

Tuesday, February 16, 2016

Comments & Business Outlook

DEERFIELD BEACH, Florida, February 16, 2016 /PRNewswire/ --

CD International Enterprises, Inc. ("CD International") (OTC: CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, today announced that CD International has entered into a long-term supply agreement with a U.S.-based mineral processing company to purchase iron ore fine (62% Fe).

Per the agreement, CD International agrees to purchase 100,000 metric tons of iron ore fine (62% Fe) per month over a period of 180 months.  The total shipment over a period of 15 years will be 18 million metric tons of iron ore fine in total. 

According to Chinese customs data, monthly imports of iron ore to China reached 96.27 million tons in December 2015, blowing away the previous monthly record high of 86.83 million tons set in January 2014.  The enormous increase coincided with signs of continued inventory restocking at Chinese ports.  As a result of the strong lift in December, total iron ore imports in 2015 to China soared to 953.36 million tons, also a record high. For more information, please visit http://www.businessinsider.com.au .

Dr. James Wang, Chairman and CEO of CD International commented on the agreement, "We are excited to enter this long-term supply agreement.  This agreement could provide us a stable supply of iron ore fine for our clients in China. Upon a successful delivery of iron ore fine to our clients in China, we believe we are transforming our company into a new level.  Under our new mineral trading model, we believe we can create a profit center while we limit exposure of our capital to market risk.  We actively pursue new mineral suppliers for our clients in China in both South and North America.  As we move forward, we believe we are well positioned to take advantage of increasing demand of iron ore by China in years to come."   


Tuesday, February 9, 2016

Comments & Business Outlook
Item 1.01                      Entry into a Material Definitive Agreement.               
 
On January 28, 2016, CD International Enterprises, Inc.'s (the "Company" "we", "us" or "our") wholly owned subsidiary, Capital Resources Management Corporation ("Capital Resources Management"), entered into an agreement ("Agreement") with China-based trading corporation("China Trading"), whereby Capital ResourcesManagement has agreed to supply up to 200,000 wet metric tons (plus or minus 5%) of iron ore fineper month to China Trading, for a total of up to 4,800,000 wet metric tons to be delivered over a 24 months period.The Agreement provides specifications on concentrate content, methods of determining weight and moisture content of the concentrates, price and payment and adjustments thereto,and resolution of differences in concentrate assay results. The company has been actively sourcing supplier to execute the transaction.

Wednesday, January 27, 2016

Comments & Business Outlook

Item 1.01                      Entry into a Material Definitive Agreement.              


On November 2, 2015,  CD International Enterprises, Inc.'s (the "Company" "we", "us" or "our") wholly owned subsidiary, Capital Resources Management Corporation ("Capital Resources Management"), entered into an agreement ("Agreement") with a Hunan Province-based mineral trading corporation ("Hunan Mineral"), whereby Capital Resources Management has agreed to supply up to 10,000 wet metric tons (plus or minus 10%) of copper concentrate per month to Hunan Mineral, for a total of up to 240,000 wet metric tons to be delivered over a 24 months period. Also, the Agreement provides conditions for the supply (if any) by Capital Resources Management of gold and silver concentrate to Hunan Minerals. The Agreement provides specifications on concentrate content, methods of determining weight and moisture content of the concentrates, price and payment and adjustments thereto, and resolution of differences in concentrate assay results.  The Company has been actively sourcing suppliers to execute the transaction.


Tuesday, January 26, 2016

Comments & Business Outlook

Item 8.01. Other Events.


On January 26, 2016, the Board of Directors of CD International Enterprises, Inc. (the "Company") approved adoption of an insider trading policy (the "Policy"), effective immediately. The Policy provides the standards that Company personnel are required to adhere to with regard to trading of the Company's securities while in possession of material non-public information. The Policy prohibits or restricts trading by directors, officers, employees, consultants of the Company and its subsidiaries, and any other listed by the Company under the Policy in certain circumstances. For more details about the Policy, please refer to Exhibit 99.1 to this Current Report.


Tuesday, January 19, 2016

Comments & Business Outlook
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
For the Year Ended September 30, 2015 and 2014
 
             
   
For the Years Ended September 30,
 
   
2015
   
2014
 
 Revenues
  $ 360,049     $ 1,714,538  
 Including: revenues from related party
    31,250       61,250  
 Cost of revenues
    111,002       1,036,690  
 Gross profit
    249,047       677,848  
 Operating expenses:
               
 Selling, general, and administrative
    3,762,817       5,009,605  
 Total operating expenses
    3,762,817       5,009,605  
 Operating loss
    (3,513,770 )     (4,331,757 )
 Other income (expenses):
               
 Other income
    582,012       77,394  
 Interest expense
    (728,030 )     (111,992 )
 Interest expense - related parties
    (106,609 )     (102,133 )
 Realized gain on marketable securities available-for-sale
    -       21,963  
 Gain (loss) on revaluation for receivable and payable of marketable securities available-for-sale
    709       (55,385 )
 Change in fair value of derivative liabilities
    (884,973 )     (449,788 )
 Total other income (expenses)
    (1,136,891 )     (619,941 )
 Loss from continuing operations before income taxes
    (4,650,661 )     (4,951,698 )
 Income tax expense
    -       -  
 Net loss from continuing operations
    (4,650,661 )     (4,951,698 )
 Discontinued operations:
               
 Loss from discontinued operations, net of taxes
    (19,033 )     (15,234,108 )
 Gain on disposal of subsidiaries, net of taxes
    1,573,177       33,949,995  
 Total income from discontinued operations, net of taxes
    1,554,144       18,715,887  
 Net income (loss)
    (3,096,517 )     13,764,189  
 Less: Net loss attributable to non-controlling interests
    -       (2,738,685 )
 Net income (loss) attributable to CD International Enterprises, Inc.
    (3,096,517 )     16,502,874  
 Dividends on series A preferred stock
    (80,494 )     (80,520 )
 Net income (loss) allocable to common stockholders
  $ (3,177,011 )   $ 16,422,354  
 COMPREHENSIVE INCOME (LOSS):
               
 Net income (loss)
  $ (3,096,517 )   $ 13,764,189  
 Foreign currency translation adjustments
    139,409       (591,846 )
 Unrealized loss on marketable securities available-for-sale
    (69,552 )     (112,099 )
 Comprehensive income (loss)
    (3,026,660 )     13,060,244  
 Net loss attributable to non-controlling interests
    -       (2,738,685 )
 Foreign currency translation adjustments - non-controlling interest
    8       5,010  
 Comprehensive income (loss) attributable to CD International Enterprises, Inc.
    (3,026,668 )     15,793,919  
 Preferred stock dividend
    (80,494 )     (80,520 )
 Comprehensive income (loss) attributable to common stockholders
  $ (3,107,162 )   $ 15,713,399  
                 
 Basic and diluted net income (loss) per common share - basic:
               
 Net loss from continuing operations
  $ (0.07 )   $ (0.08 )
 Net income from discontinued operations
    0.02       0.34  
          Net income (loss) per common share
  $ (0.05 )   $ 0.26  
 Basic and diluted net income (loss) per common share - diluted:
               
 Net loss from continuing operations
  $ (0.07 )   $ (0.08 )
 Net income from discontinued operations
    0.02       0.34  
          Net income (loss) per common share
  $ (0.05 )   $ 0.26  
 Basic weighted average common shares outstanding
    68,475,634       63,335,816  
 Diluted weighted average common shares outstanding
    68,475,634       63,335,816  

Management Discussion and Analysis

Revenues in fiscal year 2015 decreased by 79%, as compared to fiscal year 2014, primarily due to downsizing of our Mineral Trading segment operations in South America and the decline of iron ore market price.

Our Mineral Trading segment have no revenue in fiscal year 2015, decreased by 100% as compared to fiscal year 2014, primarily due to decrease of revenues from our downsizing business and ceasing operations in South America. In fiscal year 2015, the declined price of iron ore, zinc, copper and lead has materially impact our trading business. During the fourth quarter of fiscal 2015, we terminated operations in Chile, the Chilean government granted us approval to officially close down the business on July 31, 2015. In the fiscal year 2014, we sold 2,700 metric tons of iron ore and about 300 metric tons of copper from South America to China. Due to lack of working capital, in September 2014, we downsized operations of CDII Bolivia, and all inventories were sold prior to the closing of the subsidiary.

Our Consulting segment revenues primarily consist of consulting and advisory service fees we received from certain publicly traded U.S. companies with their primary business operations located in the PRC. We receive a fixed number of shares of their marketable securities or fees from those client companies, including both recurring and one-time transaction fees for services provided to clients. Consulting segment revenues vary from period to period depending upon the timing, nature and scope of services we provide to a particular client and performance of our client companies' stock price. Our Consulting segment generated approximately $360,000 in revenues during fiscal year 2015, as compared to $915,000 in fiscal year 2014, primarily due to the declining value of our client companies' stock price, coupled with a reduction in scope of consulting and transactional services provided to the clients during fiscal year 2015.


Net loss for fiscal year 2015 amounted to $3.1 million, as compared to net gain of $13.8 million for fiscal year 2014, primarily due to a decrease of $0.3 million in net loss from continuing operations and we also had a decrease of $15.0 million in loss from discontinued operations, together with an decrease of $32.4 million from the gain on disposal of subsidiaries.


Wednesday, December 9, 2015

Comments & Business Outlook

IDI Completes Acquisition of Fluent

Accelerates IDI's Strategy to Apply Next-Generation Data Fusion Technology to the Consumer Marketing Industry; Dr. Phillip Frost Assumes Role of Vice Chairman of IDI's Board of Directors

BOCA RATON, FL--(Marketwired - December 09, 2015) - IDI, Inc. (NYSE MKT: IDI), an information solutions provider, today announced that it has completed its acquisition of New York-based Fluent, Inc. The transaction was funded with $100 million in cash and 15,000,000 shares of IDI common stock.

A leader in people-based digital marketing and customer acquisition, Fluent has served over 500 leading brands and direct marketers, experiencing 100% YOY revenue growth from 2014-2015. The combined entity is expected to be cash flow positive from day one, with Fluent posting approximately $126 million in revenue and approximately $20 million in EBITDA over trailing twelve months through Q3 2015.

Derek Dubner, Co-CEO of IDI, stated, "The acquisition of Fluent is transformative, placing IDI in an enviable position of leveraging our advanced data analytics in support of multiple industries. While our team has built the leading organizations within the multi-billion dollar risk management space, our goal has been to apply our technology to consumer marketing, opening up our addressable market by orders of magnitude. Fluent's business, management, and employees are now a vital piece of IDI's growth and we believe this acquisition provides significant value for our shareholders."

Ryan Schulke, CEO of Fluent, added, "While this acquisition serves as further confirmation of Fluent's success in driving exceptional value and ROI within the digital marketing space, we believe joining the IDI family opens up an exciting new chapter for our business. We feel IDI's data fusion and big data analytics will greatly accelerate growth, creating a truly differentiated company within the industry."

IDI also announced the closing of its related debt financing with H.I.G. WhiteHorse and Dr. Phillip Frost's $47 million investment in support of the cash component of the transaction. Additionally, Dr. Frost, current Chairman and CEO of OPKO Health (NYSE: OPK), has joined IDI's Board of Directors as Vice Chairman. Further, Ryan Schulke will join the IDI Board of Directors, as well as Donald H. Mathis, current CEO and Co-Founder of Kinetic Social, a social data and marketing technology company. Mr. Mathis will serve as an Independent Director of the Board and serve on the Audit Committee and the Compensation Committee.

Dr. Frost stated, "This acquisition is a major milestone for IDI and represents the Company's, and my own, continued commitment to its growth strategy. We are pleased with our new relationship with H.I.G. WhiteHorse. In addition to their support in financing the acquisition, their team lends significant market expertise to further power IDI's growth."


Tuesday, December 8, 2015

Investor Alert
Item 8.01  Other Events
 
 
On December 3, 2015, OTC Markets Group placed a Caveat Emptor symbol on the web page provided by OTC Markets Group on its marketplace for CD International Enterprises, Inc. (the “Company”).  Upon enquiry, OTC Markets Group staff cited as reason why the symbol was assigned that the Company common stock has been subject to being promoted to the public, but adequate current information about the Company has not been made available to the public.
 
The Company is working diligently to satisfy any concerns OTC Markets Group may have about the adequacy of the current information about the Company and any other concerns.
 
Generally, OTC Markets Group will remove the Caveat Emptor designation once the Company meets the qualifications for OTC Pink Current Information or OTCQB and has displayed that there is no longer a public interest concern, typically no sooner than 30 days.

Thursday, December 3, 2015

Comments & Business Outlook

Item 1.01 Entry into a Material Definitive Agreement.              


On November 2, 2015, China Direct Industries, Inc.’s (the “Company” “we”, “us” or “our”) wholly owned subsidiary Capital Resources Management Corporation, received a purchase order of copper concentrate for 240,000 tons, to be delivered over a 24 months period starting in 2016, from a Chinese trading company.

With the current price of $4,400 per ton on copper, we estimated the value of this purchase order to be approximately $350 million upon a successful completion of the transaction.


Wednesday, December 2, 2015

Contract Awards

DEERFIELD BEACH, Florida, December 2, 2015 /PRNewswire/ --

CD International Enterprises, Inc. ("CD International") (OTC: CDII), a U.S.-based company that sources and distributes industrial commodities in China and the Americas and provides business and management corporate consulting services, today announced that Capital Resources Management Corporation, a wholly owned subsidiary of CD International, has received a purchase order of copper concentrate for 240,000 tons over 24 months.

Per the purchase order, CD International will source 10,000 tons of copper concentrate per month over a period of 24 months.  With today's spot price of copper, the purchase order has a value at approximately $350 million.  Management plans to source copper concentrate in Chile and Peru and expects to start delivery in 2016.  In order to finance the transaction, we will use a transferable Letter of Credit issued by our buyer and transfer a portion of the Letter of Credit to our supplier to complete the transaction.  The transaction will not need any extra financing.

Dr. James Wang, Chairman and CEO of CD International commented on the agreement, "we are very excited with this purchase order.  We have delivered copper concentrate from Chile and Bolivia to China in the past several years. In order to fulfill a niche market and facilitate smooth transactions, we have been working very hard in the past several years to strategically place ourselves between our suppliers in South America and our buyers in China.  We believe a successful completion of this transaction will fundamentally change our company's future for years to come."  


Friday, October 16, 2015

Comments & Business Outlook

Item 8.01 Other Events.

 
On October 15, 2015, CD International Enterprises, Inc.(the "Company") and TCA Global Credit Master Fund, LP ("TCA Global") has agreed on and entered into a serious of agreements (the "Settlement Agreements") in regards to the outstanding loan payable related to the Revolving Convertible Promissory Note(the "Original Note"), dated May 31, 2014 and made effective July 30, 2014, between the Company and TCA Global. Pursuant to the terms agreed upon in the Settlement Agreements, the maturity date of the Original Note shall be extended by twelve months (the "Extended Maturity Date") to allow the Company to have sufficient time to generate cash flows for repayment. TCA Global has also agreed to suspend all litigation against the Company, as discussed in the Company's recent form 10-Q filed with the SEC on August 25, 2015, until the Extended Maturity Date.


Thursday, September 24, 2015

Acquisition Activity

DEERFIELD BEACH, Florida, September 24, 2015 /PRNewswire/ --

CD International Enterprises, Inc. ("CD International") (OTC: CDII), a U.S.-based company that sources and distributes industrial commodities in China and the Americas and provides business and management corporate consulting services, today announced that CDI Shanghai Management Company, a wholly owned subsidiary of CDII International, has entered an agreement with HK International Finance & Investment Group Limited for a potential acquisition of one of the wholly owned subsidiaries of HK International Finance & Investment Group Limited.

The targeted holding company that CD International plans to acquire is based in Hong Kong with diversified operations in service industries including hospitality, health endowment, and construction design.  According to unaudited financial statements, the targeted holding company generated over $25 million in consolidated revenues and over $6 million in consolidated net income in the calendar year of 2014.

Management has started due diligence process and plans to finish auditing of two year financial statements for the targeted holding company by the end of December 2015.  Management expects to close the acquisition upon satisfactory completion of due diligence and auditing of two year financial statements of the targeted holding company.  

Dr. James Wang, Chairman and CEO of CD International commented on the agreement, "One of management's focuses on growing the company again is growth through merger and acquisition. Management is actively looking for merger and acquisition opportunities that align with our strategic priorities. Management believes the successful acquisition will significantly accelerate our growth and profitability and substantially add values for our shareholders for years to come."


