_______________________________________________________________________________
New York, New York--(Newsfile Corp. - July 28,
2020) - FingerMotion, Inc. (OTCQB: FNGR) (the "Company"
or "FingerMotion"),
a mobile services and data company, is pleased
to report its financial results for the fiscal
year ended February 29th, 2020 and for the first
quarter ended May 31st, 2020 and is providing
shareholders with the following operational
update. To review the full financial results,
please download the Company's recent Form 10-K
and Form 10-Q filings at www.sec.gov/edgar/search
Fiscal 2020 Financial Summary:
-
For the fiscal year ended Feb. 29, 2020,
achieved revenue of $9.13 million,
approximately a 520% increase from the
fiscal year ended Feb. 28, 2019 ("Fiscal
2019");
-
Gross profit of $0.97 million, approximately
a 182% increase from Fiscal 2019;
-
Total operating expenses of $4.03 million,
approximately a 39% increase from Fiscal
2019;
-
Comprehensive loss of $2.99 million, a
slight increase of $0.07 million from Fiscal
2019;
-
Basic and diluted loss per share $(0.12).
The increase in revenue was due to management's
decision to increase focus and resources towards
expanding its mobile payment and recharge
platform services businesses and growing its
business-to-business SMS texting service
business. The Company's growth across its
business divisions is tied to the fluctuating
prepaid deposit balance with our telecom company
clients.
Q1 2021 Financial Summary:
-
Reported Q1 2021 revenue of $2.74 million,
approximately a 194% increase from Q1 of
2020;
-
Gross profit of $0.29 million, approximately
a 261% increase from Q1 of 2020;
-
Total operating expenses of $0.87 million,
approximately a 21% decrease from Q1 of
2020;
-
Comprehensive loss of $0.59 million,
approximately a 40% decrease from Q1 of
2020;
-
Basic and diluted loss per share of $(0.02).
The increase in revenue for Q1 2021 compared to
Q1 2020 was due to the continuing growth of both
the recharge platform and the SMS texting
service.
Operational Highlights:
-
In March 2019, the Company through its
contractually controlled company, JiuGe
Technology, completed the acquisition of
Beijing XunLian TianXia Technology Co.,
Ltd., a company in the business of providing
mass SMS text services to businesses looking
to communicate with a large number of their
current and prospective customers.
-
In July 2019, JiuGe Technology secured the
contract to construct and operate China
Unicom's electronic sales platform through
which consumers can purchase various goods
and services from China Unicom, including
mobile telephones, mobile telephone
services, broadband data services, "smart"
devices, and related financial insurance.
This platform is now in operation, and as
consideration for the services provided to
China Unicom, JiuGe Technology receives a
percentage of the revenue received from all
sales processed on the platform.
2021 Business Focus
Telecommunications Products & Services and SMS
Platform Services
-
Expand mobile payment and recharge services
businesses via its online stores in
Pinduoduo, TMall and additional platforms;
-
Promote and expand mobile hardware, services
and sales under strategic Cooperation
Agreement with China Unicom;
-
Continue to grow our business-to-business
SMS services business focusing within the
Financial Services and related industries.
-
Big Data Insights & Analytics Platform
Services - Sapientus
-
Further development of Sapientus, the
Company's Big Data Insight arm built to
deliver data-driven and enabled solutions
for businesses within the insurance and
financial services industries;
-
Launch beta modeling and testing by end of
year working with re-insurance companies;
-
Complete necessary development and testing
for commercialization of Sapientus to begin
Q1 of 2022. Big Data for Insurance
Technology ("Insurtech") is a very large
growth area as we believe the insurance
industry is preparing for a huge
transformation in how it conducts business,
and we believe big data capabilities will be
front and center of this transformation.
According to a 2020 market research report
by IBISWorld, the market for online
insurance brokerage is expected to reach
$31.3 billion in 2020 (source: https://www.ibisworld.com/industry-statistics/market-size/online-insurance-brokers-united-states/).
"Crossing the $10 million annual revenue
threshold is a key milestone for the Company,"
said Martin Shen, CEO of FingerMotion Inc. "I am
very pleased with the improvement in operations
last year and in the first fiscal quarter of
2021 as it signals an acceleration of revenues
and earnings in the quarters to come. Our
financial results reflect an improved balance
sheet and year-over-year quarterly growth. We
have built an impressive foundation in mobile
recharge and SMS business which gives us access
to an unprecedented number of users by
piggybacking on our telecom company clients'
user base. In our first year of operations, the
SMS business was able to achieve gross
profitability and significant revenue growth
organically and we are excited to see sustained
momentum in our top-up revenues driven by our
strategic partnership with Pinduoduo and TMall.
And our investment in Insurtech is one of the
first verticals that could account for a
significant portion of our upcoming revenues and
earnings in the next fiscal year."
About FingerMotion, Inc.
FingerMotion is an evolving technology company
with a core competency in mobile payment and
recharge platform solutions in China. It is one
of only a few companies in China with access to
wholesale rechargeable minutes from China's
largest mobile phone providers that can be
resold to consumers. 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.
NEVER BUY A STOCK ON A RUMOR - SEEK INVESTMENT
ADVICE FROM A PROFESSIONAL