CNIT Signs Follow-up Sale of Cloud-based Elevator Ad Terminals for Beijing and Shanghai

China Information Technology, (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., 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.
As quoted in the press release:

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.”

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