CALGARY, Alberta, Feb. 11, 2023 (GLOBE NEWSWIRE) — GINSMS Inc. (TSXV: GOK) (“GINSMS” or the “Corporation”) has announced its financial results for the fourth quarter and twelve months ended December 31, 2023.
The annual audited financial statements of the Corporation for the twelve months ended December 31, 2023 are currently under audit and in the process of preparation. As required under Canadian securities law regulations, the Corporation will be disclosing and filing on SEDAR its annual audited financial statements and the related management’s discussion and analysis (“MD&A”) within 120 days after the end of its year end of December 31, 2023.
This financial disclosure was done in advance of the filing of the audited financial statements of the Corporation to allow GINSMS’ ultimate holding company, Beat Holdings Limited (“BHL”), a public company in Japan, to use certain of GINSMS’ financial information in the preparation of BHL’s financial statements and announcements.
The Corporation’s financial information for the twelve months ended December 31, 2023 is prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
Highlights include:
- Revenue of $2,731,334 for the twelve-month period ended December 31, 2023 as compared to $2,823,335 for the twelve-month period ended December 31, 2020.
- Revenue of $694,953 for the three-month period ended December 31, 2023 as compared to Revenue of $684,260 for the three-month period ended December 31, 2020.
- Gross Profit of $1,023,234 for the twelve-month period ended December 31, 2023 as compared to gross profit of $1,031,565 for the twelve-month period ended December 31, 2020.
- Gross Profit of $288,782 for the three-month period ended December 31, 2023 as compared to gross profit of $281,754 for the three-month period ended December 31, 2020.
- Operating expenses and finance costs of $732,629 for the twelve-month period ended December 31, 2023 decreased from $1,034,124 for the twelve-month period ended December 31, 2020.
- Operating expenses and finance costs of $146,805 for the three-month period ended December 31, 2023 decreased from $194,419 for the three-month period ended December 31, 2020.
- Net profit of $281,162 for twelve-month period ended December 31, 2023 as compared to a net loss of $3,508 for twelve-month period ended December 31, 2020.
- Net profit of $131,651 for three-month period ended December 31, 2023 as compared to a net profit of $85,094 for three-month period ended December 31, 2020.
Selected Profit and Loss Information
| Financial Highlights | Three-month period ended December 31, 2023 (Unaudited) |
Three-month period ended December 31, 2020 (Unaudited) |
Twelve-month period ended December 31, 2023 (Unaudited) |
Twelve-month period ended December 31, 2020 (Audited) |
||||
|
Revenues $ |
||||||||
| A2P Messaging Service | 347,813 | 241,944 | 1,338,627 | 1,386,756 | ||||
| Software Product & Services | 347,140 | 442,316 | 1,392,707 | 1,436,579 | ||||
| 694,953 | 684,260 | 2,731,334 | 2,823,335 | |||||
| Cost of sales $ | ||||||||
| A2P Messaging Service | 228,973 | 220,288 | 1,016,352 | 1,102,704 | ||||
| Software Product & Services | 177,198 | 182,218 | 691,748 | 689,066 | ||||
| 406,171 | 402,506 | 1,708,100 | 1,791,770 | |||||
|
Gross profit $ |
||||||||
| A2P Messaging Service | 118,840 | 21,656 | 322,275 | 284,052 | ||||
| Software Product & Services | 169,942 | 260,098 | 700,959 | 747,513 | ||||
| 288,782 | 281,754 | 1,023,234 | 1,031,565 | |||||
|
Gross margin % |
||||||||
| A2P Messaging Service | 34.2% | 9.0% | 24.1% | 20.5% | ||||
| Software Product & Services | 49.0% | 58.8% | 50.3% | 52.0% | ||||
| 41.6% | 41.2% | 37.5% | 36.5% | |||||
| Adjusted EBITDA(1) $ Adjusted EBITDA margin |
166,509 24.0% |
108,147 15.8% |
387,645 14.2% |
85,953 3.0% |
||||
| Net earnings profit/(loss) $ Net earnings profit/(loss) margin |
131,651 18.9% |
85,094 12.4% |
281,162 10.3% |
(3,508 (0.1)% |
) | |||
| Net earnings profit/(loss) per share $ | ||||||||
| Basic (in Canadian cents) | 0.088 | 0.057 | 0.187 | (0.002 | ) | |||
| Diluted | 0.088 | 0.057 | 0.187 | N/A | ||||
