Global Mofy AI Ltd (GMM) Q1 2026 Earnings Call Transcript

Good day and thank you for standing by. Welcome to the Global Morphée AI Limited Fiscal Year 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 1 and 1 on your telephone. You will then hear an automated message, advising your hand is raised.

To withdraw your question, please press star 1 and 1 again. please be advised that today's conference is being recorded i would now like to the conference over to your first speaker today selene mang please go ahead thank you operator welcome everyone to global mophies fiscal 2025 financial results conference call covering the period between september 30th 2024 and september 30th 2025. thank you all for joining us on such short notice. My name is Celine and I am the company's securities affairs representative. Today I'll be presenting our prepared comments and then followed by a Q&A session with our CTO, Mrs. Wenjun Jiang, and CFO, Mr. Chen Chen. Fiscal year 2025 marked a pivotal year of strategic transformation for global Mophie. Beyond strong financial performance, This year represents our transition from AI-driven tools to AI-native production workflows, laying the foundation for scalable, defensible, and margin-accredited growth. During today's call, we will review our financial results, strategic milestones, core technologies, and growth outlook. Before we begin, I would like to remind everyone that today's discussion contains forward-looking statements, which involve risks and uncertainties that may cause actual results to differ materially from those indicated. These forward-looking statements are subject to risks described in our filings with the U.S. Securities and Exchange Commission. We encourage you to review our Form 20-F and other SEC filings for additional information. Today's conference call is being recorded and a replay will be made available on the company's website fiscal year 2025 delivered record financial performance while also marking a strategic inflection point for global mophie highlights include total revenue of 55.9 million dollars representing 35.3 percent year-over-year growth a gross profit of $22.5 million in U.S. We entered into a digital cultural tourism cooperation framework with Lengang's Hightech District. We completed a total of $10.3 million in strategic private placement financing, Established Goss AI Lab and N2M AI Power Content Framework. Expanded our global AI data and training capabilities through EaglePoint AI Inc. These milestones reflect not incremental optimization, but a fundamental transformation in how digital content is produced. For those who are new to Global Mophie, let me briefly introduce the company. Global Mophie is an AI-driven technology solutions provider focused on virtual content production and 3D digital asset development for partners across the digital content and value chain. Advanced AI and 3D reconstruction technologies, we create high-precision digital representations of characters, scenes, and props, enabling deployment across film, television, gaming, XR, and emerging AI-native workflows. We operate across Beijing and Zhejiang, China, and since our NASDAQ listing in October 10, 2023, under the ticker GMM.us, we have continued to scale both our technology platform and asset base. According to a Frost and Sullivan report, Group of Mofi is now recognized as one of China's leading digital asset banks, with more than 150,000 high-precision 3D digital assets. This slide highlights Global Mofi's evolution from a traditional digital content provider into an AI-native production platform. Key milestones include early leadership in virtual production and software IP accumulation, strategic partnerships with Alibaba Damo Academy and leading industry players, Nasdaq listing in 2023 and establishment of our Zhejiang headquarters, launch of GOS beta flagship AIGC platform built on NVIDIA Omniverse. Expansion into global AI training and data engineering through EaglePoint AI. Our roadmap reflects a deliberate multi-year transition toward AI-native infrastructure rather than short-term experimentation. In all of this slide, GlobalMophie has received comprehensive information for its leadership in technology and innovation. Highlights include national high-tech enterprise designation, multiple most valuable investment Chinese concept stop and innovation awards, membership and leadership roles in MIIT, metaverse, and digital economy organizations, recognition as a specialized and new SME in Beijing. This honors reinforce our credibility with enterprise customers, government partners, and institutional investors. Innovation remains at the core of Global Murphy's long-term strategy. In I-Flight 2025, RMD spending reached $7.5 million, representing 14.1% of revenue. Our RMD to revenue ratio significantly exceeds industry average of 5-8%. We hold 45 independent intellectual properties, with over 10 new IPs added annually. Beginning in fiscal year 2025, we intensified development of generative AI production tools, AI-native workflows, AI-agent-driven data governance frameworks. We believe that our scale advantage in 3D digital assets, combined with deep production expertise, positions us uniquely for the next generation of AI-driven content creation. Now, let's turn to our mission, vision, and values, which define who we are as a company and guide us in everything we do. Starting with our mission, we aim to empower creativity through the innovative use of AI and digital technology. This mission drives our efforts to push boundaries and redefine what's possible in the digital content industry. Our vision is clear, to drive technological advancements while cultivating a culturally rich corporate environment. Our values, first, foster innovation, encouraging bold ideas and groundbreaking solutions. Second, we prioritize and exceed customer expectations, delivering value that goes beyond the ordinary. Ultimately, our ambition is to build the world's leading digital asset bank, serving as a foundational infrastructure for AI-native content industries. The Gotspeed platform is a flagship AIGC platform designed for industrial-grade cinematic production. Built on NVIDIA Omniverse, Gotspeed enables professional-grade visual generation. Gotspeed creates stunning, realistic visuals with advanced AI technology, ensuring top-quality results for virtual projects. Storyboard and Shot Design It provides intuitive tools for detailed storyboard and shot design, allowing creators to visualize and plan each theme precisely, reducing the need for costly revisions. A precise pre-production planning. Godspeed offers advanced privacy capabilities for accurate pre-production planning, helping clients define service needs and minimizing trial costs. Editable assets. The video scenes and 3D digital assets generated by Godspeed can be re-edited to meet more customized demands, providing flexibility and adaptability for various project needs. We are confident in Godspeed's ability to transform the filmmaking industry by providing a powerful AI-driven tool that enhances creativity and efficiency. Our 150,000-plus high-precision 4k 3d digital assets from form the backbone of ai capabilities these assets span characters scenes and props natural environments science fiction historical errors and architecture this asset bank enables faster production cycles higher visual fidelity scalable ai training and interference.

