CALGARY, Alberta, Feb. 13, 2019 (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, 2018.
The annual audited financial statements of the Corporation for the twelve months ended December 31, 2018 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”) of the Corporation will be ready within 120 days after the end of its year end of December 31, 2018.
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, 2018 is prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
Highlights include:
- Revenue of $5,354,948 for the twelve-month period ended December 31, 2018 as compared to $7,386,673 for the twelve-month period ended December 31, 2017.
- Revenue of $1,085,738 for the three-month period ended December 31, 2018 as compared to $1,959,794 for the three-month period ended December 31, 2017.
- Gross Profit of $638,124 for the twelve-month period ended December 31, 2018 as compared to gross profit of $767,895 for the twelve-month period ended December 31, 2017.
- Gross Profit of $158,549 for the three-month period ended December 31, 2018 as compared to gross profit of $199,443 for the three-month period ended December 31, 2017.
- Operating expenses and finance costs decreased from $1,892,691 for the twelve-month period ended December 31, 2017 to $1,841,520 for the twelve-month period ended December 31, 2018.
- Operating expenses and finance costs decreased from $506,535 for the three-month period ended December 31, 2017 to $439,148 for the three-month period ended December 31, 2018.
- Net loss of $1,203,132 for twelve-month period ended December 31, 2018 as compared to a net loss of $1,124,717 for twelve-month period ended December 31, 2017.
- Net loss of $281,084 for three-month period ended December 31, 2018 as compared to a net loss of $307,059 for three-month period ended December 31, 2017.
- The cloud-based application-to-person messaging service (the “A2P messaging”) that was introduced in March 27, 2014 has generated revenue of $793,221 and $4,142,212 for the three-month and twelve-month periods ended December 31, 2018, respectively.
Selected Profit and Loss Information
| Financial Highlights | Three-month period ended December 31, 2018 (Unaudited) |
Three-month period ended December 31, 2017 (Unaudited) |
Twelve-month period ended December 31, 2018 (Unaudited) |
Twelve-month period ended December 31, 2017 (Audited) |
||||
|
Revenues $ |
||||||||
| A2P Messaging Service | 793,221 | 1,693,797 | 4,142,212 | 6,276,759 | ||||
| Software Product & Services | 292,517 | 265,997 | 1,212,736 | 1,109,914 | ||||
| 1,085,738 | 1,959,794 | 5,354,948 | 7,386,673 | |||||
| Cost of sales $ | ||||||||
| A2P Messaging Service | 705,448 | 1,481,905 | 3,790,352 | 5,698,701 | ||||
| Software Product & Services | 221,741 | 278,446 | 926,472 | 920,077 | ||||
| 927,189 | 1,760,351 | 4,716,824 | 6,618,778 | |||||
|
Gross profit $ |
||||||||
| A2P Messaging Service | 87,773 | 211,892 | 351,860 | 578,058 | ||||
| Software Product & Services | 70,776 | (12,449 | ) | 286,264 | 189,837 | |||
| 158,549 | 199,443 | 638,124 | 767,895 | |||||
|
Gross margin % |
||||||||
| A2P Messaging Service | 11.1 | % | 12.5 | % | 8.5 | % | 9.2 | % |
| Software Product & Services | 24.2 | % | (4.7 | )% | 23.6 | % | 17.1 | % |
| 14.6 | % | 10.2 | % | 11.9 | % | 10.4 | % | |
| Adjusted EBITDA(1) $ | (150,207 | ) | (17,711 | ) | (812,726 | ) | (250,700 | ) |
| Adjusted EBITDA margin | (13.8 | )% | (0.9 | )% | (15.2 | )% | (3.4 | )% |
| Net earnings (loss) $ | (281,084 | ) | (307,059 | ) | (1,203,132 | ) | (1,124,717 | ) |
| Net earnings (loss) margin | (25.9 | )% | (15.7 | )% | (22.5 | )% | (15.2 | )% |
| Net earnings (loss) per share $ | ||||||||
| Basic | (0.002 | ) | (0.002 | ) | (0.008 | ) | (0.008 | ) |
| Diluted | N/A | N/A | N/A | 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. 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, 2018 (Unaudited) |
Three-month period ended December 31, 2017 (Unaudited) |
Twelve-month period ended December 31, 2018 (Unaudited) |
Twelve-month period ended December 31, 2017 (Audited) |
