CNIT to Provide Cloud-access Upgrade for 10,000 Elevator Display Terminals
Company Also Reports Use of Its Yunfa Net Service Rising ‘Dramatically’
SHENZHEN, China, July 28, 2016 -- China Information Technology, Inc. (Nasdaq:CNIT), a leading provider of internet-based platforms and digital advertising services in China, today said it has signed a contract with a leading advertising agency in Fujian Province to upgrade 10,000 of the agency’s digital elevator display terminals to cloud-based Internet-of-Things (IoT) units.
Upon upgrade, the terminals - owned by Haojing (Xiamen) Culture Media Co., Ltd. – will be able to connect, via a proprietary CNIT adaptor, to the company’s Yunfa Net content delivery network (www.pubds.com) and display reduced-cost ads that can be created on a customer’s PC or mobile app and targeted to diverse audience groups.
The upgraded terminals will also allow viewers to request and receive information about advertisers’ products and services, a feature believed to significantly improve the sales utility of the terminals and produce incremental revenue opportunities for the agency.
As per the contract, CNIT will receive moderate sales revenue on the 10,000 adaptors, but is expected to receive significant additional revenue as a result of increased use of Yunfa Net, for which customers pay monthly service fees for each terminal.
“This contract demonstrates the value of our cloud-based IoT business model, which provides CNIT with multiple streams of high-margin revenue,” said chairman and CEO Mr. Jianghuai Lin.
Mr. Lin added that, as a result of a network upgrade completed in April, Yunfa Net now offers a new feature known as terminal status real-time feedback – the ability of a customer to instantly receive, on a PC or mobile app, data sent from a digital ad terminal concerning which ads it is displaying and what information requests or product purchases viewers have made in response to an ad.
This feature, he said, helps customers precisely measure the effectiveness of an ad upon a targeted audience, thereby helping these customers make immediate adjustments in their ad content or strategy that would be difficult or impossible to make using other ad delivery systems.
Since this feature has been offered, said the CEO, both the number of subscribers to Yunfa Net and the digital ad terminals connected to the network has risen “dramatically.”
“We are seeing that, as we continue to package our upgraded Yunfa Net network together with our cloud-based elevator terminals across wider large markets in China, we are experiencing much improved revenue from both offerings,” said Mr. Lin.
“We believe the result is a significantly accelerated stream of total revenue, which will create steadily improving margins for CNIT going forward.”
About China Information Technology, Inc.
China Information Technology, Inc. (NASDAQ: 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://en.chinacnit.com.
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