- Martin Shen, FingerMotion’s CEO, acknowledged the solid and resilient performance of the company’s Top Up business, noting how the recurring revenue streams from it have created a solid foundation on which to expand its product line
- This expansion has seen the introduction of FingerMotion’s latest offering, a device protection insurance product for mobile phones. The company is looking to hit the milestone of one million devices under its protection plan by early 2023, and 20 million users within three years
- Mr. Shen has lauded the massive onset and adoption of 5G in China as a critical factor for this service’s growth, regarding it as a “tailwind”
- He is confident that the success of this new offering will form an even stronger foundation on which the company can further grow its products and services, grow its revenues and improve its gross margins
While speaking during the signing of a strategic cooperation agreement between China Mobile and Shanghai TengLian JiuJiu Information Communication Technology Co., Ltd (a 99% owned subsidiary), Martin Shen, the Chief Executive Officer (“CEO”) of FingerMotion (NASDAQ: FNGR) acknowledged the resilient performance of the company’s Top Up business. As an evolving technological company with core competencies in mobile payment and recharge platform solutions for the Chinese market, Mr. Shen was keen to note the company’s progress over the years and the role that this business has played in FingerMotion’s growth (https://ibn.fm/FW36e).
“One of the other things that we are finding out is that the Top Up business is extremely resilient to any recessionary pressures,” he noted.
“The recurring revenue streams that we have created are very predictable and stable, thereby creating a solid foundation on which to expand,” he added.
This solid foundation for expansion saw the introduction of FingerMotion’s latest offering, a device protection insurance product for mobile phones. The company looked to tap into an industry rife with potential, yet only limited to broken screen protection.
In its market analysis, FingerMotion’s management noted that within three years, the company expects the number of users of its new offering to exceed 20 million, based on ten provinces, municipalities, and other regions. It further noted that by early 2023, the company would achieve full online and provincial offline coverage, hitting the milestone of one million devices under its device protection plan by December.
One of the main factors that Mr. Shen noted would aid in the fast adoption of its new service was the 5G adoption within China.
“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,” noted Mr. Shen (https://ibn.fm/sGjOJ).
He regarded this as a “tailwind,” noting the massive 5G replacement cycle that has already begun and that would push FingerMotion’s service revenues and hardware sales.
Through the performance of its Top Up business, along with its other more established offerings, FingerMotion has made a name for itself and formed a solid foundation on which it can grow its products and services. Its device protection plan is a testament to the company’s commitment to constantly delivering value to customers and creating value for its shareholders. Moreover, it indicates a management team in touch with consumers, understands their needs, and is willing to push the company to provide solutions.
Going forward, Mr. Shen is confident that as the device protection plan continues to be accessed by more consumers in China, the company’s revenues will increase, adding to gross margin growth for the 2022 financial year. He is also optimistic that this program’s success will further strengthen FingerMotion’s foundation to expand into other sectors and introduce even more product offerings to consumers.
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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