FingerMotion, Inc.

What they do

The company's core operations are conducted through Shanghai JiuGe Technology (the VIE) and its wholly foreign-owned enterprise, JiuGe Management. It provides telecommunications products and services (SMS, MMS, and messaging solutions), operates a mobile-first O2O marketplace platform, offers data analytics via the Sapientus platform, and provides real-time communication and operational management through the C2 Platform.

Revenue drivers

• Telecommunications Products & Services — Historically the primary revenue source; generated $502,672 in Q1 2027, down 94% from $8.31 million in Q1 2026.
• Marketplace Platform and Digital Commerce Infrastructure — Small revenue base; $11,939 in Q1 2027, up 9% from $10,938 in Q1 2026.
• Advanced Technology and Platform Solutions — Includes the C2 Platform; $135,478 in Q1 2027, up 24% from $109,241 in Q1 2026.
• Data and Analytics Platform Solutions — Includes the Sapientus platform; revenue was $0 in Q1 2027, down from $27,310 in Q1 2026.

Recent performance

For the quarter ended May 31, 2026, total revenue was $650,089, down 92% year-over-year. Gross profit improved to $208,478, up 37% from $152,521, reflecting a better revenue mix. The quarterly loss was $2.00 million, slightly improved from $2.01 million. Cash stood at $987,391, with a working capital surplus of $4.38 million and shareholders' equity of $13.33 million. Annual revenue declined from $35.6 million in fiscal 2025 to $24.1 million in fiscal 2026, with net losses widening to $7.0 million.

Strategy

Management states it is increasingly focused on expanding higher-margin, technology-driven platform businesses, including enterprise communications, data analytics, and platform solutions. The company aims to grow its user base organically and develop an ecosystem of highly engaged users, eventually targeting 1 billion users in China. It emphasizes better cost discipline and a more favorable revenue mix as part of its platform strategy. The company is also planning a transition to an investment holding company structure.

Risks

• Revenue concentration and decline — Telecommunications revenue fell 94% in Q1 2027, and total revenue dropped 92%, indicating severe dependence on a shrinking business line.
• VIE structure uncertainty — The company's control over its Chinese operations relies on VIE agreements that have not been tested in PRC courts and may not be enforceable.
• Regulatory and geopolitical exposure — Operations in China are subject to evolving PRC regulations, including CSRC overseas listing rules and CAC oversight, plus risks from U.S.-China trade tensions.
• Liquidity and going concern risk — Cash of $987,391, recurring losses, and negative operating cash flows raise questions about the ability to fund operations without additional financing.

Outlook

Management has not provided explicit forward guidance. The company notes it is not currently required to obtain specific CSRC approvals for its existing business. It highlights improved gross margin and positive working capital as sources of financial flexibility. The focus remains on executing the platform strategy and managing the transition to an investment holding company structure.