Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 47

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 47
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could adversely affect our business, financial condition and results of operations and the value of the GCL’s securities.

The gaming industry in China is subject to a variety of PRC laws and regulations, many of which are unsettled and still developing, and which could subject us or our resellers to claims or otherwise harm our business, financial condition, results of operations and growth prospects.

The gaming industry is subject
to a variety of laws in China, including but not limited to those regarding gaming, consumer protection, electronic marketing, competition,
taxation, intellectual property, export and national security, which are continuously evolving and developing. The scope and interpretation
of the laws are or may be applicable to the gaming industry are often uncertain and may be conflicting. There is a risk that existing
or future laws may be interpreted in a manner that is not consistent with the gaming industry’s current practices and could have
an adverse effect on us or our resellers’ business, financial condition, results of operations and growth prospects.

These developments and other
developments or regulations, whether existing or to be implemented, may have an adverse effect on our resellers’ business, financial
condition, results of operations and growth prospects. Furthermore, as uncertainties remain regarding the development, interpretation
and implementation of notices, laws and regulations, our resellers may become subject to additional compliance costs and liabilities
under such laws and regulations and our resellers may be ordered to rectify or terminate any actions that are deemed illegal by regulatory
authorities. Our resellers may also become subject to fines and/or other sanctions which may have material adverse effect on our business,
operations and financial condition.

Any lack of requisite approvals, licenses, or permits applicable to our resellers’ business may have a material and adverse impact on our resellers’ business, financial condition, and results of operations.

In accordance with the relevant
laws and regulations in jurisdictions in which our resellers operate, our resellers are required to maintain various approvals, licenses,
and permits to operate their business, including but not limited to business license, online publishing service license, publishing electronic
publications license, and value-added telecommunications business license. These approvals, licenses, and permits are obtained upon satisfactory
compliance with, among other things, the applicable laws and regulations.

If our resellers fail to
obtain the necessary licenses, permits and approvals, they may be subject to fines, confiscation of revenues generated from incompliance
operations, or the suspension of relevant operations. The games that we distribute may also