GCL and Hainan Animation Association partner on gaming industry development.

GCL Global Holdings, a leading games and entertainment provider, has signed a non-binding MOU with Hainan Animation and Gaming Association to form a long-term strategic partnership. The partnership aims to accelerate the development of the animation and gaming industry in Hainan, China, by combining resources and innovation to build a sustainable gaming ecosystem that attracts global enterprises and talent. The partnership will develop gaming industry strategies with an international perspective.

SINGAPORE, March 31, 2025 — GCL Global Holdings Ltd (NASDAQ: GCL), a leading provider of games and entertainment, and the Hainan Animation and Gaming Association (the Association) have signed a non-binding memorandum of understanding (MOU) to establish a long-term strategic partnership aimed at accelerating the development of the animation and gaming industry in Hainan, China. The collaboration focuses on creating gaming industry strategies with an international perspective, building a sustainable gaming ecosystem, and attracting global enterprises and talent to the region.

Under the MOU, GCL and the Association agreed to collaborate on developing gaming industry strategies with an international perspective. By combining resources and innovation, the partnership aims to build a gaming ecosystem that supports sustainable game development initiatives and attracts global enterprises and talent to Hainan, China.

Li Kai, Chairman of the Hainan Animation and Gaming Association, expressed optimism about the partnership's potential to transform the regional gaming landscape and create new opportunities for developers. "Today marks a pivotal moment as we begin talks on a partnership that could reshape the business landscape of this region," said Li Kai. "If our goals are realized, I’m confident that we will be able to provide unmatched value to animators, game developers, and small-to-medium game studios. Together with GCL, we have an opportunity to establish Hainan as a hub for the video game industry in China."

Sebastian Toke, Group CEO of GCL, noted that the partnership will allow GCL to leverage the Association’s economic and industry resources in the region to enhance its portfolio of games under development with new, internationally competitive concepts. "A partnership with the Association will allow GCL to deepen its game publishing network in China and capitalize on opportunities presented by the growing number of indie game developers in China," said Toke. "By combining our resources and expertise, we hope to create jobs and foster a dynamic industry that will fuel innovation for years to come."

The establishment of the proposed strategic partnership is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval. The MOU serves primarily as a framework for future negotiations rather than a catalyst for near-term revenue growth. Investors should note the preliminary nature of this announcement and the significant execution uncertainty despite the optimistic executive commentary.

This partnership represents a strategic move by GCL to expand its footprint in China, a rapidly growing market for games and entertainment. Hainan's strategic importance stems from China's ongoing efforts to develop the province as a special economic zone with gaming-friendly policies. The MOU is part of GCL's broader strategy to establish meaningful distribution channels in China's fragmented and regulated gaming market.

GCL Global Holdings Ltd unites people through immersive games and entertainment experiences, enabling creators to deliver engaging content and fun gameplay experiences to gaming communities worldwide with a strategic focus on the rapidly expanding Asian gaming market. Drawing on a deep understanding of gaming trends and market dynamics, GCL Group leverages its diverse portfolio of digital and physical content to bridge cultures and audiences by introducing Asian-developed IP to a global audience across consoles, PCs, and streaming platforms.

The Hainan Animation and Gaming Association is a key industry organization in Hainan's animation and gaming sector, overseeing extensive industry resources and playing a significant role in advancing the development of its regional animation and gaming industry.

Investors should remain cautious about the speculative nature of the partnership's outcomes, pending definitive agreements and regulatory approval. The cautious language throughout the announcement signals significant execution uncertainty despite the optimistic executive commentary.