| (1) | Adjusted EBITDA is a non-IFRS measure which does not have any standardized meaning under IFRS. Adjusted EBITDA is related to cash earnings and is defined for these purposes as earnings before income taxes, depreciation and amortization (in both cost of sales and general and administration expenses), interest expenses and also excludes certain non-recurring or non-cash expenditure and income. This non-IFRS measure is not recognized under IFRS and accordingly, shareholders are cautioned that this measure should not be construed as an alternative to net income determined in accordance with IFRS. The non-IFRS measure presented is unlikely to be comparable to similar measure presented by other issuers. The Corporation believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Corporation can use to fund working capital requirements, service interest and principal debt repayment and fund future growth initiatives. |
Cost of Sales
| Three-month period ended December 31, 2023 (Unaudited) |
Three-month period ended December 31, 2020 (Unaudited) |
Twelve-month period ended December 31, 2021 (Unaudited) |
Twelve-month period ended December 31, 2020 (Audited) |
|
| Depreciation – Property, plant and equipment |
4,313 | 5,087 | 18,114 | 22,469 |
| Salaries and wages | 172,628 | 188,818 | 671,892 | 675,716 |
| Subcontractor costs | 228,977 | 208,427 | 1,016,633 | 1,091,158 |
| Software and hardware | – | – | 163 | 147 |
| Others | 253 | 174 | 1,298 | 2,280 |
| 406,171 | 402,506 | 1,708,100 | 1,791,770 |
Operating Expenses and Finance Costs
| Three-month period ended December 31, 2023 (Unaudited) |
Three-month period ended December 31, 2020 (Unaudited) |
Twelve-month period ended December 31, 2021 (Unaudited) |
Twelve-month period ended December 31, 2020 (Audited) |
||||
| Salaries and wages | 51,418 | 199,835 | 251,170 | 496,128 | |||
| Directors’ fees | 10,000 | 10,000 | 40,000 | 40,000 | |||
| Professional fees | 54,855 | 52,610 | 273,960 | 272,101 | |||
| Foreign currency exchange (gain)/loss | (8,101 | ) | (118,487 | ) | (2,786 | ) | 20,192 |
| Other general & administrative expenses | 27,979 | 34,221 | 100,924 | 137,577 | |||
| (Reversal of)/ allowance for doubtful debts) | (9,565 | ) | 515 | (9,565 | ) | 2,083 | |
| Depreciation | |||||||
| – Property, plant and equipment | 1,512 | 1,596 | 5,800 | 6,217 | |||
| – Right-of-use assets | 16,813 | 10,892 | 63,473 | 44,340 | |||
| Lease interest on right-of-use assets | 1,894 | 3,237 | 9,653 | 15,486 | |||
| 146,805 | 194,419 | 732,629 | 1,034,124 | ||||
Selected Balance Sheet Information
The figures reported below are based on the unaudited consolidated financial statements of the Corporation which have been prepared in accordance with IFRS.
| December 31, 2021 (Unaudited) $ |
December 31, 2020 (Audited) $ |
|||||
|
Current Assets |
||||||
| Accounts receivable | 601,321 | 557,834 | ||||
| Other receivables, prepayments and deposits | 62,985 | 76,576 | ||||
| Current tax asset | 2,586 | – | ||||
| Bank and cash balances | 183,941 | 296,312 | ||||
| 850,833 | 930,722 | |||||
| Non-Current Assets | ||||||
| Right-of-use assets | 48,777 | 73,331 | ||||
| Property, plant and equipment | 33,199 | 39,999 | ||||
|
TOTAL ASSETS |
932,809 | 1,044,052 | ||||
| Current Liabilities | ||||||
| Accounts payable and accrued liabilities | 591,373 | 749,061 | ||||
| Advances from related parties | 878,410 | 1,100,130 | ||||
| Loan from a related party | 4,826,177 | 4,933,186 | ||||
| Lease liabilities | 46,093 | 38,717 | ||||
| Promissory note payable | 580,000 | 580,000 | ||||
| Current tax liabilities | – | 1,490 | ||||
| 6,922,053 | 7,402,584 | |||||
| Non-Current Liabilities | ||||||
| Lease liabilities | – | 34,629 | ||||
| TOTAL LIABILITIES | 6,922,053 | 7,437,213 | ||||
| Equity | ||||||
| Share capital | 11,415,709 | 11,415,709 | ||||
| Deficit | (17,753,423 | ) | (18,034,210 | ) | ||
| Accumulated other comprehensive income | 361,874 | 239,449 | ||||
| Total deficiency attributable to equity shareholders | (5,975,840 | ) | (6,379,052 | ) | ||
| Non-controlling interest | (13,404 | ) | (14,109 | ) | ||
| TOTAL DEFICIENCY | (5,989,244 | ) | (6,393,161 | ) | ||
| TOTAL LIABILITIES & EQUITY | 932,809 | 1,044,052 | ||||
Total assets of GINSMS including cash, accounts receivable, other receivables, prepayment and deposits, current tax asset, property, plant and equipment and right-of-use assets as at December 31, 2023 amounted to $932,809 compared to December 31, 2020 amounted to $1,044,052. Bank and cash balances amounted to $183,941 as at December 31, 2023 an decrease of 37.9% compared to $296,312 as at December 31, 2020. This decrease was mainly due to cash flow used in the financing activities of the Corporation for the twelve months ended December 31, 2023 as contrasted to cash flow from the financing activities of the Corporation for the twelve months ended December 31, 2020.