Tuesday, August 25, 2015

Comments & Business Outlook
CD INTERNATIONAL ENTERPRISES, INC AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
For the Three and Nine Months Ended June 30, 2015 and 2014
 
(Unaudited)
 
                         
   
For the Three Months Ended June 30,
   
For the Nine Months Ended June 30,
 
   
2015
   
2014
   
2015
   
2014
 
 Revenues
  $ 74,636     $ 213,035     $ 247,052     $ 1,134,922  
 Including: revenues from related parties     10,000       15,000       23,750       51,250  
 Cost of revenues
    19,800       30,677       49,827       712,963  
 Gross profit
    54,836       182,358       197,225       421,959  
 Operating expenses:
                               
 Selling, general, and administrative
    305,654       817,029       1,540,767       3,073,622  
 Impairment on other current assets
    1,901,876       -       1,901,876       -  
 Total operating expenses
    2,207,530       817,029       3,442,643       3,073,622  
 Operating loss
    (2,152,694 )     (634,671 )     (3,245,418 )     (2,651,663 )
 Other income (expenses):
                               
 Other income (expense)
    (256 )     5,533       102,927       199,675  
 Interest expense
    (68,525 )     (6,942 )     (483,001 )     (48,009 )
 Interest expense - related parties
    (8,100 )     (41,767 )     (98,509 )     (57,967 )
 Realized gain (loss) on marketable securities available-for-sale
    -       (71,362 )     -       21,963  
 Gain (loss) on revaluation for receivable and payable of marketable securities available-for-sale
    15,000       44,536       (27,866 )     (36,644 )
 Change in fair value of derivative liabilities
    181,058       425,827       930,942       (425,446 )
 Total other income (expenses)
    119,177       355,825       424,493       (346,428 )
 Loss from continuing operations before income taxes
    (2,033,517 )     (278,846 )     (2,820,925 )     (2,998,091 )
 Income tax expense
    -       -       -       -  
 Net loss from continuing operations
    (2,033,517 )     (278,846 )     (2,820,925 )     (2,998,091 )
 Discontinued operations:
                               
 Loss from discontinued operations, net of taxes
    -       (1,790,330 )     -       (12,849,756 )
 Gain on disposal of subsidiaries, net of taxes
    3,482,953       -       3,482,953       -  
 Total income (loss) from discontinued operations, net of taxes
    3,482,953       (1,790,330 )     3,482,953       (12,849,756 )
 Net income (loss)
    1,449,436       (2,069,176 )     662,028       (15,847,847 )
 Less: Net loss attributable to non-controlling interests
    -       (62,420 )     -       (2,258,729 )
 Net income (loss) attributable to CD International Enterprises, Inc.
    1,449,436       (2,006,756 )     662,028       (13,589,118 )
 Dividends on series A preferred stock
    (20,130 )     (20,130 )     (60,390 )     (60,390 )
 Net income (loss) allocable to common stockholders
  $ 1,429,306     $ (2,026,886 )   $ 601,638     $ (13,649,508 )
 COMPREHENSIVE INCOME (LOSS):
                               
 Net income (loss)
  $ 1,449,436     $ (2,069,176 )   $ 662,028     $ (15,847,847 )
 Foreign currency translation adjustments
    34,151       (46,278 )     145,525       607,366  
 Unrealized loss on marketable securities available-for-sale
    (15,000 )     (128,401 )     (46,750 )     (88,600 )
 Comprehensive income (loss)
    1,468,587       (2,243,855 )     760,803       (15,329,081 )
 Net loss attributable to CD International Enterprises, Inc.
    -       (62,420 )     -       (2,258,729 )
 Foreign currency translation adjustments - non-controlling interest
    (71 )     (26,560 )     (133 )     112,905  
 Comprehensive income (loss) attributable to CD International Enterprises, Inc.
    1,468,658       (2,154,875 )     760,936       (13,183,257 )
 Preferred stock dividend
    (20,130 )     (20,130 )     (60,390 )     (60,390 )
 Comprehensive income (loss) attributable to common stockholders
  $ 1,448,528     $ (2,175,005 )   $ 700,546     $ (13,243,647 )
                                 
 Basic and diluted net income (loss) per common share - basic:
                               
 Net loss from continuing operations
  $ (0.03 )   $ -     $ (0.04 )   $ (0.05 )
 Net income (loss) from discontinued operations
    0.05       (0.03 )     0.05       (0.17 )
          Net income (loss) per common share
  $ 0.02     $ (0.03 )   $ 0.01     $ (0.22 )
 Basic and diluted net income (loss) per common share - diluted:
                               
 Net loss from continuing operations
  $ (0.03 )   $ -     $ (0.04 )   $ (0.05 )
 Net income (loss) from discontinued operations
    0.05       (0.03 )     0.05       (0.17 )
          Net income (loss) per common share
  $ 0.02     $ (0.03 )   $ 0.01     $ (0.22 )
 Basic weighted average common shares outstanding
    67,347,474       63,209,636       65,649,672       62,492,530  
 Diluted weighted average common shares outstanding
    67,347,474       63,209,636       65,649,672       62,492,530  

Management Discussion and Analysis

Revenues

Revenues in the three month ended June 30, 2015 decreased by 65%, as compared to the three month ended June 30, 2014, primarily due to the decreased revenue generated from our Consulting segment and we do not have revenue generated in our Mineral Trading segment. Revenue in the nine months ended June 30, 2015 decreased by 78%, as compared to the nine months ended June 30, 2014, also primarily due to a decrease of approximately $470,000 in revenues generated from our Mineral Trading segment, and a decrease of approximately $419,000 in revenue generated from our Consulting segment. Our Consulting segment revenues primarily consist of consulting and advisory service fees we received from certain publicly traded U.S. companies with their primary business operations located in the PRC. We receive a fixed number of shares of their marketable securities or fees from those client companies, including both recurring and one-time transaction fees for services provided to clients. Consulting segment revenues vary from period to period depending upon the timing, nature and scope of services we provide to a particular client and performance of our client companies' stock price. Our Consulting segment generated approximately $75,000 and $247,000 in revenues during the three and nine months ended June 30, 2015, as compared to $207,000 and $666,000 during the three and nine months ended June 30, 2014, primarily due to the declining value of our client companies' stock, coupled with a reduction in scope of consulting and transactional services provided to the new clients during the three and nine months ended June 30, 2015, respectively.


Net Loss from Continuing Operations
 
Net loss from continuing operations for the three and nine months ended June 30, 2015 amounted to approximately $2,034,000 and $2,821,000 as compared to net loss of $279,000 and $2,998,000 for the three and nine months ended June 30, 2014, respectively. The changes in net loss from continuing operations resulted from the factors discussed above. The net loss from continuing operations for the three months ended June 30, 2015 primarily consisted of $306,000 in general and administrative expense, and impairment loss on other assets of $1,902,000, offset by $119,000 in other income in the three months ended June 30, 2015. The net loss from continuing operations for the nine months ended June 30, 2015 primarily consisted of $3,443,000 in operating expense, offset by $424,000 in other income in the nine months ended June 30, 2015.
 

Discontinued Operations

As described elsewhere in this report, in April 2015, the Company sold its entire 95% equity interest in CDI Jingkun Zinc and 100% equity interest in CDI Metal to Xiaowen Zhuang, a related party individual. The Company also sold its 100% equity interest in CDI Jixiang Metal to Dragon Capital, a related party company. As a result, results of operations, financial position and cash flows associated with CDI Jingkun Zinc, CDI Metal and CDI Jixiang Metal are also reported as discontinued operations for all periods presented. The Company recorded a gain on disposal of subsidiaries of $3.5 million in the three months and nine months ended June 30, 2015, respectively, as compared to a loss of $1.8 million and $12.8 million from discontinued operations for the three and nine months ended June 30, 2014.


Net Income/Loss

Net income for the three and nine months ended June 30, 2015 amounted to approximately $1.5 million and $0.7 million, as compared to net loss of approximately $2.1 million and $15.8 million for the three and nine months ended June 30, 2014 respectively. For the three months ended June 30, 2015, we had a decrease of $1.8 million in losses from discontinued operations, together with an increase of $3.5 million from the gain on disposal of subsidiaries, which was offset by the $1.9 million increase in impairment on other current assets. For the nine months ended June 30, 2015 compared with the same period in fiscal year 2014, we had a decrease of $12.8 million in losses from discontinued operations, together with an increase of $3.5 million from the gain on disposal of subsidiaries.


Thursday, August 20, 2015

Comments & Business Outlook
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
 
For the Three and Six Months Ended March 31, 2015 and 2014
 
(Unaudited)
 
                         
   
For the Three Months Ended March 31,
   
For the Six Months Ended March 31,
 
   
2015
   
2014
   
2015
   
2014
 
 Revenues
  $ 57,475     $ 541,311     $ 172,416     $ 921,887  
    Revenues from related parties
    10,000       21,250       13,750       36,250  
 Cost of revenues
    29,992       549,044       30,027       682,286  
 Gross profit
    27,483       (7,733 )     142,389       239,601  
 Operating expenses:
                               
 Selling, general, and administrative
    548,752       1,166,264       1,235,113       2,256,593  
 Total operating expenses
    548,752       1,166,264       1,235,113       2,256,593  
 Operating loss
    (521,269 )     (1,173,997 )     (1,092,724 )     (2,016,992 )
 Other income (expenses):
                               
 Other income
    5,099       60,533       103,183       194,142  
 Interest expenses
    (33,654 )     (24,933 )     (414,476 )     (41,067 )
 Interest expenses - related parties
    (45,000 )     (8,100 )     (90,409 )     (16,200 )
 Realized gain (loss) on marketable securities available-for-sale
    -       (1,070 )     -       93,325  
 Loss on revaluation for receivable and payable of marketable securities available-for-sale
    (2,300 )     (54,851 )     (42,866 )     (81,180 )
 Change in fair value of derivative liabilities
    274,540       340,194       749,884       (851,273 )
 Total other income (expense)
    198,685       311,773       305,316       (702,253 )
 Loss from continuing operations before income taxes
    (322,584 )     (862,224 )     (787,408 )     (2,719,245 )
 Income tax expense
    -       -       -          
 Net loss from continuing operations
    (322,584 )     (862,224 )     (787,408 )     (2,719,245 )
 Discontinued operations:
                               
 Loss from discontinued operations, net of taxes
    -       (1,743,931 )     -       (11,059,426 )
 Gain on disposal of subsidiaries, net of taxes
    -       -       -       -  
Total loss from discontinued operations, net of taxes
    -       (1,743,931 )     -       (11,059,426 )
 Net loss
    (322,584 )     (2,606,155 )     (787,408 )     (13,778,671 )
 Less: Net loss attributable to non-controlling interests
    -       297,696       -       (2,196,309 )
 Net loss attributable to CD International Enterprises, Inc.
    (322,584 )     (2,903,851 )     (787,408 )     (11,582,362 )
 Dividends on series A preferred stock
    (20,130 )     (20,130 )     (40,260 )     (40,260 )
 Net loss allocable to common stockholders
  $ (342,714 )   $ (2,923,981 )   $ (827,668 )   $ (11,622,622 )
 COMPREHENSIVE INCOME (LOSS):
                               
 Net loss
  $ (322,584 )   $ (2,606,155 )   $ (787,408 )   $ (13,778,671 )
 Foreign currency translation adjustments
    (17,555 )     41,742       111,374       653,644  
 Unrealized gain (loss) on marketable securities available-for-sale
    (3,950 )     105,850       (31,750 )     39,801  
 Comprehensive loss
    (344,089 )     (2,458,563 )     (707,784 )     (13,085,226 )
 Net loss attributable to non-controlling interests
    -       297,696       -       (2,196,309 )
 Foreign currency translation adjustments - non-controlling interest
    -       102,171       (62 )     139,465  
 Comprehensive loss attributable to CD International Enterprises, Inc.
    (344,089 )     (2,858,430 )     (707,722 )     (11,028,382 )
 Preferred stock dividend
    (20,130 )     (20,130 )     (40,260 )     (40,260 )
 Comprehensive loss attributable to common stockholders
  $ (364,219 )   $ (2,878,560 )   $ (747,982 )   $ (11,068,642 )
 Basic and diluted net loss per common share - basic:
                               
 Net loss from continuing operations
  $ (0.01 )   $ (0.01 )   $ (0.01 )   $ (0.04 )
 Net loss from discontinued operations
    -       (0.03 )     -       (0.14 )
          Net loss per common share
  $ (0.01 )   $ (0.04 )   $ (0.01 )   $ (0.18 )
 Basic and diluted net loss per common share - diluted:
                               
 Net loss from continuing operations
  $ (0.01 )   $ (0.01 )   $ (0.01 )   $ (0.04 )
 Net loss from discontinued operations
    -       (0.03 )     -       (0.14 )
          Net loss per common share
  $ (0.01 )   $ (0.04 )   $ (0.01 )   $ (0.18 )
 Basic weighted average common shares outstanding
    67,347,474       63,209,636       64,800,771       62,133,977  
 Diluted weighted average common shares outstanding
    67,347,474       63,209,636       64,800,771       62,133,977  

Management Discussion and Analysis

Revenues

Revenues in the three month ended March 31, 2015 decreased by 89%, as compared to the three month ended March 31, 2014, primarily due to the decreased revenue generated from our Consulting segment and we do not have revenue generated in our Mineral Trading segment. Revenue in the six months ended March 31, 2015 decreased by 81%, as compared to the six months ended March 31, 2014, also primarily due to a decrease of approximately $463,000 in revenues generated from our Mineral Trading segment, and a decrease of approximately $286,000 in revenue generated from our Consulting segment during the comparable periods in fiscal year 2014.Our Consulting segment revenues primarily consist of consulting and advisory service fees we received from certain publicly traded U.S. companies with their primary business operations located in the PRC. We receive a fixed number of shares of their marketable securities or fees from those client companies, including both recurring and one-time transaction fees for services provided to clients. Consulting segment revenues vary from period to period depending upon the timing, nature and scope of services we provide to a particular client and performance of our client companies' stock price. Our Consulting segment generated approximately $58,000 and $172,000 in revenues during the three and six months ended March 31, 2015, as compared to $317,000 and $459,000 during the three and six months ended March 31, 2014, primarily due to the declining value of our client companies' stock, coupled with a reduction in scope of consulting and transactional services provided to the new clients during the three and six months ended March 31, 2015, respectively.


Net Loss from Continuing Operations
 
Net loss from continuing operations for the three and six months ended March 31, 2015 amounted to approximately $323,000 and $787,000 as compared to net loss of $862,000 and $2,719,000 for the three and six months ended March 31, 2014, respectively. The changes in net loss from continuing operations resulted from the factors discussed above. The net loss from continuing operations for the three months ended March 31, 2015 primarily consisted of $549,000 in operating expense, offset by $199,000 in other income in the three months ended March 31, 2015. The net loss from continuing operations for the six months ended March 31, 2015 primarily consisted of $1,235,000 in operating expense, offset by $305,000 in other income in the six months ended March 31, 2015.
 

Discontinued Operations

We do not have any loss from discontinued operations for the three and six months ended March 31, 2015, as compared to a loss of $1.7 million and $11.1 million from discontinued operations for the three and six months ended March 31, 2014, respectively, primarily due to higher cost of revenue and higher general and administrative expense in the three and six months ended March 31, 2014.


Net loss

Net loss for the three and six months ended March 31, 2015 amounted to approximately $323,000 and $787,000, as compared to net loss of approximately $2.6 million and $13.8 million for the three and six months ended March 31, 2014 respectively. For the six months ended March 31, 2015 compared with the same period in fiscal year 2014, the decrease in net loss was primarily due to a decrease of $11.1 million in losses from discontinued operations, a decrease of $1.0 million in operating loss and a decrease of $1.0 million in other loss.


Monday, August 17, 2015

Comments & Business Outlook
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
For the three months ended December 31, 2014 and 2013
 
(Unaudited)
 
             
   
For the Three Months Ended
December 31,
 
   
2014
   
2013
 
 Revenues
  $ 114,941     $ 380,576  
     Revenues from related party     3,750       15,000  
 Cost of revenues
    35       133,242  
 Gross profit
    114,906       247,334  
 Operating expenses:
               
 Selling, general, and administrative
    686,361       1,090,329  
 Total operating expenses
    686,361       1,090,329  
 Operating loss
    (571,455 )     (842,995 )
 Other income (expenses):
               
 Other income
    98,084       133,608  
 Interest expenses
    (380,822 )     (16,134 )
 Interest expenses - related parties
    (45,409 )     (8,100 )
 Realized gain on marketable securities available-for-sale
    -       94,396  
 Loss on revaluation for receivable and payable of marketable securities available-for-sale
    (40,566 )     (26,329 )
 Change in fair value of derivative liability
    475,344       (1,191,467 )
 Total other income (expenses)
    106,631       (1,014,026 )
 Loss from continuing operations before income taxes
    (464,824 )     (1,857,021 )
 Income tax expense
    -       -  
 Net loss from continuing operations
    (464,824 )     (1,857,021 )
 Discontinued operations:
               
 Loss from discontinued operations, net of taxes
    -       (9,315,495 )
 Total loss from discontinued operations, net taxes
    -       (9,315,495 )
 Net loss
    (464,824 )     (11,172,516 )
 Less: Net loss attributable to non-controlling interests
    -       (2,494,005 )
 Net loss attributable to CD International Enterprises, Inc.
    (464,824 )     (8,678,511 )
 Dividends on series A preferred stock
    (20,130 )     (20,130 )
 Net loss allocable to common stockholders
  $ (484,954 )   $ (8,698,641 )
 COMPREHENSIVE INCOME (LOSS):
               
 Net loss
  $ (464,824 )   $ (11,172,516 )
 Foreign currency translation adjustments
    128,929       611,902  
 Unrealized gain (loss) on marketable securities available-for-sale
    (27,800 )     (66,049 )
 Comprehensive loss
    (363,695 )     (10,626,663 )
 Net loss attributable to non-controlling interests
    -       (2,494,005 )
 Foreign currency translation adjustments - non-controlling interest
    (62 )     37,294  
 Comprehensive loss attributable to CD International Enterprises, Inc.
    (363,633 )     (8,169,952 )
 Preferred stock dividend
    (20,130 )     (20,130 )
 Comprehensive loss attributable to common stockholders
  $ (383,763 )   $ (8,190,082 )
 Basic and diluted net loss per common share - basic:
               
 Net loss from continuing operations
  $ (0.01   $ (0.03 )
 Net loss from discontinued operations
    (0.00     (0.11 )
          Net loss per common share
  $ (0.01   $ (0.14 )
 Basic and diluted net loss per common share - diluted:
               
 Net loss from continuing operations
  $ (0.01   $ (0.03 )
 Net loss from discontinued operations
    (0.00 )     (0.11 )
          Net loss per common share
  $ (0.01   $ (0.14 )
 Basic weighted average common shares outstanding
    62,309,431       59,763,716  
 Diluted weighted average common shares outstanding
    62,309,431       59,763,716  

Management Discussion and Analysis

Revenues


Revenues in the three month ended December 31, 2014 decreased by 70%, as compared to the three month ended December 31, 2013, primarily due to the decreased revenue generated from our Consulting segment and we do not have revenue generated in our Mineral Trading segment.

