- FingerMotion’s launch of the mobile device protection product in the Chinese market looks to tap into an industry valued at approximately $10.6 billion annually
- The company has also partnered with an NYSE-listed insurance company looking to venture into the Chinese market and is confident that this, together with the product launch, will accelerate its revenue growth over the next 6-12 months
- Its management is also optimistic that this latest addition will help achieve the company’s goal of pushing gross margins higher, having posted a 12% gross margin in the 2022 fiscal year, up from 9% the previous year
- Martin Shen, FingerMotion’s CEO, notes that the company’s revenue currently is just the tip of the iceberg, and with the addition of the device protection program and building on the top-up and SMS services, the company is set to experience significant growth as time progresses
On July 15, 2022, FingerMotion (NASDAQ: FNGR), an evolving technology company with a core competency in mobile payment and recharge platform solutions in China, launched its mobile device protection product in the market, looking to tap into an industry valued at approximately $10.6 billion annually (https://ibn.fm/lz5xs).
The launch was a bold move by the company to introduce a new offering in a sector previously limited to broken screen protection, leaving a vastly untapped market it could exploit. But, more importantly, FingerMotion was looking to take advantage of the advent of 5G in China by redefining the marketplace with its suit of next-generation, innovative product offerings for mobile carriers. This would enable it to offer enhanced protection of vital components and device trade-in programs.
While appearing in an interview with the investor media outlet, Proactive, Martin Shen, FingerMotion’s Chief Executive Officer (“CEO”), reckoned that this device protection program would be integral to accelerating the company’s revenue growth over the next 6-12 months. He also acknowledged the firm’s partnership with an NYSE-listed insurance company, which will aid in achieving the company’s short and long-term objectives (https://ibn.fm/pxcLK).
“We have partnered up with a very large NYSE-listed insurance company, and are helping them get into the Chinese market as well, and we hope to launch that business very soon,” he noted.
“That will really accelerate our revenue growth over the next 6-12 months,” he added.
Device protection is a welcome addition to FingerMotion’s growing list of offerings comprising telecommunications products and services, SMS and MMS, big data insights, and Rich Communication Services (“RCS”). As a result, its management is confident that FingerMotion will sustain its current revenue growth trajectory, having posted a 37% growth in the previous financial year.
“I think our revenue right now is really just the tip of the iceberg, just building on the top-up and the SMS (services),” noted Mr. Shen.
When asked how capital-intensive the new undertaking was, Mr. Shen noted that its partners (China Mobile and China Unicom) have already built the device protection costs into their phone plans. This, he argued, makes the undertaking feasible and allows it to be an integral aspect of the company’s revenue growth over the next year.
“Now with the massive onset of 5G phones, there’s a really large market in China that’s looking to change up their phones for, let’s say, 3G and 4G phones to 5G. So, as (consumers) go and get new phones, the cost of this AppleCare(-similar product) is built in. so that revenue is already there,” noted Mr. Shen.
“We’re just going to be partners with the insurance company as well as with the telco. …It’s actually not that capital-intensive for us. It’s a really symbiotic relationship with these companies,” he added.
Earlier in the year, Mr. Shen noted that one of the company’s key initiatives is to “Keep pushing gross margins higher.” He noted that the mobile protection program would be integral in achieving this objective, especially given that gross margins for the 2022 fiscal year stood at 12%, up from 9% the previous year (https://ibn.fm/6w7ZK).
This unique device protection product, coupled with FingerMotion’s first-mover advantage, sets the company to reap big over the next couple of years, providing a grossing list of customer options and creating value for its shareholders.
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
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