GMO subsidiary delays license surrender to recover outstanding debt

GMO-Z com Securities (Thailand), a consolidated subsidiary of GMO Internet Group, has postponed the surrender of its securities business license from December 31, 2025, to December 31, 2026. This decision aims to facilitate the swift and smooth execution of collateral disposal for outstanding receivables related to margin trading services. The subsidiary ceased providing margin trading services on December 20, 2024, due to continuous losses from bad debt provisions.

The Thai subsidiary is currently engaged in collecting approximately 110 billion yen in receivables stemming from settlement default contracts. As of the end of September 2025, the remaining debt stood at approximately 75 billion yen, secured by 113 billion yen in stock collateral, resulting in a collateral coverage ratio of 217.9%. While no collateral disposal is currently required, the company believes retaining the license and managing the stock sale internally will be beneficial for debt recovery in the event of repayment delays or a decline in collateral value.

Despite this change, the subsidiary's plan to dissolve and liquidate after the license surrender remains unchanged. GMO Internet Group anticipates this alteration will have a minor impact on its consolidated financial performance for the fiscal year ending December 2025. Updates on debt collection status will continue to be provided in GMO-FH's financial results briefings.