Our Consulting segment revenues primarily consist of consulting and advisory service fees we received from certain publicly traded U.S. companies with their primary business operations located in the PRC. We receive a fixed number of shares of their marketable securities or fees from those client companies, including both recurring and one-time transaction fees for services provided to clients. Consulting segment revenues vary from period to period depending upon the timing, nature and scope of services we provide to a particular client and performance of our client companies' stock price. Our Consulting segment generated approximately $115,000 in revenues during the three months ended December 31, 2014, as compared to $142,000 during the three months ended December 31, 2013, primarily due to the declining value of our client companies' stock, coupled with a reduction in scope of consulting and transactional services provided to the new clients during the three months ended December 31, 2014.


Net Loss from Continuing Operations

Net loss from continuing operations for the three months ended December 31, 2014 amounted to approximately $465,000 as compared to net loss of $1.9 million for the three months ended at December 31, 2013. The loss primarily consisted of $0.57 million in operating expense, offset by $0.1 million in other income.


Discontinued Operations

We do not have any loss from discontinued operations for the three months ended December 31, 2014, as compared to a loss of $9.3 million from discontinued operations for the three months ended December 31, 2013.


Net loss

Net loss for the three months ended December 31, 2014 amounted to approximately $465,000, as compared to net loss of approximately $11.2 million for the three months ended December 31, 2013, primarily due to a decrease of $9.3 million in losses from discontinued operations, a decrease of $0.4 million in total operating expenses and a decrease of $1.1 million in other expenses.


Thursday, August 6, 2015

Comments & Business Outlook
CD INTERNATIONAL ENTERPRISES, INC AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
For the Three and Nine Months Ended June 30, 2014 and 2013
 
(Unaudited)
 
                         
   
For the Three Months Ended June 30,
   
For the Nine Months Ended June 30,
 
   
2014
   
2013
   
2014
   
2013
 
 Revenues
  $ 213,035     $ 574,927     $ 1,134,922     $ 1,884,890  
 Cost of revenues
    30,677       579,690       712,963       1,607,309  
 Gross profit (loss)
    182,358       (4,763 )     421,959       277,581  
 Operating expenses:
                               
 Selling, general, and administrative
    817,029       817,493       3,073,622       2,816,334  
 Total operating expenses
    817,029       817,493       3,073,622       2,816,334  
 Operating loss
    (634,671 )     (822,256 )     (2,651,663 )     (2,538,753 )
 Other income (expenses):
                               
 Other income
    5,533       287,482       199,675       651,299  
 Interest expenses
    (6,942 )     (68,746 )     (48,009 )     (174,041 )
 Interest income (expenses) - related parties
    (41,767 )     (8,226 )     (57,967 )     8,303  
 Realized gain (loss) on marketable securities available-for-sale
    (71,362 )     156,005       21,963       547,841  
 Gain (loss) on revaluation for receivable and payable of marketable securities available-for-sale
    44,536       26,852       (36,644 )     (7,682,688 )
 Change in fair value of derivative liability
    425,827       104,877       (425,446 )     318,425  
 Total other income (expenses)
    355,825       498,244       (346,428 )     (6,330,861 )
 Loss from continuing operations before income taxes
    (278,846 )     (324,012 )     (2,998,091 )     (8,869,614 )
 Income tax expense
    -       -       -       -  
 Net loss from continuing operations
    (278,846 )     (324,012 )     (2,998,091 )     (8,869,614 )
 Discontinued operations:
                               
 Loss from discontinued operations, net of income taxes
    (1,790,330 )     (1,260,325 )     (12,849,756 )     (5,464,608 )
 Total loss from discontinued operations, net of income taxes
    (1,790,330 )     (1,260,325 )     (12,849,756 )     (5,464,608 )
 Net loss
    (2,069,176 )     (1,584,337 )     (15,847,847 )     (14,334,222 )
 Less: net income (loss) attributable to non-controlling interests
    (62,420 )     291,669       (2,258,729 )     (884,247 )
 Net loss attributable to CD International Enterprises, Inc.
    (2,006,756 )     (1,876,006 )     (13,589,118 )     (13,449,975 )
 Dividends on series A preferred stock
    (20,130 )     (20,130 )     (60,390 )     (60,390 )
 Net loss allocable to common stockholders
  $ (2,026,886 )   $ (1,896,136 )   $ (13,649,508 )   $ (13,510,365 )
                                 
 COMPREHENSIVE INCOME (LOSS):
                               
 Net loss
  $ (2,069,176 )   $ (1,584,337 )   $ (15,847,847 )   $ (14,334,222 )
 Foreign currency translation adjustments
    (46,278 )     209,360       607,366       135,156  
 Unrealized gain (loss) on marketable securities available-for-sale
    (128,401 )     (1,598,151 )     (88,600 )     368,334  
 Comprehensive loss
    (2,243,855 )     (2,973,128 )     (15,329,081 )     (13,830,732 )
 Net income (loss) attributable to non-controlling interests
    (62,420 )     291,669       (2,258,729 )     (884,247 )
 Foreign currency translation adjustments - non-controlling interests
    (26,560 )     475,412       112,905       499,999  
 Comprehensive loss attributable to CD International Enterprises, Inc.
    (2,154,875 )     (3,740,209 )     (13,183,257 )     (13,446,484 )
 Preferred stock dividend
    (20,130 )     (20,130 )     (60,390 )     (60,390 )
 Comprehensive loss attributable to common stockholders
  $ (2,175,005 )   $ (3,760,339 )   $ (13,243,647 )   $ (13,506,874 )
 Basic and diluted net loss per common share - basic:
                               
 Net loss from continuing operations
  $ (0.00 )   $ (0.01 )   $ (0.05 )   $ (0.16 )
 Net loss from discontinued operations
    (0.03 )     (0.03 )     (0.17 )     (0.08 )
          Net loss per common share
  $ (0.03 )   $ (0.04 )   $ (0.22 )   $ (0.24 )
 Basic and diluted net loss per common share - diluted:
                               
 Net loss from continuing operations
  $ (0.00 )   $ (0.01 )   $ (0.05 )   $ (0.16 )
 Net loss from discontinued operations
    (0.03 )     (0.03 )     (0.17 )     (0.08 )
          Net loss per common share
  $ (0.03 )   $ (0.04 )   $ (0.22 )   $ (0.24 )
 Basic weighted average common shares outstanding
    63,209,636       56,426,333       62,492,530       54,730,580  
 Diluted weighted average common shares outstanding
    63,209,636       56,426,333       62,492,530       54,730,580  

Management Discussion and Analysis

Revenues


Revenues in the three months ended June 30, 2014 decreased by 63%, as compared to the three months ended June 30, 2013, primarily due to the decreased revenue of approximately $519,000 generated from our Mineral Trading segment, offset by an increase of approximately $157,000 in revenue generated from our consulting segment for provide consulting service to our clients in the three months ended June 30, 2014. Revenue in the nine months ended June 30, 2014 decreased by 40%, as compared to the nine months ended June 30, 2013, also primarily due to a decrease of approximately $1,119,000 in revenues generated from our Mineral Trading segment, offset by an increase of approximately $369,000 in revenue generated from our consulting segment during the comparable periods in fiscal year 2013.

Our Mineral Trading segment generated approximately $6,000 and $469,000 for the three and nine months ended June 30, 2014, decreased by 99% and 70%, respectively, as compared to the same periods in 2013, primarily due to revenues decreased in our business in South America. We closed the business in Mexico operations after we finally sold the 11,000 metric tons of iron ore held in Mexico, priced at $233,000, to a local Mexican company due to that we could not receive the environmental permits and necessary export approvals in the first quarter of fiscal year 2013. Our operations in Chile experienced shipping delays due to a longer than expected timeframe to receive port authority approval to export the iron ore. In South America, we established new relationships with a supplier and are working with an engineering specialist to further strengthen our sourcing capabilities and a logistics provider to meet our inland transportation needs. In the fourth quarter of fiscal year 2013, CDII Minerals signed a purchase order with China-Base Ningbo Foreign Trade Co., Ltd. (“China Base”). China Base is a trading company located in Ningbo, China. Based on this agreement, China Base agreed to buy approximately 2,000 metric tons of iron ore from CDII Bolivia. CDII Minerals accomplished and fulfilled the contract with China- Base Ningbo Foreign Trade Co., Ltd. in March 2014. Our Mineral Trading segment also exported 130 metric tons of copper from South America to China and generated revenue of approximately $148,000 in calendar year of 2014.

Our Consulting segment revenues primarily consist of consulting and advisory service fees we received from certain publicly traded U.S. companies with their primary business operations located in the PRC. We receive a fixed number of shares of their marketable securities or fees from those client companies, including both recurring and one-time transaction fees for services provided to clients. Consulting segment revenues vary from period to period depending upon the timing, nature and scope of services we provide to a particular client and performance of our client companies' stock price. Our Consulting segment generated approximately $207,000 and $666,000 in revenues during the three and nine months ended June 30, 2014, as compared to $50,000 and $297,000 during the three and nine months ended June 30, 2013, primarily due to marketable securities received for services provided to new clients during the calendar year of 2014.


Net Loss from Continuing Operations
 
Net loss from continuing operations for the three and nine months ended June 30, 2014 amounted to $279,000 and $3.0 million, respectively, as compared to net loss of $324,000 and $8.9 million for the three and nine months ended at June 30, 2013. The loss for the three months ended June 30, 2014 consisted of approximately $817,000 operating expenses and offset approximately $356,000 other income. The loss for the nine months ended June 30, 2014 primarily consisted of approximately $3.1 million operating expenses and approximately $346,000 other expenses.


Discontinued Operations

During the fourth quarter of fiscal 2012, we discontinued the operations of Ruiming Magnesium, IMTC, Asia Magnesium, Baotou Changxin Magnesium, Chang Magnesium and Chang Trading, which were part of our Magnesium segment and also took an impairment charge for Chang Magnesium. In addition, in the fourth quarter of 2012, we discontinued our operations of CDI Jingkun Zinc and CDI Jixiang Metal which was part of our Mineral Trading segment. The loss from discontinued operations for the three and nine months ended June 30, 2014 amounted to approximately $1.8 million and $12.8 million, respectively, as compared to a loss of $1.3 million and $5.5 million from discontinued operations for the three and nine months ended June 30, 2013.


Net loss

Net loss for the three and nine months ended June 30, 2014 amounted to $2.1 million and $15.8 million, as compared to net loss of approximately $1.6 million and $14.3 million for the three and nine months ended June 30, 2013, respectively, primarily due to  increases of $530,000 and $7.4 million in losses from discontinued operations for the three and nine months ended June 30, 2014.


Friday, July 17, 2015

Comments & Business Outlook
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
For the Three and Six Months Ended March 31, 2014 and 2013
 
(Unaudited)
 
                         
   
For the Three Months Ended March 31,
   
For the Six Months Ended March 31,
 
   
2014
   
2013
   
2014
   
2013
 
 Revenues
  $ 541,311     $ 733,694     $ 921,887     $ 1,309,963  
 Cost of revenues
    549,044       416,766       682,286       1,027,619  
 Gross profit (loss)
    (7,733 )     316,928       239,601       282,344  
 Operating expenses:
                               
 Selling, general, and administrative
    1,166,264       931,462       2,256,593       1,998,841  
 Total operating expenses
    1,166,264       931,462       2,256,593       1,998,841  
 Operating loss
    (1,173,997 )     (614,534 )     (2,016,992 )     (1,716,497 )
 Other income (expenses):
                               
 Other income
    60,533       149,639       194,142       363,817  
 Interest expenses
    (24,933 )     (43,277 )     (41,067 )     (105,295 )
 Interest income (expenses) - related parties
    (8,100 )     16,529       (16,200 )     16,529  
 Realized gain (loss) on marketable securities available-for-sale
    (1,070 )     262,116       93,325       391,836  
 Loss on revaluation for receivable and payable of marketable securities available-for-sale
    (54,851 )     (6,313,301 )     (81,180 )     (7,709,540 )
 Change in fair value of derivative liability
    340,194       (1 )     (851,273 )     213,548  
 Total other income (expenses)
    311,773       (5,928,295 )     (702,253 )     (6,829,105 )
 Loss from continuing operations before income taxes
    (862,224 )     (6,542,829 )     (2,719,245 )     (8,545,602 )
 Income tax expense
    -       -       -       -  
 Net loss from continuing operations
    (862,224 )     (6,542,829 )     (2,719,245 )     (8,545,602 )
 Discontinued operations:
                               
 Loss from discontinued operations, net of income taxes
    (1,743,931 )     (2,259,681 )     (11,059,426 )     (4,204,283 )
 Total loss from discontinued operations, net of income taxes
    (1,743,931 )     (2,259,681 )     (11,059,426 )     (4,204,283 )
 Net loss
    (2,606,155 )     (8,802,510 )     (13,778,671 )     (12,749,885 )
 Less: Net income (loss) attributable to non-controlling interests
    297,696       (621,312 )     (2,196,309 )     (1,175,916 )
 Net loss attributable to CD International Enterprises, Inc.
    (2,903,851 )     (8,181,198 )     (11,582,362 )     (11,573,969 )
 Dividends on series A preferred stock
    (20,130 )     (20,130 )     (40,260 )     (40,260 )
 Net loss allocable to common stockholders
  $ (2,923,981 )   $ (8,201,328 )   $ (11,622,622 )   $ (11,614,229 )
 COMPREHENSIVE INCOME (LOSS):
                               
 Net loss
  $ (2,606,155 )   $ (8,802,510 )   $ (13,778,671 )   $ (12,749,885 )
 Foreign currency translation adjustments
    41,742       295,750       653,644       (74,204 )
 Unrealized gain on marketable securities available-for-sale
    105,850       1,803,253       39,801       1,966,485  
 Comprehensive loss
    (2,458,563 )     (6,703,507 )     (13,085,226 )     (10,857,604 )
 Net income (loss) attributable to non-controlling interests
    297,696       (621,312 )     (2,196,309 )     (1,175,916 )
 Foreign currency translation adjustments - non-controlling interests
    102,171       (38,086 )     139,465       24,587  
 Comprehensive loss attributable to CD International Enterprises, Inc.
    (2,858,430 )     (6,044,109 )     (11,028,382 )     (9,706,275 )
 Preferred stock dividend
    (20,130 )     (20,130 )     (40,260 )     (40,260 )
 Comprehensive loss attributable to common stockholders
  $ (2,878,560 )   $ (6,064,239 )   $ (11,068,642 )   $ (9,746,535 )
 Basic and diluted net loss per common share - basic:
                               
 Net loss from continuing operations
  $ (0.01 )   $ (0.12 )   $ (0.04 )   $ (0.16 )
 Net loss from discontinued operations
    (0.03 )     (0.03 )     (0.14 )     (0.06 )
          Net loss per common share
  $ (0.04 )   $ (0.15 )   $ (0.18 )   $ (0.22 )
 Basic and diluted net loss per common share - diluted:
                               
 Net loss from continuing operations
  $ (0.01 )   $ (0.12 )   $ (0.04 )   $ (0.16 )
 Net loss from discontinued operations
    (0.03 )     (0.03 )     (0.14 )     (0.06 )
          Net loss per common share
  $ (0.04 )   $ (0.15 )   $ (0.18 )   $ (0.22 )
 Basic weighted average common shares outstanding
    63,209,636       55,415,517       62,133,977       53,882,704  
 Diluted weighted average common shares outstanding
    63,209,636       55,415,517       62,133,977       53,882,704

Management Discussion and Analysis

Revenues

Revenues in the three months ended March 31, 2014 decreased by 26%, as compared to the three months ended March 31, 2013, primarily due to the decreased revenue of approximately $425,000 generated from our Mineral Trading segment, offset by an increase of approximately $233,000 in revenue generated from our consulting segment for provide consulting service to our clients in the three months ended March 31, 2014. Revenue in the six months ended March 31, 2014 decreased by 30%, as compared to the six months ended March 31, 2013, also primarily due to a decrease of approximately $600,000 in revenues generated from our Mineral Trading segment, offset by an increase of approximately $212,000 in revenue generated from our consulting segment during the comparable periods in fiscal year 2013.

Our Mineral Trading segment generated approximately $225,000 and $463,000 for the three and six months ended March 31, 2014, decreased by 65% and 56%, respectively, as compared to the same periods in 2013, primarily due to revenues decreased in our business in South America. We closed the business in Mexico operations after we finally sold the 11,000 metric tons of iron ore held in Mexico, priced at $233,000, to a local Mexican company due to that we could not receive the environmental permits and necessary export approvals in the first quarter of fiscal year 2013. Our operations in Chile experienced shipping delays due to a longer than expected timeframe to receive port authority approval to export the iron ore. In South America, we established new relationships with a supplier and are working with an engineering specialist to further strengthen our sourcing capabilities and a logistics provider to meet our inland transportation needs. In the fourth quarter of fiscal year 2013, CDII Minerals signed a purchase order with China-Base Ninbo Foreign Trade Co., Ltd. (“China Base”). China Base is a trading company located in Ningbo, China. Based on this agreement, China Base agreed to buy approximately 2,000 metric tons of iron ore from CDII Bolivia. CDII Minerals accomplished and fulfilled the contract with China- Base Ningbo Foreign Trade Co., Ltd. in March 2014.

