SHENZHEN, China, January 17, 2017 -- China Information Technology, Inc. (Nasdaq:CNIT), a provider of cloud-app technologies for city IoT platforms, digital ad delivery and other internet-based information distribution systems, today announced it signed a follow-up contract with a leading elevator ad agency for the sale of 4,000 CNIT cloud-based elevator ad terminals to be installed this year in Beijing and Shanghai.
This contract, signed with Haojing (Xiamen) Culture Media Co., Ltd., follows the parties' April 2016 agreement carrying a non-binding clause for Haojing to purchase a total of 60,000 to 80,000 terminals from CNIT over the ensuing three years.
The 4,000 terminals, to be installed in office buildings, hotels, shopping malls and residential communities, will provide sales revenue to CNIT of RMB 15.8 million, or about $2.3 million. CNIT will also receive recurring monthly fees derived from customers' use of Yunfa Net (www.pubds.com), the company's cloud-based content delivery platform enabling advertisers to design and transmit ads to terminals of their choice.
"This sale really strengthens our foothold in Beijing and Shanghai - two cities with immense showcase value for our products," said CEO and chairman, Mr. Jianghuai Lin. "Not only will this installation help us feature our terminals in the center of China's two premier cities, it will also demonstrate to many potential advertisers and other industry clients the many advantages of our proprietary cloud-app technology and Yunfa Net, a service we anticipate will produce our highest margin revenue."
The CEO added he believed CNIT is "absolutely on track" to turning profitable in the second half of 2017, and that he intends to comment on this subject "with regularity."
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 visit http://www.chinacnit.com.
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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.