News and Research on China Direct, Inc. (CDS)
Business Description
China Direct, Inc. operates as a management and consulting company in China. It offers consulting and advisory services to public Chinese entities seeking to access the U.S. capital markets. The company also acquires controlling interest in entities operating in China, and offers management advice and financing to small to mid-sized Chinese companies.
The company's wholly owned subsidiaries include China Direct Investments, Inc. (China Direct Consulting); and CDI China, Inc. (CDI China).
CDI China’s wholly owned subsidiaries include Shanghai Lang Chemical Company, Limited (Lang Chemical); Taiyuan Chang Magnesium Company, Limited (Chang Magnesium); CDI Shanghai Management Company, Limited (CDI Shanghai Management); Luma Logistic (Shanghai) Co., Ltd. (Luma Logistic); Big Tree Group Corporation (Big Tree); Jinan Alternative Energy Group Corp. (Jinan); CDI Magnesium Co., Ltd. (CDI Magnesium).
Chang Magnesium’s wholly owned subsidiaries include Taiyuan Changxin YiWei Trading Company (Changxin Trading). Big Tree’s wholly owned subsidiaries include Jieyang Big Tree Toy Enterprise Co., Ltd. (Jieyang Big Tree). Jinan’s wholly owned subsidiaries include CDI Wanda Alternative Energy Co., Ltd. (CDI Wanda). CDI Shanghai Management’s wholly owned subsidiaries include Capital One Resource Co., Ltd. (Capital One Resource). Chang Magnesium’s wholly owned subsidiaries include Excel Rise Technology Company, Ltd. (Excel Rise Technology).
CHINA DIRECT CONSULTING
China Direct Consulting serves as a service consulting and advisory firm offering a suite of services to Chinese-based companies which are traded on the U.S. capital markets. The company offers a suite of services to its clients includes: U.S. representative offices; Translation - English/Chinese; General business consulting services; Merger and acquisition planning and analysis; Advice on U.S. capital markets, including assessment of sources of investment capital; Coordination of professional resources; Corporate asset evaluation; Public relations and seminars; Advice and structure assistance for alliances, partnerships and joint ventures; and Modeling/valuation analysis.
Clients: China Direct Consulting's clients include Dragon Capital Group Corp.; Linkwell Corporation; Dragon International Group Corp.; Sunwin International Neutraceuticals; and Sense Holdings, Inc.
CDI CHINA
CDI China operates as a management company for Chinese entities. CDI China intends to acquire a controlling interest in entities operating in China.
CDI China's operations include Lang Chemical and Chang Magnesium, operating companies, as well as its newly formed entities; CDI Shanghai Management, Luma Logistic and Big Tree, companies.
CDI Shanghai Management
The company formed CDI Shanghai Management provides an operational infrastructure to subsidiaries of CDI China, as well as providing consulting services to Chinese entities in regards to merger and acquisitions, business development and financial management. CDI Shanghai Management would supervise and monitor the operations of the CDI China subsidiaries based in China.
CDI Shanghai Management serves as a marketing resource and sources private companies in China. CDI Shanghai Management would target entities in China seeking to access the U.S. capital markets. The company intends to develop a business conference program in China.
Marketing: The company has established a relationship with China International Intellectech Corporation (CIIC). CIIC is the enterprises directly under the management of the State-owned Assets Supervision and Administration Commission of the State Council of China.
In February 2007, CDI Shanghai Management formed Capital One Resource Co., Ltd., a Brunei corporation, as a wholly owned subsidiary. Capital One Resource Co., Ltd. would serve as a marketing arm for the company in the greater Asia region outside of China.
Lang Chemical
Lang Chemical specializes in the sale and distribution of industrial grade synthetic chemicals, maintaining a relationship with both the supplier and the customer, and managing the logistics of the distribution channel. It acts as a third party agent in the sale of synthetic chemicals from the supplier to the customer. In addition, Lang Chemical also acts a distributor of synthetic chemicals to customers. The majority of Lang Chemical's customers are industrial manufacturing facilities and trading companies. It utilizes three distribution centers in the eastern section of China.