Our Consulting segment revenues primarily consist of consulting and advisory service fees we received from certain publicly traded U.S. companies with their primary business operations located in the PRC. We receive a fixed number of shares of their marketable securities or fees from those client companies, including both recurring and one-time transaction fees for services provided to clients. Consulting segment revenues vary from period to period depending upon the timing, nature and scope of services we provide to a particular client and performance of our client companies' stock price. Our Consulting segment generated approximately $317,000 and $459,000 in revenues during the three and six months ended March 31, 2014, as compared to $84,000 and $246,000 during the three and six months ended March 31, 2013, primarily due to marketable securities received for services provided to new clients during the three months ended March 31, 2014.


Net Loss from Continuing Operations
 
Net loss from continuing operations for the three and six months ended March 31, 2014 amounted to $862,000 and $2.7 million, respectively, as compared to net loss of $6.5 million and $8.6 million for the three and six months ended at March 31, 2013. The loss for the three months ended March 31, 2014 consisted of approximately $1.2 million operating expenses and approximately $312,000 other income. The loss for the six months ended March 31, 2014 primarily consisted of approximately $2.0 million operating expenses and approximately $702,000 other expenses.


Discontinued Operations

During the fourth quarter of fiscal 2012, we discontinued the operations of Ruiming Magnesium, IMTC, Asia Magnesium, Baotou Changxin Magnesium, Chang Magnesium and Chang Trading, which were part of our Magnesium segment and also took an impairment charge for Chang Magnesium. In addition, in the fourth quarter of 2012, we discontinued our operations of CDI Jingkun Zinc and CDI Jixiang Metal which was part of our Mineral Trading segment. The loss from discontinued operations for the three and six months ended March 31, 2014 amounted to approximately $1.7 million and $11.1 million, respectively, as compared to a loss of $2.3 million and $4.2 million from discontinued operations for the three and six months ended March 31, 2013.


Net loss

Net loss for the three and six months ended March 31, 2014 amounted to $2.6 million and $13.8 million, as compared to net loss of approximately $8.9 million and $12.7 million for the three and six months ended March 31, 2013, respectively, primarily due to a decrease of $516,000 and an increase of $6.9 million in losses from discontinued operations for the three and six months ended March 31, 2014.


Tuesday, June 30, 2015

Comments & Business Outlook

DEERFIELD BEACH, Fla., June 30, 2015 /PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (OTC: CDII), a U.S.-based company that sources and distributes industrial commodities in China and the Americas and provides business and management corporate consulting services, announced today, CDI Shanghai Management Company, Ltd., a wholly owned subsidiary of CD International, has received authorization by Automation Division of Shanghai Electric Group Co., Ltd. ("Shanghai Electric Group") as a representative of business development in South America and Africa.

Shanghai Electric Group is a multinational power generation and electrical equipment manufacturing company headquartered in Shanghai, China. It has a long history, where one of its oldest subsidiaries was established before 1880. Shanghai Electric Group is engaged in the design, manufacture and sale of electrical industrial products including power generation equipment, power transmission and distribution equipment, transformers, switchgear, circuit breakers, transport equipment, machine tools, elevators, packaging and print machinery and environmental protection equipment.  It is the world's largest manufacturer of steam turbines.

Dr. James Wang, Chairman and CEO of CD International commented in regards to receiving the  authorization, "The authorization to be a representative by one of the major Chinese manufacturing giants is a milestone in growing our consulting business in South America.  Currently we are exploiting development of several projects with Automation Division of Shanghai Electric Group in the areas of construction of solar, wind and traditional power station in South American countries.  We believe our diverse presence throughout South America gives our partners and clients a unique advantage in commercial transactions we manage through our local expertise and business networks in each country. We are looking forward to closely working with Shanghai Electric Group to develop a variety of projects in South America.  We believe the successful development of a project will add substantial values for both  our Company and our shareholders "


Wednesday, June 17, 2015

Shareholder Letters

DEERFIELD BEACH, Fla., Jun. 15, 2015 /PRNewswire/ --CD International Enterprises, Inc. ("CD International") (OTC: CDII), a U.S.-based company that sources and distributes industrial commodities internationally and provides business and management corporate consulting services, issued a letter to shareholders from its Chairman and Chief Executive Officer, Dr. James Wang, which reads as follows:

Dear Fellow Shareholders:

With the completion and filing of our full year fiscal 2014 audited financials, we have taken the majority of steps necessary to regain compliance with our regulatory reporting requirements.  We anticipate the filing of the remaining quarterly financial statements to be made in the coming weeks to finally complete that process and set the stage for a new chapter in our Company's history.

For the past several years we have been working diligently to transition the Company from an owner of manufacturing operations in China to a service based organization that sources and distributes industrial commodities internationally and provides management corporate consulting services.  In this way we believe we are well positioned to leverage our managerial footprint in the U.S., China and the Americas while avoiding the need for significant capital expenditures.   In order to complete that transition, we exited all of our remaining manufacturing business in China beginning in 2013 and ending with the discontinuing of our magnesium production operations in 2014.  As these operations had been consistently losing money since the global financial crisis in 2008, management decided to exit all of these operations to focus on business services and other less capital intensive business opportunities.

With the completion of that transition, we are currently structured into two business segments.  Our Mineral Trading Segment sources and distributes industrial commodities to China, and our Consulting Segment provides business consulting services to companies that operate or are seeking business opportunities primarily in China and the Americas. 

In our consulting segment, we provide a suite of consulting services to clients who conduct business in China or seek to conduct business within China. We generate revenues by providing services in the areas of capital structure, strategic partnerships, mergers, acquisitions, translation services, managing and coordinating the process of obtaining necessary government approvals and licenses in China, as well as marketing and sales support. We tailor our suite of services to meet the specific needs of each individual client. A significant component of our competitive advantage lies in the quality of our personnel. Members of our team possess a strong working knowledge of the unique characteristics of business operations in the Americas and China. Our function is to provide the necessary resources for Chinese entities to invest in the Americas and entities from the Americas to invest in China.

Our Mineral Trading Segment is operated under our wholly owned U.S. subsidiary CDII Minerals, Inc., which was incorporated in 2010. CDII Minerals is strategically positioned throughout several countries in South America and has developed the foundation and relationship network to expand rapidly.  Over the past several years we have successfully purchased iron ore, tin ore, and copper concentrate in Ecuador, Bolivia and Chile and exported to China. Currently, we are working to expand our trading business in South America and are also evaluating other business opportunities with local companies to expand our South American presence.

In order to fulfill a niche market and add value through facilitating smooth international transactions, we have strategically positioned our Company as an intermediary between our suppliers in South America and our buyers in China.  Through a unique understanding of local business practices in each country, CDII Minerals arranges all required logistics and processing from the point of production through its final destination including the documentation and permits necessary to export and import the material.

As we move through the coming years we are excited to now have the Company in a position to leverage our core competencies unburdened by the capital intensive legacy manufacturing operations in China.  We have established a substantial business network in China and the Americas and our team is now actively seeking to monetize that network on several fronts:

First, our team has identified several acquisition candidates to accelerate revenue growth and build a solid base for the future.  Management is working diligently to complete at least one such acquisition prior to the end of calendar 2015.

Second, through working to bridge large Chinese investments into certain projects in the Americas we believe we have the opportunity to realize multiple potential "home-runs" to impact future revenue and earnings.

And third, the network we have established in Latin America has us poised to achieve substantial growth when mineral and industrial commodities markets rebound in the coming years.  Our diverse presence throughout Latin America gives our partners and clients a unique advantage in commercial transactions we manage through our local expertise and business networks in each country.,

In closing, I would like to thank each and every shareholder for their support.  We believe we have navigated through a tremendously challenging period for CD International over the past several years and we are now poised to move into a new growth phase.  We intend to work diligently to achieve that growth on all fronts to create substantial value for our shareholders for years to come.

Sincerely,
Dr. James Wang
CEO

About CD International Enterprises, Inc. 


Monday, June 15, 2015

Shareholder Letters

DEERFIELD BEACH, Fla., Jun. 15, 2015 /PRNewswire/ --CD International Enterprises, Inc. ("CD International") (OTC: CDII), a U.S.-based company that sources and distributes industrial commodities internationally and provides business and management corporate consulting services, issued a letter to shareholders from its Chairman and Chief Executive Officer, Dr. James Wang, which reads as follows:

Dear Fellow Shareholders:

With the completion and filing of our full year fiscal 2014 audited financials, we have taken the majority of steps necessary to regain compliance with our regulatory reporting requirements.  We anticipate the filing of the remaining quarterly financial statements to be made in the coming weeks to finally complete that process and set the stage for a new chapter in our Company's history.

For the past several years we have been working diligently to transition the Company from an owner of manufacturing operations in China to a service based organization that sources and distributes industrial commodities internationally and provides management corporate consulting services.  In this way we believe we are well positioned to leverage our managerial footprint in the U.S., China and the Americas while avoiding the need for significant capital expenditures.   In order to complete that transition, we exited all of our remaining manufacturing business in China beginning in 2013 and ending with the discontinuing of our magnesium production operations in 2014.  As these operations had been consistently losing money since the global financial crisis in 2008, management decided to exit all of these operations to focus on business services and other less capital intensive business opportunities.

With the completion of that transition, we are currently structured into two business segments.  Our Mineral Trading Segment sources and distributes industrial commodities to China, and our Consulting Segment provides business consulting services to companies that operate or are seeking business opportunities primarily in China and the Americas. 

In our consulting segment, we provide a suite of consulting services to clients who conduct business in Chinaor seek to conduct business within China. We generate revenues by providing services in the areas of capital structure, strategic partnerships, mergers, acquisitions, translation services, managing and coordinating the process of obtaining necessary government approvals and licenses in China, as well as marketing and sales support. We tailor our suite of services to meet the specific needs of each individual client. A significant component of our competitive advantage lies in the quality of our personnel. Members of our team possess a strong working knowledge of the unique characteristics of business operations in the Americas and China. Our function is to provide the necessary resources for Chinese entities to invest in the Americas and entities from the Americas to invest in China.

Our Mineral Trading Segment is operated under our wholly owned U.S. subsidiary CDII Minerals, Inc., which was incorporated in 2010. CDII Minerals is strategically positioned throughout several countries in South America and has developed the foundation and relationship network to expand rapidly.  Over the past several years we have successfully purchased iron ore, tin ore, and copper concentrate in EcuadorBolivia and Chileand exported to China. Currently, we are working to expand our trading business in South America and are also evaluating other business opportunities with local companies to expand our South American presence.

In order to fulfill a niche market and add value through facilitating smooth international transactions, we have strategically positioned our Company as an intermediary between our suppliers in South America and our buyers in China.  Through a unique understanding of local business practices in each country, CDII Minerals arranges all required logistics and processing from the point of production through its final destination including the documentation and permits necessary to export and import the material.

As we move through the coming years we are excited to now have the Company in a position to leverage our core competencies unburdened by the capital intensive legacy manufacturing operations in China.  We have established a substantial business network in China and the Americas and our team is now actively seeking to monetize that network on several fronts:

First, our team has identified several acquisition candidates to accelerate revenue growth and build a solid base for the future.  Management is working diligently to complete at least one such acquisition prior to the end of calendar 2015.

Second, through working to bridge large Chinese investments into certain projects in the Americas we believe we have the opportunity to realize multiple potential "home-runs" to impact future revenue and earnings.

And third, the network we have established in Latin America has us poised to achieve substantial growth when mineral and industrial commodities markets rebound in the coming years.  Our diverse presence throughoutLatin America gives our partners and clients a unique advantage in commercial transactions we manage through our local expertise and business networks in each country.,

In closing, I would like to thank each and every shareholder for their support.  We believe we have navigated through a tremendously challenging period for CD International over the past several years and we are now poised to move into a new growth phase.  We intend to work diligently to achieve that growth on all fronts to create substantial value for our shareholders for years to come.

Sincerely,
Dr. James Wang
CEO


Sunday, June 14, 2015

Comments & Business Outlook
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
For the fiscal years ended September 30, 2014 and 2013
 
             
   
For the Years Ended September 30,
 
   
2014
   
2013
 
 Revenues
  $ 1,714,538     $ 1,954,560  
 Cost of revenues
    1,036,690       1,941,114  
 Gross profit
    677,848       13,446  
 Operating expenses:
               
 Selling, general, and administrative
    5,257,019       4,664,712  
 Total operating expenses
    5,257,019       4,664,712  
 Operating loss
    (4,579,171 )     (4,651,266 )
 Other income (expenses):
               
 Other income
    77,604       454,759  
 Interest expenses
    (111,997 )     (362,968 )
 Interest expenses- related parties
    (102,133 )     (2,660 )
 Realized gain on marketable securities available-for-sale
    21,963       733,291  
 Loss on revaluation for receivable and payable of marketable securities available-for-sale
    (55,385 )     (8,063,303 )
 Change in fair value of derivative liability
    (449,788 )     256,635  
 Impairment loss on marketable securities available-for-sale
    -       (28,500 )
 Total other expenses
    (619,736 )     (7,012,746 )
 Loss from continuing operations before income taxes
    (5,198,907 )     (11,664,012 )
 Income tax expense
    -       -  
 Net loss from continuing operations
    (5,198,907 )     (11,664,012 )
 Discontinued operations:
               
 Loss from discontinued operations, net of taxes
    (14,986,899 )     (18,977,297 )
 Gain on disposal of subsidiaries, net of taxes
    33,949,995       3,687,776  
 Total income (loss) from discontinued operations, net of taxes
    18,963,096       (15,289,521 )
 Net income (loss)
    13,764,189       (26,953,533 )
 Less: Net loss attributable to non-controlling interests
    (2,738,685 )     (2,204,003 )
 Net income (loss) attributable to CD International Enterprises, Inc.
    16,502,874       (24,749,530 )
 Dividends on series A preferred stock
    (80,520 )     (80,520 )
 Net income (loss) allocable to common stockholders
  $ 16,422,354     $ (24,830,050 )
 COMPREHENSIVE INCOME (LOSS):
               
 Net income (loss)
  $ 13,764,189     $ (26,953,533 )
 Foreign currency translation adjustments
    (591,846 )     (667,714 )
 Unrealized gain (loss) on marketable securities available-for-sale
    (112,099 )     328,297  
 Comprehensive income (loss)
    13,060,244       (27,292,950 )
 Net income (loss) attributable to non-controlling interests
    (2,738,685 )     (2,204,003 )
 Foreign currency translation adjustments - non-controlling interests
    5,010       (127,138 )
 Comprehensive income (loss) attributable to CD International Enterprises, Inc.
    15,793,919       (24,961,809 )
 Preferred stock dividend
    (80,520 )     (80,520 )
 Comprehensive income (loss) attributable to common stockholders
  $ 15,713,399     $ (25,042,329 )
 Basic and diluted net income (loss) per common share - basic:
               
 Net loss from continuing operations
  $ (0.08 )   $ (0.21 )
 Net income (loss) from discontinued operations
    0.34       (0.24 )
          Net income (loss) per common share
  $ 0.26     $ (0.46 )
 Basic and diluted net income (loss) per common share - diluted:
               
 Net loss from continuing operations
  $ (0.08 )   $ (0.21 )
 Net income (loss) from discontinued operations
    0.34       (0.24 )
          Net income (loss) per common share
  $ 0.26     $ (0.45 )
 Basic weighted average common shares outstanding
    63,335,816       55,448,933  
 Diluted weighted average common shares outstanding
    63,335,816       55,448,933  

Management Discussion and Analysis

Revenues


Revenues in fiscal year 2014 decreased by 12%, as compared to fiscal year 2013, primarily due to downsizing of our Mineral Trading segment operations in South America and the decline of iron ore market price.

Our Mineral Trading segment generated approximately $800,000 revenue in fiscal year 2014, decreased by 49% as compared to fiscal year 2013, primarily due to decrease of revenues from our downsizing business in South America. In South America, we established new relationships with suppliers and are working with an engineering specialist to further strengthen our sourcing capabilities and logistics providers to meet our inland transportation needs. In the fourth quarter of fiscal year 2013, CDII Minerals signed a purchase order with China-Base Ninbo Foreign Trade Co., Ltd. (“China Base”). China Base is a trading company located in Ningbo, China. Based on this agreement, China Base agreed to buy approximately 2,000 metric tons of iron ore from CDII Bolivia. CDII Minerals accomplished and fulfilled the contract with China- Base Ningbo Foreign Trade Co., Ltd. in December 2013. In the fiscal year 2014, we sold 2,700 metric tons of iron ore and about 300 metric tons of copper from South America to China. Due to lack of working capital, in September 2014, we downsized operations of CDII Bolivia, all inventories were sold prior to the closing of the subsidiary.

Our Consulting segment revenues primarily consist of consulting and advisory service fees we received from certain publicly traded U.S. companies with their primary business operations located in the PRC. We receive a fixed number of shares of their marketable securities or fees from those client companies, including both recurring and one-time transaction fees for services provided to clients. Consulting segment revenues vary from period to period depending upon the timing, nature and scope of services we provide to a particular client and performance of our client companies' stock price. Our Consulting segment generated $915,000 in revenues during fiscal year 2014, as compared to $375,000 in fiscal year 2013, primarily due to consulting agreements signed with new clients such as Armco Metals Holdings, Inc., a public company listed on NYSE Market, offset by a decrease in fair market value of marketable securities we received as compensation for our consulting services, due to the declining value of our client companies' stock price, coupled with a reduction in scope of consulting and transactional services provided to the new clients during fiscal year 2014.


Net Loss from Continuing Operations


Net loss from continuing operations for fiscal year 2014 amounted to $5.2 million as compared to net loss of $11.7 million for fiscal year 2013. The loss for fiscal year 2014 was primarily due to $5.3 million of operating expenses.

Discontinued Operations


As described elsewhere in this report, on September 30, 2014, the Company entered into a share exchange agreement to dispose of its Magnesium segment as a result of the repositioning of the Company in view of the deterioration of operating results from the Magnesium segment. Results of operations, financial position and cash flows associated with the Magnesium segment, including the following subsidiaries, are separately reported as discontinued operations for all periods presented.