It is a foundational competitive mode for Global Mophie.

SCLAB integrates over 40 preparatory software systems into a one-stop content generation platform. Key capabilities include high-precision 3D reconstruction technology, digital content editing middleware, low-code and no-code production tools as a reuse, invocation, and workflow optimization. Global Mophie allows us to deliver systematic, repeatable, and scalable production outcomes. This slide summarizes several defining moments of Global Mophie in the past few years. NASDAQ listing and increased global visibility. Launch of our Zhejiang headquarters. Entry into the AIGC field through strategic partnerships. Completion of our major strategic transformation. Each milestone reflects progress towards an AI-native operating model. Our management team brings deep expertise across technology, finance, and operations. Led by our CEO, Mr. Hao Gang Yang, and supported by CFO, Mr. Chen Chen, CTO, Mrs. Wen Jin Jiang, and CMO, Mr. Nan Zhang, the team continues to execute our strategy with discipline and a long-term focus. Financial data-wise, now let me walk you through our financial performance for the fiscal year ended September 30, 2025, and provide some additional context around the key drivers behind these results. As of September 30, 2025, the company's total asset increased to $78 million, compared to $59.2 million as of September 30, 2024, representing a 31.9% year-over-year increase. This growth was primarily driven by our continued investment in intangible assets, particularly those related to 3D digital assets and AI-related technologies. These investments reflect our deliberate strategy to strengthen Global Mofi's long-term technology foundation, expand our digital asset bank, and support the transition toward AI-native production workflows. Revenue for fiscal year 2025 increased to $55.9 million, representing a 35.3% increase from $41.4 million in fiscal year and 2024. This growth was driven by sustained demands for virtual content production and 3D digital assets licensing business across multiple end markets, including film, television, advertising, game and digital tourism, etc. Demand remained resilient throughout the year, reflecting both the recovery of content production activity and increasing adoption of digital and AI-enabled production solutions. In addition, during fiscal year 2025, the company proactively responded to the active expansion of the short-form drama market by adopting an innovative cooperation model to participate in short-form drama investment and production projects. While still at a very early stage, we believe the continued expansion of this business line will further divisify our revenue streams and provide incremental revenue support over time complementing our core virtual technology services gross profit and gross margin gross profit for fiscal year 2025 was at 22.5 million compared to 20.8 million dollars in fiscal year 2024 gross margin was 40.2 for the year The year-over-year margin profile reflects a period of intentional investment as we continue to scale our AI-initiative production infrastructure, expand the R&D initiatives, and deploy AI agent-based workflows designed to support long-term automation and efficiency. While these investments weigh modestly on near-term margins, we believe they are critical to unlocking structural margin expansion in future periods, particularly as AI workflow mature and production efficiency continues to improve. Research and development expenses for the fiscal year of 2025 totaled to around $7.9 million, compared to $7.4 million in fiscal year 2024, representing a 6.7% year-over-year increase. These investments were primarily we focused on expanding and enhancing our 3D digital asset library to support growing AI-driven demand, advancing the development of AI-based generative tools, and initiating AI-native production workflow research through the launch of Goss AI Lab. We believe that these R&D efforts are essential to support long-term efficiency, scalability, and intelligence production capabilities, and position Global Mophie for sustained growth as AI native adoption accelerates across the digital content industry. Global Mophie is transitioning from using AI tool to embedding AI natively across production, data, and workflows. Our growth strategy focuses on international market expansion, especially in June 2025, Google Mofi made a strategic investment in VTruck AI, a digital fried platform headquartered in Ethiopia, marking the company's first direct market entry into Africa, and represents an important step in expanding the application for AI capabilities beyond digital content into real world infrastructure and logistics scenarios in emerging markets. Building on this foundation, In January 2026, the company recently established EaglePoint AI Inc., a Delaware-based AI infrastructure company, majority owned through a wholly owned U.S. subsidiary, GMM Discovery IOC. EaglePoint AI focused on AI data engineering, data governance, and AI model training support, serving as a critical component of a global AI infrastructure plan. out additional growth strategies also include strategic alliance and selective acquisitions brand positioning as an ai native content infrastructure provider continued r d investment in ai gc and asset expansion enhance customer experience through intelligent workflows these strategic strategies together underpin our long-term margin expansion and scalability Thank you for your attention. And before we open the floor for questions, please note that our management team will be answering in Chinese for any discrepancies between the translated responses and the original answers. The original answers should be considered accurate. Please feel free to ask any questions you may have about our financial performance, strategic initiatives, our market outlook. Operator, please open the line now for questions.

