GMO-Z com securities (Thailand) extends operations to recover debt

GMO-Z com Securities (Thailand) Public Company Limited, a consolidated subsidiary of GMO Financial Holdings, has decided to change the timing of its securities business license surrender from December 31, 2025, to December 31, 2026. This aims to allow the subsidiary to continue efforts in recovering approximately JPY 110 billion in receivables stemming from its credit trading services, which were terminated on December 20, 2024.

The Thai subsidiary had previously accumulated significant bad debt provisions due to volatile stock prices affecting collateralized securities in its credit trading services, leading to continuous losses. As of September 2025, outstanding receivables have decreased to approximately JPY 75 billion, secured by JPY 113 billion in stock collateral, resulting in a collateral coverage ratio of 217.9%.

Maintaining the securities business license is deemed beneficial for the subsidiary to conduct stock sale procedures directly. This will aid in the swift and smooth execution of collateral disposal to recover outstanding debt, especially if significant repayment delays or further declines in collateral value occur. GMO Financial Holdings anticipates a minor impact on its consolidated performance for the December 2025 fiscal year due to this change.