GCL Global Holdings Ltd

Good morning and welcome to GCL's first half fiscal year 2026 earnings conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. Please note that this call is being recorded. I will now turn the conference over to Crocker Colson. Investor Relations for GCL Global Holdings. Mr. Colson, the floor is yours.

Thanks so much, Drew. Good morning, everyone. Good evening to those of you in Asia. And thanks to all of you for joining us to review GCL's first half fiscal year 2026 results. This morning, GCL posted both the earnings release and an investor presentation for this call to our website, which you can find at ir.gclglobalholdings.com. With us on the call today are Sebastian Tok, GCL's Group Chief Executive Officer, and Kenny Lin, GCL's Group Chief Financial Officer. After the prepared remarks are concluded, we plan to open up this call for your questions. But before we begin, some statements in this teleconference are forward-looking within the meaning of the federal securities laws. Although we believe these statements are reasonable, we can provide no assurance that they will prove to be accurate because they're perspective in nature. Actual results may differ materially from those discussed today, and we encourage you to review our most recent filings with the SEC for risk factors that could materially impact our results. As I mentioned, you can find the earnings release and the PowerPoint at the IR section at gclglobalholdings.com. We encourage you to review the reconciliations of certain non-GAAP measures contained within. With that, it's now my pleasure to turn the call over to GCL's Group CEO, Sebastian Tok. Sebastian, over to you.

Thank you, Kauka. Good morning, everyone, and thank you for joining us from wherever you are. I'm Sebastian Tok, Group CEO of GCL Global Holdings. So today, I'll walk you through our first half fiscal year 2026 results and share how we're building the foundations for long-term growth. The past six months have been nothing short of a transformation. We've expanded our scale, diversified our platform, and invested in the creative and commercial engines that will drive the group forward. With that, let's quickly start with the summary in our financial numbers. For the first half of fiscal year 2026, Our group revenues reached $98.7 million, nearly doubling year on year. This growth reflects the consolidation of Banliang Technologies, whose hardware and consumer electronics distribution has broadened our reach across Asia. It also underscores the resilience in our ecosystem strategy across video games, consumer electronics, and gaming hardware, where we continue to grow as a group despite industry-wide delays in game releases. For the same period, gross profit rose 54.5% to $10.8 million. Now, while gross margin compressed to 11% from 13.8%, this was largely expected given the integration of the hardware distribution pillar. While hardware distribution carries lower margins, it provides scale, recurring cash flow, and a stronger platform for our ecosystem. Net loss was at $5.6 million compared to $0.8 million in profit last year. This reflects integration costs associated with the acquisition, higher operating expenses, and one-off expense items tied to the Banliang acquisition. Importantly, these are investments in infrastructure, systems, and compliance that positions us for sustainable growth. EBITDA for the group swung to a loss of $2.7 million from a gain of $0.7 million the same period before. Again, this is a function of the expansion and acquisition cost in which we are absorbing today to unlock efficiencies and synergies tomorrow. What's important is that our continued top-line growth demonstrates demand and scale in our business, while the group executes on deliberate investments in all business verticals in building a stronger company. When we look at the strategic progress of the group, beyond the numbers, the first half of this year was all about execution. We completed the acquisition and delisting of Banyong Technologies, a distributor with over 30 years of history and partnerships with more than 50 global brands, such as Razer, Nvidia, Samsung, and Huawei, amongst others. This gives us multi-channel distribution across e-commerce, retail, and corporate resellers in Singapore, Malaysia, and Thailand. Integration is underway post-acquisition with a focus on operational alignment and cost efficiencies. This represents our strategic move in capturing the full ecosystem of video gaming from game development, game publishing, game distribution, and now a presence in consumer electronics and gaming hardware. Moving over to game publishing, we continue to see good demand for our existing portfolio, which includes titles such as Black Myth Wukong, Atomic Heart, S.T.A.L.K.E.R. 2, Japanese Driftmaster, and many others. Within this first half, we've also released Mandragora, Whispers of the Witch Tree in Asia. We've unveiled Island of Hearts, a full-motion game which doubles as a collaborative effort between our subsidiaries Ford Divinity and Tidal Digital Media. And excitingly, we've just revealed the trailer for The Defiant, a high visual fidelity World War II tactical FPS game. The trailer, which we've exclusively shown on IGN's channel for the first 24 hours, generated a strong global buzz with comparisons to Call of Duty and recognition for its cultural authenticity. We were pleasantly surprised with the global hype and how well received the trailer was because for the first time ever, a single-player, story-driven World War II FPS game will be telling the story from an Asian perspective, paying tribute to the personal sacrifices and war stories that occurred during the War of Resistance against Japan. The Defiant, along with our other upcoming game releases, reflects our strategy of blending Asian-developed IPs with global storytelling for the masses. On strategic investments, I'm also happy to announce that as of the announcement that we have just released an hour ago, our publishing subsidiary, 4WD, has just received an additional $10 million in strategic investments from ADATA Technology, who is a world leader in the memory and storage solution space. This investment is following the initial $3 million investment made from ADATA back in December 2025, thus bringing the total investment from ADATA to be at $13 million to date. The investments into 4Divinity was done at a valuation of $250 million, thus reinforcing and validating 4Divinity's position as a leading game publisher internationally, along with our upcoming pipeline of game titles. This capital truly strengthens our ability to secure additional high-profile titles and expands our capacity in game publishing and game development. Moving on to game partnerships and expansion, we've signed an MOU to acquire a majority stake in Alliance Star International in Taiwan, developer of a mobile game titled Kingdom Under Fire Civil War. Now, this deal is currently ongoing and acts as an important milestone as it empowers us with additional game development capabilities and marks our first foray into mobile game development. Taken together, this move expands our ecosystem across game development, publishing distribution, and the full suite, further enhancing our scale and diversity to support consistent performance and growth over time. Now I will pass the next part to Kenny Lin, our CFO, to run through some highlights on the balance sheet and the financial numbers.