Form 6-K China Information Techno For: Apr 22

---

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the month of April, 2016

Commission File Number 001-35722

CHINA INFORMATION TECHNOLOGY, INC.
(Translation of registrant’s name into English)

21^st Floor, Everbright Bank Building
Zhuzilin, Futian District
Shenzhen, Guangdong, 518040
People’s Republic of China
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F [X] Form 40-F [  ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [  ]

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ]

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: April 22, 2016	CHINA INFORMATION TECHNOLOGY, INC.
	By:	/s/ Jiang Huai Lin
		Jiang Huai Lin
		Chief Executive Officer

2

---

EXHIBIT INDEX

Exhibit	Description
99.1	Press Release, dated April 22, 2016

3

---

---

CNIT CUTS 2015 NET LOSS TO $7.5 MILLION FROM $29.2 MILLION IN 2014;

GROSS MARGIN RISES TO 37.96% FROM 27.15%

SHENZHEN, China, April 22, 2016 -- China Information Technology, Inc. (Nasdaq:CNIT), a leading provider of internet-based platforms and digital advertising technologies and services in China, today said that, for the year ended December 31, 2015, the company had a net loss of ($7,504,262), or ($.22) per basic share, on revenue of $10,284,868 compared to a net loss of ($29,231,347), or ($.96) per basic share, on revenue of $38,634,747 for the year ended December 31, 2014.

These figures, said CNIT, are the result of the company’s business transition, beginning in 2014, from an IT system integrations provider to the government sector to an internet-based solutions and services provider to private enterprises -- a role that enables higher sales margins and greater potential profitability. This transition included certain financial adjustments during 2015, including write-offs of receivables and intangible assets associated with the company’s discontinued government business as well as the disposal of certain traditional IT businesses and real estate assets, in order to reduce debt and improve working capital.

The company’s decrease in 2015 revenue was primarily due to a continued shifting of hardware production from its own factory over to OEM partners, resulting in hardware revenue decreasing to $4.95 million as compared to $22.63 million in 2014. Overall 2015 revenue was also reduced as a result of CNIT’s strategic transformation from a traditional IT business to a cloud-based business, producing a decrease in revenue for software and system integration services to $3.20 million and $1.01 million, respectively, in 2015, from $10.37 million and $4.82 million, respectively, in 2014.

However, during 2015 CNIT increased its gross margin to 37.96%, from 27.15% in 2014. This increase primarily resulted from the company's aforementioned shift from a hardware to a cloud-based technology business model.

The company’s net loss total for 2015 included a non-operating gain of $29,994,037 derived from the sale of Fuyong Industrial Park, a real estate property no longer vital to CNIT due to the company’s shift away from hardware production. CNIT utilized the proceeds from this sale to significantly reduce its short-term debt to $15.27 million at year-end, down from $51.82 million at the end of 2014, as well as to improve its working capital.

In the fourth quarter of 2015, the company disposed of the equity interests in Geo and Zhongtian, two subsidiaries of CNIT’s variable interest entity, iASPEC Geo Information Technology Company Limited. As a result, the operations of Geo and Zhongtian have been presented as discontinued operations for all periods in CNIT’s consolidated financial statements.

“We believe our 2015 results provide ample evidence that our transition to a leading cloud-based digital advertising provider is well underway,” said CNIT CEO and chairman, Mr. Jianghuai Lin. This transition, he said, has not only produced increased margins, reduced debt, eliminated unnecessary assets and increased working capital, but has also included several major agreements for sales of the company’s elevator-based digital advertising terminals.

---

The latest such agreements, announced on April 12, called for the sale of a minimum of 8,500 terminals to be installed in elevators in 20 major cities across China and will net CNIT at least $5.2 million in 2016, said Mr. Lin.

In addition, he said, these terminals are now penetrating new markets including educational software and conference training, expected to contribute meaningful high-margin revenue for CNIT this year and beyond.

Not only does the company receive sales revenue from its terminals, said Mr. Lin, it also collects recurring monthly maintenance and safety service revenue for the life of each unit.

On top of this, he said, the company can receive additional terminal-related revenue through customers’ use of CNIT’s Yunfa Net advertising delivery system.

Yunfa Net enables advertisers -- usually smaller companies or their advertising agencies -- to design ads on their PC or mobile app and transmit them automatically to the digital ad terminals of their choice across China. The system, which has proven to both cut the cost of advertising by as much as 50 percent and enable these ads to be easily targeted to a customer’s most likely customers, won the 2016 Golden Peacock Excellent Award as China’s leading innovation in digital advertising technology.

“We believe Yunfa Net, now acknowledged as among our country’s most efficient digital ad technologies, will continue to make a very important, high-margin revenue contribution for us -– and we expect this contribution to grow with each successive quarter.”

In addition, said Mr. Lin, the company will continue in 2016 to emphasize four other strategies, including tightly controlling company costs, reinforcing cash collection policies to shorten the company’s days of sales outstanding, streamlining purchase order management in order to reduce inventory, and obtaining new government subsidies to be used for developing and marketing additional high-margin cloud-based software solutions.

These measures, he said, combined with the company’s steadily increasing sales, should enable CNIT to become profitable by the fourth quarter of 2016.

Mr. Lin added that he believes the company’s current cash and cash equivalents, anticipated cash flows from operations in 2016, and additional availability under its borrowing facilities will be sufficient to meet CNIT’s operating and financial obligations for the remainder of the calendar year.

About China Information Technology, Inc.
China Information Technology, Inc. (NASDAQ: CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, city 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.en.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.

Iris Yan

Tel: +86-755-8370-4767

Email: [email protected]

http://www.en.chinacnit.com

or

Asia IR-PR

Jimmy Caplan

Tel: +512-329-9505

Email: [email protected]

or

Media Relations: Asia IR-PR

Rick Eisenberg

Tel: +212-496-6828

Email: [email protected]

---

CHINA INFORMATION TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

DECEMBER 31, 2015 AND 2014

Expressed in U.S. dollars (Except for share amounts)

		December 31			December 31
		2015			2014
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	3,786,846		$	6,689,848
Restricted cash		868,317			11,153,170
Accounts receivable, net		3,180,138			6,786,596
Bills receivable		-			358,273
Advances to suppliers		2,526,607			1,174,148
Inventories		2,141,093			3,959,031
Other current assets		5,412,720			10,773,310
Assets held for sale-current		-			13,032,000
Current assets from discontinued operations		13,272,186			30,349,676
TOTAL CURRENT ASSETS		31,187,907			84,276,052
Assets held for sale-noncurrent		-			20,270,434
Deposit for purchase of land use rights		14,020,901			14,799,874
Property, plant and equipment, net		8,372,961			8,921,397
Intangible assets, net		2,530,103			3,494,014
Goodwill		4,753,454			12,118,817
Deferred tax assets		460,237			4,270,042
Other non-current assets		4,766,141			-
Non-current assets from discontinued operations		-			31,255,179
TOTAL ASSETS	$	66,091,704		$	179,405,809
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term bank loans	$	15,272,986		$	51,823,869
Accounts payable		6,943,248			9,440,296
Bills payable		1,322,912			23,732,737
Advances from customers		2,651,156			1,183,733
Accrued payroll and benefits		396,026			938,086
Deposit for assets held for sale		-			13,032,000
Other payables and accrued expenses		4,570,298			6,952,957
Amounts due to related parties		141,972			851,262
Income tax payable		3,083,792			3,374,658
Derivative Liability – Warrants		1,156,386			-
Current liabilities from discontinued operations		-			28,989,570
TOTAL CURRENT LIABILITIES		35,538,776			140,319,168
Long-term bank loans		-			214,630
Amounts due to related parties		12,359			13,065
Deferred tax liabilities		86,332			66,951
Non-current liabilities from discontinued operations		-			213,186
TOTAL LIABILITIES		35,637,467			140,827,000
COMMITMENTS AND CONTINGENCIES
Ordinary shares, par $0.01; shares issued and outstanding, 2015; 120,000 shares; 2014: 475,000 shares		360,000			1,425,000
EQUITY
Ordinary shares, par $0.01; authorized capital 100,000,000 shares; shares issued and outstanding, 2015: 39,211,364 shares; 2014: 31,768,875 shares		416,546			335,271
Treasury stock, 2015: 1,402,448 shares; 2014: 717,448 shares		(7,117,500	)		(4,290,000	)
Additional paid-in capital		144,000,767			126,862,049
Reserve		13,812,095			14,755,946
Deficit earnings		(154,979,095	)		(142,910,476	)
Accumulated other comprehensive income		24,551,707			24,755,457
Total equity of the Company		20,684,520			19,508,247
Non-controlling interest		9,409,717			17,645,562
Total equity		30,094,237			37,153,809
TOTAL LIABILITIES AND EQUITY	$	66,091,704		$	179,405,809

---

CHINA INFORMATION TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED)

YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

Expressed in U.S. dollars (Except for share amounts)

		2015			2014			2013
Revenue – Hardware	$	4,953,139		$	22,628,612		$	46,114,109
Revenue – Software		3,200,905			10,366,560			2,923,397
Revenue - System integration		1,012,088			4,822,003			5,422,151
Revenue – Others		1,118,736			817,572			960,174
TOTAL REVENUE		10,284,868			38,634,747			55,419,831
Cost – Hardware		2,910,334			18,769,338			38,829,515
Cost - Software		1,267,834			4,086,717			1,559,861
Cost - System integration		1,745,647			4,480,388			4,733,815
Cost – Others		457,390			809,947			743,972
TOTAL COST		6,381,205			28,146,390			45,867,163
GROSS PROFIT		3,903,663			10,488,357			9,552,668
Administrative expenses		11,223,502			20,837,181			88,699,489
Research and development expenses		3,446,867			1,477,246			2,190,074
Selling expenses		2,661,545			4,240,097			4,893,234
Impairment of property, plant and equipment		4,616,679			827,319			29,976,990
Impairment of intangible assets and goodwill		8,918,427			7,015,727			2,008,249
LOSS FROM OPERATIONS		(26,963,357	)		(23,909,213	)		(118,215,368	)
Subsidy income		501,404			676,159			1,491,280
Gain on sale of assets		29,994,037			-			-
Other income (loss), net		776,233			(407,616	)		1,241,666
Interest income		76,716			408,121			447,586
Interest expense		(3,116,777	)		(5,858,770	)		(4,934,479	)
Warrant expense		(5,657,988	)		-			-
Loss from continuing operations before income taxes		(4,389,732	)		(29,091,319	)		(119,969,315	)
Income tax (expense ) benefit		(4,305,028	)		4,599,559			(1,731,145	)
Loss from continuing operations		(8,694,760	)		(24,491,760	)		(121,700,460	)
Less: Net (income) loss attributable to the non-controlling interest		(308,473	)		404,662			3,188,700
NET LOSS ATTRIBUTABLE TO THE COMPANY - continuing operations	$	(9,003,233	)		(24,087,098	)	$	(118,511,760	)
Discontinued operations (Note 15)
Income (loss) from discontinued operations before income taxes (including pretax gain on sale of Geo: $7.0 million in 2015 and pretax loss on sale of Zhongtian: $3.3 million in 2015)		1,667,853			(5,049,880	)		(340,167	)
Income tax expense		(168,882	)		(210,658	)		(165,400	)
Income (loss) from discontinued operations		1,498,971			(5,260,538	)		(505,567	)
Less: Net (income) loss attributable to the non-controlling interest		-			116,289			(219,496	)
NET INCOME ( LOSS) ATTRIBUTABLE TO THE COMPANY-discontinued operations	$	1,498,971			(5,144,249	)	$	(725,063	)
NET LOSS	$	(7,195,789	)		(29,752,298	)	$	(122,206,027	)
NET LOSS ATTRIBUTABLE TO THE COMPANY	$	(7,504,262	)		(29,231,347	)	$	(119,236,823	)
(Loss) earnings per share - Basic and Diluted
CONTINUING OPERATIONS
Basic	$	(0.26	)	$	(0.79	)	$	(4.33	)
Diluted	$	(0.26	)	$	(0.79	)	$	(4.33	)
DISCONTINUED OPERATIONS
Basic	$	0.04		$	(0.17	)	$	(0.03	)
Diluted	$	0.04		$	(0.17	)	$	(0.03	)
NET LOSS PER SHARE ATTRIBUTABLE TO THE COMPANY
Basic	$	(0.22	)	$	(0.96	)	$	(4.36	)
Diluted	$	(0.22	)	$	(0.96	)	$	(4.36	)

