Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 0

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 0
---
ITEM 3. KEY INFORMATION

A. Reserved

B. Capitalization and Indebtedness

Not applicable.

C. Reasons for the Offer and Use of Proceeds

Not applicable.

D. Risk Factors

Our business and our industry
are subject to significant risks. You should carefully consider all of the information set forth in this report, including the following
risk factors, in evaluating our business. If any of the following risks actually occur, our business, financial condition, results of
operations, and growth prospects would likely be materially and adversely affected. Additional risks not presently known to us or that
we currently deem immaterial may also impair our business operations. The trading price and value of our securities could decline due
to any of these risks, and you may lose all or part of your investment. This report also contains forward-looking statements that involve
risks and uncertainties. See the section entitled “ Cautionary Note Regarding Forward-Looking Statements.”

Risks Related to the Company’s Business
and Industry

Our business will suffer if we are unable
to distribute and publish new game titles, “hit” game titles or sequels to such “hit” titles.

Our business depends on distributing
and publishing games that consumers will purchase, download and spend time and money playing. We currently distribute and sell to retailers
and consumers console games, game codes, and gaming content that are compatible with major gaming consoles such as Sony PlayStation, Microsoft
Xbox, and personal computers (“PCs”). Our sales and marketing efforts are focused on both distributing more
games and improving the experience of the games we currently distribute (for example, through merchandise and localized promotional materials).
We generate revenue primarily from distribution of video games in Asia from international PC and video game publishers and studios. We
commit to a certain marketing budget to market and promote the games. For games distributed through third-party platforms such as Steam,
we are required to pay the platform providers at a pre-determined rate. These costs are expected to remain a significant portion of our
cost of revenues. In order to remain profitable, we need to generate sufficient revenue from our existing and new game offerings to offset
our ongoing development, sales and marketing and operating costs.

Since the revenue generated
from game distributions accounted for Over 86.8%, 93.3% and 87.9% of our total consolidated revenue for the fiscal years ended March 31,
2025, 2024 and 2023, respectively, the GCL Group’s success depends largely on