Chinese mobile telecommunications is a reportedly booming market.
The country holds close to a fifth of all people on earth and with over 1.22 billion unique mobile subscribers as of the end of 2020, China ranks as one of the top mobile users in the world. The country boasts an 83% penetration rate, a full 17% more than the global average.
And revenues for Chinese telecommunications companies reflected these huge numbers. In 2020, the industry was estimated at $175 billion and is expected to grow to $197 billion by 2025. Massive companies like China Telecom Corp Ltd. (SHA: 601728) and China Mobile Ltd. (SHA: 600941) dominate the industry.
Despite the dominance of these large conglomerates, a large field of flourishing companies, both foreign and domestic, seems to abound. FingerMotion Inc. FNGR is one of them. FingerMotion, which recently uplisted to the Nasdaq Stock Market, released its numbers for fiscal 2022.
The company brought in $22.3 million in revenue, reflecting a $6.24 million increase from fiscal 2021. It saw growth across its three core business avenues: Telecommunication Products & Services, SMS & MMS and Big Data. The company is profitable and those profits are growing. FingerMotion reported gross profits of $2.81 million for fiscal 2022, up 71% from the previous year.
“The company achieved a Nasdaq uplisting in December 2021, which was a major milestone for the company,” CEO Martin Shen said. “During the year we also achieved another milestone of over $5 million in shareholders’ equity.
“We aggressively opened up new markets in our top-up business in collaboration with our telecom partners, and we are very pleased with our Chinese subsidiaries’ ability to maintain profitability throughout the year. We continue to invest in the growth of the insurtech business.”
Among the company’s key initiatives is to push gross margins higher. Gross margins for the year were 12%, up from 9% a year earlier.
The company says the rollout of its mobile protection program, announced a year ago, is on schedule and should continue to push gross margins up as the company’s telecom partners sign onto it.
This may bode well for FingerMotion, but whether it will be able to continue to capitalize on this growth remains to be seen. If you would like to learn more about the company, check out fingermotion.com.
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