Thank you. At this time, we will conduct the question and answer session. As a reminder to ask a question, you need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Once again, please press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by while we compile the Q&A roster. We are now going to proceed with our first question. Once again, I think the question is withdrawn. Please press star 1, 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Please stand by while we compile the Q&A roster. We are going to proceed with our first question. Questions come from the line of Dona Yang from Red Dragon.

Please ask your question. okay um here's my first question um could you explain how the company maintains a stable and strong revenue growth trajectory okay so i will now translate the question for our cfo mr chen Thank you for your answer.

增长是受三方面运速影响 第一呢就是我们的这个 三维市场在影视 广告文语等多个应用领域的需求不断的增加 然后其次呢就是我们 这个电影间 和这个短距市场整体在发展 也带动了对这种高质量虚拟制作内容的需求 最后一方面呢也是为了 适应这个短距市场的快速增长 I will now translate the answers from Mr. Chen Chen.

In fiscal year 2025, the company achieved a revenue of U.S. dollars, $55.94 million, representing a 35.3% year-over-year increase and marking a record high in our history. Mr. Chen Chen emphasized that this growth was primarily driven by three factors. First, continued demand growth for 3D digital assets and models across multiple application areas, including film, television, advertising, and virtual cultural tourism. Second, the overall expansion of the film, TV, and short drama markets, which increased demand for high-quality virtual content production services. Third, in response to the rapid-growing short-drama market, the company adopted innovative cooperation models to enter short-drama investment and production, further diversifying our revenue sources. Mr. Chen Chen emphasized that we believe the continued development of the short-drama business will provide additional revenue support and diversification going forward. Okay, thank you very much for the answer. And following that, I have the second question, can you provide an outlook on the future performance?

Thank you for your question, and I will now translate the question for Mr. Chen Chen's answer. 哦 刚刚这位投资人问您是否能对公司未来的业绩做一个简单的展望 好的 那在原有的这个两条核心业务线保持稳定增长的这个基础上 公司2025财年呢也进一步拓展了短期制作的业务 并且同步推进这个在AI agent的领域的战略规划 这也为未来发展奠定了坚实的基础 展望2026财年,我预计公司继续保持这种高增长的快节奏,并且通过持续的这种技术创新,在多个关键应用场景中扩大市场份额,从而推动营收的长期稳定增长。

Thank you, Mr. Chen Chen, and I will now translate Mr. Chen Chen's answer for your questions. Mr. Chen Chen answered that building on the stable growth of existing core business lines, the company expanded into short drama production in fiscal year 2025 as part of our virtual technology services and continued to advance our strategic planning in the AI agent space, which together strengthened our growth foundation. Looking ahead to fiscal year 2026, we expect to maintain strong growth momentum and further expand our market presence across key application areas through ongoing technological innovation, supporting sustainable and steady revenue growth over the long term.

