CNIT to Provide Cloud-Based Solutions to the $27 Billion Beauty Salon Industry
SHENZHEN, China, April 29, 2015 /PRNewswire/ -- China Information Technology, Inc. (the "Company" or "CNIT") (Nasdaq GS: CNIT), a leading provider of integrated cloud-based platform, exchange, and big data solutions in China, today announced that it has entered into a strategic agreement with Sichuan Lianguang Technology Co., Ltd. ("Lianguang Technology") to provide cloud-based new media solutions to beauty salons nationwide.
According to the agreement, CNIT will provide integrated solutions including cloud platform, software and new media terminals to Lianguang Technology, while Lianguang Technology in turn will market and sell such solutions to its nationwide network of advertising agencies.
The Company believes that the CNIT new media solutions will transform the beauty salon experience by providing customers with one-stop-shop services, from booking appointments from their smartphones and selecting specific beauty products and services at salons, to sharing reviews and recommendations with friends after service. Customers can also receive beauty tips through linked smartphone applications and watch entertainment programs on CNIT's new media terminals while at salons.
Meanwhile, it is expected that the CNIT new media solutions will transform salon management processes by connecting offline operations with online platforms. The CNIT solution allows salons to keep track of their beauty product sales and consumption and place orders with their suppliers over the Internet. It also enables beauty salons to stay in continued close contact with their customers and proactively make beauty product and service recommendations through smartphone applications.
Beauty salons in China are in urgent need of cloud-based new media solutions to adapt to the Internet age and meet fast-changing customer demand. Data from the National Bureau of Statics shows that industry-wide revenue of beauty salons in China reached RMB168.0 Billion (approximately $27.1 Billion) in 2013 and continues to grow rapidly. Nationwide average spending at beauty salons was RMB21.3 (approximately $3.4) per urban capita. For every ten thousand of the urban population, there were 32 beauty salons in 2013. However, only 5.7% of all the salons have taken advantage of the cloud-computing technology in their operation management.
Lianguang Technology plans to install approximately 500,000 units of CNIT's new media terminals at beauty salons across China in the next five years, connecting over 250 million users. Located in Mianyang City and backed by local investment firms, Lianguang Technology has 10 years of operating history servicing outdoor and Internet media companies. It plans to establish a high-tech beauty flagship store to showcase CNIT's technological capabilities and will also market CNIT's new media solutions in collaboration with regional advertising agencies in over 300 cities in China.
Mr. Mingshu Zhao, Chairman and CEO of Lianguang Technology, commented, "We are honored to become CNIT's strategic partner. CNIT's cutting-edge cloud-based platform and applications will serve as the technological foundation of a new offline-to-online cloud network for the beauty salon industry. Working together, we will transform the way beauty salons connect with and service their customers."
Mr. Jiang Huai Lin, Chairman and CEO of CNIT, commented, "We are excited to have Lianguang Technology as our strategic partner. With its domain expertise in the beauty salon industry, Lianguang Technology will help expand our market reach in Sichuan province and other regions in Southwestern China first, and then to beauty salons all over China. We believe our technological capabilities combined with Lianguang Technology's operational expertise will add significant value to beauty salon owners and customers alike."
About China Information Technology, Inc.
China Information Technology, Inc. (CNIT) is on a mission to make advertising accessible and affordable for businesses of all sizes. CNIT is a leading Internet service company that provides cloud-based platform, exchange, and big data solutions enabling innovation and smart living in the education, health care, new media, finance and transportation sectors. Through continuous innovation, CNIT is leveraging 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 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.
For further information, please contact:
China Information Technology, Inc.
Robin Yang, CFO
Tel: +86-755-8831-9888
Email: [email protected]
Grayling
Shiwei Yin
Investor Relations
Tel: +1.646.284.9474
Email: [email protected]
SOURCE China Information Technology, Inc.
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