China TransInfo Technology Corp., a leading provider of public transportation information systems technology and comprehensive solutions in the People’s Republic of China (“PRC”), has announced that it has entered into a 5-year taxi advertisement placement agreement with Dalian Liyang Media Limited (“Dalian Liyang”). Dajian Zhitong will receive no less than RMB 18 million (approximately $2.63 million) per year based on the agreement. Dalian is a regional economic center in Northeast China with a population of over six million.
According to the agreement, Dajian Zhitong has authorized Dalian Liyang to exclusively sell advertisement space on taxi rooftop LED screens to third parties. Dajian Zhitong will receive fixed annual payments of RMB 18 million (approximately $2.63 million) from Dalian Liyang. In addition, Dajian Zhitong will also share 30% of the advertisement revenue exceeding RMB 18 million per year.
Prior to this agreement with Dalian Liyang, Dajian Zhitong formed a partnership with China Mobile Ltd. Dalian Branch (China Mobile; NYSE: CHL) to jointly invest in the installation of in-taxi GPS security surveillance devices and GPS location application systems in 6,000 taxis in Dalian by March 2009. The agreement between Dajian Zhitong and Dalian Liyang will be valid for five years, starting from the completion of the installation of GPS location application systems in 3,000 taxis, which is expected to be completed by early 2009.
Dajian Zhitong is a leading taxi media operator in Dalian, Liaoning province. Dajian Zhitong holds exclusive rights to sell advertisement space on taxi rooftops and administer real time GPS data activities including a GPS- based taxi call center, a GPS-based real time taxi alarm system, and a GPS- based taxi driver navigation system for about 10,000 taxis in Dalian for a period of 10 years, starting from August 2008. China TransInfo holds 85% ownership of Dajian Zhitong. Dalian Liyang is one of Dalian’s leading media and advertisement companies.
“We are very pleased to finalize a long term cooperative relationship with Dalian Liyang. As we have just initiated our partnership with China Mobile to jointly install in-taxi LED GPS security surveillance devices in Dalian, this new agreement with Dalian Liyang will ensure our long term success and profitability in the city,” said Mr. Shudong Xia, CEO of China TransInfo. “We look forward to increasing our brand recognition and more actively deploying our dynamic and innovative taxi media advertising platform in Dalian.”