China Information Technology, Inc. (Nasdaq: CNIT) 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, the company said.
These agreements, both signed with Haojing (Xiamen) Culture Media Co., Ltd., have total base revenue of RMB33.58 million (about USD5.2 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.
China Information Technology is an 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.