Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 117

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 117
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 are two important pillars in the entertainment industry, toys and games are typically sold separately. However, leveraging emerging technologies, Nintendo Co. Ltd. (“ Nintendo”) succeeded in launching a series of Amiibos toy collectibles with the addition of in-game content within each toy. These Amiibo figures use built-in near field communication (“ NFC”) technology to interact with supported video game software, allowing data to be transferred in and out of games and across multiple platforms. Based on a report published by Nintendo as of November 9, 2022, Nintendo shipped more than 77 million units of amiibo figures as of September 30, 2022 16. As we continue to build a strong pipeline of game IP through our publishing business, we would be well positioned to develop our own toy collectible series that comes with activation keys with in-game content. We believe that if we are successful in merging our game offerings with in-game content into toys, we will have an opportunity to tap into the global toy market.

Sales and Marketing

We sell our game titles both physically and digitally in Asia through our direct relationships with resellers through their physical and digital storefronts. Our top customers include regional resellers in Singapore, Hong Kong, Malaysia, Japan, South Korea, Taiwan, Thailand, Indonesia, the Philippines and other Asian countries. We have sales operations in Singapore, Hong Kong, Malaysia, but also have marketing staff in Europe, the Middle East and other parts of the world outside of Asia.

For the six months ended September 30, 2024 and fiscal year ended March 31, 2024, approximately 96.4% and 93.3% of our total consolidated revenue was generated from game distributions, respectively. We are dependent on a limited number of customers that account for a significant portion of sales. For the fiscal year ended March 31, 2024, our biggest customer accounted for approximately 17% of our total revenue, with each of the next three biggest customers accounting for more than 10% of our total revenue during the same period. For the fiscal year ended March 31, 2023, sales to our five biggest customers accounted for almost half of our total consolidated revenue, with the top three customers accounting for approximately 13%, 11%, and 10% of our total revenue, respectively. While we believe digital distribution will continue to rise and presents an important growth opportunity for our industry and company, we expect that packaged goods and traditional retailers will continue to be a significant channel for the sale