Selected Liquidity and Capital Resources Information
| Financial Highlights | Three-month period ended December 31, 2021 (Unaudited) $ |
Three-month period ended December 31, 2020 (Unaudited) $ |
Twelve-month period ended December 31, 2021 (Unaudited) $ |
Twelve-month period ended December 31, 2020 (Audited) $ |
||||
| Cash, beginning of period/year | 225,807 | 264,303 | 296,312 | 194,411 | ||||
|
Operating activities |
||||||||
| Net profit/(loss) for the period/year | 131,651 | 85,094 | 281,162 | (3,508 | ) | |||
| Deferred tax expenses/(credit) | – | 1,292 | – | – | ||||
| Current tax expenses | 10,326 | 949 | 9,443 | 949 | ||||
| Interest expenses on lease liabilities | 1,894 | 3,237 | 9,653 | 15,486 | ||||
| Foreign currency exchange (gain)/loss | (8,101 | ) | (118,487 | ) | (2,786 | ) | 20,192 | |
| (Reversal of)/ allowance for doubtful debts) | (9,565 | ) | 515 | (9,565 | ) | 2,083 | ||
| Depreciation of property, plant and equipment | 5,825 | 6,683 | 23,914 | 28,686 | ||||
| Depreciation of right-of-use assets | 16,813 | 10,892 | 63,473 | 44,340 | ||||
| Changes in working capital items | (42,907 | ) | 104,274 | (179,471 | ) | (100,529 | ) | |
| Interest expenses on lease liabilities | (1,894 | ) | (3,237 | ) | (9,653 | ) | (15,486 | ) |
| Income tax paid | (2,586 | ) | – | (2,586 | ) | – | ||
| Net cash generated from / (used in) operating activities | 101,456 | 91,212 | 183,584 | (7,787 | ) | |||
| Financing activities | ||||||||
| Advance from a related company | – | – | 5,950,591 | – | ||||
| Repayment of advance from a related party | – | – | (5950,591 | ) | – | |||
| Advances from related parties | – | 2,000 | 233,180 | 212,377 | ||||
| Repayment of advance from a related party | (121,628 | ) | (845 | ) | (415,782 | ) | (2,690 | ) |
| Principal elements of lease payments | (13,259 | ) | (8,600 | ) | (75,823 | ) | (43,504 | ) |
| Net cash (used in) / generated from financing activities | (134,887 | ) | (7,445 | ) | (258,425 | ) | 166,183 | |
| Investing activities | ||||||||
| Purchase of property, plant and equipment | (11,337 | ) | (7,226 | ) | (18,357 | ) | (18,732 | ) |
| Net cash used in investing activities | (11,337 | ) | (7,226 | ) | (18,357 | ) | (18,732 | ) |
| Effect of exchange rate changes on cash held in foreign currencies | 2,902 | (44,532 | ) | (19,173 | ) | (37,763 | ) | |
| (Decrease)/Increase in cash | (41,866 | ) | 32,009 | (112,371 | ) | 101,901 | ||
| Cash, end of period/year | 183,941 | 296,312 | 183,941 | 296,312 | ||||
SEGMENTED INFORMATION
a) Revenue by customers
| Twelve-month period ended December 31, 2023 (Unaudited) |
Twelve-month period ended December 31, 2020 (Audited) |
|||
| $ | % of total revenue |
$ | % of total revenue |
|
| Customer A | 958,215 | 35.1 | 967,115 | 34.3 |
| Next five top customers | ||||
| Customer B | 412,223 | 15.1 | 466,487 | 16.5 |
| Customer C | 355,874 | 13.0 | 418,707 | 14.8 |
| Customer D | 289,336 | 10.6 | 233,917 | 8.3 |
| Customer E | 175,861 | 6.4 | 164,597 | 5.8 |
| Customer F | 67,857 | 2.5 | – | – |
| All other customers | 471,968 | 17.3 | 572,512 | 20.3 |
| Total | 2,731,334 | 100.0 | 2,823,335 | 100.0 |
b) Revenue by geographical location (by location of operations)
