China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

19
China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015

Transcript of China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

Page 1: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

China Information Technology(NASDAQ: CNIT)

Investor PresentationAugust 2015

Page 2: China Information Technology (NASDAQ: CNIT) Investor Presentation August 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.

Page 3: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

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

Page 4: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

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

Page 5: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

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

Page 6: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

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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

Page 7: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

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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

Page 8: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

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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

Page 9: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

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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

Page 10: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

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How We Do It – Hardware

Left: Mainboard

Middle: P-Box

Right: Terminal

Page 11: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

How We Sell

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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

Page 12: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

Why We Are Better

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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

Page 13: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

How We Make Money

13

Software license fees

Monthly platform fees

Transaction processing fees

Hardware sales

Page 14: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

New Opportunities

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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)

Page 15: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

Our Milestones

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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.

Page 16: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

Our Transformation

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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

Page 17: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

Experienced Management

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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

Page 18: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

Equity Composition

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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)

Page 19: China Information Technology (NASDAQ: CNIT) Investor Presentation August 2015.

Tiffany Pan, IR Dept.Tel: +86 755 8831 9888 Email: [email protected]

Cloud-App-Terminal Changes Our Life