FingerMotion Successfully Negotiates Volume-Based Contract with China Mobile Fujian
FingerMotion, Inc. (OTCQX: FNGR) announces a significant volume-based contract with China Mobile Fujian, which is expected to enhance SMS gross margins by 30%. The partnership, built on years of collaboration, enables JiuGe to secure new contracts and increase SMS revenue by 20-30% in 2021. The e-commerce top-up business anticipates a staggering 1000% revenue growth. With the introduction of 5G, opportunities for expansion are expanding. CEO Martin Shen emphasizes the company's focus on margin improvement and future growth prospects, assuring shareholders of ongoing efforts towards profitability.
- Expected 30% improvement in SMS gross margin.
- Potential 1000% increase in top-up revenue.
- Anticipated 20-30% revenue growth in SMS for 2021.
- Strong collaboration with China Mobile Fujian enhances business prospects.
- Operational funding limitations may affect growth.
- Dependence on capital funding could pose risks.
SMS gross margin is expected to improve by approximately
Top-up revenue could increase by as much as
NEW YORK, NY / ACCESSWIRE / May 18, 2021 / FingerMotion, Inc. (OTCQX:FNGR), a mobile data and services company, is pleased to announce that it has successfully entered into a volume-based contract with China Mobile Fujian. Management believes this contract will result in an approximate
As a result of JiuGe's strong performance on the cooperation agreement with China Mobile, it expects to continue to secure new contracts with China Mobile. This agreement was the result of the Company putting significant effort into continuously enhancing their platform, resulting in positive customer response rates and distinguishing the Company from other competitors. In addition, the telecom products being marketed have the backing of China Mobile and are expected to add steady incremental revenue.
JiuGe's solid performance in the SMS business has enabled the Company to secure a larger supply of prepaid SMS in April 2021, which is expected to grow the SMS revenue by
The e-commerce top-up business is also strengthening its links to operators and are working to improve the reliability of their services, which should further increase customer loyalty to the platform. If this trend continues in 2021, the annual top-up revenues could increase by as much as
With the introduction of 5G in the China marketplace, the mobile information service industry is set to take off. Key operators like Zhejiang Mobile, Zhejiang Unicom and other large provincial operators are provisioning resources to take advantage of this burgeoning market and may look to JiuGe for guidance and assistance.
"Our focus over the past year was on improving margins," said Martin Shen CEO of FingerMotion Inc. "This volume-based agreement is expected to increase our margins from
About FingerMotion, Inc.
FingerMotion is an evolving technology company with a core competency in mobile payment and recharge platform solutions in China. As the user base of its primary business continues to grow, the Company is developing additional value-added technologies to market to its users. The vision of the Company is to rapidly grow the user base through organic means and have this growth develop into an ecosystem of users with high engagement rates utilizing its innovative applications. Developing a highly engaged ecosystem of users would strategically position the Company to onboard larger customer bases. FingerMotion eventually hopes to serve over 1 billion users in the China market and eventually expand the model to other regional markets.
For further information e-mail: info@fingermotion.com
718-269-3366
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the continued growth of the e-commerce market and the ability of the Company to continue its expansion into that market; the ability of the Company to attract customers and partners and generate revenues; the ability of the Company to successfully execute its business plan; the business strategy, plans, and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "predicts," "should," "will" or similar expressions and 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 news release. The Company's actual results could differ materially from those anticipated or implied 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 or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume any duty to update these forward-looking statements.
SOURCE: FingerMotion
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FAQ
What is the expected impact of the new contract with China Mobile on FNGR's SMS gross margin?
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