||||
| Amortization | ||||||||
| – Development expenditures | – | 84,883 | 40,838 | 167,291 | ||||
| Loss on written off of | ||||||||
| development expenditures | – | – | 255,304 | – | ||||
| Depreciation | ||||||||
| – Property, plant and equipment | 6,500 | 8,679 | 25,867 | 22,903 | ||||
| Salaries and wages | 200,291 | 172,462 | 792,781 | 657,176 | ||||
| Subcontractor costs | 707,339 | 1,481,807 | 3,543,691 | 5,702,920 | ||||
| Software and hardware | 9,908 | 4,878 | 43,230 | 27,079 | ||||
| Others | 3,151 | 7,642 | 15,113 | 41,409 | ||||
| 927,189 | 1,760,351 | 4,716,824 | 6,618,778 | |||||
Operating Expenses and Finance Costs
|
|
Three-month period ended December 31, 2018 (Unaudited) |
Three-month period ended December 31, 2017 (Unaudited) |
Twelve-month period ended December 31, 2018 (Unaudited) |
Twelve-month period ended December 31, 2017 (Audited) |
||||
| Salaries and wages | 193,450 | 180,886 | 695,457 | 715,827 | ||||
| Directors’ fees | 40,000 | 40,000 | 40,000 | 40,000 | ||||
| Professional fees | 75,453 | 75,323 | 330,142 | 339,362 | ||||
| Foreign currency exchange loss/(gain) | 27,426 | (39,450 | ) | 189,073 | (130,096 | ) | ||
| Other general & administrative expenses | 47,155 | 53,955 | 236,779 | 236,205 | ||||
| Allowance for doubtful debts | 26,104 | – | 26,104 | 7,489 | ||||
| Depreciation | ||||||||
| – Property, plant and equipment | 144 | 292 | 1,026 | 1,438 | ||||
| Interest expenses | 134,289 | 142,862 | 427,812 | 629,799 | ||||
| Gain on disposal of development expenditures | (108,971 | ) | – | (108,971 | ) | – | ||
| Loss on written-off of property, plant and equipment | 4,098 | 52,667 | 4,098 | 52,667 | ||||
| 439,148 | 506,535 | 1,841,520 | 1,892,691 | |||||
Selected Balance Sheet Information
| December 31, 2018 (Unaudited) $ |
December 31, 2017 (Audited) $ |
|||
|
Current Assets |
||||
| Accounts receivable | 664,031 | 1,238,898 | ||
| Other receivables, prepayments and deposits | 98,760 | 158,429 | ||
| Bank and cash balances | 267,951 | 340,765 | ||
| 1,030,742 | 1,738,092 | |||
| Non-Current Assets | ||||
| Property, plant and equipment | 35,486 | 36,769 | ||
| Development expenditures | – | 297,436 | ||
|
TOTAL ASSETS |
1,066,228 | 2,072,297 | ||
| Current Liabilities | ||||
| Accounts payable and accrued liabilities | 1,210,856 | 1,539,484 | ||
| Advances from related parties | 398,659 | 475,620 | ||
| Promissory note payable | 532,000 | 484,000 | ||
| Loan from a related party | 348,009 | 284,217 | ||
| Current tax liabilities | 588 | 601 | ||
| 2,490,112 | 2,783,922 | |||
| Non-Current Liabilities | ||||
| Loans from related parties | 4,624,623 | 4,170,273 | ||
| Deferred tax liability | 1,188 | 1,153 | ||
| TOTAL LIABILITIES | 7,115,923 | 6,955,348 | ||
| Equity | ||||
| Share capital | 11,415,709 | 11,415,709 | ||
| Deficit | (17,717,269 | ) | (16,517,730 | ) |
| Accumulated other comprehensive income | 264,252 | 227,905 | ||
| Total deficiency attributable to equity shareholders | (6,037,308 | ) | (4,874,116 | ) |
| Non-controlling interest | (12,387 | ) | (8,935 | ) |
| TOTAL DEFICIENCY | (6,049,695 | ) | (4,883,051 | ) |
| TOTAL LIABILITIES & EQUITY | 1,066,228 | 2,072,297 | ||
Total assets of GINSMS including cash, accounts receivable, other receivables, prepayment and deposits, property, plant and equipment and development expenditures as at December 31, 2018 amounted to $1,066,228 compared to December 31, 2017 amounted to $2,072,297. Bank and cash balances amounted to $267,951 as at December 31, 2018 a decrease of 21.4% compared to $340,765 as at December 31, 2017. This decrease was mainly due to cash flow used in the operation of the Corporation. The cash flow from financing activities deteriorated from $663,765 for the twelve months ended December 31, 2017 to net cash flow used in financing activities of $86,159 for the twelve months ended December 31, 2018. The cash flow used in operating activities reduced from $328,533 for the twelve months ended December 31, 2017 to $71,036 for the twelve months ended December 31, 2018.