Okay, thank you.

Okay, thank you. Thank you.

As a reminder to ask a question, please press star 1 on your telephone and wait for your new interview now. To withdraw your question, please press star 1 on your phone again. Please stand by while we compile the Q&A roster. We are now going to proceed with our next question. And the questions come from Dona Yang from Red Dragon. I am showing no further questions. I will turn back to my closing remarks.

Hi operator. Victor, can you repeat one more time the directions to join the call? Sure, thank you. As a reminder to ask a question, please press star 1-1 on your telephone and wait for your name.

To withdraw your question, please press star 1-1 again. Once again, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. We are now going to proceed with our next question. The next questions come from the line of Jason Liu from Clash AI. Please ask your question.

Can you hear me?

Yes, we can hear you.

I've got two questions. The first one is over the number three to five years, where the company prioritizes the technical tips of ecosystem expansion and how will the results be allocated?

And then I will now translate the question for our CTO Mrs. Wenjun Zhang for answers.

Thank you very much. Our resources can be used as technology as a first, service as a key. In the technology, we will continue to expand the new technology in AIGC and 3D in the 3D region and continue to invest. In the development of the services, we will also be依靠 our own technology, to expand more of the service environment, and to provide more of a solution for customers. that the company will be the key to the core of the technology, and will be the key to improving the development of the environment. The goal is to achieve the improvement of the development of the technology and development of technology. Thank you.

Thank you, Mrs. Wen Jin-jian, and I will now translate the answers from Mrs. Wen Jin-jian. Our CTO, Mrs. Wen Jin-jian, have just answered that we believe the technological depth and ecosystem expansion are complementary other than conflicting. Deepening our technology enables us to respond effectively to evolution market dynamics. While ecosystem expansion allows us to leverage existing technological strengths to attract more digital content, cultural tourism, and entertainment projects, Our resource allocation philosophy can be summarized as technology-first and service-driven. Technology priority includes continued investment in AIGC and 3D reconstruction technologies, both of which form our core competitive advantages. Service expansion, including leveraging these technologies to broaden application scenarios and deliver more comprehensive solutions to clients. The company, GlobalMophie, will remain technology-driven, while steadily expanding its ecosystem to achieve balanced growth and innovation. Thank you. We hope we have answered your question well, and if you have further questions, you may ask now.

Yeah, I got one more question. The second one is, is short drama investment a long-term strategy or short-term marginalization approach?

And I will now translate the question for our CTO Mrs. Wen Jun Jiang for access. 谢谢您的提问 那这个问题还是由我来回答您 其实是这样的 短距投资并非是我们短期流量的一个变现手段 其实是公司长期战略布局的一个重要组成部分 那我们通过一些技术赋能呢 正在扩展和用户体验优化呢 短距不仅是有助于我们一个提升品牌影响力的一件事情

Okay, thank you, Mrs. Wenjun Zhang, and I will now translate your answers in English. First of all, short drama investment is not merely a short-term monetization tool, but rather than an integral part of the company's long-term strategic planning. Driven by technology, ecosystem expansion as mentioned before, and user experience optimization, short dramas enhance brand visibility while serving as a strategic entry point for a broader market and technology application. We build the segment as a platform for aligning capabilities with sustainable commercial values. Thank you. We hope that we have answered your questions, and if you have any more questions, you may raise them now. If not, you may hand up.

No, I'm paying. Thank you so much. Thank you so much.

I am showing no further questions at this time, so I'll send the call back to Management Closing Remarque.

Thank you. Thank you all for your insightful questions and for joining us today. On behalf of the entire Global Mofi team, we thank you for your continued support and interest in our journey. We look forward to reconnecting with you again soon. If you have any further questions, please do not hesitate to reach out to our investor relations team through email. Have a great day.

The conference does conclude the program. You may now disconnect.