CALGARY, ALBERTA — (Marketwired) — 03/30/16 — GINSMS Inc. (TSX VENTURE: GOK) (the “Corporation” or “GINSMS”) is pleased to announced that its audited financial statements for the nine-month period ended December 31, 2015 have been filed today on SEDAR and are available at . The nine-month period ended December 31, 2015 constitutes a transitional financial year for GINSMS following the Corporation–s earlier announcement that it would change its financial year end from March 31 to December 31.
On February 11, 2016, GINSMS had disclosed through the issuance of a press release unaudited financial results for the three- and the nine-month periods ended December 31, 2015. This financial disclosure was done in advance of the filing of the audited financial statements of the Corporation to allow GINSMS– ultimate holding company, Xinhua Holdings Limited (“Xinhua”), a public company in Japan, to use certain of GINSMS– financial information in the preparation of Xinhua–s financial statements.
GINSMS– financial information for the nine-month period ended December 31, 2015 was prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
GINSMS is pleased to report that there is no significant change between the audited financial statements filed today and the unaudited financial information it disclosed earlier on February 11, 2016, except for the reclassification of a writeback of deferred tax liability on intangible assets for year ended March 31, 2015 and the presentation of segment information for the nine-month period ended December 31, 2015 and for year ended March 31, 2015.
The auditors of the Corporation are of the opinion that the writeback of deferred tax liability on intangible assets amounting to $126,259 taken in the year ended March 31, 2015 should have been included instead in the income tax credit as shown in the audited financial statements for the nine-month period ended December 31, 2015. Initially, this amount was shown in the loss from operation in the audited financial statements for the year ended March 31, 2015. Accordingly, the writeback of deferred tax liability on intangible assets has been reclassified to now be included as deferred tax credit under “Liquidity and Capital Resources” and as income tax credit under “Segment information -(d) Financial information by business segments”. In the Corporation–s February 11, 2016 press release, the amount had been disclosed separately under “Liquidity and Capital Resources” and not included in income tax credit under “Segment information -(d) Financial information by business segments”.
The auditors of the Corporation have changed the presentation of the segment information in the audited financial statements compared to prior year. In order to be consistent with the presentation in the audited financial statements, the presentation of the segment information for the nine-month period ended December 31, 2015 and for year ended March 31, 2015 as disclosed in the unaudited financial information earlier on February 11, 2016 has been changed. Moreover, the total assets by geographical location not disclosed in the unaudited financial information earlier on February 11, 2016 is now disclosed.
LIQUIDITY AND CAPITAL RESOURCES (AMENDED)
SEGMENTED INFORMATION (AMENDED)
a) Revenue by customers
b) Revenue by geographical locations
c) Total assets by geographical location
d) Financial information by business segments
In addition, the Corporation expects to record net earnings in the financial year ending December 2019 and recover from its current negative net asset position by the end of the 2020 financial year. The purpose of this financial outlook is to allow the Corporation–s ultimate holding company, Xinhua, to make reference to use such outlook in its own financial disclosure. The operation of GINSMS is a major part of the growth strategy of Xinhua. As such, Xinhua 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.
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 GINSMS– 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 included in the present press release are based on the following assumptions:
These forward-looking statements are made as of the date of this press release, have been approved by management as of the date hereof 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. 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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