Selected Liquidity and Capital Resources Information
| Financial Highlights | Three-month period ended December 31, 2018 (Unaudited) |
Three-month period ended December 31, 2017 (Unaudited) |
Twelve-month period ended December 31, 2018 (Unaudited) |
Twelve-month period ended December 31, 2017 (Audited) |
||||
| Cash, beginning of period/year | 245,855 | 121,245 | 340,765 | 139,808 | ||||
| Operating activities | ||||||||
| Net loss for the period/year | (281,084 | ) | (307,059 | ) | (1,203,132 | ) | (1,124,717 | ) |
| Current tax expense/ (credit) | – | 9 | (384 | ) | – | |||
| Deferred tax expense /(credit) | (244 | ) | (79 | ) | 120 | (79 | ) | |
| Interest expenses | 134,289 | 142,862 | 427,812 | 629,799 | ||||
| Foreign currency exchange (gain)/loss | 27,425 | (39,450 | ) | 189,073 | (130,096 | ) | ||
| Allowance for doubtful accounts | 26,104 | – | 26,104 | 7,489 | ||||
| Loss on written-off of property, plant and equipment | 4,098 | 52,667 | 4,098 | 52,667 | ||||
| Gain on disposal of development expenditures | (108,971 | ) | – | (108,971 | ) | – | ||
| Impairment of development expenditures | – | – | 255,304 | – | ||||
| Amortization and depreciation | 6,644 | 93,854 | 67,731 | 191,632 | ||||
| Changes in working capital items | 128,198 | 325,843 | 270,825 | 44,772 | ||||
| Income tax refund | – | – | 384 | – | ||||
| Net cash generated from/(used in) operating activities | (63,541 | ) | 268,647 | (71,036 | ) | (328,533 | ) | |
| Financing activities | ||||||||
| Advances from related parties | 1,403 | 38,120 | 110,058 | 241,024 | ||||
| Repayment of advance from a related party | (9,002 | ) | (2,335 | ) | (196,217 | ) | (494,542 | ) |
| Repayment of loan from a related party | – | – | – | (13,997 | ) | |||
| Proceed from private placement | – | – | – | 931,280 | ||||
| Net cash generated from/(used in) financing activities | (7,599 | ) | 35,785 | (86,159 | ) | 663,765 | ||
| Investing activities | ||||||||
| Purchase of property, plant and equipment | (9,392 | ) | (58,951 | ) | (29,282 | ) | (77,783 | ) |
| Development expenditures | – | – | (5,232 | ) | (112 | ) | ||
| Proceed from disposal of development expenditures | 114,200 | – | 114,200 | – | ||||
| Net cash generated from/(used in) investing activities | 104,808 | (58,951 | ) | 79,686 | (77,895 | ) | ||
| Effect of exchange rate changes on cash held in foreign currencies | (11,572 | ) | (25,961 | ) | 4,695 | (56,380 | ) | |
| Increase/(Decrease) in cash | 22,096 | 219,520 | (72,814 | ) | 200,957 | |||
| Cash, end of period/year | 267,951 | 340,765 | 267,951 | 340,765 | ||||
SEGMENTED INFORMATION
a) Revenue by customers
| Twelve-month period ended December 31, 2018 (Unaudited) |
Twelve-month period ended December 31, 2017 (Audited) |
|||||||
| $ | % of total revenue |
$ | % of total revenue |
|||||
| Customer A | 1,956,474 | 36.5 | 3,768,390 | 51.0 | ||||
| Next five top customers | ||||||||
| Customer B | 894,287 | 16.7 | 730,873 | 9.9 | ||||
| Customer C | 676,709 | 12.6 | 1,631,089 | 22.1 | ||||
| Customer D | 386,821 | 7.2 | – | – | ||||
| Customer E | 326,912 | 6.1 | 84,113 | 1.1 | ||||
| Customer F | 165,551 | 3.1 | 284,623 | 3.9 | ||||
| All other customers | 948,194 | 17.8 | 887,585 | 12.0 | ||||
| Total | 5,354,948 | 100.0 | 7,386,673 | 100.0 | ||||
b) Revenue by geographical location (by location of operations)
| Twelve-month period ended December 31, 2018 (Unaudited) |
Twelve-month period ended December 31, 2017 (Audited) |
|||||||
| $ | % of total revenue |