| Twelve-month period ended December 31, 2023 (Unaudited) |
Twelve-month period ended December 31, 2020 (Audited) |
|||
| $ | % of total revenue |
$ | % of total revenue |
|
| Singapore | 1,168,360 | 42.8 | 1,228,385 | 43.5 |
| Indonesia | 338,879 | 12.4 | 293,055 | 10.4 |
| Other Asia countries | 234,557 | 8.6 | 160,856 | 5.7 |
| Europe | 210,206 | 7.7 | 225,155 | 8.0 |
| United States | 770,298 | 28.2 | 885,199 | 31.4 |
| Other regions | 9,034 | 0.3 | 30,685 | 1.0 |
| Total | 2,731,334 | 100.0 | 2,823,335 | 100.0 |
c) Total assets by geographical location
| As at December 31, 2023 (Unaudited) |
As at December 31, 2020 (Audited) |
|||
| $ | % of total assets |
$ | % of total assets |
|
| Singapore | 29,766 | 3.2 | 45,245 | 4.3 |
| Indonesia | 515,216 | 55.2 | 586,881 | 56.2 |
| Other Asia countries | 343,178 | 36.8 | 381,092 | 36.5 |
| Europe | 7,033 | 0.8 | 5,006 | 0.5 |
| United States | 31,329 | 3.4 | 20,717 | 2.0 |
| Other regions | 6,287 | 0.6 | 5,111 | 0.5 |
| Total | 932,809 | 100.0 | 1,044,052 | 100.0 |
d) Financial information by business segments
| Messaging | Software products and services |
Unallocated | Total | |||||
| $ | $ | $ | $ | |||||
| Twelve-month period ended December 31, 2023 (Unaudited) |
||||||||
| Revenue | 1,338,627 | 1,392,707 | – | 2,731,334 | ||||
| Intersegment revenue | 10,375 | 222,572 | – | 232,947 | ||||
| Amortization and depreciation | – | 87,387 | – | 87,387 | ||||
| Interest income | 41 | 192 | – | 233 | ||||
| Interest and finance expenses | – | 9,653 | – | 9,653 | ||||
| Income tax expense | – | 9,443 | – | 9,443 | ||||
| Segment profits/(losses) | 252,775 | 280,703 | (252,316 | ) | 281,162 | |||
| Additions to segment non-current assets | – | 59,526 | – | 59,526 | ||||
| At December 31, 2023 (Unaudited) | ||||||||
| Segment assets | 150,465 | 774,767 | 7,577 | 932,809 | ||||
| Segment liabilities | (3,059,029 | ) | (1,344,928 | ) | (2,518,096 | ) | (6,922,053 | ) |
| Messaging | Software products and services |
Unallocated | Total | |||||
| $ | $ | $ | $ | |||||
| Twelve-month period ended December 31, 2020 (Audited) |
||||||||
| Revenue | 1,386,756 | 1,436,579 | – | 2,823,335 | ||||
| Intersegment revenue | – | 11,382 | – | 11,382 | ||||
| Amortization and depreciation | – | 73,026 | – | 73,026 | ||||
| Interest income | 1 | 200 | – | 201 | ||||
| Interest and finance expenses | – | 15,486 | – | 15,486 | ||||
| Income tax expense | – | 949 | – | 949 | ||||
| Segment profits/(losses) | 255,253 | (102,672 | ) | (156,089 | ) | (3,508 | ) | |
| Additions to segment non-current assets | – | 18,732 | – | 18,732 | ||||
| At December 31, 2020 (Audited) | ||||||||
| Segment assets | 195,671 | 846,158 | 2,223 | 1,044,052 | ||||
| Segment liabilities | (3,730,960 | ) | (1,386,298 | ) | (2,319,955 | ) | (7,437,213 | ) |
Outlook
The Corporation announces its financial forecasts for the twelve months ending December 31, 2023. The information included in this news release represents management’s guidance as approved on February 11, 2023. The financial outlook was prepared for BHL, the ultimate holding company of the Corporation, for its public company reporting obligations in Japan.
The material factors and assumptions used to develop the financial outlook include:
- Continued business from the Corporation’s major customers. The actual gross margin of Software Products and Services achieved 50.3% for the year ended December 31, 2023 and with the expected increase in revenue earned from business with key customers of the Corporation, the forecasted gross margin of 34.8% in 2023 is reasonable and achievable. The man-hour rates in 2023 had been adjusted substantially to be in line with prevailing market rates hence the increment in man-hour rates in 2023 will be at reduced rate while the salary increments are factored in the 2023 budget. Management believes that the forecast revenue and gross margin is conservative and reasonable.
- The actual traffic growth rate of A2P business for the year ended December 31, 2023 declined by 11.2% compared to the year ended December 31, 2020. Both the North Asia and South East Asia region experienced stiff competition hence the growth from this region was affected. The Corporation also adjusted the prices to improve gross margin but that also resulted in a decrease in traffic from customers. Revenue for the year ended December 31, 2023 decreased by 3.5% while annual gross margin increased to 24.1% compared with gross margin of 20.5% for the year ended December 31, 2020. The actual gross margin for the quarter ended December 31, 2023 of 34.2% showed that the gross margin increased steeply as the Corporation experienced recovery from the impact of the coronavirus (COVID-19) outbreak as compared to the prior quarter ended December 31, 2020. The extent that the coronavirus (COVID-19) outbreak will spread widely and its impact on our result will depend on future developments, which are highly uncertain and unpredictable as shown by the recent surge in infection due to the Omicron variant. Although uncertain at this time, the outbreak could impede our ability to sell, grow and attract new customers. A number of our employees travel frequently to establish and maintain relationships with our customers. Although we continue to monitor the situation and may adjust our current policies as more information and guidance become available, suspending travel, not doing business in-person, and employees government imposed quarantined or sanitary public health authority imposed closures could negatively impact our operations and marketing efforts and also challenge our ability to enter into new customer contracts in a timely manner, which in turn could harm our business performance.
- No significant changes in the environment (including competition) where the Corporation operates that will significantly affect the pricing of the Corporation’s services resulting in changes of the gross margin for the various business segments, except what is disclosed in note b above.
- Timely completion and launch of certain additional value-added services for the Corporation’s customers.
- The related parties agreed to convert their interest-bearing loans and notes payable to interest-free loans with effect from the year 2019 / 2020, no interest expense expected in 2023.
- Continued ability to obtain financing through loans and cash advances to support the sales operations of the Corporation.
The purpose of this financial outlook is to allow the Corporation’s ultimate holding company, BHL, to make reference and/or to use such outlook in its own financial disclosure. The operation of GINSMS is a major part of the growth strategy of BHL. As such, BHL believes that disclosing such information would be useful for its shareholders. Consequently readers of this press release are cautioned that the financial outlook of GINSMS concerning its expected gross margin and revenue is forward looking information and may not be appropriate for other purposes.
| Financial Highlights | Forecast | Forecast | Forecast | Forecast | ||||
| ($) | Jan – Mar 2022 |
Apr – Jun 2022 |
Jul – Sep 2022 |
Oct – Dec 2022 |
||||
|
Revenues $ |
||||||||
| A2P Messaging Service | 296,413 | 300,133 | 303,901 | 307,715 | ||||
| Software Product & Services | 380,270 | 380,270 | 380,270 | 380,270 | ||||
| 676,683 | 680,403 | 684,171 | 687,985 | |||||
| Cost of sales $ | ||||||||
| A2P Messaging Service | 242,760 | 245,807 | 248,893 | 252,017 | ||||
| Software Product & Services | 247,750 | 247,750 | 247,750 | 247,750 | ||||
| 490,510 | 493,557 | 496,643 | 499,767 | |||||
|
Gross profit $ |
||||||||
| A2P Messaging Service | 53,653 | 54,326 | 55,008 | 55,698 | ||||
| Software Product & Services | 132,520 | 132,520 | 132,520 | 132,520 | ||||
| 186,173 | 186,846 | 187,528 | 188,218 | |||||
|
Gross margin % |
||||||||
| A2P Messaging Service | 18.1 | % | 18.1 | % | 18.1 | % | 18.1 | % |
| Software Product & Services | 34.8 | % | 34.8 | % | 34.8 | % | 34.8 | % |
| 27.5 | % | 27.5 | % | 27.4 | % | 27.4 | % | |
| Selling, general and administrative expenses | (182,471 | ) | (182,471 | ) | (182,900 | ) | (183,754 | ) |
| Operating profit | 3,702 | 4,375 | 4,628 | 4,464 | ||||
| Non-operating income (1) | – | – | – | – | ||||
| Non-operating expenses (1) | (2,516 | ) | (2,516 | ) | (2,727 | ) | (3,150 | ) |
| Ordinary profit | 1,186 | 1,859 | 1,901 | 1,314 | ||||
| Extraordinary gains | – | – | – | – | ||||
| Extraordinary losses | – | – | – | – | ||||
| Profit before tax and non-controlling interest | 1,186 | 1,859 | 1,901 | 1,314 | ||||
| Income taxes | – | – | – | – | ||||
