CNIT Announces 2016 Financial Results

SHENZHEN, CHINA / ACCESSWIRE / April 28, 2017 / China Information Technology, Inc. (CNIT), a provider of cloud-app technologies for Internet-of-Things (IoT) platforms and internet-based ad and information distribution systems in China, today reported that, for the year ended December 31, 2016, the company had revenue of $10,193,590, a 1 percent decrease on revenue of $10,284,868 in 2015. This decrease was mainly due to a year-over-year drop of about $1.5 million in revenue contributed by CNIT’s government-oriented IT systems business – a segment the company continues to de-emphasize – offset in large part by increased revenue of about $1.4 million contributed by CNIT’s privately-focused cloud-based technology solutions segment. As a result, however, of a year-over-year increase in cost of revenue of approximately $1.2 million, gross profit as a percentage of revenue for 2016 fell to 25.4 percent from 38.0 percent in the prior year. Nevertheless, in 2016, CNIT cut its loss from operations to $14,577,928, a 46 percent reduction from its 2015 loss from operations of $26,963,357. This improvement resulted primarily from year-over-year decreases of roughly $2.9 million in administrative expenses, $1.3 million in selling expenses, $0.4 million in R&D expenses, and $4.5 million in impairment of intangible assets and goodwill. Due to assorted non-recurring factors, though, the company had a net loss in 2016 of $18,170,601, or ($.45) per share, compared to a net loss of $7,504,262, or ($.22) per share, in 2015. The most prominent of these factors impacting 2016’s bottom line results was the company’s loss for that year on sale of deposits for land use rights of $2.8 million versus $0 in 2015. The most prominent factors mitigating CNIT’s 2015 net loss was the sale in that year of the company’s factory real estate property, which resulted in a gain on sale of assets of approximately $30.0 million versus $0 in 2016, as well as the company’s 2015 income from discontinued operations of $1.5 million versus $0 in 2016. CNIT reduced its short-term debt to $7.80 million at year-end 2016, from $15.27 million at the end of 2015. The company’s cash on hand at the end of 2016 was $3.75 million compared to $3.79 million a year earlier. Among the company’s most important milestones in 2016, said CNIT, was its commercialization of a cloud-based new media ecosystem comprised of a cloud platform, proprietary intelligent display terminals, and a proprietary USB adaptor that easily transforms any kind of display terminal into a cloud-based IoT terminal and links it to CNIT’s cloud platform. This, in turn, allows this terminal to access the company’s Yunfa Net advertising content delivery system (www.cnitiot.com), which permits a customer to create reduced-cost ads on a PC or mobile app, instantly transmit them to the terminal, and receive feedback from the terminal on which ads it is displaying. These features enable customers to precisely measure the effectiveness of an ad upon a targeted audience. As a result of this offering, said CNIT, both the number of subscribers to Yunfa Net and the digital ad terminals connected to the company’s cloud network in 2016 increased significantly. Regarding 2017, said CEO Mr. Jianghuai Lin, the company’s steady migration to higher-margin cloud-based solution opportunities like Yunfa Net and its recently introduced IoT elevator safety system, Yunti Guard, should allow CNIT to achieve “break-even status or moderate profitability in the second half of the year.” Mr. Lin added that he believes the company’s current cash and cash equivalents, anticipated cash flows from operations in 2017, and additional...

CNIT Shares Transfer Today to Nasdaq Capital Market; Company Granted Additional 180 Day Period to Meet Minimum Bid Requirement...

