FingerMotion Provides Corporate Update
August 01 2019 - 9:47AM
FingerMotion, Inc. (OTC QB: FNGR), a US fintech company with mobile
payment and recharge platform operations in China, today provided a
corporate update in a letter from its CEO Martin Shen to its
shareholders.
|
To Our
ShareholdersFirst, I want to thank all our stockholders for their
commitment to the Company and belief in our ability to execute our
business plan. Many investors have not yet had the
opportunity to see me in person to get a sense of what drives me to
pursue excellence. In the coming months, I hope to change
that with a greater investor outreach program - for now I hope this
brief summary will suffice. My foundation in business and
finance comes from 10 years in the audit, tax and advisory groups
at PriceWaterhouseCoopers. As a CPA, I understand the
required governance and control procedures needed for a public
company to be compliant with the SEC, while balancing my fiduciary
obligation to maximize stockholder value. I also want
investors to know that I take the matter of signing periodic
reports containing our financial statements very seriously.
My years as an auditor engrained in me a disciplined approach to
financial reporting. In the past, many Chinese companies that
were publicly traded in the U.S. failed to file accurate financial
statements or statements that were in compliance with Public
Company Accounting Oversight Board (“PCAOB”) standards. As a
result, investors have questioned the reliability of financial
reports from companies with operations based in China. Furthermore,
only a handful of Chinese e-commerce companies are U.S.-based
filers, and we are among this group. Therefore, as a U.S.
company, we pride ourselves on providing accurate, Sarbanes-Oxley
compliant reports to our stockholders. When we started the
predecessor company to FingerMotion, we were an on-line gaming
company and our biggest challenge was gaining users and developing
a loyal user base. In the process of growing our user base,
we were able to capitalize on an even bigger business opportunity -
the Chinese mobile phone top-up market - a market that is
generating $23 billion a month and growing. We are strongly
positioned to become one of the major providers in the market as
one of only a handful of licensed top-up wholesalers in
China. Unlike some of our competitors, our top-up portal is
open to all mobile phone users, and we expect to be the first to
market with our 5G top-up capability. We believe our company
is on an accelerated pathway toward profitability and we anticipate
break-even results as soon as the quarter ending November 30,
2019. Our entire management team is committed to making
FingerMotion, Inc. a profitable company; we believe in what we are
doing, and we are focused on building stockholder value. We are
also investing some of our working capital to pursuing
revenue-generating opportunities with higher gross margin potential
while we continue our mobile phone top-up business with high Gross
Transaction Value (GTV) revenues and low profit margins. In
the past 6 months, we successfully integrated our top-up platform
with Pinduoduo’s (NASDAQ: PDD) portal. Next, we launched our
SMS aggregation business for major retail clients, which will boost
our gross margin significantly.Finally, and most significantly, we
took over the management of China Unicom’s (NYSE: CHU) portals on
e-commerce sites such as PDD, JD.com (NYSE: JD), and Alibaba’s
(NYSE: BABA) TMALL sites. This arrangement reflects China Unicom’s
confidence in our underlying capability to accurately and
efficiently manage their online business. Managing China Unicom’s
portal provides our Company the opportunity to branch away from
just the top-up business. We will now generate revenues on all
mobile phone and accessory sales generated through the portal,
which we expect will result in a large volume of business at better
margins. Our growth in this new revenue stream will not be
constrained by our ability to deposit funds with China Unicom
because we will not be required to use our own capital to process
the China Unicom orders.The common underlying theme of all these
achievements is the aggregation of a large number of users and
deploying our limited capital resources to market channels with
higher returns.In the next few days, we will be issuing a
supplemental announcement to our stockholders explaining our
current business profit centers and how we intend to monetize our
huge end-user base. We will also address our plans to adopt
Sarbanes-Oxley oversight regulations and other value-enhancing
steps. Be sure to look for our upcoming release.SincerelyMartin
Shen CEO, FingerMotion, Inc. |
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 five 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.
Safe Harbor Statement
This release contains forward-looking statements
that involve risks and uncertainties. Forward-looking statements
give our current expectations of forecasts of future events. All
statements other than statements of current or historical fact
contained in this release, including statements regarding our
future financial position, business strategy, new products,
budgets, liquidity, cash flows, projected costs, regulatory
approvals or the impact of any laws or regulations applicable to
us, and plans and objectives of management for future operations,
are forward-looking statements. The words “anticipate,” “believe,”
“continue,” “could,” “should,” “estimate,” “expect,” “hope,”
“intend,” “may,” “plan,” “project,” “will,” and similar
expressions, as they relate to us, are intended to identify
forward-looking statements. We have based these
forward-looking statements on our current expectations about future
events. While we believe these expectations are reasonable, such
forward-looking statements are inherently subject to risks and
uncertainties, many of which are beyond our control. Our actual
future results may differ materially from those discussed or
implied in our forward-looking statements for various reasons.
Factors that could contribute to such differences include, but are
not limited to: international, national and local general economic
and market conditions; demographic changes; the ability of the
Company to sustain, manage or forecast its growth; the ability of
the Company to manage its VIE contracts; the ability of the Company
to maintain its relationships and licenses in China; adverse
publicity; competition and changes in the Chinese
telecommunications market; fluctuations and difficulty in
forecasting operating results; business disruptions, such as
technological failures and/or cybersecurity breaches; and the other
factors 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). Given these risks and uncertainties,
you are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements included
in this release are made only as of the date hereof. We do not
undertake any obligation to update any such statements or to
publicly announce the results of any revisions to any of such
statements to reflect future events or developments.
For further information e-mail:
info@fingermotion.com
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