$ | % of total revenue |
|||||
| Singapore | 3,071,621 | 57.4 | 4,823,833 | 65.3 | ||||
| United Arab Emirates | 71,529 | 1.3 | 297,307 | 4.0 | ||||
| Other Asia countries | 818,249 | 15.3 | 363,684 | 4.9 | ||||
| Europe | 323,578 | 6.0 | 252,680 | 3.4 | ||||
| United States | 1,064,223 | 19.9 | 1,631,399 | 22.1 | ||||
| Other regions | 5,748 | 0.1 | 17,770 | 0.3 | ||||
| Total | 5,354,948 | 100.0 | 7,386,673 | 100.0 | ||||
c) Total assets by geographical location
| As at December 31, 2018 (Unaudited) |
As at December 31, 2017 (Audited) |
|||||||
| $ | % of total assets |
$ | % of total assets |
|||||
| Singapore | 236,281 | 22.2 | 1,136,630 | 54.9 | ||||
| United Arab Emirates | 18,762 | 1.8 | 9,088 | 0.4 | ||||
| Other Asia countries | 526,649 | 49.4 | 825,580 | 39.8 | ||||
| Europe | 39,714 | 3.7 | 38,582 | 1.9 | ||||
| United States | 239,946 | 22.5 | 35,802 | 1.7 | ||||
| Other regions | 4,876 | 0.4 | 26,615 | 1.3 | ||||
| Total | 1,066,228 | 100.0 | 2,072,297 | 100.0 | ||||
d) Financial information by business segments
| Messaging | Software products and services |
Unallocated | Total | |||||
| $ | $ | $ | $ | |||||
| Twelve-month period ended December 31, 2018 (Unaudited) |
||||||||
| Revenue | 4,142,212 | 1,212,736 | – | 5,354,948 | ||||
| Intersegment revenue | – | 618,445 | – | 618,445 | ||||
| Amortization and depreciation | – | 67,731 | – | 67,731 | ||||
| Interest income | 199 | 188 | – | 387 | ||||
| Interest and finance expenses | 291,099 | 51,186 | 85,527 | 427,812 | ||||
| Income tax credit | – | 264 | – | 264 | ||||
| Segment profits/(losses) | 611,957 | (1,407,755 | ) | (407,334 | ) | (1,203,132 | ) | |
| Additions to segment non-current assets | – | 34,514 | – | 34,514 | ||||
| At December 31, 2018 (Unaudited) | ||||||||
| Segment assets | 537,395 | 526,617 | 2,216 | 1,066,228 | ||||
| Segment liabilities | (3,574,336 | ) | (2,349,687 | ) | (1,191,900 | ) | (7,115,923 | ) |
| Messaging | Software products and services |
Unallocated | Total | |||||
| $ | $ | $ | $ | |||||
| Twelve-month period ended December 31, 2017 (Audited) |
||||||||
| Revenue | 6,276,759 | 1,109,914 | – | 7,386,673 | ||||
| Intersegment revenue | – | 303,700 | – | 303,700 | ||||
| Amortization and depreciation | – | 191,632 | – | 191,632 | ||||
| Interest income | 3 | 67 | – | 70 | ||||
| Interest and finance expenses | 301,816 | 240,134 | 87,849 | 629,799 | ||||
| Income tax expense | – | 79 | – | 79 | ||||
| Segment profits/(losses) | 307,607 | (1,146,508 | ) | (285,816 | ) | (1,124,717 | ) | |
| Additions to segment non-current assets | – | 77,895 | – | 77,895 | ||||
| At December 31, 2017 (Audited) | ||||||||
| Segment assets | 1,278,905 | 773,948 | 19,444 | 2,072,297 | ||||
| Segment liabilities | (4,144,320 | ) | (1,752,317 | ) | (1,058,711 | ) | (6,955,348 | ) |
Outlook
The Corporation announces its financial forecasts for the twelve months ending December 31, 2019. The information included in this news release represents management’s guidance as approved on February 13, 2019. 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 23.6% for the year ended December 31, 2018 and with the expected increased revenue earned from business with key customers of the Corporation, the forecasted gross margin of 45.6% in 2019 is reasonable and achievable. The man-hour rates in 2019 have been adjusted substantially to be in line with prevailing market rates as the management noted the old man-hour rates in 2018 were understated.
