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NEW YORK - GD Culture Group Limited (NASDAQ:GDC), a micro-cap company with a market value of $18.43 million, and its subsidiary, AI Catalysis Corp., announced today their decision to terminate the online livestreaming gaming business. The move is part of a strategic realignment to concentrate on sectors that promise long-term growth and better align with the company's vision, as the company faces significant challenges with a 200% revenue decline in the last twelve months.
The livestreaming gaming business, which debuted 18 months prior, will maintain its existing games and content without future updates. This decision reflects the company's aim to optimize its resource allocation.
Chairman and CEO Xiaojian Wang expressed gratitude to the community that supported the gaming platform, acknowledging their role in the company's journey. "This decision is part of a broader strategy to prioritize our resources and efforts on products and initiatives that best align with our long-term vision and customer needs," Wang said. According to InvestingPro analysis, the company's financial health score stands at a weak 1.26, with data showing the company is quickly burning through cash.
GD Culture Group, a Nevada-based company, operates mainly through AI Catalysis Corp. and Shanghai Xianzhui Technology Co, Ltd. The company has indicated a shift in focus towards live-streaming e-commerce and AI-driven digital human technology.
The company has not disclosed the financial impact of discontinuing the gaming livestream business, nor has it provided specific details on the future of its e-commerce and digital human technology initiatives.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. The company has stated that it does not intend to update these statements as they are based on current expectations and projections. Investors and stakeholders are advised to visit the company's website for further updates.
GD Culture Group's decision to exit the gaming livestream market underscores the dynamic nature of the tech and entertainment industries, where companies often pivot to adapt to changing market demands and strategic objectives.
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