SHENZHEN, CHINA / ACCESSWIRE / April 19, 2017 / China Information Technology, Inc. (Nasdaq:CNIT), a provider of cloud-app technologies for Internet-of-Things (IoT) platforms and internet-based ad and information distribution systems in China, today announced that the Nasdaq Stock Market has approved the company’s application to list its ordinary shares on the Nasdaq Capital Market. These shares, which have been trading on the Nasdaq Global Select Market, will begin trading under the same symbol, CNIT, on the Nasdaq Capital Market at the opening of business today. Additionally, Nasdaq has determined that CNIT is eligible for an additional 180 calendar day period, or until October 16, 2017, to meet Nasdaq’s minimum $1 bid price per share requirement. This determination was based on CNIT meeting all requirements for initial listing on the Capital Market with the exception of the bid price requirement, and on the company’s written notice of its intention to cure this deficiency during the additional 180-day compliance period by effecting a reverse stock split, if necessary. In order for CNIT to regain compliance, the minimum $1 bid price would need to be maintained for a minimum of 10 consecutive business days at any time during the 180-day period. Should the company elect to implement a reverse stock split, it would be required to complete this split no later than ten business days prior to October 16, 2017. If for any reason CNIT does not regain compliance by this date, Nasdaq would provide written notification that the company’s securities will be delisted. At that time, CNIT could file an appeal and a compliance plan with the Nasdaq Hearings Panel, which would have the option of granting the company an additional time period in which to regain compliance. The company, however, will consider all available options to resolve the minimum bid deficiency and regain compliance during the second compliance period. About China Information Technology, Inc. China Information Technology, Inc. (CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, elevator 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://www.chinacnit.com. Safe Harbor Statement This press release 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...

TAKUNG REPORTS $1.90 BILLION IN ONLINE TRADING TRANSACTIONS AND ADDS NINE NEW LISTINGS IN MARCH 2017; Company Expects to Expand Product Offerings in 2017...

Hong Kong, April 11, 2017 — Takung Art Co., Ltd. (NYSE:TKAT), an online platform for acquiring shared ownership units in Asian and other fine art, jewelry and precious gems, today said it processed transactions totaling US$1.90 billion in the 23-day trading month of March 2017, a 494 percent increase on total transactions of US$319.36 million recorded in the 21-day trading month of March 2016. Total trading transaction value in the first quarter of 2017 was US$4.74 billion, an increase of 483 percent on total transactions of US$812.79 million in the like year-ago period. Takung added nine new listings in March 2017, bringing the total number of artworks trading on its platform to 199. As reported in the company’s 2016 annual report, and noted in its recent conference call to investors, the platform’s rising transaction volume and strong liquidity have helped the company maximize total artwork listings. This, in turn, maximizes both listing and management fees, which together contributed two-thirds of Takung’s revenue in 2016. “With a well-established and active trading platform,” said CEO Di Xiao, “we expect the Takung program to expand in 2017 to include even more emerging artists and artwork, as well as non-art-related product offerings for which we believe there will be considerable interest among our traders. Our focus is always to provide trading and ownership opportunities to our target audience, China’s burgeoning middle class.” Since December 2013, Takung has provided a way for art collectors and investors to buy and sell ownership units in valuable paintings, calligraphies, jewelry and precious gems. Takung’s unique approach is to divide selected artwork into equal ownership units based on its appraised value. Traders can then buy and sell these units online via a client app available for download from the company’s commercial website. While most of the traders on the platform are currently located in mainland China, Takung announced last year an expansion of operations to increase its trader base with residents of Russia, Mongolia, Australia and New Zealand. Currently there are two types of listings on the Takung site – an individual artwork or a portfolio of several pieces. Most of the listed artworks trade actively and have shown significant appreciation following their initial sale and introduction on the site. Each listing – with its initial offering price and current price and value – can be found on Takung’s corporate website at http://www.takungart.com/portfolio/listed-artwork. ABOUT TAKUNG ART CO., LTD: www.takungart.com Based in Hong Kong, Takung Art Co., Ltd. is an online trading platform for acquiring shared ownership in Asian and other fine art, jewelry and precious gems. This proprietary platform allows collectors and investors – including those with modest financial resources — to buy and sell units of these assets and participate in the booming Asian art market. The company’s shared-ownership business model significantly expands the number of interactions between sellers and buyers of fine art far beyond those generated by art galleries and auction houses alone. Takung operates its online trading platform via three wholly-owned subsidiaries, Hong Kong Takung Assets and Equity of Artworks Exchange Co. Ltd., Takung (Shanghai) Co., Ltd., and Takung Cultural Development (Tianjin) Co., Ltd. FORWARD-LOOKING STATEMENTS This press release may contain projections or other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning...