Business
TAOP Announces Agreement with Asia Taoping to Develop South East Asia and Oceania Market，and Announces A New Revenue Stream for 2020
SHENZHEN, China, Nov. 21, 2019 (GLOBE NEWSWIRE) -- Taoping Inc. (NASDAQ: TAOP, the “Company”), a leading provider of internet-based smart display screens, and
About this update from Taoping Inc.
[{"type":"text","content":"SHENZHEN, China, Nov. 21, 2019 (GLOBE NEWSWIRE) -- Taoping Inc. (NASDAQ: TAOP, the “Company”), a leading provider of internet-based smart display screens, and a new-media ecosystem that enable targeted advertising and online retails, today announced that the Company has entered into an agreement (the “Agreement”) with Asia Taoping Pte. Ltd. (“Asia Taoping”) for the Company to become a 10% equity owner of Asia Taoping. Incorporated in 2018, Asia Taoping is a company based in Singapore. On December 7, 2018, the Company entered into a strategic cooperation agreement with Asia Taoping to develop South Asia and Southeast Asia market.\n Under the terms of the Agreement, the Company granted Asia Taoping a license to Taoping’s software, patents and trademarks to develop Taoping’s new media ecosystem in South East Asia and Oceania countries, including, among others, Singapore, Malaysia, Indonesia and Australia, and Asia Taoping will be a regional partner to physically roll out Taoping Network of smart display screens in these countries. As is practiced in China, the Company will provide its local partners like Asia Taoping with smart display screens, software, online media operations, technical support and system upgrade services, while Asia Taoping will be in charge of local media operations. Separately, Taoping’s new media ecosystem in China has expanded to over 160 cities. Over the last few years, TAOP has provided technical support services for its local city partners for free to encourage healthy growth of Taoping Network and Taoping Alliance. Now with the majority of city partners being profitable, the Company announces its plan to start to collect a technical service fee beginning in year 2020. The technical service fee is a daily fee for each advertisement published on each Taoping smart screen. With healthy growth of the new media ecosystem, the Company expects the fee will be a recurring and growing revenue stream for TAOP in operating this new media ecosystem. “We are pleased to expand our relationship with Asia Taoping, our local partner for South East Asia and Oceania countries. The Agreement signals our first step for international expansion of our new media ecosystem. We thank our investors for their patience and understanding that allowed us to develop a healthy new media ecosystem first and to collect recurring revenue s...