Products and Suppliers: Products sold and distributed by Lang Chemical are used by customers as a raw material in the production of various finished products such as paint, glue, plastics, textiles and leather goods, as well as various medical products. Lang Chemical distributes four primary product categories including glacial acetic acid and acetic acid derivatives, acrylic acid and acrylic ester, vinyl acetate-ethylene (VAE) and polyvinyl alcohol (PVA).
Lang Chemical’s other products include various synthetic chemicals, including Dye intermediates, Acrylamide, Toluene, Ammonium Persulfate, Methanol, TX-10, Acetone, OP-10, Acrylonitrile, and Barium chloride dehydrate.
Lang Chemical has three primary suppliers for glacial acetic acid derivatives. It is the distributor of the acrylic ester series of chemicals, which includes butyl acrylate, methyl acrylate and acrylic acid, from BASF-YPC Company Limited for Shanghai Province, Jiangsu Province, Anhui Province and Henan Province. Lang Chemical is a non-exclusive distributor of VAE for Celanese (China) Holding Co., Ltd. in the Shanghai, Jiangsu Province, Zhejiang Province, Anhui Province, Shandong Province and Fujian Province and a non-exclusive distributor of Methyl methacrylate produced by Lucite International (China) Chemical Industry Co., Ltd. (ICI) in Shanghai, Jiangsu province, Zhejiang province, Anhui Province, Shandong Province and Fujian Province.
Lang Chemical also purchases products from a number of other suppliers, including Lanzhou Vinylong Group, Guizhou Crystal Organic Chemical Group, Yunwei Group and Nanchang Ganjiang Corporation.
Chang Magnesium and Changxin Trading
Chang Magnesium's operations include the processing and manufacturing various magnesium products, including magnesium powder, magnesium scrap, magnesium alloy and various grades of magnesium slabs, as well as the operations of its wholly owned subsidiary, Changxin Trading. Changxin Trading is an exporter of magnesium products.
Chang Magnesium was formed by Taiyuan YiWei Magnesium Co., Ltd. to operate a constructed magnesium plant that would process and manufacture various magnesium products, including magnesium powder, magnesium scrap, magnesium alloy and various grades of magnesium slabs. Taiyuan YiWei Magnesium is a diversified magnesium organization which owns interests in seven subsidiary magnesium factories, a magnesium alloy factory and a magnesium powder desulphurization reagent factory, all located in China.
Changxin Trading
Changxin Trading was formed by Taiyuan YiWei Magnesium Co. Ltd. To operate as a reseller, distributor and exporter of magnesium products, including magnesium powder, magnesium scrap, magnesium alloy and various grades of ordinary magnesium slabs to customer located within China as well as to export customers outside of China. Changxin Trading has forged relationships with global magnesium consumers and in the past has supplied various magnesium related products to Alcoa, Inc. (United States), Alcan, Inc. (Canada), Capral (Australia), and Japan Materials Co., Ltd.
Customers: Changxin Trading’s customer is Japan Material Co., Ltd.
Excel Rise
In February 2007, Chang Magnesium formed a new entity, Excel Rise, as a wholly owned subsidiary. Excel Rise Technology Co., Ltd (Excel Rise) is a wholly owned subsidiary to Chang Magnesium. Excel Rise intends to operate as an exporter of magnesium products; primary exports would include various forms of magnesium including but not limited to magnesium powder, magnesium scrap, magnesium alloy and various grades of ordinary magnesium slabs. Excel Rise intends to establish relationships with global magnesium consumers. The major suppliers of Excel Rise are Chinese magnesium companies including Taiyuan Tongxiang Magnesium Co. Ltd, Taiyuan Qingchen YiWei Magnesium Industry Co. Ltd., Taiyuan YiWei Magnesium Factory, Taiyuan YiWei Magnesium Co. Ltd. and Shanxi Nichimen YiWei Magnesium Industry Co., Ltd. The distribution network of Excel Rise would cover Europe, Japan, Australia and Canada.
