CEO: Warren Wang
About: ChineseInvestors.com, Inc. (OTCQB: CIIX), founded in 1999, endeavors to be a leading financial information website that provides real-time market commentary, analysis, and educational related services to Chinese-speaking investors via the company’s dynamic financial website, www.chinesefn.com. The Company went public on OTCQB in January 2012 under the symbol CIIX.
WSA: Good day from Wall Street, this is Juan Costello, Senior Analyst with the Wall Street Analyzer. Joining us today is Warren Wang, the CEO for ChineseInvestors.com Inc. The company trades on the OTCQB, ticker symbol CIIX. Thanks for joining us today there, Warren.
Warren Wang: Hello, everyone. How are you?
WSA: So starting off, please give us a history and overview of the company.
Warren Wang: My pleasure. We established the company in 1999 and I was from a Wall Street Investment Banking Firm. I’ve made a bunch of money during the bull market of the .com fever and we underwrote two companies at that time, one is called shopping.com. That is the reason I wanted to start up an internet company in 1999.
After that, the company existed almost nearly 20 years, we provide education services, education tools to Chinese investors about US equities, about commodities, Forex, and currencies. Currently, we also entered into cryptocurrency, which we believe is the new emerging asset. So we established a new website called NewCoins168.com, We opened office in the Trump Building on 40 Wall Street, 28th floor. We are building compliance education services for the Chinese investors about cryptocurrencies. So that is a brief history of our company and I love to be here.
WSA: Certainly, so bring us up to speed on some of your recent news as you recently announced that you plan to spin off your hemp assets and your wholly owned subsidiary CBD technology as your skin care product has been approved for launch in China.
Warren Wang: Yes. A year ago, we established a company called CBD Biotechnology and then we’re moving to the China headquarters in Shanghai. After nearly a year of efforts, the company is doing very well. They have two lines of products, one is the liquor business—One division—and one is CBD-infused skin care products for the Chinese people.
Currently, the company is expecting to do over $1.5 million revenue a year. So we think it is a perfect time to spin off the company, make company strategy envisioned more clearly to the investor, because every time people said, look at the Chinese Investors, they thought of hemp division, they saw, you know, an investment education division. It is kind of a little confusing. So we are issuing each shareholder four shares of CIIX stocks, common stocks, we will give them stock dividends for one share of hemp oil. We are expecting after spin off that the hemp division will start trading on OTC or Canadian Exchange, possibly. The time period might take about 12 to 18 months. So that is our goal. And I think our hemp oil division is still a very interesting story to tell, because compared with United States and Canada, China has still not opened the door for the hemp industry or marijuana business. But I think in the long run, hemp will be used in a lot of different medical fields. I think hemp provides a very efficient, very big impact on certain diseases. Still, that needs to be approved by the FDA or SFDA. But I think that is in the next 20 years, hemp will be growing very rapidly in China.
So our product line, including one – six products which is using 2% of CBD infused into the skin care products line. So it is a very good story. We are expecting this year to possibly be doing $200,000 on that a year revenue on this division and then we’re doing much more on the liquor division. So I think it is a perfect time toreward our shareholders.
WSA: Yeah, certainly. So, in terms of the cryptocurrency and CBD market, I guess you’re gauging what some of the hot trends or current trends on the sector and trying to capitalize on those as you go along.
Warren Wang: Yes. Cryptocurrency, I’ve been exploring this industry since 2014. 2016, we saw the crypto – bitcoin go from $1,000 to $20,000 within a year period. So a lot of investors, especially Chinese investors started watching and trading, and investing in this field. A lot of middle to old age Chinese investors, they need help, because they want some kind of tech support, they want some kind of walking office, like Scottrade or TD Ameritrade or like E-Trade because most bitcoin exchanges, for example, Coinbase, they don’t have a real physical location, they don’t have any 1-800 number you can call. So usually, you have to wait at least two hours to talk to the technician or customer service over the internet.
So a lot of middle to senior age Chinese investors, they’re very confused. They want to participate this investment or social trend but they don’t hardly understand how to send, receive, or how to buy out coin, how to involve with ICO. So we see it is tremendous, tremendous opportunity for us to involve this education helping this Chinese investor to learn the cryptocurrency and trade and invest on the cryptocurrency, because this is an emerging class of assets. It depends on the supply-demand side. So we see this as a tremendous, tremendous opportunity in this field.
WSA: And what are some other factors there Warren, that you feel make ChineseInvestors.com unique from some of the other players in your sector?
