Resolution to discontinue part of GINSMS's business (A2P messaging services)
GINSMS Inc. (consolidated subsidiary)
A2P messaging services (SMS business). The business primarily provides cloud-based A2P (Application to Person) messaging services.
The SMS business has struggled in recent years, and profit margins in this area have been affected by new market entrants.
No extraordinary loss is expected to arise in connection with this matter. The SMS business to be discontinued reported revenue of US$171 thousand (¥27 million) and an ordinary loss of US$292 thousand (¥46 million) for the fiscal year ended December 2025.
A significant decrease in consolidated revenue is not expected as a result of discontinuing the SMS business, and there are currently no plans to revise the consolidated earnings forecast for the fiscal year ending December 2026.
Company response
A2P messaging services (SMS business), scheduled to be discontinued on 30 June 2026
The SMS business is scheduled to be discontinued on 30 June 2026. The GINSMS Group will focus on its software and services business and plans to provide opportunities, where possible, for employees to be reassigned to existing vacant positions. No extraordinary loss is expected, and the earnings forecast is not scheduled to be revised.
The Company will make a timely announcement if any event requiring disclosure arises in the future.
| Item | Details |
|---|---|
| Event name | Resolution to discontinue part of GINSMS's business (A2P messaging services) |
| Date of occurrence | 17 June 2026 (the date on which the Company's Board of Directors in Japan and GINSMS's Board of Directors in Canada resolved to discontinue the business) |
| Subject Entity | GINSMS Inc. (consolidated subsidiary) |
| Target Locations / Products | A2P messaging services (SMS business). The business primarily provides cloud-based A2P (Application to Person) messaging services. |
| Cause | The SMS business has struggled in recent years, and profit margins in this area have been affected by new market entrants. |
| Amount of Impact on Business Performance | No extraordinary loss is expected to arise in connection with this matter. The SMS business to be discontinued reported revenue of US$171 thousand (¥27 million) and an ordinary loss of US$292 thousand (¥46 million) for the fiscal year ended December 2025. |
| Impact on Earnings Forecast | A significant decrease in consolidated revenue is not expected as a result of discontinuing the SMS business, and there are currently no plans to revise the consolidated earnings forecast for the fiscal year ending December 2026. |
| Suspended operations | A2P messaging services (SMS business), scheduled to be discontinued on 30 June 2026 |
| Outlook | The SMS business is scheduled to be discontinued on 30 June 2026. The GINSMS Group will focus on its software and services business and plans to provide opportunities, where possible, for employees to be reassigned to existing vacant positions. No extraordinary loss is expected, and the earnings forecast is not scheduled to be revised. |
| Planned follow-up disclosure | The Company will make a timely announcement if any event requiring disclosure arises in the future. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The SMS business has struggled in recent years, and profit margins have declined due to the impact of new market entrants. The business will be exited to improve profitability. GINSMS will also reorganize its business to pursue more profitable growth areas in the software and services business.