---

CHINA INFORMATION TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013

Expressed in U.S. dollars

		2015			2014			2013
OPERATING ACTIVITIES
Net loss	$	(7,195,789	)	$	(29,752,298	)	$	(122,206,027	)
Adjustments to reconcile net loss to net cash used in operating activities from continuing operations:
(Income) loss from discontinued operations, net of income taxes	$	(1,498,971	)	$	5,260,538		$	505,567
Provision for losses on accounts receivable and
other current assets		2,659,499			6,398,463			67,038,645
Impairment of intangible assets and goodwill		8,918,427			7,015,727			2,008,249
Provision for obsolete inventories		274,663			3,808,307			881,916
Depreciation		1,665,257			2,135,644			7,839,674
Amortization of intangible assets and land use rights		876,237			917,780			1,227,743
(Gain) loss on sale of property and equipment and land use rights		(30,005,007	)		(6,550	)		79,197
Loss on disposal of inventories		-			476,597			-
Stock-based payment compensation for consulting services		98,483			120,167			-
Stock-based compensation		102,282			81,615			6,900,000
Impairment of property, plant and equipment		4,616,679			827,319			29,976,990
Change in deferred income tax		3,761,084			(4,603,763	)		1,836,586
Warrant expense		5,657,988			-			-
Changes in operating assets and liabilities, net of effects of business acquisitions and dispositions:
(Increase) decrease in accounts receivable		2,914,918			(1,497,285	)		3,957,348
Decrease in inventories		1,546,570			6,019,174			657,081
Decrease (increase) in other receivables and prepaid expenses		(1,089,481	)		(3,435,388	)		(3,759,271	)
Decrease (increase) in advances to suppliers		(1,708,552	)		5,781,743			(2,209,123	)
(Increase) decrease in restricted cash		9,566,303			(1,515,573	)		1,013,285
Increase (decrease) in amounts due to/from related parties		(1,088,001	)		1,126,768			538,537
(Decrease) increase in other payables and accrued expenses		(2,736,926	)		(3,808,563	)		3,150,366
(Decrease) increase in advances from customers		1,598,944			(2,017,504	)		315,628
(Decrease) increase in accounts payable and bills payable		(24,134,831	)		(6,018,929	)		(10,354,585	)
Increase (decrease) in income tax payable		(118,973	)		171,552			(41,816	)
Net cash used in continuing operations		(25,319,197	)		(12,514,459	)		(10,644,010	)
Net cash provided by (used in) operating activities from discontinued operations		(595,404	)		(115,066	)		(733,530	)
Net cash used in operating activities		(25,914,601	)		(12,629,525	)		(11,377,540	)
INVESTING ACTIVITIES
Deposit (paid) received for assets held-for sale		(20,717	)		13,024,000			-
Deposit refunded of land use rights		-			3,355,088			1,437,368
Cash acquired in Biznest acquisition		-			67,506			-
Proceeds from sale of property and equipment		55,101			6,561			226,109
Consideration paid for acquisition of Biznest		(1,488,969	)		(5,951,968	)		-
Investment in Geo		-			(128,901	)		-
Capitalized and purchased software development costs		(66,870	)		(1,353,028	)		(95,162	)
Purchases of property and equipment		(3,004,209	)		(529,053	)		(1,721,113	)
Investment in Zhongtian		-			(638,723	)		(378,144	)
Cash received for sale of assets held for sale		45,052,000			-			-
Net cash provided by (used in) investing activities from continuing operations		40,526,336			7,851,482			(530,942	)
Net cash provided by (used in) investing activities from discontinued operations		1,558,581			(1,530,773	)		(2,697,359	)
Net cash provided by (used in) investing activities		42,084,917			6,320,709			(3,228,301	)
FINANCING ACTIVITIES
Borrowings under short- term loans		44,584,103			58,862,064			92,580,008
Common stock issued for cash		12,786,353			3,683,028			9,000,000
Decrease (increase) in restricted cash in relation to bank borrowings		543,300			256,427			(610,153	)
Borrowings under long-term loans		-			-			350,534
Repayment of short-term loans		(79,952,564	)		(56,153,075	)		(87,876,246	)
Repurchase of ordinary shares		(1,310,184	)		(1,290,000	)		(3,000,000	)
Repayment of long-term loans		(97,751	)		(94,279	)		(147,923	)
Cash paid to warrant holders		(542,806	)		-			-
Net cash provided by (used in) financing activities from continuing operations		(23,989,549	)		5,264,165			10,296,220
Net cash provided by (used in) financing activities from discontinued operations		(147,237	)		1,131,223			4,422,085
Net cash (used in) provided by financing activities		(24,136,786	)		6,395,388			14,718,305
Effect of exchange rate changes on cash and cash equivalents		564,125			19,027			223,130
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(7,402,345	)		105,599			335,594
CASH AND CASH EQUIVALENTS, BEGINNING		11,189,191			11,083,592			10,747,998
CASH AND CASH EQUIVALENTS, ENDING $		3,786,846		$	11,189,191		$	11,083,592
Less cash and cash equivalents from discontinued operations	$	-		$	4,499,343		$	5,038,900
CASH AND CASH EQUIVALENTS FROM CONTINUING OPRATIONS, end of period $		3,786,846		$	6,689,848		$	6,044,692
Supplemental disclosure of cash flow information:
Cash paid during the year
Income taxes		188,932		$	382,741		$	405,948
Interest		3,769,498		$	6,593,549		$	5,537,477

---

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Tquila announces launch and first close of $60 million Tquila Paloma Fund, marking milestone in tech venture investment
• INVESTOR ACTION NOTICE: The Schall Law Firm Encourages Investors in bluebird bio, Inc. with Losses of $100,000 to Contact the Firm
• ClimeCo Launches 4Nature, a Set of High-Profile, Large Scale Decarbonization, Biodiversity Restoration and Social Impact Projects in Unique Global Locations