Warren Wang: I think we’re kind of very niche because we focus on those American-Chinese investors. We have three offices in Shanghai. Basically, it is our customer service divisions to handle the calls, handle the emails, handle the live chat duties. We also have compliance training in Shanghai. We also have a retail education center in New York and LA. We are going to open an office in San Jose and in Vancouver. So I think we’re kind of a leader in this field in North America. I’m not saying we are the leader in Chinese investors around Mainland China, but we definitely have a good name since 1999. Secondly, we are really focused on this niche market because we see a lot of immigrants from China bring their capitals. We saw a lot of money inflow from China into the United States. We saw a lot of people want to buy US Silicon Valley, ICO, or buying bitcoin, because China is banning the cryptocurrency and crypto exchange. So if they want to purchase cryptocurrency, either they’d have to be the citizen or have a green card or have legal status in the United States, I think that they can legally purchase bitcoin in North America.
So I think that is kind of unique. A lot of people asked me why we(not) expand to China. I say, “Well, you know, right now, I mean, Chinese government doesn’t like bitcoin.” They don’t allow the citizen to buy from the bitcoin from their exchange. But when the investors, they have, you know, legal status in the United States or Canada—I mean, the exchange is still open and we speak their language and we have a physical office, we have customer support, everything—I think that is kind of unique part of our company.
WSA: So what are the key goals and milestones that you’re hoping to accomplish here moving forward over the next 6 to 12 months.
Warren Wang: Sure. First, we want to spin off the hemp oil division. We want to help the management team to construct the corporate governances, finish the auditor with the hemp oil company and building the management team, building the board, building the independent director, everything, and helping them to go public, helping to improve their profitability and increasing their revenue. So we are expecting, and our goal is reaching $4 million milestone in 2019, maybe earlier. And then we can start trading on a North American exchange either in Canada or in the United States. Our second goal is we want to really stress our cryptocurrency education website called NewCoins168.com. We want to provide more realtime news stream, we want to provide more on the analysis side and we want to provide another on the video side, education, seminars. Overall, the final goal is making Chinese investor a possibility of high-growth company in 2018 and 2019. That is the main goal.
WSA: Right. And so as far as investors and the financial community are concerned, as you have mentioned, them perhaps having a hard time grasping between education and how that’s connected to your CBD business, what are some of the synergies that you have and what are some of the things that you want investors to better understand about you guys?
Warren Wang: So I think after the spin off, the CBD division, I think the people really understand the Chinese Investors – it’s purely education, an investing education company. So not just on US equity, but also on the cryptocurrency side. So I think people and the investment community will be more excited about new divisions, especially the cryptocurrency because we see the revenue, we see the advertising revenues, we see the subscription revenues, maybe we see the exchange revenues on the road. So I mean, that is – I think, you know, people will forget about hemp oil because if they really like the hemp oil division, they will buy the new stock on the Canadadian or US market. But definitely, ChineseInvestors.com will have only one goal, which it is to provide investment education for Chinese investors. So it will be very clear vision and very simple business model at that point.
WSA: Certainly, So once again, joining us today is Warren Wang, the CEO for ChineseInvestors.com Incorporated which trades on OTCQB, ticker symbol CIIX, currently trading at 65 cents a share US and market cap is about $15 million US. And before we conclude here, Warren, to recap some of your key points, why do you believe investors should consider the company as a good investment opportunity today?
Warren Wang: Sure. I think cryptocurrency is the major trend of our generation. So Chinese Investors is the wealthiest group and we have over 1.5 billion people, and with the Chinese government regulation on the cryptocurrency, I believe this provides a tremendous opportunity for ChineseInvestors.com because it is a very unique proposition we are facing, the Chinese Investors Mainland China, because they need a country the United States to purchase bitcoin, they need a country the United States to purchase ICO with the legal status in the United States. So it can bring a lot of revenue.
I will give a very good example, if China allows ICO cryptocurrency purchased in Chinese exchange, I think there are a lot of ICO companies will do the roadshow in Shanghai, Beijing. But right now, with Chinese government banning the ICO right now, I think that the ICO company will purchase advertisement spots from us, because we are the face of Chinese investors. Chinese investors from Mainland China will use us as the window or as an alternative introduction website to make smart decision if they want to purchase this ICO or not, which is I think the Chinese regulation give the ChineseInvestor.com [Indiscernible] [0:15:29] a tremendous, tremendous business opportunity at this point. So I’m excited.
WSA: Well, we certainly look forward to continue to track the company’s growth and report on your upcoming progress. And we like to thank you for taking the time to join us today, Warren, and update our investor audience on ChineseInvestors.com. It was great having you on.
Warren Wang: Thank you.