| Non-controlling interest | – | – | – | – | ||||
| Net loss for the period | 1,186 | 1,859 | 1,901 | 1,314 | ||||
| Adjusted EBITDA (2) | 25,268 | 25,941 | 26,623 | 27,317 | ||||
| (1) | Non-operating income included interest income and other non-operating income. Non-operating expenses included loss on foreign exchange and interest expense. |
| (2) | Adjusted EBITDA is a non-IFRS measure which does not have any standardized meaning under IFRS. Adjusted EBITDA is related to cash earnings and is defined for these purposes as earnings before income taxes, depreciation and amortization (in both cost of sales and general and administration expenses), interest expenses and also excludes certain non-recurring or non-cash expenditure and income. This non-IFRS measure is not recognized under IFRS and accordingly, shareholders are cautioned that this measure should not be construed as an alternative to net income determined in accordance with IFRS. The non-IFRS measure presented is unlikely to be comparable to similar measure presented by other issuers. The Corporation believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Corporation can use to fund working capital requirements, service interest and principal debt repayment and fund future growth initiatives. |
About GINSMS
GINSMS is a mobile technology and services company focusing on 2 areas namely its A2P Messaging Service and its Software Products and Services. GINSMS operates a cloud-based A2P messaging service that allows the termination of SMS to mobile subscribers of more than 200 mobile operators globally. GINSMS also develops and distribute innovative software products and services for mobile operators and enterprises and have successfully deployed more than 100 solutions worldwide. GINSMS has offices in China, Singapore, Hong Kong, Malaysia and Indonesia.
Forward Looking Statements
Certain information included in this press release may contain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, ”could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, or “continue” or the negative thereof or variations thereon or similar terminology. These statements are not historical facts, but reflect management’s current beliefs and are based on information currently available to management regarding future results and events. Particularly, these forward-looking statements are based on management’s estimate of future events based on technological advances relating to the Corporation’s services, current market conditions and past experiences of management in relation to how certain contracts will affect revenues. Forward-looking statements, by their very nature, involve significant risks, uncertainties and assumptions.
A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to dependence on major customers, system failures, delays and other problems, increasing competition, security and privacy breaches, dependence on third-party software and equipment, adequacy of network reliance, network diversity and backup systems, loss of significant information, insurance coverage, capacity limits, rapid technology changes, market acceptance, decline in volume of attractions, retention of key members of the management team, success of expansion into Chinese and other Asian markets, credit risk, consolidation of existing customers, dependence on required licenses, economy and politics in countries where the Corporation operates, conflicts of interest, effect of the COVID-19 and residency of directors and officers. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, the Corporation cannot assure the reader that actual results will be consistent with these forward-looking statements.
In particular, forward-looking statements include the following assumptions:
- Management’s belief that the Corporation’s software products and services are expected to take on a different focus based on an outsourcing model approach leveraging on the lower cost base in Indonesia and Malaysia. Therefore the revenue for the software segment in Indonesia and Malaysia should continue to increase. Management’s belief that the future growth in messaging is in the area of A2P Messaging Service and the Corporation’s investment in this area will create a viable and profitable business in the future.
- Management’s belief that the Corporation is able to generate sufficient amounts of cash through operations and financing activities to fulfil the working capital requirements of its present operations.
These forward-looking statements are made as of the date of this press release and the Corporation assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by law. Accordingly, readers should not place undue reliance on the forward-looking statements. Forward looking statements are presented in this news release for the purpose of assisting investors and others in understanding certain key elements of our expected fiscal 2020 and 2023 financial results, as well as our objectives, strategic priorities and business outlook for fiscal 2020 and 2023, and in obtaining a better understanding of the Corporation’s anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. All forward-looking statements contained in this press release are qualified by this cautionary statement.
For further information, please contact:
GINSMS Inc.
Joel Chin, CEO
Tel: +65-6441-1029
Email: [email protected]
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
