Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 48

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 48
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 could limit the legal protections available or impose additional requirements and obligations on our business operation in Hong Kong, which may materially and adversely affect our business, financial condition, and results of operations.

Although we are based in Singapore
and our major markets are in southeast Asia, we have recently formed a wholly-owned subsidiary in Hainan province in China to support
our collaboration efforts with game developers and a game platform in China, and a wholly-owned subsidiary in the U.K. to support our
game publishing and game development business in Europe. We are subject to certain risks related to operating business in China. Epicsoft
Hong Kong and 2Game, two of the Group Subsidiaries, are located in Hong Kong. The PRC government currently does not directly govern the
manner in which Epicsoft Hong Kong and 2Game conduct their business activities outside of mainland China. However, despite the current
Hong Kong legal environment of “One Country, Two Systems,” the PRC government may still exert substantial influence, discretion,
oversight, and control over the manner in which Hong Kong-based companies must conduct their business activities. The PRC legal system
is a civil law system based on written statutes. Unlike the common law system, prior court decisions under the civil law system may be
cited for reference but have limited precedential value. The legal system in China evolves rapidly and new laws, regulations and rules
may be adopted from time to time with or without advance notice. These laws, regulations, and legal requirements are constantly changing
and their interpretation and enforcement involve inconsistency and uncertainties. In addition, the enforcement of laws and that rules
and regulations in China can change quickly with little advance notice. These uncertainties could limit the legal protections available
to us. Further, the PRC government has significant oversight and discretion over the conduct of our business in Hong Kong and may intervene
or influence our operations as the government deems appropriate to further regulatory, political and societal goals.

We cannot predict the effect
of future developments in the PRC legal system, particularly with regard to internet-related industries, including the promulgation of
new laws, changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations by national laws.
Such unpredictability towards its contractual, property (including intellectual property) and procedural rights could adversely affect
our business and impede our ability to continue its operations. Any such intervention in or influence on our business operations or action
to exert more oversight and control over securities offerings and other capital