   · Asia Magnesium;

   · Beauty East;

   · Marvelous Honor;

   · Baotou Changxin Magnesium;

   · Lingshi Magnesium;

   · Ruiming Magnesium;

   · Chang Magnesium;

   · Chang Trading;

   . Golden Trust Magnesium; and

   · International Magnesium Trading Corporation;

In addition, in September 2013, we sold our interests in Golden Magnesium. Its results of operations, financial position and cash flows during fiscal year 2013 were reported as discontinued operations accordingly.


In April, 2015, we transferred our equity interests in CDI Jingkun Zinc and CDI Metal to Xiaowen Zhuang, a related party individual. We also sold 100% equity ownership in CDI Jixiang Metal to Dragon Capital Group Corp, a related party company. As a result, results of operations, financial position and cash flows associated with CDI Jingkun Zinc, CDI Metal and CDI Jixiang Metal are also reported as discontinued operations for all periods presented.


Total gain from discontinued operations amounted to $19.0 million in fiscal year 2014 and total loss from discontinued operations amounted to $15.3 million in fiscal year 2013. The gain was primarily due to a decrease of $4.0 million on loss from discontinued operations and an increase of $30.3 million on gain on disposal of magnesium subsidiaries in China in fiscal year 2014, as compared to fiscal year 2013.

Net Gain/Loss


Net gain for fiscal year 2014 amounted to $13.8 million, as compared to net loss of $27.0 million for fiscal year 2013, primarily due to a decrease of $6.5 million in net loss from continuing operations. We had approximately a loss of $55,000 on fair market value for receivable and payable of marketable securities available-for-sale in fiscal year 2014, a decrease of $8.0 million as compared to fiscal year 2013, and we also had a decrease of $4.0 million in losses from discontinued operations, together with an increase of $30.3 million from the gain on disposal of subsidiaries in fiscal year 2014.


Monday, June 1, 2015

Deal Flow

Item 1.01 Entry into a Material Definitive Agreement.


On May 28, 2015, China Direct Investments, Inc., a wholly owned subsidiary of CD International Enterprises, Inc( the “Company”), entered into Stock Purchase Agreements (the “Stock Purchase Agreements”) with four Chinese citizens, who were the original lenders in the Secured Promissory Notes between these four individuals and the Company dated August 21, 2012( the “Original Notes”). The four Original Notes were issued to these four Chinese citizens (collectively, the "Lenders") in an aggregate principle amount of $1,000,000 for value received. These promissory notes were due on February 29, 2013 and bear an interest rate of 12% per annum. As per the terms of the Stock Purchase Agreements, the Lenders agreed to convert the principle amount of the Original Notes into a total of 20,000,000 shares of the Company’s common stock at a purchase price of $0.05 per share, issuable on or before May 28, 2015.


Thursday, January 15, 2015

Comments & Business Outlook
CD INTERNATIONAL ENTERPRISES, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
For the fiscal years ended September 30, 2013 and 2012
 
             
   
For the Years Ended September 30,
 
   
2013
   
2012
 
Revenues   $ 1,954,560     $ 5,920,392  
Cost of revenues
    1,941,114       1,462,315  
Gross profit
    13,446       4,458,077  
                 
Operating expenses:
               
Selling, general, and administrative
    4,664,712       7,107,050  
Write-off of advance to suppliers
    -       3,998,269  
Impairment loss on prepayment for business acquisition
    -       11,944,594  
Total operating expenses
    4,664,712       23,049,913  
Operating loss
    (4,651,266 )     (18,591,836 )
Other income (expenses):
               
Other income
    454,759       281,256  
Interest expenses
    (362,968 )     (149,596 )
Interest expenses- related parties
    (2,660 )     (18,280 )
Realized gain (loss) on marketable securities available for sale
    733,291       (60,490 )
Gain (loss) on revaluation for receivable and payable of marketable securities available for sale
    (8,063,303 )     4,645,066  
Change in fair value of derivative liability
    256,635       (1,585,594 )
Impairment loss on marketable securities available for sale
    (28,500 )     (12,310,461 )
Total other expenses
    (7,012,746 )     (9,198,099 )
Loss from continuing operations before income taxes
    (11,664,012 )     (27,789,935 )
Income tax expense
    -       -  
Net loss from continuing operations
    (11,664,012 )     (27,789,935 )
                 
Discontinued operations:
               
Loss from discontinued operations, net of taxes
    (18,977,297 )     (92,973,563 )
Gain on disposal of subsidiaries
    3,687,776       29,968,537  
Total loss from discontinued operations, net of taxes
    (15,289,521 )     (63,005,026 )
Net loss
    (26,953,533 )     (90,794,961 )
Less: Net loss attributable to non-controlling interests
    (2,204,003 )     (40,429,154 )
Net loss attributable to CD International Enterprises, Inc.
    (24,749,530 )     (50,365,807 )
Dividends on series A preferred stock
    (80,520     (80,520 )
Net loss allocable to common stockholders
  $ (24,830,050 )   $ (50,446,327 )
                 
COMPREHENSIVE INCOME (LOSS):
               
Net loss
  $ (26,953,533 )   $ (90,794,961 )
Foreign currency translation adjustments
    (667,714 )     73,317  
Unrealized gain on marketable securities available for sale
    328,297       1,618,550  
Comprehensive loss
    (27,292,950 )     (89,249,728 )
Net loss attributable to non-controlling interests
    (2,204,003 )     (40,429,154 )
Foreign currency translation adjustments - non-controlling interests
    (127,138 )     61,272  
Comprehensive loss attributable to CD International Enterprises, Inc.
    (24,961,809 )     (48,881,846 )
Preferred stock dividend
    (80,520     (80,520
Comprehensive (loss) income attributable to common stockholders
  $ (25,042,329 )   $ (48,962,366 )
                 
Basic and diluted net (loss) income per common share
               
Net loss from continuing operations
  $ (0.21 )   $ (0.62 )
Net loss from discontinued operations
    (0.24 )     (0.50 )
         Net loss per common share
  $ (0.45 )   $ (1.12 )
Basic and diluted net (loss) income per common share - diluted:
               
Net loss from continuing operations
  $ (0.21 )   $ (0.62 )
Net loss from discontinued operations
    (0.24 )     (0.50 )
         Net loss per common share
  $ (0.45 )   $ (1.12 )
Basic weighted average common shares outstanding
    55,448,933       44,910,655  
Diluted weighted average common shares outstanding
    55,448,933       44,910,655

Management Discussion and Analysis

Revenues in fiscal year 2013 decreased by 67%, as compared to fiscal year 2012, primarily due to the cyclical nature of the consulting business and the decline of our client companies’ stock price, offset by an increase of approximately $1.2 million from our Basic Materials segment.

Our Basic Materials segment generated $1.6 million revenue in fiscal year 2013, increased by 373% as compared to fiscal year 2012, primarily due to revenues from our developing business in South America. In the first quarter of fiscal year 2013, our operations in Mexico sold 11,000 metric tons of iron ore, priced at $233,000, to a local Mexican company. Our operations in Chile experienced shipping delays due to a longer than expected timeframe to receive port authority approval to export the iron ore. One of our suppliers/exporters received port authority approval for shipment during the fourth quarter of fiscal year 2012. In the second quarter of fiscal year 2013, we sold 7,000 metric tons of iron ore and generated revenue of $417,000. In Bolivia, we established new relationships with a supplier and are working with an engineering specialist to further strengthen our sourcing capabilities and a logistics provider to meet our inland transportation needs. In the third quarter of 2013, we developed a new market in Ecuador and exported 3,430 metric tons iron to China and generated revenue of $422,726. In the fourth quarter of fiscal year 2013, CDII Minerals signed a purchase order with China-Base Ningo Foreign Trade Co., Ltd. (“China Base”). China Base is a trading company located in Ningbo, China. Based on this agreement, China Base agreed to buy approximately the amount of 2,000 metric tons iron ore from CDII Bolivia. CDII Bolivia accomplished and fulfilled the contract with China- Base Ningbo Foreign Trade Co., Ltd. in December 2013, and we are currently in the process of executing the second contract iron ore contract with China-Base.

Our Consulting segment revenues primarily consist of consulting and advisory service fees we received from certain publicly traded U.S. companies with their primary business operations located in the PRC. We receive a fixed number of shares of their marketable securities or fees from those client companies, including both recurring and one-time transaction fees for services provided to clients. Consulting segment revenues vary from period to period depending upon the timing, nature and scope of services we provide to a particular client and performance of our client companies' stock price. Our Consulting segment generated $375,000 in revenues during fiscal year 2013, as compared to $5.6 million in fiscal year 2012, primarily due to the decline of our client companies' stock price which had an negative impact on the fair market value of the marketable securities we received from our client companies as compensation for our consulting service, coupled with a reduction in scope of consulting and transactional services provided to the new clients during fiscal year 2013.


Net Loss from Continuing Operations

Net loss from continuing operations for fiscal year 2013 amounted to $11.7 million as compared to net loss of $27.8 million for fiscal year 2012. The loss for fiscal year 2013 was primarily due to $4.7 million of total operating expenses, and loss on revaluation for receivable and payable of marketable securities available-for sale of $8.1 million.


Wednesday, January 14, 2015

Comments & Business Outlook

Item 1.02    Termination of a Material Definitive Agreement.
 

Item 8.01    Other Events.
 
On January 8, CD International Enterprises, Inc. (the “Company”), EM Resources Enterprises, Inc., a Florida corporation (“EM”), and Manuel Mustafa (“Mustafa”), the President and sole owner of EM, elected not to proceed with and discontinued the merger between the Company and EM. The merger offered $2 million note payable within two years (the "Note") and 209,375 shares of CDII Series E Convertible Preferred Stock (the "CDII Shares") with a total market value of $13.4 million to Mr. Mustafa for exchange of 100% of the issued and outstanding capital stock of EM as described in the 8-K dated September 30, 2014 which the Company filed on October 8, 2014.


This agreement was terminated without penalty to the Company or EM pursuant to the Acquisition Termination Agreement (the “Termination Agreement”) between the parties dated January 8, 2015 as all party desires to terminate the Merger Agreements for mutual benefit. The Company will return all EM shares to Mr. Mustafa for cancelation of the Note and the CDII Shares issued. Mr. Mustafa will remain a consultant to the Company for ongoing and future projects


Friday, October 17, 2014

Disposal of Assets

Item 1.01 Entry into a Material Definitive Agreement.
Item 2.01 Completion of Acquisition or Disposition of Assets. 


On September 30, 2014,  CD International Enterprises, Inc. ( the "Company") entered into a Share Exchange Agreement with Yuwei Huang (the "Agreement") disposing the Company's magnesium segment. Pursuant to the terms of the Agreement, the Company sold its 51% ownership interest of Taiyuan Changxin Magnesium Co., Ltd.,  100% ownership interest of Taiyuan Changxin YiWei Trading Co., Ltd., 100% ownership interest of  Asia Magnesium Corporation Limited, 51% ownership interest of Baotou Changxin Magnesium Co., Ltd., 100% ownership interest of  International Magnesium Trading Corp., 80% ownership interest of  Taiyuan Ruiming Yiwei Magnesium Co., Ltd., 100% ownership interest of  Marvelous Honor Holdings Inc., 100% ownership interest of  Golden Trust Magnesium Industry Co., Ltd. and 100% ownership interest of  Lingshi Xinghai Magnesium Industry Co., Ltd.

Under the terms of the Agreement, as purchase price of the magnesium facilities, the Company shall cancel 8,325,949 shares of Mr. Huang's common stock held by different individuals related to Mr. Huang, and Mr. Huang's rights to receive 41,524 shares of Convertible Series D Preferred Stock (1:1000) convertible to 41,524,000 shares of common stock.

We are currently analyzing  the expected gain or loss related to the disposition of the magnesium facilities for fiscal 2014.


Investor Alert

Item 2.06 Material Impairments


On September 10, 2014, the Board of Directors of CD International Enterprises, Inc. ( the "Company") authorized the impairment of the Company's long-lived assets, including land use rights and intangible assets, in the magnesium segment. In addition to the asset impairments disclosed in the Company's 2012 Form 10-K, the Company currently owns majority interests in Taiyuan Ruiming Yiwei Magnesium Co., Ltd., Golden Trust Magnesium Industry Co., Ltd., and Lingshi Xinghai Magnesium Industry Co., Ltd., all companies organized under the laws of People's Republic of China operating in manufacturing of magnesium ingots and alloys. In the past two years, these magnesium facilities have been idle or in minimal production capacity due to insufficient material resources and restrictions of the Laws and Regulations of the PRC. The Board of Directors deem it not economically viable of these facilities to resume full production, and determined to be in the best interest of the Company to impair the long-lived assets of these facilities.

As a result of the foregoing, the Company will record an impairment of assets totaling approximately $32.4 million, including impairment of approximately $5.4 million in Taiyuan Ruiming assets, $11.3 million in Golden Trust assets, and $15.7 million in Lingshi Xinghai assets. The Company does not anticipate that such impairment charge will result in future cash expenditures by the Company relating to these magnesium facilities. The Company intends to sell these magnesium facility assets in the future.


Friday, September 19, 2014

Deal Flow

Item 1.01 Entry into a Material Definitive Agreement.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.


On September 12, 2014, CD International Enterprises, Inc. (the "Company") entered into Addendums to Promissory Notes for two Secured Promissory Note one dated February 14, 2013 for the principal amount of $300,000 due by December 31, 2013 and one dated September 30, 2013 for the principal amount of $30,000 due by September 30, 2014 (together refer to as the "Notes" )with our Chief Executive Officer Yuejian (James) Wang. Under the terms of the Addendums, the maturity date for the Notes may be extended to September 30, 2015 and the Company shall have the option to repay Dr. Wang the unpaid principal amounts of the Notes and accrued interest owed in (i) cash or (ii) shares of our common stock valued at $0.05 per share.

The foregoing descriptions of the Addendums to the Promissory Notes are qualified in their entirety by reference to these agreements which are filed as Exhibits 10.69, 10.70, 10.71 and 10.72, respectively.


Item 3.02  Unregistered Sales of Equity Securities.


On September 12, 2014, the Company's Board of Directors approved the issuance of 1,360,000 shares of our common stock, valued at 0.05 per share, to Ms. Qingchen Zhao, 510,400 shares of our common stock, valued at 0.05 per share, to Ms. Liang Xu, key employees of the Company, 72,000 shares of our common stock, valued at 0.05 per share, to Ms. Peisha Shen, key employees of the Company, and 42,000 shares of our common stock, valued at 0.05 per share, to Mr. Siqi Wu, key employees of the Company as repayment for salaries owed in years 2012 and 2013. The recipients were sophisticated investors who had access to business and financial information concerning the Company. The issuances were exempt from registration under the Securities Act of 1933, as amended, in reliance exemptions provided by Section 4(a)(2) of that act.


Thursday, August 7, 2014

Deal Flow

Item 1.01 Entry into a Material Definitive Agreement.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.


On July 30, 2014, CD International Enterprises, Inc. closed a Senior Secured Revolving Credit Facility Agreement (the “Credit Agreement”) with TCA Global Credit Master Fund, LP, a Cayman Islands limited partnership (“TCA”) which had an effective date of July 30, 2014. Pursuant to the Credit Agreement, TCA agreed to loan us up to a maximum of $5 million for working capital purposes. The initial credit line is $2,000,000 subject to funding in the discretion of TCA. In connection with the closing, an initial take down of $650,000 was funded by TCA. Any increase in the amount of the credit line from the initial amount up to the maximum amount is at the discretion of TCA.

The amounts borrowed pursuant to the Credit Agreement are evidenced by a Revolving Note (the “Revolving Note”) and the repayment of the Revolving Note is secured by a first position security interest in substantially all of our assets in favor of TCA as evidenced by a Security Agreement (the “Security Agreement”). The loan is additionally secured by the pledge of the stock of the Company’s operating subsidiaries. The initial Revolving Note in the amount of $650,000 is due and payable along with interest thereon on January 31, 2015, and bears interest at the rate of 10% per annum. TCA will collect in reserve an amount which is held in a lock box account equal to 20% of the revolving loan commitment on such date.

TCA may convert all or any portion of the outstanding principal, accrued and unpaid interest, and any other sums due and payable under the Revolving Note into shares of our common stock at a conversion price equal to 85% of the lowest daily volume weighted average price of our common stock during the five trading days immediately prior to such applicable conversion date, in each case subject to TCA not being able to beneficially own more than 4.99% of our outstanding common stock upon any conversion.

We have the right to prepay the Revolving Note, in whole or in part. If we prepay the Revolving Note in excess of 80% of the principal within 90 to 180 days prior to the maturity date of the note, we are obligated to pay TCA an amount for liquidated damages and for the costs of being prepared to make funds available under the Credit Agreement equal to 2.5% of the outstanding Revolving Note Commitment.

An event of default under the Credit Agreement as described in that agreement includes (i) any non-payment of the obligations, (ii) material misrepresentations by us in the Credit Agreement or any related document, (iii) a default by us of our obligations under the terms of the Credit Agreement or any other related agreement, (iv) a default by us under any other obligation, (v) a bankruptcy of our company or other assignment for the benefit of creditors, (vi) a judgment against us in excess of a specified amount, (vii) the occurrence of a “Material Adverse Effect” as described in the Credit Agreement, (vii) a change of control of our company, (viii) an impairment of any of the collateral we have pledged, (ix) a material adverse change in our financial condition or value of the collateral, or (x) a determination by TCA that the prospect for the repayment by us of the obligation is impaired. Upon the occurrence of an event of default under the Credit Agreement or the Revolving Note, all amounts become immediately due and payable.
 
