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Apr 12 2016

CNIT Signs Agreements to Sell 8,500 Display Terminals for $5.2 Million; Contracts Could add up to 80,000 Terminals Over Three Years

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 Article:

SHENZHEN, China, April 12, 2016 /PRNewswire/ China Information Technology, Inc. (CNIT), a leading provider of internet-based platforms and digital advertising technologies and services in China, today said it has entered into two agreements with a leading advertising agency in Fujian Province for the combined sale of 8,500 CNIT elevator digital display terminals to be installed in 20 major cities throughout China.

These agreements, both signed with Haojing (Xiamen) Culture Media Co., Ltd., have total base revenue of RMB33.58 million(about $5.2 million), all of which will be remitted to CNIT during calendar 2016. The agreements also carry a non-binding contract addition of 60,000 to 80,000 terminals to be purchased by Haojing from CNIT over the following three years.

The 8,500 terminals covered under the agreements will be installed in elevators in office buildings, hotels, shopping malls and prime residential communities in Beijing, Shanghai, Guangzhou, Shenzhen and 16 other large Chinese cities and will carry advertising targeted to specific audiences in high-traffic locations. The terminals will enable viewers to request information about, or make purchases of, advertisers’ products and services.

For advertisers, the terminals are expected to significantly reduce the cost of advertising while increasing the ability to target ads to their most likely customers.

In addition to sales revenue on the terminals, CNIT receives recurring monthly fees for the life of the units from customers’ use of Yunfa Net (www.pubds.com), the company’s cloud-based content delivery platform that enables advertisers to design and update ads on their PC or mobile app and transmit them to the display terminals of their choice across China.

Today’s announcement follows four other display terminal contracts signed by CNIT since last August providing for installation of more than 22,000 units in five Chinese provinces.

“We’re very proud to have completed these additional milestone agreements for our digital display terminals,” said CNIT CEO and chairman, Mr. Jianghuai Lin. “These sales are further evidence of our successful transitionfrom an IT system integration provider to government to an integrated internet-based solutions and services provider to enterprise- a role that makes possible far higher sales margins and greater profitability for our company.”

This transition has included certain financial adjustments, made over the past year, designed to strengthen the company’s operations. These include write-offs of receivables and intangible assets associated with CNIT’s government business – from which the company exited at the end of 2014 – and the disposal of certain traditional IT business and real estate assets in order to reduce debt and improve working capital.

The company is also penetrating new markets, said Mr. Lin, including educational software and conference training, that are expected to contribute meaningful high-margin revenue.

Further details of the company’s transition will be included in CNIT’s 2015 year-end financial report expected to be released on or before April 22, said the CEO.

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, city 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 visithttp://www.chinacnit.com.

Safe Harbor Statement

This press release may contain certain “forward-looking statements” relating to the business of China Information Technology, Inc., and its subsidiaries and other consolidated entities. All statements, other than statements of historical fact included herein, are “forward-looking statements” in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, often identified by the use of forward-looking terminologies such as “believes”, “expects” or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company and its subsidiaries and other consolidated entities or persons acting on their behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Source: PR Newswire and China Information Technology, Inc.

Broad Street Alerts has not been compensated for the mention of (CNIT) and we do not hold any positions.

 

Written by broadAdmin · Categorized: Uncategorized

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