Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 46

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 46
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 in China, a wholly-owned subsidiary in the U.K. to support
our game publishing and game development business in Europe, and a wholly-owned subsidiary in Japan to support our game publishing and
game development business in Japan. With our recent acquisition of Ban Leong, we now have operations in Thailand and expanded operations
in Malaysia. 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. Please refer to “Business — Regulations Applicable to the Company – Regulations in Hong Kong” for further information.

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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 markets activities, once taken by the PRC government