Global Mexico and Africa (GMM.US) released its 2023 financial report: net profit soared to a record high of 6.55 million US dollars, and the digital entertainment industry's strategic value prospects are broad

Zhitong Finance learned that Global Mexico (GMM.US) announced the financial results for the fiscal year ending September 30, 2023. According to financial reports, total revenue reached 26.89 million US dollars, an increase of 56.4% year on year, a record high. Among them, the company's two major businesses both hit new highs; revenue from the digital asset licensing business soared 186.3% year over year to US$11.51 million; and revenue from the virtual technology service business reached US$15.38 million, up 22.7% year on year. Meanwhile, the company's net profit soared to US$6.55 million, a significant increase compared to last year's net loss; gross profit and gross profit margin also hit new highs.

As can be seen from the financial performance of almost two years, Global Mexico is committed to expanding its digital asset-related business. In fiscal year 2023, it achieved an important milestone in performance with the goal of strategically optimizing the revenue structure. Global Mexico has achieved impressive results by expanding revenue from the high-margin business segment — digital asset licensing business revenue accounts for 42.8% of total revenue (compared to 23.4% in 2022). Meanwhile, Global Mexico's digital asset innovations have been widely recognized and adopted in the metaverse industry, and the company has successfully turned these achievements into revenue-generating assets and reduced R&D costs.

As a result, thanks to favorable changes in revenue and costs, Global Mexico's profit reached a historic record. The company's net profit soared to $6.55 million, a significant increase compared to the previous year's net loss of $290,000. Gross profit and gross margin also hit record highs: gross profit reached $14.53 million, surging 253.1% year over year, and gross margin soaring nearly 30 percentage points to 54%. Among them, the gross margin of the digital asset licensing business was 76.2% in fiscal year 2023, which also reflects the high profit level of this business line.

As can be seen from the latest financial reports, Global Mexico is firmly grasping the growth momentum brought about by the rapid growth of the digital asset licensing business and the recovery of the digital entertainment industry. In fact, the metaverse market is booming and currently has huge market potential. According to PricewaterhouseCoopers, the size of the global metaverse will grow at a CAGR of 36% to reach 303.74 billion yuan (approximately US$47.3 billion) by 2025. As one of China's leading digital asset libraries, Global Mexico has more than 30,000 high-precision 3D digital assets. Moreover, as the “leader” of the metaverse industry, Global Mexico and Africa is still growing at an accelerated pace, and has recently been actively developing the digital entertainment industry. The metaverse and 3D digital assets run through their entire business layout and development context, and are committed to continuing to expand their leading edge in the field of digital asset applications.

For example, on January 4, based on its huge resources and high-quality technical reserves, Global Mofy Technology LLC was registered in California, USA, to enhance its influence in overseas markets and expand the scope of virtual technology content production business. The move is aimed at complementing the company's overseas business strategy and marks the vision of Global Mexico and Africa actively participating in exploring the overseas digital entertainment market and entering the Hollywood and international markets.

Second, in addition to the digital entertainment sector, Global Mexico is also implementing a diversified business strategy — laying out the field of vocational education. On January 11, Global Mexico and Fei announced a strategic investment in Metaverse education to officially lay out a vocational education circuit. Meanwhile, in December 2023, Global Mexico was selected as a member unit of the Industry-Education Integration Working Group of the Ministry of Industry and Information Technology's Industrial Metaverse Collaborative Development Organization; the working group was established in April 2023 to further promote the high-quality development of industrial metaverse+ education, promote the integration of industry and education, and help cultivate talents in the industrial metaverse. As a member unit of the Industry-Education Integration Working Group of the Industrial Metaverse Collaborative Development Organization of the Ministry of Industry and Information Technology, Global Mexico and Africa will work with Metaverse Education to explore new models to promote the development of vocational education.

Looking forward to the future, as the metaverse market continues to unleash its huge potential, Global Mexico and Africa will actively lay out the virtual production industry by expanding its digital asset advantages and pioneering new tracks; the company will continue to grow its business with its leading position in the metaverse industry, and will create great value.