Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 108

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 4A
Chunk 108
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,459             
  Gross profit percentage                                               63.1                         —                      63.1      100.0  
  Total                                                                                                                                      
  Gross profit                 $                                  13,318,458      $         13,845,547      $           (527,089             
  Gross profit margin                                                   13.7                      17.9                      (4.2       (3.8  

Our gross profit decreased
by approximately $0.5 million, or 3.8%, to approximately $13.3 million for the year ended March 31, 2024 from approximately
$13.8 million for the same period in 2023. The decrease in profit was primarily attributable to decreased gross profit from game
publishing by approximately $1.0 million and decreased gross profit from advertising services by approximately $0.4 million
for the year ended March 31, 2024. The decrease in gross profit then was offset by an increased gross profit from sale of console
game by approximately $0.6 million and increased gross profit from others by approximately $0.2 million for the year ended March 31,
2024.

For the years ended March
31, 2024 and 2023, our overall gross margin decreased from 17.9% to 13.7%. The 4.2 % decrease was attributable to (1) 3.1% decreased in
gross margin from sales of console game as we experienced higher cost in purchasing console game for resale due to price increase from
our vendor, (2) 2.0% decrease in gross profit margin from game publishing due to certain games requiring a higher percentage of revenue
to be distributed to developers as part of their development fee structure, and (3) 4.1% decrease in the gross profit margin from
advertising services due to less revenue from video marketing campaign services and less advertising income from social media.

Operating Expenses

Total operating expenses
increased by approximately $5.5 million, or 53.4%, to approximately $15.7 for the year ended March 31, 2024 from approximately
$10.2 million for the year ended March 31, 2023. The increase was mainly attributable to the following:

Approximately $0.1 million,
or 3.2%, decrease in selling expense was mainly attributable to approximately $0.6 million decrease in advertising and marketing expense
as we received more compensation from our vendors related to qualify reimburs