- The actual traffic growth rate of A2P business for the year ended December 31, 2018 declined by 30.9% compared to the year ended December 31, 2017. The North Asia region experienced stiff competition and the growth from this region was affected. The Corporation also lost one key customer from the South East Asia region in Q2 2018. Revenue for the year ended December 31, 2018 decreased by 34.0% and the gross margin decreased marginally by 0.7% compared with the revenue and gross margin for the year ended December 31, 2017. Gross margin earned from the South East Asia region is always lower than the North East Asia region. With the decrease in business from both South East Asia and North Asia regions, the Corporation will likely have lower traffic, revenue and gross margin in 2019. Management believes that the forecast revenue and gross margin is conservative and reasonable.
- 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.
- Timely completion and launch of certain additional value-added services for the Corporation’s customers.
- Except for the interest expense on loans from related parties, the expenses were forecasted to increase in line with the forecasted 3.9% inflation in 2019. Interest expenses were computed based on interest rate of 12% per annum on the estimated outstanding loans in 2019.
- 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 net earnings and net assets positions is forward looking information and may not be appropriate for other purposes.
| Financial Highlights | Forecast | Forecast | Forecast | Forecast | ||||
| ($) | Jan – Mar 2019 |
Apr – Jun 2019 |
Jul – Sep 2019 |
Oct – Dec 2019 |
||||
| Revenues $ | ||||||||
| A2P Messaging Service | 649,867 | 658,024 | 666,284 | 674,647 | ||||
| Software Product & Services | 343,569 | 343,569 | 343,569 | 343,569 | ||||
| 993,436 | 1,001,593 | 1,009,853 | 1,018,216 | |||||
| Cost of sales $ | ||||||||
| A2P Messaging Service | 604,642 | 612,231 | 619,916 | 627,698 | ||||
| Software Product & Services | 186,286 | 186,771 | 186,858 | 187,297 | ||||
| 790,928 | 799,002 | 806,774 | 814,995 | |||||
| Gross profit $ | ||||||||
| A2P Messaging Service | 45,225 | 45,793 | 46,368 | 46,949 | ||||
| Software Product & Services | 157,283 | 156,798 | 156,711 | 156,272 | ||||
| 202,508 | 202,591 | 203,079 | 203,221 | |||||
| Gross margin % | ||||||||
| A2P Messaging Service | 7.0 | % | 7.0 | % | 7.0 | % | 7.0 | % |
| Software Product & Services | 45.8 | % | 45.6 | % | 45.6 | % | 45.5 | % |
| 20.4 | % | 20.2 | % | 20.1 | % | 20.0 | % | |
| Selling, general and administrative expenses | (237,509 | ) | (332,826 | ) | (237,509 | ) | (237,509 | ) |
| Operating loss | (35,001 | ) | (130,235 | ) | (34,430 | ) | (34,288 | ) |
| Non-operating income (1) | – | – | – | – | ||||
| Non-operating expenses (1) | (136,420 | ) | (140,190 | ) | (144,074 | ) | (148,076 | ) |
| Ordinary loss | (171,421 | ) | (270,425 | ) | (178,504 | ) | (182,364 | ) |
| Extraordinary gains | – | – | – | – | ||||
| Extraordinary losses | – | – | – | – | ||||
| Loss before tax and non-controlling interest | (171,421 | ) | (270,425 | ) | (178,504 | ) | (182,364 | ) |
| Income taxes | – | – | – | – | ||||
| Non-controlling interest | – | – | – | – | ||||
| Net loss for the period | (171,421 | ) | (270,425 | ) | (178,504 | ) | (182,364 | ) |
| Adjusted EBITDA (2) | (31,733 | ) | (126,482 | ) | (30,591 | ) | (30,009 | ) |
(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. 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 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 availability of 3G/4G services in China and the rest of the world will continue to create demand for the Corporation’s software products and services.
- 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 2019 financial results, as well as our objectives, strategic priorities and business outlook for fiscal 2019, 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.
