FingerMotion Inc. (FNGR) Contract with Provincial
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Posted On: 05/24/2021 3:48:57 PM
FingerMotion Inc. (FNGR) Contract with Provincial China Mobile Authority Set to Boost Profit Margins
- FingerMotion, a U.S.-based communications technology company focused on China’s enormous marketplace, is steadily building partnerships to help it grow a potential for a billion users
- The company’s latest contract is with China Mobile Fujian, a provincial mobile information service operator
- FingerMotion expects the volume-based SMS agreement to boost its gross profit margin by about 30 percent and potentially lead to additional, similar agreements
- FingerMotion also demonstrated its promise when it secured a collaborative agreement with insurance titan Pacific Life Re that will allow FingerMotion to serve as Pacific Life’s data provider in China
Mobile data and services innovator FingerMotion (OTCQX: FNGR) has taken another step toward rich communication services (“RCS”) and big-data insights expansion in China’s hot market for data applications this year.
The company, which possesses one of only a handful of licenses to access and analyze the mobile data of telecommunications giants China Unicom and China Mobile customers, announced May 18 that it has entered an agreement with China Mobile Fujian that is expected to bring about 30 percent improvement to FingerMotion’s gross margin on its SMS (message texting) business, according to the announcement (https://nnw.fm/Kip9h).
China Mobile Fujian has about 30 million or more online subscribers, which is about 70 percent of the market share in the province of Fujian. The announcement states that large provincial mobile information service operators in China are provisioning resources to take advantage of a marketplace anticipating rapid growth with the introduction of 5G wireless networks, and they may look to FingerMotion SMS subsidiary JiuGe “for guidance and assistance.”
JiuGe was a key part of the contract negotiations between FingerMotion and China Mobile Fujian and expects to continue to secure new contracts with China Mobile. China Mobile and China Unicom’s customer base represents over 1.1 billion phones.
“Our focus over the past year was on improving margins,” FingerMotion CEO Martin Shen stated. “This volume-based agreement is expected to increase our margins from 6.1% to approximately 30% and is a testament to our incredibly talented team that continues to impress our business partners. With SMS demand remaining strong, we are able to meet the new pressures through operational efficiencies but continue to be limited by the capital required to adequately fund operations.”
FingerMotion’s core competency is in mobile payment and recharge platform solutions in China, but as the user base of its primary business continues to grow the company is bringing new value-added technologies to market in order to establish an ecosystem of users with high engagement rates.
The availability of more than a billion Chinese consumers’ data to FingerMotion drew the attention of insurance industry giant Pacific Life’s reinsurance division, which sealed a collaborative agreement with FingerMotion in January that essentially makes FingerMotion the data provider for Pacific Life as it looks for growth opportunities in the Chinese insurance industry (https://nnw.fm/qt7Pq).
The data services provided by FingerMotion will be able to serve as a proxy for a credit score system in the country. FingerMotion’s Sapientus database helps derive predictive behavior analytics from the data the company obtains to anticipate consumer habits.
The company expects to file its year-end financial report by the end of the month, and predicts annual revenues will top $16 million (https://nnw.fm/Jy2b8).
For more information, visit the company’s website at www.FingerMotion.com.
NOTE TO INVESTORS: The latest news and updates relating to FNGR are available in the company’s newsroom at https://nnw.fm/FNGR
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
- FingerMotion, a U.S.-based communications technology company focused on China’s enormous marketplace, is steadily building partnerships to help it grow a potential for a billion users
- The company’s latest contract is with China Mobile Fujian, a provincial mobile information service operator
- FingerMotion expects the volume-based SMS agreement to boost its gross profit margin by about 30 percent and potentially lead to additional, similar agreements
- FingerMotion also demonstrated its promise when it secured a collaborative agreement with insurance titan Pacific Life Re that will allow FingerMotion to serve as Pacific Life’s data provider in China
Mobile data and services innovator FingerMotion (OTCQX: FNGR) has taken another step toward rich communication services (“RCS”) and big-data insights expansion in China’s hot market for data applications this year.
The company, which possesses one of only a handful of licenses to access and analyze the mobile data of telecommunications giants China Unicom and China Mobile customers, announced May 18 that it has entered an agreement with China Mobile Fujian that is expected to bring about 30 percent improvement to FingerMotion’s gross margin on its SMS (message texting) business, according to the announcement (https://nnw.fm/Kip9h).
China Mobile Fujian has about 30 million or more online subscribers, which is about 70 percent of the market share in the province of Fujian. The announcement states that large provincial mobile information service operators in China are provisioning resources to take advantage of a marketplace anticipating rapid growth with the introduction of 5G wireless networks, and they may look to FingerMotion SMS subsidiary JiuGe “for guidance and assistance.”
JiuGe was a key part of the contract negotiations between FingerMotion and China Mobile Fujian and expects to continue to secure new contracts with China Mobile. China Mobile and China Unicom’s customer base represents over 1.1 billion phones.
“Our focus over the past year was on improving margins,” FingerMotion CEO Martin Shen stated. “This volume-based agreement is expected to increase our margins from 6.1% to approximately 30% and is a testament to our incredibly talented team that continues to impress our business partners. With SMS demand remaining strong, we are able to meet the new pressures through operational efficiencies but continue to be limited by the capital required to adequately fund operations.”
FingerMotion’s core competency is in mobile payment and recharge platform solutions in China, but as the user base of its primary business continues to grow the company is bringing new value-added technologies to market in order to establish an ecosystem of users with high engagement rates.
The availability of more than a billion Chinese consumers’ data to FingerMotion drew the attention of insurance industry giant Pacific Life’s reinsurance division, which sealed a collaborative agreement with FingerMotion in January that essentially makes FingerMotion the data provider for Pacific Life as it looks for growth opportunities in the Chinese insurance industry (https://nnw.fm/qt7Pq).
The data services provided by FingerMotion will be able to serve as a proxy for a credit score system in the country. FingerMotion’s Sapientus database helps derive predictive behavior analytics from the data the company obtains to anticipate consumer habits.
The company expects to file its year-end financial report by the end of the month, and predicts annual revenues will top $16 million (https://nnw.fm/Jy2b8).
For more information, visit the company’s website at www.FingerMotion.com.
NOTE TO INVESTORS: The latest news and updates relating to FNGR are available in the company’s newsroom at https://nnw.fm/FNGR
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
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