We also agreed to pay TCA various fees during the term of the Credit Agreement, including (i) a commitment fee at closing of the 2% of the initial credit line commitment, (ii) an advisory fee of $100,000, payable in eight monthly installments starting December 31, 2014; (iii) facility fees consisting of our common stock equal to the $175,000; and (iv) asset monitoring and due diligence fees. In total, we paid $50,010 in cash fees, expenses and closing costs in connection with the closing and as such, netted $599,990 in connection with the closing. We also provided TCA with certain make whole rights with regard to our common stock used as fees or upon conversion of the convertible promissory notes.

During the term of the Credit Agreement, we are prohibited from (i) incurring any indebtedness, other than in connection with the Credit Agreement or as otherwise approved by TCA, (ii) making any new investments, (iii) creating any encumbrances on our assets, (iv) making any capital expenditures not in the ordinary course of business or without TCA’s prior consent, (v) permitting a change in control of our company, (vi) repurchase or redeeming any shares, or making any distributions, (vii) affecting any transactions with our affiliates or increasing the salary of our officers, and (vii) certain other actions as described in greater detail in the Credit Agreement.
 
The foregoing descriptions of the Credit Agreement, Revolving Note, Security Agreement and the subordination agreements are qualified in their entirety by reference to these agreements which are filed as Exhibits 10.1, 10.2, 10.3 and 10.4, respectively.


Item 3.02 Unregistered Sales of Equity Securities.


On July 30, 2014, we issued TCA 3,154,115 shares of our common stock valued at $0.06 representing a portion of the aforedescribed Commitment Shares. TCA is an accredited investor and the shares were issued in a private transaction exempt from registration under the Securities Act of 1933, as amended, in reliance on an exemption provided by Section 4(2) of that act.


Monday, April 21, 2014

Deal Flow

Item 8.01 Other Events.


On November 1, 2013 China Direct Investments, Inc. and CDI Shanghai Management Co., Ltd., both wholly owned subsidiaries of CD International Enterprises, Inc., entered into a Consulting Agreement with Armco Metals Holdings, Inc. (NYSE MTK: AMCO), pursuant to which we will provide a variety of consulting services to Armco Metals Holdings under the terms of an agreement which expires on October 31, 2014. As compensation for these services, we received 1,000,000 shares of Armco Metals Holdings common stock valued at approximately $400,000. We are responsible for the payment of our fees and costs which we may incur in rendering these services.


Monday, January 6, 2014

Auditor trail
Item 4.01                      Changes in Registrant’s Certifying Accountant.

On December 27, 2013, CD International Enterprises, Inc. informed HHC that it was terminating HHC as our independent registered public accounting firm effective immediately. While HHC had served as our independent registered public accounting firm since October 2013, it had never issued a report on our financial statements.  During the period of time that HHC served as our independent registered public accounting firm we had no disagreements with the firm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope of procedure which disagreement if not resolved to the satisfaction of HHC would have caused it to make reference to the subject matter of the disagreement in connection with any report it might issue.

On December 30, 2013 we engaged MaloneBailey LLP as our independent registered public accounting firm.  During our two most recent fiscal years and the subsequent interim period prior to retaining MaloneBailey LLP (1) neither we nor anyone on our behalf consulted MaloneBailey LLP regarding (a) either the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on our financial statements or (b) any matter that was the subject of a disagreement or a reportable event as set forth in Item 304(a)(1)(iv) and (v), respectively, of Regulation S-K, and (2) MaloneBailey LLP did not provide us with a written report or oral advice that they concluded was an important factor considered by us in reaching a decision as to accounting, auditing or financial reporting issue.


Friday, December 27, 2013

Deal Flow
 
On December 19, 2013 China Direct Investments, Inc. and CDI Shanghai Management Co., Ltd., both wholly owned subsidiaries of CD International Enterprises, Inc., entered into a Consulting Agreement with Armco Metals Holdings, Inc. (NYSE MTK: AMCO), pursuant to which we will provide a variety of consulting services to Armco Metals Holdings under the terms of an agreement which expires on October 31, 2014.  As compensation for these services, we received 1,000,000 shares of Armco Metals Holdings common stock valued at approximately $300,000.  We are responsible for the payment of our fees and costs which we may incur in rendering these services, as well as the payment of certain third party expenses of Armco Metals Holdings including audit fees, press release, transfer agent, insurance and listing fees, web and social network maintenance and EDGAR and XBRL fees.


Tuesday, May 21, 2013

Comments & Business Outlook
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
(Unaudited)
 
                         
   
For the Three Months ended March 31,
   
For the Six Months ended March 31,
 
   
2013
   
2012
   
2013
   
2012
 
Revenues:
                       
Revenues
  $ 16,967,151     $ 31,462,032     $ 33,753,368     $ 54,058,587  
Revenue-related parties
    5,439       23,568       -       570,999  
Total revenues
    16,972,590       31,485,600       33,753,368       54,629,586  
Cost of revenues
    16,327,448       25,470,017       33,052,413       43,392,778  
Gross profit
    645,142       6,015,583       700,955       11,236,808  
Operating expenses:
                               
Selling, general, and administrative
    (2,696,275 )     (2,395,972 )     (4,817,608 )     (4,980,743 )
Total operating expenses
    (2,696,275 )     (2,395,972 )     (4,817,608 )     (4,980,743 )
Operating (loss) income
    (2,051,133 )     3,619,611       (4,116,653 )     6,256,065  
Other income (expenses):
                               
Other income
    9,534       (50,897 )     153,540       487,673  
Interest income (expense)
    (255,549 )     81,355       (445,490 )     173,910  
Realized gain on available-for-sale marketable securities
    (13,686 )     (30,878 )     116,034       83,403  
Total other income (expenses)
    (259,700 )     (420 )     (175,916 )     744,986  
(Loss) income before income taxes
    (2,310,833 )     3,619,191       (4,292,569 )     7,001,051  
Income tax benefit (expense)
    (4,548 )     (1,600,076 )     92,304       (1,631,798 )
(Loss) income from continuing operations
    (2,315,381 )     2,019,115       (4,200,265 )     5,369,253  
Discontinued operations:
                               
Gain (loss) from discontinued operations, net of tax
    614,088       (56,981 )     237,603       (665,604 )
Net (loss) income
    (1,701,293 )     1,962,134       (3,962,662 )     4,703,649  
Net loss attributable to noncontrolling interests
    (210,253 )     47,454       111,717       436,646  
Net (loss) income attributable to CD International
    (1,911,546 )     2,009,588       (3,850,945 )     5,140,295  
Deduct dividends on Series A Preferred Stock
    (20,130 )     (20,130 )     (40,260 )     (40,260 )
Net (loss) income attributable to common stockholders
  $ (1,931,676 )   $ 1,989,458     $ (3,891,205 )   $ 5,100,035  
      -                          
COMPREHENSIVE (LOSS) INCOME:
    -                          
Net (loss) income
  $ (1,701,293 )   $ 1,962,134     $ (3,962,662 )   $ 4,703,649  
Foreign currency translation adjustments
    (83,693 )     (399,353 )     168,416       115,630  
Unrealized loss gains on available-for-sale securities
    1,230,866       (1,972,195 )     1,705,902       1,236,371  
Comprehensive (loss) income
    (554,120 )     (409,414 )     (2,088,343 )     6,055,650  
Net loss attributable to non-controlling interests
    (210,253 )     47,454       111,717       436,646  
Foreign currency translation adjustments - non-controlling interests
    (30,617 )     142,474       (32,159 )     89,543  
Comprehensive (loss) income attributable to CD International
    (794,990 )     (219,486 )     (2,008,785 )     6,581,839  
Preferred stock dividend
    (20,130 )     (20,130 )     (40,260 )     (40,260 )
Comprehensive (loss) income attributable to common stockholders
  $ (815,120 )   $ (239,616 )   $ (2,049,045 )   $ 6,541,579  
                                 
Basic and diluted net (loss) income per common share - basic:
                               
Net income (loss) from continuing operations
  $ (0.04 )   $ 0.05     $ (0.08 )   $ 0.14  
Net loss from discontinued operations
  $ 0.01     $ (0.00 )     -     $ (0.02 )
         Net Income (Loss) per Common Share
  $ (0.03 )   $ 0.05     $ (0.08 )   $ 0.12  
Basic and diluted net (loss) income per common share - diluted:
                               
Net income (loss) from continuing operations
  $ (0.04 )   $ 0.05     $ (0.08 )   $ 0.14  
Net loss from discontinued operations
  $ 0.01     $ (0.00 )   $ 0.00     $ (0.02 )
         Net Income (Loss) per Common Share
  $ (0.03 )   $ 0.05     $ (0.07 )   $ 0.12  
Basic weighted average common shares outstanding
    55,378,453       41,493,611       53,908,147       41,027,226  
Diluted weighted average common shares outstanding
    55,378,453       42,174,672       53,908,147       41,708,287  

Wednesday, October 10, 2012

Comments & Business Outlook

DEERFIELD BEACH, Fla., Oct. 10, 2012 /PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (OTCQB: CDII), a U.S. based company that produces, sources, and distributes industrial commodities in China and the Americas and provides business and financial corporate consulting services, announced today the sale of our 51% interest in CDI Beijing International Trading Co., Ltd., a PRC company ("CDI Beijing") pursuant to the terms of an Equity Transfer Agreement for approximately $1.6 million. The sale of CDI Beijing will enable us to focus our operations in China solely on its magnesium production and distribution operations.

CD International acquired its stake in CDI Beijing in 2008 for approximately $1.5 million.  Under the terms of the October 8, 2012 Equity Transfer Agreement, Mr. Huijuan Chen, Vice President and a minority owner of CDI Beijing, acquired our 51% interest in CDI Beijing.  The purchase price of $1.6 million, comprised of cash and other consideration, is payable in five installments over a four year period from September 30, 2012 to September 30, 2016, with 9% per annum interest accruing on the residual payments beginning on October 1, 2012 and payable on the final installment. The Equity Transfer Agreement and a further description of that agreement is contained in our October 9, 2012 Form 8-K filed with the Securities and Exchange Commission. CDI Beijing recorded revenue of less than $1 million for the first nine months of fiscal 2012 and we anticipate this disposition will result in a negligible loss.

Commenting on the sale, Dr. James Wang, Chairman and CEO of CD International, stated, "We are pleased to complete the sale of CDI Beijing which will allow us to focus all of our operational efforts in China on our magnesium segment.  We believe that magnesium production and distribution as a pure play in China will be a much more valuable asset to our company in the future as we look to solidify a leading position in this industry.  We intend to continue on our geographic diversification plan by building our commodities distribution operations South America and focusing our U.S. based efforts on corporate management and consulting. We believe that by effectively growing these clearly defined operations, we can maximize the value of our operations in a number of strategic ways for the benefit of our company and its stockholders."


Tuesday, October 9, 2012

Comments & Business Outlook

DEERFIELD BEACH, FL--(Marketwire - Oct 8, 2012) - CD International Enterprises, Inc. ("CD International") (OTCQB: CDII), a U.S. based company that produces, sources, and distributes industrial commodities in China and the Americas and provides business and financial corporate consulting services, announced today the sale of our 51% interest in Shanghai Lang Chemical Co., Ltd., a PRC company ("Lang Chemical") for $1.2 million as part of management's strategic plan to focus our operations in China on magnesium production and distribution.

CD International acquired its stake in Lang Chemical in 2006 for approximately $700,000. Under the terms of the September 28, 2012 Equity Transfer Agreement, Black Stone Chemical Limited purchased 2% of CD International's interest in Lang Chemical and Mr. Jingdong Chen, CEO of Lang Chemical, and his wife Ms. Qian Zhu purchased the remaining 49% interest for an aggregate purchase price of $1,221,532. Of this amount $600,000 was tendered at closing and the balance is payable over one year at an annual interest rate of 6%. Management intends to focus CD International's industrial efforts in China solely on the production and distribution of pure magnesium through its current magnesium production facilities within our magnesium segment. 

Commenting on the sale, Dr. James Wang, Chairman and CEO of CD International, stated, "As we enter fiscal 2013 management is focused on executing our strategic plan of geographic diversification and clear definition of our business segments. We believe that by clearly defining our magnesium operations as our China based business, commodities distribution as our business in South America, and our consulting services in the U.S., we can have more flexibility to maximize the value of our company. We are dedicated to building each of our segments for future growth and position our businesses to provide the greatest possible return for our company and its shareholders."

We anticipate this disposition will result in a loss of approximately $1 million in the fourth quarter of fiscal 2012 based on the current carrying value of our 51% equity interest in Lang Chemical on our balance sheet.


Tuesday, July 10, 2012

Investor Alert

DEERFIELD BEACH, FL--(Marketwire - Jul 10, 2012) -  CD International Enterprises, Inc. ("CD International") (NASDAQ: CDII), a U.S.-based company that produces, sources, and distributes industrial commodities in China and the Americas and provides business and financial corporate consulting services, announced today that its common stock will begin trading on the OTCQB Marketplace, under its current symbol "CDII" effective July11, 2012.

OTC Markets Group Inc. operates the world's largest electronic marketplace for broker-dealers to trade stocks not listed on a major exchange. The OTCQB is a market tier for OTC traded companies that are registered and reporting with the Securities and Exchange Commission. According to 2011 year-end market statistics published by OTC Markets Group Inc., there were 3,625 companies listed on the OTCQB with a total market capitalization of approximately $152 billion. Investors will be able to view real time stock quotes for CD International at http://www.otcmarkets.com under the ticker symbol CDII.

The transition to the OTCQB Marketplace comes after the ASDAQ Listing Qualifications Panel notified CD International on July 9, 2012 that the Panel has determined to delist CD International's common stock from the NASDAQ Global Market based on public interest concerns and will suspend trading of the stock effective at the open of trading on Wednesday, July 11, 2012.

The transition to the OTCQB Marketplace does not change CD International's obligation to file periodic and other reports with the Securities and Exchange Commission under applicable federal securities laws. In addition, the transition of CD International's stock to the OTCQB Marketplace will have no effect on CD International's shares or its shareholders ability to trade shares of CD International's stock. 

"While we disagree with the decision of the panel, we believe our stock's change in trading platform will not deter management and our whole team from achieving our goal of becoming the industry leader in the production and distribution of pure magnesium," stated Dr. James Wang, Chairman and CEO of CD International. "We remain committed to advancing our commodities distribution business as we look to reduce corporate expenditures to further improve our overall financial performance. We also intend to explore every alternative available to us to maximize future shareholder value."


Friday, May 11, 2012

Comments & Business Outlook

Second Quarter 2012 Results

  • For the second quarter of fiscal 2012, total revenues were $41.9 million, this compares to revenues of $42.3 million second quarter of fiscal 2011.
  • Our operations resulted in net income of $0.05 per basic and diluted share in the second quarter of fiscal 2012 on 41.5 million basic weighted average shares and 42.2 million diluted weighted average shares outstanding. This compares to a net loss of $(0.00) per basic and diluted share in the second quarter of fiscal 2011 on 34.7 million basic and diluted weighted average shares outstanding.

Commenting on our results for the second quarter of fiscal 2012, Dr. James Wang, Chairman and CEO of CD International, stated, "We are pleased with the overall performance of our operations thus far in fiscal 2012. With the completion of our two magnesium acquisitions now behind us, we believe we are poised to experience significant future growth in this segment as the market continues to solidify. While we face a number of challenges for our business, we are confident that we will emerge as a stronger organization, delivering future growth for the benefit of our stockholders."


Tuesday, May 1, 2012

Investor Alert
 
Other Events.

As previously disclosed in a Current Report of Form 8-K filed on April 27, 2012, on April 23, 2012, the Staff of The NASDAQ Stock Market LLC issued a letter to CD International Enterprises, Inc. (the “Company”) advising that it had determined to initiate proceedings to delist the Company’s securities from The NASDAQ Stock Market. Accordingly, on April 30, 2012, the Company requested a hearing before a NASDAQ Listing Qualifications Panel (the “Panel”) at which it intends to address each of the Staff’s allegations and request continued listing on The NASDAQ Stock Market.  NASDAQ has advised the Company that the hearing will be held on June 14, 2012, and that the delisting action will be stayed and the Company’s listing will continue pending the issuance of a final decision by the Panel following the hearing. NASDAQ generally advises issuers that the Panel intends to issue its decision in up to 30 calendar days following the hearing date. No assurance can be given that the Panel will grant the Company’s request for continued listing.
 

Tuesday, March 6, 2012

Acquisition Activity

DEERFIELD BEACH, Fla., March 6, 2012 /PRNewswire/ -- CD International Enterprises, Inc. ("CD International") (NASDAQ: CDII), a U.S. based company that produces, sources, and distributes industrial commodities in China and the Americas and provides cross border corporate advisory services, announced today the results of a special shareholder meeting held on February 29, 2012.  Following the February 29, 2012 special meeting of shareholders approving the issuance of our common stock with approximately 96% of the votes cast, CD International completed the acquisition of 100% of Golden Trust Magnesium Industry Co., Ltd. "Golden Trust" and 80% of Lingshi Xinghai Magnesium Industry Co., Ltd. "Lingshi Magnesium" for an aggregate of $26.7 million payable by a combination of $6.5 million in cash or assignment of intercompany loans, $15.5 million in shares of our common stock, and $4.7 million by way of transferring our interest in our Excel Rise Technology Co., Ltd. subsidiary. In addition, our shareholders approved an amendment to our articles of incorporation to change our corporate name from China Direct Industries, Inc. to CD International Enterprises, Inc.

Golden Trust and Lingshi Magnesium are both engaged in the production of pure magnesium ingots.  CD International adds approximately 20,000 metric tons of annual production capacity from Golden Trust and 12,000 metric tons of annual production capacity from Lingshi Magnesium, bringing our total magnesium production capacity to approximately 90,000 metric tons, making us one of the largest magnesium producers in the world. In conjunction with the acquisition of Golden Trust and Lingshi Magnesium, we entered into a Management Agreement with Yuwei Huang and Kong Tung, members of our Board of Directors, to consolidate and manage the business operations for all of our magnesium production facilities.     

