CALGARY, ALBERTA — (Marketwired) — 02/11/16 — GINSMS Inc. (TSX VENTURE: GOK) (“GINSMS” or the “Corporation”) has announced its financial results for the third and final quarter and nine months ended December 31, 2015. On January 27, 2016, the Company announced the change of its financial year end to December 31, 2015, instead of March 31, 2016. This is in line with the financial year end of its ultimate holding company, Xinhua Holdings Limited.
The annual audited financial statements of the Corporation for the nine months ended December 31, 2015 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 revised year end of December 31, 2015.
The Corporation–s financial information for the nine months ended December 31, 2015 is prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
Highlights include:
On March 27, 2014, GINSMS announced that it had launched the A2P messaging service. Mobile application developers use A2P messaging service to deliver one-time-passwords (“OTP”) for authentication of over-the-top (“OTT”) mobile applications such as Whatsapp, WeChat, Line and KakaoTalk, in-app purchase confirmations or promotion of latest game releases. Enterprises and financial institutions use A2P messaging service in the areas of mobile marketing, mobile transactions, security, customer relationship management (“CRM”) and enterprise resource planning (“ERP”). Transparency Market Research () estimated the market size of the A2P messaging service business to be US$53.07 billion globally in 2013 and growing at a compounded annual growth rate of 4.2% till 2020.
GINSMS–s A2P messaging service business started generating revenue in the month of April 2014. Revenue for the A2P messaging service business for the first quarter ended June 30, 2014, second quarter ended September 30, 2014, third quarter ended December 31, 2014 and fourth quarter ended March 31, 2015 were $78,115, $104,836, $307,127 and $627,535, respectively. Revenue for the A2P messaging service business for the first quarter ended June 30, 2015 was $808,109, for the second quarter ended September 30, 2015 was $1,066,242 and the third quarter ended December 31, 2015 was $1,195,023.
The table below outlines the changes in the major categories:
Total assets of GINSMS including cash, accounts receivable, prepaid expenses, property and equipment and development expenditures as at December 31, 2015 amounted to $2,614,429 compared to $2,082,675 as at March 31, 2015. Bank and cash balances amounted to $310,805, compared to $515,208, a decrease of 39.7%. The decrease was mainly due to getting less loans from the related parties in the current quarter ended December 31, 2015 as the Corporation relied more on the cash flow from the operation. The cash flow from financing activities is $864,627 for the nine months ended December 31, 2015 compared to $1,685,725 for the twelve months ended March 31, 2015, as shown in the selected Liquidity and Capital Resources section below.
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 Company–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 Company operates, conflicts of interest and residency of directors and officers. Although the Company 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 Company cannot assure the reader that actual results will be consistent with these forward-looking statements.
In particular, forward-looking statements include the following assumptions:
These forward-looking statements are made as of the date of this press release and the Company 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 2016 financial results, as well as our objectives, strategic priorities and business outlook for fiscal 2016, and in obtaining a better understanding of the Company–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.
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.
Contacts:
GINSMS Inc.
Joel Chin
CEO
+65-6441-1029
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