CNIT SIGNS $1.1 MILLION CLOUD-BASED AD TERMINAL CONTRACT FOR BEIIJING
SHENZHEN, China, July 24, 2017 - China Information Technology, Inc. (Nasdaq:CNIT), a provider of cloud-app technologies for internet-based ad distribution and ad screen sharing systems in China, today said it has entered into a contract for the sale of 2,000 CNIT cloud-based ad terminals to be installed by year-end throughout Beijing City.
Signed with advertising agency Beijing Haojing Culture & Media Limited, the contract is expected to generate sales and service revenue to CNIT of about $1.1 million. Beijing Haojing is the majority-owned subsidiary of Haojing (Xiamen) Culture Media Co., Ltd., a leading digital elevator advertising service company in China with nationwide market coverage.
The 2,000 terminals will include a built-in module for accessing Yunti Guard, CNIT's IoT safety solution comprising a series of state-of-the-art features not previously available in a single elevator maintenance system.
Today's news is the fifth announcement in the last two months on CNIT's sales of its cloud-based ad terminals. The five contracts have total sales of 20,000 terminals projected to produce revenue of $6.6 million this year. Each of the contracts is also expected to generate additional revenue from customers' use of Yunfa Net (www.cnitiot.com), CNIT's cloud-based system allowing an advertiser to create reduced-cost ads on a PC or mobile app, transmit these ads to the elevator ad terminals of their choice, and receive feedback from the terminals on how viewers are responding to the ads.
"This is a major milestone of our company," said chairman and CEO Mr. Jianghuai Lin. "As the nation's capital and one of the largest cities in China, Beijing will be a great showcase for our products and technology, and likely lead to additional business for CNIT."
The CEO said he remained confident that by year-end CNIT will sell at least 60,000 cloud-based ad terminals with market coverage of approximately 100 million people in 20 major Chinese cities. This expanded coverage will be supported by the buildout of CNIT's national IoT network of cloud-based ad terminals installed in office buildings, residential communities, shopping malls and various outdoor locations, said Mr. Lin, the combination of which is expected to generate growing levels of recurring platform, resource exchange and big data service fees.
These service fees, he said, are likely to have net profit margins exceeding 50 percent.
About China Information Technology, Inc.
China Information Technology, Inc. (CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, elevator safety management, education, etc. Through continuous innovation, CNIT is aiming to leverage its proprietary Cloud-Application-Terminal technology to level the competitive landscape in the new media industry and deliver value for its shareholders, employees, customers, and the community. To learn more, please visit http://www.chinacnit.com.
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24/07/2017 Dissemination of a Financial Press Release, transmitted by EQS Group.
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