Taoping Inc. (NASDAQ: TAOP)

Taoping Inc. is a provider of cloud based technologies for Smart City IoT platforms elevator products and related services digital advertising delivery and other internet based information systems in China. The company offers a broad portfolio of software and hardware with fully integrated solutions including information technology infrastructure, internet enabled display technologies, and IoT platforms to customers in government, education, residential community management, media, transportation, and other private sectors. Its solutions are designed to improve operational efficiency, enhance public safety, and increase revenue generation for clients across multiple sectors.

Taoping Inc. generates revenue from the sale of hardware products, software products, system integration services, and maintenance and support services. The company also earns fees from software as a service offerings, from elevator sales installation contracts, and from maintenance repair and upgrade agreements. Revenue is derived from both private sector customers and public sector entities. Additionally the company receives income from advertising services delivered through its cloud based new media sharing platform after the acquisition of Taoping New Media Co Ltd.

The company operates through the following segments.

• Cloud based Technology (CBT) segment - It includes the company's cloud based products, high end data storage servers, and related services sold to private sectors including new media, healthcare, education, residential community management, and other industries and applications. The segment generates revenue from sales of hardware and software solutions with proprietary software and content and from designing and developing software products customized for private sector customers needs for a fixed price. Revenue and cost of revenue of high end data storage servers are included in this segment. Advertising services are part of the CBT segment after the acquisition of Taoping New Media Co Ltd with advertisements delivered to ads display terminals and vehicular ads display terminals through the company's cloud based new media sharing platform. The segment also provides big data analysis services that help customers optimize advertisement placement and improve asset utilization of display terminals.

• Traditional Information Technology (TIT) segment - The TIT segment includes the company's project based technology products and services sold to the public sector. The solutions the company has sold primarily include Geographic Information Systems, Digital Public Security Technology, and Digital Hospital Information Systems. In this segment the company generates revenue from sales of hardware and system integration services. As a result of the business transformation the TIT segment is gradually being phased out in 2021. The segment continues to support legacy projects for government agencies while the company shifts focus to higher growth areas.

• Smart Elevator (SE) segment - Following the acquisition of Skyladder Group in November 2025 the company added the Smart Elevator (SE) segment. As a provider of elevator services the company provides services throughout the entire elevator lifecycle including sales, installation, repair, cloud based maintenance, renovation, and upgrades. The segment serves a diverse user base including governments, businesses, and households. In this segment the company generates revenue from elevator sales and installation contracts as well as maintenance, repair, and other service agreements. The SE segment also offers cloud based supervision capabilities that collect real time elevator operational data through intelligent sensors to enhance safety efficiency and operational intelligence.

Taoping Inc. faces competition from many small IT service companies in China that offer one off software packages but lack integrated solutions combining technology platform resource exchange and sharing and big data services. In the new media industry competitors include 56iq.com, Fujian Star net Communication Co Ltd, Shanghai View Show Technology Co Ltd, and Maipu Communications Technology Co Ltd. After the acquisition of Taoping New Media Co Ltd the company also competes with advertising agencies such as Focus Media, Air Media, and Vision China in certain geographic regions. The company believes it has several advantages including its integrated ecosystem solutions that combine technology platform resource exchange and sharing and big data services which help customers improve operational efficiency, reduce labor costs, maximize asset utilization, and increase revenue. Its technology solution is highly scalable, available, and flexible because it is built on ground up cloud computing technology allowing easy scaling to handle growing data and workloads while maintaining high availability. The company owns its entire technology stack providing a strong security fortress against intrusions and benefiting from over ten years of experience securing networks for public sector clients such as police stations, public security bureaus, fire departments, traffic bureaus, police stations, human resource departments, urban planning boards, civic administrations, land resource administrations, mapping and surveying bureaus, and the Shenzhen General Station of Immigration Frontier Inspection. Additionally Taoping Inc. has an operational agreement with China's Internet Oversight Board to inspect and filter advertisement content before it is displayed on its network. Finally the combination of its digital network with physical assets creates a high barrier to entry for rivals who would need substantial time and capital to replicate the company's nationwide physical network of cloud based display terminals.

Taoping Inc. serves a diverse customer base that includes government agencies such as the China Ministry of Public Security, provincial public security bureaus, fire departments, traffic bureaus, police stations, human resource departments, urban planning boards, civic administrations, land resource administrations, mapping and surveying bureaus, and the Shenzhen General Station of Immigration Frontier Inspection. Private sector customers comprise elevator maintenance companies, residential community management agencies, advertising agencies, auto dealerships, and educational institutes. Among the company's notable customers are Sichuan Yunkong Transportation Technology Co Ltd, Shenzhen Tianxin Langming Technology Co Ltd, Wuhan Nanbei Xingyou Network Technology Co Ltd, Shenzhen Yueshi Technology Co Ltd, Wuhan Jinyi Youshi Network Technology Co Ltd, Yayu Technology (Jiangsu) Co Ltd, Guangzhou Qiaocheng Information Technology Co Ltd, Guangxi Wancang Technology Group Co Ltd, Shenzhen Chuangzhi Tiancheng Technology Co Ltd, Shenzhen Beidian Zhengguang Technology Co Ltd, Fujian Haixia Xingyun Information Technology Co Ltd, Fuzhou Shenpeng Technology Co Ltd, Guangzhou Shengzhuo Intelligent Technology Co Ltd, and Shenzhen Dashan Intelligent Technology Co Ltd. The company also works with various regional transportation authorities and smart city developers to deploy its cloud based display terminal networks and elevator supervision systems across China.