-- Revenue achieved $26.7 million, up 34.2% from $19.9 million. 
 
   -- R&D investments totaled $5.8 million, up from $0.8 million in the same 
      period last year. 
 
   -- Net Income was $5.0 million, or $1.19 per share. 

BEIJING, Aug. 18, 2025 (GLOBE NEWSWIRE) -- Global Mofy AI Limited (the "Company" or "Global Mofy") (Nasdaq: GMM), a generative AI-driven technology solutions provider engaged in virtual technology services and digital assets development for use in the broader digital content industry, today reported its financial results for the six months ended March 31, 2025, showing strong revenue growth of 34.2%, driven by increases in both virtual technology services and digital asset development business lines.

"The revenue growth in the first half of 2025 clearly demonstrates the ongoing efforts and contributions of the Global Mofy team in driving the company's innovation and technological advancements. It also reflects the growing demand in the market for Global Mofy's AI-driven virtual content solutions and 3D digital assets, as well as our leadership position in the industry. Despite some operational cost increases, our continued focus on innovation and AI integration sets us up for further growth," said Haogang Yang, founder and CEO of Global Mofy. "The future of content creation is being reshaped by generative AI technologies, and we remain committed to leading this transformation."

"In terms of research and development, while our previous R&D investments were relatively modest, we recognize the critical role of innovation in our continued growth. Starting in 2025, with the establishment of Gauss AI Lab and the ongoing expansion of our 3D digital asset library, we are significantly increasing our R&D focus. As a fast-growing company, it is crucial that we invest in cutting-edge technologies, and this expanded R&D initiative will help fuel the future growth of our business, ensuring that we remain at the forefront of the AI-driven digital content industry."

Financial Results for the Six Months Ended March 31, 2025

   -- Revenue for the six months ended March 31, 2025 increased by 34.2% to 
      $26.7 million, from $19.9 million in the same period last year. This 
      revenue increase reflects the recovery in the digital content and 
      entertainment industry, as well as strong growth in virtual technology 
      services and digital asset development, both benefiting from AI-driven 
      innovations. 
 
   -- Cost of revenues increased by 84.3% to $14.9 million, compared to $8.1 
      million in the same period last year. The increase is primarily due to 
      higher amortization costs of digital assets, which were allocated to this 
      period. 
 
   -- Gross profit was $11.8 million, a slight decrease of 0.1% compared to 
      $11.8 million in the previous year. The strong revenue growth was 
      tempered by increased costs associated with the expanded digital asset 
      development and AI technology development efforts. Nonetheless, gross 
      margin for Virtual technology services increased to 36.9% from 28.5% last 
      year, due to the completion of higher-margin projects in the first half 
      of 2025. 
 
   -- Operating expenses increased to $10.1 million, from $5.1 million in the 
      same period last year. This increase was largely driven by a rise in 
      research and development (R&D) expenses, totaling $5.8 million. The 
      Company's strategic focus on AI-driven innovation, particularly through 
      the Gauss AI Lab and the development of new digital assets, drove these 
      investments. While this increased operational expenditure temporarily 
      impacted profits, it is expected to fuel long-term growth. 
 
   -- Operating income was $1.7 million, compared to $6.7 million in the same 
      period last year. The decrease is primarily due to the rise in operating 
      expenses, including substantial increases in R&D investments and 
      amortization costs for digital assets. However, the company continues to 
      maintain a strong operational model and anticipates that these 
      investments will pay off in the longer term. 
 
   -- Net income was $5.0 million, or $1.19 per share, compared to $10.3 
      million, or $5.56 per share in the same period last year. 
 
   -- R&D investments were $5.8 million, up from $0.8 million in the same 
      period last year. This increase is driven by the expansion of the Gauss 
      AI Lab and higher technical service fees. The Company is positioning 
      itself as a leader in generative AI content creation, and these 
      investments are essential to ensure its continued technological edge. 
 
   -- Total current assets as of March 31, 2025, stood at $14.0 million, 
      including $6.0 million in cash and short-term investments. This provides 
      a solid liquidity position to support Global Mofy's ongoing growth 
      initiatives. 

Operational and Strategic Highlights

Global Mofy achieved progress since its previous earnings announcement in these areas:

   -- Global Mofy Recognized as a Beijing "Specialized and New" SME by the 
      Municipal Bureau of Economy and Information Technology. This recognition 
      underscores Global Mofy's unwavering commitment to innovation, 
      specialized expertise, and its dedication to advancing emerging 
      technologies. 
 
   -- Launch of "Mofy Clips" Brand to Expand Presence in the Short Drama 
      Market: The Company has announced the official launch of its short drama 
      brand, "Mofy Clip." As part of this initiative, the Company participated 
      as a co-producer with China Literature, a pioneer in China's online 
      literature market, in a newly released short drama under China 
      Literature's short drama brand, Yuewen Short Drama, further solidifying 
      its commitment to the fast-growing short drama market. Yuewen Short Drama 
      is one of the leading short drama producers in China. 
 
   -- Launch of Gauss AI Lab: a fully integrated AI ecosystem that unifies the 
      Company's existing technologies, products, and research and development 
      ("R&D") efforts into a comprehensive AI-powered content solution. Gauss 
      AI Lab will be developed under Gauss Intelligence (Beijing) Technology 
      Co., Ltd., a wholly owned subsidiary of the Company focusing on driving 
      cutting-edge AI research and application development, which previously 
      partnered with NVIDIA Omniverse to launch the Gausspeed generative AI 
      platform. 
 
   -- Global Mofy Strategically Invests in Ethiopian Digital Freight Platform 
      Wetruck AI: This strategic investment marks the Company's first direct 
      market entry into Africa and supports its broader global AI strategy. 
      Wetruck AI is a digital freight platform headquartered in Ethiopia and 
      represents an opportunity to apply AI technologies to advance logistics 
      innovation in Africa, a high-growth, under-digitized sector. 

About Global Mofy AI Limited

Global Mofy AI Limited (Nasdaq: GMM) is a generative AI-driven technology solutions provider engaged in virtual content production, and the development of digital assets for the digital content industry. Utilizing its proprietary "Mofy Lab" technology platform, which consists of interactive 3D and artificial intelligence ("AI") technology, the Company creates high-definition virtual versions of a wide range of physical world objects in 3D ranging from characters, objects to scenes and more. The digital assets can be used in different applications, including movies, TV series, AR/VR, animation, advertising, gaming, and more. Global Mofy is one of the leading digital asset banks in China, which consists of more than 100,000 high-precision 3D digital assets. For more information, please visit www.globalmofy.cn/ or ir.globalmofy.cn.

Forward-Looking Statement

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Global Mofy AI Ltd.

Investor Relations Department

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August 18, 2025 09:00 ET (13:00 GMT)