FingerMotion, Inc. (OTCQB: FNGR), a US fintech company with mobile payment and recharge platform operations in China, is pleased to announce that is has expanded the breadth of its services with a definitive Portal Sales and Cooperation Agreement with China Unicom’s Yunnan subsidiary, a leading mobile carrier in China.  Under the terms of the renewable 3-year agreement, China Unicom’s Yunnan subsidiary has migrated the management and developmental control of the portal to FingerMotion’s subsidiary, JiuGe Information Technology (JiuGe).  The existing platform currently handles cellular top up, phone sales, and accessory sales such as sim cards, cases, and prepaid phone cards.

The agreement will also allow for the inclusion of installment plans for the purchase of a new phone or prepaid phone plans.  In addition, there will be a rollout of a broadband initiative for consumers and businesses.  The Company believes that this agreement will significantly increase revenues and gross margins going forward.

The agreement calls for FingerMotion to share with China Unicom a percentage of the revenues generated from sales on the portal. JiuGe will be responsible for collecting the revenue generated off the platform and paying the costs to maintain the customer service center.  This online sales agreement will funnel all of China Unicom’s online sales through this portal.  JiuGe will retain a higher percentage of revenue on the cellular “top-up” sales to compensate FingerMotion for the higher level of management and oversight, while China Unicom’s Yunnan subsidiary will retain a higher percentage of gross profit on the hardware and financial insurance products.  The handoff of control of the portal has already begun, and the final rollout of the entire line-up of products and services will be accomplished in stages over the coming months.

JiuGe will be licensed to operate and manage China Unicom’s Yunnan Subsidiary’s existing online flagship stores in three major e-Commerce platforms in China, namely Tmall (operated by Alibaba (BABA), JD.com (JD) and PinDuoDuo (PDD).  According to a June 2018 article by Forbes titled “For Brands, Alibaba is The Gateway to China and Chinese Customers”.  Forbes stated that Alibaba has 617 million monthly mobile users and 552 million active users on its China retail marketplaces (Tmall and Taobao).  In comparison, according to Tech in Asia, JD.com has 292 million customers.

Martin Shen, CEO of FingerMotion explained:

“This is an historic agreement for our company and demonstrates how our alignment with other partners are succeeding.  China Unicom has entrusted us with not only being the face of its customer service, but also the branding of its official e-commerce stores.  It is a tremendous honor to be held in such high regard and our team of programmers and marketers should take much of the credit.  Official stores typically receive higher traffic volumes in China due to a perception of greater trust and reliability.

“Operating China Unicom’s official store on the top three e-commerce portals represents a tremendous opportunity for our company.  We have a chance to roll out new products and services that should prove exciting and further stimulate consumer demand.

“We now have a footprint on 3 major Chinese e-commerce portals. Couple this enlarged footprint with access to China Unicom’s subscriber base, and we strongly believe we have a pathway to success.  With our current pipeline of projects and adequate financing, we anticipate driving company revenues to next level, which will exceed our prior forecasts and expectations.”

“The agreement represents an extension of our core philosophy to build an ecosphere with private capital cooperation,” said Deputy General Manager of China Unicom Yunnan, Mr. Wen Tao.  “We are looking for cooperation agreements that are a win-win and believe that JiuGe is able to represent our guiding principles in the execution of the business.”

Mr. Wen Tao continued, “Their experience in the marketplace to drive increased usage of our portal via promotional channels to new and existing users gives was a key factor in this agreement.  With their help, users will now have a chance to capitalize on our growing base of product offerings from big data to smart home products.  We believe that JiuGe will be able to help us build a better and stronger ecosystem that will increase customer retention while rewarding our users for their brand loyalty. We have joint ventures with over 54 Internet companies and have handed over developmental control of our top 3 official stores to JiuGe based on a belief that they have the capability to accelerate our sales and strengthen the ecosystem we are building.”

SOURCE FingerMotion, Inc.