Li Huifen: Taking Chinese Games to the Global Stage – GCL Global's High-Growth Logic Emerges

Recently, Singaporean gaming company GCL Global Holdings Ltd $GCL Global(GCL.US) Global(GCL.US) Global(GCL.US) released a positive profit alert for the fiscal year 2026, forecasting revenue to exceed $240 million, an increase of approximately $100 million compared to the fiscal year 2025; gross profit is expected to surpass $30 million, up by about $10 million.

Notably, GCL had already achieved a 45.7% year-on-year revenue growth in the fiscal year 2025, successfully turning net losses into profits. This naturally raises the question: what has driven such robust growth for the company?

While general investors may not be familiar with GCL, they have likely heard of the games it has participated in publishing, such as "Black Myth: Wukong," "Grand Theft Auto V," "Atomic Heart," and "S.T.A.L.K.E.R. 2." Despite their seemingly diverse styles and cultural backgrounds, GCL has played a role behind the scenes in all of them.

From Behind the Scenes to the Spotlight: Who is GCL?

GCL is a Singapore-based game publishing and distribution company that went public on NASDAQ in February 2025. It has built a comprehensive service chain covering publishing, distribution, digital retail, and integrated marketing through its four core subsidiaries:

1. 4Divinity: Focused on global and regional game publishing, it participated in the digital release of "Black Myth: Wukong" on PlayStation platforms in Taiwan and the physical distribution of the game globally (excluding mainland China).

2. Epicsoft Asia: As an authorized distributor for major publishers like SEGA, CD Projekt Red, and Bandai Namco in the Asia-Pacific region, it handles the distribution of physical and digital activation codes.

3. 2Game: A global digital activation code platform that currently hosts over 8,000 game titles and has nearly 1 million registered users.

4. Titan Digital Media: Specializes in customized strategic marketing campaigns for brands, equipped with production studios, advertising agencies, and a multi-channel influencer network.

Additionally, GCL has completed the acquisition of Singaporean consumer electronics and gaming hardware company Ban Leong this year, signaling the formation of an integrated "software + hardware + IP" ecosystem that significantly strengthens its strategic position in the global gaming industry chain.

Looking back at its development, GCL has accurately captured industry trends, starting from early physical distribution of console games, pivoting to digital publishing in 2020 to seize the explosive growth of Steam in the Asian market, and then building a "investment + publishing" dual-drive model through strategic investments since 2023. This has strengthened its binding to high-quality content and gradually established its key role in the Asian game export ecosystem.

Now, GCL has further clarified its future direction—committing to bringing Chinese games to the global stage. This strategy aligns with the rise of China's gaming industry and the trend of cultural export. Taking last year's highly anticipated domestic AAA title "Black Myth: Wukong" as an example, GCL participated in the physical distribution of its PS5 version. The game's deep-rooted cultural background not only resonates with global players' growing interest in exploring Eastern culture but also echoes China's ongoing emphasis on cultural confidence and export strategy, indicating vast market potential.

Light-Asset Model + Two-Way Distribution Capability: Building Sustainable Growth Barriers

A deeper dive into GCL's business model reveals that its high growth does not rely on a single hit but stems from its replicable, scalable light-asset publishing strategy. Compared to the higher R&D risks and product uncertainties faced by game developers, GCL focuses on the publishing and distribution segments, offering advantages such as lower risk, faster turnover, and stable cash flow.

More importantly, GCL has established a unique "two-way circulation" global distribution network: efficiently introducing Western game hits to the Asian market while also promoting original Asian IPs worldwide. Leveraging its deep cultural understanding and channel resources accumulated over years of operations in China, Japan, South Korea, and Southeast Asia, GCL bridges the gap between localized operations and global distribution, forming a significant competitive barrier. This means GCL will continue to benefit from the growth of the global gaming market and the advantages of Asian content localization, with broad prospects for future development.

GCL's publishing pipeline is also promising, including potential titles such as "The Resisters," "Monkey King's Sword," "Ink Realm," and "Showa American Story." In some projects, GCL is deeply involved as a shareholder, further binding itself to content dividends.

Additionally, rumors suggest that "Grand Theft Auto VI" is about to be released. Given GCL's long-standing role as a key distribution partner in the Asia-Pacific region, it is expected to continue handling the physical distribution of the game in Asia, though specific cooperation details remain subject to official announcements.

Meanwhile, GCL is accelerating its strategic layout in China, having signed a memorandum of strategic cooperation with Wanxin Group, jointly established a gaming culture industry fund with Helin Tongxing, and partnered with the Hainan Game & Animation Association. These moves fully integrate GCL into China's game export ecosystem, further reflecting its strategic positioning of bringing Chinese games to the world.

As the global gaming market continues to expand, original Asian content is increasingly attracting global attention. As a key hub connecting the East and West, GCL's light-asset, high-turnover, strongly-bound business model, along with its robust product pipeline and two-way distribution capabilities, is driving the company into a phase of value revaluation, making its future growth potential worth watching.

(I do not hold the above stocks.)

$GCL Global(GCL.US)