- U.S.-based communications technology brand FingerMotion is building its profits as it focuses on services for China’s world-leading, mobile-connected population
- FingerMotion recently reported its financial statement for the Q3 quarter ending Nov. 30, noting gross profits at a record $967,075
- The profits report was 56 percent higher than the same period during the previous year, driven primarily by the company’s Telecommunications Products and Services business
- FingerMotion’s Telecommunications Products and Services revenues grew 580 percent YOY despite a slowing trend for SMS services as the company shifted resources to the company’s collaboration with China Mobile in the country’s Fujian province for 5G-related SMS products
Evolving communications and big data technology company FingerMotion (NASDAQ: FNGR), is entering 2022 with record profitability and continued growth of its gross margins.
“We expect this trend in gross margins to continue, and revenue should ramp as the insurtech business starts to unfold,” CEO Martin Shen stated in conjunction with the company’s announcement Jan. 18 of its financial profile for the third quarter ended Nov. 30 (https://ibn.fm/ypswa). “During the past quarter the company announced the formation of two new brands in order to provide mobile device protection in China. Beta testing is underway and could start contributing to revenue in the current quarter. The company anticipates this could represent a significant revenue stream in the next fiscal year.”
FingerMotion reported its gross profit reached a new record of $967,075 during the quarter, driven by revenues of $5.9 million. That marked a 21 percent increase year-over-year in the revenue report, with the gross profit 56 percent higher YOY.
The bulk of the revenue optimism came from the company’s Telecommunications Products and Services business, which grew 580 percent ($2.8 million) over the previous year’s Q3 report.
The company’s Big Data analysis division, Sapientus, reported its first revenues last year and is expected to eventually be the leading revenue generator for FingerMotion as it enters the market for insurtech services. The division did not report any revenue for Q3, but the company continues to devote “considerable time … on continuing discussions with Pacific Life Re, the global life reinsurance company” that was the first company to contract with FingerMotion for big data services, Shen stated.
FingerMotion is a China-focused company specializing in mobile technology services. The Asian nation contains nearly 1.5 billion mobile users and analysts at Reportlinker.com anticipate that mobile engagement in China will continue to grow in the years to come, achieving a CAGR of 44.7 percent between 2020 and 2027 for revenues of $22.4 billion by the end of the forecast period.
That’s about a quarter of the analysts’ entire global forecast for the period.
Shen states FingerMotion is particularly focused on the company’s collaboration with China Mobile in the country’s Fujian province. China Mobile Fujian has about 30 million or more online subscribers, which is about 70 percent of the market share in the province, according to an announcement by the company last year (https://ibn.fm/PkXvC).
The mutual effort between the two companies relates to the buildup of 5G wireless network services in China, and the resources of FingerMotion SMS subsidiary JiuGe.
“During the quarter we were aggressive in rolling out our collaboration with China Mobile in the Fujian province. We had to reallocate our resources into telecom which slowed the spectacular revenue growth in SMS that we had seen in the past,” Shen stated, noting that SMS texting services and multimedia MMS audio and video services have been the reason for the Telecommunications Products and Services business sector’s success.
FingerMotion reported it had $1,116,448 in cash, a working capital surplus of $5,489,655 and a positive shareholders equity of $5,667,780 at the end of the quarter.
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://ibn.fm/FNGR