Commenting on the results of the special shareholder meeting, Dr. James Wang, Chairman and CEO of CD International, stated "We are pleased that our shareholders have overwhelmingly voted to allow us to complete the acquisitions as well as our new corporate name to reflect our business direction.  With the addition of Golden Trust and Lingshi Magnesium, we expect to benefit from a more streamlined organization, improving our overall cost structure and positioning our company to become the industry leader in pure magnesium production and distribution.  We expect to see a strong improvement in performance out of this segment in the coming quarters as we generate significantly larger sales opportunities, ramp revenue and improve cash flow and profitability for fiscal 2012 and beyond."


Wednesday, February 15, 2012

Comments & Business Outlook

First Quarter 2012 Results

For the first quarter of fiscal 2012, total revenues reached $36.9 million with net income attributable to common stockholders of $3.1 million. This resulted in net income of $0.08 per basic and diluted share on 40.6 million basic weighted average shares and 41.1 million diluted weighted average shares. This compares to revenues of $45.8 million with net income attributable to common stockholders of $3.4 million recorded in the first quarter of fiscal 2011. Net income per basic and diluted share in the first quarter of fiscal 2011 was $0.11 on 31.8 million basic and diluted weighted average shares.

While we experienced some softness in magnesium demand toward the end of calendar 2011, prices have stabilized in the beginning of calendar 2012 and magnesium prices are significantly higher than in the early part of fiscal 2011. Management continues to believe that we have positioned our company to take a major step forward in this segment in 2012 through our magnesium consolidation plan as well as through our use of cleaner more efficient waste gas. We anticipate that overall supply in China will be constricted later in fiscal 2012 and into fiscal 2013, as competitors using coal for fuel remain under pressure from environmental regulations and higher energy costs. We have also begun to ramp our efforts in our industrial commodities business which we anticipate will lead to progressive revenue growth throughout fiscal 2012 as we have cleared regulatory hurdles in Mexico and South America to deliver commodities on a continuous basis into China. We believe our corporate repositioning to emphasize the international expansion of our business will strengthen our business and broaden our exposure to the investment community in the quarters and years to come. We continue to anticipate an improvement in our performance in fiscal 2012 as we continue to build our company for the future. We will further discuss our operating results as well as our outlook for fiscal 2012 during the conference call today

Our Outlook

During the first quarter of fiscal 2012, the overall economic environment continued to improve, but certain segments of our business, primarily our Basic Materials segment, and to some extent our Magnesium segment, struggled with slower customer demand and a declining trend in prices due to tightened credit conditions in China impacting customer financing needs to purchase our products as well as domestic competitors in the magnesium industry liquidating inventories to raise cash balances prior to calendar 2011 year end. However, we still face a number of challenges in continuing the growth of our business, which is primarily tied to the overall health of the global economy. For the remaining quarters in fiscal 2012, we plan to continue adding our magnesium production capacity internally and through the planned strategic acquisitions of Golden Trust and Lingshi Xinghai Magnesium which have a combined production capacity of 32,000 metric tons per year in anticipation of improving markets in the coming years. We also intend to realign our investments in our Basic Material segment as we shift our business focus to the expansion of our industrial commodities sourcing and distribution business in the Americas. We have deployed approximately $3.3 million in the Americas as of the end of the first quarter of fiscal 2012 to begin to meet current market demand.

China’s Gross Domestic Product growth rate slowed to approximately 8.9% in the quarter ending December 31, 2011 as compared to the same period in 2010, the lowest rate within the last two years as the European debt crisis and weaker demand has put the global economic recovery in jeopardy and pushed China’s export-driven manufacturing activities to its lowest levels in the past three years. Furthermore, China’s housing market and particularly its real estate construction market experienced a significant correction due to a tighter regulatory environment, bank lending curbs, and slower demand during the fiscal period. In response to this slowdown, China’s Central Bank cut the nation’s commercial banks’ reserve requirement ratio by 0.5 percentage point, the first such cut since December 2008, in order to provide additional liquidity for commercial lending. This represents a significant shift in China’s economic policy signaling that China has put economic growth at the top of its agenda, rather than concerns about inflation.


Monday, January 23, 2012

Shareholder Letters

Dear Fellow Shareholders:

As we begin this New Year, I would like to thank each and every shareholder for your continued support and to extend our best wishes to you for a very happy and prosperous 2012. Over the course of this past year our company has achieved a great deal that will help us set the stage for future growth in fiscal 2012 and beyond. We have built a solid foundation for our company to enable us to move forward with our transformation into a truly global organization. In an effort to reflect this exciting global focus for our future, our board of directors has approved changing our corporate name to CD International Enterprises which we will adopt effective January 23, 2012. Our whole team is dedicated to our global effort and we intend to work diligently to make our company a vibrant and growing organization with a geographically diversified revenue base for the benefit of our shareholders.

As we move forward into our exciting future I think it is important to look back at the steps we have taken over the past two fiscal years as well as our future plans to position our company for this exciting new chapter in our corporate history. Full Story


Thursday, January 12, 2012

CFO Trail
Effective January 6, 2012, Hernan Grant Welch, was appointed as Executive Vice President and Chief Financial Officer of China Direct Industries, Inc.’s ("we”, "us” or “our”). Mr. Welch, age 62, has served as our Vice President of Finance and SEC Reporting since October, 2011. For over the past 30 years, Mr. Welch has been a certified public accountant working in international finance and auditing for both public companies and major auditing firms. Mr. Welch’s recent public company experience includes serving from 2007 to 2009 as Director of SEC reporting and SOX compliance for Core-Mark International, a NASDAQ listed international logistics services and distribution company. Prior to his position at Core-Mark, Mr. Welch was the Director of Financial Accounting and SEC reporting from for Longview Fibre Company, a public company engaged in forestry management and operations from 2006 until its privatization in 2007. Mr. Welch served as Director of Financial Reporting for Iowa Telecom from 2004 to 2006, where he helped manage the financial reporting process for the company’s initial public offering and listing on the NYSE. From 2002 to 2004, Mr. Welch was Director of Finance and SEC Reporting for Accuimage Diagnostics, Inc., a medical diagnostic software company serving multinational clients in the U.S., Europe and Asia. Mr. Welch assisted in the financial preparation for the sale of Accuimage to Merge Diagnostics which took place in January 2005. From 1999 to 2002, Mr. Welch was Vice President and SEC Reporting Director of Equus Entertainment, Inc., a NASDAQ listed entertainment, gaming and real estate company, serving multinational locations in the Caribbean and Latin America.

Wednesday, December 28, 2011

Contract Awards

DEERFIELD BEACH, Fla., Dec. 28, 2011 /PRNewswire/ -- China Direct Industries, Inc. ("China Direct Industries") (NASDAQ:CDII), a U.S. based company that produces, sources, and distributes industrial commodities in China and the Americas and provides cross border corporate advisory services announced today that its magnesium segment operations received five new purchase contracts from existing customers, including major Fortune 500 companies, valued at approximately $11.0 million in December of 2011 for delivery over the next six months.   

Commenting on the contracts, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated "We are pleased to see an increase in orders and quoting activity as we head into calendar 2012.  We believe that our magnesium segment will strengthen further throughout the coming year as economic conditions which weakened short term demand begin to abate."


Friday, December 23, 2011

Comments & Business Outlook

Financial results for the fiscal year ended September 30, 2011.

DEERFIELD BEACH, FL--(Marketwire - Dec 22, 2011) - China Direct Industries, Inc. ("China Direct Industries") (NASDAQ: CDII), a U.S. based company that sources, produces and distributes industrial products in China and the Americas in two core business segments, announced today its financial results for the fiscal year ended September 30, 2011.

  • Revenue reaches $187.8 million up 66.6% from fiscal 2010
  • Net income attributable to China Direct Industries rises to $9.3 million up from a loss of ($3.2 million) in fiscal 2010
  • Diluted EPS climbs to $0.25 compared to a loss of ($0.11) in fiscal 2010

We experienced significant growth across all of our business segments reflecting stronger demand in the end markets we service as well as revenue contribution from our Ruiming Magnesium acquisition, our consulting segment and our international commodities business.

The overall environment in our various segments strengthened throughout fiscal 2011 and we now look to build on our momentum in fiscal 2012. While we experienced some cyclical softness in magnesium demand toward the end of calendar 2011, we entered fiscal 2012 with magnesium prices significantly higher than in the early part of fiscal 2011. Management believes that we have positioned our company to take a major step forward in this segment in 2012 through our planned acquisitions as well as through our use of cleaner more efficient waste gas. We anticipate that overall supply in China will be constricted later in fiscal 2012 and into fiscal 2013, as competitors using coal for fuel remain under pressure from environmental regulations and energy costs. We are also confident that our efforts in our industrial commodities business will lead to progressive revenue growth throughout fiscal 2012 as we have cleared regulatory hurdles in Mexico and South America to deliver commodities on a continuous basis into China. Through this business, along with our consulting and magnesium operations, we enter fiscal 2012, poised to build a more global company with revenue streams in China as well as the Americas. We intend to evaluate additional opportunities in the U.S. and abroad to further diversify our revenue base geographically. We anticipate an improvement in our performance in fiscal 2012 as we continue to build our company for the future. "


Wednesday, December 14, 2011

Investor Alert

DEERFIELD BEACH, Fla., Dec. 14, 2011 /PRNewswire/ -- China Direct Industries, Inc. (the "Company") (NASDAQ: CDII), a U.S. based company that sources, produces and distributes industrial products in China and the Americas in two core business segments, announced today that it received a letter from the Nasdaq OMX Group on December 12, 2011 indicating that the Company no longer meets the minimum bid price requirement for continued listing set forth in Nasdaq Marketplace Rule 5450(a)(1). The letter gives China Direct Industries notice that bid price of the Company's common stock has closed under $1.00 for the last 30 business days.

The Nasdaq notice has no effect on the listing of the Company's common stock at this time.  Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has an initial period of 180 calendar days, or until June 11, 2012, to regain compliance. The letter states the Nasdaq staff will provide written notification that the Company has achieved compliance with Rule 5450(a)(1) if at any time before June 11, 2012, the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days.


Wednesday, September 7, 2011

Acquisition Activity

DEERFIELD BEACH, Fla., Sept. 7, 2011 /PRNewswire/ -- China Direct Industries, Inc. ("China Direct Industries") (NASDAQ: CDII), a U.S. based company that sources, produces and distributes industrial products in China and the Americas in two core business segments, announced today that it has entered into a series of agreements to acquire a 100% ownership interest in Golden Trust Magnesium Industry Co., Ltd. ("Golden Trust") and an 80% ownership interest in Lingshi Xinghai Magnesium Industry Co., Ltd. ("Lingshi Magnesium").  The acquisitions are part of management's ongoing plan to further consolidate its magnesium holdings as well as acquire additional facilities owned in whole or in part by Mr. Yuwei Huang, a member of the board of directors of China Direct Industries.  

Under the terms of the agreements China Direct Industries will issue up to 18.2 million shares of its common stock, transfer its $4.7 million interest in its subsidiary Excel Rise Technology Co., Ltd., and pay $4.8 million in cash or through the repayment of one of its intercompany loans to make the acquisitions in a deal totaling approximately $26.7 million.  Closing of the acquisitions is conditioned upon (i) approval of the issuance of the common stock constituting the stock consideration provided for in the agreements to acquire these companies  and in accordance with NASDAQ Market Place Rules and Regulations;  (ii) the absence of any order or injunction of a court of competent jurisdiction that prohibits the consummation of the acquisitions, (iii) the absence of certain governmental restraints, and (iv) the accuracy of the representations and warranties of each party. A summary of the agreements is provided in a Form 8-K China Direct Industries filed with the Securities and Exchange Commission on September 6, 2011. More


Monday, August 22, 2011

Analyst Reports

Rodman and Renshaw on CDII                        8/22/2011

CDII: 3Q FY11 Earnings Update

3Q FY11 Results: CDII reported its 3Q FY11 results (period ended June 30, 2011) of $57.0 MM in revenue, $4.3 MM of net income (after preferred stock dividends), and $011 in diluted EPS. Total revenue grew by 78.5% y-o-y and 34.9% sequentially. The company reported a gross margin of 13.3%, higher than 2Q FY11’s 7.6%, driven by larger contribution from the consulting segment, which bears a higher gross margin of 48.4%. For the bottom line, CDII delivered a net income of $4.29 MM (after preferred stock dividends), or $0.11 per diluted share, compared to net loss of $1.10 MM and $0.04 per diluted share a year ago. The company ended the quarter with cash balance of $10.26 MM and working capital of $55.5 MM.

Revenue Mix: During the quarter, Magnesium segment generated $25.0 MM in revenue, accounting for 44% of total revenue, while basic materials and consulting segments contributed $20.2 MM and $11.8 MM, or 35% and 21% of total. CDII shipped a total of 9,049 tons of magnesium products including ingot and powder, growing by 43.1% y-o-y from 5,967 tons in shipment a year ago but down 1.6% sequentially. ASP increased 15.2% y-o-y from $2,400/ton to $2,765.3/ton this quarter, compared to a 17.4% y-o-y increase in average cost per ton, which was up from $2,297/ton to $2,696/ton. Basic material business posted a 19.2% y-o-y growth from $16.9 MM to $20.2 MM this quarter. Consulting revenue reached $11.8 MM, up from $0.68 MM a year ago driven by fee revenue from two new clients.

Consulting Segment Accounts for 76% of Total Gross Profit: Although Magnesium and Basic Materials are the main revenue drivers for CDII, the majority of profit is generated from Consulting business, which recorded $5.7 MM in gross profit.

Selling 51% of Shanxi Pan Asia Magnesium for $3 MM Cash: CDII announced that it will sell 51% stake in one of its magnesium subsidiaries, Shanxi Pan Asia Magnesium Company to Bloomgain Investment, a BVI company for $3.05 MM cash.

Guidance Raised: Management raised its revenue guidance from previously announced $180 MM ~ $200 MM to at least $200 MM, with net income guidance unchanged at $12 MM.

Revising Estimates: We are raising our estimates for 4Q FY11 to $55.4 MM for top-line, $2.5 MM for bottom-line, and $0.06 for EPS. For full year FY11 and FY12, our projections are $200.5 MM and $241.8 MM for revenues, $9.5 MM and $11.5 MM for bottom-line, and $0.27 and $0.29 for EPS, respectively.

Valuation: The stock is currently trading at ~3.5x and ~3.2x to our FY11 and FY12 earnings estimates, compared to ~12.1x and ~10.4x for metals & mining peers listed in the US and ~37x and ~30x for peers listed in China. On Price-to-Sales, the company is trading at ~0.18x and ~0.15x to our FY11 and FY12 sales estimates, compared to ~3.6x for China listed comparables and ~1.9x for US listed comparables.


Notice Regarding Privacy and Confidentiality:


This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

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Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

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Rodman & Renshaw, LLC reserves the right to monitor and review the content of all e-mail communications sent and/or received by its employees.

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

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Wednesday, August 17, 2011

Comments & Business Outlook

CHINA DIRECT INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
   
For the three months ended June 30,
   
For the nine months ended June 30,
 
   
2011
   
2010
   
2011
   
2010
 
                         
Revenues
  $ 55,154,956     $ 29,987,583     $ 141,588,028     $ 71,021,737  
Revenues-related parties
    1,860,644       1,956,931       3,465,187       6,545,831  
     Total revenues
    57,015,600       31,944,514       145,053,215       77,567,568  
Cost of revenues
    49,457,823       29,984,123       127,739,204       71,788,808  
     Gross profit
    7,557,777       1,960,391       17,314,011       5,778,760  
                                 
Operating income (expenses):
                               
   Selling, general, and administrative
    3,006,256       3,304,123       9,821,167       8,566,932  
   Other operating income-related party
    (3,919 )     -       (106,791 )     -  
   Other operating expense (income)
    1,180       -       (354,018 )     -  
       Operating income (expenses)
    4,554,260       (1,343,732 )     7,953,653       (2,788,172 )
Other (expenses) income:
                               
   Other (expense) income:
    (178,469 )     (43,961 )     86,892       4,524  
   Interest (expense) income
    (119,025 )     37,332       (186,069 )     40,944  
   Realized income (loss) on investment securities available for sale
    -       33,155       (379,969 )     2,134,344  
       Total other (expenses) income
    (297,494 )     26,526       (479,146 )     2,179,812  
        Income (loss) from continuing operations before income taxes
    4,256,766       (1,317,206 )     7,474,507       (608,360 )
   Income tax expense
    (53,078 )     (7,378 )     (120,719 )     (62,302 )
       Net income (loss)
    4,203,688       (1,324,584 )     7,353,788       (670,662 )
   Net (income) loss attributable to noncontrolling interests-continuing operations
    102,870       240,167       424,981       258,913  
      Net income (loss) attributable to China Direct Industries
  $ 4,306,558     $ (1,084,417 )   $ 7,778,769     $ (411,749 )
                                 
Deduct dividends on Series A Preferred Stock:
                               
   Preferred stock dividend
    (20,130 )     (20,125 )     (60,390 )     (80,433 )
   Deemed dividend - beneficial conversion feature
    -       -       (600,693 )     -  
   Dividend - warrant valuation
    -       -       (76,705 )     -  
      Net income attributable to common stockholders
  $ 4,286,428     $ (1,104,542 )   $ 7,040,981     $ (492,182 )
                                 
Basic and diluted income per common share
                               
   Basic
  $ 0.11     $ (0.04 )   $ 0.20     $ (0.02 )
   Diluted
  $ 0.11     $ (0.04 )   $ 0.20     $ (0.02 )
   Basic weighted average common shares outstanding
    37,567,331       28,828,887       34,694,215       28,940,495  
   Diluted weighted average common shares outstanding
    38,250,045       28,828,887       34,818,040       28,940,495  

Thursday, August 11, 2011

Deal Flow

DEERFIELD BEACH, Fla., Aug. 11, 2011 /PRNewswire/ -- China Direct Industries, Inc. ("China Direct Industries") (NASDAQ: CDII), a U.S. based company that sources, produces and distributes industrial products in China and the Americas in two core business segments, announced today that as of August 8, 2011 it has entered into a definitive agreement to sell its 51% stake in Shanxi Pan Asia Magnesium Company ("Pan Asia") for $3.05 million in cash to Bloomgain Investment Company, Ltd. ("Bloomgain"), a privately held British Virgin Island company.