Luma Logistic
The company organized Luma Logistic which would operate in two business segments; logistics management and as a commodity wholesaler. As a logistics management firm, Luma Logistic intends to operate as a consolidator and shipment manager for various manufacturers for the shipment of goods and merchandise to the Port of Shanghai. Luma Logistic would market its services to small manufacturers.
Big Tree Toy
In November 2006, the company organized Big Tree to be a reseller, exporter and distributor of toys and related entertainment products manufactured in China. CDI China owns 60% of Big Tree. In February 2007, Big Tree acquired a 100% interest in Jieyang Big Tree. Jieyang Big Tree was formed in January 2007 as a Sino-American joint venture.
Jieyang Big Tree, which is located in Shantou City, China, intends to operate in two business segments within the toy and related entertainment products industry in China; including the distribution of toys and related entertainment products and as an agent of third party OEM manufacturing of toys and related entertainment products. Jieyang Big Tree offers in excess of 200,000 various toy and entertainment products ranging from plastic toys, stuffed toys, electronic toys, ceramics toys and resin handicrafts. The suppliers of the various toy are located in Guangdong Province, China, the same region where Jieyang Big Tree is located.
CDI Magnesium
In February 2007, under the terms of an agreement between CDI China and Shanxi Jinyang Coal and Coke Group Co. Ltd., CDI China acquired a 60% majority interest in CDI Magnesium. CDI Magnesium was formed in February 2007 by Shanxi Jinyang Coal and Coke Co. Ltd. Shanxi Jinyang Coal and Coke Group Co., Ltd. is in the business of mining, coal washing and coking. CDI Magnesium was formed to operate a newly constructed magnesium alloy plant in Taiyuan, China.
Jinan and CDI Wanda
In February 2007, Jinan acquired a 51% majority interest in CDI Wanda. CDI Wanda is engaged in the alternative energy and recycling industry. CDI Wanda develops recycling technological applications. It has developed a recycling process to transform waste rubber tires into distillate fuels such as diesel, gasoline and fuel oil.
Products and Services: CDI Wanda offers three primary systems in various sizes.
Wanda Pyrolysis Equipment (WPE): WPE utilizes a process called Pyrolysis to decompose waste tires into vaporized heavy oil and crude carbon black by mixing with Wanda 5 Catalyst under normal pressure. Pyrolysis is a form of incineration that chemically decomposes organic materials by heat in the absence of oxygen. CDI Wanda offers the WPE in six sizes.
Wanda Distillation Equipment (WDE): WDE processes vaporized heavy oil into gasoline, diesel and heavy oil. The major process involves are washing and heating vaporized heavy oil and then rectification cooling. Catalyst would be used in this process as well. CDI Wanda offers the WDE in four sizes.
Wanda Carbon Black Equipment (WCBE): WCBE transforms crude carbon black into active carbon black product. Chemical activation is used for the transformation of activated carbon from crude carbon black or peat. Wanda 5 Catalyst would be used as the chemical activation agent during this process.
Wanda 5 Catalyst: CDI Wanda offers a catalyst which is involved in the recycling process of each machine. This catalyst named the Wanda 5 Catalyst is a proprietary catalyst, which is critical to the recycling process. CDI Wanda sells the Wanda 5 Catalyst in tandem with its equipment. The relationship is similar to the printer/toner or razor/razor blade. CDI Wanda offers the Wanda 5 Catalyst pre formulated for each model.
Sales and Marketing: CDI Wanda has a sales and marketing division which covers East China, Southeast Asia and Europe. The primary clients of CDI Wanda fuel refineries. CDI Wanda sold 200 systems in 2006.
Acquisitions
In October 2006, the company acquired a 51% majority interest in Shanghai Lang Chemical Co., Ltd. (Lang Chemical).
In December 2006, the company acquired a 51% majority interest in Chang Magnesium Co., Ltd. (Chang Magnesium).
