Komori
Occurring Fact9399Beat Holdings LimitedInformation and Communications, Services and Others

Notice Regarding the Discontinuation of Certain Operations at a Consolidated Subsidiary

GINSMS Inc., a consolidated subsidiary, plans to discontinue its cloud-based A2P messaging (SMS) business on 30 June 2026. Going forward, it will focus on its software and services business.

Worth reading
43Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
171
Thousands of U.S. dollars (revenue for the fiscal year ended December 2025: ¥27 million)
Wording
Conditional
How definitive the wording is.

Resolution to discontinue part of GINSMS's business (A2P messaging services)

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.

Occurrence17 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)
This disclosure06/18/2026
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.

Company response

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.

Event that occurred
ItemDetails
Event nameResolution to discontinue part of GINSMS's business (A2P messaging services)
Date of occurrence17 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 EntityGINSMS Inc. (consolidated subsidiary)
Target Locations / ProductsA2P messaging services (SMS business). The business primarily provides cloud-based A2P (Application to Person) messaging services.
CauseThe 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 PerformanceNo 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 ForecastA 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 operationsA2P messaging services (SMS business), scheduled to be discontinued on 30 June 2026
OutlookThe 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 disclosureThe Company will make a timely announcement if any event requiring disclosure arises in the future.
Items this document does not state (15)
Date recognized / date notice receivedAccounting period in which recognizedType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the change

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.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Discontinuation of Certain Operations at a Consolidated Subsidiary | Beat Holdings Limited (9399) timely disclosure | Komori