Wednesday, June 29, 2011

Comments & Business Outlook
Deerfield Beach, FL – June 29, 2011 - China Direct Industries, Inc. ("China Direct Industries") (NASDAQ:CDII), a U.S. based holding company with operations in China and the Americas, focusing on pure magnesium production, distribution of basic materials and metal ores, and cross-border corporate advisory services, announced today that it anticipates its wholly owned subsidiary, CDII Trading, will commence iron ore shipments from Bolivia into China beginning in the fourth quarter of fiscal 2011 ending September 30, 2011.
 
Management estimates that CDII Trading will ship in excess of 85,000 metric tons of iron ore in the fiscal fourth quarter, valued at approximately $10 million at current price levels, and progressively ramp shipment tonnage in fiscal 2012.   CDII Trading has iron ore supply agreements in Mexico, Chile and Bolivia for delivery into China and has already begun shipping iron ore out of Mexico.  Management estimates its Bolivian operations have the potential to reach quarterly iron ore shipment levels in excess of 180,000 metric tons, or approximately $21 million at current price levels, under its existing supply contracts and contracts under negotiation.
 
Dr. James Wang, Chairman and CEO of China Direct Industries, stated “We are excited to add Bolivia to our active locations for sourcing iron ore into the China markets.  We are confident that as shipment levels rise out of South America and Mexico, we will build a strong U.S. based revenue and income stream while taking advantage of our China expertise.  We look forward to providing additional information on this subsidiary as we continue to build our operations internationally and broaden our revenue base and profit drivers.”

Friday, May 20, 2011

Analyst Reports

Rodman and Renshaw on CDII                                   5/20/2011

CDII: 2QFY11 Earnings Update

2QFY11 Results: CDII reported its 2Q FY11 results (period ended March 31, 2011) of $42.3 MM in revenue, $0.01 MM of net loss (after preferred stock dividends), and $0.00 in diluted EPS. Total revenue grew by 80.9% y-o-y but declined 7.7% sequentially. Magnesium segment generated $24.3 MM in revenue, accounting for 57% of total, while basic materials and consulting segments contributed $16.41 MM and $1.59 MM, or 39% and 4% of total. The company reported a gross margin of 7.6%, lower than 1Q FY11’s 14.3%, driven by larger contribution from the lower-margin magnesium segment, which bears a gross margin of 2.4%. Operating income was minimal in the quarter at $0.10 MM, compared to an operating loss of ($0.48) MM in 2Q FY10 and $3.3 MM profit in 1Q FY11. In the bottom line, CDII delivered a net loss of $0.01 MM (after preferred stock dividends), or ($0.00) per diluted share, compared to net earnings of $1.64 MM and $0.06 per diluted share a year ago.

Key Takeaways: We believe in the near-term, capacity should not be the constraint for the story since the company is not running at full utilization levels. In our view margins remain the key driver for the stock: magnesium business normally yields approximately 2%~4% gross margin, while basic material business generates 4.5%~6% and consulting business carries 80% or higher. On GM side, this quarter’s slowdown in consulting business has materially dragged CDII’s margin and bottom-line. On the EBIT side, we believe a higher capacity utilization level and shipment volume may allow some operating leverage to boost the bottom-line. However in the near-term, we are being cautiously optimistic given that the inflationary environment in China could potentially affect the demand therefore weigh on CDII’s shipment and margin.

Guidance Revised: Management continues to be confident on the magnesium market recovery in China and raised revenue guidance slightly to the range of $180 MM ~$200 MM from previously announced $180 MM, while maintaining its net income guidance of $12 MM, which indicates a lower margin expectation.

3QFY11 Estimates: For 3QFY11, we are projecting $52.5 MM for top-line, $2.91 MM for bottom-line, and $0.08 in diluted EPS. For full year FY11, we expect the company to generate revenue, net income, and diluted EPS of $193.8 MM, $8.2 MM, and $0.24 per share, respectively. For next fiscal year, our estimates are $233.8 MM, $12.2 MM, and $0.34, respectively.

Valuation: The stock is currently trading at ~4.7x and ~3.4x to our FY11 and FY12 earnings estimates, compared to ~12.3x and ~11.0x for metals & mining peers listed in the US and ~22.8x and ~19.3x for peers listed in China. On Price-to-Sales, the company is trading at ~0.20x and ~0.17x to our FY11 and FY12 sales estimates, compared to ~3x for China listed comparables and ~2x for US listed comparables. We are comfortable maintaining our $3.00 price target for CDII, which implies a ~9x P/E ratio to our FY12 earnings forecast.

Notice Regarding Privacy and Confidentiality:


This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.


Tuesday, May 17, 2011

Comments & Business Outlook

Second Quarter Results:

  • For the second quarter of fiscal 2011 total revenues increased to $42.3 million up 81% compared to total revenues of $23.4 million recorded in the second quarter of fiscal 2010.
  • EPS $0.00 vs. ($0.06)

As overall trends in our end-markets continue to improve and our revenue base has strengthened across all of our business segments, we see revenue for the full 2011 fiscal year of $180 to $200 million with net income of $12 million. We will further discuss our operating results as well as our outlook for fiscal 2011 during the conference call today, May 16, 2011 at 4:30 PM EST.

Commenting on our results for the second quarter of fiscal 2011, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated, "Our results continue to improve across all business segments in fiscal 2011, bolstered by a strengthening magnesium market, sales from our trading operations as well as sales of steel products and construction materials in China. While we experienced the short term negative effects of government imposed power restrictions limiting our magnesium production resulting in lower margin distribution sales, we believe that those conditions should not affect our operations in the second half of fiscal 2011. Demand for magnesium continues to strengthen and prices have risen since the end of the quarter. Additionally, the resumption of production at our Baotou facility and our consolidation of Golden Magnesium should further enhance our ability to grow revenue and profit in this segment. We are pleased to have completed a shipment of iron ore from Mexico into China and look forward to ramping up sales from our trading operations from Mexico and South America throughout the remainder of this fiscal year. Our Consulting segment revenue remains strong and we are diligently working on the addition of several new consulting clients to further strengthen our revenue. We also continue to strengthen our balance sheet as we build for the future and we expect to deliver a strong performance in the second half of fiscal 2011 and into 2012."


Monday, March 7, 2011

Deal Flow
On March 4, 2011, China Direct Industries, Inc. elected not to proceed with and discontinued its proposed offering of up to 4,516,629 shares of the Company’s common stock described in the prospectus supplement dated February 16, 2011, which the Company filed on February 16, 2011 with the Securities and Exchange Commission.

Tuesday, February 15, 2011

Comments & Business Outlook

First Quarter 2011 Results:

  • First Quarter 2011 revenue reaches $45.8 million up 105.7% from First Quarter of 2010 revenue of $22.3 million
  • Net income rises to $3.5 million up from a loss of ($985,000) in the First Quarter 2010
  • Basic and diluted EPS of $0.09 versus basic and diluted EPS of ($0.04) in the First Quarter of 2010

Commenting on our results for the first quarter of fiscal 2010, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated, "Our results have substantially improved in the first quarter as we build momentum for the remainder of fiscal 2011. We continue to ship more magnesium quarter over quarter as we work to add capacity on increasing demand and look to be opportunistic in our purchases of raw materials to improve performance. As our core operations in China have now stabilized and resumed a top line growth track, we will look to focus on expanding margins and operating efficiencies to achieve marked improvement in our operating margins.

Financial Guidance

As overall trends in our end-markets continue to improve and our revenue base has strengthened across all of our business segments, the Company sees

  • revenue for the full 2011 fiscal year of $180 million
  • net income of $12 million.

Commenting on our results for the first quarter of fiscal 2010, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated, "Our results have substantially improved in the first quarter as we build momentum for the remainder of fiscal 2011. We continue to ship more magnesium quarter over quarter as we work to add capacity on increasing demand and look to be opportunistic in our purchases of raw materials to improve performance. As our core operations in China have now stabilized and resumed a top line growth track, we will look to focus on expanding margins and operating efficiencies to achieve marked improvement in our operating margins. We have worked diligently to survive a prolonged downturn and now emerge with strengthening production and distribution businesses in China and a vastly improved environment for our consulting services as evidenced by the recent USChina Channel transaction. In addition, we believe our commodities trading business is poised for rapid growth as we look to begin shipments of iron ore from Mexico and parts of South America in the second quarter of fiscal 2011. We have strengthened our balance sheet to grow our business and we are confident that we can build on the success of the first quarter to forge a growing and profitable company for the remainder of fiscal 2011 and beyond."


Liquidity Requirements

The continued implementation of our business model, which includes providing investment capital to augment the growth of our portfolio companies, the operation of our commodity trading business and to expand our business through new acquisitions, will in all likelihood require additional capital. In addition, during fiscal 2011, we plan to use our magnesium holdings as a basis to raise capital and expand our magnesium holdings by acquiring additional operations owned or controlled by Yuwei Huang, an executive officer and director of our company, as contemplated in a non-binding letter of intent we have entered into with Mr. Huang during our 2009 transition period. While we do not anticipate any difficulties in raising the additional capital as needed, we do not presently have any firm commitment from any third parties and it is possible that we may not be able to raise the capital upon terms acceptable to us.


Monday, January 3, 2011

Comments & Business Outlook

DEERFIELD BEACH, FL--(1/3/11) - China Direct Industries, Inc. announced today that its wholly owned subsidiary CDII Trading, Inc. has entered into a contract with a privately held China-based trading company to supply iron ore from Bolivia.

As previously stated in our Form 8-K filed with the Securities and Exchange Commission on December 22, 2010, CDII Trading has been finalizing several supply contracts and sales agreements for iron ore delivery into China from Mexico and parts of South America with shipments expected to begin in the second quarter of fiscal 2011.  CDII Trading has agreed to supply iron ore to its China based buyer over a 12 month period under an agreement with a Bolivian mineral ore mining and exporting company upon acceptance of purchase orders by the parties and fulfilment of other commercial terms in the agreement including the successful completion of an initial test shipment. The monthly revenue under this agreement is expected to be approximately $4.5 million at the current market price for iron ore.

Commenting on this contract, Dr. James Wang, CEO and Chairman of China Direct Industries, Inc., stated, “This agreement to provide iron ore to China is a significant step forward for our trading operations in South America as we secure sales of iron ore under our long-term supply agreement with our Bolivian partner.  We believe successful completion of shipments from Bolivia will lead to further success in this and other ore rich South American countries and Mexico.  If we are able to complete delivery of iron ore to China under this agreement and our other supply agreements in Chile and Mexico, our international trading business has the potential to be a major driving force in the growth of our revenue and earnings for years to come”.


Deal Flow
DEERFIELD BEACH, FL--(December 31, 2010) -- China Direct Industries, Inc. announced that it has entered into definitive agreements to sell 2,222,223 shares of its common stock and warrants to purchase up to 777,778 shares of its common stock to accredited investors

Saturday, December 25, 2010

Comments & Business Outlook
CHINA DIRECT INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

   
2010
   
2009
 
             
Revenues
  $ 105,386,688     $ 57,088,400  
Revenues-related parties
    7,356,529       11,541,914  
     Total revenues
    112,743,217       68,630,314  
Cost of revenues
    105,560,695       66,349,604  
     Gross profit
    7,182,522       2,280,710  
                 
Operating expenses:
               
   Selling, general, and administrative
    11,374,137       10,938,867  
       Operating loss
    (4,191,615 )     (8,658,157 )
Other income (expense):
               
   Other income (expense):
    (20,986 )     (119,313 )
   Interest income
    43,546       283,288  
   Other impairment charges
    (1,282,546 )     (1,753,744 )
   Realized gain (loss) on sale of marketable securities
    2,140,781       (1,909,056 )
   Realized loss on other than temporary impairment
    (205,342 )     (9,466,329 )
       Total other income (expense)
    675,453       (12,965,154 )
        Loss from continuing operations before income taxes
    (3,516,162 )     (21,623,311 )
   Income tax (expense) benefit
    (56,674 )     21,165  
       Loss from continuing operations, net of income taxes
    (3,572,836 )     (21,602,146 )
   Loss from discontinued operations
    -       (1,194,767 )
  Provisional reserve on discontinued operations
    -       (7,362,039 )
       Net loss
  $ (3,572,836 )   $ (30,158,952 )
   Net loss attributable to noncontrolling interests-continuing operations
    358,911       585,436  
   Net loss attributable to noncontrolling interests-discontinued operations
    -       1,714,521  
      Net loss attributable to China Direct Industries, Inc.
  $ (3,213,925 )   $ (27,858,995 )
                 
Deduct dividends on Series A Preferred Stock:
               
   Preferred stock dividend
    (100,558 )     (80,925 )
      Net loss attributable to common stockholders
  $ (3,314,483 )   $ (27,939,920 )
                 
Basic and diluted loss per common share
               
   Basic
  $ (0.11 )   $ (1.13 )
   Diluted
  $ (0.11 )   $ (1.13 )
   Basic weighted average common shares outstanding
    29,574,749       24,802,730  
   Diluted weighted average common shares outstanding
    29,574,749       24,802,730  

GeoTeam® Note: Non-GAAP EPS was -0.10 vs. -0.27

Although we experienced short term shortages of electricity and coke gas during the fourth quarter of fiscal 2010 and the first quarter of fiscal 2011 at some of our magnesium facilities, we believe we will have access to sufficient electricity, dolomite, ferrosilicon and coke gas to meet our needs for the foreseeable future as the government imposed energy restrictions expire and demand for coke increases. See Item 1A – Risk Factors - Fluctuations in the cost or availability of electricity, coke, coal and/or natural gas would lead to higher manufacturing costs, thereby reducing our margins and limiting our cash flows from operations.

The overall environment in our various segments continues to improve and we see further momentum in fiscal 2011. The positive sales trends in our magnesium segment accelerated throughout the year and we expect further growth with additional production available through the staged restart of our Changxin and Bautou Changxin facilities coupled with production of magnesium powder from our recent acquisition of Ruiming Magnesium. We continue to market our magnesium products through our strengthening IMG brand. Our international commodity trading business is finalizing several supply contracts and sales agreements for iron ore delivery into China from Mexico and parts of South America scheduled to begin shipping early in the second quarter of fiscal 2011. We enter fiscal 2011 anticipating that we will return to net profitability during the year while growing our revenue by a minimum of 30%.

Commenting on our results for fiscal 2010, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated, "Our results for fiscal 2010 reflect a significant improvement in overall operating revenue and positive trends across all of our business segments when compared to the same twelve month period in 2009. The progressive improvement in our magnesium segment where shipments, average pricing and revenue increased each quarter has led us to restart facilities to further accelerate growth in fiscal 2011.We believe our basic materials segment is poised for continued improvement as we look to deliver on several key distribution contracts in the coming year and we begin shipments of iron ore to China. We believe our marketing efforts in consulting will lead to a near term transaction as well as the addition of new clients in fiscal 2011 and result in a much stronger performance in this business. We are more optimistic than ever with regard to our international commodity trading business with the beginning of shipments of iron ore to China in this new fiscal year. As we head into fiscal 2011, we maintain a strong balance sheet with sufficient cash to fund operations and negligible long term debt with an eye toward significant revenue growth and a return to profitability."


Thursday, September 16, 2010

Liquidity Requirements
Rodman and Renshaw Annual Global Investment Conference presentation.

Tuesday, September 14, 2010

Comments & Business Outlook
China Direct Industries, Inc. , announced that its subsidiary, CDI Beijing International Trading Co., Ltd., has received a contract from Beijing Tianrun Construction Co, Ltd. for the delivery of various types of reinforcing steel bars having the potential to generate over $70 million in revenue over the next 12 months. Delivery dates will be determined by parties over the term of the contract.

Thursday, May 13, 2010

Comments & Business Outlook

The overall environment in our various businesses improved in the second quarter as margins remained positive and volumes increased substantially at our magnesium and chemical operations, partially offset by a reduction in sales in our construction products distribution business. We see inflationary pressures mounting in magnesium and anticipate that growing volume trends will lead to price appreciation in the coming quarters. We are restarting facilities in response to improvements in demand and increased quoting activities. Activity in our consulting operations has increased substantially and we anticipate an acceleration of growth in both the number of clients we service as well as our overall revenue for the remainder of 2010. Additionally, we see our CDII Trading operations reaching contractual terms on several purchase and sale agreements for various metal ores for delivery into China from South America and Mexico in the second half of fiscal 2010. We continue to see our net income ranging between $8 to $10 million on revenue ranging from between $130 and $150 million.

Commenting on the second quarter, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated, "We are pleased to return to profitability in the second quarter as we see momentum building for the second half of fiscal 2010. We are also pleased that all of our business segments showed improvements in the quarter. We move into the remainder of fiscal 2010 poised to see a strong reacceleration of growth as our end-markets in our various business segments continue to strengthen. We are confident that the restart of our magnesium facilities coupled with a strong performance in our consulting operations and CDII Trading will boost our performance significantly in the coming quarters as our company emerges from the challenging environment we have faced since the fall of 2008."