Post on 29-Dec-2015
China Information Technology(NASDAQ: CNIT)
Investor PresentationAugust 2015
Safe Harbor Statement
2
This presentation 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.
Who We Are
3
We are a leading provider of integrated cloud-based platform, exchange,
and big data solutions in China
We are on a mission to make advertising accessible and affordable for
businesses of all sizes
We achieve this through deploying our cloud-based content publication
platform (Yunfa Net), online advertising resource exchange (Taoping Net),
and supporting software and hardware solutions
How Large Is the Market
4Sources: Analysys International & Enfodesk
-15.0%
-5.0%
5.0%
15.0%
25.0%
35.0%
45.0%
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0
0.9 1.0
1.4 1.4 1.5 1.6
1.8
-9.8%
10.2%
35.0%
3.3%2.9%
10.7%12.6%
Out-Of-Home LCD Advertising Market in China
Market size ($Bil)
2009 2010 2011 2012 2013E 2014E 2015E
Growth drivers
Urbanization
Rising consumption
Cross-media advertising
Print to digital conversion
Barriers of entry
Why We Are Needed
5
Offline displays Cloud-based displays
Location Suitable for generic nationwide ad placement with uniform content
Suitable for highly targeted ad placement on street or building level
Client Large-scale nationwide advertisers only
Advertisers of all sizes, including local ones with limited budget
Flexibility Fixed weekly ad cycle requiring onsite manual content update
On-demand ad cycle with remote and automatic content update
Utilization Low asset utilization rate; cumbersome offline workflow
Drastically improve asset utilization through CNIT’s Taoping Net; automated online workflow
6
How We Do It – Yunfa Net
Yunfa Net is a cloud-based content publication platform that combines
cloud computing with Internet of Things (IOT) to remotely deliver
advertising and other multimedia contents to digital display terminals
As of July 2015, a total of 70,000 terminals were connected to Yunfa Net
with monthly active terminals of 20,000
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1. Register/ Log in
How We Do It – Yunfa Net
2. Upload advertisement
content
3. Review & edit content
4. Publish content to designated terminals
8
How We Do It – Taoping Net
Taoping Net is an online exchange for out-of-home advertising resources
that connects small and medium corporate advertisers and individuals with
owners of networked digital display terminals
Taoping Net is scheduled to launch formally in the fall of 2015
9
CNIT Taoping Net
Asset Owner Asset Seeker
How We Do It – Taoping Net
1) Register on Taoping2) Package and list displays3) Sell time slots4) Manage orders
a) Search for displaysb) Send paymentsc) Upload and edit adsd) Result analysis
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How We Do It – Hardware
Left: Mainboard
Middle: P-Box
Right: Terminal
How We Sell
11
1.Sell brand
new integrated
solutions to
advertising
agencies
2.Partner with
original
equipment
manufacturers
3.Upgrade existing
digital displays
from off-line to
cloud-based
Why We Are Better
12
First mover in cloud-based new media
End-to-end new media ecosystem
Track record of providing location-based
public information solutions
Integrated cloud computing platform
High scalability and availability
Value-added big data intelligence
How We Make Money
13
Software license fees
Monthly platform fees
Transaction processing fees
Hardware sales
New Opportunities
14
In addition to our core business in new media advertising, we are also
capturing other cloud-based, innovative business opportunities
including(” CAT” means “Cloud-App-Terminal”) :
S2C service platform for conferences (Taohui Net)
Internet+ online education platform (CAT Education)
1x1 audio/video online training platform (CAT Training)
Our Milestones
15
2014 Transitioned into a cloud-based software solution provider
2012 Won Gold Medal at the 2012 International Invention Exhibition
2010 Listed among Forbes “China’s Top 20 Most Promising Enterprises”
2009 Listed among Deloitte’s Asia Pacific “Technology Fast 500”
2008 Listed on the NASDAQ Stock Exchange
2007 Constructed Asia’s largest land-port smart clearance system
2004 Founded China Information Technology Co., Ltd.
Our Transformation
16
2010 2011 2012 2013 2014
163.9
114.586.4 76.2 68.2
34.47.9
-89.6
-119.2
-29.2
Total Revenue ($ Mil) Net Income ($ Mil)
From hardware manufacturing to software development
From customized services to standardized products
From low margin/high DSO to high margin/low DSO
From asset heavy to asset light
From high to low cash use
Experienced Management
17
Chairman& CEO
CFO
President CTO
Jianghuai Lin
CEO of CNIT since 2006
Former President of Hong Kong United Development Group
Former Chairman and GM of iAPSEC Software Company Ltd.
Robin Yang, CFA, MBA
13 years of buy-side and sell-side experience in U.S. capital markets
Former Director of Research at Harbert Management Corporation
Former senior analyst at Jayhawk Capital Management
Zhiqiang Zhao
Extensive experience in corporate operation and HR management
Former Vice Chairman of iASPEC
Former Supervisor of Human Resources for Foxconn Technology Group
Zhiyao Yu
MS in Communication Software Network from Nanyang Technological University, Singapore
Former R&D Director of TopCloud
Former CTO of Eading Group
Equity Composition
18
33.7 million Shares outstanding as
of June 30, 2015
Management bought 3.0 million
shares @ $3.00/share in
November 2013
Management bought 1.4 million
shares @ $4.00/share in April 2014
46.6%
53.4%
Management (15.7 mil shares)Free Float (18.0 mil shares)
Tiffany Pan, IR Dept.Tel: +86 755 8831 9888 Email: ir@chinacnit.com
Cloud-App-Terminal Changes Our Life