Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 104

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 104
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 target audience. This strategy will not only bolster our market leading position in the game distribution market but also attract
more game publishing opportunities to us, and therefore enhancing our overall ability to monetize game IP. To further expand our game
titles offerings, we have started extensive planning of a large scale game development project since early 2024. For instance, in December
2024, Nekcom signed a publishing agreement with us appointing 4Divinity as Nekcom’s global publisher and distributor of its upcoming
game Showa American Story, excluding certain regions previously licensed to other parties.

Invest in game IP, development studios, and distribution channels, including digitally delivered content

The interactive entertainment
software industry is delivering a growing amount of content for traditional platforms through digital download. Partly due to the availability
of digital-only consoles and early-access benefits of digital copies of video games, we believe digital distribution of the games will
continue to rise. We provide digitally delivered games in the form of activation keys, which typically have a higher gross margin than
physically delivered boxed console games. Many of our titles that are available through retailers as packaged goods products are also
available through activation keys (from websites we own or third-party websites). We will continue to invest in emerging opportunities
in upcoming titles across all platforms, as well as downloadable content for existing titles.

During the fiscal year 2025,
we have made an equity investment in Nekcom, Inc., a development studio based in China, and have announced plans to invest in other promising
game development studios as part of our concerted effort to move upstream into game IP development. We believe in investing in culturally
distinctive and globally resonant game IP. We are committed to building a portfolio of valuable game IP, and believe we can
offer development studios with the capital, publishing reach, and strategic support needed for them to scale globally.

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Grow into a fully integrated ecosystem in the industry through organic growth and strategic acquisitions of complementary or ancillary businesses

Based on our core business
in game distribution, we know the demand of the gaming community in the Asian markets. In 2022, we started to dedicate resources to game
publishing by forming a wholly-owned subsidiary, 4Divinity, to invest in game IP. In December 2024 and April 2025, each of 4Divinity
UK and 4Divinity JP was formed as a wholly-owned subsidiary of 4Divinity to support GCL Group